Carpenter Technology (CRS) Is Down 6.8% After Fourth Quarter Miss and Raised Earnings Guidance
- On July 31, 2025, Carpenter Technology Corporation reported fourth quarter sales of US$755.6 million, a decrease from the prior year, but net income increased to US$111.7 million, with basic earnings per share rising to US$2.23.
- The company also issued operating income guidance for fiscal 2026 that implies potential growth of 26% to 33% over the previous year’s adjusted results.
- We'll examine how Carpenter Technology's stronger year-over-year earnings and increased guidance may reshape its investment narrative outlook.
The end of cancer? These 25 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
Carpenter Technology Investment Narrative Recap
To be a shareholder in Carpenter Technology, you need to believe in the company’s ability to generate consistent earnings growth in specialized metals, especially as it serves the aerospace and defense sectors. While the recent strong earnings and upbeat operating income guidance support confidence in near-term momentum, the biggest risk remains potential slowdowns or delays from aerospace customers, a factor unaffected by the latest results. The most immediate catalyst continues to be robust build rates and new long-term supply agreements in aerospace, helping drive growth, but efficiency hurdles remain important to monitor.
Among the latest announcements, Carpenter Technology’s updated guidance projecting operating income of US$660 million to US$700 million for fiscal 2026 stands out. This reflects management’s view of higher profit potential despite slightly lower sales, aligning with current catalysts around margin expansion and demand in defense-related markets.
However, before focusing on the positives, investors should also be aware of the ongoing risk tied to Carpenter’s reliance on aerospace customers...
Read the full narrative on Carpenter Technology (it's free!)
Carpenter Technology's narrative projects $3.6 billion in revenue and $649.0 million in earnings by 2028. This requires 7.0% yearly revenue growth and a $291.3 million increase in earnings from the current $357.7 million.
Uncover how Carpenter Technology's forecasts yield a $316.43 fair value, a 23% upside to its current price.
Exploring Other Perspectives
Three Simply Wall St Community members estimate fair values for Carpenter Technology that range from US$152.06 to US$316.43 per share. While many see potential in recent margin expansion, participant views vary widely, explore more perspectives to see how this could affect the company’s progress.
Explore 3 other fair value estimates on Carpenter Technology - why the stock might be worth 41% less than the current price!
Build Your Own Carpenter Technology Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Carpenter Technology research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Carpenter Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Carpenter Technology's overall financial health at a glance.
Ready To Venture Into Other Investment Styles?
These stocks are moving-our analysis flagged them today. Act fast before the price catches up:
- These 18 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
- The latest GPUs need a type of rare earth metal called Dysprosium and there are only 25 companies in the world exploring or producing it. Find the list for free.
- AI is about to change healthcare. These 26 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
Discover if Carpenter Technology might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com