A Business at a Glance
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CARPENTER TECHNOLOGY CORP
CRS
$30.6B
Mkt Cap
$603.69
+0.36%
CARPENTER TECHNOLOGY CORP (CRS) has a current P/E ratio of 70.1, compared to its historical median P/E of 30.9. The stock is currently considered Expensive based on its historical valuation range.
CARPENTER TECHNOLOGY CORP (CRS) has a 5-year average return on invested capital (ROIC) of 4.9%. This is below average and may indicate limited pricing power.
CARPENTER TECHNOLOGY CORP (CRS) has a market capitalization of $30.0B. It is classified as a large-cap stock.
Yes, CARPENTER TECHNOLOGY CORP (CRS) pays a dividend with a trailing twelve-month yield of 0.13%. The company also returns capital through share buybacks, with a buyback yield of 0.53%.
Based on historical P/E analysis, CARPENTER TECHNOLOGY CORP (CRS) appears expensive. The current P/E of 70.1 is 127% above its historical median of 30.9. The estimated fair value CAGR (P/E method) is 14.9%.
CARPENTER TECHNOLOGY CORP (CRS) operates in the Steel Works, Blast Furnaces & Rolling Mills (Coke Ovens) industry, within the Materials sector.
Carpenter Technology Corporation, founded in 1889, is a producer and distributor of premium specialty alloys including titanium, nickel, cobalt, stainless steels, alloy steels, and tool steels, serving critical applications across aerospace, defense, medical, transportation, energy, industrial, and consumer markets. The company operates through two segments: Specialty Alloys Operations (SAO), which comprises major premium alloy and stainless steel manufacturing at mills in Pennsylvania, South Carolina, and Alabama, and Performance Engineered Products (PEP), which includes the Dynamet titanium business, Carpenter Additive operations, and distribution businesses managed with entrepreneurial flexibility. Carpenter's business model relies on long-term customer relationships and pricing mechanisms including surcharges, indexing, and base price adjustments to manage raw material volatility, while the company has evolved to become a pioneer in alloys engineered for additive manufacturing and soft magnetics applications. The company maintains a competitive moat through over 135 years of metallurgical and manufacturing expertise, proprietary patents and licenses, and a diversified customer base with no single customer representing 10 percent or more of sales, enabling it to serve demanding, highly engineered applications where material performance is critical. Distribution occurs through integrated mill operations optimized for efficiency and through specialized distribution channels, with the company not materially dependent on any single patent or license despite holding numerous U.S. and international patents.
【Aerospace-driven earnings acceleration】 Management expects continued productivity improvements and healthy demand across core end-use markets to support further sales growth, with aerospace and defense representing the primary growth driver as Boeing and Airbus ramp production to record backlogs and build rates. Pricing is anticipated to remain a tailwind due to the supply-demand imbalance in nickel-based superalloys, which is expected to intensify in the coming years, with management noting that pricing actions will continue to be favorable and that the dynamics driving current margin expansion are expected to only strengthen. The company is confident in exceeding its fiscal year 2027 earnings target and has signaled that fiscal year 2027 will not represent peak earnings, with plans and line of sight to further earnings growth beyond that period as aerospace industry demand continues to accelerate. Management expects SAO margins to continue expanding driven by increased productivity, product mix optimization, and pricing actions, while the medical end-use market is anticipated to recover and return to growth in the near term following recent softness.
| Metric | Target | Period |
|---|---|---|
| Operating income | $680 million–$700 million | FY2026 |
| Operating income | $765 million–$800 million | FY2027 |
| Adjusted free cash flow | at least $350 million | FY2026 |
| Capital expenditures | about $260 million | FY2026 |
| SAO operating income | $224 million–$228 million | Q4 FY2026 |
| Effective tax rate | about 23% | Q4 FY2026 |
| Corporate costs | $25 million–$26 million | Q4 FY2026 |
Operating income (FY2026): “Given the supply-demand dynamics I just covered and the visibility we have for the second half of the fiscal year 2026, we are raising our guidance to $680 million-$700 million.”
