Hello and welcome. My name is Ellie and I will be your conference operator for today. At this time, I would like to welcome everyone to the Carpenter Technology, CRS third quarter fiscal year 2026 earnings presentation call. Please note that this call is being recorded. After the prepared remarks, there will be a question-and-answer session. If you'd like to ask a question during that time, please press star followed by one on your telephone keypad. Thank you. I would now like to hand the call over to John Huyette, Vice President of Investor Relations. You may now go ahead, please. Thank you, operator. Good morning, everyone, and welcome to the Carpenter Technology Earnings Conference call for the fiscal 2026 third quarter ending March 31, 2026. This call is also being broadcast over the internet along with presentation slides. For those of you listening by phone, you may experience a time delay in slide movement. Speakers on the call today are Tony Thene, Chairman and Chief Executive Officer, Tim Lain, Senior Vice President and Chief Financial Officer, and Brian Malloy, President and Chief Operating Officer. Statements made by management during this earnings presentation that are forward-looking statements are based on current expectations. Risk factors that could cause actual results to differ materially from these forward-looking statements can be found in Carpenter Technology's most recent SEC filings, including the company's report on Form 10-K for the year ended June 30, 2025, Forms 10-Q for the quarters ended September 30, 2025 and December 31, 2025, and the exhibits attached to those filings. Please also note that in the following discussion, unless otherwise noted, when management discuss the sales or revenue, that reference excludes surcharge. When referring to operating margins, that is based on adjusted operating income, excluding special items and sales excluding surcharge. I will now turn the call over to Tony. Thank you, John, and good morning to everyone. I will begin on slide four with a review of our safety performance. We ended the third quarter of fiscal year 2026 with a total case incident rate of 1.3. We continue to make progress as a result of targeted actions we've implemented across the organization, centered on standardized work and disciplined safety practices. As always, we remain committed to our ultimate goal of a zero-injury workplace. Let's turn to slide five for an overview of our third quarter performance. Carpenter Technology just delivered another record quarter, reflecting the accelerating demand across our high-value markets and our continued strong operational execution. This record performance is best understood through four key takeaways that highlight the strength, durability, and trajectory of the business. One, record earnings. In the third quarter, we generated $187 million in operating income, exceeding our previous record set in the second quarter by 20%. Certainly, we have earned a reputation of setting meaningful financial targets and then exceeding them, and we did it again in this quarter. It must be noted, the ability to increase earnings by 20% sequentially over what was a record quarter and in a market that is still accelerating, must be recognized as superior performance. We are extremely proud of the Carpenter Technology team for their commitment to performance and their focus on continuous improvement. Importantly, these record earnings translated directly into another step change in cash flow generation. In the third quarter, we generated $193.5 million in cash from operating activities and $124.8 million of adjusted free cash flow. Two, expanding operating margins. The SAO segment delivered an adjusted operating margin of 35.6% in the quarter, another new record for the business. This margin compares to 33.1% in the prior quarter and 29.1% a year ago. This meaningful margin expansion clearly demonstrates the impact of ongoing productivity gains, product mix optimization and pricing actions. As a result of the expanding margins, the SAO segment recorded $208 million in operating income, an increase of 19% sequentially and another all-time record for this segment. Three, strengthening market demand. We see clear and accelerating demand signals across the Aerospace and Defense end-use market, reflected in both OEM production plans and order intake. Notably, bookings for aerospace structural materials continue to increase, up substantially this quarter. Remember, the sub-market for aerospace structural material has been the most impacted by the OEM build rates. Therefore, increasing orders from our aerospace structural customers is a clear signal that the supply chain is accelerating the ramp to support the expected OEM build rates Four, pricing continues to be a tailwind. As I've said many times, pricing has been and will continue to be a tailwind for the business. Against a backdrop of strong demand, customers are prioritizing security of supply, and we are continuing to realize pricing that reflects the value we deliver. While no long-term agreements were completed in the quarter, several are currently in negotiation. These long-term agreements support attractive economics for us while providing our customers with the supply chain certainty they need, making them strategically beneficial for both sides. Now let's turn to slide six and have a closer