Carpenter Technology (CRS)
NYSE:CRS
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Earnings Data
Report Date
Jul 23, 2026Before Open (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
3.05Last Year’s EPS
2.21Same Quarter Last Year
Strong Buy
Based on 7 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a strongly positive operating and financial performance: record operating income, exceptional SAO margins and operating income, meaningful top-line growth (10% sales excl. surcharge YoY), and robust cash generation with upgraded free cash flow guidance. These positives are tempered by pockets of weakness and near-term risks — notably a significant decline in medical sales, quarter-to-quarter volatility in certain submarkets (IGT and structural timing), increasing lead-time/expedite pressure as inventories tighten, and some deferred capex timing. Management’s tone is confident, emphasizing sustainable margin expansion, capacity investments (brownfield expansion on schedule), balanced capital allocation (buybacks and dividend), and improving aerospace demand visibility. Overall, the highlights materially outweigh the lowlights, with manageable operational risks and continued strong cash generation supporting a favorable outlook.Company Guidance
Record Quarterly Operating Income
Operating income of $186.5 million in Q3 FY2026, a new company record, up 35% year-over-year and 20% sequentially versus the prior quarter.
Exceptional SAO Performance and Margin Expansion
Specialty Alloys Operations (SAO) delivered net sales of $585 million (up 13% YoY, 11% sequentially) and a record adjusted operating margin of 35.6% (up from 33.1% prior quarter and 29.1% a year ago), producing $208 million of SAO operating income and marking the 17th consecutive quarter of margin expansion.
Top-Line Growth Driven by Volume and Pricing
Total sales excluding raw material surcharge increased 10% year-over-year and 11% sequentially, supported by 15% higher volume YoY and 10% higher volume sequentially; management cites pricing as a continued tailwind.
Strong Profitability and Gross Profit Expansion
Gross profit rose to $251.8 million in the quarter, up 25% year-over-year and 15% sequentially, reflecting improved productivity and favorable product mix.
Robust Cash Generation and Improved Free Cash Flow Outlook
Generated $193.5 million in cash from operating activities in the quarter and $364.9 million year-to-date; adjusted free cash flow was $124.8 million in the quarter and $207.3 million YTD, with management raising FY2026 adjusted free cash flow guidance to at least $350 million.
Capital Allocation: Buybacks and Dividend
Repurchased $133.9 million in shares during fiscal 2026 (bringing total to $235.8 million of the $400 million authorization) while continuing a recurring dividend, supporting a balanced capital allocation approach.
Strong Liquidity and Healthy Balance Sheet
Total liquidity of $793.8 million (cash $294.8 million and $499.0 million available on the credit facility) and net debt-to-EBITDA well below 1x, supporting growth investments and shareholder returns.
End-Use Market Strength — Aerospace, Energy, Engines
Aerospace & defense sales increased 17% YoY and 13% sequentially; energy end-use sales rose 44% YoY and 32% sequentially (driven by industrial gas turbine demand); jet engine sales up 44% YoY and 24% sequentially.
CapEx Investment on Track and Productive Brownfield Expansion
YTD capital spending of $157.6 million, with Q3 capex $68.7 million. The brownfield capacity expansion remains on budget and on schedule; FY2026 CapEx expected to finish around $260 million (timing adjusted).
Operational Execution and Productivity Gains
Management highlighted increased operating time, improved productivity, and higher uptime across facilities as drivers of volume growth and margin expansion, with continued focus on product mix optimization.
CRS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CRS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 29, 2026 | $428.14 | $406.53 | -5.05% |
Jan 29, 2026 | $331.45 | $310.25 | -6.40% |
Oct 23, 2025 | $244.53 | $299.96 | +22.66% |
Jul 31, 2025 | $282.87 | $248.72 | -12.07% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Carpenter Technology (CRS) report earnings?
Carpenter Technology (CRS) is schdueled to report earning on Jul 23, 2026, Before Open (Confirmed).
What is Carpenter Technology (CRS) earnings time?
Carpenter Technology (CRS) earnings time is at Jul 23, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CRS EPS forecast?
CRS EPS forecast for the fiscal quarter 2026 (Q4) is 3.05.