Operating income (FY2027): “At the start of fiscal year 2026, we projected operating income for the current fiscal year of $660 million-$700 million. Given the supply-demand dynamics I just covered and the visibility we have for the second half of the fiscal year 2026, we are raising our guidance to $680 million-$700 million. This range for fiscal year 2026 represents a 30%-33% increase over our record fiscal year 2025 earnings. As you recall, we established fiscal year 2027 guidance of $765 million-$800 million almost a year ago in February of 2025.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.0B | 2.9B | 2.8B | 2.6B | 1.8B | 1.5B |
| Net Income | 479M | 376M | 187M | 56M | -49M | -230M |
| EPS | $9.63 | $7.42 | $3.70 | $1.14 | $-1.01 | $-4.76 |
| Free Cash Flow | 407M | 286M | 178M | -68M | -85M | 150M |
| ROIC | 21.3% | 19.1% | 13.7% | 5.3% | -2.4% | -11.2% |
| Gross Margin | 29.7% | 26.7% | 21.2% | 13.2% | 8.2% | 0.1% |
| Debt/Equity | 0.33 | 0.37 | 0.43 | 0.50 | 0.52 | 0.50 |
| Dividends/Share | $0.81 | $0.80 | $0.80 | $0.80 | $0.80 | $0.80 |
| Operating Income | 647M | 522M | 323M | 133M | -25M | -249M |
| Operating Margin | 21.3% | 18.1% | 11.7% | 5.2% | -1.4% | -16.8% |
| ROE | 23.2% | 21.4% | 12.3% | 4.1% | -3.6% | -16.2% |
| Shares Outstanding | 50M | 51M | 50M | 49M | 49M | 48M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 2.2B | 2.2B | 1.8B | 1.8B | 2.2B | 2.4B | 2.2B | 1.5B | 1.8B | 2.6B | 2.8B | 2.9B | 3.0B |
| Gross Margin | 18.4% | 14.3% | 14.1% | 16.7% | 17.7% | 18.7% | 15.1% | 0.1% | 8.2% | 13.2% | 21.2% | 26.7% | 29.7% |
| R&D | 19M | 19M | 16M | 17M | 19M | 23M | 28M | 20M | 20M | 24M | 26M | 26M | 26M |
| SG&A | 187M | 178M | 174M | 176M | 193M | 203M | 201M | 180M | 175M | 204M | 230M | 243M | 254M |
| EBIT | 212M | 112M | 52M | 122M | 189M | 241M | 25M | -249M | -25M | 133M | 323M | 522M | 647M |
| Op. Margin | 9.8% | 5.0% | 2.8% | 6.8% | 8.8% | 10.1% | 1.2% | -16.8% | -1.4% | 5.2% | 11.7% | 18.1% | 21.3% |
| Net Income | 133M | 59M | 11M | 47M | 189M | 167M | 1.5M | -230M | -49M | 56M | 187M | 376M | 479M |
| Net Margin | 6.1% | 2.6% | 0.6% | 2.6% | 8.7% | 7.0% | 0.1% | -15.6% | -2.7% | 2.2% | 6.8% | 13.1% | 15.8% |
| Non-Recurring | -1.5M | 29M | 23M | -3.2M | 0 | 0 | 103M | 69M | -2.0M | -2.5M | 11M | -900K | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 7.9% | 3.8% | 1.8% | 4.8% | 10.4% | 9.2% | 0.8% | -11.2% | -2.4% | 5.3% | 13.7% | 19.1% | 21.3% |
| ROE | 9.5% | 4.1% | 0.9% | 4.1% | 14.0% | 11.1% | 0.1% | -16.2% | -3.6% | 4.1% | 12.3% | 21.4% | 23.2% |
| ROA | 4.5% | 2.0% | 0.4% | 1.7% | 6.4% | 5.4% | 0.0% | -7.4% | -1.7% | 1.9% | 5.9% | 11.1% | 13.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 240M | 283M | 257M | 130M | 209M | 232M | 232M | 250M | 6.0M | 15M | 275M | 440M | 623M |
| Free Cash Flow | -110M | 112M | 162M | 32M | 74M | 52M | 60M | 150M | -85M | -68M | 178M | 286M | 407M |
| Owner Earnings | 116M | 150M | 129M | -500K | 75M | 93M | 97M | 116M | -136M | -133M | 121M | 278M | 453M |
| CapEx | 349M | 171M | 95M | 99M | 135M | 180M | 171M | 101M | 91M | 82M | 97M | 154M | 216M |
| Maint. CapEx | 112M | 122M | 119M | 118M | 117M | 122M | 124M | 124M | 131M | 131M | 135M | 139M | 144M |
| Growth CapEx | 237M | 48M | 0 | 0 | 18M | 59M | 48M | 0 | 0 | 0 | 0 | 15M | 71M |
| D&A | 112M | 122M | 119M | 118M | 117M | 122M | 124M | 124M | 131M | 131M | 135M | 139M | 144M |
| CapEx/OCF | 145.7% | 60.3% | 37.1% | 75.6% | 64.5% | 77.6% | 73.9% | 40.2% | 1521.7% | 559.9% | 35.1% | 35.0% | 34.6% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 39M | 38M | 35M | 34M | 34M | 39M | 39M | 39M | 39M | 39M | 40M | 40M | 40M |
