Carpenter Technology Reports First Quarter Fiscal Year 2027 Results
Aerospace structural and distribution bookings increased 23 percent sequentially and 49 percent year-over-year.
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Rhea-AI Summary
Carpenter Technology (CRS) reported fiscal first-quarter 2027 operating income of $196.4 million, up 28 percent from a year earlier. For the quarter ended September 30, 2026, sales rose 9 percent to $798.2 million, and diluted earnings per share increased to $3.25 from $2.43. Operating income fell 5 percent sequentially, with planned preventive maintenance offsetting productivity, mix and pricing benefits.
Specialty Alloys Operations generated $216.3 million of operating income and a 37.7 percent adjusted operating margin. Operating cash flow was $52.8 million, but free cash flow was negative $24.8 million as capital spending increased. Share repurchases totaled $133.9 million. Carpenter expects second-quarter operating income of $192 million to $197 million and maintained its fiscal 2027 outlook of $850 million to $880 million, representing 21 percent to 25 percent growth over fiscal 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
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Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointOperating income of $196.4 million rose 28 percent year-over-year but fell 5 percent sequentially.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Second-quarter fiscal 2027 operating income expected at $192 million to $197 million.
- Moderate pointNet sales of $798.2 million rose 9 percent year-over-year, versus $851.0 million in the preceding quarter.
- Moderate pointDiluted earnings per share increased to $3.25 from $2.43 in the prior-year first quarter.
- Moderate pointSpecialty Alloys Operations income of $216.3 million rose 27 percent year-over-year but fell 6 percent sequentially.
- Moderate pointAerospace structural and distribution bookings increased 23 percent sequentially and 49 percent year-over-year.
- Moderate pointOperating cash flow of $52.8 million exceeded $39.2 million year-earlier but trailed $240.1 million sequentially.
- Moderate pointShare repurchases returned $133.9 million through purchases of 241,924 shares during the quarter.
10 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 operating income outlook maintained at $850 million–$880 million, representing 21 percent–25 percent growth.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2029 operating income target maintained at $1.2 billion to $1.3 billion.
- Minor pointNet income increased to $162.5 million from $122.5 million in the prior-year first quarter.
- Minor pointSpecialty Alloys adjusted operating margin reached 37.7 percent, versus 32.0 percent year-earlier and 37.8 percent sequentially.
- Minor pointSpecialty Alloys Operations sales increased to $730.4 million from $659.6 million in the prior-year quarter.
- Minor pointAugust 2026 repurchase authorization of $1.0 billion had $985.0 million remaining at September 30, 2026.
- Minor pointGross profit increased to $256.3 million from $216.4 million in the prior-year first quarter.
- Minor pointSelling, general and administrative expenses decreased to $59.9 million from $63.1 million in the prior-year quarter.
- Minor pointNet interest expense decreased to $7.1 million from $11.5 million in the prior-year first quarter.
- Minor point. Forward-looking: it has not happened yet and may not happen.Brownfield capacity expansion is expected to contribute to Carpenter's fiscal 2029 operating income target.
Negative
- Moderate pointFree cash flow worsened to negative $24.8 million from negative $3.4 million in the prior-year quarter.
- Minor pointCapital expenditures increased to $77.7 million from $42.6 million year-earlier, principally reflecting the brownfield expansion.
- Minor pointCash and cash equivalents fell to $159.5 million from $393.3 million at June 30, 2026.
- Minor pointPerformance Engineered Products operating income decreased to $7.3 million from $9.4 million in the prior-year quarter.
- Minor pointPerformance Engineered Products sales declined to $91.1 million from $93.6 million in the prior-year quarter.
- Minor pointPlanned preventive maintenance downtime offset quarterly productivity, product mix and pricing benefits.
News Explained
At September 30, reported liquidity included $499.1 million of available borrowing capacity as well as cash.
In its fiscal first-quarter report, Carpenter Technology says it bought 241,924 common shares for
At
Details
Market Reaction – CRS
On Oct 22, the day this news came out, the latest delayed price for CRS is 8.06% below the previous close. The latest delayed price is $338.50. Relative volume is elevated at 2.4x the average.
