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

Carpenter Technology (NYSE:CRS) issued its quarterly earnings results on Thursday. The basic materials company reported $2.33 EPS for the quarter, topping the consensus estimate of $2.20 by $0.13, Briefing.com reports. The firm had revenue of $589.10 million for the quarter, compared to analysts’ expectations of $733.76 million. Carpenter Technology had a net margin of 14.30% and a return on equity of 22.68%. Carpenter Technology’s revenue for the quarter was up 7.5% compared to the same quarter last year. During the same period in the previous year, the business earned $1.66 earnings per share.

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 Trading Down 6.5%

Carpenter Technology stock opened at $310.10 on Friday. Carpenter Technology has a one year low of $138.61 and a one year high of $355.00. The company’s fifty day moving average price is $324.43 and its two-hundred day moving average price is $286.52. The company has a debt-to-equity ratio of 0.36, a current ratio of 4.44 and a quick ratio of 2.37. The company has a market capitalization of $15.45 billion, a price-to-earnings ratio of 37.91, a PEG ratio of 1.39 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. Stockholders of record on Tuesday, January 27th will be issued a dividend of $0.20 per share. The ex-dividend date is Tuesday, January 27th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 0.3%. Carpenter Technology’s dividend payout ratio (DPR) is currently 9.78%.

Insider Buying and Selling

In related news, COO Brian J. Malloy sold 43,688 shares of the company’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $304.45, for a total transaction of $13,300,811.60. Following the completion of the transaction, the chief operating officer directly owned 78,875 shares in the company, valued at $24,013,493.75. This represents a 35.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Elizabeth A. Socci sold 3,900 shares of the company’s stock in a transaction dated Wednesday, November 26th. The shares were sold at an average price of $321.25, for a total transaction of $1,252,875.00. Following the transaction, the vice president directly owned 9,594 shares of the company’s stock, valued at $3,082,072.50. This represents a 28.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 79,358 shares of company stock worth $24,254,008 over the last three months. 2.90% of the stock is owned by company insiders.

Institutional Trading of Carpenter Technology

Institutional investors and hedge funds have recently modified their holdings of the company. Geneos Wealth Management Inc. acquired a new stake in Carpenter Technology during the second quarter worth $28,000. Headlands Technologies LLC bought a new position in shares of Carpenter Technology during the 2nd quarter worth about $43,000. Rakuten Securities Inc. acquired a new stake in shares of Carpenter Technology during the 2nd quarter valued at about $45,000. Sunbelt Securities Inc. acquired a new stake in shares of Carpenter Technology during the 3rd quarter valued at about $48,000. Finally, GeoWealth Management LLC bought a new stake in Carpenter Technology in the third quarter valued at about $49,000. 92.03% of the stock is currently owned by institutional investors.

Trending Headlines about Carpenter Technology

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

• Positive Sentiment: Record operating income and margin expansion — Carpenter reported record quarterly operating income ($155.2M) and said Specialty Alloys exceeded operating income guidance; management raised full‑year operating income guidance. Carpenter Technology Reports Second Quarter Fiscal Year 2026 Results
• Positive Sentiment: EPS beat driven by margins — EPS came in above expectations ($2.33 reported vs. ~$2.20 consensus), reflecting improved margins and stronger profitability even with mixed revenue. Carpenter Technology (CRS) Beats Q2 Earnings Estimates
• Positive Sentiment: Large aerospace/defense agreements and accelerating bookings — management highlighted higher sequential aerospace bookings and completion of several long‑term aerospace agreements that should provide multi‑year revenue visibility. Carpenter Books Big Agreements
• Neutral Sentiment: Earnings call/transcripts and slide deck available for details — management commentary and the full call transcript/slides provide context on margin drivers, bookings cadence and guidance assumptions. Active transcript coverage is posted. Carpenter Technology Corporation (CRS) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Revenue missed consensus by a wide margin — reported revenue ($589.1M) was well below the consensus (~$733.8M), a sizable top‑line miss that concerns investors about demand or one‑time timing issues even though margins improved. Carpenter Technology Q2 Results and Materials
• Negative Sentiment: High valuation raises sensitivity to execution — CRS trades at a premium multiple (PE near the upper 30s), so a meaningful revenue miss or any guidance uncertainty is likely to trigger sharper downside in the share price as investors re‑price growth expectations.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. JPMorgan Chase & Co. upped their price target on shares of Carpenter Technology from $305.00 to $388.00 and gave the company an “overweight” rating in a research report on Wednesday, October 29th. BTIG Research boosted their target price on shares of Carpenter Technology from $365.00 to $375.00 and gave the company a “buy” rating in a research note on Friday. TD Cowen restated a “buy” rating on shares of Carpenter Technology in a report on Friday, November 14th. KeyCorp raised Carpenter Technology from a “sector weight” rating to an “overweight” rating and set a $380.00 target price for the company in a research report on Thursday, November 13th. Finally, Deutsche Bank Aktiengesellschaft set a $425.00 price target on Carpenter Technology and gave the company a “buy” rating in a report on Friday, October 24th. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $372.57.

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.