Carpenter Technology Reports First Quarter Fiscal Year 2026 Results
Carpenter Technology (NYSE: CRS) reported record first-quarter fiscal 2026 results for the quarter ended September 30, 2025. The company generated $153.3 million of operating income (up 31% year-over-year) and $2.43 diluted EPS, with net sales of $733.7 million. The Specialty Alloys Operations segment delivered $170.7 million of operating income and a 32.0% adjusted operating margin, up from 26.3% a year earlier (fifteenth consecutive quarterly margin increase).
Bookings in Aerospace & Defense rose 23% sequentially. Carpenter repurchased $49.1 million of stock and ended the quarter with $556.9 million total liquidity. Fiscal 2026 operating income guidance is $660–700 million (a 26–33% increase vs FY2025) and adjusted free cash flow guidance is $240–280 million net of brownfield spending.
Carpenter Technology (NYSE: CRS) ha riportato risultati record del primo trimestre fiscale 2026 per il trimestre terminato il 30 settembre 2025. L'azienda ha generato $153.3 milioni di utile operativo (in aumento del 31% rispetto all'anno precedente) e $2.43 per azione diluita, con vendite nette di $733.7 milioni. Il segmento Specialty Alloys Operations ha registrato $170.7 milioni di utile operativo e una margine operativo rettificato del 32.0%, in aumento rispetto al 26.3% di un anno fa (quindicesima crescita consecutiva del margine trimestrale).
Gli ordini nel settore Aerospace & Defense sono aumentati del 23% rispetto al trimestre precedente. Carpenter ha riacquistato $49.1 milioni di azioni e ha chiuso il trimestre con una liquidità totale di $556.9 milioni. Le previsioni di utile operativo per l'esercizio 2026 sono $660–700 milioni (un aumento del 26–33% rispetto al FY2025) e la guidance sull'utile operativo libero rettificato è $240–280 milioni netti dopo la spesa brownfield.
Carpenter Technology (NYSE: CRS) reportó resultados récord del primer trimestre fiscal 2026 para el trimestre terminado el 30 de septiembre de 2025. La compañía generó $153.3 millones de ingreso operativo (un 31% más interanual) y $2.43 por acción diluida, con ventas netas de $733.7 millones. La sección de Specialty Alloys Operations entregó $170.7 millones de ingreso operativo y un margen operativo ajustado del 32.0%, frente al 26.3% del año anterior (quinceava mejora consecutiva del margen).
Los pedidos en Aerospace & Defense subieron un 23% secuencialmente. Carpenter recompró $49.1 millones de acciones y cerró el trimestre con una liquidez total de $556.9 millones. Las previsiones de ingreso operativo para FY2026 son $660–700 millones (un aumento del 26–33% frente a FY2025) y la guía de flujo de caja libre ajustado es de $240–280 millones netos de gasto brownfield.
Carpenter Technology (NYSE: CRS)는 2025년 9월 30일에 종료된 분기에 대한 2026 회계연도 1분기 기록적인 실적을 보고했습니다. 회사는 $153.3백만의 영업이익(전년 대비 31% 증가)과 $2.43의 희석 주당순이익, 순매출은 $733.7백만을 기록했습니다. Specialty Alloys Operations 부문은 $170.7백만의 영업이익과 32.0%의 조정된 영업마진을 달성했으며, 이는 전년동기의 26.3%에서 상승한 것으로 분기별 마진이 15번째 연속 증가했습니다.
항공우주 및 방위산업의 주문은 전분기 대비 23% 증가했습니다. Carpenter는 주식을 $49.1백만 재매입했고, 분기 말 총 유동자산은 $556.9백만로 마감했습니다. FY2026의 영업이익 가이던스는 $660–700백만으로, FY2025 대비 26–33% 증가하고, 조정된 자유현금흐름 가이던스는 $240–280백만의 순으로 brownfield 지출을 차감한 금액입니다.
