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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 $196.4 million and earnings per diluted share of $3.25.

First Quarter Fiscal Year 2027 Highlights

Delivered $196.4 million of operating income, up 28 percent year-over-year and down 5 percent sequentiallySequential performance reflects productivity improvements, mix management and benefits from pricing actions, offset by planned downtime for preventive maintenance activitiesGenerated Specialty Alloys Operations (“SAO”) segment operating income of $216.3 million, up 27 percent year-over-year and down 6 percent sequentiallyDelivered 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 2026Strong bookings for Commercial Aerospace, led by aerospace structural and distribution sub-markets which saw bookings increase 23 percent sequentially and 49 percent year-over-yearExecuted $133.9 million in share repurchases against repurchase programs; announced additional $1.0 billion share repurchase program in August 2026Realized earnings per diluted share of $3.25 in the quarterGenerated $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 incomeMaintain 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 incomeWell 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 $196.4 million of operating income in the first quarter of fiscal year 2027,” said Tony R. Thene, Chairman, President and CEO of Carpenter Technology. “This was the most profitable first quarter in the Company’s history, up 28 percent over the first quarter of fiscal year 2026, establishing a strong foundation for the rest of the fiscal year. The results, driven by productivity improvements, mix management and the benefits of pricing actions, were impressive for a quarter with increased preventive maintenance activities. Specifically, the SAO segment delivered $216.3 million of operating income and adjusted operating margin of 37.7 percent in the quarter, both significant increases over the previous year first quarter.”

“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 $850 million to $880 million and our fiscal year 2029 operating income target of $1.2 billion to $1.3 billion which reflects the accelerating demand environment, continued benefits of pricing actions and the expected contribution from our brownfield capacity expansion project.”

“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 FY2026Net 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 $798.2 million, compared with $733.7 million in the first quarter of fiscal year 2026, an increase of $64.5 million (or 9 percent). Net sales excluding surcharge were $634.8 million for the current quarter, an increase of $31.7 million (or 5 percent) from the same period a year ago.

Operating income for the first quarter of fiscal year 2027 was $196.4 million compared to operating income of $153.3 million in the prior year period. Earnings per diluted share for the first quarter of fiscal year 2027 was $3.25 compared to earnings of $2.43 per diluted share in the prior year first quarter.

Cash provided from operating activities in the first quarter of fiscal year 2027 was $52.8 million, compared to $39.2 million in the same quarter last year. Free cash flow in the first quarter of fiscal year 2027 was negative $24.8 million, compared to negative $3.4 million in the same quarter last year. The increase in operating cash flow in the first quarter of fiscal year 2027 reflects higher earnings partially offset by changes in working capital, primarily inventory, compared to the same quarter last year. The unfavorable change in free cash flow reflects increased capital expenditures compared to the prior year period, namely from the brownfield expansion. Capital expenditures were $77.7 million in the first quarter of fiscal year 2027 compared to $42.6 million in the same quarter last year.

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 $133.9 million. As of September 30, 2026, $985.0 million remains available for future purchases under the $1.0 billion share repurchase program authorized in August 2026.

Total liquidity, including cash and available revolver balance, was $658.6 million at the end of the first quarter of fiscal year 2027. This consisted of $159.5 million of cash and $499.1 million of available borrowings under the Company’s Credit Facility.

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 $1.0 billion of our outstanding common stock. Free cash flow is not a U.S. GAAP financial measure and should not be considered in isolation of, or as a substitute for, cash flows calculated in accordance with U.S. GAAP.

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 $388.3Medical  51.7  61.6Energy  32.9  42.5Transportation  19.8  17.9Industrial and Consumer  83.2  75.0Distribution  21.8  17.8Total net sales excluding surcharge revenue  634.8  603.1Surcharge revenue  163.4  130.6Total net sales $798.2 $733.7      Investor Inquiries: Media Inquiries:John Huyette Heather Beardsley+1 610-208-2061 +1 [email protected] [email protected]

Key Takeaways Carpenter Technology is expected to report Q1 sales of $805.1M and earnings of $2.94 per share.Aerospace and defense demand, higher prices, improved product mix and productivity gains may support margins.SAO profit is projected to be $221M, while PEP profit may fall to $6.7M.
Carpenter Technology Corporation (CRS - Free Report) is scheduled to report first-quarter fiscal 2027 results on Oct. 22, before the opening bell.