look at our third quarter sales and market dynamics. In the third quarter of fiscal year 2026, we delivered strong top-line growth, with total sales excluding raw material surcharge up 10% year-over-year and up 11% sequentially, reflecting higher volumes and continued pricing strength. The higher volumes were the result of increased operating time, improved productivity, and increasing demand for aerospace materials, primarily in the aerospace structural sub-market. Looking ahead, we expect continued productivity improvements and healthy demand across our core end-use markets to support further sales growth. Now let me review our key end-use markets, starting with Aerospace and Defense. Sales in the Aerospace and Defense end-use market were up 13% sequentially and up 17% year-over-year. Our sales growth reflects accelerating activity across the aerospace supply chain as OEMs continue to push towards higher build rates. Let me give some color on what we see happening in the aerospace market. With backlogs of new plane orders reaching new records every quarter, Boeing and Airbus are ramping production. Notably, Boeing is now consistently producing 42 737s per month. As reported on their recent earnings call, they are poised to go to 47 per month this summer and have their sights set on 52 and beyond due to the growing demand. As a result, the supply chain is building confidence and our customer order intake has been increasing. Even with the increasing orders, OEMs are still concerned that the supply chain is not ordering material fast enough. We agree, as we have seen order intake increase significantly, but we know from experience that it is still not enough to support the desired ramp. Over the last three months, we've had customers reach out requesting urgent deliveries to avoid line shutdowns for specific applications. We also continue to have customers across engine programs telling us our material is needed sooner. The Boeing comment inventories that had been helping with recent output are now coming down is significant. It will drive urgency to yet another level. We expect this urgency will continue to spread throughout the supply chain as inventories run short, further tightening the market for our materials. Moving on to the Medical end-use market, our sales were down 9% sequentially and 29% compared to the prior year third quarter. On a positive note, bookings were up significantly in the quarter, supporting our expectation the Medical end-use market will begin to recover and return to growth in the near term. In the Energy end-use market, sales increased 32% sequentially and 44% year-over-year, driven by higher volumes supporting industrial gas turbine builds. The demand from our IGT customers, primarily driven by the growing energy needs of data centers, remains strong across multiple platform types and OEMs. Keep in mind that the production flow for the IGT material goes across similar flow paths as aerospace material. As a result, quarterly sales for IGT material can fluctuate due to order timing and production scheduling. Taking a step back, we are clearly operating in an accelerated demand environment across our highest value end-use markets. Combined with our differentiated capabilities and capacity, this positions Carpenter Technology for meaningful growth, both in the near term and over the long term. I will turn it over to Tim for the financial summary. Thanks, Tony. Good morning, everyone. I'll start on the income statement summary on slide eight. Starting at the top, sales excluding surcharge increased 10% year-over-year on 15% higher volume. Sequentially, sales were up 11% on 10% higher volume. The improving productivity, product mix, and pricing are evident in our gross profit, which increased to $251.8 million in the current quarter, up 25% from the same quarter last year and up 15% sequentially. Selling, general, and administrative, or SG&A expenses were $65.3 million in the third quarter, up roughly $2 million both sequentially and versus the same quarter last year. The SG&A line includes corporate costs, which were $27.3 million. This is up $1.1 million sequentially and up $2.9 million from the third quarter of fiscal year 2025. For the upcoming fourth quarter of fiscal year 2026, we expect corporate costs to be between $25 million-$26 million. Operating income was $186.5 million in the current quarter, which is 35% higher than our third quarter of fiscal year 2025 and up 20% from our recent second quarter. As Tony mentioned earlier, this represents another record quarterly operating income result, breaking the previous record set last quarter. Moving on to our effective tax rate, which was 21% in the current quarter. This quarter's effective tax rate was lower than anticipated, primarily due to discrete tax benefits associated with changes to the estimates for certain tax positions taken in the prior year. For the upcoming fourth quarter of fiscal year 2026, we expect the effective tax rate, excluding discrete items, to be about 23%. Finally, the earnings per diluted share was $2.77 per share for the quarter. Turning to the next slide to talk about our cash generation and capital allocation priorities. In addition to the strong earnings performance, we've generated meaningful cash flows driven by higher earnings and ongoing efforts to manage working capital closely, particularly