Financial Analysis

"Debt On November 20, 2025, the Company completed its offering and sale of $700.0 million in aggregate principal amount of 5.625% Senior Notes due 2034 (the ""2034 Notes""). The 2034 Notes accrue interest at the rate of 5.625% per annum, with interest payable in cash semi-annually in arrears on March 1 and September 1, commencing March 1, 2026. The 2034 Notes will mature on March 1, 2034. The 2034 Notes are senior indebtedness of the Company, ranking equally in right of payment with all its existing and future senior indebtedness and senior to any future subordinated indebtedness. The Company used the net proceeds from the issuance of the 2034 Notes to repay, in November 2025, $400.0 million and $300.0 million in aggregate principal amount of its senior unsecured Notes due July 2028 and March 2030, respectively, including any interest and premium due thereon, thereby redeeming such notes in full. On November 20, 2025, the Company entered into a Third Amended and Restated Credit Agreement with Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer and the other lenders, agents and arrangers party thereto (the ""Credit Facility""). The Credit Facility amended and restated the Company's then existing Second Amended and Restated Credit Agreement dated as of April 14, 2023, which had been set to expire on April 12, 2028. The Third Amendment extends the maturity to November 20, 2030. The Credit Facility is an unsecured revolving credit facilit …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Comparative information of the Company's overall revenue by end-use markets for fiscal year ended June 30, 2026 was as follows: End-Use Market Year Ended June 30, 2026 ($ in millions) SAO PEP Intersegment Total Aerospace and Defense $ 1,924.7 $ 123.1 $ (12.6) $ 2,035.2 Medical 211.7 122.1 (55.4) 278.4 Energy 222.0 8.6 230.6 Transportation 93.3 7.2 (0.1) 100.4 Industrial and Consumer 375.1 44.2 (17.5) 401.8 Distribution 77.8 77.8 Total net sales $ 2,826.8 $ 383.0 $ (85.6) $ 3,124.2 Comparative information of the Company's overall revenue by end-use markets for fiscal year ended June 30, 2025 was as follows: End-Use Market Year Ended June 30, 2025 ($ in millions) SAO PEP Intersegment Total Aerospace and Defense $ 1,679.6 $ 104.0 $ (15.0) $ 1,768.6 Medical 243.7 166.8 (59.3) 351.2 Energy 193.2 7.1 200.3 Transportation 105.8 7.9 (0.4) 113.3 Industrial and Consumer 341.3 35.3 (17.1) 359.5 Distribution 84.3 (0.1) 84.2 Total net sales $ 2,563.6 $ 405.4 $ (91.9) $ 2,877.1 Comparative information of the Company's overall revenue by end-use markets for fiscal year ended June 30, 2024 was as follows: End-Use Market Year Ended June 30, 2024 ($ in millions) SAO PEP Intersegment Total Aerospace and Defense $ 1,449.9 $ 111.1 $ (22.2) $ 1,538.8 Medical 282.4 144.9 (51.7) 375.6 Energy 177.2 8.6 185.8 Transportation 141.3 8.2 (0.4) 149.1 Industrial and Consumer 393.0 40.3 (18.0) 415.3 Distribution 97.9 (2.8) 95.1 Total net sales $ 2,443.8 $ 411.0 $ (95.1) $ 2,759.7 Comparative information of t …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Share-Based Compensation The Company has two share-based compensation plans: the Amended and Restated Stock-Based Incentive Compensation Plan for Officers and Key Employees (the ""Omnibus Plan"") and the Stock-Based Compensation Plan for Non-Employee Directors (the ""Director's Plan""). The Company recognizes compensation cost based on the fair value of the awards on the date of grant. The compensation cost is generally recognized over the requisite service or performance period of the award. Compensation cost is adjusted for awards that do not vest because service or performance conditions are not satisfied. Upon the employee's retirement, as defined in the Omnibus Plan, or the Director's separation from service, as defined in the Director's Plan, outstanding awards are subject to certain accelerated vesting terms. Awards granted under the share-based compensation plans are paid from shares held in treasury and newly issued shares. The total compensation cost that has been charged against income related to these share-based compensation plans was $26.4 million, $22.8 million and $19.8 million for the fiscal years ended June 30, 2026, 2025 and 2024, respectively. Omnibus Plan The Omnibus Plan provides that the Board of Directors or a designated committee may grant stock options, restricted stock and restricted stock units, and determine the terms and conditions of each grant. The Omnibus Plan provides the Chief Executive Officer with limited authority to grant awards. As of …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets, Net Goodwill Goodwill is not amortized but instead is tested at least annually for impairment as of June 1, or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired by performing a multi-step impairment test. For the fiscal year 2026 annual impairment test, the Company performed a Step 0 qualitative approach for the SAO reporting unit and the Dynamet reporting unit, as was done in fiscal year 2025. Historically, a