The Zacks Consensus Estimate for CRS’s sales is pegged at $805.1 million, indicating a 9.7% rise from the year-ago reported figure.

The consensus estimate for Carpenter Technology’s earnings is pegged at $2.94 per share. The Zacks Consensus Estimate for CRS’s earnings has inched up 1.1% in the past 60 days. The estimate indicates year-over-year growth of 21%.

Image Source: Zacks Investment Research

CRS’s Solid Earnings Surprise HistoryCarpenter Technology’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 8.4%.

Image Source: Zacks Investment Research

What the Zacks Model Unveils for Carpenter TechnologyOur proven model does not conclusively predict an earnings beat for CRS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here, as you can see below.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: Carpenter Technology has an Earnings ESP of 0.00%.

Zacks Rank: CRS currently has a Zacks Rank of 2.

Factors Likely to Have Shaped Up CRS’s Q2 PerformanceCarpenter Technology has been witnessing growth in aerospace, defense and medical applications, which is anticipated to get reflected in the first-quarter fiscal 2027 results. In the quarter, demand is expected to have accelerated across all aerospace sub-markets as the supply chain ramped up to meet increasing travel demand.

However, the company has been facing uneven trends across the Medical and Distribution end-use markets, which are likely to have affected its performance.

Nonetheless, gains from increased productivity across Carpenter Technology’s facilities, higher prices, an improved product mix and increased volumes are expected to have negated these headwinds. The impacts of these are likely to get reflected in the company’s margin.

We expect the Specialty Alloys Operations segment’s sales to be $705 million in the quarter, indicating a rise of 6.9% from the year-ago quarter’s reported figure. Our model estimates the segment to sell 47,983 pounds in the first quarter of fiscal 2027, indicating growth of 7.2% from that reported in the first quarter of fiscal 2026. We expect the operating profit to be $221 million, indicating growth from the $171 million reported in first-quarter fiscal 2026.

We expect Performance Engineered Products’ net sales to rise 1.7% year over year to $95.2 million. Our model predicts the segment to sell 2,499 pounds in the quarter, indicating a rise of 9.4%. Our estimate for the segment’s operating profit is $6.7 million. The segment reported an operating profit of $9.4 million in the year-ago quarter.

Carpenter Technology Stock’s Price PerformanceCRS shares have gained 57.2% in the past year compared with the industry’s 49.2% growth.

Stocks to ConsiderHere are some Basic Material stocks with the right combination of elements to post an earnings beat in their upcoming releases.

Reliance, Inc. (RS - Free Report) , scheduled to release third-quarter 2026 earnings on Oct. 21, has an Earnings ESP of +14.26% and flaunts a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for earnings for Reliance for the third quarter of 2026 is pegged at $6.76 per share, suggesting an 85.7% year-over-year increase. Reliance has a trailing four-quarter average earnings surprise of 3.15%.

OR Royalties Inc. (OR - Free Report) , scheduled to release third-quarter 2026 earnings on Nov. 11, has an Earnings ESP of +0.88% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for OR Royalties’ earnings for the third quarter of 2026 is pegged at 27 cents per share, indicating 22.7% growth from the year-ago quarter’s reported figure. OR Royalties has a trailing four-quarter average earnings surprise of 9.98%.

FreeportMcMoRan (FCX - Free Report) , scheduled to release third-quarter 2026 earnings on Oct. 27, has an Earnings ESP of +1.77% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for earnings for FreeportMcMoRan for the third quarter of 2026 is 75 cents per share, indicating a 50% year-over-year increase. FreeportMcMoRan has a trailing four-quarter average earnings surprise of 32.61%.

AI Fatigue? These 3 Analyst-Upgraded Stocks Offer Real Growth PotentialCarpenter Technology NYSE: CRS said fiscal 2026 marked another record year for earnings, while the company continues to pursue a capacity expansion intended to support demand from aerospace and defense customers.

