Carpenter(US:CRS) ZACKSยท2025-10-24 16:21Core Insights - Carpenter Technology Corporation (CRS) reported adjusted earnings of $2.43 per share for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of $2.13 and up from $1.73 in the same quarter last year, driven by product mix improvements and operational efficiencies [1][8] - Net revenues increased by 2.2% year-over-year to $734 million, surpassing the Zacks Consensus Estimate of $729 million [2][8] - The company expects operating income for fiscal 2026 to be between $660 million and $700 million, indicating a 30% year-over-year growth at the midpoint [9] Financial Performance - The cost of goods sold decreased by 4.4% year-over-year to $517 million, while gross profit rose by 22.7% to $216 million, resulting in a gross margin of 29.5%, up from 24.6% in the prior year [4][8] - Adjusted operating income reached a record $153 million, compared to $117 million in the previous year, with an adjusted operating margin of 20.9% versus 16.3% [4][8] Segment Performance - Specialty Alloys Operations segment reported sales of $660 million, slightly up from $645 million year-over-year, but below the estimated $688 million [5] - Performance Engineered Products segment saw a 7.1% decline in net sales to $94 million, missing the estimate of $104 million, although operating profit increased by 28.8% year-over-year [6] Market Trends - Aerospace and Defense end-use market revenues increased by 11% year-over-year, while Energy end-market revenues rose by 7.9% [3] - Medical end-use market revenues decreased by 16.1%, Distribution markets fell by 16%, and Transportation end-use market revenues dropped by 15.2% [3] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of Q1 fiscal 2026 were $208 million, down from $315.5 million at the end of fiscal 2025, with long-term debt slightly increasing to $695.7 million [7] Share Price Performance - Carpenter Technology's shares have increased by 93.9% over the past year, outperforming the industry's growth of 70% [10]