10-K · August 12, 2026
Carpenter Technology delivered record fiscal 2026 results, with revenue up 9% to $3.12 billion, diluted EPS up to $10.52, operating margin expanding to 22.5%, and adjusted free cash flow reaching $362.3 million. Growth…
Earnings analysis · 10-Q
CRS earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Carpenter delivered a strong quarter, with revenue of $798.2 million, diluted EPS of $3.25 and operating income of $196.4 million, up 28% year over year. SAO and aerospace demand drove broad margin expansion, although…
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Carpenter delivered a strong quarter, with revenue of $798.2 million, diluted EPS of $3.25 and operating income of $196.4 million, up 28% year over year. SAO and aerospace demand drove broad margin expansion, although PEP contracted and Medical and Energy sales declined 12% and 15%, respectively. Cash generation was weaker on a free-cash-flow basis because of a $77.7 million capex program and a $61.6 million inventory investment, but liquidity remained robust at $658.6 million. Management provided no explicit revenue or EPS guidance, while projecting fiscal 2027 capex of $355.0 million to $375.0 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.25
What stood out
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Record earnings despite sequential revenue decline
Revenue was $798.2 million, up 9% from $733.7 million a year earlier but down from $851 million in the immediately prior quarter. Diluted EPS was $3.25 versus $2.43 year over year and $3.21 in the prior quarter.
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Margins continued to expand
Gross margin expanded to 32.1% from 29.5% year over year and 31.6% in the prior quarter. Operating margin increased to 24.6% from 20.9% year over year and 24.3% in the prior quarter.
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SAO delivered strong operating leverage
SAO revenue increased 11% to $730.4 million, while operating income rose to $216.3 million from $170.7 million and operating margin increased to 29.6% from 25.9%. Management cited productivity improvements, mix management and pricing actions.
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Aerospace demand led growth
Aerospace and Defense sales increased 14% to $534.6 million, including a 10% increase excluding surcharge revenue. Industrial and Consumer sales rose 11% to $102.7 million, supported by semiconductor and fluid-control demand.
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Liquidity remains substantial
Operating cash flow increased to $52.8 million from $39.2 million year over year. Liquidity was $658.6 million, consisting of $159.5 million of cash and $499.1 million of available credit capacity; management targets minimum liquidity of $150.0 million.
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Significant shareholder returns
The company repurchased 241,924 shares for $133.9 million and paid $9.9 million in dividends during the quarter. A further $985.0 million remained available under the $1.0 billion repurchase authorization at September 30, 2026.
What to watch
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Brownfield spending is pressuring cash flow
Free cash flow was negative $24.8 million versus negative $3.4 million a year earlier, as capital expenditures rose to $77.7 million from $42.6 million. Management expects fiscal 2027 capital expenditures of $355.0 million to $375.0 million for the brownfield expansion and other projects.
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Inventory build and firm-price exposure
Inventory consumed $61.6 million of cash in the quarter versus generating $15.6 million a year earlier, partially offsetting higher earnings and operating cash flow. Approximately 43% of net sales were under firm-price arrangements, exposing margins to raw-material and customer-volume risks.
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PEP deterioration and medical weakness
PEP revenue declined 3% to $91.1 million and operating income fell to $7.3 million from $9.4 million, with operating margin declining to 8.0% from 10.0%. Medical weakness, including lower Titanium sales, was only partly offset by improving Additive profitability.
Management's outlook
No explicit revenue or EPS guidance was provided. Management expects fiscal 2027 capital expenditures, including the brownfield expansion, to be $355.0 million to $375.0 million and expects $16.9 million of additional domestic qualified pension contributions during the remainder of fiscal 2027.
Earlier filings 4
10-Q · April 29, 2026
Carpenter Technology Corp reported strong Q3 results with revenues of $811.5 million, a 12% increase year-over-year. Diluted EPS rose to $2.77, reflecting a 47% increase compared to the prior year, driven by…
10-K · August 12, 2025
Carpenter reported a strong FY2025 with net sales of $2,877.1 million, gross profit of $768.6 million and diluted EPS of $7.42, driven by margin expansion and higher operating income of $521.8 million. Free cash flow…
10-Q · April 24, 2025
Carpenter Technology reported a strong quarter: revenue of $727.0 million (up 6% YoY) and GAAP net income of $95.4 million, or $1.88 per diluted share, driven by higher prices, improved product mix and productivity.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.