The strong beat and raised guidance, combined with accelerating aerospace demand and a new $1B buyback, suggest continued momentum. Monitor Q2 SAO operating income guidance of $214-218M and the brownfield capacity expansion timeline (early FY2028) for production upside.
Price Chart
Executive Summary
Carpenter Technology reported Q1 FY2027 EPS of $3.25 on revenue of $798.2M, beating consensus estimates of $2.93 and $794.4M respectively. Operating income rose 28% year-over-year to a record $196.4M, driven by strong execution in the Specialty Alloys Operations segment, which expanded adjusted operating margins to 37.7%. The company guided FY2027 operating income to $850-880M (21-25% growth over FY2026) and authorized a new $1.0B share repurchase program, signaling confidence in sustained aerospace and defense demand.
Key Financial Metrics
Key Facts
- EPS of $3.25 beat consensus of $2.93 by 11.1%
- Revenue of $798.2M beat consensus of $794.4M
- Record Q1 operating income of $196.4M, up 28% YoY
- SAO segment operating income of $216.3M, up 27% YoY; adjusted operating margin 37.7%
- FY2027 operating income guidance raised to $850-880M, 21-25% above FY2026 record of $702M
- FY2027 free cash flow guidance of $400-430M
- New $1.0B share repurchase program authorized; $133.9M repurchased in Q1
- Aerospace & Defense bookings up 23% sequentially and 49% YoY
- FY2029 operating income target of $1.2-1.3B implies 20-23% 3-year CAGR
Financial Impact
EPS beat of $0.32 (11.1%) on consensus of $2.93; revenue beat of $3.8M (0.5%) on consensus of $794.4M
Risk Factors
- Elevated preventive maintenance and holiday-related downtime could impact Q2 sequential results
- PEP segment operating income declined YoY due to lower medical titanium sales
- Free cash flow was negative $24.8M in Q1 due to working capital build and capex acceleration
- Execution risk on brownfield expansion and achieving FY2029 $1.2-1.3B operating income target
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000017843-26-000047 |
| Document: a1q27earningspresentatio.htm | 0000017843-26-000047 |
| Document: 0000017843-26-000047-index-headers.html | 0000017843-26-000047 |
| Document: 0000017843-26-000047-index.html | 0000017843-26-000047 |
| Document: 0000017843-26-000047.txt | 0000017843-26-000047 |
| 8-K Data (Synthetic) | 0000017843-26-000047 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $284.66 | awaiting T+60 | — | $289.48 (+1.69%) |
Oct 22, 2026 4d ago | 8-K | $284.66 | awaiting T+60 | — | $289.48 (+1.69%) |
Oct 22, 2026 4d ago | Press Release | $292.26 | awaiting T+60 | — | $289.48 (−0.95%) |
Oct 21, 2026 5d ago | Institutional Cluster | $292.26 | awaiting T+60 | — | $289.48 (−0.95%) |
Oct 16, 2026 10d ago | 3 | $378.51 | awaiting T+60 | — | $289.48 (−23.52%) |
Oct 16, 2026 10d ago | 3 | $378.51 | awaiting T+60 | — | $289.48 (−23.52%) |
Oct 15, 2026 11d ago | 8-K | $377.09 | awaiting T+60 | — | $289.48 (−23.23%) |
Oct 1, 2026 25d ago | Press Release | $383.69 | awaiting T+60 | — | $289.48 (−24.55%) |
Aug 27, 2026 8w ago | Insider Cluster | $476.43 | awaiting T+60 | — | $289.48 (−39.24%) |
Aug 12, 2026 10w ago | 8-K | $535.57 | awaiting T+60 | — | $289.48 (−45.95%) |
US Market Status
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