Carpenter Technology (CRS) AI Stock Analysis

• Market Cap: $15.72B
• Dividend Yield: 0.25%
• Average Volume (3M): 925.53K
• Price to Earnings (P/E): 38.6
• Beta (1Y): 1.55
• Revenue Growth: 2.40%
• EPS Growth: 81.54%
• Country: US
• Employees: 4,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 2.43
• Shares Outstanding: 49,818,820
• 10 Day Avg. Volume: 1,228,699
• 30 Day Avg. Volume: 925,532
• PEG Ratio: 0.37
• Price to Book (P/B): 7.35
• Price to Sales (P/S): 4.82
• P/FCF Ratio: 48.49
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 4.45
• Enterprise Value/Gross Profit: 15.92
• Enterprise Value/Ebitda: 18.09
• 1Y Price Target: $383.60
• Price Target Upside: 21.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 9.84
• Revenue Forecast (FY): $3.12B

• Rating: 74 Outperform
• Price Target: $352.00 ▲(11.47% Upside)

Carpenter Technology's overall stock score is driven by strong financial performance and a positive earnings call, indicating robust demand and effective pricing strategies. However, the high valuation and overbought technical indicators suggest caution. The stock's strong position in the Aerospace and Defense markets supports a positive outlook, but attention to valuation and market conditions is advised.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong demand and market expansion, particularly in the aerospace and defense sectors, supporting long-term business sustainability.

Operating Margins

Improved operating margins reflect efficient cost management and operational effectiveness, enhancing profitability and competitive positioning.

Aerospace and Defense Demand

Strong demand in aerospace and defense markets supports revenue stability and growth, driven by confidence in major aircraft manufacturers' production rates.

Negative Factors

Medical Market Decline

The decline in medical market sales could impact diversification and revenue stability, necessitating strategic adjustments to mitigate volatility.

Free Cash Flow Decline

A decline in free cash flow growth may limit future investment capabilities and debt reduction efforts, affecting long-term financial flexibility.

Energy Market Sales Fluctuations

Fluctuations in energy market sales introduce uncertainty in revenue streams, highlighting the need for strategic focus to stabilize this segment.

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 Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts. It serves aerospace, defense, medical, transportation, energy, industrial, and consumer markets. The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.

How the Company Makes Money

Carpenter Technology generates revenue through the sale of its specialty alloys and engineered products to various industries, with a significant focus on aerospace and medical markets. The company employs a diversified revenue model that includes direct sales to original equipment manufacturers (OEMs) and distributors. Key revenue streams comprise the sale of raw materials, custom manufacturing services, and powder metal products. Additionally, Carpenter Technology benefits from long-term contracts and partnerships with major companies in the aerospace and defense sectors, which provide stability and predictable revenue. The company's investments in research and development also enable it to innovate and offer new products that meet the evolving needs of its customers, further contributing to its earnings. Market trends, such as the increasing demand for lightweight materials in aerospace and automotive applications, also bolster Carpenter's financial performance.

Carpenter Technology Financial Statement Overview

Summary

Carpenter Technology exhibits strong financial health with robust revenue growth and profitability metrics. The company has effectively managed its leverage, maintaining a stable balance sheet. While cash flow generation is solid, attention to free cash flow growth is necessary to sustain long-term financial stability.

Income Statement

Carpenter Technology has demonstrated strong revenue growth with a 56% increase in TTM (Trailing-Twelve-Months), indicating robust demand and market expansion. The company maintains healthy profitability with a gross profit margin of 27.95% and a net profit margin of 14.30% in TTM, reflecting efficient cost management and operational effectiveness. EBIT and EBITDA margins are also strong at 19.71% and 24.60% respectively, showcasing solid operational performance. However, the rapid revenue growth may pose challenges in maintaining these margins if costs rise or market conditions change.

Balance Sheet

The balance sheet of Carpenter Technology is stable with a manageable debt-to-equity ratio of 0.36 in TTM, indicating prudent financial leverage. The return on equity (ROE) is impressive at 22.68%, highlighting effective use of shareholder funds to generate profits. The equity ratio stands at 56.18%, suggesting a strong equity base relative to total assets. While the company has reduced its debt levels over time, maintaining this trajectory will be crucial to mitigate financial risks.