Carpenter Technology (NYSE: CRS) a enregistré des résultats record pour le premier trimestre de l’exercice 2026 pour le trimestre clos le 30 septembre 2025. L'entreprise a généré $153.3 millions de résultat opérationnel (en hausse de 31% d'une année sur l'autre) et $2.43 par action diluée, avec des ventes nettes de $733.7 millions. Le segment Specialty Alloys Operations a livré $170.7 millions de résultat opérationnel et une marge opérationnelle ajustée de 32.0%, en hausse par rapport à 26.3% il y a un an (quinzième amélioration consécutive de la marge trimestrielle).
Les commandes dans Aerospace & Defense ont augmenté de 23% en glissement séquentiel. Carpenter a racheté pour $49.1 millions d’actions et a terminé le trimestre avec une liquidité totale de $556.9 millions. Les prévisions de résultat opérationnel pour l’exercice 2026 sont de $660–700 millions (soit une hausse de 26–33% par rapport à l’exercice 2025) et la guidance de flux de trésorerie libre ajusté est de $240–280 millions nets des dépenses brownfield.
Carpenter Technology (NYSE: CRS) meldete Rekordzahlen im ersten Quartal des Geschäftsjahres 2026 für das Quartal, das am 30. September 2025 endete. Das Unternehmen erzielte $153.3 Millionen operatives Einkommen (Umsatzsteigerung gegenüber dem Vorjahr um 31%) und $2.43 verwässertes Ergebnis je Aktie, bei Nettoverkäufen von $733.7 Millionen. Die Sparte Specialty Alloys Operations lieferte $170.7 Millionen operatives Einkommen und eine angepasste operative Marge von 32.0%, gegenüber 26.3% im Vorjahr (fünfzehnte aufeinanderfolgende Quartalsmargensteigerung).
Aufträge im Aerospace & Defense-Bereich stiegen sequenziell um 23%. Carpenter hat Aktien im Wert von $49.1 Millionen zurückgekauft und beendete das Quartal mit einer Gesamtliquidität von $556.9 Millionen. Die operativen Gewinnprognosen für das Geschäftsjahr 2026 liegen bei $660–700 Millionen (eine Steigerung von 26–33% gegenüber FY2025) und die prognostizierte bereinigte Free-Cash-Flow liegt bei $240–280 Millionen nach Abzug von Brownfield-Ausgaben.
Carpenter Technology (NYSE: CRS) أبلغت عن نتائج قياسية للربع الأول من السنة المالية 2026 للربع المنتهي في 30 سبتمبر 2025. حققت الشركة $153.3 مليون من الدخل التشغيلي (ارتفاع 31% على أساس سنوي) و $2.43 للسهم المخفّف، مع مبيعات صافية بلغت $733.7 مليون. قسم Specialty Alloys Operations حقق $170.7 مليون من الدخل التشغيلي وهوامش تشغيلية معدلة بنسبة 32.0%، مرتفعًا من 26.3% قبل عام واحد (الارتفاع الخامس عشر على التوالي في هامش الربحية الربعي).
الطلبيات في Aerospace & Defense ارتفعت بنسبة 23% مقارنةً بالربع السابق. أعادت Carpenter شراء $49.1 مليون من الأسهم، وانتهى الربع باحتياطي سيولة إجمالي قدره $556.9 مليون. التوجيه للوضع التشغيلي لعام 2026 هو $660–700 مليون (زيادة 26–33% مقارنة بـ FY2025)، وتوجيه التدفقات النقدية الحرة المعدلة هو $240–280 مليون صافية بعد خصم الإنفاق Brownfield.
Carpenter Technology (NYSE: CRS) 报告了截至2025年9月30日的2026财年第一季度创纪录的业绩。公司实现 $153.3 百万美元 的营业利润（同比增长 31%）和 $2.43 的摊薄每股收益，净销售额为 $733.7 百万美元。Specialty Alloys Operations 部门实现了 $170.7 百万美元 的营业利润，调整后营业利润率为 32.0%，高于一年前的 26.3%（连续第十五个季度利润率上升）。
Aerospace & Defense 的订单环比增长 23%。Carpenter 回购了价值 $49.1 百万美元的股票，季度末总流动性为 $556.9 百万美元。2026 财年的营业利润指引为 $660–700 百万美元（较 FY2025 增长 26–33%），调整后自由现金流指引为 $240–280 百万美元净额，扣除 brownfield 投入后净额。
- Operating income +31% year-over-year to $153.3M
- SAO operating income $170.7M
- SAO adjusted operating margin expanded to 32.0% (570 bps increase)
- Aerospace & Defense bookings +23% sequentially
- Fiscal 2026 operating income guidance of $660–700M (+26–33%)
- Executed $49.1M in share repurchases under $400M program
- Adjusted free cash flow negative $3.4M in Q1
- Capital expenditures increased to $42.6M from $26.9M (Q1)
- Adjusted free cash flow outlook reduced by $175–185M brownfield spend
Insights
Strong quarter: record operating income, margin expansion in specialty alloys, and accelerating aerospace bookings underpin a positive near-term outlook.