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Key Figures
- Operating income
- $196.4 million
- Q1 FY2027; up 28% year-over-year
- Diluted EPS
- $3.25
- Q1 FY2027, compared with $2.43 in Q1 FY2026
- SAO adjusted operating margin
- 37.7%
- Q1 FY2027, compared with 32.0% in the prior-year quarter
- Q2 operating income outlook
- $192 million to $197 million
- Q2 FY2027
- Operating income outlook
- $850 million to $880 million
- FY2027 outlook maintained
- Operating income target
- $1.2 billion to $1.3 billion
- FY2029 target
- Free cash flow
- -$24.8 million
- Q1 FY2027, compared with -$3.4 million in Q1 FY2026
- Share repurchases
- $133.9 million
- Purchases during Q1 FY2027
Previous Earnings Reports
-
Reported record Q4 operating income and $3.23 diluted EPS; provided FY2027 operating income guidance.
-
Reported record Q3 operating income and raised FY2026 operating income guidance.
-
Reported record Q2 operating income and raised FY2026 operating income guidance.
-
Reported record Q1 results, including $153.3 million operating income and $2.43 diluted EPS.
-
Reported Q4 and FY2025 results and provided FY2026 operating income guidance.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
mro technical
gaap financial
free cash flow financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Delivered Record First Quarter Operating Income, Up 28 Percent Year-Over-Year
Strong Results Reflect Productivity Improvements, Mix Optimization and Benefits from Pricing Actions
Realized Adjusted Operating Margin in Specialty Alloys Operations Segment of 37.7 Percent
Demand Accelerating in Commercial Aerospace Supply Chain, Resulting in Increased Bookings
PHILADELPHIA, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today announced financial results for the fiscal first quarter ended September 30, 2026. For the quarter, the Company reported operating income of
First Quarter Fiscal Year 2027 Highlights
- Delivered
$196.4 million of operating income, up 28 percent year-over-year and down 5 percent sequentially - Sequential performance reflects productivity improvements, mix management and benefits from pricing actions, offset by planned downtime for preventive maintenance activities
- Generated Specialty Alloys Operations (“SAO”) segment operating income of
$216.3 million, up 27 percent year-over-year and down 6 percent sequentially - Delivered adjusted operating margin of 37.7 percent in the SAO segment, up from 32.0 percent in the prior year first quarter and in line with 37.8 percent in the fourth quarter of fiscal year 2026
- Strong bookings for Commercial Aerospace, led by aerospace structural and distribution sub-markets which saw bookings increase 23 percent sequentially and 49 percent year-over-year
- Executed
$133.9 million in share repurchases against repurchase programs; announced additional$1.0 billion share repurchase program in August 2026 - Realized earnings per diluted share of
$3.25 in the quarter - Generated
$52.8 million of cash from operating activities
Outlook
- For the second quarter of fiscal year 2027, anticipate between
$192 million to$197 million in operating income - Maintain fiscal year 2027 operating income outlook in the range of
$850 million to$880 million , representing a 21 percent to 25 percent increase over fiscal year 2026 operating income - Well positioned for continued growth beyond fiscal year 2027 with strong market demand for our broad portfolio of specialized solutions, ongoing productivity improvements, product mix optimization, and realization of pricing actions
“Carpenter Technology delivered another strong quarter, generating
“Notably, in the current quarter we saw a step up in demand, especially in the commercial aerospace supply chain. Customers in the aerospace structural and distribution sub-markets have increasing confidence in the industry’s ability to ramp and our engine customers are increasing activity to support new builds and elevated MRO activity. As a result, we saw increased sequential bookings across the commercial aerospace sub-markets, with the aerospace structural and distribution sub-markets leading the way. Further, in the strong demand environment, pricing continues to strengthen across our business.”
“We maintain our recently communicated fiscal year 2027 operating income outlook of
“In addition, we are currently working on specific actions and projects to exceed our operating income targets for fiscal year 2027 and fiscal year 2029. With macro trends so strong and accelerating, we see additional upside to demand, pricing opportunity and productivity improvement that could drive our operating income even higher.”
“Altogether, we believe we have a compelling value creation story. We are delivering record results today with strong operating margins and levers to expand margins further, we see accelerating demand across our key end-use markets, and we continue to benefit from pricing actions. As a result, we have a clear path to significant earnings growth over the next several years, and we are positioned to create substantial long-term value for our shareholders.”