inventory. To date, in fiscal year 2026, we generated $364.9 million of cash from operating activities. This is roughly 2x the operating cash flows when compared to the same period last year. The cash generated from operations more than supports the capital spending in fiscal year 2026. To date, we have spent $157.6 million in fiscal year 2026. This includes the annual targeted capital expenditures of $125 million, as well as the Brownfield capacity expansion project. As anticipated, capital spending ramped in our recent third quarter, totaling $68.7 million as activities around the capacity expansion project accelerated. A brief update on this project. The Brownfield capacity expansion project remains on budget and on schedule. The construction phase is well underway and key equipment deliveries have begun. The project team remains focused on not only completing construction and installation of equipment, but also preparing for activities to ensure a smooth startup of operations. We look to the balance of the year, we expect capital expenditures for fiscal year 2026 to finish at about $260 million. This is below the expectation we set at the beginning of the year, based solely on changes in the estimates we made for the timing of cash spending related to the project. This doesn't change our outlook for the full project that we set out when we announced the expansion. With those details in mind, to date in fiscal year 2026, we have generated $207.3 million in adjusted free cash flow. We are increasing our outlook for free cash flow and currently expect to generate at least $350 million of adjusted free cash flow in fiscal year 2026. As we have said many times before, our adjusted free cash flow generation is important as it enables us to deploy a balanced capital allocation approach. That includes investing cash in attractive and accretive growth projects, like the Brownfield capacity expansion and returning cash to shareholders. To that end, we continue to execute against our repurchase authorization and repurchased $133.9 million of shares in FY 2026. This brings the total to $235.8 million spent to date against the $400 million authorization that we announced in July of 2024. In addition to the buyback program, we also continue to fund a recurring and long-standing quarterly dividend. Finally, our ability to deploy capital is also supported by our healthy liquidity and strong balance sheet. Last quarter, we talked about the refinancing actions we took to strengthen both our balance sheet and liquidity. As of the most recent quarter end, our total liquidity was $793.8 million, including $294.8 million of cash and $499 million of available borrowings under our credit facility. Our credit metrics remain very strong, with our net debt to EBITDA ratio remaining well below 1x. Altogether, we believe our strong balance sheet and outlook for significant cash generation positions us well to fund continued growth and deliver significant shareholder returns. With that, I'll turn the call to Brian. Thanks, Tim, and good morning, everyone. I'll provide some commentary on each of our segments for the quarter. Starting on slide 11 with our Specialty Alloys Operations segment. SAO delivered an exceptional third quarter, marked by strong top-line growth, record margins, and another step change in operating income performance. SAO's performance was supported by continued improvements in productivity across our facilities, pricing realization, product mix optimization, and higher available uptime versus the prior quarter. Net sales, excluding surcharge, were $585 million in the quarter, up 13% year-over-year and 11% sequentially, with both comparisons driven by higher volumes. The growth was led by improving demand in the Aerospace and Defense market, as well as continued strength in Energy, especially from IGT customers. Adjusted operating margin increased to a record 35.6% in the quarter, marking the 17th consecutive quarter of margin expansion and exceeding the prior record set just last quarter. Keep in mind, there are short-term factors that could impact what operating margins can be in any given quarter, most notably the mix of products. While quarterly margins can vary based on product mix, the underlying trajectory remains clearly upward, supported by our core structural drivers: productivity, mix, and pricing. As a result of top-line growth and expanding margins, SAO delivered operating income of $208 million in the third quarter, the highest quarterly result in the segment's history and a significant sequential increase. The SAO team has clearly risen to meet the challenge and is operating at a high level across the organization. From the commercial team working with customers to provide solutions to our production planning team, optimizing our manufacturing system to ensure that the highest margin materials are prioritized across flow path and to the manufacturing team, the backbone of our operations, improving productivity at each shift to ensure we consistently produce at high levels to meet the growing demand. The SAO team is not content with our current success. We believe we can do better and are looking forward to continuing to demonstrate record-breaking performance. Looking ahead to the fourth quarter, SAO remains focused on sustaining this momentum by optimizing product mix for margin, closely managing