Carpenter Technology (NYSE:CRS) Issues Quarterly Earnings Results

Carpenter Technology (NYSE:CRS) posted its quarterly earnings data on Thursday. The basic materials company reported $3.23 EPS 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 during the quarter, compared to the consensus estimate of $863.33 million. During the same quarter in the prior year, the company posted $2.21 EPS. The company’s quarterly revenue was up 12.6% compared to the same quarter last year.

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 Down 5.4%

Shares of NYSE CRS traded down $28.82 during trading on Thursday, reaching $501.80. 1,840,175 shares of the stock were exchanged, compared to its average volume of 780,996. The company has a market capitalization of $24.93 billion, a price-to-earnings ratio of 52.82, a price-to-earnings-growth ratio of 1.58 and a beta of 1.22. The business’s 50-day moving average price is $549.95 and its 200 day moving average price is $445.10. The company has a quick ratio of 2.08, a current ratio of 3.73 and a debt-to-equity ratio of 0.33. Carpenter Technology has a twelve month low of $228.00 and a twelve month high of $625.98.

Insiders Place Their Bets

In related news, Director Anastasios John Hart sold 750 shares of the business’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $423.86, for a total value of $317,895.00. Following the transaction, the director owned 750 shares in the company, valued at approximately $317,895. The trade was a 50.00% 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, VP Marshall D. Akins sold 11,815 shares of the firm’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $441.36, for a total value of $5,214,668.40. Following the sale, the vice president owned 18,344 shares of the company’s stock, valued at approximately $8,096,307.84. This trade represents a 39.18% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 2.90% of the company’s stock.

Institutional Trading of Carpenter Technology

A number of hedge funds have recently made changes to their positions in the stock. Meeder Advisory Services Inc. boosted its stake in Carpenter Technology by 3.7% during the 4th quarter. Meeder Advisory Services Inc. now owns 889 shares of the basic materials company’s stock valued at $280,000 after acquiring an additional 32 shares during the last quarter. Abel Hall LLC lifted its position in shares of Carpenter Technology by 3.2% during the fourth quarter. Abel Hall LLC now owns 1,019 shares of the basic materials company’s stock worth $321,000 after purchasing an additional 32 shares during the last quarter. Vontobel Holding Ltd. grew its stake in Carpenter Technology by 1.9% in the fourth quarter. Vontobel Holding Ltd. now owns 2,457 shares of the basic materials company’s stock worth $774,000 after purchasing an additional 46 shares in the last quarter. Lazard Asset Management LLC increased its holdings in Carpenter Technology by 7.7% in the second quarter. Lazard Asset Management LLC now owns 857 shares of the basic materials company’s stock valued at $236,000 after buying an additional 61 shares during the last quarter. Finally, ARK Investment Management LLC raised its stake in Carpenter Technology by 26.1% during the fourth quarter. ARK Investment Management LLC now owns 304 shares of the basic materials company’s stock valued at $96,000 after buying an additional 63 shares in the last quarter. Institutional investors and hedge funds own 92.03% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on CRS. Susquehanna lifted their price target on shares of Carpenter Technology from $495.00 to $680.00 and gave the company a “positive” rating in a report on Thursday, July 9th. TD Cowen boosted their price target on Carpenter Technology from $470.00 to $650.00 and gave the company a “buy” rating in a research report on Monday, July 13th. Weiss Ratings downgraded Carpenter Technology from a “buy (b+)” rating to a “buy (b)” rating in a report on Wednesday, June 3rd. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $500.00 target price on shares of Carpenter Technology in a report on Thursday, April 30th. Finally, Wells Fargo & Company raised their price target on shares of Carpenter Technology from $400.00 to $425.00 and gave the company an “equal weight” rating in a report on Monday, May 4th. One 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’s stock. According to data from MarketBeat.com, Carpenter Technology has an average rating of “Buy” and a consensus target price of $556.75.

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.