Carpenter Technology Corporation CRS is benefiting from healthy demand trends across its end-use markets. The upside is driven by solid growth in aerospace and defense, with sales increasing 15% year over year in fiscal 2026.
Carpenter Technology’s top line is gaining from accelerating activity across the aerospace supply chain as OEMs continue to push toward higher build rates. Leveraging its differentiated capabilities and capacity, Carpenter TechnologyCRS-- is well-positioned for significant near-term and long-term growth from the aerospace end-use market.
The company also saw an uptick in its Industrial and Consumer markets, driven by increasing demand from the semiconductor industry, with sales rising 4.7% year over year in fiscal 2026. Transportation sales increased 13.5%, while energy sales improved 3.5% in fiscal 2026. These gains will offset the headwinds in the medical end-use market. Even though medical end-use market sales fell 1.9% year over year in fiscal 2026, the company sees improving demand across orthopedics, dental and cardiology.
Driven by solid performance across its end-use markets, Carpenter Technology has been experiencing strong booking growth for the past few quarters.
Backed by record profitability and favorable demand trends, CRSCRS-- expects fiscal 2027 operating income of $850-$880 million, representing growth of 21-25% from fiscal 2026. The company expects these gains to be driven by higher volumes, productivity improvements, product-mix optimization and pricing actions. It also targets operating income of $1.2-$1.3 billion in fiscal 2029, supported by strengthening end-market demand and contributions from its brownfield capacity expansion beginning in fiscal 2028.
Performance of Other Steel Stocks
Commercial Metals Company CMC has been benefiting from steady North American construction activity and firm pricing discipline. Backed by its focus on transformation, Commercial Metals is expected to generate structurally higher margins and enhanced free cash flow.
Commercial Metals expects its new precast platforms to generate $165 million to $175 million of EBITDA in fiscal 2026, with incremental annualized EBITDA of $240 million to $250 million and annualized synergies of $30 million to $40 million within three years.
Nucor Corporation NUE is committed to expanding its production capabilities and growing its business through strategic acquisitions. Nucor is seeing strong demand in the energy markets. While the automotive market remains impacted by high interest rates and tariffs, the accelerating adoption of electric vehicles bodes well for this market. Demand in non-residential construction markets was healthy in 2025, and the momentum is expected to continue this year, driving Nucor’s earnings and cash flows.
CRS’s Price Performance, Valuations & Estimates
CRS’ shares have surged 81.5% over the past year compared with the industry’s growth of 66.5%. In comparison, the Zacks Basic Materials sector and the S&P 500 have returned 24.1% and 17.2%, respectively.
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Carpenter Technology is currently trading at a forward price/sales ratio of 6.42 compared with the industry's 2.49.
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The Zacks Consensus Estimate for fiscal 2027 sales is pegged at $3.40 billion, indicating an 8.8% year-over-year jump. The consensus mark for the year’s earnings is pinned at $13.28 per share, indicating a year-over-year rise of 23.4%.
The Zacks Consensus Estimate for fiscal 2027 sales implies 8.4% year-over-year growth, and the consensus mark for earnings suggests a rise of 17.9%.
EPS estimates for fiscal 2026 and 2027 have moved north over the past 60 days.
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CRS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Carpenter Technology Corporation (CRS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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