Research Update: Carpenter Technology Corp. Outlook Revised To Positive On Strong Earnings Recovery; 'BB' Issuer Credit Rating Affirmed

S&P Global Ratings expects Carpenter Technology Corp.'s EBITDA to grow by at least 50%-60% in fiscal 2024, marking the second consecutive year of robust earnings as the company benefitted from demand recovery in its end markets and price increases. We expect leverage could improve below 2x in fiscal 2024 and over the next 12–24 months as the company sustains the trajectory of robust earnings. As a result, we revised our outlook to positive from stable and affirmed our 'BB' issuer credit rating on Carpenter. We also affirmed our 'BB' issue-level rating on the company's unsecured notes. Our recovery rating remains '3'. The positive outlook reflects the potential for a higher rating within the next 12-24 months if the company demonstrates

...- S&P Global Ratings expects Carpenter Technology Corp.'s EBITDA to grow by at least 50%-60% in fiscal 2024, marking the second consecutive year of robust earnings as the company benefitted from demand recovery in its end markets and price increases. - We expect leverage could improve below 2x in fiscal 2024 and over the next 12¡24 months as the company sustains the trajectory of robust earnings. - As a result, we revised our outlook to positive from stable and affirmed our '##' issuer credit rating on Carpenter. - We also affirmed our '##' issue-level rating on the company's unsecured notes. Our recovery rating remains '3'. - The positive outlook reflects the potential for a higher rating within the next 12-24 months if the company demonstrates a track record of several quarters of leverage at 2x or better....

Research Update