Step 1 quantitative approach was performed. The Company determined that it is more likely than not that the carrying value of each of our reporting units exceeded their respective fair value and no goodwill impairment was recorded. As of June 30, 2026, the Company has two reporting units with goodwill recorded. Goodwill associated with the SAO reporting unit as of June 30, 2026, was $195.5 million and represents 86 percent of total goodwill. The remaining goodwill of $31.8 million is associated with the Dynamet reporting unit in the PEP segment. During fiscal year 2024, the fair value for the Company's reporting units was estimated using a weighting of discounted cash flows and the use of market multiples valuation techniques. When preparing the quantitative impairment test, potential impairment is identified by comparing the fair value of a reporting unit to its carrying value. If the carrying value of the reporting unit exceeds its fair value, any impairment loss is measured b …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Income (loss) before income taxes for the Company's domestic and foreign operations was as follows: Years Ended June 30, ($ in millions) 2026 2025 2024 Domestic $ 645.3 $ 454.5 $ 224.1 Foreign 10.9 12.8 (12.5) Income before income taxes $ 656.2 $ 467.3 $ 211.6 The expense (benefit) for income taxes from continuing operations consisted of the following: Years Ended June 30, ($ in millions) 2026 2025 2024 Current: Federal $ 81.6 $ 89.8 $ 30.4 State 19.2 14.5 4.2 Foreign 4.4 4.4 3.8 Total current 105.2 108.7 38.4 Deferred: Federal 20.5 (16.1) (10.1) State (1.3) (2.7) Foreign 0.7 (0.5) Total deferred 21.2 (17.4) (13.3) Total income tax expense $ 126.4 $ 91.3 $ 25.1 The reconciliation of the U.S. federal statutory income tax rate and the effective tax rate for the fiscal year ended June 30, 2026, after the adoption of ASU 2023-09 was as follows: Year Ended June 30, 2026 ($ in millions) Amount Percent Income tax provision at the federal statutory rate $ 137.8 21.0 % State and local income taxes, net of federal (a) 16.0 2.4 Effects of cross-border tax laws: Foreign derived intangible income deduction (8.2) (1.2) Tax credits: Research and development tax credit (5.6) (0.8) Non-taxable or non-deductible items: Share-based compensation (17.5) (2.7) Non-deductible compensation 5.4 0.8 Other non-taxable or non-deductible items (4.3) (0.6) Foreign tax effects 2.8 0.4 Income tax expense and effective tax rate $ 126.4 19.3 % (a) State taxes in California, Illinois and Pennsylva …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Contingencies and Commitments Environmental The Company is subject to various federal, state, local and international environmental laws and regulations relating to pollution, protection of public health and the environment, natural resource damages and occupational safety and health. Although compliance with these laws and regulations may affect the costs of the Company's operations, compliance costs to date have not been material. The Company has environmental remediation liabilities at some of its owned operating facilities and has been designated as a PRP with respect to certain third party Superfund waste-disposal sites and other third party-owned sites. The Company accrues amounts for environmental remediation costs that represent management's best estimate of the probable and reasonably estimable future costs related to environmental remediation. During fiscal year 2026 the Company decreased the liability for environmental remediation costs by $0.1 million. During fiscal year 2025, the Company increased the liability for environmental remediation costs by $0.1 million. The liabilities recorded for environmental remediation costs at Superfund sites, other third party-owned sites and Carpenter-owned current or former operating facilities remaining at June 30, 2026 and 2025 were $17.3 million and $17.4 million, respectively. Additionally, the Company has been notified that it may be a PRP with respect to other Superfund sites as to which no proceedings have been institute …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

Leases The Company records ROU assets and operating lease liabilities on the consolidated balance sheets for several types of operating leases, including land and buildings, equipment (e.g. trucks and forklifts), vehicles and computer equipment. On the lease commencement date, the Company measures and records a ROU asset and lease liability equal to the present value of the remaining lease payments, discounted using the rate implicit in the lease (or if that rate cannot be readily determined, the Company's incremental borrowing rate). Operating leases are included in other assets, accrued liabilities (current) and other liabilities (noncurrent) on the consolidated balance sheets. The Company elected the practical expedient to not separate lease components from nonlease components for all asset classes. The Company recognizes lease expense in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected to not recognize ROU assets and lease liabilities for short-term leases with an initial term of 12 months or less for all asset classes. Leases with the option to extend their term or terminate early are reflected in the lease term when it is reasonably certain that the Company will exercise such options. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the ROU asset or l …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Recently Issued Accounting Pronouncements - Pending Adoption In November 2024, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The guidance in this ASU improves the disclosures about a public business entity's expenses by requiring more detailed information about the types of expenses included within the income statement expense captions, such as: inventory purchases, employee compensation, depreciation and intangible asset amortization. This ASU does not change or remove current expense disclosure requirements, however, it does affect where this information appears in the notes to financial statements, as entities are required to include certain current disclosures in the same tabular format disclosure as the other disaggregation requirements in the amendments. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. ASU 2024-03 is a requirement for additional disclosure and is not expected to materially impact the consolidated financial statements. Additionally, in January 2025, the FASB issued ASU 2025-01 Income Statement - Reporting Comprehensive Income - Expense Di …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Pension and Other Postretirement Benefits The Company provides several noncontributory defined benefit pension plans to certain employees. The plans provide defined benefits based on years of service and final average salary. The Company also provides other postretirement benefit plans to certain of its employees. The postretirement benefit plans consist of health care and life insurance plans. Plan assets are maintained in a Voluntary Employee Benefit Association (""VEBA"") Trust. During fiscal years 2026 and 2025, the Company funded benefit payments using assets in the VEBA Trust. The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans: Pension Plans Other Postretirement Plans ($ in millions) 2026 2025 2026 2025 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 678.6 $ 682.7 $ 171.1 $ 172.8 Service cost 6.9 7.9 1.4 1.4 Interest cost 37.6 38.7 9.5 9.9 Benefits paid (65.0) (59.3) (13.9) (13.6) Actuarial (gain) loss (17.4) 9.1 (3.8) 0.6 Other (0.8) (0.5) Projected benefit obligation at end of year 639.9 678.6 164.3 171.1 Change in plan assets: Fair value of plan assets at beginning of year 528.4 471.8 143.3 136.3 Actual return 57.4 48.0 25.8 17.0 Benefits paid (65.0) (59.3) (13.9) (13.6) Contributions 27.0 67.9 4.0 3.6 Plan settlements (0.7) Fair value of plan assets at end of year 547.1 528.4 159.2 143.3 Funded status of the plans, (underfunded) $ (92.8) $ (150.2) $ (5.1) $ (27.8) Am …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring and Asset Impairment Charges Restructuring and asset impairment charges for the years ended June 30, 2026, 2025 and 2024, were $0.0 million, $3.6 million and $16.9 million, respectively. The charges in fiscal year 2025 and 2024 were a result of actions taken to streamline operations in the Carpenter Additive business in the PEP segment, as announced in the quarter ended June 30, 2024. During fiscal year 2025, the Company recorded charges of $3.6 million. This included $2.5 million of noncash pre-tax inventory impairment charges and $1.1 million of costs related to the decommissioning of property, plant, and equipment previously impaired during the quarter ended June 30, 2024. During fiscal year 2024, the Company recorded charges of $16.9 million. This included $15.8 million of noncash pre-tax impairment charges related to $8.8 million of property, plant, equipment and software and $7.0 million associated with a certain definite lived intangible asset. The Company also recognized $1.1 million of various personnel costs for severance payments, medical coverage and related items. The reserve balances and activity for restructuring charges at June 30, 2026 and 2025 were as follows: June 30, ($ in millions) 2026 2025 Reserve balance beginning of year $ $ 1.1 Restructuring charges excluding noncash impairments 1.1 Cash payments (2.2) Reserve balance end of year $ $ …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Revenue The Company recognizes revenue in accordance with Topic 606, Revenue from Contracts. The Company applies the five-step model in the FASB's guidance, which requires the Company to: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. The Company recognizes revenue when performance obligations under the terms of a customer purchase order or contract are satisfied. This occurs when control of the goods and services has transferred to the customer, which is generally determined when title, ownership and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product or the service is performed. