Carpenter Technology reported second-quarter earnings of $2.33 per share for the period ended December 2025, outperforming the consensus estimate of $2.20. This represents a 40% year-over-year increase from the $1.66 per share recorded in the same quarter a year ago. The beat on earnings underscores stronger pricing power in its specialty alloys segment and improved operating leverage across aerospace and defense end markets. Management highlighted that higher average selling prices contributed roughly 15 percentage points of EPS growth, while volume gains added another 10 points, with the remaining improvement driven by productivity initiatives and cost controls.

Looking ahead, analysts expect full-year EPS to rise by approximately 32.5% to $2.20, while revenue is forecast to climb 7.6% to $728.6 million for the current quarter. Consensus estimates have been revised upward by 0.7% over the past 30 days, reflecting growing confidence in sustained demand. Carpenter’s strong buy rating is supported by projected annual sales growth of 7% and EBITDA expansion of nearly 20% from 2025 through 2028, with operating margins anticipated to expand from 23.1% to 32%. At current valuations, the company trades at roughly 24.6 times EV/EBITDA, a price-to-earnings ratio near 42.3 and a price-to-sales ratio of about 6.0. Its balance sheet remains healthy, with a debt-to-equity ratio around 0.37 and a current ratio near 4.4, providing ample liquidity to fund ongoing capital investments.