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CRS delivered Q2 adjusted EPS of $2.33, beating estimates and rising sharply from the prior-year quarter.
Revenues rose 7.5% y/y to $728M, driven by strength in the Aerospace, Defense and Energy markets.
Carpenter Technology posted record adjusted operating income of $155M as margins expanded to 21.3%.
Carpenter Technology Corporation (CRS - Free Report) reported adjusted earnings of $2.33 per share for second-quarter fiscal 2026, beating the Zacks Consensus Estimate of $2.20. It had posted adjusted earnings of $1.66 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 $2.09 in the quarter compared with $1.66 in the year-ago quarter.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Net revenues increased 7.5% year over year to $728 million in the reported quarter. The figure missed the Zacks Consensus Estimate of $729 million.
CRS witnessed a year-over-year revenue increase of 15.3% in the Aerospace and Defense end-use market. Revenues in the Energy end-market rose 19.3%. The metric for the Medical end-use markets moved down 22.3%. Revenues in the Distribution markets decreased 14.1%, whereas Industrial and Consumer end-use market revenues rose 10.1%. The Transportation end-use market’s revenues fell 19.2%
CRS’s Q2 Operational Results
The cost of goods sold in second-quarter fiscal 2026 moved up 2.1% year over year to $510 million. Gross profit increased 23% year over year to $218 million. The gross margin came in at 30% compared with the prior-year quarter’s 26.2%.
Adjusted operating income in the reported quarter was a record $155 million compared with the prior-year quarter’s $119 million. The adjusted operating margin in the quarter under review was 21.3% compared with 17.6% in the year-ago quarter.
Carpenter Technology’s Q2 Segmental Performance
The Specialty Alloys Operations segment reported sales of $662 million compared with the prior-year quarter’s $602 million. We predicted the segment’s sales to be $672 million. The segment sold 46,836 pounds compared with the year-ago quarter’s 44,714 pounds. The reported figure missed our estimate of 44,956 pounds. The segment posted an operating profit of $175 million compared with the prior-year quarter’s $136 million. Our estimate for the segment’s operating profit was $171 million.
The Performance Engineered Products’ net sales fell 12.4% year over year to $83 million. The reported figure missed our estimate of $99 million. The segment sold 2,218 pounds compared with the year-ago quarter’s 2,208 pounds. It was higher than our projection of 2,199 pounds. The segment reported an operating profit of $6.9 million, a dip of 1.4% year over year. Our estimate for the segment’s operating profit was $9.4 million.
CRS’ Cash Flow & Balance Sheet Updates
Carpenter Technology ended second-quarter fiscal 2026 with cash and cash equivalents of $232 million compared with $315.5 million at the end of fiscal 2025. The long-term debt was $690 million at the end of the quarter compared with $695 million as of the end of fiscal 2025.
Cash flow from operating activities was $132 million in the quarter under review compared with $68 million in the prior-year quarter.
Carpenter Technology’s Guidance for FY26
CRS expects operating income of $680-$700 million for fiscal 2026 compared with the prior stated $660-$700 million.
It expects the fiscal third-quarter operating income to be $177-$182 million.
CRS’s Share Price Performance
Shares of the company have surged 66.9% in the past year compared with the industry’s growth of 72.6%.
Commercial Metals Company (CMC - Free Report) reported earnings per share of $1.84 for the first quarter of fiscal 2026 compared with 78 cents in the year-ago quarter. Commercial Metals’ bottom line beat the Zacks Consensus Estimate of $1.55. The company’s net revenues in the reported quarter were $2.12 billion, up 11% year over year. The reported figure beat the Zacks Consensus Estimate of $1.99 billion.
Steel - Specialty Stock Awaiting Results
Metallus Inc. (MTUS - Free Report) is scheduled to release fourth-quarter fiscal 2025 results on Feb. 19. The Zacks Consensus Estimate for Metallus’s fourth-quarter fiscal 2025 earnings is pegged at 5 cents per share. MTUS reported a loss of 8 cents in the year-ago quarter. The Zacks Consensus Estimate for Metallus’ top line is pegged at $290 million, indicating growth of 20% from the prior-year reported figure.
NWPX Infrastructure, Inc. (NWPX - Free Report) is scheduled to release fourth-quarter fiscal 2025 results soon.
The Zacks Consensus Estimate for NWPX Infrastructure’s fourth-quarter fiscal 2025 earnings is pegged at 62 cents per share, indicating a year-over-year dip of 38%. The Zacks Consensus Estimate for NWPX Infrastructure’s top line is pegged at $121.5 million, indicating growth of 1.6% from the prior-year reported figure.
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Carpenter Technology Q2 Earnings Beat Estimates, Revenues Rise 8% Y/Y
Key Takeaways
Carpenter Technology Corporation (CRS - Free Report) reported adjusted earnings of $2.33 per share for second-quarter fiscal 2026, beating the Zacks Consensus Estimate of $2.20. It had posted adjusted earnings of $1.66 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 $2.09 in the quarter compared with $1.66 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 7.5% year over year to $728 million in the reported quarter. The figure missed the Zacks Consensus Estimate of $729 million.
CRS witnessed a year-over-year revenue increase of 15.3% in the Aerospace and Defense end-use market. Revenues in the Energy end-market rose 19.3%. The metric for the Medical end-use markets moved down 22.3%. Revenues in the Distribution markets decreased 14.1%, whereas Industrial and Consumer end-use market revenues rose 10.1%. The Transportation end-use market’s revenues fell 19.2%
CRS’s Q2 Operational Results
The cost of goods sold in second-quarter fiscal 2026 moved up 2.1% year over year to $510 million. Gross profit increased 23% year over year to $218 million. The gross margin came in at 30% compared with the prior-year quarter’s 26.2%.
Adjusted operating income in the reported quarter was a record $155 million compared with the prior-year quarter’s $119 million. The adjusted operating margin in the quarter under review was 21.3% compared with 17.6% in the year-ago quarter.
Carpenter Technology’s Q2 Segmental Performance
The Specialty Alloys Operations segment reported sales of $662 million compared with the prior-year quarter’s $602 million. We predicted the segment’s sales to be $672 million. The segment sold 46,836 pounds compared with the year-ago quarter’s 44,714 pounds. The reported figure missed our estimate of 44,956 pounds. The segment posted an operating profit of $175 million compared with the prior-year quarter’s $136 million. Our estimate for the segment’s operating profit was $171 million.
The Performance Engineered Products’ net sales fell 12.4% year over year to $83 million. The reported figure missed our estimate of $99 million. The segment sold 2,218 pounds compared with the year-ago quarter’s 2,208 pounds. It was higher than our projection of 2,199 pounds. The segment reported an operating profit of $6.9 million, a dip of 1.4% year over year. Our estimate for the segment’s operating profit was $9.4 million.
CRS’ Cash Flow & Balance Sheet Updates
Carpenter Technology ended second-quarter fiscal 2026 with cash and cash equivalents of $232 million compared with $315.5 million at the end of fiscal 2025. The long-term debt was $690 million at the end of the quarter compared with $695 million as of the end of fiscal 2025.
Cash flow from operating activities was $132 million in the quarter under review compared with $68 million in the prior-year quarter.
Carpenter Technology’s Guidance for FY26
CRS expects operating income of $680-$700 million for fiscal 2026 compared with the prior stated $660-$700 million.
It expects the fiscal third-quarter operating income to be $177-$182 million.
CRS’s Share Price Performance
Shares of the company have surged 66.9% in the past year compared with the industry’s growth of 72.6%.
Carpenter Technology’s Zacks Rank
CRS currently carries a Zacks Rank #2 (Buy). 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 $1.84 for the first quarter of fiscal 2026 compared with 78 cents in the year-ago quarter. Commercial Metals’ bottom line beat the Zacks Consensus Estimate of $1.55.
The company’s net revenues in the reported quarter were $2.12 billion, up 11% year over year. The reported figure beat the Zacks Consensus Estimate of $1.99 billion.
Steel - Specialty Stock Awaiting Results
Metallus Inc. (MTUS - Free Report) is scheduled to release fourth-quarter fiscal 2025 results on Feb. 19. The Zacks Consensus Estimate for Metallus’s fourth-quarter fiscal 2025 earnings is pegged at 5 cents per share. MTUS reported a loss of 8 cents in the year-ago quarter. The Zacks Consensus Estimate for Metallus’ top line is pegged at $290 million, indicating growth of 20% from the prior-year reported figure.
NWPX Infrastructure, Inc. (NWPX - Free Report) is scheduled to release fourth-quarter fiscal 2025 results soon.
The Zacks Consensus Estimate for NWPX Infrastructure’s fourth-quarter fiscal 2025 earnings is pegged at 62 cents per share, indicating a year-over-year dip of 38%. The Zacks Consensus Estimate for NWPX Infrastructure’s top line is pegged at $121.5 million, indicating growth of 1.6% from the prior-year reported figure.