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon usage by the customer. Service revenue is recognized as the services are performed. The customer purchase order or contract for goods transferred has a single performance obligation for which revenue is recognized at a point in time. The standard terms and conditions of a customer purchase order include general rights of return and product warranty provisions …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information, Geographic and Product Data The Company has two reportable segments, Specialty Alloys Operations and Performance Engineered Products. The SAO segment is comprised of the Company's major premium alloy and stainless steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe, Pennsylvania and surrounding areas as well as South Carolina and Alabama. The combined assets of the SAO segment are managed in an integrated manner to optimize efficiency and profitability across the total system. The PEP segment is comprised of the Company's differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Additive business and the Latrobe and Mexico distribution businesses. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics. The Company's CODM is the Chief Executive Officer. The measure of profit and loss that is used by the CODM to evaluate the performance of these operating segments is operating income. The CODM uses operating income when making decisions about allocating capital and personnel to the segments in the annual operating plan and monthly performance review processes. The CODM considers variances of actual results compared to the annual operating plan and subsequent forecasts for each segment. Operating income for each of the Company's reportable segments is comprised of the se …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Basis of Consolidation The consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. All significant intercompany accounts and transactions are eliminated. Certain reclassifications have been made to prior year amounts to conform with current year classifications. Revenue Recognition Revenue, net of related discounts, rebates, returns and allowances is recognized when performance obligations are satisfied under the terms of a customer order or contract. This occurs when control of the goods and services has transferred to the customer, which is generally determined when title, ownership and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product, based on the applicable shipping terms, or when the service is performed. Shipping terms may vary for products shipped outside the United States depending on the mode of transportation, the country where the material is shipped and any agreements made with the customers. Freight and Handling Fees and Costs Freight and handling fees and costs billed separately to customers are included as part of net sales, and freight and handling costs expensed are included as part of cost of sales on the consolidated statements of operations. Research and Development Research and development expenditures, which amounted to $27.7 million, $26.1 million and $25.6 million in fiscal years 2026, 2025 and 2024, respectively …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Debt On November 20, 2025, the Company completed its offering and sale of $700.0 million in aggregate principal amount of 5.625% Senior Notes due 2034 (the ""2034 Notes""). The 2034 Notes accrue interest at the rate of 5.625% per annum, with interest payable in cash semi-annually in arrears on March 1 and September 1, commencing March 1, 2026. The 2034 Notes will mature on March 1, 2034. The 2034 Notes are senior indebtedness of the Company, ranking equally in right of payment with all its existing and future senior indebtedness and senior to any future subordinated indebtedness. The Company used the net proceeds from the issuance of the 2034 Notes to repay, in November 2025, $400.0 million and $300.0 million in aggregate principal amount of its senior unsecured Notes due July 2028 and March 2030, respectively, including any interest and premium due thereon, thereby redeeming such notes in full. On November 20, 2025, the Company entered into a Third Amended and Restated Credit Agreement with Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer and the other lenders, agents and arrangers party thereto (the ""Credit Facility""). The Credit Facility amended and restated the Company's then existing Second Amended and Restated Credit Agreement dated as of April 14, 2023, which had been set to expire on April 12, 2028. The Third Amendment extends the maturity to November 20, 2030. The Credit Facility is an unsecured revolving credit facilit …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Comparative information of the Company's overall revenue by end-use markets for the three and nine months ended March 31, 2026 and 2025 was as follows: End-Use Market Three Months Ended March 31, 2026 Three Months Ended March 31, 2025 ($ in millions) SAO PEP Intersegment Total