Speaking at the company’s virtual annual meeting of stockholders on Oct. 6, Chairman, President and Chief Executive Officer Tony Thene said fiscal 2026 produced the highest earnings in Carpenter Technology’s history, surpassing the prior record established a year earlier. He attributed the performance to the company’s market position, solutions portfolio and specialized capabilities.

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3 Materials Stocks Everyone Is Talking About Right Now“We believe Carpenter Technology is still in the early stages of a multi-year growth journey,” Thene said, citing aerospace and defense demand, differentiated capabilities and investments aimed at supporting future earnings and cash-flow growth.

Safety and Capacity Investment Thene said safety remains the company’s top priority and reported a total case incident rate of 1.4 for fiscal 2026. He said the company’s long-term goal remains a zero-injury workplace.

3 Steel Stocks Could Soar on New China TariffsThe company’s brownfield capacity expansion project remains on schedule and within budget, according to Thene. He said the project is intended to strengthen Carpenter Technology’s competitive position and add capacity to address growing customer demand.

Thene also said the company’s cash generation and balance sheet support what he described as a balanced capital-allocation strategy: investing in high-return growth opportunities while returning cash to shareholders. Looking ahead to fiscal 2027, he said Carpenter Technology enters the year with “confidence, momentum, and a clear vision for the future.”

Shareholders Elect Directors, Approve Proposals Stockholders elected Steven E. Karol, Charles D. McLane Jr. and Thene to three-year terms on the board, according to preliminary results announced during the meeting. Karol has served as a director since 2012 and is managing partner and founder of Watermill Group. McLane, a director since 2020, is the retired executive vice president and chief financial officer of Alcoa Corp.

Shareholders also ratified the appointment of PricewaterhouseCoopers LLP as the company’s independent registered public accounting firm for the fiscal year ending June 30, 2027. In addition, they approved, on an advisory basis, the compensation of Carpenter Technology’s named executive officers.

James Dee, the company’s senior vice president, general counsel and secretary, said final voting results will be reported in an SEC filing. The company reported that 49.6 million common shares were outstanding and entitled to vote as of the Aug. 7 record date, and that a quorum was present at the meeting.

Board Changes Thene recognized Colleen S. Pritchett and Howard H. Yu, whose board tenures concluded immediately before the annual meeting. He thanked both directors for their service.

The company also introduced two newer directors: Julie A. Beck, senior vice president, chief financial officer and treasurer of MSA Safety Inc., who joined the board in February 2025; and Kenneth J. Giacobbe, the retired executive vice president and chief financial officer of Howmet Aerospace Inc., who joined in August.

After the formal business concluded, Carpenter Technology opened the virtual meeting for stockholder questions and comments.

About Carpenter Technology (NYSE:CRS)Carpenter Technology Corporation is a manufacturer of specialty metals and engineered products for applications that require high performance, durability, and resistance to extreme conditions. Founded in 1889, the company produces stainless steels, nickel- and cobalt-based alloys, titanium alloys, and other specialty materials.

Its product offerings include specialty wire, rod, bar, strip, billet, and powder, as well as precision-engineered components and additive-manufacturing materials.

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Key Takeaways Carpenter Technology's $400M Athens project is on schedule and within budget for FY28.The expansion will add 9,000 tons of high-purity melt capacity, a 7% rise from FY19 shipments.CRS targets $1.2-$1.3B in FY29 operating income, up from $702M in FY26. Carpenter Technology’s (CRS - Free Report) brownfield expansion finished fiscal 2026 on schedule and within budget. The project is slated for completion by the start of fiscal 2028, accelerating CRS’s earnings growth profile.

The company is investing in a $400-million brownfield expansion project based in Athens. The project is aimed at adding high-purity primary and secondary melt capacity to the company’s existing downstream finishing assets, which will boost long-term growth.

The company is aiming to expand its capacity with a vacuum induction melting furnace, a crucial piece of equipment to manufacture high-purity specialty alloys. The brownfield capacity expansion project is designed to add 9,000 additional tons, marking a 7% rise from Carpenter Technology’s 2019 shipments.

The construction phase of the project is well underway with major equipment being delivered and installed. The company is focused on completing construction and preparing for a smooth startup of operations.

