The strong beat and maintained guidance with accelerating aerospace demand suggest continued earnings momentum. Watch for Q2 guidance execution and any upward revision to FY2027 targets given management commentary on potential upside to current targets.
Price Chart
Executive Summary
Carpenter Technology reported a strong Q1 FY2027 beat with EPS of $3.25 (11.1% above consensus of $2.93) and revenue of $798.2M (slightly above $794.4M consensus). Operating income rose 28% YoY to a record $196.4M, driven by productivity gains and pricing actions in the SAO segment (37.7% adjusted operating margin). The company maintained its FY2027 operating income guidance of $850M-$880M and provided Q2 guidance of $192M-$197M, signaling continued momentum despite planned maintenance downtime.
Key Financial Metrics
Key Facts
- EPS of $3.25 beat consensus of $2.93 by 11.1%
- Revenue of $798.2M grew 9% YoY, slightly above $794.4M consensus
- Record Q1 operating income of $196.4M, up 28% YoY
- SAO segment adjusted operating margin expanded to 37.7% from 32.0% YoY
- FY2027 operating income guidance maintained at $850M-$880M (21-25% YoY growth)
- Q2 FY2027 operating income guided at $192M-$197M
- Commercial aerospace bookings surged 49% YoY and 23% sequentially in structural/distribution sub-markets
- Executed $133.9M in share repurchases during the quarter; $985M remaining under $1.0B program
- Free cash flow was negative $24.8M due to $77.7M in capex for brownfield expansion
Financial Impact
EPS beat of $0.32 (11.1%) on $3.8M revenue beat; operating income up $43.1M YoY to record $196.4M
Risk Factors
- Planned maintenance downtime impacted sequential operating income (-5% QoQ) and could recur
- Free cash flow negative due to elevated capex for brownfield expansion ($77.7M vs $42.6M YoY)
- PEP segment operating income declined 22% YoY ($7.3M vs $9.4M), indicating mixed performance across businesses
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000017843-26-000049 |
| Document: crs-20261022.htm | 0000017843-26-000049 |
| Document: 0000017843-26-000049-index-headers.html | 0000017843-26-000049 |
| Document: 0000017843-26-000049-index.html | 0000017843-26-000049 |
| Document: 0000017843-26-000049.txt | 0000017843-26-000049 |
| 8-K Data (Synthetic) | 0000017843-26-000049 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | SC 13G/A | $294.29 | awaiting T+60 | — | $288.49 (−1.97%) |
Oct 22, 2026 5d ago | 8-K | $284.66 | awaiting T+60 | — | $288.49 (+1.35%) |
Oct 22, 2026 5d ago | 8-K | $284.66 | awaiting T+60 | — | $288.49 (+1.35%) |
Oct 22, 2026 5d ago | Press Release | $292.26 | awaiting T+60 | — | $288.49 (−1.29%) |
Oct 21, 2026 6d ago | Institutional Cluster | $292.26 | awaiting T+60 | — | $288.49 (−1.29%) |
Oct 16, 2026 11d ago | 3 | $378.51 | awaiting T+60 | — | $288.49 (−23.78%) |
Oct 16, 2026 11d ago | 3 | $378.51 | awaiting T+60 | — | $288.49 (−23.78%) |
Oct 15, 2026 12d ago | 8-K | $377.09 | awaiting T+60 | — | $288.49 (−23.50%) |
Oct 1, 2026 26d ago | Press Release | $383.69 | awaiting T+60 | — | $288.49 (−24.81%) |
Aug 27, 2026 8w ago | Insider Cluster | $476.43 | awaiting T+60 | — | $288.49 (−39.45%) |
US Market Status
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