production planning and capacity, and continuing to drive productivity and cost discipline. Based on current visibility, we expect SAO to generate operating income in the range of $224 million-$228 million in the fourth quarter, representing yet another strong step forward for the segment. Now turning to slide 12 and our PEP segment results. Net sales excluding surcharge in the third quarter of fiscal year 2026 were $90.6 million, up 17% sequentially and down 6% from the same quarter a year ago. The sequential improvement in sales was driven by increasing sales in Aerospace and Defense. Year-over-year, Aerospace and Defense sales were also higher, but were more than offset by a year-over-year decline in Medical sales in our titanium business. The softness in the Medical market continues to be in certain titanium products for a specific set of Medical distribution customers, which has had an outsized impact on our titanium business. As Tony mentioned in his comments, we're seeing an increase in bookings and are optimistic about a return to a growth trajectory in the Medical market. Our teams in Dynamet continue to focus on what they can control, like productivity, equipment reliability, and overall consistency. Very similar to the dynamics in SAO. More recently, although a smaller piece of PEP, a bright spot has been our additive business, where our material solutions continue to benefit from strong demand. The growing demand in additive is driven primarily by the Aerospace and Defense end-use market, where our value proposition for highly specialized products and capabilities support our customers' needs. PEP reported an operating income of $6.7 million in the current quarter, which is, as we expected, largely in line with our recent second quarter. We currently anticipate the PEP segment's operating income for the upcoming fourth quarter to be in line with the third quarter of fiscal year 2026. With that, I'll turn the call back to Tony. Let me close as I have the last couple of quarters with why Carpenter Technology is a compelling story for existing and potential shareholders. One, we have an enviable market position in the industry. We're at the beginning of a major growth cycle, especially in the Aerospace and Defense end-use market. With the accelerating aerospace build rates driving higher demand for our materials, a fundamental supply-demand imbalance in nickel-based superalloys will continue to tighten. Our leading capabilities are differentiated by stringent qualifications necessary to supply advanced materials for Aerospace and Defense and other key end-use market applications. Our world-class collection of unique manufacturing assets are difficult, if not impossible, to replicate. Two, we have demonstrated a commitment to a balanced capital allocation approach. As Tim noted, we have a healthy liquidity position and a strong balance sheet combined with an impressive cash flow generation outlook with a long-standing dividend and a robust share repurchase plan. Our strong performance enables us to invest in highly accretive growth projects that accelerate earnings growth but do not materially impact the nickel-based supply-demand imbalance. Three, we continue to deliver record financial results with a strong earnings outlook. We just completed another record quarter of profitability driven by significant margin expansion in our SAO segment. As I mentioned earlier, it is important to keep in mind that we are delivering record earnings even at a time when the Aerospace and Defense market is at the beginning of this growth cycle. Today, we increased our operating income guidance for fiscal year 2026. That implies at least a 33% increase over a record fiscal year 2025. I don't know of anyone in our industry who can say they have a stronger earnings outlook than Carpenter Technology. Looking forward, our current fiscal year 2027 earnings target is outdated and does not reflect our current earnings momentum. Further, with the demand environment accelerating, especially in Aerospace and Defense, we are confident our financial outlook will continue to improve beyond fiscal year 2027. We will provide an updated view, including fiscal year 2027 guidance, on our next quarter's earnings call. Carpenter Technology checks every important shareholder criteria box. To date, we have created significant shareholder value, but we are only at the beginning of this growth journey. The best is still to come. Thank you for your attention. I will now turn the call back to the operator. Thank you. We are now opening the floor for question and answer session. If you'd like to ask a question, please press star followed by one on your telephone keypad. That's star followed by one on your telephone keypad. Your first question comes from the line of Gautam Khanna of TD Cowen. Your line is now open. Hey, thanks. Good morning, guys. Hey. Good morning, Gautam. Just wanted to ask if you could comment on like lead times, if they changed at all, broadly engine and other key sub-markets. Also wanted to get a sense for what do you think is possible with respect to increasing output? I know you guys are kind of 24/7 full out, but, you know, just as we think about 2027 and 2028, outside of pricing, you know, how much tonnage could grow over those couple years? Thanks. Yeah, sure. On lead times, they remain fairly consistent quarter-over-quarter. I