Carpenter delivered
Key dependencies include sustaining the improved product mix, completing the brownfield capacity expansion with the stated
Delivered Record Quarterly Operating Income
Expanded Operating Margins in Specialty Alloys Operations Segment
Demand Accelerating in Aerospace and Defense End-Use Market with Higher Sequential Bookings
Completed Negotiations for Several Aerospace Long-Term Agreements with Significant Value Realization
PHILADELPHIA, Oct. 23, 2025 (GLOBE NEWSWIRE) -- Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today announced financial results for the fiscal first quarter ended September 30, 2025. For the quarter, the Company reported operating income of
First Quarter Fiscal Year 2026 Highlights
- Delivered
$153.3 million of adjusted operating income, up 31 percent year-over-year and a record quarterly result - Realized earnings per diluted share of
$2.43 in the quarter - Generated
$39.2 million of cash from operating activities - Exceeded expectations in Specialty Alloys Operations (“SAO”) segment with operating income of
$170.7 million, up 27 percent year-over-year - Delivered adjusted operating margin of 32.0 percent in the SAO segment, up from 26.3 percent in the first quarter of the previous year; fifteenth consecutive quarterly margin increase
- Bookings for Aerospace and Defense end-use market up 23 percent sequentially
- Completed negotiations on several long-term agreements with aerospace customers, with significant value realization
- Executed
$49.1 million in share repurchases against$400.0 million repurchase program
Outlook
- For the second quarter of fiscal year 2026, anticipate between
$152 million to$156 million in operating income - Expect fiscal year 2026 operating income to be in the range of
$660 million to$700 million , representing a 26 percent to 33 percent increase over fiscal year 2025, with line of sight to the high end of the range from increased volume, pricing actions and productivity all contributing to higher profitability - Project fiscal year 2026 adjusted free cash flow of
$240 million to$280 million , net of$175 million to$185 million of spending related to the brownfield capacity expansion project - Committed to fiscal year 2027 target of
$765 million to$800 million in operating income with opportunities to exceed - Well-positioned for continued growth beyond fiscal year 2027 with market dynamics continuing to strengthen and additional capacity coming online
“The first quarter of fiscal year 2026 was another earnings record, generating
“Notably, the SAO segment expanded their adjusted operating margin to 32.0 percent, up from 26.3 percent in the first quarter a year ago, representing the fifteenth consecutive quarterly margin increase. As a result, the SAO segment realized
“We saw demand in our Aerospace and Defense end-use market pick up as the supply chain increases activity with the ramping build rates. As a result, we saw bookings for the Aerospace and Defense end-use market accelerate, increasing 23 percent sequentially. We also completed negotiations on several long-term agreements with aerospace customers, realizing significant value. Our ability to secure such high value contracts reflects our strong market position in an improving demand environment.”
“Looking ahead, our fiscal year 2026 operating income outlook represents a 26 percent to 33 percent increase over fiscal year 2025. Further, we have opportunities to realize the high end of the range from increased profitability through higher volume, pricing actions and productivity.”
“In addition, we expect to generate
“Looking over the long term, we expect that the same dynamics that are driving our current performance will only get stronger into the future. The markets that we serve, in particular Aerospace and Defense, Medical and Power Generation, have a strong, multi-year outlook. And we are investing to accelerate our growth with our recently announced brownfield expansion which will add primary and secondary melt capacity. Altogether, we believe Carpenter Technology is well positioned to achieve and exceed our goals and continue to grow over the long-term.”
