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Carpenter Technology
(NYSE:CRS)
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Rating:73Outperform
Price Target:
$562.00
▼(-6.91% Downside)
Action:Upgraded
Date:07/31/26
The score is driven primarily by materially improved financial performance and a strong, guidance-supported earnings outlook, partially offset by a high P/E with minimal dividend support and mixed near-term technicals (below short-term averages). The CEO transition event adds incremental risk but appears mitigated by the return of an experienced prior leader.
Positive Factors
Sustained margin expansion
The SAO segment's long-running margin expansion (18 consecutive quarters, 37.8% SAO margin in Q4) indicates structural cost, mix and operational advantages in high-spec alloys. Durable high margins signal pricing power in aerospace/defense and value-added services that support lasting profitability even with cyclical volumes.
Negative Factors
End‑market concentration and volatility
Heavy exposure to aerospace-adjacent and specialty end markets with pronounced recent swings (medical -30% YoY; energy -22% sequential) creates durable revenue sensitivity. If structural customers remain cautious, order timing and cyclical demand can materially compress throughput, margins, and cash across multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained margin expansion
The SAO segment's long-running margin expansion (18 consecutive quarters, 37.8% SAO margin in Q4) indicates structural cost, mix and operational advantages in high-spec alloys. Durable high margins signal pricing power in aerospace/defense and value-added services that support lasting profitability even with cyclical volumes.
Read all positive factors
Carpenter Technology (CRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.82B
Dividend Yield0.15%
Average Volume (3M)778.51K
Price to Earnings (P/E)49.1
Beta (1Y)1.59
Revenue Growth8.59%
EPS Growth41.34%
CountryUS
Employees4,500
SectorIndustrials
Sector Strength72
IndustrySteel
Share Statistics
EPS (TTM)10.59
Shares Outstanding49,685,610
10 Day Avg. Volume558,558
30 Day Avg. Volume778,510
Financial Highlights & Ratios
PEG Ratio1.41
Price to Book (P/B)13.85
Price to Sales (P/S)9.87
P/FCF Ratio85.13
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$629.57Price Target Upside4.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)13.27
Revenue Forecast (FY)$3.49B
Carpenter Technology Business Overview & Revenue Model
Company Description
Carpenter Technology Corporation (CRS) is a U.S.-based specialty materials company that develops, manufactures, and distributes high-performance alloys and engineered materials. The company serves end markets that require demanding performance cha...
How the Company Makes Money
Carpenter Technology makes money primarily by manufacturing and selling specialty alloy materials and related engineered products to customers that need high-performance, specification-driven metals. Revenue is generated from (1) product sales of ...
Carpenter Technology Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive performance and outlook: record quarterly and annual profitability, robust cash generation, an aggressive but balanced capital-return program, and confident multi-year guidance supported by an on-budget/on-schedule brownfield expansion. Notable near-term weaknesses include a sharp YoY decline in medical revenue, volatility in energy (IGT) sales, some YoY weakness in the PEP segment, and product-mix pressure lowering average selling price per pound. Management emphasized conservative but achievable guidance and asserted confidence in continued margin and cash-flow expansion, while acknowledging project complexity and some cautious ordering among structural customers.Positive Updates
Record Quarterly and Annual Profitability
Q4 operating income of $206.9M (an 11% increase vs. prior quarter) and a record fiscal year 2026 adjusted operating income of $702M, up 34% year-over-year and more than 5x fiscal year 2023.
Negative Updates
Medical End-Use Sales Decline Year-over-Year
Medical end-use market sales were down 30% year-over-year in Q4, although they improved sequentially (up 5% sequentially) — first sequential increase in the fiscal year.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly and Annual Profitability
Q4 operating income of $206.9M (an 11% increase vs. prior quarter) and a record fiscal year 2026 adjusted operating income of $702M, up 34% year-over-year and more than 5x fiscal year 2023.
