AI-extracted from the 10-Q filed 2026-10-22 — Q1 FY2027 (quarter ended September 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Carpenter Technology's quarterly net sales rose 9% to $798.2M and operating income rose 28% to $196.4M, led by Aerospace and Defense growth and productivity and pricing gains.
Biggest Revenue Drivers
Specialty Alloys Operations$730.4M+11% YoY
Increased demand in the Aerospace and Defense and Industrial and Consumer end-use markets compared to the prior-year quarter.
Performance Engineered Products$91.1M-3% YoY
Lower sales in the Medical end-use market partially offset by growth in the Energy and Distribution end-use markets.
Biggest Revenue Drivers
Total revenue: $798.2M+9% YoY
Specialty Alloys Operations$730.4M+11% YoY
Increased demand in the Aerospace and Defense and Industrial and Consumer end-use markets compared to the prior-year quarter.
Within Specialty Alloys Operations
Aerospace and Defense$509.2M+14% YoY
Double-digit increases in the Aerospace engine, fastener and structural sub-markets driven by increasing build rates and the need to maintain aging fleets.
Performance Engineered Products$91.1M-3% YoY
Lower sales in the Medical end-use market partially offset by growth in the Energy and Distribution end-use markets.
Largest Expense Items
Cost of sales$541.9M+5% YoY
Increase tracks higher sales volume; gross margin improved to 32.1% from 29.5% on productivity, mix management and pricing.
Selling, general and administrative expenses$59.9M-5% YoY
Reflects lower variable compensation costs compared to the three months ended September 30, 2025.
Interest expense, net$7.1M-38% YoY
Due to higher capitalized interest and a lower interest rate on the 2034 Notes versus the notes redeemed in November 2025.
Margins: Gross margin rose to 32.1% from 29.5%, and operating margin to 24.6% from 20.9%. The company attributes the expansion to productivity improvements, mix management and pricing actions, while noting surcharge revenue dilutes reported margin percentages.
Watch Items from the Filing
Free cash flow was negative $24.8M as capital expenditures rose to $77.7M from $42.6M, driven by the brownfield expansion; FY2027 capex is guided to $355.0M-$375.0M.
Inventories increased to $884.4M from $822.9M, consuming $61.6M of operating cash in the quarter.
Medical end-use market sales fell 12% YoY to $65.5M, with lower shipments as the medical supply chain manages inventory closely.
Company repurchased $133.9M of stock in the quarter and authorized a new $1.0B buyback in August 2026, with $985.0M remaining.
No single customer accounted for 10% or more of net sales this quarter; liquidity totaled $658.6M including $499.1M of undrawn credit facility capacity.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About CARPENTER TECHNOLOGY CORP (CRS): stock profile, AI score and financials
CARPENTER TECHNOLOGY CORP (CRS) stock profile, AI quality score, and SEC EDGAR financial data, a Materials sector company. 13F Pro's AI-powered ranking engine scores CRS at 64.0/100 on a composite quality score built from its SEC filings, placing it at rank #572 of 2,925 stocks — the top 25% of the AI-ranked universe. CRS scores in the top quartile across balance sheet strength (93.8), profitability (80.7). Areas of concern include earnings quality (39.8), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q1 2027), CARPENTER TECHNOLOGY CORP reports quarterly revenue of $798.2M, net income of $162.5M, an operating margin of 24.6%. Top institutional holders of CRS by reported 13-F value include BlackRock, FMR, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. CRS trades on the NYSE exchange and files with the SEC under CIK 17843. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CRS daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for CARPENTER TECHNOLOGY CORP directly from SEC EDGAR.