do anticipate those starting to push out here in the near term. As you well know, we kind of cap lead times anyway based on our order activity. I see those pushing out as we go over the next couple of quarters even higher than they are right now. Your second question is a really good one. That's one of the reasons I kind of alluded to the fact that we're producing record earnings when the aerospace market specifically is still accelerating. It's also the reason why we've noted a couple times the order intake acceleration of aerospace structural materials. Because although you say we're operating 24/7, which is correct on specific process or production flow paths, particularly on the engine side, but on some of the other aerospace sub-markets, we are not. We have pockets of opportunity there, and because, you know, the structural market was not ordering. We have a very nice opportunity from a volume standpoint in some of those sub-markets over the next two quarters, over the next two years, as you stated. I think Brian mentioned in his prepared remarks, We've done a tremendous amount of work on productivity. I mean, that just jumps off the page. There's still a lot more to do there. From a volume standpoint, Gautam, I guess to summarize my answer, there's still a lot left in the tank there for us. All right. Thank you. Appreciate it. Yep. Your next question comes from the line of Scott Deuschle of Deutsche Bank. Your line is now open. Hey, good morning. Tony, for the transactional price increases that you referenced in the press release, is that mostly referring to favorable transactional pricing for aerospace structural alloys, or are you seeing those transactional prices creep up more broadly across the portfolio? Scott, remind me. I'm not sure I specifically mentioned price in my prepared remarks. I talked about order intake increasing on that specific sub-market. I will say that we continue to see, you know, pricing as a tailwind force. Again, you know this very well, you see our price per pound potentially being flat. That's good news for our overall earnings 'cause you see structural business being a bigger ratio of our total volume. That's good. It does have a relatively lower price point than, for example, engines. If you look at aerospace in total, you'll still see a positive trend there. Come back with a follow-up there if I didn't quite answer your question. Okay. Yeah, that's fine. Then has the frequency of expedite requests been increasing pretty steadily each month this year, or have those expedite requests been pretty erratic each month? Yeah, that's an interesting question. I guess there is a feel of a little bit that they're a little bit unpredictable from that standpoint, but If I can't say they've been consistently, you know, like, we're getting those on a pretty regular basis. I think those are going to increase if history is any indication. As I said in the prepared remarks, we share the same sentiment at the OEMs where they do not believe that the order intake, although increasing, is not enough yet. There is concern on the OEMs that suppliers are not ordering enough material fast enough. We agree with that, and I think as that continues to step up, you'll get more and more emergency orders. I mean, also, as you well know, I really don't wanna be in the emergency order business. I'd like for all the customers to order at a nice, you know, consistent pace so we can plan our facilities the best possibly we can. I do see that that's going to, that's gonna increase for us over the next couple quarters. I think that's pretty well an absolute. Okay. Last question. Thene, can you say how much IGT revenue specifically was up in the quarter? Can you give us an updated sense as to how much of the Energy mix is now IGT at this point as opposed to oil and gas? You see on that one slide you showed the total, the total Energy. That was almost 100% driven by IGT. Right now, IGT is I would say that dominating that space. Oil and gas is rather subdued from quarter-to-quarter. IGT was the big driver of this quarter. Now, keep in mind also, big increase in IGT. Remember, last quarter, I believe it was a pretty material decrease, that's just the order patterns of IGT. I don't get too excited if I see a +36% because you had a big order come in, you could be -20% the next quarter. Over a long period of several quarters' time, we've seen significant and consistent increasing on the IGT business. Thank you. Yep. Your next question comes from the line of Josh Sullivan of Jones Trading. Your line is now open. Hey, good morning. Hey, Josh. I just wanted to say congratulations, Tony, to the next phase here. You know, great job done stewarding Carpenter to these heights, and to Brian, congratulations on the next leg here. Thank you. Thank you. I guess just to follow up on the aerostructures question, you know, Boeing made some comments, you know, I think above, what was it, 47, it would take a bigger investment on the supplier inventory side, you know, versus some of the previous jumps. When you talk about, you know, supply chain under-ordering, would you expect that, or is it your sense that we're gonna the supply chain's gonna see that and tighten up in the near term, or do you think we need to be, you know, at above 47, as Boeing's kind of talking about, to really see the supply chain react? Well, Josh, that's