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

Carpenter Technology (NYSE:CRS) announced 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 company had revenue of $679.70 million for the quarter, compared to analyst estimates of $863.33 million. During the same quarter last year, the business earned $2.21 EPS. Carpenter Technology’s revenue for the quarter 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 Stock Up 3.6%

NYSE CRS traded up $17.99 on Friday, hitting $521.70. 396,899 shares of the stock traded hands, compared to its average volume of 778,258. The company has a current ratio of 3.73, a quick ratio of 2.08 and a debt-to-equity ratio of 0.33. The stock has a 50-day moving average of $551.23 and a 200 day moving average of $446.32. Carpenter Technology has a twelve month low of $228.00 and a twelve month high of $625.98. The company has a market capitalization of $25.92 billion, a P/E ratio of 54.90, a price-to-earnings-growth ratio of 1.49 and a beta of 1.22.

Key Carpenter Technology News

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

• Positive Sentiment: Carpenter Technology reported fiscal fourth-quarter earnings of $3.23 per share, above the $3.09 consensus estimate and up from $2.21 a year earlier. The company also reported 12.6% year-over-year revenue growth, supporting investor confidence in profitability and operating execution. Carpenter Technology Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management entered fiscal 2027 with record profitability, rising aerospace demand and an ambitious target of $1.2 billion to $1.3 billion in operating income by fiscal 2029. The growth outlook and aerospace exposure are key catalysts for the stock’s advance. CRS Q4 Earnings Call Highlights Strong Growth Outlook
• Positive Sentiment: BTIG Research raised its price target from $450 to $620 and upgraded its rating to “buy,” implying substantial potential upside based on the company’s earnings momentum and long-term growth prospects. BTIG Research price-target update
• Positive Sentiment: Susquehanna maintained a “positive” rating despite lowering its price target from $680 to $600, indicating analysts still see upside after the stock’s significant appreciation. Susquehanna price-target update
• Negative Sentiment: Quarterly revenue of $679.7 million fell well short of the $863.3 million consensus estimate. Although revenue grew year over year, the large miss may raise questions about demand timing, product mix or the pace of future growth.

Insiders Place Their Bets

In related news, VP Marshall D. Akins sold 11,815 shares of the business’s stock in a transaction dated Tuesday, May 5th. The shares were 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 of the company’s stock, valued at $8,096,307.84. This represents a 39.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Anastasios John Hart sold 750 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $423.86, for a total value of $317,895.00. Following the transaction, the director directly 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 SEC filing for this sale provides additional information. Insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On Carpenter Technology

Several institutional investors have recently bought and sold shares of CRS. TOMS Capital Investment Management LP acquired a new stake in shares of Carpenter Technology in the 2nd quarter worth approximately $106,683,000. Invesco Ltd. boosted its stake in Carpenter Technology by 18.8% during the 4th quarter. Invesco Ltd. now owns 2,071,657 shares of the basic materials company’s stock valued at $652,241,000 after purchasing an additional 327,302 shares in the last quarter. Qube Research & Technologies Ltd increased its position in shares of 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 valued at $151,731,000 after purchasing an additional 325,919 shares during the period. Raymond James Financial Inc. boosted its stake in Carpenter Technology by 244.3% during the second quarter. Raymond James Financial Inc. now owns 411,277 shares of the basic materials company’s stock valued at $113,669,000 after buying an additional 291,829 shares in the last quarter. Finally, SurgoCap Partners LP grew its holdings in Carpenter Technology by 29.5% during the third quarter. SurgoCap Partners LP now owns 1,198,895 shares of the basic materials company’s stock worth $294,377,000 after acquiring an additional 272,896 shares during the period. Institutional investors and hedge funds own 92.03% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on CRS. Weiss Ratings lowered Carpenter Technology from a “buy (b+)” rating to a “buy (b)” rating in a research note on Wednesday, June 3rd. Zacks Research upgraded shares of Carpenter Technology from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 15th. Wells Fargo & Company raised their target price on Carpenter Technology from $400.00 to $425.00 and gave the company an “equal weight” rating in a research note on Monday, May 4th. JPMorgan Chase & Co. boosted their price target on Carpenter Technology from $470.00 to $705.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. Finally, KeyCorp lifted their price objective on Carpenter Technology from $459.00 to $644.00 and gave the stock an “overweight” rating in a report on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average price target of $568.00.

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.