Carpenter Technology Posts Record Q4 and FY26, Guides FY27 Operating Income to $850M–$880M, and Sets FY29 Target of $1.2B–$1.3B

summarizeSummary

Carpenter Technology posted record FY26 operating income of $702M and guided FY27 to $850M–$880M, with a FY29 target of $1.2B–$1.3B, underscoring strong aerospace demand and margin expansion.

check_boxKey Events · Earnings and Guidance · CRS

• Record FY26 Results

  FY26 adjusted operating income reached $702.0M, up 34% over FY25, with Q4 operating income of $206.9M (up 37% YoY). SAO segment delivered record adjusted operating margin of 37.8%.

• FY27 Guidance Raised

  Company expects FY27 operating income of $850M-$880M, representing 21-25% growth over FY26, and adjusted free cash flow of $400M-$430M.

• FY29 Medium-Term Target Set

  Introduced FY29 operating income target of $1.2B-$1.3B, reflecting brownfield expansion contributions and sustained demand strength.

• Strong Cash Generation and Capital Returns

  FY26 adjusted free cash flow was $362.3M. Q4 saw $45.2M in share repurchases; $119.0M remains under the $400M buyback program.

auto_awesomeAnalysis · CRS · Manufacturing

Carpenter Technology delivered its most profitable year in history with FY26 adjusted operating income of $702 million, up 34% over FY25, driven by record SAO segment margins of 37.8%. The company guided FY27 operating income to $850–$880 million, a 21–25% increase, and set a FY29 target of $1.2–$1.3 billion, signaling confidence in sustained aerospace and defense demand, productivity gains, and pricing power. The strong cash generation outlook—$400–$430 million in adjusted free cash flow for FY27—supports continued share repurchases and the brownfield expansion. This report comes just two days after the sudden passing of CEO Brian Malloy, making the robust guidance and record results a critical signal of operational stability and strategic continuity under new leadership.