Carpenter Technology Corporation (CRS) Stock

Understand Carpenter Technology Corporation: how it makes money

Carpenter Technology makes specialty metals (titanium, stainless, tool steels, metal powders) sold to aerospace, defense, medical, and industrial customers. Revenue splits between alloy products and fabricated engineered parts, with aerospace production volumes as the primary demand driver.

Roughly 73% of revenue is core alloy sales with more stable pricing, while the remainder tracks raw-metal surcharges; both legs ultimately ride on a handful of aerospace OEMs hitting their production schedules.

Business quality (Solid): Solid operating profile (24% operating margin, 13% revenue growth) but the stock trades at a 107% premium to industry, making it depend heavily on flawless execution.

Valuation: At 45× earnings, CRS trades 107% above the Steel Works average (22×).

Bull case

• Aerospace backlog drives multi-year flow: Aerospace OEMs are raising production against approximately 16,000 aircraft of backlog, giving Carpenter multi-year deal visibility into its highest-margin end market.
• FY29 profit target implies 20%+ CAGR: Management targets $1.2 billion to $1.3 billion of FY29 operating income, exceeding a 20% three-year CAGR, suggesting volume and pricing gains will compound on top of the current 24% operating margin.
• Brownfield adds scale without greenfield cost: The Brownfield expansion is on schedule and expected to contribute incrementally in fiscal 2028, adding capacity to capture the aerospace build-out without a full greenfield capital cycle.

Bear case

• Boeing build rates are the swing factor: Aerospace growth depends substantially on Boeing achieving planned production-rate increases, so any slip in their build schedule compresses Carpenter's core demand pipeline with limited offset from other end markets.
• Medical channel remains depressed: Medical sales remain materially depressed versus the prior year, and some structural customers are still ordering below expected demand rates, capping near-term revenue breadth outside aerospace.
• Pays 107% premium to peers: Carpenter trades at a P/E of 44.7x versus the Steel Works industry average of 22x (107% above), so any miss on the FY29 operating-income target or a pause in aerospace production faces a steep de-rating risk.

Carpenter Technology Corporation earnings call transcripts

• CRS Q4 FY26 earnings call transcript (reported 2026-07-30) · analysis
• CRS Q3 FY26 earnings call transcript (reported 2026-04-29) · analysis
• CRS Q2 FY26 earnings call transcript (reported 2026-01-29) · analysis

All CRS earnings calls

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