Carpenter Technology Q2 Earnings Beat Estimates, Revenues Rise 8% Y/Y

Carpenter Technology Corporation CRS reported adjusted earnings of $2.33 per share for second-quarter fiscal 2026, beating the Zacks Consensus Estimate of $2.20. It had posted adjusted earnings of $1.66 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 $2.09 in the quarter compared with $1.66 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 7.5% year over year to $728 million in the reported quarter. The figure missed the Zacks Consensus Estimate of $729 million. CRS witnessed a year-over-year revenue increase of 15.3% in the Aerospace and Defense end-use market. Revenues in the Energy end-market rose 19.3%. The metric for the Medical end-use markets moved down 22.3%. Revenues in the Distribution markets decreased 14.1%, whereas Industrial and Consumer end-use market revenues rose 10.1%. The Transportation end-use market’s revenues fell 19.2%CRS’s Q2 Operational ResultsThe cost of goods sold in second-quarter fiscal 2026 moved up 2.1% year over year to $510 million. Gross profit increased 23% year over year to $218 million. The gross margin came in at 30% compared with the prior-year quarter’s 26.2%. Adjusted operating income in the reported quarter was a record $155 million compared with the prior-year quarter’s $119 million. The adjusted operating margin in the quarter under review was 21.3% compared with 17.6% in the year-ago quarter.Carpenter Technology’s Q2 Segmental PerformanceThe Specialty Alloys Operations segment reported sales of $662 million compared with the prior-year quarter’s $602 million. We predicted the segment’s sales to be $672 million. The segment sold 46,836 pounds compared with the year-ago quarter’s 44,714 pounds. The reported figure missed our estimate of 44,956 pounds. The segment posted an operating profit of $175 million compared with the prior-year quarter’s $136 million. Our estimate for the segment’s operating profit was $171 million.The Performance Engineered Products’ net sales fell 12.4% year over year to $83 million. The reported figure missed our estimate of $99 million. The segment sold 2,218 pounds compared with the year-ago quarter’s 2,208 pounds. It was higher than our projection of 2,199 pounds. The segment reported an operating profit of $6.9 million, a dip of 1.4% year over year. Our estimate for the segment’s operating profit was $9.4 million.CRS’ Cash Flow & Balance Sheet UpdatesCarpenter Technology ended second-quarter fiscal 2026 with cash and cash equivalents of $232 million compared with $315.5 million at the end of fiscal 2025. The long-term debt was $690 million at the end of the quarter compared with $695 million as of the end of fiscal 2025. Cash flow from operating activities was $132 million in the quarter under review compared with $68 million in the prior-year quarter.Carpenter Technology’s Guidance for FY26CRS expects operating income of $680-$700 million for fiscal 2026 compared with the prior stated $660-$700 million. It expects the fiscal third-quarter operating income to be $177-$182 million.CRS’s Share Price PerformanceShares of the company have surged 66.9% in the past year compared with the industry’s growth of 72.6%.  Image Source: Zacks Investment Research Carpenter Technology’s Zacks RankCRS currently carries a Zacks Rank #2 (Buy). 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 $1.84 for the first quarter of fiscal 2026 compared with 78 cents in the year-ago quarter. Commercial Metals’ bottom line beat the Zacks Consensus Estimate of $1.55. The company’s net revenues in the reported quarter were $2.12 billion, up 11% year over year. The reported figure beat the Zacks Consensus Estimate of $1.99 billion.Steel - Specialty Stock Awaiting ResultsMetallus Inc. MTUS is scheduled to release fourth-quarter fiscal 2025 results on Feb. 19. The Zacks Consensus Estimate for Metallus’s fourth-quarter fiscal 2025 earnings is pegged at 5 cents per share. MTUS reported a loss of 8 cents in the year-ago quarter. The Zacks Consensus Estimate for Metallus’ top line is pegged at $290 million, indicating growth of 20% from the prior-year reported figure.NWPX Infrastructure, Inc. NWPX is scheduled to release fourth-quarter fiscal 2025 results soon. The Zacks Consensus Estimate for NWPX Infrastructure’s fourth-quarter fiscal 2025 earnings is pegged at 62 cents per share, indicating a year-over-year dip of 38%. The Zacks Consensus Estimate for NWPX Infrastructure’s top line is pegged at $121.5 million, indicating growth of 1.6% from the prior-year reported figure.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.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 NWPX Infrastructure, Inc. (NWPX): 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