Carpenter Technology (NYSE:CRS) Releases Earnings Results, Beats Expectations By $0.14 EPS

Carpenter Technology (NYSE:CRS) issued its earnings results on Thursday. The basic materials company reported $3.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.09 by $0.14, Briefing.com reports. Carpenter Technology had a net margin of 15.82% and a return on equity of 25.02%. The firm had revenue of $679.70 million for the quarter, compared to analysts’ expectations of $863.33 million. During the same quarter last year, the company posted $2.21 earnings per share. Carpenter Technology’s revenue was up 12.6% on a year-over-year basis.

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

CRS traded down $28.82 during trading on Thursday, reaching $501.80. The stock had a trading volume of 1,840,175 shares, compared to its average volume of 780,996. Carpenter Technology has a 1-year low of $228.00 and a 1-year high of $625.98. The firm has a market capitalization of $24.93 billion, a price-to-earnings ratio of 52.82, a price-to-earnings-growth ratio of 1.58 and a beta of 1.22. The stock has a 50 day moving average of $549.95 and a two-hundred day moving average of $445.10. The company has a quick ratio of 2.08, a current ratio of 3.73 and a debt-to-equity ratio of 0.33.

Insider Buying and Selling at Carpenter Technology

In related news, Director Anastasios John Hart sold 750 shares of the firm’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $423.86, for a total transaction of $317,895.00. Following the completion of the transaction, the director owned 750 shares of the company’s stock, valued at $317,895. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Marshall D. Akins sold 11,815 shares of the business’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $441.36, for a total transaction of $5,214,668.40. Following the completion of the sale, the vice president owned 18,344 shares in the company, valued at approximately $8,096,307.84. This trade represents a 39.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Carpenter Technology

Several large investors have recently modified their holdings of CRS. Woodline Partners LP purchased a new stake in shares of Carpenter Technology during the first quarter valued at $4,050,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Carpenter Technology by 1.7% in 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 worth $18,985,000 after acquiring an additional 1,701 shares in 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 during the period. Quantbot Technologies LP purchased a new stake in shares of Carpenter Technology in the 2nd quarter valued at approximately $80,000. Finally, Arrowstreet Capital Limited Partnership acquired a new position in Carpenter Technology in the 2nd quarter worth approximately $533,000. 92.03% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $500.00 price target on shares of Carpenter Technology in a report on Thursday, April 30th. Susquehanna upped their price target on shares of Carpenter Technology from $495.00 to $680.00 and gave the stock a “positive” rating in a research report on Thursday, July 9th. BTIG Research lifted their price objective on shares of Carpenter Technology from $375.00 to $450.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. TD Cowen upped their target price on shares of Carpenter Technology from $470.00 to $650.00 and gave the stock a “buy” rating in a research report on Monday, July 13th. Finally, Zacks Research raised Carpenter Technology from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Buy” and an average target price of $556.75.

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.