Dimensional precision is a critical parameter in net shape processing of ferrous PM components. Sinter-hardening alloys undergo a transformation from austenite to martensite. Martensite formation expands the sintered compact, while tempering hardened steels results in shrinkage. In addition, martensitic regions with high Cu and C contents may contain large amounts of retained austenite. The presence of martensite and retained austenite, in addition to the tempering step, all play a role in the final dimensions of a component. This paper investigates the dimensional and microstructural changes to two sinter-hardening grades through different post-sintering thermal treatments.