| Metric | Value ($ M) | Q1 FY26 |
|---|---|---|
| Revenue | 798.20 | 8.8% |
| Total Income | 798.20 | 8.8% |
| Expenditure | 601.80 | 3.7% |
| PBT | 192.40 | 32.9% |
| Net Profit | 162.50 | 32.6% |
| OPM | 24.61% | 3.71pp |
| NPM | 20.36% | 3.66pp |
| EPS | 3.26 | 33.1% |
Carpenter Technology Reports Q1 FY27 Results with Strong Operating Income Growth
23 Oct 2026 · 2h ago
Summary
Carpenter Technology Corporation announced a strong start to fiscal year 2027, with record first quarter operating income up 28% year-over-year to $196.4 million. The Specialty Alloys Operations (SAO) segment drove significant growth, with operating income up 27% and net sales excluding surcharge revenue increasing by 7% year-over-year. Management expressed confidence in continued margin expansion and accelerating demand, particularly in the Aerospace and Defense markets, and provided a positive outlook for FY27, projecting a 21% to 25% increase in operating income and $400 million to $430 million in free cash flow.
Key Highlights
- 1
Carpenter Technology reported record first quarter operating income, up 28% year-over-year.
- 2
SAO segment operating income increased by 27% year-over-year, with adjusted operating margins at 37.7%.
- 3
Net sales excluding surcharge revenue increased by 7% year-over-year for the SAO segment.
- 4
The company repurchased $133.9 million of stock in the quarter and authorized a new $1.0 billion share repurchase program.
- 5
FY27 operating income outlook represents a 21% to 25% increase over record FY26.
- 6
Anticipates $400 million to $430 million in free cash flow for FY27.
Management Comments
Tony Thene
Completed record first quarter, up 28% year-over-year, strong start to FY27. Volume, mix and price continue to drive expanding margins in SAO. Demand continues to accelerate, especially in Aerospace and Defense end-use market, as supply chain confidence grows with build rates. Pricing remains a tailwind for both LTA and non-LTA business. Brownfield capacity expansion expected to contribute beginning in FY28. Returning cash to shareholders through dividend and $1.0 billion share repurchase program. FY27 operating income outlook represents 21% to 25% increase over record FY26. Anticipate $400 million to $430 million in free cash flow in FY27. FY29 operating income target represents attractive, 3-year 20% to 23% earnings CAGR. FY29 is not the peak, with market dynamics continuing to strengthen.
Tim Lain
SAO segment summary: Net sales excluding surcharge increased 7% year-over-year driven by increased sales to Aerospace and Defense end-use market. Operating income up 27% year-over-year on higher productivity, mix management and realized benefits of pricing actions. Strong demand and pricing environment enabled strong operating margins; sequential comparisons impacted by less available effective capacity uptime due to planned preventive maintenance. Maintaining focus on increasing productivity while managing operating costs closely and optimizing product mix. Demand conditions expected to further accelerate while operating results impacted by available effective capacity uptime due to holidays. Q2-27 operating income expected to be in the range of $214 million to $218 million. PEP segment summary: Net sales excluding surcharge down 5% year-over-year reflecting lower sales in the Medical end-use market. Operating income in-line with expectations and down $2.1 million year-over-year driven by lower Titanium sales particularly in Medical end-use market offset by strength in Additive business. Continuing to drive actions to enhance productivity and throughput rates across manufacturing facilities while closely managing costs. Q2-27 operating income expected to be similar to Q1-27 results.
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