Carpenter Technology expects cash generation to further increase beyond fiscal 2027, driven by earnings expansion and profitability contributions from the brownfield project. CRS set a fiscal 2029 operating income target of $1.2-$1.3 billion, suggesting a solid jump from the $702 million reported in fiscal 2026. The upside will be fueled by both a robust underlying demand environment and the added capacity from the brownfield expansion. The company projects growth beyond fiscal 2026 as the brownfield project will still ramp up production amid a growing underlying demand environment.

Growth Strategies by Other Steel StocksCommercial Metals Company’s (CMC - Free Report) Transform, Advance, Grow Program focuses on driving higher through-the-cycle margins, earnings, cash flows and ROIC. Commercial Metals expects an annualized EBITDA benefit of $150 million in fiscal 2026 from the program.

Launched in 2024, the TAG program aims to drive consistency across all areas of the business for Commercial Metals. The program is designed to optimize logistics, reduce input consumption, lower costs and boost energy efficiency.

Cleveland-Cliffs Inc. (CLF - Free Report) is investing $1 billion to modernize its Middletown Works facility in Ohio, supported by a $500-million award from the U.S. Department of Energy (“DOE”). Cleveland-Cliffs and the DOE will each fund $500 million of the project. The investment is expected to be deployed over the next four years while maintaining uninterrupted steel production at the facility. The project represents a rescoping of Cleveland-Cliffs’ previously planned decarbonization initiative at Middletown Works.

CRS’s Price Performance, Valuations & EstimatesCarpenter Technology’s shares have surged 97.5% over the past year compared with the industry’s growth of 83.8%. In comparison, the Zacks Basic Materials sector and the S&P 500 have returned 37.1% and 22.4%, respectively.

Image Source: Zacks Investment Research

CRS is currently trading at a forward price/sales ratio of 6.87 compared with the industry's 2.69.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2027 sales is pegged at $3.04 billion, indicating an 8.8% year-over-year jump. The consensus mark for the year’s earnings is pegged at $13.08 per share, indicating a year-over-year rise of 21%.

The Zacks Consensus Estimate for fiscal 2028 sales implies 8.4% year-over-year growth, and the same for earnings suggests a rise of 19.4%.

EPS estimates for fiscal 2027 and 2028 have moved north over the past 60 days.

Image Source: Zacks Investment Research

CRS currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Carpenter Technology Corporation (CRS) Q4 2026 Earnings Call July 30, 2026 10:00 AM EDT

Company Participants

John Huyette - VP of Corporate Development & Investor Relations
Tony Thene - President, CEO & Chairman of the Board
Timothy Lain - Senior VP & CFO

Conference Call Participants

Scott Deuschle - Deutsche Bank AG, Research Division
Gautam Khanna - TD Cowen, Research Division
David Strauss - Wells Fargo Securities, LLC, Research Division
Bennett Moore - JPMorgan Chase & Co, Research Division
Joshua Sullivan - JonesTrading Institutional Services, LLC, Research Division
Andre Madrid - BTIG, LLC, Research Division

Presentation

Operator

Hello, everyone, and thank you for joining us, and welcome to the Carpenter Technology Corp Q4 FY '26 Earnings Presentation. [Operator Instructions] I will now hand the conference over to John Huyette, Vice President, Investor Relations. Please go ahead.

John Huyette
VP of Corporate Development & Investor Relations

Thank you, operator. Good morning, everyone, and welcome to the Carpenter Technology Earnings Conference Call for the fiscal 2026 Fourth Quarter ended June 30, 2026. This call is also being broadcast over the Internet along with presentation slides. For those of you listening by phone, you may experience a time delay in slide movement. Speakers on the call today are Tony Thene, Chairman, President and Chief Executive Officer; and Tim Lain, Senior Vice President and Chief Financial Officer. Statements made by management during this earnings presentation that are forward-looking statements are based on current expectations.

Risk factors that could cause actual results to differ materially from these forward-looking statements can be found in Carpenter Technology's most recent SEC filings, including the company's report on Form 10-K for the year ended June 30, 2025, Forms 10-Q for the quarters ended September 30, 2025, December 31, 2025, and March 31, 2026, and the exhibits attached to those filings.

