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CRS Earnings Beat Estimates in Q4 on Pricing, Shares Rise 7%
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Key Takeaways
CRS beat Q4 earnings and revenue estimates on higher shipments, pricing, product mix and efficiency.
Specialty Alloys Operations sales and profit rose on productivity gains, pricing and improved mix.
Carpenter Technology expects FY27 operating income of $850-$880M and a free cash flow of $400-$430M.
Shares of Carpenter Technology Corporation (CRS - Free Report) gained 7% since reporting adjusted earnings of $3.23 per share for the fourth quarter of fiscal 2026 on July 30, beating the Zacks Consensus Estimate of $3.03 by 6.6%. Earnings rose 46.2% from $2.21 in the year-ago quarter.
Net revenues increased 12.6% year over year to $851 million and topped the consensus estimate of $848 million by 0.4%. The upside reflected 22% higher shipment volume, stronger product mix, pricing realization and improved operating efficiency.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Aerospace and Defense remained the largest end market. CRS witnessed a year-over-year revenue increase of 17% in the Aerospace and Defense end-use market. Revenues in the Industrial and Consumer market rose 22%, while Transportation revenues increased 3%. The Medical end-use market’s revenues declined 30% and Energy revenues fell 12%.
CRS’s Q4 Operational Results
The cost of goods sold in the fourth quarter of fiscal 2026 increased 7.5% year over year to $582 million. Gross profit rose 25.7% to $269 million. The gross margin came in at 31.6% compared with 28.3% in the prior-year quarter.
Adjusted operating income in the reported quarter was a record $207 million compared with $151.4 million in the year-ago quarter. The adjusted operating margin was 30.4% compared with 24.3% a year earlier.
Carpenter Technology’s Q4 Segmental Performance
The Specialty Alloys Operations segment reported sales of $770.5 million compared with $674.1 million in the prior-year quarter. We predicted the segment’s sales to be $751 million. The upside was driven by productivity gains, pricing across long-term and transactional business, and improved mix. The segment sold 57,454 thousand pounds compared with 46,872 thousand pounds a year ago. The reported figure surpassed our estimate of 50,123 pounds. The segment posted an operating profit of $229.7 million, up 37.5% from $167 million in the year-ago quarter. Our estimate for the segment’s operating profit was $167 million.
The Performance Engineered Products segment’s net sales increased 3.7% year over year to $108.5 million. The reported figure beat our estimate of $106 million. The segment sold 3,256 thousand pounds compared with 2,674 thousand pounds in the prior-year quarter. It was lower than our projection of 2,697 thousand pounds. It reported an operating profit of $7.1 million, down 39.3% from $11.7 million a year earlier, showing that higher volume did not translate into stronger segment profitability. Our estimate for the segment’s operating profit was $11.7 million.
CRS’s Cash Flow & Balance Sheet Updates
Carpenter Technology ended fiscal 2026 with cash and cash equivalents of $393 million compared with $315.5 million at the end of fiscal 2025. Long-term debt was $691 million at the end of fiscal 2026 compared with $695 million a year earlier.
Cash flow from operating activities was $240 million in the quarter under review compared with $258 million in the prior-year quarter.
Carpenter Technology’s FY26 Performance
The company reported adjusted earnings of $10.52 per share in fiscal 2026, missing the Zacks Consensus Estimate of $10.58. The company posted adjusted earnings of $7.42 in fiscal 2025.
CRS revenues were $3.12 billion in fiscal 2026, down from $2.88 billion in the year-ago quarter. The top line came in line with the Zacks Consensus Estimate.
CRS FY27 Outlook
For fiscal 2027, CRS expects operating income of $850-$880 million, indicating growth of 21-25% from that reported in fiscal 2026. The adjusted free cash flow is projected at $400-$430 million.
For the first quarter of fiscal 2027, the company anticipates operating income of $195-$200 million. CRS also set a fiscal 2029 operating income target of $1.2-$1.3 billion, supported by demand, productivity, mix, pricing and expected contributions from its brownfield expansion.
Shares of the company have surged 121.7% in the past year compared with the industry’s growth of 96.8%.
Image Source: Zacks Investment Research
Carpenter Technology Peer Performance
Commercial Metals Company (CMC - Free Report) reported adjusted earnings per share of $1.73 in third-quarter fiscal 2026 (ended May 31, 2026), beating the Zacks Consensus Estimate of $1.60 by 8.1%. The bottom line surged 147.1% from 70 cents in the year-ago quarter.
Commercial Metals’ revenues in the reported quarter were $2.48 billion compared with $2.02 billion in the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $2.37 billion.
Metallus Inc. (MTUS - Free Report) delivered second-quarter 2026earnings of 26 cents per share, in line with the Zacks Consensus Estimate. Metallus posted earnings of 2 cents in the year-ago quarter.
Metallus posted revenues of $341 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate of $331 million. The company posted $305 million in the second quarter of 2025.
NWPX Infrastructure, Inc. (NWPX - Free Report) came out with second quarter 2026 earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.33. The company posted earnings of 91 cents a year ago.
NWPX Infrastructure posted revenues of $159.5 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate of $155 million. The top line increased from the year-ago quarter’s $133 million.
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CRS Earnings Beat Estimates in Q4 on Pricing, Shares Rise 7%
Key Takeaways
Shares of Carpenter Technology Corporation (CRS - Free Report) gained 7% since reporting adjusted earnings of $3.23 per share for the fourth quarter of fiscal 2026 on July 30, beating the Zacks Consensus Estimate of $3.03 by 6.6%. Earnings rose 46.2% from $2.21 in the year-ago quarter.
Net revenues increased 12.6% year over year to $851 million and topped the consensus estimate of $848 million by 0.4%. The upside reflected 22% higher shipment volume, stronger product mix, pricing realization and improved operating efficiency.
Carpenter Technology Corporation Price, Consensus and EPS Surprise
Carpenter Technology Corporation price-consensus-eps-surprise-chart | Carpenter Technology Corporation Quote
Aerospace and Defense remained the largest end market. CRS witnessed a year-over-year revenue increase of 17% in the Aerospace and Defense end-use market. Revenues in the Industrial and Consumer market rose 22%, while Transportation revenues increased 3%. The Medical end-use market’s revenues declined 30% and Energy revenues fell 12%.
CRS’s Q4 Operational Results
The cost of goods sold in the fourth quarter of fiscal 2026 increased 7.5% year over year to $582 million. Gross profit rose 25.7% to $269 million. The gross margin came in at 31.6% compared with 28.3% in the prior-year quarter.
Adjusted operating income in the reported quarter was a record $207 million compared with $151.4 million in the year-ago quarter. The adjusted operating margin was 30.4% compared with 24.3% a year earlier.
Carpenter Technology’s Q4 Segmental Performance
The Specialty Alloys Operations segment reported sales of $770.5 million compared with $674.1 million in the prior-year quarter. We predicted the segment’s sales to be $751 million. The upside was driven by productivity gains, pricing across long-term and transactional business, and improved mix. The segment sold 57,454 thousand pounds compared with 46,872 thousand pounds a year ago. The reported figure surpassed our estimate of 50,123 pounds. The segment posted an operating profit of $229.7 million, up 37.5% from $167 million in the year-ago quarter. Our estimate for the segment’s operating profit was $167 million.
The Performance Engineered Products segment’s net sales increased 3.7% year over year to $108.5 million. The reported figure beat our estimate of $106 million. The segment sold 3,256 thousand pounds compared with 2,674 thousand pounds in the prior-year quarter. It was lower than our projection of 2,697 thousand pounds. It reported an operating profit of $7.1 million, down 39.3% from $11.7 million a year earlier, showing that higher volume did not translate into stronger segment profitability. Our estimate for the segment’s operating profit was $11.7 million.
CRS’s Cash Flow & Balance Sheet Updates
Carpenter Technology ended fiscal 2026 with cash and cash equivalents of $393 million compared with $315.5 million at the end of fiscal 2025. Long-term debt was $691 million at the end of fiscal 2026 compared with $695 million a year earlier.
Cash flow from operating activities was $240 million in the quarter under review compared with $258 million in the prior-year quarter.
Carpenter Technology’s FY26 Performance
The company reported adjusted earnings of $10.52 per share in fiscal 2026, missing the Zacks Consensus Estimate of $10.58. The company posted adjusted earnings of $7.42 in fiscal 2025.
CRS revenues were $3.12 billion in fiscal 2026, down from $2.88 billion in the year-ago quarter. The top line came in line with the Zacks Consensus Estimate.
CRS FY27 Outlook
For fiscal 2027, CRS expects operating income of $850-$880 million, indicating growth of 21-25% from that reported in fiscal 2026. The adjusted free cash flow is projected at $400-$430 million.
For the first quarter of fiscal 2027, the company anticipates operating income of $195-$200 million. CRS also set a fiscal 2029 operating income target of $1.2-$1.3 billion, supported by demand, productivity, mix, pricing and expected contributions from its brownfield expansion.
Carpenter Technology’s Zacks Rank
CRS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRS’s Share Price Performance
Shares of the company have surged 121.7% in the past year compared with the industry’s growth of 96.8%.
Carpenter Technology Peer Performance
Commercial Metals Company (CMC - Free Report) reported adjusted earnings per share of $1.73 in third-quarter fiscal 2026 (ended May 31, 2026), beating the Zacks Consensus Estimate of $1.60 by 8.1%. The bottom line surged 147.1% from 70 cents in the year-ago quarter.
Commercial Metals’ revenues in the reported quarter were $2.48 billion compared with $2.02 billion in the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $2.37 billion.
Metallus Inc. (MTUS - Free Report) delivered second-quarter 2026earnings of 26 cents per share, in line with the Zacks Consensus Estimate. Metallus posted earnings of 2 cents in the year-ago quarter.
Metallus posted revenues of $341 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate of $331 million. The company posted $305 million in the second quarter of 2025.
NWPX Infrastructure, Inc. (NWPX - Free Report) came out with second quarter 2026 earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.33. The company posted earnings of 91 cents a year ago.
NWPX Infrastructure posted revenues of $159.5 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate of $155 million. The top line increased from the year-ago quarter’s $133 million.