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Carpenter Technology Corporation
NYSE: CRS Industrials Metals 🔎 Screen
$22.2B
Market Cap
37.2
P/E
1.87
PEG
23.7%
ROCE
25.8%
ROE
0.31
D/E
22.5%
OPM
-32.9%
% from 52W High
79
α RS
🔍 CRS is showing a high-conviction setup because it matches 18 of 39 tracked screener presets, Sector RRG has Industrials in the Improving quadrant with the trail still strengthening, and RS Rating is 79. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 18/39 · Industrials in Improving quadrant · RS Rating 79
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🌏 Global Investor Returns
Currency-adjusted total returns for CRS including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Carpenter Technology Corporation manufactures, fabricates, and distributes specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as metal powders and parts. It serves the aerospace, defense, medical, transportation, energy, industrial, and consumer markets. The company was founded in 1889 and is headquartered in Philadelphia, Pennsylvania.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding CRS
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Manager Shares Value % of Fund Period
Daniel Loeb Third Point LLC 310.0K $122.2B 5.87% Mar 2026
Steve Cohen Point72 Asset Management 250.2K $98.6M 0.13% Mar 2026
Cathie Wood ARK Investment Management 253 $100K 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q4 2026
Sales (ex-surcharge)
$705.6M
+9% YoY
Operating Income
$206.9M
+37% YoY
SAO Adjusted Operating Margin
37.8%
+7.3pp YoY
Diluted EPS
$3.23
n/a
What Went Right
  • Record Q4 operating income of $206.9M, up 11% sequentially and 37% year-over-year.
  • SAO segment operating income reached an all-time high of $229.7M with a record 37.8% adjusted operating margin.
  • Generated $240.1M cash from operations and $155.0M adjusted free cash flow in Q4; returned $45.2M via buybacks.
What to Watch
  • Medical end-market sales still down 30% year-over-year despite improving sequentially.
  • Energy sales swung down 22% sequentially due to order timing and production scheduling.
  • Some structural aerospace customers remain cautious and are ordering below acknowledged demand rates.
Management Guidance
  • Q1 FY2027 operating income guided at $195M-$200M, including SAO $218M-$222M and PEP $6M-$7M.
  • FY2027 operating income outlook of $850M-$880M, up 21%-25% versus FY2026.
  • FY2027 adjusted free cash flow expected at $400M-$430M; FY2029 operating income target of $1.2B-$1.3B.
Investor Lens
The thesis is stronger after this call. Carpenter delivered another record quarter, expanded SAO margins to 37.8%, and raised the full-year outlook to $850M-$880M, implying 21%-25% growth. Management explicitly called the FY2027 guidance a floor, saying it is already focused on overachieving. Medium-term visibility is supported by the FY2029 target of $1.2B-$1.3B and Brownfield capacity coming online in early FY2028.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record Q4: $206.9M operating income; SAO margin hits 37.8%
Revenue
Fourth-quarter segment sales excluding surcharge were roughly $705.6M, up 9% year-over-year on 22% higher volume. Aerospace & Defense sales rose 17% year-over-year to an all-time quarterly high, while industrial/consumer sales grew 22% year-over-year. Medical sales were down 30% year-over-year but improved 5% sequentially, and energy sales fell 22% sequentially.
Profitability
Operating income came in at $206.9M, up 37% year-over-year and 11% sequentially, another record. Diluted EPS was $3.23. SAO segment operating income was a record $229.7M, up 38% year-over-year, while full-year FY2026 adjusted operating income reached $702.0M, up 34% versus FY2025.
Margins
Consolidated operating margin calculated on segment sales ex-surcharge was approximately 29.3%, up from roughly 23.3% a year ago. SAO's adjusted operating margin expanded to a record 37.8%, up from 35.6% sequentially and 30.5% a year ago, driven by productivity, mix, and pricing. Gross profit increased 26% year-over-year to $268.9M.
Balance Sheet
Q4 cash from operating activities was $240.1M and adjusted free cash flow was $155.0M. FY2026 cash from operations was $605.0M and adjusted free cash flow was $362.3M, above expectations. Total liquidity was $892.4M, including $393.3M cash and $499.1M available under the credit facility, with net debt-to-EBITDA below 1x.
Key Risks
Medical sales remain well below the prior year, and energy demand is lumpy, with a 22% sequential decline. Some structural aerospace customers are still under-ordering relative to expected build rates, creating timing risk. Average base price per pound declined due to product mix, and PEP operating income fell to $7.1M from $11.7M a year ago.
Outlook
For Q1 FY2027, management expects operating income of $195M-$200M. Full-year FY2027 operating income is guided at $850M-$880M, with adjusted free cash flow of $400M-$430M and a medium-term FY2029 operating income target of $1.2B-$1.3B.
Generated by AI · Q4 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q4 2026 Q4 2026 2026-07-30
Record quarterly and annual results were driven by strong demand, especially in aerospace and defense, with expanding margins and robust cash generation. FY 2027 guidance projects continued double-digit growth, supported by ongoing investments and a balanced capital allocation strategy.
Q3 2026 Q3 2026 2026-04-29
Record quarterly results driven by strong Aerospace and Defense demand, margin expansion, and robust cash flow. Raised fiscal 2026 guidance, with continued growth expected in key markets and a strong balance sheet supporting investments and shareholder returns.
Q2 2026 Q2 2026 2026-01-29
Record quarterly operating income and margin expansion were driven by strong aerospace demand, higher pricing, and productivity gains. Fiscal 2026 guidance was raised, with continued growth expected in aerospace, defense, and power generation, supported by capacity expansion and robust capital allocation.
Q1 2026 Q1 2026 2025-10-23
Record quarterly earnings and margins were achieved, driven by strong aerospace and defense demand, pricing actions, and productivity gains. Guidance for fiscal 2026 and 2027 remains robust, with significant growth expected, supported by a strong balance sheet and ongoing capital investments.
Q4 2025 Q4 2025 2025-07-31
Record Q4 and FY25 results driven by margin expansion, productivity, and strong demand in aerospace, defense, and energy. FY26 guidance projects 26%–33% earnings growth, with robust free cash flow and continued investment in capacity expansion.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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Information Sources:
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