The revenue miss vs consensus is notable but appears driven by lower surcharge revenue, not underlying demand weakness — SAO ex-surcharge revenue grew 7.4% YoY. The maintained FY2027 operating income guidance implies strong H2 ramp. Watch for Q2 operating income guidance of $192M-$197M and any upward revision to the FY2027 target given management commentary on 'specific actions to exceed targets.'
Price Chart
Executive Summary
Carpenter Technology reported Q1 FY2027 EPS of $3.25, beating consensus of $3.03 by 7.2%, on revenue of $798.2M vs $830.7M consensus (a 3.9% miss). Operating income rose 28% YoY to a record $196.4M, driven by SAO segment margin expansion to 37.7%. The company maintained its FY2027 operating income guidance of $850M-$880M and highlighted accelerating commercial aerospace demand.
Key Financial Metrics
Key Facts
- EPS of $3.25 beat consensus of $3.03 by 7.2%
- Revenue of $798.2M missed consensus of $830.7M by 3.9%
- Operating income of $196.4M, up 28% YoY, a record for Q1
- SAO segment adjusted operating margin of 37.7%, up from 32.0% YoY
- FY2027 operating income guidance maintained at $850M-$880M
- Commercial aerospace bookings in structural and distribution sub-markets up 49% YoY
- Executed $133.9M in share repurchases; $985M remaining under $1B program
- Free cash flow negative $24.8M due to $77.7M capex for brownfield expansion
Financial Impact
EPS beat of 7.2% on record operating income; revenue miss of 3.9% likely due to surcharge pass-through dynamics
Risk Factors
- Revenue missed consensus by 3.9%, which could pressure the stock if the market focuses on top-line vs the operating income beat
- Free cash flow was negative $24.8M due to elevated capex for brownfield expansion; sustained negative FCF could limit capital return flexibility
- PEP segment operating income declined 22% YoY, indicating weakness in titanium and distribution businesses
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3386251 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $284.66 | awaiting T+60 | — | $287.13 (+0.87%) |
Oct 22, 2026 4d ago | 8-K | $284.66 | awaiting T+60 | — | $287.13 (+0.87%) |
Oct 22, 2026 5d ago | Press Release | $292.26 | awaiting T+60 | — | $287.13 (−1.76%) |
Oct 21, 2026 5d ago | Institutional Cluster | $292.26 | awaiting T+60 | — | $287.13 (−1.76%) |
Oct 16, 2026 10d ago | 3 | $378.51 | awaiting T+60 | — | $287.13 (−24.14%) |
Oct 16, 2026 10d ago | 3 | $378.51 | awaiting T+60 | — | $287.13 (−24.14%) |
Oct 15, 2026 11d ago | 8-K | $377.09 | awaiting T+60 | — | $287.13 (−23.86%) |
Oct 1, 2026 26d ago | Press Release | $383.69 | awaiting T+60 | — | $287.13 (−25.17%) |
Aug 27, 2026 8w ago | Insider Cluster | $476.43 | awaiting T+60 | — | $287.13 (−39.73%) |
Aug 12, 2026 10w ago | 8-K | $535.57 | awaiting T+60 | — | $287.13 (−46.39%) |
US Market Status
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