Financial Highlights
| Q1 | Q4 | Q1 | |||||||||
| ($ in millions, except per share amounts) | FY2027 | FY2026 | FY2026 | ||||||||
| Net sales | $ | 798.2 | $ | 851.0 | $ | 733.7 | |||||
| Net sales excluding surcharge (a) | $ | 634.8 | $ | 679.7 | $ | 603.1 | |||||
| Operating income | $ | 196.4 | $ | 206.9 | $ | 153.3 | |||||
| Net income | $ | 162.5 | $ | 162.4 | $ | 122.5 | |||||
| Earnings per diluted share | $ | 3.25 | $ | 3.23 | $ | 2.43 | |||||
| Net cash provided from operating activities | $ | 52.8 | $ | 240.1 | $ | 39.2 | |||||
| Free cash flow (a) | $ | (24.8 | ) | $ | 155.0 | $ | (3.4 | ) | |||
| (a) Non-GAAP financial measures explained in the attached tables | |||||||||||
Net sales for the first quarter of fiscal year 2027 were
Operating income for the first quarter of fiscal year 2027 was
Cash provided from operating activities in the first quarter of fiscal year 2027 was
During the quarter ended September 30, 2026, the Company purchased 241,924 shares of its common stock on the open market for an aggregate of
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 22, 2026, at 10:00 a.m. ET, to discuss the financial results of operations for the first quarter of fiscal year 2027. Please dial +1 (833) 461-5787 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, energy, transportation, and industrial and consumer 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 Reform Act of 1995. Forward-looking statements include, among other things, statements regarding guidance, outlook, targets, objectives, future operating performance, cash generation, capital allocation, market conditions and strategic initiatives. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected, anticipated, expected 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, 2026, 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 cybersecurity incidents, ransomware attacks, malicious AI usage, operational technology disruptions, information technology failures, data security breaches and failures of third-party technology service providers; (17) the ability of suppliers, logistics providers and other supply-chain participants to meet obligations due to capacity constraints, transportation disruptions, energy shortages, geopolitical events, labor shortages or other factors; (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, regulatory and security risks relating to our global business, including international conflicts, military actions, diplomatic tensions, trade restrictions, sanctions, disruptions to transportation corridors and shipping routes and changes in U.S. and foreign trade, tax and regulatory requirements; (21) challenges affecting the commercial aviation industry or key participants; (22) the consequences of the announcement, maintenance or use of Carpenter Technology’s share repurchase program; and (23) the ability to successfully execute major capital projects and brownfield expansion initiatives, including achieving expected costs, schedules, capacity additions, productivity improvements and returns on investment. 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, | ||||||||
| 2026 | 2025 | |||||||
| NET SALES | $ | 798.2 | $ | 733.7 | ||||
| Cost of sales | 541.9 | 517.3 | ||||||
| Gross profit | 256.3 | 216.4 | ||||||
| Selling, general and administrative expenses | 59.9 | 63.1 | ||||||
| Operating income | 196.4 | 153.3 | ||||||
| Interest expense, net | 7.1 | 11.5 | ||||||
| Other income, net | (3.1 | ) | (3.0 | ) | ||||
| Income before income taxes | 192.4 | 144.8 | ||||||
| Income tax expense | 29.9 | 22.3 | ||||||
| NET INCOME | $ | 162.5 | $ | 122.5 | ||||
| EARNINGS PER COMMON SHARE: | ||||||||
| Basic | $ | 3.26 | $ | 2.45 | ||||
| Diluted | $ | 3.25 | $ | 2.43 | ||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||
| Basic | 49.8 | 50.1 | ||||||
| Diluted | 50.0 | 50.4 | ||||||
| Cash dividends per common share | $ | 0.20 | $ | 0.20 | ||||
| PRELIMINARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 162.5 | $ | 122.5 | ||||
| Adjustments to reconcile net income to net cash provided from operating activities: | ||||||||
| Depreciation and amortization | 36.6 | 36.0 | ||||||
| Deferred income taxes | 11.6 | 5.8 | ||||||
| Net pension expense | 1.5 | 3.6 | ||||||
| Share-based compensation expense | 6.4 | 5.6 | ||||||
| Net loss on disposals of property, plant and equipment | 0.3 | 0.3 | ||||||
| Changes in working capital and other: | ||||||||
| Accounts receivable | (18.7 | ) | (36.2 | ) | ||||
| Inventories | (61.6 | ) | 15.6 | |||||
| Other current assets | (13.3 | ) | 7.7 | |||||
| Accounts payable | 24.1 | (27.0 | ) | |||||
| Accrued liabilities | (88.5 | ) | (85.9 | ) | ||||
| Pension plan contributions | (8.6 | ) | (5.9 | ) | ||||
| Other postretirement plan contributions | (0.7 | ) | (0.9 | ) | ||||
| Other, net | 1.2 | (2.0 | ) | |||||
| Net cash provided from operating activities | 52.8 | 39.2 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Purchases of property, plant, equipment and software | (77.7 | ) | (42.6 | ) | ||||
| Proceeds from disposals of property, plant and equipment | 0.1 | — | ||||||
| Net cash used for investing activities | (77.6 | ) | (42.6 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Dividends paid | (9.9 | ) | (10.1 | ) | ||||
| Purchases of treasury stock | (133.9 | ) | (49.1 | ) | ||||
| Proceeds from stock options exercised | 0.4 | 0.5 | ||||||
| Withholding tax payments on share-based compensation awards | (65.2 | ) | (45.5 | ) | ||||
| Net cash used for financing activities | (208.6 | ) | (104.2 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (0.4 | ) | 0.1 | |||||
| DECREASE IN CASH AND CASH EQUIVALENTS | (233.8 | ) | (107.5 | ) | ||||
| Cash and cash equivalents at beginning of year | 393.3 | 315.5 | ||||||
| Cash and cash equivalents at end of period | $ | 159.5 | $ | 208.0 | ||||
| PRELIMINARY CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) | ||||||||
| September 30, | June 30, | |||||||
| 2026 | 2026 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 159.5 | $ | 393.3 | ||||
| Accounts receivable, net | 722.2 | 701.9 | ||||||
| Inventories | 884.4 | 822.9 | ||||||
| Other current assets | 76.0 | 63.1 | ||||||
| Total current assets | 1,842.1 | 1,981.2 | ||||||
| Property, plant, equipment and software, net | 1,538.0 | 1,487.9 | ||||||
| Goodwill | 227.3 | 227.3 | ||||||
| Other intangibles, net | 2.4 | 3.9 | ||||||
| Deferred income taxes | 5.5 | 5.5 | ||||||
| Other assets | 129.4 | 132.5 | ||||||
| Total assets | $ | 3,744.7 | $ | 3,838.3 | ||||
| LIABILITIES | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 345.3 | $ | 313.4 | ||||
| Accrued liabilities | 122.2 | 206.6 | ||||||
| Total current liabilities | 467.5 | 520.0 | ||||||
| Long-term debt | 691.0 | 690.7 | ||||||
| Accrued pension liabilities | 82.4 | 89.6 | ||||||
| Accrued postretirement benefits | 21.7 | 22.2 | ||||||
| Deferred income taxes | 207.4 | 196.9 | ||||||
| Other liabilities | 91.9 | 91.3 | ||||||
| Total liabilities | 1,561.9 | 1,610.7 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock | 286.8 | 286.8 | ||||||
| Capital in excess of par value | 341.8 | 357.1 | ||||||
| Reinvested earnings | 2,352.3 | 2,199.7 | ||||||
| Common stock in treasury, at cost | (772.5 | ) | (595.6 | ) | ||||
| Accumulated other comprehensive loss | (25.6 | ) | (20.4 | ) | ||||
| Total stockholders' equity | 2,182.8 | 2,227.6 | ||||||
| Total liabilities and stockholders' equity | $ | 3,744.7 | $ | 3,838.3 | ||||
| PRELIMINARY SEGMENT FINANCIAL DATA (in millions) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| Net sales: | ||||||||
| Specialty Alloys Operations | ||||||||
| Net sales excluding surcharge | $ | 573.5 | $ | 533.9 | ||||
| Surcharge | 156.9 | 125.7 | ||||||
| Specialty Alloys Operations net sales | 730.4 | 659.6 | ||||||
| Performance Engineered Products | ||||||||
| Net sales excluding surcharge | 83.0 | 87.2 | ||||||
| Surcharge | 8.1 | 6.4 | ||||||
| Performance Engineered Products net sales | 91.1 | 93.6 | ||||||
| Intersegment | ||||||||
| Net sales excluding surcharge | (21.7 | ) | (18.0 | ) | ||||
| Surcharge | (1.6 | ) | (1.5 | ) | ||||
| Intersegment net sales | (23.3 | ) | (19.5 | ) | ||||
| Consolidated net sales | $ | 798.2 | $ | 733.7 | ||||
| Operating income (loss): | ||||||||
| Specialty Alloys Operations | $ | 216.3 | $ | 170.7 | ||||
| Performance Engineered Products | 7.3 | 9.4 | ||||||
| Corporate | (26.1 | ) | (26.6 | ) | ||||
| Intersegment | (1.1 | ) | (0.2 | ) | ||||
| Consolidated operating income | $ | 196.4 | $ | 153.3 | ||||
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. It is our belief this model will ultimately drive overall revenue and profit growth.
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 income, 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 | Three Months Ended | |||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| Net sales | $ | 798.2 | $ | 733.7 | ||||
| Less: surcharge revenue | 163.4 | 130.6 | ||||||
| Net sales excluding surcharge revenue | $ | 634.8 | $ | 603.1 | ||||
| Operating income | $ | 196.4 | $ | 153.3 | ||||
| Operating margin | 24.6 | % | 20.9 | % | ||||
| Adjusted operating margin excluding surcharge revenue | 30.9 | % | 25.4 | % | ||||
| ADJUSTED SEGMENT OPERATING MARGIN EXCLUDING SURCHARGE REVENUE | Three Months Ended | |||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| Specialty Alloys Operations | ||||||||
| Net sales | $ | 730.4 | $ | 659.6 | ||||
| Less: surcharge revenue | 156.9 | 125.7 | ||||||
| Net sales excluding surcharge revenue | $ | 573.5 | $ | 533.9 | ||||
| Operating income | $ | 216.3 | $ | 170.7 | ||||
| Operating margin | 29.6 | % | 25.9 | % | ||||
| Adjusted operating margin excluding surcharge revenue | 37.7 | % | 32.0 | % | ||||
| ADJUSTED SEGMENT OPERATING MARGIN EXCLUDING SURCHARGE REVENUE | Three Months Ended | |||||||
| September 30, | ||||||||
| 2026 | 2025 | |||||||
| Performance Engineered Products | ||||||||
| Net sales | $ | 91.1 | $ | 93.6 | ||||
| Less: surcharge revenue | 8.1 | 6.4 | ||||||
| Net sales excluding surcharge revenue | $ | 83.0 | $ | 87.2 | ||||
| Operating income | $ | 7.3 | $ | 9.4 | ||||
| Operating margin | 8.0 | % | 10.0 | % | ||||
| Adjusted operating margin excluding surcharge revenue | 8.8 | % | 10.8 | % | ||||
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. Management uses its results excluding this amount 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, | ||||||||
| FREE CASH FLOW | 2026 | 2025 | ||||||
| Net cash provided from operating activities | $ | 52.8 | $ | 39.2 | ||||
| Purchases of property, plant, equipment and software | (77.7 | ) | (42.6 | ) | ||||
| Proceeds from disposals of property, plant and equipment | 0.1 | — | ||||||
| Free cash flow | $ | (24.8 | ) | $ | (3.4 | ) | ||
Management believes that the presentation of 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 a share repurchase program up to
| PRELIMINARY SUPPLEMENTAL SCHEDULE (in millions) (Unaudited) | ||||||
| Three Months Ended | ||||||
| September 30, | ||||||
| NET SALES BY END-USE MARKET | 2026 | 2025 | ||||
| End-Use Market Excluding Surcharge Revenue: | ||||||
| Aerospace and Defense | $ | 425.4 | $ | 388.3 | ||
| Medical | 51.7 | 61.6 | ||||
| Energy | 32.9 | 42.5 | ||||
| Transportation | 19.8 | 17.9 | ||||
| Industrial and Consumer | 83.2 | 75.0 | ||||
| Distribution | 21.8 | 17.8 | ||||
| Total net sales excluding surcharge revenue | 634.8 | 603.1 | ||||
| Surcharge revenue | 163.4 | 130.6 | ||||
| Total net sales | $ | 798.2 | $ | 733.7 | ||
| Investor Inquiries: | Media Inquiries: | |
| John Huyette | Heather Beardsley | |
| +1 610-208-2061 | +1 610-208-2278 | |
| jhuyette@cartech.com | hbeardsley@cartech.com |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Carpenter Technology's fiscal first-quarter 2027 earnings?
Carpenter Technology earned $3.25 per diluted share in the quarter ended September 30, 2026, compared with $2.43 a year earlier. Net income increased to $162.5 million from $122.5 million, while operating income reached $196.4 million.
What is Carpenter Technology's fiscal 2027 operating income outlook?
Carpenter maintained its fiscal 2027 operating income outlook of $850 million to $880 million, representing a 21 percent to 25 percent increase over fiscal 2026. The company expects second-quarter fiscal 2027 operating income of $192 million to $197 million.
How much liquidity did Carpenter Technology have at the end of fiscal first-quarter 2027?
Carpenter Technology had $658.6 million of total liquidity at September 30, 2026. This consisted of $159.5 million in cash and $499.1 million of available borrowings under its credit facility.