Financial Highlights
| Q1 | Q4 | Q1 | ||||||||
| ($ in millions, except per share amounts) | FY2026 | FY2025 | FY2025 | |||||||
| Net sales | $ | 733.7 | $ | 755.6 | $ | 717.6 | ||||
| Net sales excluding surcharge (a) | $ | 603.1 | $ | 623.7 | $ | 577.4 | ||||
| Operating income | $ | 153.3 | $ | 151.4 | $ | 113.6 | ||||
| Adjusted operating income excluding special item (a) | $ | 153.3 | $ | 151.4 | $ | 117.2 | ||||
| Net income | $ | 122.5 | $ | 111.7 | $ | 84.8 | ||||
| Earnings per diluted share | $ | 2.43 | $ | 2.21 | $ | 1.67 | ||||
| Adjusted earnings per diluted share (a) | $ | 2.43 | $ | 2.21 | $ | 1.73 | ||||
| Net cash provided from operating activities | $ | 39.2 | $ | 258.0 | $ | 40.2 | ||||
| Adjusted free cash flow (a) | $ | (3.4 | ) | $ | 201.3 | $ | 13.3 | |||
| (a) Non-GAAP financial measures explained in the attached tables | ||||||||||
Net sales for the first quarter of fiscal year 2026 were
Operating income for the first quarter of fiscal year 2026 was
Cash provided from operating activities in the first quarter of fiscal year 2026 was
Under the Company's authorized share repurchase program of up to
Total liquidity, including cash and available revolver balance, was
Conference Call and Webcast Presentation
Carpenter Technology will host a conference call and webcast presentation today, October 23, 2025, at 10:00 a.m. ET, to discuss the financial results of operations for the first quarter of fiscal year 2026. Please dial +1 (646) 307-1963 for access to the live conference call. Access to the live webcast will be available at Carpenter Technology’s website (https://www.carpentertechnology.com), and a replay will soon be made available at https://www.carpentertechnology.com. Presentation materials used during this conference call will be available for viewing and download at https://www.carpentertechnology.com.
Non-GAAP Financial Measures
This press release includes discussions of financial measures that have not been determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). A reconciliation of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with GAAP, accompanied by reasons why the Company believes the non-GAAP measures are important, are included in the attached schedules.
About Carpenter Technology
Carpenter Technology Corporation is a recognized leader in high-performance specialty alloy materials and process solutions for critical applications in the aerospace and defense, medical, and other markets. Founded in 1889, Carpenter Technology has evolved to become a pioneer in premium specialty alloys including nickel, cobalt, and titanium and material process capabilities that solve our customers' current and future material challenges. More information about Carpenter Technology can be found at https://www.carpentertechnology.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected, anticipated or implied. The most significant of these uncertainties are described in Carpenter Technology's filings with the Securities and Exchange Commission, including its report on Form 10-K for the fiscal year ended June 30, 2025, and the exhibits attached to that filing. They include but are not limited to: (1) the cyclical nature of the specialty materials business and certain end-use markets, including aerospace, defense, medical, energy, transportation, industrial and consumer, or other influences on Carpenter Technology's business such as new competitors, the consolidation of competitors, customers, and suppliers or the transfer of manufacturing capacity from the United States to foreign countries; (2) the ability of Carpenter Technology to achieve cash generation, growth, earnings, profitability, operating income, cost savings and reductions, qualifications, productivity improvements or process changes; (3) the ability to recoup increases in the cost of energy, raw materials, freight or other factors; (4) domestic and foreign excess manufacturing capacity for certain metals; (5) fluctuations in currency exchange and interest rates; (6) the effect of government trade actions, including tariffs; (7) the valuation of the assets and liabilities in Carpenter Technology's pension trusts and the accounting for pension plans; (8) possible labor disputes or work stoppages; (9) the potential that our customers may substitute alternate materials or adopt different manufacturing practices that replace or limit the suitability of our products; (10) the ability to successfully acquire and integrate acquisitions; (11) the availability of credit facilities to Carpenter Technology, its customers or other members of the supply chain; (12) the ability to obtain energy or raw materials, especially from suppliers located in countries that may be subject to unstable political or economic conditions; (13) Carpenter Technology's manufacturing processes are dependent upon highly specialized equipment located primarily in facilities in Reading and Latrobe, Pennsylvania and Athens, Alabama for which there may be limited alternatives if there are significant equipment failures or a catastrophic event; (14) the ability to hire and retain a qualified workforce and key personnel, including members of the executive management team, management, metallurgists and other skilled personnel; (15) fluctuations in oil and gas prices and production; (16) the impact of potential cyber attacks and information technology or data security breaches; (17) the ability of suppliers to meet obligations due to supply chain disruptions or otherwise; (18) the ability to meet increased demand, production targets or commitments; (19) the ability to manage the impacts of natural disasters, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments; (20) geopolitical, economic, and regulatory risks relating to our global business, including geopolitical and diplomatic tensions, instabilities and conflicts, such as the war in Ukraine, the war between Israel and HAMAS, the war between Israel and Hezbollah, Houthi attacks on commercial shipping vessels and other naval vessels as well as compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; (21) challenges affecting the commercial aviation industry or key participants including, but not limited to production and other challenges at The Boeing Company; (22) the impact of a continued shutdown of the U.S. government; and (23) the consequences of the announcement, maintenance or use of Carpenter Technology’s share repurchase program. Any of these factors could have an adverse and/or fluctuating effect on Carpenter Technology's results of operations. The forward-looking statements in this document are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this press release or as of the dates otherwise indicated in such forward-looking statements. Carpenter Technology undertakes no obligation to update or revise any forward-looking statements.
| PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (Unaudited) | |||||||
| Three Months Ended | |||||||
| September 30, | |||||||
| 2025 | 2024 | ||||||
| NET SALES | $ | 733.7 | $ | 717.6 | |||
| Cost of sales | 517.3 | 541.3 | |||||
| Gross profit | 216.4 | 176.3 | |||||
| Selling, general and administrative expenses | 63.1 | 59.1 | |||||
| Restructuring and asset impairment charges | — | 3.6 | |||||
| Operating income | 153.3 | 113.6 | |||||
| Interest expense, net | 11.5 | 12.4 | |||||
| Other (income) expense, net | (3.0 | ) | 0.1 | ||||
| Income before income taxes | 144.8 | 101.1 | |||||
| Income tax expense | 22.3 | 16.3 | |||||
| NET INCOME | $ | 122.5 | $ | 84.8 | |||
| EARNINGS PER COMMON SHARE: | |||||||
| Basic | $ | 2.45 | $ | 1.69 | |||
| Diluted | $ | 2.43 | $ | 1.67 | |||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||
| Basic | 50.1 | 50.1 | |||||
| Diluted | 50.4 | 50.7 | |||||
| Cash dividends per common share | $ | 0.20 | $ | 0.20 | |||
| PRELIMINARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| September 30, | ||||||||
| 2025 | 2024 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 122.5 | $ | 84.8 | ||||
| Adjustments to reconcile net income to net cash provided from operating activities: | ||||||||
| Depreciation and amortization | 36.0 | 33.8 | ||||||
| Noncash restructuring and asset impairment charges | — | 2.5 | ||||||
| Deferred income taxes | 5.8 | (3.5 | ) | |||||
| Net pension expense | 3.6 | 6.2 | ||||||
| Share-based compensation expense | 5.6 | 4.7 | ||||||
| Net loss on disposals of property, plant and equipment | 0.3 | 0.2 | ||||||
| Changes in working capital and other: | ||||||||
| Accounts receivable | (36.2 | ) | (3.4 | ) | ||||
| Inventories | 15.6 | (16.8 | ) | |||||
| Other current assets | 7.7 | 2.6 | ||||||
