CARPENTER TECHNOLOGY CORP Q1 FY26 Results

Summary

Carpenter Technology Corporation reported strong Q1 FY26 results, highlighted by record operating income and operating margins. Adjusted operating income increased by 31% year-over-year, driven by strong execution and expanding margins in the SAO segment. Aerospace and Defense demand continues to strengthen, with bookings up 23% sequentially. The company is maintaining a healthy liquidity position and executing its capital allocation priorities, including stock repurchases and investments in brownfield capacity expansion. Q2-26 operating income is expected to be in the range of $168 million to $172 million.

Key Highlights

1. 1

   Carpenter Technology reported a 31% year-over-year increase in adjusted operating income for Q1 FY26.

2. 2

   SAO operating income reached $170.7 million, a 27% increase year-over-year.

3. 3

   Aerospace and Defense bookings increased by 23% sequentially, indicating strengthening demand.

4. 4

   The company's adjusted operating margin for SAO expanded to 32.0% in Q1 FY26.

5. 5

   Net sales excluding surcharge increased 5% year-over-year, driven by Aerospace and Defense and Energy end-use markets.

6. 6

   Carpenter Technology repurchased $49.1 million of stock during the quarter.

7. 7

   The company expects to generate $240 million to $280 million of adjusted free cash flow in fiscal year 2026, net of brownfield expenditures.