What is the market's earnings forecast for Carpenter Technology next quarter?

What were the key takeaways from Carpenter Technology’s earnings call?

What is Carpenter Technology's gross profit margin?

What is the revenue and EPS growth rate for Carpenter Technology year over year?

What guidance did Carpenter Technology's management provide for the next earnings period?

What factors drove the changes in Carpenter Technology's revenue and profit?

What is Carpenter Technology's latest dividend and current dividend yield?

What were the key takeaways from Carpenter Technology's earnings call?

- **Record Performance**: Q1 FY26 operating income of $153 million, up 31% YoY, with SAO margin hitting 32%, the highest in company history.
- **Aerospace Surge**: Aerospace bookings rose 23% sequentially, driven by 5 LTAs with price increases and Boeing's MAX rate hike to 42/month.
- **Cash Generation**: $39.2 million in cash flow, with FY26 free cash flow guidance of $240-280 million, supporting $400 million buyback program.
- **Expansion Momentum**: Brownfield project on track for late FY27 completion, with FY26 capital spend of $175-185 million.

**【CEO Summary Section】**
- **Record Earnings**: Q1 FY26 operating income of $153 million, up 31% YoY, driven by productivity, product mix, and pricing. SAO segment operating income reached $170.7 million, a 27% YoY increase.
- **Expanded Margins**: SAO adjusted operating margin of 32%, up from 26.3% YoY and 30.5% QoQ, reflecting strong execution and market position.
- **Strengthening Demand**: Aerospace and Defense bookings rose 23% sequentially, with 5 LTAs signed with aerospace customers featuring significant price increases.
- **Pricing Power**: Pricing actions contributed to a 10% YoY increase in sales per pound for aerospace products, despite sequential volume declines due to planned maintenance.

**【CFO Financial Commentary】**
- **Financial Highlights**: Adjusted operating income of $153 million, up 31% YoY. SAO segment margin of 32%, highest in company history. PEP segment operating income of $9.4 million, up 29% YoY.
- **Cash Flow**: Generated $39.2 million in cash from operations, with $42.6 million in capital expenditures. FY26 free cash flow expected between $240 million to $280 million.
- **Capital Allocation**: $49.1 million spent on share buybacks, with $151 million repurchased year-to-date. Brownfield expansion project progressing on schedule, with FY26 capital spend of $175-185 million.

**【Q&A Highlights】**
- **Aerospace Lead Times**: Engine alloy lead times remain extended, with customers accelerating orders post-Boeing MAX rate increase to 42/month.
- **LTA Duration**: 5 new LTAs signed with durations of 2-5 years, reflecting long-term supply-demand imbalance.
- **Defense Growth**: Defense orders up significantly, driven by new programs and FY26 budget expectations. Space business, though small, is growing strategically.
- **Project Timeline**: Brownfield expansion expected to complete late FY27 to early FY28, supporting SAO capacity for high-value materials.

Carpenter Technology Corporation (CRS) Q1 2026 Earnings Call Transcript

- **Q4 Record Performance**: $151M operating income (21% YoY), SAO margin 30.5%, $167M segment profit.
- **End-Market Growth**: Aerospace +3% QoQ, Energy +27% QoQ, Medical +6% QoQ.
- **FY26 Guidance**: $660M-$700M operating income (26%-33% YoY), $240M-$280M free cash flow.
- **Strategic Investments**: $400M brownfield expansion, $101.9M share buybacks FY25.
- **Key Trends**: Pricing tailwinds, defense urgency, power gen demand, and preventive maintenance efficiency.

**【CEO Summary Section】**
- **Record Q4 Performance**: Adjusted operating income of $151 million, up 21% YoY and 10% sequentially, driven by SAO segment with 30.5% margin (vs. 25.2% YoY). SAO operating income reached $167 million, up 19% YoY.
- **End-Market Strength**: Aerospace sales +3% QoQ, Medical +6% QoQ, Energy +27% QoQ. Power generation demand accelerated, with similar margins to aerospace materials.
- **Free Cash Flow & Share Repurchases**: $201.3 million Q4 free cash flow, $101.9 million shares repurchased FY25. Brownfield expansion project ($400M) underway, targeting FY28 growth acceleration.
- **FY26 Outlook**: Operating income guidance of $660M-$700M (26%-33% YoY growth), with H2 outperformance driven by aerospace ramp and maintenance efficiency.

**【CFO Financial Commentary】**
- **Q4 Financials**: Sales ex-surcharge $1.1B, flat YoY. Gross profit $213.9M (+12% YoY). Adjusted EPS $2.21, beating expectations. FY25 free cash flow $287.5M.
- **Segment Breakdown**: SAO net sales $548M (+6% QoQ), PEP $97.1M (-5% YoY). PEP operating income $11.7M, up 10% YoY due to titanium medical sales.
- **Capital Allocation**: $400M share repurchase program ($101.9M executed FY25), $300M-$315M FY26 capex (including $175M-$185M for brownfield).
- **Liquidity**: $664.4M total liquidity, net debt/EBITDA 0.5x. FY26 free cash flow guidance $240M-$280M.

**【Q&A Highlights】**
- **Pricing & Lead Times**: Pricing tailwinds expected to continue; lead times remain extended, with aerospace supply chain tightening.
- **Defense Demand**: Urgent defense orders up 17% QoQ, driven by program-specific spending and budget clarity.
- **Power Generation**: Sales up >100% YoY, with similar margins to aerospace materials. Strategic growth opportunity.
- **Maintenance Strategy**: Preventive maintenance optimized for asset uptime, enabling record Q1 guidance despite planned outages.
- **Peer Comparisons**: Medical growth resilient vs. peers due to high-end innovation (e.g., low-nickel alloys).

Carpenter Technology Corporation (CRS) Q4 2025 Earnings Call Transcript

- **Record Q3 profits**: $138M operating income (+53% YoY), SAO margin hits 29.1%. 
- **A&D demand surge**: Engine sales +16%, fasteners +25% QoQ, orders up >20%. 
- **LTA pricing power**: FY2027 target of $765-800M operating income, 25% CAGR. 
- **Cash flow confidence**: $34M Q3 free cash, on track for $250-300M annual target. 
- **Tariff resilience**: <1% of costs impacted, 100% passed through to customers.

**【CEO Opening Remarks】**
- Q3 FY2025 operating income reached $138 million, a 53% YoY increase, with SAO segment margin expanding to 29.1% (vs. 21.4% YoY). 
- Aerospace & Defense sales grew 12% sequentially, driven by engine (+16%) and fastener (+25%) demand. 
- Signed two LTAs to secure long-term supply, with pricing actions offsetting 100% of tariff impacts. 
- FY2025 guidance raised to $520-527 million operating income (prev. $500-520M), with FY2027 target of $765-800 million.

**【CFO Financial Breakdown】**
- Sales ex-surcharge: $616.2M (+8% YoY, +9% QoQ), driven by higher pricing and productivity. 
- Gross profit: $200.8M (+37% YoY), with SAO operating income at $151.4M. 
- Free cash flow: $34M (Q3) vs. $250-300M annual target, supported by $78M share buybacks YTD. 
- Tax rate: 21.8% (Q3), expected to normalize at 23% in Q4.

**【Q&A Key Takeaways】**
- **Order trends**: Sequential order growth >20%, with emergency requests persisting. 
- **Pricing**: LTA pricing actions to take effect in 2026+, with FY2025 margin expansion intact. 
- **Inventory**: WIP builds expected to unwind in Q4, aligning with $250-300M cash flow target. 
- **Tariffs**: <1% of raw material costs impacted, fully passed through to customers. 
- **Brownfield expansion**: $30M capex allocated, targeting >20% ROIC with 2027+ impact.

Carpenter Technology (CRS)-24 Apr 25-2025 Q3 Earnings call transcript

- **Record Q2 Performance**: $119M operating income (70% YoY growth), SAO margin hits 28.3% record high.
- **Guidance Upped**: FY2025 operating income raised to $500-520M, driven by $1.9B backlog and productivity gains.
- **Cash Flow Strength**: $38.6M free cash flow, $8.2M shares repurchased under $400M program.
- **Key Growth Drivers**: Aerospace engine materials up 22% YoY, defense orders surge, medical margins expand.
- **Resilience to Risks**: Tariff impacts mitigated via pass-through; Boeing delays offset by diversified backlog.


**【CEO Opening Remarks】**
- Q2 2025 operating income reached $119 million, up 70% YoY, driven by SAO segment margin expansion to 28.3% (vs. 20% in Q2 2024). 
- Raised FY2025 guidance to $500-520 million operating income, citing strong productivity, customer demand, and backlog visibility.
- Highlighted $38.6 million in free cash flow and $8.2 million in share buybacks under $400 million repurchase program.
- Noted Q3 2025 sales growth expectations from higher volumes, operating days, and pricing.

**【CFO Financial Breakdown】**
- Sales ex-surcharge: $565.8 million (+13% YoY, -5% QoQ), driven by 45% gross profit growth to $177.5 million.
- SG&A expenses stable at $58.6 million, with corporate costs maintained at $23-24 million/quarter.
- Effective tax rate 20% (Q2 2025) vs. normalized 23% for future quarters.
- Cash flow: $67.9 million from operations, $38.6 million adjusted free cash flow.
- Liquidity remains strong at $511 million (cash + credit facility). 

**【Q&A Key Themes】**
- **Aerospace Demand**: 
  - SAO segment orders up 15% YoY, with engine materials lead times improving by 2-3 weeks due to productivity gains.
  - Boeing-related delays caused 12% sequential decline in fasteners, but 2.5% increase in net sales.
  - Defense orders remain urgent, with 95% of PEP segment sales tied to high-margin medical/aerospace applications.
- **Pricing & Mix**: 
  - 29% price per pound increase in SAO driven by mix optimization (high-value alloys) and new contracts.
  - Medical market destocking temporary; long-term demand supported by surgical rates and new customer contracts.
- **Capacity & Growth**: 
  - No plans to reduce production despite Boeing delays; backlog of $1.9 billion (2.5x pre-COVID levels) provides flexibility.
  - Q3 2025 SAO operating income expected to rise to $140-145 million, PEP to $10-12 million.
- **Policy Risks**: 
  - Tariffs on raw materials would be passed through to customers; no immediate impact expected.
  - AI-driven power gen demand offsets energy market volatility.


Carpenter Technology Corporation (CRS) Q2 2025 Earnings Call Transcript

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