Sands Capital Management, LLC - Select Growth on Carpenter Technology
Thesis
Carpenter Technology supplies specialty nickel alloys to the aerospace industry and is benefiting from a multiyear production recovery. Fiscal third-quarter results showed significant operating leverage, including an 86 percent incremental margin as volume accelerated. Sands believes improving volume, pricing, and mix can continue expanding earnings power. The thesis is supported by specialized materials leadership and pricing power.
“We maintain conviction, supported by Carpenter Technology’s specialized materials leadership, pricing power, and exposure to a multiyear aerospace production recovery.”