Cash Flow

Carpenter Technology's cash flow position is solid, with an operating cash flow to net income ratio of 1.17 in TTM, indicating strong cash generation relative to earnings. However, the free cash flow growth rate has declined by 5.84%, which may impact future investment capabilities. The free cash flow to net income ratio is healthy at 0.61, suggesting good conversion of profits into cash. Continued focus on improving free cash flow will be essential to support growth and debt reduction.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.89B	2.88B	2.76B	2.55B	1.84B	1.48B
Gross Profit	808.70M	768.60M	584.30M	337.30M	149.80M	1.00M
EBITDA	711.60M	670.40M	411.60M	267.60M	113.20M	-140.70M
Net Income	413.70M	376.00M	186.50M	56.40M	-49.10M	-229.60M
Balance Sheet
Total Assets	3.40B	3.49B	3.29B	3.05B	2.93B	2.97B
Cash, Cash Equivalents and Short-Term Investments	208.00M	315.50M	199.10M	44.50M	154.20M	287.40M
Total Debt	704.20M	738.30M	741.40M	745.70M	744.40M	739.00M
Total Liabilities	1.49B	1.60B	1.66B	1.66B	1.60B	1.58B
Stockholders Equity	1.91B	1.89B	1.63B	1.40B	1.33B	1.39B
Cash Flow
Free Cash Flow	269.40M	286.10M	178.30M	-67.60M	-85.30M	149.50M
Operating Cash Flow	439.40M	440.40M	274.90M	14.70M	6.00M	250.00M
Investing Cash Flow	-168.60M	-152.90M	-95.90M	-82.30M	-89.10M	-78.90M
Financing Cash Flow	-210.30M	-167.10M	-23.30M	-40.10M	-52.80M	-76.10M

Carpenter Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 315.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 315.78 is above the 20-day moving average (MA) of 281.39, above the 50-day MA of 259.17, and above the 200-day MA of 231.31, indicating a bullish trend. The MACD of 18.66 indicates Negative momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 54.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRS.

Carpenter Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLI	78 Outperform	$11.91B	16.03	26.06%	0.89%	15.71%	29.60%
CRS	74 Outperform	$15.72B	38.61	23.16%	0.25%	2.40%	81.54%
ATI	74 Outperform	$13.05B	31.12	25.43%	―	7.75%	6.84%
AZZ	73 Outperform	$3.01B	9.64	27.28%	0.71%	1.55%	701.41%
WOR	70 Outperform	$2.73B	25.69	11.50%	1.25%	-39.38%	175.22%
ESAB	68 Neutral	$6.78B	28.20	13.86%	0.32%	1.19%	-7.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Carpenter Technology Corporate Events

Carpenter Technology Reports Record Quarterly Earnings

Carpenter Technology Corporation is a leader in high-performance specialty alloy materials and process solutions, primarily serving the aerospace, defense, medical, and other markets. In its latest earnings report for the first quarter of fiscal year 2026, Carpenter Technology Corporation announced a record quarterly operating income of $153.3 million, marking a 31% increase from the previous year, with earnings per diluted share reaching $2.43. The company also reported $39.2 million in cash generated from operating activities. Notably, the Specialty Alloys Operations segment showed significant growth, with operating income rising to $170.7 million, a 27% increase year-over-year, and an operating margin of 32%. The aerospace and defense market saw a 23% sequential increase in bookings, and the company successfully negotiated several long-term agreements with aerospace customers. Looking forward, Carpenter Technology anticipates continued growth, projecting operating income for fiscal year 2026 to range between $660 million and $700 million, driven by increased volume, pricing actions, and productivity improvements. The company is also committed to its fiscal year 2027 target of $765 million to $800 million in operating income, supported by strengthening market dynamics and additional capacity expansions.

Carpenter Technology Reports Record Earnings and Optimistic Outlook

Carpenter Technology’s latest earnings call painted a picture of robust performance and strategic success, particularly in the Aerospace and Defense sectors. The company reported record earnings, supported by effective pricing strategies and expanding margins, despite facing challenges in the medical market. The overall sentiment was positive, with confidence in achieving high-end guidance targets.

Carpenter Technology Holds Annual Stockholders Meeting

On October 7, 2025, Carpenter Technology Corporation held its Annual Meeting of Stockholders, where key decisions were made. Three directors, Dr. Viola L. Acoff, Stephen M. Ward, Jr., and Howard H. Yu, were elected to the board for terms expiring in 2028. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for fiscal year 2026 was ratified, and the compensation of the company’s named executive officers was approved in an advisory vote.

The most recent analyst rating on (CRS) stock is a Buy with a $282.00 price target. To see the full list of analyst forecasts on Carpenter Technology stock, see the CRS Stock Forecast page.

Carpenter Technology Announces New Chairman Appointment

On August 12, 2025, Carpenter Technology Corporation announced the retirement of I. Martin Inglis as Chairman of the Board, with Tony R. Thene, the current President and CEO, appointed as his successor. Additionally, Brian J. Malloy was promoted to President and COO, effective October 7, 2025, as part of the company’s succession plans, highlighting Carpenter Technology’s commitment to strategic growth and leadership continuity.

The most recent analyst rating on (CRS) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Carpenter Technology stock, see the CRS Stock Forecast page.

Carpenter Technology Reports Record Fiscal 2025 Results

Carpenter Technology Corporation is a leader in high-performance specialty alloy materials, primarily serving the aerospace, defense, and medical sectors with innovative solutions in nickel, cobalt, and titanium alloys.

Carpenter Technology Corp’s Earnings Call Highlights Robust Growth

Carpenter Technology Corp’s recent earnings call painted a picture of robust financial health and strategic growth, particularly highlighting its achievements in profitability and market dynamics. The sentiment throughout the call was predominantly positive, with the company showcasing significant growth in the Aerospace and Defense segment, despite facing some challenges in the Medical sales sector. The outlook remains optimistic, with substantial growth anticipated in the fiscal year 2026.