Carpenter Technology (CRS) Q4 2026 earnings summary

Executive summary

• Achieved record quarterly operating income of $207M in Q4 FY26, up 11% sequentially and 37% year-over-year, with FY2026 adjusted operating income of $702M, a 34% increase over FY2025.

• Strong demand and operational execution, especially in aerospace and defense, drove performance and margin expansion.

• Generated $605M in cash from operating activities and $362.3M in adjusted free cash flow for FY2026.

• Leadership transition occurred following the CEO's passing; the previous CEO was reappointed.

• Continued share repurchases, totaling $179.1M in FY26 and $281M to date under a $400M authorization.

Financial highlights

• Q4 FY26 net sales excluding surcharge were $679.7M, up 4% sequentially and 9% year-over-year; total net sales were $851.0M, up 13% year-over-year.

• Q4 gross profit was $268.9M, up 26% year-over-year and 7% sequentially.

• Q4 EPS was $3.23; effective tax rate was 20.7%.

• FY2026 net income was $529.8M, with adjusted EPS of $10.76.

• FY2026 capital expenditures totaled $242.7M, with $85.1M in Q4.

Outlook and guidance

• FY2027 operating income expected between $850–$880M, a 21–25% increase over FY2026.

• FY2029 operating income target of $1.2–$1.3B, implying a 20%+ three-year CAGR.

• FY2027 adjusted free cash flow projected at $400–$430M.

• Q1 FY2027 operating income guidance: $195–$200M.

• Brownfield capacity expansion project remains on schedule for completion by early FY2028.