Carpenter Technology Corp (CRS)
NYSE:CRS
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Carpenter Technology
(NYSE:CRS)
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Rating:74Outperform
Price Target:
$630.00
▲(41.35% Upside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by strong financial execution (material profitability and leverage improvement) and a very positive earnings call with raised operating-income and free-cash-flow guidance. Offsetting factors are an overheated technical setup (RSI/Stoch elevated) and a demanding valuation (high P/E and minimal dividend support).
Positive Factors
Margin Expansion & Profitability
Carpenter has delivered a multi-year profitability turnaround with sustained margin expansion, notably exceptional SAO margins. Durable margin strength reflects pricing power, value-added metallurgy, and productivity gains, underpinning earnings resilience across business cycles and supporting reinvestment.
Negative Factors
Modest Revenue Growth
Top-line expansion remains modest, meaning overall earnings gains have depended more on margin improvement than volume. This concentration on margin over volume can limit long-term scale benefits, and makes results more sensitive to margin pressure from raw material or mix shifts over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion & Profitability
Carpenter has delivered a multi-year profitability turnaround with sustained margin expansion, notably exceptional SAO margins. Durable margin strength reflects pricing power, value-added metallurgy, and productivity gains, underpinning earnings resilience across business cycles and supporting reinvestment.
Read all positive factors
Carpenter Technology (CRS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.90B
Dividend Yield0.24%
Average Volume (3M)621.11K
Price to Earnings (P/E)58.6
Beta (1Y)1.51
Revenue Growth3.72%
EPS Growth34.03%
CountryUS
Employees4,600
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)9.57
Shares Outstanding49,685,610
10 Day Avg. Volume702,921
30 Day Avg. Volume621,113
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 Cap0.85
Enterprise Value/Revenue7.83
Enterprise Value/Gross Profit26.33
Enterprise Value/Ebitda30.35
Forecast
1Y Price Target
$467.00Price Target Upside4.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)10.58
Revenue Forecast (FY)$3.13B
Carpenter Technology Business Overview & Revenue Model
Company Description
Carpenter Technology Corporation is a global leader in the production and supply of high-performance metallic materials, serving markets across the United States, Europe, Asia Pacific, Mexico, and Canada. The company's operations are structured in...
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:Apr 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
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.Positive Updates
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.
Negative Updates
Medical End-Use Weakness
Medical sales declined 29% year-over-year and 9% sequentially, driven by softness in specific titanium products and distribution customers; this weighed on PEP, which reported net sales down 6% YoY (though up 17% sequentially).
Read all updates
Q3-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management raised fiscal 2026 operating‑income guidance — now implying at least a 33% increase versus record FY2025 — and said they will provide updated fiscal 2027 guidance on the next call; key numerical guidance includes SAO continuing to drive results with Q4 SAO operating income expected in the high‑$200M range and SAO at a record 35.6% adjusted operating margin this quarter, fiscal‑2026 adjusted free cash flow of at least $350M (to date $207.3M; cash from operations to date $364.9M), capital expenditures finishing around $260M (to date $157.6M; Q3 capex $68.7M), corporate costs of $25–$26M, an effective tax rate near 23% excluding discrete items (Q3 ETR was 21%), continued share repurchases ($133.9M repurchased in FY2026; $235.8M total vs $400M authorization), and ample liquidity of $793.8M (cash $294.8M and $499M available on the credit facility) with net debt/EBITDA well below 1x.Carpenter Technology Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.03B | 2.88B | 2.76B | 2.55B | 1.84B | 1.48B |
| Gross Profit | 900.50M | 768.60M | 584.30M | 337.30M | 149.80M | 1.00M |
| EBITDA | 781.10M | 670.40M | 411.60M | 267.60M | 113.20M | -140.70M |
| Net Income | 479.10M | 376.00M | 186.50M | 56.40M | -49.10M | -229.60M |
Balance Sheet | ||||||
| Total Assets | 3.68B | 3.49B | 3.29B | 3.05B | 2.93B | 2.97B |
| Cash, Cash Equivalents and Short-Term Investments | 294.80M | 315.50M | 199.10M | 44.50M | 154.20M | 287.40M |
| Total Debt | 699.30M | 738.30M | 741.40M | 745.70M | 744.40M | 739.00M |
| Total Liabilities | 1.61B | 1.60B | 1.66B | 1.66B | 1.60B | 1.58B |
| Stockholders Equity | 2.07B | 1.89B | 1.63B | 1.40B | 1.33B | 1.39B |
Cash Flow | ||||||
| Free Cash Flow | 407.40M | 286.10M | 178.30M | -67.60M | -85.30M | 149.50M |
| Operating Cash Flow | 623.00M | 440.40M | 274.90M | 14.70M | 6.00M | 250.00M |
| Investing Cash Flow | -214.30M | -152.90M | -95.90M | -82.30M | -89.10M | -78.90M |
| Financing Cash Flow | -264.20M | -167.10M | -23.30M | -40.10M | -52.80M | -76.10M |
Carpenter Technology Technical Analysis
Positive
445.69
Price Trends
446.69
Positive
409.69
Positive
349.85
Positive
Market Momentum
30.04
Negative
79.99
Negative
89.07
Negative
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 445.69 is below the 20-day moving average (MA) of 473.35, below the 50-day MA of 446.69, and above the 200-day MA of 349.85, indicating a bullish trend. The MACD of 30.04 indicates Negative momentum. The RSI at 79.99 is Negative, neither overbought nor oversold. The STOCH value of 89.07 is Negative, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.53B | 14.21 | 24.53% | 0.67% | 4.58% | 556.92% | |
76 Outperform | $15.27B | 17.79 | 28.67% | 0.85% | 11.54% | 38.42% | |
74 Outperform | $27.90B | 58.60 | 24.41% | 0.24% | 3.72% | 34.03% | |
74 Outperform | $27.09B | 63.39 | 24.23% | ― | 2.93% | 5.01% | |
70 Outperform | $2.94B | 26.24 | 11.58% | 1.27% | 14.99% | 86.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $5.57B | 26.95 | 9.70% | 0.33% | 6.63% | -24.56% |
* Industrials Sector Average
CRS
Carpenter Technology
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125.57%
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Carpenter Technology Corporate Events
Executive/Board Changes
Carpenter Technology Announces Leadership Transition and Board Expansion
Positive
Apr 17, 2026
On April 13, 2026, Carpenter Technology’s board expanded from 11 to 12 directors and appointed President and Chief Operating Officer Brian J. Malloy as a Class III director, effective July 1, 2026, with a term running through the 2028 annual...
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.