Carpenter Technology Corp (CRS)
NYSE:CRS
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Carpenter Technology
(NYSE:CRS)
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Rating:78Outperform
Price Target:
$492.00
▲(14.10% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by strong recent financial performance and bullish technicals, reinforced by an earnings call that raised guidance and highlighted sustained margin and demand momentum. The main restraint is valuation, with a high P/E and low dividend yield, plus some cyclical and segment-specific volatility risks.
Positive Factors
Sustained Margin Expansion
Sixteen consecutive quarters of SAO margin expansion, driven by pricing, product mix and productivity, indicate durable margin economics in high‑value alloys. This persistent margin improvement suggests structural competitive advantages in metallurgy and customer qualification that support long-term profitability.
Negative Factors
Cyclicality & Past Volatility
The business serves cyclical end markets (aerospace, energy, medical) and has delivered negative earnings and uneven free cash flow historically. This structural cyclicality means current strength can reverse with order timing, creating persistent earnings and cash conversion volatility across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Margin Expansion
Sixteen consecutive quarters of SAO margin expansion, driven by pricing, product mix and productivity, indicate durable margin economics in high‑value alloys. This persistent margin improvement suggests structural competitive advantages in metallurgy and customer qualification that support long-term profitability.
Read all positive factors
Carpenter Technology (CRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.48B
Dividend Yield0.24%
Average Volume (3M)727.24K
Price to Earnings (P/E)37.4
Beta (1Y)1.53
Revenue Growth2.40%
EPS Growth81.54%
CountryUS
Employees4,600
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)2.33
Shares Outstanding49,809,715
10 Day Avg. Volume785,578
30 Day Avg. Volume727,236
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)7.35
Price to Sales (P/S)4.82
P/FCF Ratio48.49
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue7.52
Enterprise Value/Gross Profit26.08
Enterprise Value/Ebitda30.25
Forecast
1Y Price Target
$399.83Price Target Upside-7.28% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)10.26
Revenue Forecast (FY)$3.11B
Carpenter Technology Business Overview & Revenue Model
Company Description
Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Opera...
How the Company Makes Money
Carpenter Technology makes money primarily by selling specialty alloy products and materials services to industrial customers. Its revenue model is largely volume- and mix-driven: it produces high-performance alloys (including specialty stainless,...
Carpenter Technology Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial momentum: record quarterly operating income, sustained SAO margin expansion, significant aerospace order momentum, favorable pricing via long-term agreements, robust cash generation, strengthened liquidity and a brownfield expansion on schedule. Weaknesses were concentrated and manageable: sequential sales softness (timing/mix), a notable shortfall in the PEP/medical distribution channel, and near-term volatility in defense and energy order timing. Management raised FY2026 guidance and reiterated confidence in continued margin and earnings expansion, while noting some quarter-to-quarter variability driven by mix and industry supply constraints.Positive Updates
Record Quarterly Operating Income
Operating income of $155.2M in the quarter, a record and a 31% increase year-over-year. Adjusted diluted EPS was $2.33 for the quarter.
Negative Updates
Sequential Sales Decline
Net sales excluding surcharge were down 2% sequentially despite higher sequential volume (sales were impacted by available operating days, planned maintenance and customer holiday schedules).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Operating Income
Operating income of $155.2M in the quarter, a record and a 31% increase year-over-year. Adjusted diluted EPS was $2.33 for the quarter.
