Carpenter Technology (NYSE:CRS) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Key Points

• Carpenter reported $2.77 EPS versus a $2.60 consensus and revenue up 11.6% YoY, delivered a record quarterly operating income of $186.5M with $193.5M cash from operations, and raised FY26 adjusted free cash flow guidance to at least $350M while continuing share repurchases and the dividend.
• The Specialty Alloys Operations segment hit a record 35.6% adjusted operating margin with $208M operating income and SAO Q4 guidance of $224M–$228M, as demand accelerates in aerospace/defense and industrial gas turbines (offset partially by weakness in medical/PEP).
• Shares traded down about 5.7% intraday to $403.90 despite the results; the company announced a $0.20 quarterly dividend and analysts have largely raised price targets, leaving a consensus rating of "Moderate Buy" with a ~ $403 price target.

Carpenter Technology (NYSE:CRS - Get Free Report) posted its quarterly earnings data on Wednesday. The basic materials company reported $2.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.60 by $0.17, Briefing.com reports. Carpenter Technology had a net margin of 14.77% and a return on equity of 23.63%. The firm's revenue was up 11.6% on a year-over-year basis. During the same period in the previous year, the firm earned $1.88 earnings per share.

Here are the key takeaways from Carpenter Technology's conference call:

• Carpenter reported a record quarterly operating income of $186.5M and generated $193.5M cash from operations ($124.8M adjusted FCF in the quarter), raising FY26 adjusted free cash flow guidance to at least $350M while continuing share repurchases and the dividend.
• The Specialty Alloys Operations (SAO) segment hit a record 35.6% adjusted operating margin
• Demand is accelerating in key end markets — notably aerospace & defense (structural bookings increased significantly) and industrial gas turbines (energy) — with more urgent/expedite requests as OEM inventories draw down, supporting near‑term volume upside.
• The PEP segment and medical end‑use were weak: medical sales fell 29% YoY (PEP operating income modest at $6.7M), with certain titanium medical products still soft despite improved bookings pointing to a potential gradual recovery.
• The Brownfield capacity expansion remains on budget and on schedule, but timing of cash payments shifted ~ $40M of FY26 CapEx into next year (FY26 CapEx now expected ~ $260M); management will update FY27 guidance next quarter.

Carpenter Technology Trading Down 5.7%

Carpenter Technology stock traded down $24.24 during midday trading on Wednesday, reaching $403.90. The stock had a trading volume of 638,020 shares, compared to its average volume of 796,066. The firm's fifty day simple moving average is $402.82 and its two-hundred day simple moving average is $349.37. Carpenter Technology has a twelve month low of $188.12 and a twelve month high of $459.18. The company has a debt-to-equity ratio of 0.35, a current ratio of 4.25 and a quick ratio of 2.26. The firm has a market cap of $20.12 billion, a price-to-earnings ratio of 47.00, a PEG ratio of 1.65 and a beta of 1.24.

Carpenter Technology Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Investors of record on Tuesday, April 28th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, April 28th. This represents a $0.80 dividend on an annualized basis and a yield of 0.2%. Carpenter Technology's dividend payout ratio (DPR) is currently 9.29%.

Analyst Ratings Changes

Several research firms have recently issued reports on CRS. JPMorgan Chase & Co. increased their price objective on shares of Carpenter Technology from $394.00 to $465.00 and gave the company an "overweight" rating in a report on Monday, April 20th. BTIG Research increased their price objective on shares of Carpenter Technology from $365.00 to $375.00 and gave the company a "buy" rating in a report on Friday, January 30th. Susquehanna began coverage on shares of Carpenter Technology in a report on Tuesday, March 3rd. They issued a "positive" rating and a $470.00 price objective for the company. Wall Street Zen upgraded shares of Carpenter Technology from a "hold" rating to a "buy" rating in a report on Saturday, January 31st. Finally, Wells Fargo & Company assumed coverage on shares of Carpenter Technology in a report on Wednesday, April 1st. They issued an "equal weight" rating and a $400.00 price objective for the company. Nine equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $403.11.

Insider Buying and Selling

In related news, Director Steven E. Karol sold 3,500 shares of the firm's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $381.12, for a total value of $1,333,920.00. Following the completion of the transaction, the director owned 225,381 shares of the company's stock, valued at approximately $85,897,206.72. This trade represents a 1.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP James D. Dee sold 15,800 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $391.78, for a total transaction of $6,190,124.00. Following the completion of the transaction, the senior vice president directly owned 73,739 shares of the company's stock, valued at $28,889,465.42. This represents a 17.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 22,300 shares of company stock valued at $8,664,044 in the last ninety days. Company insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Carpenter Technology

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Fiduciary Trust Co lifted its position in Carpenter Technology by 7.9% in the 3rd quarter. Fiduciary Trust Co now owns 1,223 shares of the basic materials company's stock worth $300,000 after buying an additional 90 shares in the last quarter. Nomura Holdings Inc. purchased a new stake in Carpenter Technology in the 3rd quarter worth approximately $283,000. Perbak Capital Partners LLP purchased a new stake in Carpenter Technology in the 3rd quarter worth approximately $264,000. Integrated Wealth Concepts LLC purchased a new stake in Carpenter Technology in the 4th quarter worth approximately $257,000. Finally, Smartleaf Asset Management LLC lifted its position in Carpenter Technology by 35.8% in the 4th quarter. Smartleaf Asset Management LLC now owns 808 shares of the basic materials company's stock worth $257,000 after buying an additional 213 shares in the last quarter. Institutional investors and hedge funds own 92.03% of the company's stock.

Carpenter Technology Company Profile

Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets.

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