Please also note that

Key Takeaways CRS Q4 sales are expected to rise 12.2% y/y to $847.8 million, with EPS growing 37.1%.Carpenter Technology is seeing strength in aerospace, defense and medical applications, supporting growth.CRS expects productivity, pricing and product mix gains to help offset medical and distribution headwinds. Carpenter Technology Corporation (CRS - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on July 30, before the opening bell.

The Zacks Consensus Estimate for CRS’s sales is pegged at $847.8 million, indicating a 12.2% rise from the year-ago reported figure.

The consensus estimate for Carpenter Technology’s earnings is pegged at $3.03 per share. The Zacks Consensus Estimate for CRS’s earnings has inched up 2% in the past 60 days. The estimate indicates year-over-year growth of 37.1%.

Image Source: Zacks Investment Research

CRS’s Solid Earnings Surprise HistoryCarpenter Technology’s earnings beat the Zacks Consensus Estimates in the trailing four quarters, the average surprise being 8.9%.

Image Source: Zacks Investment Research

What the Zacks Model Unveils for Carpenter TechnologyOur proven model does not conclusively predict an earnings beat for CRS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here, as you can see below.

You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: Carpenter Technology has an Earnings ESP of 0.00%.

Zacks Rank: CRS currently sports a Zacks Rank of 1.

Factors Likely to Have Shaped Up CRS’s Q4 PerformanceCarpenter Technology has been witnessing growth in aerospace, defense and medical applications, which is anticipated to continue throughout fiscal 2026 and get reflected in the fourth-quarter fiscal 2026 results. In the quarter, demand is expected to have accelerated across all aerospace sub-markets as the supply chain ramped up to meet increasing travel demand.

However, the company has been facing headwinds in the medical and distribution end-use markets, which are likely to have affected its performance.

Nonetheless, gains from increased productivity across Carpenter Technology’s facilities, higher prices, an improved product mix and increased volumes are expected to have negated these headwinds. The impacts of these are likely to get reflected in the company’s margin.

We expect the Specialty Alloys Operations segment’s sales to be $751 million in the quarter, indicating a rise of 11.4% from the year-ago quarter’s reported figure. Our model estimates the segment to sell 50,123 pounds in the fourth quarter of fiscal 2026, indicating growth of 6.9% from that reported in the fourth quarter of fiscal 2025. We expect the operating profit to be $228 million, indicating growth from the $167 million reported in fourth-quarter fiscal 2025.

We expect Performance Engineered Products’ net sales to rise 1.6% year over year to $106 million. Our model predicts the segment to sell 2,697 pounds in the quarter, indicating a rise of 0.9%. Our estimate for the segment’s operating profit is $6.7 million. The segment reported an operating profit of $11.7 million in the year-ago quarter.

Carpenter Technology Stock’s Price PerformanceCRS shares have skyrocketed 111.4% in the past year compared with the industry’s 102.7% whopping growth.

Image Source: Zacks Investment Research

Stocks to ConsiderHere are some Basic Materials stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases.

The Chemours Company (CC - Free Report) , scheduled to release second-quarter 2026 earnings on Aug. 4, has an Earnings ESP of +27.17% and currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chemours’ quarterly earnings are pegged at 43 cents per share, indicating a year-over-year dip of 25%. The company delivered a trailing four-quarter average earnings surprise of 69%.

Avient Corporation (AVNT - Free Report) , scheduled to release second-quarter 2026 earnings on Aug. 6, has an Earnings ESP of +0.87% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for earnings for Avient for the second quarter of 2026 is 89 cents per share, indicating an 11.2% year-over-year increase. Avient has a trailing four-quarter average earnings surprise of 2.1%.

Wheaton Precious Metals Corp. (WPM - Free Report) , slated to release second-quarter 2026 earnings on Aug.6, currently has an Earnings ESP of +1.16% and a Zacks Rank of 3.

Wheaton Precious Metals’ quarterly earnings are pegged at $1.13 per share, indicating a year-over-year jump of 79%. The company delivered a trailing four-quarter average earnings surprise of 14%.

Key Takeaways Carpenter Technology posted a record adjusted Q3'26 operating income of $186.5 million.CRS raised FY26 operating income guidance to $700-$705 million from $680-$700 million.Carpenter Technology expects Q426 operating income of $205-$210 million on pricing and mix gains. Carpenter Technology Corporation (CRS - Free Report) achieved a record adjusted operating income of $186.5 million in the third quarter of fiscal 2026, marking its most profitable third quarter on record. The upside was driven by strong demand in the aerospace and defense end-markets, as well as ongoing improvements in the product mix.

Carpenter Technology has been demonstrating its recovery growth trajectory through fiscal 2023, with increased productivity across the company’s facilities. In fiscal 2023, the company stated that it aims to double its fiscal 2019 operating income by fiscal 2027. By the end of the fourth quarter of fiscal 2024, it revised this timeline forward, expecting to reach its objective by fiscal 2025. The company surpassed its goal of achieving $460-$500 million in fiscal 2025, delivering operating income of $521.8 million.

With record operating performance and strengthening demand signals, CRS raised its fiscal 2026 outlook again. CRS expects full-year operating income of $700-$705 million, up from the prior stated $680-$700 million. The mid-point of the updated range indicates a 34% increase from that reported in fiscal 2025.

For the fourth quarter of fiscal 2026, the company anticipates operating income of $205-$210 million, indicating a year-over-year increase of 37% at the midpoint. The upside can be attributed to higher prices, improved product mix and increased volumes. The company expects expansion beyond fiscal 2027, supported by strengthening market dynamics and additional capacity.

An upbeat outlook and a consistent performance have set an optimistic tone for the fiscal fourth quarter for Carpenter Technology.

Operating Performance & Outlook of Other Steel StocksNucor Corporation (NUE - Free Report) is gaining from healthy demand in the key markets, actions to expand its production capabilities and higher steel prices. Nucor recorded net sales of $9.5 billion in the first quarter of 2026, up 21.3% year over year, driven by higher volumes. Increased shipment volumes and higher average selling prices drove first-quarter earnings in its steel mill segment.

The steel mills segment reported operating income of $1.13 billion, while the steel products segment and raw materials segment reported operating income of $285 million and $45 million, respectively. All three segments reported a sequential increase in operating income.

Nucor expects higher earnings across all three operating segments for the second quarter of 2026 than those reported in the prior quarter, specifically in the steel mills segment. The steel products segment is also anticipated to deliver stronger performance, driven by higher volumes on steady pricing. The raw materials segment is expected to benefit from higher realized pricing, further contributing to overall earnings growth.

Commercial Metals Company (CMC - Free Report) is gaining from a healthy demand across Commercial Metals’ major North American product lines. In the third quarter of fiscal 2026, Commercial Metals’ North America Steel Group segment reported adjusted EBITDA of around $253 million. The Europe Steel Group segment reported adjusted EBITDA of $34.7 million, while the Construction Solutions Group segment generated $97 million.

Commercial Metals expects core EBITDA to increase sequentially in the fourth quarter of fiscal 2026. The outlook reflects healthy domestic demand, strong backlogs and ongoing benefits from strategic initiatives.

North America Steel Group’s adjusted EBITDA is expected to improve, helped by the absence of a $20-million fiscal third-quarter mill outage headwind, and the benefits of volume growth and margin expansion. Construction Solutions Group’s adjusted EBITDA is projected to grow in the mid-teens, while Europe Steel Group’s performance is expected to be modestly higher, excluding CO2 credits.

CRS’s Price Performance, Valuations & EstimatesCarpenter Technology’s shares have surged 114.8% over the past year compared with the industry’s growth of 104.8%. In comparison, the Zacks Basic Materials sector and the S&P 500 have returned 28.3% and 26.5%, respectively. 

Image Source: Zacks Investment Research

CRS is currently trading at a forward price/sales ratio of 8.69 compared with the industry's 2.96. 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2026 sales is pegged at $3.12 billion, indicating a 8.7% year-over-year jump. The consensus mark for the year’s earnings is pegged at $10.56 per share, indicating a year-over-year rise of 41.2%.

The Zacks Consensus Estimate for fiscal 2027 sales implies 8.2% year-over-year growth and the same for earnings suggests a rise of 17.2%.

EPS estimates for fiscal 2026 and 2027 have moved north over the past 60 days.

Image Source: Zacks Investment Research

CRS currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.