Carpenter Technology (NYSE:CRS) Announces Quarterly Earnings Results

Carpenter Technology (NYSE:CRS) posted its quarterly earnings data on Thursday. The basic materials company reported $2.33 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.20 by $0.13, Briefing.com reports. Carpenter Technology had a net margin of 14.30% and a return on equity of 22.68%. The firm had revenue of $728.00 million for the quarter, compared to the consensus estimate of $733.76 million. During the same period in the previous year, the firm earned $1.66 EPS. The business’s revenue for the quarter was up 7.5% compared to the same quarter last year.

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

• Carpenter reported record quarterly operating income of $155.2 million, with the SAO segment at a record 33.1% adjusted operating margin and SAO Q3 guidance of $195M–$200M; company raised FY26 operating income guidance to $680M–$700M.
• Aerospace demand is accelerating—aerospace engine order intake rose 30% sequentially, commercial aerospace bookings were up 23% sequentially, and structural customers are now returning and placing larger, more urgent orders.
• Management sees continued pricing tailwinds—completed three long-term agreements with significant price increases—and cited a persistent industry supply shortfall in nickel-based superalloys (Carpenter’s brownfield expansion adds ~7% to its 2019 shipments, not enough to close the market gap).
• The PEP segment underperformed as net sales fell ~11% sequentially and ~10% year-over-year due to lower titanium demand from specific medical distribution customers, reducing PEP operating income to $6.9 million.
• Strong cash generation and balance-sheet moves—adjusted free cash flow of $85.9 million this quarter, FY26 free cash flow expected to be at least $280 million, $32.1M of share repurchases this quarter (<$183.1M YTD of $400M authorization), refinancing to lower interest rates, and total liquidity of $730.8 million.

Carpenter Technology Price Performance

NYSE CRS traded down $8.33 on Thursday, hitting $323.28. The stock had a trading volume of 1,370,279 shares, compared to its average volume of 862,098. The firm has a 50-day moving average of $324.36 and a 200-day moving average of $286.35. The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.37 and a current ratio of 4.44. Carpenter Technology has a 52-week low of $138.61 and a 52-week high of $355.00. The company has a market capitalization of $16.11 billion, a price-to-earnings ratio of 39.96, a price-to-earnings-growth ratio of 1.46 and a beta of 1.29.

Carpenter Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 5th. Investors of record on Tuesday, January 27th will be paid a dividend of $0.20 per share. The ex-dividend date of this dividend is Tuesday, January 27th. This represents a $0.80 annualized dividend and a yield of 0.2%. Carpenter Technology’s payout ratio is currently 9.78%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on CRS shares. Weiss Ratings reiterated a “buy (b)” rating on shares of Carpenter Technology in a research note on Tuesday. KeyCorp raised shares of Carpenter Technology from a “sector weight” rating to an “overweight” rating and set a $380.00 price objective on the stock in a research report on Thursday, November 13th. Zacks Research cut shares of Carpenter Technology from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 1st. TD Cowen restated a “buy” rating on shares of Carpenter Technology in a research note on Friday, November 14th. Finally, BTIG Research lifted their price target on shares of Carpenter Technology from $305.00 to $365.00 and gave the stock a “buy” rating in a report on Monday, October 27th. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $371.14.

Insider Activity

In related news, COO Brian J. Malloy sold 4,130 shares of the company’s stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $303.52, for a total value of $1,253,537.60. Following the transaction, the chief operating officer directly owned 78,875 shares in the company, valued at approximately $23,940,140. This represents a 4.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Elizabeth A. Socci sold 3,900 shares of the stock in a transaction on Wednesday, November 26th. The stock was sold at an average price of $321.25, for a total transaction of $1,252,875.00. Following the completion of the transaction, the vice president directly owned 9,594 shares in the company, valued at $3,082,072.50. The trade was a 28.90% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 79,358 shares of company stock worth $24,254,008. Insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Woodline Partners LP purchased a new position in Carpenter Technology in the 1st quarter worth $4,050,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Carpenter Technology by 1.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 104,785 shares of the basic materials company’s stock valued at $18,985,000 after acquiring an additional 1,701 shares during the last quarter. Focus Partners Wealth raised its holdings in shares of Carpenter Technology by 7.3% during the first quarter. Focus Partners Wealth now owns 4,615 shares of the basic materials company’s stock valued at $836,000 after acquiring an additional 314 shares in the last quarter. Quantbot Technologies LP bought a new position in Carpenter Technology in the second quarter worth about $80,000. Finally, Arrowstreet Capital Limited Partnership bought a new position in Carpenter Technology in the second quarter worth $533,000. 92.03% of the stock is currently owned by institutional investors.

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.