Overview

* Carpenter Technology ( CRS ) fiscal Q1 rev missed analyst expectations

* Adjusted EPS for fiscal Q1 beats consensus

* Company executed $49.1 mln in share repurchases

Outlook

* Carpenter Technology ( CRS ) expects Q2 FY2026 operating income between $152 mln and $156 mln

* Company projects FY2026 operating income of $660 mln to $700 mln

* Carpenter Technology ( CRS ) forecasts FY2026 adjusted free cash flow of $240 mln to $280 mln

Result Drivers

* SAO MARGIN EXPANSION - Specialty Alloys Operations segment saw operating margin rise to 32.0%, up from 26.3% a year ago, marking the fifteenth consecutive quarterly increase

* AEROSPACE DEMAND - Demand in Aerospace and Defense market picked up with bookings up 23% sequentially, driven by increased supply chain activity

* LONG-TERM AGREEMENTS - Completed negotiations on several aerospace long-term agreements, realizing significant value

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Miss $733.7 $747.45

mln mln (4

Analysts

)

Q1 Beat $2.43 $2.16 (5

Adjusted Analysts

EPS )

Q1 EPS $2.43

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the iron & steel peer group is "buy"

* Wall Street's median 12-month price target for Carpenter Technology Corp ( CRS ) is $321.80, about 22.6% above its October 21 closing price of $249.00

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)