Read all positive updates
Company Guidance
Carpenter guided Q1 FY27 operating income of $195–200 million (driven by SAO operating income of $218–222 million, PEP $6–7 million and ~ $29 million of corporate costs), SAO Q1 implied +28–30% YoY; full‑year FY27 operating income $850–880 million (≈21–25% above FY26’s $702 million) and adjusted free cash flow $400–430 million. Management reiterated the Athens brownfield is on budget/on schedule to start early FY28, will be OI‑accretive in FY28 and targets roughly $150 million of incremental OI by 2030. For context they reported Q4 FY26 operating income $206.9 million, SAO Q4 adjusted margin 37.8% and SAO Q4 OI $229.7 million; FY26 cash from operations $605 million and adjusted FCF $362.3 million; FY26 capex $242.7 million (Q4 capex $85.1 million); FY26 repurchases $179.1 million (total $281 million of $400 million authorization); liquidity $892.4 million (cash $393.3M, $499.1M revolver availability) and net debt/EBITDA well below 1x.Carpenter Technology Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
73
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.12B | 2.88B | 2.76B | 2.55B | 1.84B |
| Gross Profit | 955.50M | 768.60M | 584.30M | 337.30M | 149.80M |
| EBITDA | 841.10M | 670.40M | 411.60M | 267.60M | 113.20M |
| Net Income | 529.80M | 376.00M | 186.50M | 56.40M | -49.10M |
Balance Sheet | |||||
| Total Assets | 3.84B | 3.49B | 3.29B | 3.05B | 2.93B |
| Cash, Cash Equivalents and Short-Term Investments | 393.30M | 315.50M | 199.10M | 44.50M | 154.20M |
| Total Debt | 690.70M | 738.30M | 741.40M | 745.70M | 744.40M |
| Total Liabilities | 1.61B | 1.60B | 1.66B | 1.66B | 1.60B |
| Stockholders Equity | 2.23B | 1.89B | 1.63B | 1.40B | 1.33B |
Cash Flow | |||||
| Free Cash Flow | 362.30M | 286.10M | 178.30M | -67.60M | -85.30M |
| Operating Cash Flow | 605.00M | 440.40M | 274.90M | 14.70M | 6.00M |
| Investing Cash Flow | -242.70M | -152.90M | -95.90M | -82.30M | -89.10M |
| Financing Cash Flow | -286.80M | -167.10M | -23.30M | -40.10M | -52.80M |
Carpenter Technology Technical Analysis
Positive
603.69
Price Trends
549.13
Negative
481.10
Positive
406.58
Positive
Market Momentum
-6.05
Positive
45.97
Neutral
35.59
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 603.69 is above the 20-day moving average (MA) of 567.78, above the 50-day MA of 549.13, and above the 200-day MA of 406.58, indicating a neutral trend. The MACD of -6.05 indicates Positive momentum. The RSI at 45.97 is Neutral, neither overbought nor oversold. The STOCH value of 35.59 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 46 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $25.58B | 60.46 | 24.23% | ― | 2.93% | 5.01% | |
74 Outperform | $14.69B | 17.01 | 27.33% | 1.33% | 14.81% | 21.29% | |
73 Outperform | $25.82B | 49.07 | 25.87% | 0.13% | 8.59% | 41.34% | |
73 Outperform | $4.35B | 21.89 | 14.87% | 0.56% | 5.68% | -23.91% | |
69 Neutral | $2.75B | 17.62 | 15.80% | 1.36% | 19.72% | 63.76% | |
65 Neutral | $5.27B | 25.98 | 9.70% | 0.50% | 6.63% | -24.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
CRS
Carpenter Technology
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286.26
111.28%
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Carpenter Technology Corporate Events
Executive/Board Changes
Carpenter Technology Reinstates Former CEO After Sudden Loss
Negative
Jul 28, 2026
Carpenter Technology Corporation, a pioneer in high-performance specialty nickel, cobalt, and titanium alloys, provides advanced material process solutions for critical applications in aerospace and defense, medical, transportation, energy, and in...
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.