Carpenter Technology Corporation (CRS)

Pretax margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Earnings before tax but after interest (EBT)	US$ in thousands	467,300	211,600	72,500	-63,100	-297,900
Revenue	US$ in thousands	2,877,100	2,759,700	2,550,300	1,836,300	1,475,600
Pretax margin		16.24%	7.67%	2.84%	-3.44%	-20.19%

June 30, 2025 calculation

Pretax margin = EBT ÷ Revenue
= $467,300K ÷ $2,877,100K
= 16.24%

The pretax margin of Carpenter Technology Corporation has exhibited a notable upward trend over the analyzed period from June 30, 2021, to June 30, 2025. In the fiscal year ending June 30, 2021, the company reported a pretax margin of -20.19%, indicating that it was operating at a significant pretax loss. This negative margin suggests that during this period, the company's expenses and costs exceeded its revenues, likely due to operational challenges or other financial pressures.

By June 30, 2022, the pretax margin improved markedly to -3.44%, reflecting a substantial reduction in losses and an improvement in profitability, although still remaining negative. This suggests that the company made progress in either increasing revenues, reducing costs, or both, moving toward better financial performance.

The fiscal year ending June 30, 2023, saw the company achieve a positive pretax margin of 2.84%, marking its first period of pretax profitability after two years of losses. This turnaround indicates an effective implementation of operational improvements, cost management, or revenue growth initiatives, enabling the company to generate pre-tax income.

Continuing its positive trajectory, the pretax margin increased further to 7.67% by June 30, 2024. This growth reflects ongoing gains in profitability, bolstered potentially by sustained operational efficiencies, product line expansion, or favorable market conditions.

Anticipating continued improvement, the projected pretax margin for June 30, 2025, is 16.24%. This significant increase signifies strong revenue generation relative to expenses, positioning the company into a markedly more profitable outlook. It indicates a substantial strengthening of the company's pre-tax earnings relative to its sales, suggesting successful strategic initiatives and market positioning.

Overall, the data illustrates a profound transformation from operating at a pretax loss to achieving a robust profit margin over the four-year span, indicating effective turnaround strategies and potential for sustained profitability in the future.