SAO PEP Intersegment Total Aerospace and Defense $ 503.1 $ 34.3 $ (3.2) $ 534.2 $ 428.8 $ 29.5 $ (3.6) $ 454.7 Medical 51.6 28.3 (14.1) 65.8 58.0 41.5 (14.5) 85.0 Energy 66.1 2.9 69.0 44.3 2.0 0.1 46.4 Transportation 23.0 1.6 0.1 24.7 26.2 1.9 28.1 Industrial and Consumer 91.3 9.8 (4.1) 97.0 85.6 7.7 (2.8) 90.5 Distribution 20.8 20.8 22.3 22.3 Total net sales $ 735.1 $ 97.7 $ (21.3) $ 811.5 $ 642.9 $ 104.9 $ (20.8) $ 727.0 End-Use Market Nine Months Ended March 31, 2026 Nine Months Ended March 31, 2025 ($ in millions) SAO PEP Intersegment Total SAO PEP Intersegment Total Aerospace and Defense $ 1,398.9 $ 86.5 $ (8.2) $ 1,477.2 $ 1,239.6 $ 77.9 $ (11.9) $ 1,305.6 Medical 159.2 90.7 (38.9) 211.0 176.8 125.2 (43.9) 258.1 Energy 168.6 5.9 174.5 137.5 4.8 142.3 Transportation 64.9 5.4 (0.1) 70.2 79.5 5.6 (0.1) 85.0 Industrial and Consumer 264.7 30.2 (10.4) 284.5 256.1 23.6 (12.8) 266.9 Distribution 55.8 55.8 63.7 (0.1) 63.6 Total net sales $ 2,056.3 $ 274.5 $ (57.6) $ 2,273.2 $ 1,889.5 $ 300.8 $ (68.8) $ 2,121.5 Comparative information of the Company's overall revenue by geographic locations for the three and nine months ended March 31, 2026 and 2025 was as follows: Geographic Location Three Months Ended Mar …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Income Taxes The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pre-tax income, or loss, of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, the Company's tax expense or benefit can be impacted by changes in tax rates or laws, the finalization of tax audits, and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. Income tax expense was $37.1 million, or 21.0 percent of income before income taxes for the three months ended March 31, 2026, as compared with income tax expense of $26.6 million, or 21.8 percent of income before income taxes for the three months ended March 31, 2025. Income tax expense was $84.1 million, or 18.6 percent of income before income taxes for the nine months ended March 31, 2026, as compared with income tax expense of $63.9 million, or 19.5 percent of income before income taxes for the nine months ended March 31, 2025. Income tax expense for the three months ended March 31, 2026, includes discrete tax benefits of $1.6 million attributable to employee share-based …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Contingencies and Commitments Environmental The Company is subject to various federal, state, local and international environmental laws and regulations relating to pollution, protection of public health and the environment, natural resource damages and occupational safety and health. Although compliance with these laws and regulations may affect the costs of the Company's operations, compliance costs to date have not been material. The Company has environmental remediation liabilities at some of its owned operating facilities and has been designated as a potentially responsible party (""PRP"") with respect to certain third party Superfund waste-disposal sites and other third party-owned sites. The Company accrues amounts for environmental remediation costs that represent management's best estimate of the probable and reasonably estimable future costs related to environmental remediation. During the nine months ended March 31, 2026, the Company increased the liability for environmental remediation costs by $0.1 million. The liabilities recorded for environmental remediation costs at Superfund sites, other third party-owned sites and Carpenter-owned current or former operating facilities remaining at March 31, 2026 and June 30, 2025 were $17.5 million and $17.4 million, respectively. Additionally, the Company has been notified that it may be a PRP with respect to other Superfund sites as to which no proceedings have been instituted against the Company. Neither the exact amoun …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements - Pending Adoption In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance in this ASU enhances the transparency and decision functionality of income tax disclosures to provide investors information to better assess how an entity's operations and related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flow. The amendments in this ASU require public entities to disclose the following specific categories in the rate reconciliation by both percentages and reporting currency amounts: the effect of state and local income tax, net of federal (national) income tax, foreign tax effects, effects of changes in tax laws or rates enacted in the current period, effects of cross-border tax laws, tax credits, changes in valuation allowances, nontaxable or nondeductible items and changes in unrecognized tax benefits. The amendments in ASU 2023-09 also require public entities to provide additional information for reconciling items that meet the qualitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pre-tax income (loss) by the applicable statutory income tax rate). The ASU requires reporting entities to annually disclose the year-to-date amount of income