| Accounts payable | (27.0 | ) | 9.1 | |||||
| Accrued liabilities | (85.9 | ) | (68.5 | ) | ||||
| Pension plan contributions | (5.9 | ) | (9.6 | ) | ||||
| Other postretirement plan contributions | (0.9 | ) | (1.0 | ) | ||||
| Other, net | (2.0 | ) | (0.9 | ) | ||||
| Net cash provided from operating activities | 39.2 | 40.2 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Purchases of property, plant, equipment and software | (42.6 | ) | (26.9 | ) | ||||
| Net cash used for investing activities | (42.6 | ) | (26.9 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Dividends paid | (10.1 | ) | (10.1 | ) | ||||
| Purchases of treasury stock | (49.1 | ) | (32.1 | ) | ||||
| Proceeds from stock options exercised | 0.5 | 3.7 | ||||||
| Withholding tax payments on share-based compensation awards | (45.5 | ) | (22.5 | ) | ||||
| Net cash used for financing activities | (104.2 | ) | (61.0 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 0.1 | (1.2 | ) | |||||
| DECREASE IN CASH AND CASH EQUIVALENTS | (107.5 | ) | (48.9 | ) | ||||
| Cash and cash equivalents at beginning of year | 315.5 | 199.1 | ||||||
| Cash and cash equivalents at end of period | $ | 208.0 | $ | 150.2 | ||||
| PRELIMINARY CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) | ||||||||
| September 30, | June 30, | |||||||
| 2025 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 208.0 | $ | 315.5 | ||||
| Accounts receivable, net | 613.6 | 575.5 | ||||||
| Inventories | 778.5 | 793.8 | ||||||
| Other current assets | 72.1 | 79.9 | ||||||
| Total current assets | 1,672.2 | 1,764.7 | ||||||
| Property, plant, equipment and software, net | 1,372.9 | 1,359.4 | ||||||
| Goodwill | 227.3 | 227.3 | ||||||
| Other intangibles, net | 8.1 | 9.5 | ||||||
| Deferred income taxes | 8.0 | 7.8 | ||||||
| Other assets | 113.7 | 118.1 | ||||||
| Total assets | $ | 3,402.2 | $ | 3,486.8 | ||||
| LIABILITIES | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 246.3 | $ | 267.4 | ||||
| Accrued liabilities | 130.6 | 216.3 | ||||||
| Total current liabilities | 376.9 | 483.7 | ||||||
| Long-term debt | 695.7 | 695.4 | ||||||
| Accrued pension liabilities | 142.7 | 146.9 | ||||||
| Accrued postretirement benefits | 12.1 | 12.5 | ||||||
| Deferred income taxes | 169.0 | 162.8 | ||||||
| Other liabilities | 94.6 | 98.5 | ||||||
| Total liabilities | 1,491.0 | 1,599.8 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock | 286.2 | 286.2 | ||||||
| Capital in excess of par value | 338.7 | 354.3 | ||||||
| Reinvested earnings | 1,822.6 | 1,710.2 | ||||||
| Common stock in treasury, at cost | (468.6 | ) | (395.8 | ) | ||||
| Accumulated other comprehensive loss | (67.7 | ) | (67.9 | ) | ||||
| Total stockholders' equity | 1,911.2 | 1,887.0 | ||||||
| Total liabilities and stockholders' equity | $ | 3,402.2 | $ | 3,486.8 | ||||
| PRELIMINARY SEGMENT FINANCIAL DATA (in millions, except pounds sold) (Unaudited) | |||||||
| Three Months Ended | |||||||
| September 30, | |||||||
| 2025 | 2024 | ||||||
| Pounds sold ('000): | |||||||
| Specialty Alloys Operations | 44,750 | 50,100 | |||||
| Performance Engineered Products | 2,284 | 2,634 | |||||
| Intersegment | (610 | ) | (1,166 | ) | |||
| Consolidated pounds sold | 46,424 | 51,568 | |||||
| Net sales: | |||||||
| Specialty Alloys Operations | |||||||
| Net sales excluding surcharge | $ | 533.9 | $ | 510.9 | |||
| Surcharge | 125.7 | 134.2 | |||||
| Specialty Alloys Operations net sales | 659.6 | 645.1 | |||||
| Performance Engineered Products | |||||||
| Net sales excluding surcharge | 87.2 | 92.4 | |||||
| Surcharge | 6.4 | 8.4 | |||||
| Performance Engineered Products net sales | 93.6 | 100.8 | |||||
| Intersegment | |||||||
| Net sales excluding surcharge | (18.0 | ) | (25.9 | ) | |||
| Surcharge | (1.5 | ) | (2.4 | ) | |||
| Intersegment net sales | (19.5 | ) | (28.3 | ) | |||
| Consolidated net sales | $ | 733.7 | $ | 717.6 | |||
| Operating income (loss): | |||||||
| Specialty Alloys Operations | $ | 170.7 | $ | 134.5 | |||
| Performance Engineered Products | 9.4 | 7.3 | |||||
| Corporate | (26.6 | ) | (28.0 | ) | |||
| Intersegment | (0.2 | ) | (0.2 | ) | |||
| Consolidated operating income | $ | 153.3 | $ | 113.6 | |||
The Company has two reportable segments, Specialty Alloys Operations (“SAO”) and Performance Engineered Products (“PEP”).