a really good question. In many ways, that's the million-dollar question, right? What is that last piece of information that drives that increased behavior? I can say we speak regularly to our customers about that. I would say every month you see more and more activity. I don't necessarily think that it needs to be at 47 before you see a big jump in activity, particularly on the structural side, only because we've already seen a nice jump up. Now, it's not enough. I think another really important point that I made there too, Josh, is where Boeing stated that they have basically, you know, exhausted their inventory. That's a key piece of information. Let's see how it plays out. I don't necessarily think we have to wait for the 47 to see that next push up in orders. Let's see how it goes over the next 30, 60 days. Yeah. That's. Then I guess just kind of relatedly on the cash flow profile for Carpenter, whenever that does happen and you start to see that order intake, I mean, is there any working capital builds? You know, I know you guys are, you're out so far on your lead times. Maybe not, just curious that when that bow wave does finally hit, I mean, is there any sort of thought process on the cash flow profile, or should it be pretty consistent? I'll leave that one to Tim. Yeah, I'd say it's pretty consistent, Josh, over time. I mean, we still think inventory is an opportunity for us, and that'd be the biggest impact, I mean, other than sales increasing in AR and days and things like that. We view all the work that's being done on productivity, we view inventory as an opportunity, so I don't see us investing heavily in inventory just to meet demand. Got it. Just one last one, you know, just on, you know, more of the jet engine aftermarket bookings characteristics for the quarter, just on that, and then I'll jump back in the queue. What was the question? Just the bookings on engines? Is that what you said? On forging. Yeah, forging jet engine side, you know, more aftermarket kind of related activity, as, you know, just some questions around obviously the broader air traffic environment and maintenance market. Just any comments you might have there? Yeah, sure. Usually Gautam asks me this question, what sales of engines are up sequentially. I'll tell you that engines sequentially were up 24%, sales year-over-year 44%, so still see very strong sales on the engine side. Fasteners were up 9% or 10% sequentially, about 20% year-over-year. Do you see good movement there. Orders were pretty much in line. We had a big quarter last quarter, had another big quarter this quarter in orders. You know, as I've said before, I think you'll continue to see that increase over the next couple quarters. Sure. Thank you. Thank you. Your next question comes from the line of Bennett Moore of JPMorgan. Your line is now open. Good morning, Tony, Tim, Brian. Congrats on the quarter, and thank you for taking my questions. Morning, Bennett. I wanted to come to defense. I'm wondering if you've seen any uptick in defense-related orders since the onset of the conflict, and maybe if you could provide any color on, you know, where you might have more exposure within those sub-markets, you know, for instance, munitions versus jets, et cetera. Yeah, you know, it's a great question. We saw increased activity even in advance of the Middle East conflict, just because, you know, with the Department of Defense wanting to revitalize and restock it, if you will. We had seen that in the past already. Just as a reminder, just as you start talking about different sub-markets there, I mean, we're a supplier, I think you know, Bennett, on many platforms, fixed wing, rotorcraft, naval, missile, armored vehicles. We're across multiple sub-markets, if you will, that are all very program-specific. Again, it is a more of a lumpy order pattern depending on the program. We see this as a sub-market that's gonna continue to increase. In many ways, the impact of the conflict has not been felt yet. I mean, there could potentially be another push-upward on orders just to do that replenishment. That's not always a immediate signal that we see through the supply chain. I think there's probably more to come on the order intake from a defense standpoint, which was already elevated, I think even goes to the next level. Thanks for that context. Mm-hmm. I think this quarter's buybacks were the strongest since the program started, and despite the Athens CapEx, the free cash flow outlook is improving. I'm wondering how this might impact any capital allocation decisions. Could we expect to see a relatively higher, you know, quarterly buyback run rate moving forward? Well, it's possible. I mean, it's a good, it's a good position to be in, right? I think it's very important, and I said it in my prepared remarks because I think it's critical to our shareholders, is that we're gonna stay balanced. We're gonna have a repurchase program. We're working on our current Brownfield. That's our focus. That type of relationship, if you will, you should anticipate that being pretty close to the same going forward. That's how we're gonna run the company and, you know, I got Brian sitting here right next to me. He's shaking his head. That's obviously exactly the way he feels as well. Understood. Thanks for the context, and best of luck. Thank you, sir. Your next question comes from the line