Carpenter Technology aerospace growth set to accelerate through FY2026

Carpenter Technology

Aerospace-led mix lifts earnings and margins

Carpenter Technology aerospace growth will drive a stronger FY2026. The company guides earnings to $660mn–$700mn, up 26–33pc. Management cites robust demand from aerospace and defense, medical, and power generation. However, it notes softer trends in industrial and consumer markets. Carpenter Technology aerospace growth already reshaped revenue mix toward higher-value alloys.

Order trends and product mix underpin outlook

Carpenter Technology aerospace growth reflects a 20pc rise in FY2025 A&D sales to $1.4bn. Quarterly A&D sales also rose 2pc to $383.8mn. The A&D market now contributes over 60pc of company revenue. Meanwhile, pounds sold in SAO declined 11pc to 186.3mn lbs. Lower volumes still supported higher margins through favorable mix and pricing discipline.

Cash generation strengthens despite volume headwinds

Profitability improved sharply on premium content. Full-year profit reached a record $376mn, nearly double last year. Energy sector sales also increased year over year. However, SAO quarterly pounds dropped 18pc to 46.9mn lbs. The company offsets volume pressure with price, mix, and operational efficiency. Therefore, management remains confident in FY2026 guidance.

The Metalnomist Commentary

Carpenter’s pivot toward high-spec aerospace and defense alloys continues to pay off. Mix, not tons, drives this cycle as airframe and engine content rises. Watch lead times, melt capacity, and forging bottlenecks, which could further support pricing into FY2026.