Carpenter Technology Corporation reported a record quarterly operating income of $153.3 million for the first quarter of fiscal year 2026. The Specialty Alloys Operations segment saw an operating margin increase to 32.0%, up from 26.3% in the previous year. Bookings for Aerospace and Defense markets increased 23% sequentially. Long-term agreements with aerospace customers were completed with significant value realization.
For the second quarter of fiscal year 2026, Carpenter Technology anticipates operating income between $152 million to $156 million. Fiscal year 2026 operating income is expected to be in the range of $660 million to $700 million, representing a 26% to 33% increase over fiscal year 2025. Adjusted free cash flow for fiscal year 2026 is projected to be $240 million to $280 million.
Carpenter Technology’s first quarter of fiscal year 2026 saw a 31.0% increase in operating income over the previous fiscal quarter, reaching $153.3 million. The Specialty Alloys Operations segment achieved $170.7 million in operating income, with an adjusted operating margin of 32.0%. Demand in the Aerospace and Defense market increased, leading to a 23% sequential booking growth.
Total net sales for the first quarter of fiscal year 2026 were $733.7 million, a 2% increase from the same period last year. Operating income for the quarter was $153.3 million, compared to $113.6 million in the prior year period. Adjusted free cash flow was negative $3.4 million, reflecting higher capital expenditures, particularly for the brownfield expansion project.
Carpenter Technology’s outlook for fiscal year 2026 includes opportunities for increased profitability through higher volume, pricing actions, and productivity. The company is well-positioned for continued growth beyond fiscal year 2027, with market dynamics strengthening and additional capacity coming online. Carpenter Technology will host a conference call and webcast to discuss these financial results.
Read more at GlobeNewswire: Carpenter Technology Reports First Quarter Fiscal Year 2026