Carpenter Technology (NYSE:CRS) Releases Earnings Results, Beats Expectations By $0.13 EPS

Carpenter Technology (NYSE:CRS) issued its earnings results on Thursday. The basic materials company reported $2.33 earnings per share for the quarter, beating the consensus estimate of $2.20 by $0.13, Briefing.com reports. Carpenter Technology had a return on equity of 23.63% and a net margin of 14.77%.The company had revenue of $589.10 million during the quarter, compared to analysts’ expectations of $733.76 million. During the same period in the prior year, the business posted $1.66 EPS. Carpenter Technology’s quarterly revenue 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

Shares of NYSE CRS opened at $317.46 on Friday. Carpenter Technology has a 1 year low of $138.61 and a 1 year high of $355.00. The stock has a market capitalization of $15.82 billion, a P/E ratio of 36.87, a P/E/G ratio of 1.30 and a beta of 1.29. The company’s 50-day moving average is $324.60 and its 200 day moving average is $286.79. The company has a debt-to-equity ratio of 0.35, a current ratio of 4.25 and a quick ratio of 2.37.

Carpenter Technology Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 5th. Investors of record on Tuesday, January 27th will be given a dividend of $0.20 per share. The ex-dividend date is Tuesday, January 27th. This represents a $0.80 annualized dividend and a dividend yield of 0.3%. Carpenter Technology’s payout ratio is currently 9.78%.

Insider Activity at Carpenter Technology

In other Carpenter Technology news, VP Elizabeth A. Socci sold 3,900 shares of the company’s stock in a transaction that occurred on Wednesday, November 26th. The stock was sold at an average price of $321.25, for a total transaction of $1,252,875.00. Following the transaction, the vice president owned 9,594 shares in the company, valued at approximately $3,082,072.50. This represents a 28.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Brian J. Malloy sold 4,130 shares of the stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $303.52, for a total value of $1,253,537.60. Following the completion of the transaction, the chief operating officer directly owned 78,875 shares of the company’s stock, valued at $23,940,140. This represents a 4.98% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 79,358 shares of company stock worth $24,254,008. Insiders own 2.90% of the company’s stock.

Institutional Trading of Carpenter Technology

A number of hedge funds have recently modified their holdings of CRS. Geneos Wealth Management Inc. bought a new position in shares of Carpenter Technology in the 2nd quarter worth about $28,000. Headlands Technologies LLC purchased a new stake in Carpenter Technology in the second quarter worth about $43,000. Rakuten Securities Inc. bought a new position in shares of Carpenter Technology during the second quarter valued at approximately $45,000. Sunbelt Securities Inc. bought a new position in shares of Carpenter Technology during the third quarter valued at approximately $48,000. Finally, GeoWealth Management LLC purchased a new stake in shares of Carpenter Technology in the 3rd quarter worth approximately $49,000. Institutional investors own 92.03% of the company’s stock.

Carpenter Technology News Summary

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

• Positive Sentiment: JPMorgan raised its price target to $394 and kept an “overweight” rating, implying roughly ~24% upside from the referenced price — a clear institutional endorsement that can support further buying interest. Article Title
• Positive Sentiment: BTIG bumped its target to $375 and reiterated a “buy” rating (≈18% upside), adding another analyst upward revision that helps validate management’s message on margins and demand. Article Title
• Positive Sentiment: Q2 results: EPS of $2.33 beat consensus ($2.20) and management raised full‑year guidance; operating income hit a record for the quarter — positive for margin expansion and near-term profitability. Article Title
• Positive Sentiment: Company reported accelerating aerospace & defense bookings and completed negotiations for several long‑term aerospace agreements — supports revenue visibility and higher-value contract mix. Article Title
• Neutral Sentiment: Analyst and news coverage (Zacks, Seeking Alpha, Benzinga) provide transcripts, call highlights and metric breakdowns for investors digging into guidance, ROE and margin drivers. Useful for assessing whether beats are sustainable. Article Title
• Negative Sentiment: Revenue came in at $589.1M versus a consensus near $733.8M — a sizeable miss (even as EPS beat), which may temper expectations about top‑line strength and could limit multiple expansion if recurring. Article Title

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. Weiss Ratings reissued a “buy (b)” rating on shares of Carpenter Technology in a research note on Tuesday. Jones Trading initiated coverage on shares of Carpenter Technology in a research report on Wednesday, October 22nd. They set a “buy” rating and a $400.00 price target for the company. TD Cowen restated a “buy” rating on shares of Carpenter Technology in a research report on Friday, November 14th. Wall Street Zen raised shares of Carpenter Technology from a “hold” rating to a “buy” rating in a research note on Saturday. Finally, BTIG Research increased their target price on shares of Carpenter Technology from $365.00 to $375.00 and gave the stock a “buy” rating in a report on Friday. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $373.43.

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.