| Dividend Yield | 1.5% | 1.9% | 2.6% | 2.2% | 1.7% | 1.9% | 1.4% | 2.8% | 2.5% | 2.0% | 1.1% | 0.4% | 0.1% |
| Share Buybacks | 0 | 125M | 124M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 102M | 158M |
| Buyback Yield | N/A | 6.8% | 9.7% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.7% | 0.5% |
| Stock-Based Comp | 11M | 10M | 8.7M | 13M | 18M | 18M | 11M | 10M | 11M | 16M | 20M | 23M | 25M |
| Debt Repayment | 0 | 0 | 0 | 0 | 55M | 0 | 0 | 250M | 300M | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 484M | 534M | 529M | 539M | 490M | 543M | 529M | 407M | 538M | 649M | 495M | 380M | 396M |
| Cash & Equiv. | 120M | 70M | 82M | 66M | 56M | 27M | 193M | 287M | 154M | 45M | 199M | 316M | 295M |
| Long-Term Debt | 604M | 604M | 611M | 550M | 546M | 551M | 552M | 695M | 692M | 693M | 694M | 695M | 690M |
| Debt/Equity | 0.40 | 0.46 | 0.55 | 0.50 | 0.37 | 0.38 | 0.50 | 0.50 | 0.52 | 0.50 | 0.43 | 0.37 | 0.33 |
| Interest Coverage | 12.5 | 4.0 | 1.8 | 4.1 | 6.7 | 9.3 | 1.3 | -7.6 | -0.6 | 2.5 | 6.3 | 10.8 | 15.4 |
| Equity | 1.5B | 1.3B | 1.1B | 1.2B | 1.5B | 1.5B | 1.4B | 1.4B | 1.3B | 1.4B | 1.6B | 1.9B | 2.1B |
| Total Assets | 3.1B | 2.9B | 2.8B | 2.9B | 3.0B | 3.2B | 3.2B | 3.0B | 2.9B | 3.1B | 3.3B | 3.5B | 3.7B |
| Total Liabilities | 1.6B | 1.6B | 1.7B | 1.7B | 1.5B | 1.7B | 1.8B | 1.6B | 1.6B | 1.7B | 1.7B | 1.6B | 1.6B |
| Intangibles | 81M | 72M | 63M | 65M | 63M | 67M | 52M | 43M | 35M | 29M | 15M | 9.5M | 5.3M |
| Retained Earnings | 1.3B | 1.3B | 1.3B | 1.3B | 1.5B | 1.6B | 1.6B | 1.3B | 1.2B | 1.2B | 1.4B | 1.7B | 2.0B |
| Working Capital | 764M | 748M | 712M | 698M | 816M | 820M | 814M | 811M | 744M | 823M | 1.1B | 1.3B | 1.4B |
| Current Assets | 1.2B | 1.1B | 1.0B | 1.1B | 1.2B | 1.2B | 1.3B | 1.1B | 1.1B | 1.3B | 1.6B | 1.8B | 1.9B |
| Current Liabilities | 431M | 322M | 299M | 396M | 363M | 416M | 452M | 306M | 376M | 459M | 466M | 484M | 508M |
| Per Share Data | |||||||||||||
| EPS | 2.47 | 1.11 | 0.23 | 0.99 | 3.92 | 3.43 | 0.02 | -4.76 | -1.01 | 1.14 | 3.70 | 7.42 | 9.63 |
| Owner EPS | 2.16 | 2.84 | 2.63 | -0.01 | 1.56 | 1.92 | 1.29 | 2.40 | -2.80 | -2.68 | 2.39 | 5.49 | 9.13 |
| Book Value | 27.98 | 25.07 | 22.49 | 25.25 | 30.90 | 31.22 | 19.28 | 28.86 | 27.37 | 28.22 | 32.31 | 37.24 | 41.61 |
| Cash Flow/Share | 4.46 | 5.34 | 5.24 | 2.74 | 4.35 | 4.77 | 3.09 | 5.18 | 0.12 | 0.30 | 5.45 | 8.69 | 12.55 |
| Dividends/Share | 0.72 | 0.72 | 0.72 | 0.72 | 0.72 | 0.80 | 0.52 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.81 |
| Shares Out. | 53.8M | 52.9M | 49.1M | 47.5M | 48.1M | 48.7M | 75.0M | 48.2M | 48.6M | 49.5M | 50.4M | 50.7M | 49.7M |
| Valuation | |||||||||||||
| P/E Ratio | 20.5 | 31.2 | 113.5 | 32.4 | 11.7 | 12.4 | N/A | N/A | N/A | 46.5 | 29.4 | 37.1 | 62.7 |
| P/FCF | N/A | 16.4 | 7.9 | 47.9 | 29.8 | 39.9 | 26.0 | 11.9 | N/A | N/A | 30.8 | 48.7 | 73.6 |
| EV/EBIT | 14.5 | 20.6 | 33.5 | 21.1 | 14.0 | 10.7 | 75.2 | N/A | N/A | 24.2 | 17.9 | 26.8 | 47.0 |
| Price/Book | 1.8 | 1.4 | 1.2 | 1.3 | 1.5 | 1.4 | 1.1 | 1.3 | 1.0 | 1.9 | 3.4 | 7.4 | 14.5 |
| Price/Sales | 1.2 | 0.9 | 0.8 | 0.8 | 0.9 | 0.9 | 1.2 | 0.9 | 0.9 | 0.8 | 1.3 | 3.1 | 9.9 |
| FCF Yield | -4.0% | 6.1% | 12.6% | 2.1% | 3.4% | 2.5% | 3.9% | 8.4% | -6.3% | -2.6% | 3.3% | 2.1% | 1.4% |
| Market Cap | 2.7B | 1.8B | 1.3B | 1.5B | 2.2B | 2.1B | 1.6B | 1.8B | 1.4B | 2.6B | 5.5B | 13.9B | 30.0B |
| Avg. Price | 48.16 | 38.30 | 27.77 | 32.18 | 42.11 | 42.84 | 35.87 | 28.82 | 32.70 | 39.98 | 71.42 | 177.51 | 603.69 |
| Year-End Price | 50.57 | 34.68 | 26.12 | 32.06 | 45.98 | 42.67 | 20.91 | 36.82 | 27.82 | 53.00 | 108.81 | 275.21 | 603.69 |
CARPENTER TECHNOLOGY CORP passes 3 of 9 quality checks, indicating weak fundamentals.
