CARPENTER TECHNOLOGY CORP

Carpenter Technology Corporation

Business and structure

• Producer and distributor of premium specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels.
• Organized into two reportable segments:
  • SAO (Specialty Alloys Operations): the company’s primary premium alloy and stainless steel manufacturing operations.
  • PEP (Performance Engineered Products): differentiated operations including Dynamet titanium, Carpenter Additive, and Latrobe/Mexico distribution businesses.
• Serves high-performance, mission-critical applications across aerospace, defense, medical, transportation, energy, industrial, and consumer markets.
• Emphasis on premium alloys and processes, including materials engineered for additive manufacturing and soft magnetics.

Products and capabilities

• Core product families: premium alloys (titanium, nickel, cobalt-based), stainless steels, alloy steels, and tool steels.
• Powder metals and materials and solutions for additive manufacturing.
• Process solutions and engineered material offerings for demanding applications.

Raw materials and supply chain

• Critical inputs include nickel, cobalt, chromium, manganese, molybdenum, titanium, iron, and related scrap.
• Sourcing from international suppliers, consigned materials, and long-term supplier relationships.
• Uses surcharges, indexing mechanisms, price adjustments, and forward contracts to manage raw material price volatility.

Intellectual property and licenses

• Holds U.S. and international patents and maintains licenses under some patents.
• Some products are covered by third-party patents under license.
• The company does not depend materially on any single patent or license.

Customers

• No single customer accounted for 10% or more of total net sales for fiscal years 2026, 2025, or 2024.
• No single customer accounted for 10% or more of accounts receivable outstanding at June 30, 2026 or 2025.

Geographic footprint and facilities

• Domestic operations:
  • SAO mills and operations in Reading and Latrobe, Pennsylvania; additional facilities in South Carolina and Alabama.
  • PEP activities include titanium production in Washington, Pennsylvania, and Clearwater, Florida; powder production in Athens, Alabama.
  • Distribution and service centers in Latrobe (PA) and Mexico; additional service centers in Washington (PA) and Vienna (OH).
  • Owned properties: Reading, Latrobe, Hartsville (SC), Orwigsburg (PA), Elyria (OH); Clearwater (FL) owned with land leased.
• International presence in Belgium, Canada, China, Mexico, Singapore, Sweden, and Taiwan.
• Corporate offices in Philadelphia, Pennsylvania and Raleigh, North Carolina (leased).

Workforce and human capital

• Total workforce: approximately 4,500 employees as of June 30, 2026.
• Production workforce details:
  • Latrobe, PA: 450 production employees (collective bargaining agreement expires July 31, 2027).
  • Washington, PA: 165 production employees (collective bargaining agreement expires August 31, 2029).
• Focus areas include health and safety, talent acquisition, performance management, employee engagement and development, belonging, and governance.

Financial highlights

• International sales (outside the United States):
  • 2026: $1,300.0 million
  • 2025: $1,177.2 million
  • 2024: $1,136.7 million
• Long-lived assets located outside the United States:
  • 2026: $4.1 million
  • 2025: $5.0 million
• Company-sponsored research and development expenses:
  • 2026: $27.7 million
  • 2025: $26.1 million
  • 2024: $25.6 million
• Environmental-related costs and capital expenditures:
  • Maintenance costs for environmental control equipment: 2026 $18.7 million; 2025 $18.0 million; 2024 $17.4 million
  • Capital expenditures for environmental control equipment: 2026 $1.6 million; 2025 $1.1 million; 2024 $0.7 million

Governance and ethics

• Maintains a Code of Ethics applicable to the CEO, CFO, and other senior executives; no waivers were granted in fiscal year 2026.
• Information about ethics and corporate governance is available on the company website and through the SEC.

Risks and external factors

• Cyclicality in key end-use markets such as aerospace, defense, and energy.
• Supply chain and raw material price volatility, including potential interruptions and tariffs.
• Capital intensity and execution risk on large expansion projects.
• Environmental, health, safety, and regulatory compliance costs and potential liabilities.
• Currency fluctuations, international trade policies, and geopolitical risks.
• Cybersecurity risks and reliance on information technology systems.