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ATI vs. CRS: Which Specialty Metals Stock Should You Invest in Now?
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Key Takeaways
ATI benefits from titanium and nickel alloys demand tied to aircraft production and defense programs.
Carpenter Technology sees booking growth, pricing power and margin gains from high-value product mix.
CRS invests $400M in expansion, while ATI boosts cash flow and funds alloy capacity upgrades.
ATI Inc. (ATI - Free Report) and Carpenter Technology Corporation (CRS - Free Report) are two prominent players in the specialty metals space, with a focus on high-performance alloys for aerospace, defense and industrial applications.
The specialty metals industry is currently benefiting from strong demand across key end markets, particularly aerospace and defense. Moreover, robust government spending in defense is driving increased consumption of high-performance alloys. The demand scenario is expected to sustain as the aerospace segment is gaining from the pickup in global travel, while in defense, a shift toward next-gen engines is also accelerating the required content.
At the same time, supply chain constraints, tight raw material availability and elevated costs have led to margin pressures in the industry. Strong order backlogs, improved pricing power and a focus on high-value products continue to offer a favorable environment for specialty metals producers.
Let’s dive deep and closely compare the fundamentals of these two prominent specialty metals producers to determine which one is a better investment option in the current environment.
The Case for ATI
ATI is benefiting from its leading position as a supplier of titanium products and nickel-based superalloys, which are essential for next-generation aircraft and defense systems applications. Its expertise across wide jet engine and airframe applications enables demand generation from the production of multiple parts of the aircraft build cycle.
As the commercial aerospace segment witnesses a production ramp in the narrow-body and wide-body platforms, it directly induces higher demand for ATI's proprietary alloys, forgings and specialty materials. A shift toward next-gen engines is also accelerating the required content from ATI per engine. Demand is also up for sustained growth as governmental spend across naval, air, missile and ground systems is increasing, resulting in higher demand for alloys like C103 and titanium 64 across multiple programs.
Amid the challenging macro environment fueled by geopolitical tensions, ATI has implemented structural cost reductions through footprint optimization, productivity improvements and supply-chain efficiencies, while closely aligning capital expenditures and working capital with demand to preserve cash and enhance free cash flow. In the fourth quarter of 2025, cash and cash equivalents totaled $416.7 million. Its adjusted free cash flow was around $379.8 million for the year ended Dec. 28, 2025, up 53% from the previous year. The strong cash flow profile was largely due to cash from operating activities increasing to $614.3 million for the year from $407.2 million in the previous year.
With the benefit of robust free cash flow, the company has undertaken several self-funded capital projects. While some of them have already been completed, the most recent capital spending plan aims to enhance its nickel melt system. The project will include a new primary melt VIM furnace and additional remelt equipment. The company has guided a capex of $220-$240 million in 2026, aimed at proprietary engine alloys and high-margin opportunities.
The Case for Carpenter Technology
Carpenter Technology is witnessing strong demand, as evidenced by booking growth for the past few quarters. The demand growth has stemmed from the ongoing ramp-up in aircraft production as travel demand increases. Hefty investments in the development of the next-gen programs and platforms in the defense sector have positioned CRS for an acceleration in the momentum of Specialty Alloys Operations. The company also derives significant pricing power from its long-term agreements (LTA) and non-LTA business. These factors taken together have led to the company’s positive outlook for fiscal year 2026.
In addition, the company has achieved significant improvements in earnings through a transition in its product mix toward more complicated, high-value, high-performance materials, including titanium and nickel-based alloys. It has also undertaken cost-cutting initiatives by increasing operational efficiencies. Its growth trajectory indicates increased productivity across the company’s facilities.
CRS is also investing in a $400-million brownfield expansion project based in Athens. It is designed to add 9,000 additional tons, marking a 7% rise from Carpenter Technology’s 2019 shipments. The company’s projected guidance for fiscal 2026’s capital expenditure of $300-$315 million includes $175-$185 million for the brownfield capacity expansion. The brownfield capacity expansion project was on schedule and budget as of the second quarter of fiscal 2026.
Carpenter Technology ended the latest second-quarter fiscal 2026 with cash and cash equivalents of $232 million and total liquidity of $730.8 million. Cash flow from operating activities was $132 million in the fiscal second quarter compared with $68 million in the prior-year quarter. It also reported a historically low 0.6X net debt/EBITDA ratio. Its efforts to preserve such liquidity will help enhance flexibility to enable comfortable investments in advanced manufacturing capabilities, including additive manufacturing and premium melt capacity, to capitalize on future demand growth without significant pressure.
Price Performance and Valuation of ATI & CRS
ATI stock has rallied 177% over the past year, while CRS stock has racked up a gain of 111.2%.
Image Source: Zacks Investment Research
CRS is trading at a premium to ATI. The CRS stock is currently trading at a forward price-to-sales ratio of 6.07. On the other hand, ATI is currently trading at 4.04, below CRS.
Image Source: Zacks Investment Research
How the Zacks Consensus Estimate Compares for ATI & CRS
The Zacks Consensus Estimate for ATI’s 2026 sales implies a year-over-year rise of 8.2%. The same for EPS suggests a 29% year-over-year increase. The EPS estimates for 2026 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for CRS’ fiscal 2026 sales and EPS implies a year-over-year rise of 6.7% and 37.4%, respectively. The EPS estimates for fiscal 2026 have been trending northward over the past 60 days.
Both Carpenter Technology and ATI are benefiting from strong demand in aerospace & defense, driven by the recovery in aircraft production and solid aftermarket demand. Improving prices for high-performance alloys also supports performance. Both companies are working to improve profitability through better product mix and operational efficiency. ATI appears to have a slight edge over CRS due to its more attractive valuation and broader exposure across products and end markets.
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ATI vs. CRS: Which Specialty Metals Stock Should You Invest in Now?
Key Takeaways
ATI Inc. (ATI - Free Report) and Carpenter Technology Corporation (CRS - Free Report) are two prominent players in the specialty metals space, with a focus on high-performance alloys for aerospace, defense and industrial applications.
The specialty metals industry is currently benefiting from strong demand across key end markets, particularly aerospace and defense. Moreover, robust government spending in defense is driving increased consumption of high-performance alloys. The demand scenario is expected to sustain as the aerospace segment is gaining from the pickup in global travel, while in defense, a shift toward next-gen engines is also accelerating the required content.
At the same time, supply chain constraints, tight raw material availability and elevated costs have led to margin pressures in the industry. Strong order backlogs, improved pricing power and a focus on high-value products continue to offer a favorable environment for specialty metals producers.
Let’s dive deep and closely compare the fundamentals of these two prominent specialty metals producers to determine which one is a better investment option in the current environment.
The Case for ATI
ATI is benefiting from its leading position as a supplier of titanium products and nickel-based superalloys, which are essential for next-generation aircraft and defense systems applications. Its expertise across wide jet engine and airframe applications enables demand generation from the production of multiple parts of the aircraft build cycle.
As the commercial aerospace segment witnesses a production ramp in the narrow-body and wide-body platforms, it directly induces higher demand for ATI's proprietary alloys, forgings and specialty materials. A shift toward next-gen engines is also accelerating the required content from ATI per engine. Demand is also up for sustained growth as governmental spend across naval, air, missile and ground systems is increasing, resulting in higher demand for alloys like C103 and titanium 64 across multiple programs.
Amid the challenging macro environment fueled by geopolitical tensions, ATI has implemented structural cost reductions through footprint optimization, productivity improvements and supply-chain efficiencies, while closely aligning capital expenditures and working capital with demand to preserve cash and enhance free cash flow. In the fourth quarter of 2025, cash and cash equivalents totaled $416.7 million. Its adjusted free cash flow was around $379.8 million for the year ended Dec. 28, 2025, up 53% from the previous year. The strong cash flow profile was largely due to cash from operating activities increasing to $614.3 million for the year from $407.2 million in the previous year.
With the benefit of robust free cash flow, the company has undertaken several self-funded capital projects. While some of them have already been completed, the most recent capital spending plan aims to enhance its nickel melt system. The project will include a new primary melt VIM furnace and additional remelt equipment. The company has guided a capex of $220-$240 million in 2026, aimed at proprietary engine alloys and high-margin opportunities.
The Case for Carpenter Technology
Carpenter Technology is witnessing strong demand, as evidenced by booking growth for the past few quarters. The demand growth has stemmed from the ongoing ramp-up in aircraft production as travel demand increases. Hefty investments in the development of the next-gen programs and platforms in the defense sector have positioned CRS for an acceleration in the momentum of Specialty Alloys Operations. The company also derives significant pricing power from its long-term agreements (LTA) and non-LTA business. These factors taken together have led to the company’s positive outlook for fiscal year 2026.
In addition, the company has achieved significant improvements in earnings through a transition in its product mix toward more complicated, high-value, high-performance materials, including titanium and nickel-based alloys. It has also undertaken cost-cutting initiatives by increasing operational efficiencies. Its growth trajectory indicates increased productivity across the company’s facilities.
CRS is also investing in a $400-million brownfield expansion project based in Athens. It is designed to add 9,000 additional tons, marking a 7% rise from Carpenter Technology’s 2019 shipments. The company’s projected guidance for fiscal 2026’s capital expenditure of $300-$315 million includes $175-$185 million for the brownfield capacity expansion. The brownfield capacity expansion project was on schedule and budget as of the second quarter of fiscal 2026.
Carpenter Technology ended the latest second-quarter fiscal 2026 with cash and cash equivalents of $232 million and total liquidity of $730.8 million. Cash flow from operating activities was $132 million in the fiscal second quarter compared with $68 million in the prior-year quarter. It also reported a historically low 0.6X net debt/EBITDA ratio. Its efforts to preserve such liquidity will help enhance flexibility to enable comfortable investments in advanced manufacturing capabilities, including additive manufacturing and premium melt capacity, to capitalize on future demand growth without significant pressure.
Price Performance and Valuation of ATI & CRS
ATI stock has rallied 177% over the past year, while CRS stock has racked up a gain of 111.2%.
Image Source: Zacks Investment Research
CRS is trading at a premium to ATI. The CRS stock is currently trading at a forward price-to-sales ratio of 6.07. On the other hand, ATI is currently trading at 4.04, below CRS.
Image Source: Zacks Investment Research
How the Zacks Consensus Estimate Compares for ATI & CRS
The Zacks Consensus Estimate for ATI’s 2026 sales implies a year-over-year rise of 8.2%. The same for EPS suggests a 29% year-over-year increase. The EPS estimates for 2026 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for CRS’ fiscal 2026 sales and EPS implies a year-over-year rise of 6.7% and 37.4%, respectively. The EPS estimates for fiscal 2026 have been trending northward over the past 60 days.
Image Source: Zacks Investment Research
ATI or CRS: Which Stock Holds the Edge?
Both ATI and CRS currently have a Zacks Rank #2 (Buy) each, so picking one stock is not easy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both Carpenter Technology and ATI are benefiting from strong demand in aerospace & defense, driven by the recovery in aircraft production and solid aftermarket demand. Improving prices for high-performance alloys also supports performance. Both companies are working to improve profitability through better product mix and operational efficiency. ATI appears to have a slight edge over CRS due to its more attractive valuation and broader exposure across products and end markets.