New York, Feb 3, 2026, 14:47 EST — During the regular session
- Carpenter Technology shares jumped roughly 8% in afternoon trading, bouncing back from a volatile session earlier in the day
- Investors are digesting the specialty-alloys maker’s boosted full-year profit forecast alongside mixed signals from aerospace demand
- The next major milestone: fiscal third-quarter results and if margins can withstand rising capacity spending
Carpenter Technology’s stock climbed 7.8% to $335.75 in Tuesday afternoon trading, gaining $24.42 from the previous close. The shares fluctuated between $311.00 and $345.56, with roughly 1.2 million shares changing hands by mid-afternoon.
Carpenter Technology’s latest outlook has markets watching closely after it posted a record second-quarter operating income of $155.2 million and adjusted EPS of $2.33. The specialty alloys maker raised its fiscal 2026 operating income guidance to a range of $680 million to $700 million. For Q3, it expects operating income between $177 million and $182 million. CEO Tony Thene highlighted that aerospace and defense demand “continues to accelerate.” The company also noted rising sequential commercial aerospace bookings alongside new long-term aerospace customer contracts. (Carpenter Technology)
Why it matters now: Carpenter operates deep within jet-engine and defense supply chains, sectors where buyers have been scrambling to secure materials and prices. Traders want to see if the recent streak of margin improvements can persist, despite the company ramping up spending on capacity and pursuing long-term contracts.
A regulatory filing revealed the company submitted its quarterly results in a Form 8-K. (SEC)
Carpenter climbed Tuesday as other aerospace and specialty metals stocks also advanced—ATI gained roughly 5%, while Woodward surged over 13% in afternoon trading.
Investors keep a close eye on Carpenter’s “sales excluding surcharge” metric, which removes raw-material pass-through charges to better reflect underlying demand. Cash generation is another key area, particularly how much management allocates to buybacks compared to funding expansion.
But the setup carries risks, too. Any slip in aerospace production, hold-ups in defense contracts, or postponed customer orders could quickly dent the optimism. Execution challenges loom as well: cost overruns or delays in scaling capacity could weigh on margins.
The upcoming earnings report is the next major trigger. Investors will be watching to see if third-quarter profits hit management’s target range and if aerospace orders remain steady. According to Zacks’ earnings calendar, the release is set for April 23. (Zacks)