of Andre Madrid of BTIG. Your line is now open. Tony, Tim, John, thanks for the question, and good morning. Good morning. I kinda wanted to dig into LTAs a little bit further. I think in the release you had talked about, and in your comments as well, you know, a willingness to kind of further advance some of those LTAs. There's some that are in the works right now, really pushing for, you know, volume visibility and pricing consistency. Is that an indication that you think, you know, LTA mix might increase through, you know, the coming quarters and years? I guess I'm trying to figure out how that mix might evolve with where we are in the demand environment. Yeah, Andre, that's a good question. Total Carpenter, I mean, our percent LTAs is in the 40%. If you look at aerospace only, it jumps up quite a bit. You're in the low 60%. You know, 60%, 60%-65% of aerospace revenue is under some type of LTA. Honestly, I don't see that changing a lot going forward. Mutually, there's some customers that don't operate under an LTA based on their preference. I would say what's changing is the customers that historically have been doing business with us under an LTA would like for those to be longer, of course. That's another data point to suggest that they also believe in the tightness of the market, and it's only gonna get tighter. That's why they'd like to have it longer. We work with each of our customers individually on what's best for both of us. I guess gave you a little bit more than what you asked for, but at a high level, I don't see that percentage changing drastically going forward. Got it. Got it. No, that's all helpful color. I think pivoting back, you know, not to beat the dead horse here, but, you know, aerostructure orders. What kind of quantifiable color can you give there? I remember last quarter you guys had said, you know, like January month to date orders were higher than any month in 2025. Like, is there a similar metric that you can give us right now to kind of, you know, show just where demand is after structures? Well, I'll say it this way, without getting into specifics on all the sub-markets. You had a continued strong order demand for structural last quarter, and you saw a similar type of increase this quarter. No, no pullback on the structural side. Andre, to be honest, I think that's gonna continue. That's why we made the point about I don't think the order rate that's coming into us, although it's increasing significantly, I'm speaking on the structural side, those more distribution value add customers, even though it's increased significantly, I think there's still a lot more to go there. Got it. No, that's really helpful, Tony. I'll leave it there and jump back in the queue. Thanks so much. Thank you, sir. Your next question comes from the line of Samuel McKinney of KeyBanc Capital Markets. Your line is now open. Hey, good morning. Good morning. It sounds like some of that fiscal year 2026 CapEx has been pushed into next year. Could you give us a little more color on the reasons behind the delayed cash spend at the Brownfield expansion? Yes, Sam, this is Tim Lain. You're right. We did defer about $40 million of the expected. We set a number for CapEx at the start of the year around $300 million. That includes the annual $125 million in targeted CapEx in addition to the Brownfield capacity. You know, it's a pretty complex project. You make a set of assumptions on the activities that are gonna happen. On top of that, you've also got to project what you think cash payments are gonna be relative to different milestones and payment terms and, again, a lot of variability. Throughout the year, we're looking relatively positive. We just finished Q3. We have a good handle on what's gonna happen in the next 90 days. It's an indication of the cash, not necessarily an indication of the progress on the project. The project's still on track from a timing and budget perspective. It's really just the timing of cash payments. That's why we reduced the estimate to $260 million for the year for CapEx. Okay. I ask this 'cause I know we all get questions about it on our end, and I know you said you'd touch on it next call, but the release generally talked about continued momentum into next year. Did you guys give any thought to updating that existing EBIT guidance range for next year, given the commercial aerospace production momentum has clearly improved meaningfully since you gave that outlook last year? Is the question, Sam, did we give any thought to giving that update this quarter? Yes, that's the question. You know, we have a very detailed process, right? I could tell you right now at 2027, 2028, 2029, and 2030. I've got a number for each one of those. I wanna drive, and Brian Malloy wants to drive ownership down throughout the entire organization. We have a process that we do our first cut in the fall, we come back in the spring, and we do a bottoms-up cut of that again, right? Where the commercial team does customer by customer, product by product. Operations folks come in, piece of equipment by piece of equipment, what the productivity rates are gonna be, and we're in the process of doing that right now. Brian and I both know what that number in 2027 needs to be, but I want the ownership of the people out on the shop floor, that they're not only going to hit that number, but exceed that number. I don't