CARPENTER TECHNOLOGY CORP trades at 70.1x trailing earnings, compared to its 15-year median P/E of 30.9x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 94.9x vs a median of 30.3x. The company's 5-year average ROIC is 4.9% with a gross margin of 13.9%. Total shareholder yield (dividends + buybacks) is 0.7%. At current prices, the estimated annualized return to fair value is +23.9%.
CARPENTER TECHNOLOGY CORP (CRS) reported annual revenue of $2.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
CARPENTER TECHNOLOGY CORP (CRS) has a net profit margin of 13.1%. This is a healthy margin.
CARPENTER TECHNOLOGY CORP (CRS) generated $286 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CARPENTER TECHNOLOGY CORP (CRS) has a debt-to-equity ratio of 0.37. This indicates a conservatively financed balance sheet.
CARPENTER TECHNOLOGY CORP (CRS) reported earnings per share (EPS) of $7.42 in its most recent fiscal year.
CARPENTER TECHNOLOGY CORP (CRS) has a return on equity (ROE) of 21.4%. This indicates the company generates strong returns for shareholders.
CARPENTER TECHNOLOGY CORP (CRS) has a 5-year average gross margin of 13.9%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for CARPENTER TECHNOLOGY CORP (CRS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CARPENTER TECHNOLOGY CORP (CRS) has a book value per share of $37.24, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued productivity improvements and healthy demand across core end-use markets to support further sales growth, with aerospace and defense representing the primary growth driver as Boeing and Airbus ramp production to record backlogs and build rates. Pricing is anticipated to remain a tailwind due to the supply-demand imbalance in nickel-based superalloys, which is expected to intensify in the coming years, with management noting that pricing actions will continue to be favorable and that the dynamics driving current margin expansion are expected to only strengthen. The company is confident in exceeding its fiscal year 2027 earnings target and has signaled that fiscal year 2027 will not represent peak earnings, with plans and line of sight to further earnings growth beyond that period as aerospace industry demand continues to accelerate. Management expects SAO margins to continue expanding driven by increased productivity, product mix optimization, and pricing actions, while the medical end-use market is anticipated to recover and return to growth in the near term following recent softness.
Based on recent SEC filings and earnings calls, CARPENTER TECHNOLOGY CORP (CRS) has provided the following forward guidance: Operating income: $680 million–$700 million (FY2026); Operating income: $765 million–$800 million (FY2027); Adjusted free cash flow: at least $350 million (FY2026); Capital expenditures: about $260 million (FY2026); SAO operating income: $224 million–$228 million (Q4 FY2026), plus 2 additional metrics.
Adjusted free cash flow (FY2026): “We are increasing our outlook for free cash flow and currently expect to generate at least $350 million of adjusted free cash flow in fiscal year 2026.”
Capital expenditures (FY2026): “We look to the balance of the year, we expect capital expenditures for fiscal year 2026 to finish at about $260 million.”
SAO operating income (Q4 FY2026): “Based on current visibility, we expect SAO to generate operating income in the range of $224 million-$228 million in the fourth quarter, representing yet another strong step forward for the segment.”
Effective tax rate (Q4 FY2026): “For the upcoming fourth quarter of fiscal year 2026, we expect the effective tax rate, excluding discrete items, to be about 23%.”
Corporate costs (Q4 FY2026): “For the upcoming fourth quarter of fiscal year 2026, we expect corporate costs to be between $25 million-$26 million.”
No recent press releases.