Quarterly report

Summary

• Net sales for the three months ended September 30, 2026 were $798.2 million, a 9 percent increase over the prior-year quarter, and net income was $162.5 million, or $3.25 per diluted share, up from $122.5 million, or $2.43 per diluted share.
• Aerospace and Defense end-use market sales increased 14 percent to $534.6 million, driven by double-digit increases in the engine, fastener and structural sub-markets, while Medical sales fell 12 percent to $65.5 million and Energy fell 15 percent to $46.5 million.
• The Specialty Alloys Operations segment posted operating income of $216.3 million at a 29.6 percent operating margin, while total operating income rose 28 percent to $196.4 million.
• Capital expenditures were $77.7 million, producing negative free cash flow of $24.8 million, and the company expects fiscal 2027 capital expenditures of $355.0 million to $375.0 million including the Athens, Alabama brownfield expansion.
• The company repurchased 241,924 shares for $133.9 million during the quarter and, on August 12, 2026, its Board authorized a new share repurchase program of up to $1.0 billion, of which $985.0 million remained available at September 30, 2026.
• On November 20, 2025 the company entered a $500.0 million unsecured revolving Credit Facility maturing November 20, 2030, and reported total liquidity of $658.6 million at September 30, 2026.

Why it mattersCarpenter's results show rising aerospace and defense demand driven by increasing engine, fastener and structural build rates, a key supply channel for aircraft and space hardware. The $1.0 billion buyback and higher capital spending set capital allocation for fiscal 2027.