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Carpenter Technology Posts Record Q1, Raises FY2026 Outlook on Aerospace Strength

SAO margins reached 32% after a fifteenth straight quarterly gain, reinforcing a pivot to higher-value alloys.

Overview

  • Carpenter reported Q1 operating income of $153.3 million, EPS of $2.43, and revenue of $733.7 million for the quarter ended Sept. 30.
  • The quarter exceeded Wall Street estimates, with analysts expecting $2.13 EPS and $729.1 million in revenue, according to Zacks-based reports.
  • The Specialty Alloys Operations segment produced $170.7 million in operating income and a 32.0% adjusted margin, marking the fifteenth consecutive quarterly increase.
  • Aerospace and defense bookings rose 23% sequentially, and the company finalized several long-term aerospace agreements with what it described as significant value realization.
  • FY2026 guidance calls for $660 million–$700 million in operating income and $240 million–$280 million in adjusted free cash flow after brownfield spending of $175 million–$185 million, with Q2 operating income guided to $152 million–$156 million and $49.1 million in Q1 share repurchases executed.