Carpenter Technology (NYSE:CRS) Announces Quarterly Earnings Results

Carpenter Technology (NYSE:CRS) released its quarterly earnings results on Thursday. The basic materials company reported $3.23 EPS for the quarter, topping analysts’ consensus estimates of $3.09 by $0.14, Briefing.com reports. The company had revenue of $679.70 million for the quarter, compared to the consensus estimate of $863.33 million. Carpenter Technology had a net margin of 16.96% and a return on equity of 26.46%. Carpenter Technology’s revenue was up 12.6% on a year-over-year basis. During the same period in the previous year, the firm earned $2.21 EPS.

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

• Record profitability continued: Fourth-quarter operating income rose 37% year over year to $206.9 million, while SAO operating margin reached a record 37.8%. Full-year adjusted operating income increased 34% to $702 million.
• Management issued strong growth targets: Fiscal 2027 operating income is expected at $850 million–$880 million, up approximately 21%–25%, with fiscal 2029 targeted at $1.2 billion–$1.3 billion. Management characterized the FY2027 outlook as a potential floor and said it expects to outperform its targets.
• Aerospace demand is accelerating: Fourth-quarter aerospace and defense sales increased 17% year over year, with strong demand from engines, fasteners, structural customers, and defense programs. Boeing and Airbus production increases, large aircraft backlogs, and customer requests for additional material support expectations for further volume growth.
• Cash generation and shareholder returns remain strong: Carpenter generated $362.3 million of adjusted free cash flow in FY2026, repurchased $179.1 million of shares, paid $40.3 million in dividends, and ended the quarter with $892.4 million of liquidity and net debt below one times EBITDA.
• The Brownfield capacity expansion remains on budget and on schedule for completion by early FY2028, but production will ramp gradually. Management expects the project to be operating-income accretive in FY2028 and to contribute approximately $150 million of incremental operating income by FY2030; the exact contribution depends on product qualifications, mix, and pricing.

Carpenter Technology Price Performance

NYSE:CRS traded up $16.31 during trading hours on Friday, reaching $520.02. 724,189 shares of the company’s stock were exchanged, compared to its average volume of 672,616. The company has a quick ratio of 2.08, a current ratio of 3.81 and a debt-to-equity ratio of 0.31. The company has a market capitalization of $25.84 billion, a P/E ratio of 49.43, a price-to-earnings-growth ratio of 1.42 and a beta of 1.22. Carpenter Technology has a 12 month low of $228.00 and a 12 month high of $625.98. The business’s 50-day simple moving average is $552.95 and its two-hundred day simple moving average is $446.84.

Carpenter Technology News Roundup

Here are the key news stories impacting Carpenter Technology this week:

• Positive Sentiment: Fiscal Q4 earnings exceeded expectations: Carpenter reported adjusted earnings of $3.23 per share, ahead of the $3.09 consensus estimate and up from $2.21 a year earlier. The company also posted 12.6% year-over-year revenue growth, supporting the market’s view that profitability is accelerating. CRS Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management outlined an ambitious growth trajectory: Carpenter entered fiscal 2027 with record profitability, improving aerospace demand and a fiscal 2029 operating-income target of $1.2 billion to $1.3 billion. The outlook reinforces expectations for sustained demand in aerospace and other high-performance materials markets. CRS Q4 Earnings Call Highlights Strong Growth Outlook
• Positive Sentiment: BTIG became more bullish: BTIG raised its price target from $450 to $620 and assigned a “buy” rating, indicating confidence that Carpenter’s earnings growth and industry exposure can support further upside.
• Neutral Sentiment: Analyst views remain positive but targets are being recalibrated: JPMorgan trimmed its target from $705 to $700 while maintaining an “overweight” rating, and Susquehanna reduced its target from $680 to $600 but retained a “positive” rating. These changes suggest valuation or near-term execution concerns, but neither firm turned bearish.
• Negative Sentiment: Revenue performance was mixed relative to estimates: Carpenter reported quarterly revenue of $679.7 million. Although revenue increased year over year, it was below the $863.3 million consensus cited in one report, creating a potential concern despite the EPS beat and strong profitability.

Analyst Upgrades and Downgrades

CRS has been the topic of a number of research analyst reports. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $500.00 price objective on shares of Carpenter Technology in a research note on Thursday, April 30th. Wells Fargo & Company lifted their price target on Carpenter Technology from $400.00 to $425.00 and gave the company an “equal weight” rating in a research report on Monday, May 4th. Zacks Research upgraded Carpenter Technology from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 15th. BTIG Research upped their price objective on Carpenter Technology from $450.00 to $620.00 and gave the company a “buy” rating in a report on Friday. Finally, Susquehanna decreased their target price on Carpenter Technology from $680.00 to $600.00 and set a “positive” rating for the company in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus target price of $567.38.

Insiders Place Their Bets

In related news, Director Anastasios John Hart sold 750 shares of Carpenter Technology stock in a transaction on Monday, May 4th. The stock was sold at an average price of $423.86, for a total value of $317,895.00. Following the transaction, the director directly owned 750 shares in the company, valued at $317,895. The trade was a 50.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Marshall D. Akins sold 11,815 shares of the business’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $441.36, for a total value of $5,214,668.40. Following the sale, the vice president directly owned 18,344 shares in the company, valued at $8,096,307.84. This trade represents a 39.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Carpenter Technology

Institutional investors have recently bought and sold shares of the stock. Geneos Wealth Management Inc. purchased a new stake in Carpenter Technology during the second quarter valued at about $28,000. Headlands Technologies LLC purchased a new position in shares of Carpenter Technology in the second quarter worth approximately $43,000. Rakuten Securities Inc. acquired a new stake in shares of Carpenter Technology during the second quarter valued at approximately $45,000. Sunbelt Securities Inc. acquired a new stake in shares of Carpenter Technology during the third quarter valued at approximately $48,000. Finally, GeoWealth Management LLC purchased a new stake in shares of Carpenter Technology in the 3rd quarter valued at approximately $49,000. Hedge funds and other institutional investors own 92.03% of the company’s stock.

About Carpenter Technology

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.