taxes paid (ne …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Pension and Other Postretirement Benefits The components of the net periodic pension expense (income) related to the Company's pension and other postretirement benefits for the three and nine months ended March 31, 2026 and 2025 were as follows: Three Months Ended March 31, 2026 2025 2026 2025 ($ in millions) Pension Plans Other Postretirement Plans Service cost $ 1.8 $ 1.9 $ 0.4 $ 0.4 Interest cost 9.3 9.7 2.3 2.5 Expected return on plan assets (8.6) (7.5) (2.2) (2.1) Amortization of net loss (gain) 1.6 1.9 (1.5) (1.4) Amortization of prior service cost 0.4 0.5 0.1 0.3 Net pension expense (income) $ 4.5 $ 6.5 $ (0.9) $ (0.3) Nine Months Ended March 31, 2026 2025 2026 2025 ($ in millions) Pension Plans Other Postretirement Plans Service cost $ 5.3 $ 6.0 $ 1.2 $ 1.0 Interest cost 28.0 29.0 7.1 7.5 Expected return on plan assets (25.9) (22.5) (6.6) (6.3) Amortization of net loss (gain) 4.8 5.7 (4.4) (4.2) Amortization of prior service cost 1.1 1.5 0.2 0.9 Net pension expense (income) $ 13.3 $ 19.7 $ (2.5) $ (1.1) During the nine months ended March 31, 2026 and 2025, the Company made $17.1 million and $58.5 million, respectively, of cash contributions to its qualified defined benefit pension plans. The Company currently expects to make $6.4 million of required cash pension contributions to its domestic qualified defined benefit pension plans during the remainder of fiscal year 2026.

PensionAndOtherPostretirementBenefitsDisclosureTextBlock

Restructuring and Asset Impairment Charges There were no restructuring and asset impairment charges for the three and nine months ended March 31, 2026, compared to $0.0 million and $3.6 million for the three and nine months ended March 31, 2025, respectively. During the nine months ended March 31, 2025, the Company recorded restructuring and asset impairment charges of $3.6 million. This included $2.5 million of noncash pre-tax inventory impairment charges and $1.1 million of costs related to the decommissioning of property, plant and equipment. These costs were a result of actions taken to streamline operations in the Carpenter Additive business, as announced during the quarter ended June 30, 2024. The reserve balances and activity for restructuring charges at March 31, 2026 and June 30, 2025 were as follows: ($ in millions) March 31, 2026 June 30, 2025 Reserve balance at beginning of fiscal year $ $ 1.1 Restructuring charges excluding noncash impairments 1.1 Cash payments (2.2) Reserve balance at end of period $ $ …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Revenue The Company recognizes revenue in accordance with Topic 606, Revenue from Contracts. The Company applies the five-step model in the FASB's guidance, which requires the Company to: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. The Company recognizes revenue when performance obligations under the terms of a customer purchase order or contract are satisfied. This occurs when control of the goods and services has transferred to the customer, which is generally determined when title, ownership and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product or the service is performed. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon usage by the customer. Service revenue is recognized as the services are performed. The customer purchase order or contract for goods transferred has a single performance obligation for which revenue is recognized at a point in time. The standard terms and conditions of a customer purchase order include general rights of return and product warranty provisions …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Business Segments The Company has two reportable segments, Specialty Alloys Operations (""SAO"") and Performance Engineered Products (""PEP""). The SAO segment is comprised of the Company's major premium alloy and stainless steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe, Pennsylvania and surrounding areas as well as South Carolina and Alabama. The combined assets of the SAO operations are managed in an integrated manner to optimize efficiency and profitability across the total system. The PEP segment is comprised of the Company's differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Additive business and the Latrobe and Mexico distribution businesses. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics. The Company's chief operating decision maker (""CODM"") is the Chief Executive Officer. The measure of profit and loss that is used by the CODM to evaluate the performance of these operating segments is operating income. The CODM uses operating income when making decisions about allocating capital and personnel to the segments in the annual operating plan and monthly performance review processes. The CODM considers variances of actual results compared to the annual operating plan and subsequent forecasts for each segment. Operating income for each of the Company's reportable s …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing