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- **Record Financials**: Q2 operating income $155M (31% YoY), SAO margins 33.1% (vs. 28.3% YoY)
- **Aerospace Boom**: Aerospace bookings +23% QoQ, engine orders +30%, 3 new LTAs with >30% price hikes
- **Guidance Upgrade**: FY26 operating income raised to $680-700M (30-33% growth), targeting 2027 guidance of $765-800M
- **Cash Generation**: $85.9M Q2 free cash flow, $280M+ FY26 guidance
- **Expansion On Track**: Brownfield project adding 9,000 tons capacity on schedule
- **Shareholder Returns**: $32.1M Q2 buybacks, $183M of $400M auth used

**【CEO Summary Section】**
- **Record Earnings**: Q2 operating income of $155 million, up 31% YoY, driven by SAO segment operating income of $174.6 million (29% YoY growth). 
- **Expanding Margins**: SAO adjusted operating margin reached 33.1% (vs. 28.3% YoY), with guidance for further expansion in Q3-Q4.
- **Aerospace Demand Surge**: Aerospace bookings up 23% sequentially, engine material orders +30% QoQ, and first large structural orders in months.
- **Pricing Momentum**: 3 new LTAs with aerospace customers featuring significant price increases, pricing tailwind expected to continue.
- **Guidance Update**: Full year 2026 operating income raised to $680-700 million (30-33% YoY growth), with focus on exceeding 2027 guidance of $765-800 million.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - Total sales ex-surcharge: $604.5 million (8% YoY, -2% QoQ)
  - Gross profit: $218.3 million (23% YoY)
  - Operating income: $155.2 million (31% YoY)
  - Adjusted EPS: $2.33
- **Cash Flow Strength**: Q2 free cash flow $85.9 million, FY26 guidance of $280+ million.
- **Capital Allocation**: 
  - $32.1 million share buybacks (total $183M of $400M auth)
  - $46.3M capex (FY26 guidance $300-315M)
  - Brownfield expansion project on track to add 9,000 tons capacity.
- **Balance Sheet**: Total liquidity $730.8 million, net debt/EBITDA <1x.

**【Q&A Highlights】**
- **Aerospace Demand**: 
  - Boeing 737 build rate to increase 10%+ in 2026
  - Engine OEMs report 30%+ order growth
  - Structural customers placing first orders in months
- **Pricing Dynamics**: 
  - 3 new LTAs with >30% price increases
  - Sequential price per pound dip due to mix, but year-over-year pricing up
- **Medical Segment**: 
  - PEP segment operating income $6.9M (down 27% YoY)
  - Specific titanium product demand decline, but January bookings indicate bottoming
- **Capacity Expansion**: 
  - Brownfield project on track for 2027 completion
  - 7% capacity increase vs. 2019 levels
  - Minimal impact on industry supply-demand imbalance
- **LTAs**: 
  - All new LTAs with aerospace customers
  - Exploring LTAs in power gen and medical


Carpenter Technology Corporation (CRS) Q2 2026 Earnings Call Transcript

- **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.


Actual											0.82	-0.31	-0.58	-0.61	-0.54	-0.28	-0.28	-0.58	-0.2	0	-0.14	0.13	0.38	0.78	0.88	0.85	1.19	1.82	1.73	1.66	1.88	2.21	2.43	2.33
Forecast											0.775	0.1825	-0.56	-0.64	-0.57	-0.498	-0.334	-0.618	-0.29	-0.022	-0.0675	0.1225	0.3033	0.6633	0.76	0.85	0.94	1.5065	1.582	1.6064	1.735	2.0674	2.1267	2.2225
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+5.81%	-269.86%	-3.57%	+4.69%	+5.26%	+43.78%	+16.17%	+6.15%	+31.03%	+100.00%	-107.41%	+6.12%	+25.29%	+17.59%	+15.79%	0.00%	+26.60%	+20.81%	+9.36%	+3.34%	+8.36%	+6.90%	+14.26%	+4.84%

Actual	--	--	--	--	--	--	--	--	--	--	585.40M	437.30M	353.30M	348.80M	351.90M	421.60M	387.60M	396.00M	489.00M	563.80M	522.90M	579.10M	690.10M	758.10M	651.90M	624.20M	684.90M	798.70M	717.60M	676.90M	727.00M	755.60M	733.70M	728.00M
Forecast	--	--	--	--	--	--	--	--	--	--	576.25M	509.33M	371.00M	363.00M	368.53M	377.66M	420.42M	365.92M	404.88M	506.52M	559.40M	523.25M	632.50M	743.07M	739.15M	657.10M	707.73M	763.76M	742.96M	720.95M	729.79M	792.55M	717.92M	690.90M
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+1.59%	-14.14%	-4.77%	-3.91%	-4.51%	+11.63%	-7.81%	+8.22%	+20.78%	+11.31%	-6.52%	+10.67%	+9.11%	+2.02%	-11.80%	-5.01%	-3.23%	+4.58%	-3.41%	-6.11%	-0.38%	-4.66%	+2.20%	+5.37%

CRS

CRS fundamentals

CRS Q2 2026 Earnings

Earnings Call

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CRS

CRS fundamentals

CRS Q2 2026 Earnings

Earnings Call

CRS Earnings Call Summary for Q2/202610:00 AM on Jan 29, 2026

CRS Earnings Call Summary for Q1/202610:00 AM on Oct 23, 2025

CRS Earnings Call Summary for Q4/202510:00 AM on Jul 31, 2025

CRS Earnings Call Summary for Q3/202510:00 AM on Apr 24, 2025

CRS Earnings Call Summary for Q2/202510:00 AM on Jan 30, 2025

You can ask Aime