| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 728.00 | 0.8% | 7.5% |
| Total Income | 728.00 | 0.8% | 7.5% |
| Expenditure | 572.80 | 1.3% | 2.6% |
| PBT | 130.00 | 10.2% | 23.7% |
| Net Profit | 105.30 | 14.0% | 25.2% |
| OPM | 21.32% | 0.43pp | 3.75pp |
| NPM | 14.46% | 2.23pp | 2.04pp |
| EPS | 2.10 | 14.3% | 25.0% |
Carpenter Technology Reports Q2 FY2026 Results: Operating Income $155.2M
04 May 2026 · 4 May, 1:36 am
Summary
Carpenter Technology Corporation reported a record second quarter for fiscal year 2026, with operating income reaching $155.2 million, a 31% increase year-over-year. The Specialty Alloys Operations (SAO) segment drove the performance, achieving an operating income of $174.6 million and an adjusted operating margin of 33.1%. Bookings for Commercial Aerospace saw a sequential increase of 23%, reflecting strong demand. The company is raising its operating income guidance for fiscal year 2026 to a range of $680 million to $700 million, representing a 30% to 33% increase over fiscal year 2025.
Key Highlights
- 1
Carpenter Technology delivered $155.2 million of operating income, up 31 percent year-over-year, marking a record second quarter result.
- 2
Adjusted earnings per diluted share reached $2.33 in the second quarter of fiscal year 2026.
- 3
The company generated $132.2 million of cash from operating activities during the quarter.
- 4
The Specialty Alloys Operations (SAO) segment exceeded expectations with operating income of $174.6 million, a 29 percent increase year-over-year.
- 5
The SAO segment delivered an adjusted operating margin of 33.1 percent, up from 28.3 percent year-over-year.
- 6
Bookings for Commercial Aerospace increased by 23 percent sequentially.
- 7
The company executed $32.1 million in share repurchases against a $400.0 million repurchase program.
Management Comments
Tony R. Thene
“The second quarter of fiscal year 2026 generated $155.2 million of operating income. The record quarter was an increase of 31.0 percent over the previous second fiscal quarter.” “The quarterly performance was driven by the SAO segment, which continued to expand adjusted operating margins. Reaching 33.1 percent in the quarter, up from 28.3 percent in the second quarter a year ago, the SAO segment realized $174.6 million in operating income, its best quarter on record.” “Demand in our Aerospace and Defense end-use market continues to accelerate as customers gain confidence with the ramping build rates. Notably, we saw bookings for Commercial Aerospace increase 23 percent sequentially. Given the strong demand outlook, our customers continue to be focused on securing their supply. To that end, we completed negotiations on three additional long-term agreements with aerospace customers, realizing significant value.” “Given the strong demand environment and the visibility we have for the second half of the fiscal year, we are raising our guidance to $680 million to $700 million. This range represents a 30 percent to 33 percent increase over our record fiscal year 2025 earnings.” “In addition, we expect to generate at least $280 million in adjusted free cash flow in fiscal year 2026. With a strong balance sheet and meaningful adjusted free cash flow, we will continue to take a balanced approach to capital allocation: sustaining our current asset base to achieve our targets, investing in high value growth initiatives like the recently announced brownfield capacity expansion, and returning cash to shareholders. To that end, we executed $32.1 million in share repurchases in the quarter against our $400.0 million repurchase program.” “Looking over the long term, our broad portfolio of specialized solutions, increasing productivity, optimizing product mix and pricing actions will continue to drive growth well into the future. Together with our investments to accelerate growth, we are positioned to achieve and exceed our goals over the long-term.”
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