PHILADELPHIA, PA — Carpenter Technology Corporation (NYSE: CRS) reported record operating income for its fiscal second quarter as accelerating demand from aerospace and defense customers drove higher margins, stronger cash generation, and an upgraded outlook for the year.
For the quarter ended December 31, 2025, Carpenter posted operating income of $155.2 million, a 31 percent increase from the same period a year earlier and the strongest second-quarter result in the company’s history. Net income totaled $105.3 million, or $2.09 per diluted share. Excluding a special debt-related charge, adjusted earnings were $2.33 per share .
Revenue for the quarter rose to $728.0 million, up 8 percent year over year, reflecting higher shipment volumes and improved pricing. The company generated $132.2 million in cash from operating activities during the quarter, while adjusted free cash flow reached $85.9 million, more than double the prior-year period .
Performance was led by Carpenter’s Specialty Alloys Operations segment, which reported operating income of $174.6 million, up 29 percent year over year. Adjusted operating margin in the segment expanded to 33.1 percent, marking the sixteenth consecutive quarterly margin increase and highlighting continued gains in productivity and product mix .
Demand from the aerospace and defense market continued to strengthen, with commercial aerospace bookings climbing 23 percent sequentially during the quarter. Carpenter said customers are increasingly focused on securing long-term supply, prompting the company to complete negotiations on several new long-term agreements that are expected to deliver significant value over time .
Based on the strong second-quarter performance and improving demand visibility, Carpenter raised its fiscal 2026 operating income guidance to a range of $680 million to $700 million, representing growth of roughly 30 percent to 33 percent over fiscal 2025. The company also increased its adjusted free cash flow outlook to at least $280 million for the year .
During the quarter, Carpenter continued returning capital to shareholders, executing $32.1 million in share repurchases under its $400.0 million authorization. At the end of the quarter, the company reported total liquidity of $730.8 million, supported by cash on hand and available credit facilities .
Founded in 1889, Carpenter Technology is a global supplier of high-performance specialty alloys used in critical aerospace, defense, medical, energy, and industrial applications. The company said its expanding margins, strong balance sheet, and long-term agreements position it for continued growth well beyond fiscal 2026 .
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