Carpenter Technology (NYSE:CRS) Announces Earnings Results

Carpenter Technology (NYSE:CRS) issued its quarterly earnings results on Thursday. The basic materials company reported $3.23 earnings per share for the quarter, beating 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 during the quarter, compared to the consensus estimate of $863.33 million. During the same period in the prior year, the firm earned $2.21 EPS. The business’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

Shares of NYSE:CRS traded down $28.82 during midday trading on Thursday, reaching $501.80. 1,840,175 shares of the company’s stock were exchanged, compared to its average volume of 613,999. The company’s 50 day simple moving average is $549.95 and its two-hundred day simple moving average is $445.10. The firm has a market capitalization of $24.93 billion, a PE ratio of 54.48, a price-to-earnings-growth ratio of 1.49 and a beta of 1.22. Carpenter Technology has a 12 month low of $228.00 and a 12 month high of $625.98. The company has a debt-to-equity ratio of 0.33, a quick ratio of 2.08 and a current ratio of 3.73.

Analyst Ratings Changes

Several research firms recently weighed in on CRS. Susquehanna increased their target price on shares of Carpenter Technology from $495.00 to $680.00 and gave the company a “positive” rating in a research note on Thursday, July 9th. JPMorgan Chase & Co. boosted their price target on Carpenter Technology from $470.00 to $705.00 and gave the company an “overweight” rating in a research note on Tuesday, July 14th. Wells Fargo & Company upped their price target on Carpenter Technology from $400.00 to $425.00 and gave the company an “equal weight” rating in a report on Monday, May 4th. BTIG Research raised their price objective on Carpenter Technology from $375.00 to $450.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Finally, Zacks Research raised Carpenter Technology from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $556.75.

Insider Activity at Carpenter Technology

In other Carpenter Technology news, VP Marshall D. Akins sold 11,815 shares of the stock in a transaction on 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 transaction, the vice president directly owned 18,344 shares in the company, valued at $8,096,307.84. This represents a 39.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Anastasios John Hart sold 750 shares of Carpenter Technology stock in a transaction that occurred on Monday, May 4th. The shares were 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 position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 2.90% of the company’s stock.

Institutional Trading of Carpenter Technology

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

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.