Carpenter Technology Corporation

Carpenter Technology Corporation Earnings Recaps

CRS Industrials 2 recaps
Q3 2026 Apr 30, 2026

Carpenter Technology reported record third quarter earnings and margins, with sequential and year-over-year improvements across key financial metrics. Despite these positive results, the market reaction was neutral (+0.0%), indicating that the quarter and outlook generally matched investor expectations.

Key takeaways
  • Generated $187 million in operating income, a 20% increase over the previous record quarter; adjusted free cash flow was $124.8 million.
  • SAO segment achieved a record operating margin of 35.6% (up from 33.1% in the prior quarter and 29.1% a year ago), supported by productivity gains and favorable product mix.
  • Total sales (excluding surcharge) grew 10% year-over-year and 11% sequentially, reflecting strong demand and pricing.
  • Aerospace and Defense sales rose 13% sequentially and 17% year-over-year, backed by rising OEM build rates and urgent customer demand.
  • Medical segment sales declined 9% sequentially and 29% year-over-year, though bookings improved, suggesting potential future recovery.
Full recap
Q2 2026 Jan 29, 2026

Carpenter Technology Corporation achieved record operating income of $155 million in Q2 FY2026, driven by strong demand in aerospace and defense markets and expanding operating margins.

Key takeaways
  • Operating income increased by 31% year-over-year, marking a record high.
  • Adjusted operating margin improved to 33.1%, a significant rise from 28.3% a year ago.
  • Aerospace and defense bookings rose 8% sequentially, with notable growth in commercial aerospace orders of 23%.
  • Three long-term agreements were secured with aerospace customers, reflecting robust pricing power.
  • Sales in the aerospace and defense sector were the second-best on record, despite a minor sequential decline.
Full recap