Carpenter Technology (NYSE:CRS) Announces Quarterly Earnings Results, Beats Estimates By $0.13 EPS

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 the consensus estimate of $2.20 by $0.13, Briefing.com reports. Carpenter Technology had a return on equity of 22.68% and a net margin of 14.30%.The firm had revenue of $728.00 million for the quarter, compared to the consensus estimate of $733.76 million. During the same quarter in the prior year, the business 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 $11.87 during mid-day trading on Thursday, reaching $319.75. The stock had a trading volume of 1,463,248 shares, compared to its average volume of 870,669. Carpenter Technology has a one year low of $138.61 and a one year high of $355.00. The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.37 and a current ratio of 4.44. The firm has a 50 day moving average price of $324.36 and a two-hundred day moving average price of $286.35. The stock has a market capitalization of $15.93 billion, a P/E ratio of 39.20, a P/E/G ratio of 1.46 and a beta of 1.29.

Carpenter Technology Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 5th. Shareholders of record on Tuesday, January 27th will be issued a $0.20 dividend. The ex-dividend date of this dividend is Tuesday, January 27th. This represents a $0.80 annualized dividend and a dividend yield of 0.3%. Carpenter Technology’s dividend payout ratio (DPR) is presently 9.78%.

Insider Buying and Selling

In related news, COO Brian J. Malloy sold 43,688 shares of Carpenter Technology stock in a transaction that occurred on Wednesday, December 10th. The stock was sold at an average price of $304.45, for a total transaction of $13,300,811.60. Following the sale, the chief operating officer owned 78,875 shares of the company’s stock, valued at approximately $24,013,493.75. This trade represents a 35.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Elizabeth A. Socci sold 3,900 shares of the firm’s stock in a transaction on Wednesday, November 26th. The stock was sold at an average price of $321.25, for a total value of $1,252,875.00. Following the completion of the sale, the vice president owned 9,594 shares of the company’s stock, valued at approximately $3,082,072.50. This represents a 28.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 79,358 shares of company stock valued at $24,254,008. 2.90% of the stock is currently owned by company insiders.

Institutional Trading of Carpenter Technology

A number of hedge funds and other institutional investors have recently modified their holdings of the business. TOMS Capital Investment Management LP purchased a new position in shares of Carpenter Technology in the 2nd quarter valued at about $106,683,000. Qube Research & Technologies Ltd grew its stake in Carpenter Technology by 111.6% during the 3rd quarter. Qube Research & Technologies Ltd now owns 617,948 shares of the basic materials company’s stock worth $151,731,000 after buying an additional 325,919 shares during the last quarter. Raymond James Financial Inc. raised its position in Carpenter Technology by 244.3% in the 2nd quarter. Raymond James Financial Inc. now owns 411,277 shares of the basic materials company’s stock valued at $113,669,000 after purchasing an additional 291,829 shares during the last quarter. SurgoCap Partners LP raised its stake in Carpenter Technology by 29.5% during the 3rd quarter. SurgoCap Partners LP now owns 1,198,895 shares of the basic materials company’s stock valued at $294,377,000 after acquiring an additional 272,896 shares during the last quarter. Finally, Man Group plc grew its position in Carpenter Technology by 1,285.3% in the 3rd quarter. Man Group plc now owns 216,234 shares of the basic materials company’s stock valued at $53,094,000 after buying an additional 200,625 shares during the last quarter. 92.03% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities analysts recently commented on CRS shares. BTIG Research lifted their price target on Carpenter Technology from $305.00 to $365.00 and gave the stock a “buy” rating in a report on Monday, October 27th. Deutsche Bank Aktiengesellschaft set a $425.00 target price on Carpenter Technology and gave the stock a “buy” rating in a report on Friday, October 24th. KeyCorp raised Carpenter Technology from a “sector weight” rating to an “overweight” rating and set a $380.00 price target for the company in a report on Thursday, November 13th. TD Cowen reiterated a “buy” rating on shares of Carpenter Technology in a report on Friday, November 14th. Finally, Jones Trading assumed coverage on shares of Carpenter Technology in a research note on Wednesday, October 22nd. They issued a “buy” rating and a $400.00 price target on the stock. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Carpenter Technology has an average rating of “Moderate Buy” and an average price target of $371.14.

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.