The SAO segment is comprised of Carpenter's major premium alloy and stainless steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe, Pennsylvania and surrounding areas as well as South Carolina and Alabama.
The PEP segment is comprised of the Company’s differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Additive business and the Latrobe and Mexico distribution businesses. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics. The pounds sold data above for the PEP segment includes only the Dynamet and Additive businesses.
Corporate costs are comprised of executive and director compensation, and other corporate facilities and administrative expenses not allocated to the segments. Also included are items that management considers not representative of ongoing operations and other specifically-identified income or expense items.
The service cost component of net pension expense, which represents the estimated cost of future pension liabilities earned associated with active employees, is included in the operating results of the business segments. The residual net pension expense is included in other expense, net, and is comprised of the expected return on plan assets, interest costs on the projected benefit obligations of the plans, amortization of actuarial gains and losses and prior service costs.
| PRELIMINARY NON-GAAP FINANCIAL MEASURES (in millions, except per share data) (Unaudited) | ||||||||
| ADJUSTED OPERATING MARGIN EXCLUDING SURCHARGE REVENUE AND SPECIAL ITEM | Three Months Ended | |||||||
| September 30, | ||||||||
| 2025 | 2024 | |||||||
| Net sales | $ | 733.7 | $ | 717.6 | ||||
| Less: surcharge revenue | 130.6 | 140.2 | ||||||
| Net sales excluding surcharge revenue | $ | 603.1 | $ | 577.4 | ||||
| Operating income | $ | 153.3 | $ | 113.6 | ||||
| Special item: | ||||||||
| Restructuring and asset impairment charges | — | 3.6 | ||||||
| Adjusted operating income | $ | 153.3 | $ | 117.2 | ||||
| Operating margin | 20.9 | % | 15.8 | % | ||||
| Adjusted operating margin excluding surcharge revenue and special item | 25.4 | % | 20.3 | % | ||||
| ADJUSTED SEGMENT OPERATING MARGIN EXCLUDING SURCHARGE REVENUE | Three Months Ended | |||||||
| September 30, | ||||||||
| 2025 | 2024 | |||||||
| Specialty Alloys Operations | ||||||||
| Net sales | $ | 659.6 | $ | 645.1 | ||||
| Less: surcharge revenue | 125.7 | 134.2 | ||||||
| Net sales excluding surcharge revenue | $ | 533.9 | $ | 510.9 | ||||
| Operating income | $ | 170.7 | $ | 134.5 | ||||
| Operating margin | 25.9 | % | 20.8 | % | ||||
| Adjusted operating margin excluding surcharge revenue | 32.0 | % | 26.3 | % | ||||
| ADJUSTED SEGMENT OPERATING MARGIN EXCLUDING SURCHARGE REVENUE | Three Months Ended | |||||||
| September 30, | ||||||||
| 2025 | 2024 | |||||||
| Performance Engineered Products | ||||||||
| Net sales | $ | 93.6 | $ | 100.8 | ||||
| Less: surcharge revenue | 6.4 | 8.4 | ||||||
| Net sales excluding surcharge revenue | $ | 87.2 | $ | 92.4 | ||||
| Operating income | $ | 9.4 | $ | 7.3 | ||||
| Operating margin | 10.0 | % | 7.2 | % | ||||
| Adjusted operating margin excluding surcharge revenue | 10.8 | % | 7.9 | % | ||||
Management believes that removing the impact of raw material surcharge from operating margin provides a more consistent basis for comparing results of operations from period to period, thereby permitting management to evaluate performance and investors to make decisions based on the ongoing operations of the Company. In addition, management believes that excluding the impact of special items from operating margin is helpful in analyzing the operating performance of the Company, as these items are not indicative of ongoing operating performance. Management uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s board of directors and others.
