...October 31, 2023 Carpenter Technology Corp.'s earnings are on an upward trajectory with support from robust aerospace demand recovery. Over the past couple of quarters, run-rate EBITDA generation has returned to pre-pandemic levels and we believe the company could generate EBITDA above historical pre-pandemic earnings this fiscal year. This follows a prolonged period of depressed earnings and cash generation as the company's aerospace business declined sharply following the pandemic. We expect Carpenter will generate more than $400 million of EBITDA in fiscal- year 2024, which would result in a return to positive free operating cash flow (FOCF) of about $150 million to $200 million over the subsequent 12 months. While we continue to see potential challenges for Carpenter as it ramps up, profitability has been improving steadily. The company continues to navigate a skilled labor shortage amid a challenging operating environment with inflationary cost pressures and customers requesting more...