want to interrupt a process that has worked very, very well for us over the last several years. We'll be wrapping that up here shortly, and then the next time we speak publicly will be the fourth quarter. That's why you'll get it in the fourth quarter, and that's why we've done it the last couple years. Samuel McKinney, that works for us, and that gets buy-in from our entire organization. As I said in my notes, I mean, it's clear that the 2027 number as it stands now is outdated and we'll be doing much better than that. Nope, that's completely fair. I understand. Thanks, Tony and Tim. Thank you, sir. If you'd like to ask a question, please press star followed one on your telephone keypad. Press star followed by one on your telephone keypad. Your next question comes from the line of Scott Deuschle of Deutsche Bank. Your line is now open. Tony, did I hear you right that jet engine revenue was up 44% year-over-year? Was there any sub-market within A&D that moved against you in a meaningful way to offset that? I did say that. I think to, you know, total A&D was up 17%. You know, I think some of the other ones you'll have, you know, different pockets that were plus and minus, a little bit. Fasteners was up as well. You had a really big structural sales month. Sorry, not month, quarter, last quarter. This quarter, the structural distribution was actually down from a sales standpoint a little bit, but the orders were high. You know how that works, Scott, it doesn't always match up in that tight 90-day window. Okay, that's helpful. Thank you. Yep. Thank you, sir. Your next question comes from the line of David Strauss of Wells Fargo. Your line is now open. Good morning. Thanks for taking my question. You know, the incremental margins that you've been putting up, ex, you know, ex surcharge at SAO have been, you know, been extraordinary. I think this past quarter, 80-some%. Looks like you're forecasting or baking in kinda something similar in Q4. How, how do we think about what might be more normal incremental margins for that business as, you know, the structural piece, kind of becomes a bigger portion, I would assume, going forward? Yeah. David, number one, welcome to the call. We appreciate you picking up coverage. I think I'm gonna get Brian involved on the call here and let him give a comment at least from a high level from a operating margins, and then maybe I can fill back in afterwards. Yeah, yeah. As you've seen, we've delivered steady increase in SAO margins, we're very happy with the efforts of the commercial and operating teams to have achieved the 35.6% this quarter. We've got, you know, a strong performance mindset. We obviously have action plans in place to continue to grow from here. Just remind you that, you know, quarter by quarter, the margin expansion isn't gonna be linear, so there are a lot of factors we mentioned in our prepared comments that operating margins can be in any given quarter, you know, different. Overall, we see a positive trend upwards. I'm not going to start forecasting quarterly operating margins, but I will say that my expectation is that 35.6 is not the ceiling. We expect the dynamics that are driving margins today to only get stronger in the coming years. David, I Yeah. I would just add on to that, you know, because you mentioned structural, specifically, and that's a very good point. Certainly, as the market grows, and we want it all to grow, and you see that structural business get higher, that could have an impact. Now, just because something is at lower price doesn't necessarily mean it's a lower margin, right? Because it has a different process flow. But we've been able to offset any of the type of mix movements, with some of our other levers. Hopefully that was that answered your question. Yeah. Yeah, that, appreciate that. That's helpful. You know, on the price per pound discussion with regard to SAO, how do we kind of reconcile, you know, flat-ish price with, you know, I think relatively flat year-over-year with engine up so much year-over-year? I thought you were kind of, you know, implying, or my understanding is engine price per pound would be higher than kind of structural and fastener. Just asking, you know, kind of how do we reconcile that? I'll tell you this, David. I don't wanna get into a habit of giving price movement by every sub-market, but it is a good question, and I will say, remember, we're about 65% Aerospace. That number you saw was total CRS. You saw some improvement, some higher sales in some of our non-aerospace markets that have traditional, a lower price. I will give you this, that if you look at aero only, year-over-year, price is up, you know, almost 10%. That's the real driver. It is so mix dependent, but from an aero-only standpoint, you see that continuing to go up. As you see other non-aero businesses or sub-markets increase in volume, that's a good thing for overall earnings. That could have a, you know, more of a, you know, a lowering impact on the overall Carpenter total price per pound. Okay. Got it. Thanks very much. Thank you, sir. Thank you. I would now like to hand the call back to John Huyette for closing remarks. Thank you, operator, and thank you everyone for joining us today for our fiscal year 2026 third quarter conference call. Have a great rest of your day. Thank you for attending today's call. You may now disconnect. Goodbye.