| ADJUSTED EARNINGS PER DILUTED SHARE EXCLUDING SPECIAL ITEM | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | |||||||||
| Three Months Ended September 30, 2025, as reported | $ | 144.8 | $ | (22.3 | ) | $ | 122.5 | $ | 2.43 | ||||
| Special item: | |||||||||||||
| None reported | — | — | — | — | |||||||||
| Three Months Ended September 30, 2025, as adjusted | $ | 144.8 | $ | (22.3 | ) | $ | 122.5 | $ | 2.43 | ||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 50.4 million for the three months ended September 30, 2025. | |||||||||||||
| ADJUSTED EARNINGS PER DILUTED SHARE EXCLUDING SPECIAL ITEM | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | |||||||||
| Three Months Ended September 30, 2024, as reported | $ | 101.1 | $ | (16.3 | ) | $ | 84.8 | $ | 1.67 | ||||
| Special item: | |||||||||||||
| Restructuring and asset impairment charges | 3.6 | (0.9 | ) | 2.7 | 0.06 | ||||||||
| Three Months Ended September 30, 2024, as adjusted | $ | 104.7 | $ | (17.2 | ) | $ | 87.5 | $ | 1.73 | ||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 50.7 million for the three months ended September 30, 2024. | |||||||||||||
Management believes that earnings per share adjusted to exclude the impact of the special items is helpful in analyzing the operating performance of the Company, as these items are not indicative of ongoing operating performance. Management uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s board of directors and others.
| Three Months Ended | ||||||||
| September 30, | ||||||||
| ADJUSTED FREE CASH FLOW | 2025 | 2024 | ||||||
| Net cash provided from operating activities | $ | 39.2 | $ | 40.2 | ||||
| Purchases of property, plant, equipment and software | (42.6 | ) | (26.9 | ) | ||||
| Adjusted free cash flow | $ | (3.4 | ) | $ | 13.3 | |||
Management believes that the presentation of adjusted free cash flow provides useful information to investors regarding our financial condition because it is a measure of cash generated which management evaluates for alternative uses. It is management's current intention to use excess cash to fund investments in capital equipment, acquisition opportunities and consistent dividend payments. Additionally, we will discretionarily use excess cash for an approved share repurchase program up to
| PRELIMINARY SUPPLEMENTAL SCHEDULE (in millions) (Unaudited) | ||||||
| Three Months Ended | ||||||
| September 30, | ||||||
| NET SALES BY END-USE MARKET | 2025 | 2024 | ||||
| End-Use Market Excluding Surcharge Revenue: | ||||||
| Aerospace and Defense | $ | 388.3 | $ | 349.9 | ||
| Medical | 61.6 | 73.4 | ||||
| Energy | 42.5 | 39.4 | ||||
| Transportation | 17.9 | 21.1 | ||||
| Industrial and Consumer | 75.0 | 72.4 | ||||
| Distribution | 17.8 | 21.2 | ||||
| Total net sales excluding surcharge revenue | 603.1 | 577.4 | ||||
| Surcharge revenue | 130.6 | 140.2 | ||||
| Total net sales | $ | 733.7 | $ | 717.6 | ||
| Investor Inquiries: | Media Inquiries: | |
| John Huyette | Heather Beardsley | |
| +1 610-208-2061 | +1 610-208-2278 | |
| jhuyette@cartech.com | hbeardsley@cartech.com |
FAQ
What were Carpenter Technology (CRS) Q1 FY2026 operating income and EPS on Oct 23, 2025?
How did Carpenter's SAO segment perform in Q1 FY2026 (CRS)?
What guidance did Carpenter (CRS) give for fiscal 2026 operating income on Oct 23, 2025?
How much cash did Carpenter (CRS) generate from operations and what was adjusted free cash flow in Q1 FY2026?
What did Carpenter (CRS) report about Aerospace & Defense demand on Oct 23, 2025?
How much share repurchase did Carpenter (CRS) execute in Q1 FY2026 and remaining authorization?
