Carpenter Technology Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Carpenter Technology Corporation CRS reported adjusted earnings of $2.43 per share for first-quarter fiscal 2026, beating the Zacks Consensus Estimate of $2.13. It had posted adjusted earnings of $1.73 in the year-ago quarter. The upside was driven by ongoing improvements in the product mix and expanding operating efficiencies.Including one-time items. earnings per share were $2.43 in the quarter compared with $1.67 in the year-ago quarter.Carpenter Technology Corporation Price, Consensus and EPS Surprise Carpenter Technology Corporation price-consensus-eps-surprise-chart | Carpenter Technology Corporation QuoteNet revenues increased 2.2% year over year to $734 million in the reported quarter. The figure beat the Zacks Consensus Estimate of $729 million. CRS witnessed a year-over-year revenue increase of 11% in the Aerospace and Defense end-use market. Revenues in the Energy end-market were up 7.9%. The metric for the Medical end-use markets was down 16.1%. Revenues in the Distribution markets decreased 16%, whereas Industrial and Consumer end-use markets revenues were up 3.6%. The Transportation end-use market’s revenues fell 15.2%.CRS’s Q1 Operational ResultsThe cost of goods sold in first-quarter fiscal 2026 moved down 4.4% year over year to $517 million. Gross profit increased 22.7% year over year to $216 million. The gross margin came in at 29.5% compared with the prior-year quarter’s 24.6%. Adjusted operating income in the reported quarter was a record $153 million compared with the prior-year quarter’s $117 million. Adjusted operating margin in the quarter under review was 20.9% compared with 16.3% in the year-ago quarter.Carpenter Technology’s Q1 Segmental PerformanceThe Specialty Alloys Operations segment reported sales of $660 million compared with the prior-year quarter’s $645 million. We predicted the segment’s sales to be $688 million. The segment sold 44,750 pounds compared with the year-ago quarter’s 50,100 pounds. The reported figure missed our estimate of 47,378 pounds. The segment posted an operating profit of $171 million compared with the prior-year quarter’s $135 million. Our estimate for the segment’s operating profit was $165 million.The Performance Engineered Products’ net sales fell 7.1% year over year to $94 million. The reported figure missed our estimate of $104 million. The segment sold 2,284 pounds compared with the year-ago quarter’s 2,634 pounds. It was lower than our projection of 2,674 pounds. The segment reported an operating profit of $9.4 million, up 28.8% year over year. Our estimate for the segment’s operating profit was $11.2 million.CRS’ Cash Flow & Balance Sheet UpdatesCarpenter Technology ended first-quarter fiscal 2026 with cash and cash equivalents of $208 million compared with $315.5 million at the end of fiscal 2025. The long-term debt was $695.7 million at the end of the quarter compared with $695.4 million as of the end of fiscal 2025. Cash flow from operating activities was $39 million in the quarter under review compared with $40 million in the prior-year quarter.Carpenter Technology’s Guidance for FY26Carpenter Technology expects operating income of $660-$700 million for fiscal 2026. This indicates 30% year-over-year growth at mid-point. It expects the fiscal second-quarter operating income to be $152-$156 million.CRS’s Share Price PerformanceShares of the company have gained 93.9% in the past year compared with the industry’s growth of 70%. Image Source: Zacks Investment ResearchCarpenter Technology’s Zacks RankCarpenter Technology currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Peer PerformanceCommercial Metals Company CMC reported earnings per share of $1.35 for the fourth quarter of fiscal 2025 (ended Aug. 31, 2025) compared with 90 cents in the year-ago quarter. Adjusted for one-time items, earnings came in at $1.37. Commercial Metals’ bottom line beat the Zacks Consensus Estimate of $1.32. The company’s net revenues in the reported quarter were around $2.11 billion, up 5.9% year over year. The reported figure beat the Zacks Consensus Estimate of $2.04 billion.Worthington Steel, Inc. WS reported first-quarter fiscal 2026 adjusted earnings of 77 cents, beating the Zacks Consensus Estimate of 72 cents. Worthington Steel posted earnings of 56 cents in the year-ago quarter. Worthington Steel’s net revenues in the reported quarter were around $873 million, up 5% year over year. The reported figure beat the Zacks Consensus Estimate of $736 million.Steel - Specialty Stock Awaiting ResultsMetallus Inc. MTUS is scheduled to release third-quarter fiscal 2025 results on Nov. 6. The Zacks Consensus Estimate for Metallus’s third-quarter fiscal 2025 earnings is pegged at 17 cents per share. MTUS reported a loss of 9 cents in the year-ago quarter. The Zacks Consensus Estimate for Metallus’ top line is pegged at $288 million, indicating growth of 26.8% from the prior-year reported figure.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Commercial Metals Company (CMC): Free Stock Analysis Report Worthington Steel, Inc. (WS): Free Stock Analysis Report Metallus Inc. (MTUS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks