Carpenter Technology reports mixed Q1 results; initiates Q2 outlook

* Carpenter Technology press release [https://seekingalpha.com/pr/20277102-carpenter-technology-reports-first-quarter-fiscal-year-2026-results] (NYSE:CRS [https://seekingalpha.com/symbol/CRS]): Q1 Non-GAAP EPS of $2.43 beats by $0.27.
* Revenue of $733.7M (+2.2% Y/Y) misses by $13.75M.
* _Delivered __$153.3__ million of adjusted operating income, up 31 percent year-over-year and a record quarterly result._
* _Bookings for Aerospace and Defense end-use market up 23 percent sequentially._
* _Completed negotiations on several long-term agreements with aerospace customers, with significant value realization._
* _Executed $49.1 million in share repurchases against $400.0 million repurchase __program._

* OUTLOOK

* _For the second quarter of fiscal year 2026, anticipate between __$152 million to $156 million__ in operating income_
* _Expect fiscal year 2026 operating income to be in the range of $660 million to $700 million, representing a 26 percent to 33 percent increase over fiscal year 2025, with line of sight to the high end of the range from increased volume, pricing actions and productivity all contributing to higher profitability _
* _Project fiscal year 2026 adjusted free cash flow of $240 million to $280 million, net of $175 million to $185 million of spending related to the brownfield capacity expansion project_
* _Committed to fiscal year 2027 target of $765 million to $800 million in operating income with opportunities to exceed_
* _Well-positioned for continued growth beyond fiscal year 2027 with market dynamics continuing to strengthen and additional capacity coming online._

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