| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 811.50 | 11.5% | 11.6% |
| Total Income | 811.50 | 11.5% | 11.6% |
| Expenditure | 625.00 | 9.1% | 6.1% |
| PBT | 176.70 | 35.9% | 44.8% |
| Net Profit | 139.60 | 32.6% | 46.3% |
| OPM | 22.98% | 1.66pp | 4.03pp |
| NPM | 17.20% | 2.74pp | 4.08pp |
| EPS | 2.79 | 32.9% | 46.8% |
Carpenter Technology Reports Record Q3 FY2026 Operating Income
03 May 2026 · 3 May, 6:16 pm
Summary
Carpenter Technology reported a record-setting third quarter for fiscal year 2026, with operating income reaching $186.5 million, up 20% sequentially and 35% year-over-year. The Specialty Alloys Operations (SAO) segment drove the results, achieving a record operating income of $208.0 million and expanding adjusted operating margins to 35.6%. The company is increasing its operating income guidance for fiscal year 2026 to be in the range of $700 million to $705 million and adjusted free cash flow outlook to approximately $350 million. Demand in the Aerospace and Defense end-use market continues to accelerate, contributing to the company's strong outlook.
Key Highlights
- 1
Carpenter Technology delivered a record quarterly operating income of $186.5 million, up 20 percent sequentially and 35 percent year-over-year.
- 2
Adjusted earnings per diluted share reached $2.77 in the third quarter of fiscal year 2026.
- 3
The company generated $193.5 million of cash from operating activities in Q3 FY26.
- 4
Specialty Alloys Operations segment achieved a record operating income of $208.0 million, a 19 percent sequential increase and a 37 percent year-over-year increase.
- 5
The adjusted operating margin in the SAO segment was 35.6 percent, up from 33.1 percent sequentially and 29.1 percent in the prior year third quarter.
- 6
The company executed $52.7 million in share repurchases against a $400.0 million repurchase program.
- 7
Carpenter Technology is increasing its operating income guidance for fiscal year 2026 to a range of $700 million to $705 million, representing at least a 33 percent increase over fiscal year 2025.
Management Comments
Tony R. Thene
“The third quarter of fiscal year 2026 represents yet another record setting quarter.” “Increasing operating income 20 percent sequentially, over what was a record quarter in a market that is accelerating, speaks to our focus on industry leading execution. The profitability improvement was accompanied by meaningful cash generation, reflecting higher earnings, and continued discipline in working capital management.” “The SAO segment drove the results, delivering $208.0 million of operating income in the quarter and expanding adjusted operating margins to 35.6 percent, both significant increases over the previous quarter. Margin expansion was driven by a combination of continued productivity gains, pricing realization across both long-term and transactional business, and improved product mix. These factors enabled SAO to deliver its strongest quarterly operating performance to date.” “Looking ahead, demand in our Aerospace and Defense end-use market continues to accelerate as customers gain confidence in higher build rates. As a result, we saw sequential growth in bookings for the commercial aerospace structural sub-market during the quarter. Structural demand is closely tied to new production activity and is a clear indication of growing confidence in the aerospace supply chain. And as customers prioritize security of supply for these critical applications, we continue to advance long-term agreements that support volume visibility and pricing consistency, reinforcing our outlook for sustained growth.” “With the record third quarter performance and strengthening outlook, we have raised our operating income and adjusted free cash flow expectations for fiscal year 2026. We expect operating income to be in the range of $700 million to $705 million, with adjusted free cash flow to be approximately $350 million.” “Carpenter Technology just delivered record earnings at a time when the Aerospace and Defense end-use market is at the beginning of the growth cycle. With demand accelerating, we believe Carpenter Technology is well positioned to deliver sustained performance and continue to generate long-term value. We remain focused on supporting our customer needs, operational execution and living our Values as we drive to exceptional near-term and long-term performance.”
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