---
title: "Carpenter Tech | 8-K: FY2026 Revenue Misses Estimate at USD 851 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294412023.md"
datetime: "2026-07-30T20:32:25.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294412023.md)
  - [en](https://longbridge.com/en/news/294412023.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294412023.md)
generator: "portal-rs"
---

# Carpenter Tech | 8-K: FY2026 Revenue Misses Estimate at USD 851 M

Revenue: As of FY2026, the actual value is USD 851 M, missing the estimate of USD 3.134 B.

EPS: As of FY2026, the actual value is USD 3.23, missing the estimate of USD 10.447.

EBIT: As of FY2026, the actual value is USD 206.9 M.

#### Overall Financial Performance (Fourth Quarter Fiscal Year 2026)

-   Operating income for Carpenter Technology Corporation was $207 million, marking an 11% increase over Q3 FY26 and a 37% increase over Q4 FY25.
-   The company achieved an adjusted operating margin ex. surcharge revenue of 30.4%.
-   Gross profit totaled $268.9 million.
-   Selling, general and administrative expenses were $62.0 million.
-   The effective tax rate stood at 20.7%.
-   Net income reached $162.4 million.
-   Adjusted free cash flow was $155.0 million in Q4 FY26.

#### Segment Performance (Fourth Quarter Fiscal Year 2026)

##### Specialty Alloys Operations (SAO)

-   Net sales ex. surcharge revenue for SAO increased 4% sequentially to $607.4 million, driven by the Aerospace and Defense and Industrial and Consumer end-use markets.
-   SAO’s operating income reached a record $229.7 million, up 10% sequentially and 38% year-over-year.
-   The adjusted operating margin ex. surcharge revenue for SAO achieved a record 37.8%, marking its eighteenth consecutive quarter of margin expansion.

##### Performance Engineered Products (PEP)

-   Net sales ex. surcharge revenue for PEP increased 8% sequentially to $98.2 million, reflecting increased sales across all end-use markets except Energy.
-   PEP’s operating income was $7.1 million, remaining flat sequentially.
-   The adjusted operating margin ex. surcharge revenue for PEP stood at 7.2%.

#### Cash Flow and Liquidity (Fiscal Year 2026 and Q4 FY26)

-   Carpenter Technology Corporation generated $605.0 million in cash from operating activities for fiscal year 2026.
-   Adjusted free cash flow for FY26 totaled $362.3 million, including investments in brownfield expansion.
-   Capital expenditures for FY26 amounted to $242.7 million.
-   Total liquidity at the end of Q4 FY26 remained healthy at $892.4 million, comprising $393.3 million in cash and $499.1 million in available borrowings under the Credit Facility.
-   The net debt/EBITDA ratio stood at -0.3x, with no near-term debt maturities.

#### Shareholder Returns

-   Carpenter Technology Corporation executed $45.2 million in share repurchases in Q4 FY26, bringing the total to $281.0 million against a $400.0 million authorization.
-   Annual dividends paid in FY26 amounted to $40.3 million.

#### Outlook and Guidance

Carpenter Technology Corporation expects Q1 FY27 SAO operating income to be between $218 million and $222 million, and PEP operating income to be $6 million to $7 million. For the full fiscal year 2027, the company anticipates operating income of $850 million to $880 million, representing a 21% to 25% increase over FY26, and expects to generate $400 million to $430 million in adjusted free cash flow. The company targets FY29 operating income of $1,200 million to $1,300 million, reflecting a strong 3-year earnings compound annual growth rate of 20% to 23%, with market dynamics projected to strengthen beyond FY29.

### Related Stocks

- [CRS.US](https://longbridge.com/en/quote/CRS.US.md)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**