Read all positive updates
Company Guidance
Management raised fiscal 2026 operating income guidance to $680–$700 million (up from $660–$700), implying ~30%–33% growth vs. record FY2025, and reaffirmed the prior FY2027 target of $765–$800 million with intent to exceed it; near-term operating income build for the upcoming quarter was outlined as SAO $195–$200M, PEP ≈$7M and corporate ≈$25M (total ~$177–$182M). Key operating metrics: Q2 operating income was a record $155.2M (+31% YoY) with adjusted EPS $2.33; SAO Q2 net sales (ex-surcharge) were $527.3M (+10% YoY, +5% volume YoY) with a record SAO adjusted operating margin of 33.1% and SAO operating income $174.6M; PEP Q2 sales were $77.2M (‑11% seq., ‑10% YoY) with operating income ~$0.9M. Financial and cash guidance: Q2 cash from operations $132.2M, Q2 capex $46.3M and adjusted free cash flow $85.9M, with at least $280M of adjusted FCF expected for FY2026; full‑year capex $300–$315M including $175–$185M for the brownfield expansion; liquidity totaled $730.8M (cash $231.9M + $498.9M revolver), net debt/EBITDA well below 1x, and $32.1M of buybacks in the quarter ($183.1M of $400M authorization to date). Tax and cost assumptions: Q2 effective tax rate 19% (discrete benefit), expect 22%–23% for the balance of the year and full‑year near the low end of prior 21%–23% guidance; corporate costs targeted at about $25M.Carpenter Technology Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
79
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.94B | 2.88B | 2.76B | 2.55B | 1.84B | 1.48B |
| Gross Profit | 849.50M | 768.60M | 584.30M | 337.30M | 149.80M | 1.00M |
| EBITDA | 732.40M | 670.40M | 411.60M | 267.60M | 113.20M | -140.70M |
| Net Income | 434.90M | 376.00M | 186.50M | 56.40M | -49.10M | -229.60M |
Balance Sheet | ||||||
| Total Assets | 3.50B | 3.49B | 3.29B | 3.05B | 2.93B | 2.97B |
| Cash, Cash Equivalents and Short-Term Investments | 231.90M | 315.50M | 199.10M | 44.50M | 154.20M | 287.40M |
| Total Debt | 698.70M | 738.30M | 741.40M | 745.70M | 744.40M | 739.00M |
| Total Liabilities | 1.52B | 1.60B | 1.66B | 1.66B | 1.60B | 1.58B |
| Stockholders Equity | 1.99B | 1.89B | 1.63B | 1.40B | 1.33B | 1.39B |
Cash Flow | ||||||
| Free Cash Flow | 316.70M | 286.10M | 178.30M | -67.60M | -85.30M | 149.50M |
| Operating Cash Flow | 503.70M | 440.40M | 274.90M | 14.70M | 6.00M | 250.00M |
| Investing Cash Flow | -185.60M | -152.90M | -95.90M | -82.30M | -89.10M | -78.90M |
| Financing Cash Flow | -245.20M | -167.10M | -23.30M | -40.10M | -52.80M | -76.10M |
Carpenter Technology Technical Analysis
Positive
431.21
Price Trends
379.57
Positive
351.98
Positive
307.91
Positive
Market Momentum
9.13
Negative
63.10
Neutral
78.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRS, the sentiment is Positive. The current price of 431.21 is above the 20-day moving average (MA) of 388.92, above the 50-day MA of 379.57, and above the 200-day MA of 307.91, indicating a bullish trend. The MACD of 9.13 indicates Negative momentum. The RSI at 63.10 is Neutral, neither overbought nor oversold. The STOCH value of 78.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRS.
Carpenter Technology Risk Analysis
Carpenter Technology disclosed 23 risk factors in its most recent earnings report. Carpenter Technology reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Carpenter Technology Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $21.48B | 37.45 | 22.99% | 0.24% | 2.40% | 81.54% | |
78 Outperform | $4.06B | 19.10 | 26.34% | 0.67% | 1.55% | 701.41% | |
74 Outperform | $13.41B | 16.84 | 27.46% | 0.85% | 15.71% | 29.60% | |
70 Outperform | $2.74B | 15.14 | 11.58% | 1.27% | 7.43% | 148.83% | |
69 Neutral | $21.86B | 39.98 | 22.69% | ― | 7.75% | 6.84% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $6.21B | 45.18 | 10.98% | 0.33% | 1.19% | -7.78% |
* Industrials Sector Average
CRS
Carpenter Technology
431.21
260.91
153.21%
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Carpenter Technology Corporate Events
Business Operations and StrategyExecutive/Board Changes
Carpenter Technology Details Planned CEO Leadership Transition
Positive
Feb 17, 2026
On February 12, 2026, Carpenter Technology announced that Chief Executive Officer Tony R. Thene had submitted his resignation from the CEO role effective July 1, 2026, and would transition to Executive Chairman of the Board on that date, maintaini...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.