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Dec 31, 2025
Carpenter Technology Q2 2026 Earnings Report
Delivered record quarterly operating income and exceeded guidance in key segments.
Key Takeaways
Carpenter Technology posted strong Q2 FY2026 results with record operating income and notable margin expansion, driven by its Specialty Alloys Operations segment.
Achieved record operating income of $155.2 million for the quarter.
Adjusted EPS reached $2.33, up from $1.66 a year ago.
Specialty Alloys Operations segment delivered $174.6 million in operating income and 33.1% adjusted margin.
Bookings in Commercial Aerospace rose 23% sequentially, highlighting robust market demand.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Carpenter Technology raised its full-year operating income and free cash flow guidance, supported by strong demand outlook, especially in aerospace.
Positive Outlook
- Increased FY26 operating income guidance to $680–700 million
- Raised FY26 adjusted free cash flow outlook to at least $280 million
- Expect $177–182 million in operating income for Q3 FY26
- Completed long-term agreements with aerospace customers
- Strong market demand outlook into FY27 and beyond
Challenges Ahead
- Lower revenue in Medical and Transportation end markets compared to prior year
- Intersegment revenues remained negative
- Adjusted free cash flow still below potential due to capex from expansion
- Share repurchase capacity still largely untapped
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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