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Carpenter Technology's Q1 adjusted EPS of $2.43 beat estimates and rose from $1.67 last year.
Quarterly revenue grew 2.2% year over year to $734 million, topping consensus expectations.
Gross margin expanded to 29.5%, with record operating income fueled by product mix and efficiency gains.
Carpenter Technology Corporation (CRS - Free Report) reported adjusted earnings of $2.43 per share for first-quarter fiscal 2026, beating the Zacks Consensus Estimate of $2.13. It had posted adjusted earnings of $1.73 in the year-ago quarter. The upside was driven by ongoing improvements in the product mix and expanding operating efficiencies.
Including one-time items. earnings per share were $2.43 in the quarter compared with $1.67 in the year-ago quarter.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Net revenues increased 2.2% year over year to $734 million in the reported quarter. The figure beat the Zacks Consensus Estimate of $729 million.
CRS witnessed a year-over-year revenue increase of 11% in the Aerospace and Defense end-use market. Revenues in the Energy end-market were up 7.9%. The metric for the Medical end-use markets was down 16.1%. Revenues in the Distribution markets decreased 16%, whereas Industrial and Consumer end-use markets revenues were up 3.6%. The Transportation end-use market’s revenues fell 15.2%.
CRS’s Q1 Operational Results
The cost of goods sold in first-quarter fiscal 2026 moved down 4.4% year over year to $517 million. Gross profit increased 22.7% year over year to $216 million. The gross margin came in at 29.5% compared with the prior-year quarter’s 24.6%.
Adjusted operating income in the reported quarter was a record $153 million compared with the prior-year quarter’s $117 million. Adjusted operating margin in the quarter under review was 20.9% compared with 16.3% in the year-ago quarter.
Carpenter Technology’s Q1 Segmental Performance
The Specialty Alloys Operations segment reported sales of $660 million compared with the prior-year quarter’s $645 million. We predicted the segment’s sales to be $688 million. The segment sold 44,750 pounds compared with the year-ago quarter’s 50,100 pounds. The reported figure missed our estimate of 47,378 pounds. The segment posted an operating profit of $171 million compared with the prior-year quarter’s $135 million. Our estimate for the segment’s operating profit was $165 million.
The Performance Engineered Products’ net sales fell 7.1% year over year to $94 million. The reported figure missed our estimate of $104 million. The segment sold 2,284 pounds compared with the year-ago quarter’s 2,634 pounds. It was lower than our projection of 2,674 pounds. The segment reported an operating profit of $9.4 million, up 28.8% year over year. Our estimate for the segment’s operating profit was $11.2 million.
CRS’ Cash Flow & Balance Sheet Updates
Carpenter Technology ended first-quarter fiscal 2026 with cash and cash equivalents of $208 million compared with $315.5 million at the end of fiscal 2025. The long-term debt was $695.7 million at the end of the quarter compared with $695.4 million as of the end of fiscal 2025.
Cash flow from operating activities was $39 million in the quarter under review compared with $40 million in the prior-year quarter.
Carpenter Technology’s Guidance for FY26
Carpenter Technology expects operating income of $660-$700 million for fiscal 2026. This indicates 30% year-over-year growth at mid-point.
It expects the fiscal second-quarter operating income to be $152-$156 million.
CRS’s Share Price Performance
Shares of the company have gained 93.9% in the past year compared with the industry’s growth of 70%.
Commercial Metals Company (CMC - Free Report) reported earnings per share of $1.35 for the fourth quarter of fiscal 2025 (ended Aug. 31, 2025) compared with 90 cents in the year-ago quarter. Adjusted for one-time items, earnings came in at $1.37. Commercial Metals’ bottom line beat the Zacks Consensus Estimate of $1.32.
The company’s net revenues in the reported quarter were around $2.11 billion, up 5.9% year over year. The reported figure beat the Zacks Consensus Estimate of $2.04 billion.
Worthington Steel, Inc. (WS - Free Report) reported first-quarter fiscal 2026 adjusted earnings of 77 cents, beating the Zacks Consensus Estimate of 72 cents. Worthington Steel posted earnings of 56 cents in the year-ago quarter.
Worthington Steel’s net revenues in the reported quarter were around $873 million, up 5% year over year. The reported figure beat the Zacks Consensus Estimate of $736 million.
Steel - Specialty Stock Awaiting Results
Metallus Inc. (MTUS - Free Report) is scheduled to release third-quarter fiscal 2025 results on Nov. 6. The Zacks Consensus Estimate for Metallus’s third-quarter fiscal 2025 earnings is pegged at 17 cents per share. MTUS reported a loss of 9 cents in the year-ago quarter. The Zacks Consensus Estimate for Metallus’ top line is pegged at $288 million, indicating growth of 26.8% from the prior-year reported figure.
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Carpenter Technology Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Carpenter Technology Corporation (CRS - Free Report) reported adjusted earnings of $2.43 per share for first-quarter fiscal 2026, beating the Zacks Consensus Estimate of $2.13. It had posted adjusted earnings of $1.73 in the year-ago quarter. The upside was driven by ongoing improvements in the product mix and expanding operating efficiencies.
Including one-time items. earnings per share were $2.43 in the quarter compared with $1.67 in the year-ago quarter.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Carpenter Technology Corporation price-consensus-eps-surprise-chart | Carpenter Technology Corporation Quote
Net revenues increased 2.2% year over year to $734 million in the reported quarter. The figure beat the Zacks Consensus Estimate of $729 million.
CRS witnessed a year-over-year revenue increase of 11% in the Aerospace and Defense end-use market. Revenues in the Energy end-market were up 7.9%. The metric for the Medical end-use markets was down 16.1%. Revenues in the Distribution markets decreased 16%, whereas Industrial and Consumer end-use markets revenues were up 3.6%. The Transportation end-use market’s revenues fell 15.2%.
CRS’s Q1 Operational Results
The cost of goods sold in first-quarter fiscal 2026 moved down 4.4% year over year to $517 million. Gross profit increased 22.7% year over year to $216 million. The gross margin came in at 29.5% compared with the prior-year quarter’s 24.6%.
Adjusted operating income in the reported quarter was a record $153 million compared with the prior-year quarter’s $117 million. Adjusted operating margin in the quarter under review was 20.9% compared with 16.3% in the year-ago quarter.
Carpenter Technology’s Q1 Segmental Performance
The Specialty Alloys Operations segment reported sales of $660 million compared with the prior-year quarter’s $645 million. We predicted the segment’s sales to be $688 million. The segment sold 44,750 pounds compared with the year-ago quarter’s 50,100 pounds. The reported figure missed our estimate of 47,378 pounds. The segment posted an operating profit of $171 million compared with the prior-year quarter’s $135 million. Our estimate for the segment’s operating profit was $165 million.
The Performance Engineered Products’ net sales fell 7.1% year over year to $94 million. The reported figure missed our estimate of $104 million. The segment sold 2,284 pounds compared with the year-ago quarter’s 2,634 pounds. It was lower than our projection of 2,674 pounds. The segment reported an operating profit of $9.4 million, up 28.8% year over year. Our estimate for the segment’s operating profit was $11.2 million.
CRS’ Cash Flow & Balance Sheet Updates
Carpenter Technology ended first-quarter fiscal 2026 with cash and cash equivalents of $208 million compared with $315.5 million at the end of fiscal 2025. The long-term debt was $695.7 million at the end of the quarter compared with $695.4 million as of the end of fiscal 2025.
Cash flow from operating activities was $39 million in the quarter under review compared with $40 million in the prior-year quarter.
Carpenter Technology’s Guidance for FY26
Carpenter Technology expects operating income of $660-$700 million for fiscal 2026. This indicates 30% year-over-year growth at mid-point.
It expects the fiscal second-quarter operating income to be $152-$156 million.
CRS’s Share Price Performance
Shares of the company have gained 93.9% in the past year compared with the industry’s growth of 70%.
Carpenter Technology’s Zacks Rank
Carpenter Technology currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Performance
Commercial Metals Company (CMC - Free Report) reported earnings per share of $1.35 for the fourth quarter of fiscal 2025 (ended Aug. 31, 2025) compared with 90 cents in the year-ago quarter. Adjusted for one-time items, earnings came in at $1.37. Commercial Metals’ bottom line beat the Zacks Consensus Estimate of $1.32.
The company’s net revenues in the reported quarter were around $2.11 billion, up 5.9% year over year. The reported figure beat the Zacks Consensus Estimate of $2.04 billion.
Worthington Steel, Inc. (WS - Free Report) reported first-quarter fiscal 2026 adjusted earnings of 77 cents, beating the Zacks Consensus Estimate of 72 cents. Worthington Steel posted earnings of 56 cents in the year-ago quarter.
Worthington Steel’s net revenues in the reported quarter were around $873 million, up 5% year over year. The reported figure beat the Zacks Consensus Estimate of $736 million.
Steel - Specialty Stock Awaiting Results
Metallus Inc. (MTUS - Free Report) is scheduled to release third-quarter fiscal 2025 results on Nov. 6. The Zacks Consensus Estimate for Metallus’s third-quarter fiscal 2025 earnings is pegged at 17 cents per share. MTUS reported a loss of 9 cents in the year-ago quarter. The Zacks Consensus Estimate for Metallus’ top line is pegged at $288 million, indicating growth of 26.8% from the prior-year reported figure.