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Sep 30
Carpenter Technology Q1 2026 Earnings Report
Carpenter Technology reported record quarterly operating income and expanded operating margins in its Specialty Alloys Operations segment for the first quarter of fiscal year 2026.
Key Takeaways
Carpenter Technology Corporation announced strong financial results for the fiscal first quarter ended September 30, 2025, with record operating income of $153.3 million and earnings per diluted share of $2.43. The Specialty Alloys Operations segment exceeded expectations with a 27 percent year-over-year increase in operating income and a fifteenth consecutive quarterly margin increase.
Delivered record quarterly operating income of $153.3 million, a 31 percent increase year-over-year.
Realized earnings per diluted share of $2.43 for the quarter.
Specialty Alloys Operations segment achieved an operating income of $170.7 million and an adjusted operating margin of 32.0 percent.
Bookings for the Aerospace and Defense end-use market increased by 23 percent sequentially, and several long-term agreements with aerospace customers were completed.
Carpenter Technology
Carpenter Technology
Carpenter Technology Revenue by Segment
Carpenter Technology Revenue by Geographic Location
Revenue by Segment
Specialty Alloys Operations Revenue
CapyFin.comPerformance Engineered Products Revenue
CapyFin.comIntersegment Revenue
CapyFin.comRevenue by Geographic Location
Aerospace and Defense Revenue
CapyFin.comMedical Revenue
CapyFin.comEnergy Revenue
CapyFin.comTransportation Revenue
CapyFin.comIndustrial and Consumer Revenue
CapyFin.comDistribution Revenue
CapyFin.com Forward Guidance
Carpenter Technology anticipates continued growth in fiscal year 2026 and beyond, driven by increased volume, pricing actions, productivity, and market strengthening in key end-use markets.
Positive Outlook
- Anticipate Q2 FY2026 operating income between $152 million to $156 million.
- Expect FY2026 operating income in the range of $660 million to $700 million, a 26% to 33% increase over FY2025.
- Line of sight to the high end of the FY2026 operating income range from increased volume, pricing actions, and productivity.
- Project FY2026 adjusted free cash flow of $240 million to $280 million, net of $175 million to $185 million for brownfield capacity expansion.
- Committed to FY2027 target of $765 million to $800 million in operating income with opportunities to exceed.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text. The outlook is overwhelmingly positive.
- The brownfield capacity expansion project will require significant capital spending ($175 million to $185 million) in FY2026.
- Adjusted free cash flow for Q1 FY2026 was negative, reflecting higher capital expenditures.
- While not explicitly negative, the company's ability to achieve the high end of its guidance depends on successful execution of pricing actions and productivity improvements.
- The company's long-term growth is dependent on continued strengthening of market dynamics and additional capacity coming online.
Revenue & Expenses
Visualization of income flow from segment revenue to net income