### At a Glance

Carpenter FY26Q4 beat expectations, with operating income setting another record, driven primarily by continued SAO margin expansion and accelerating aerospace & defense demand.

Q4 operating income of $206.9M, up +37% YoY; full year $702M, up +34% YoY; SAO operating margin of 37.8%, a record.

Aerospace & defense revenue rose +17% YoY, with OEM production ramps driving order acceleration and broad-based strength across engines, fasteners, and structural components; medical improved sequentially, while semiconductor-led industrial & consumer revenue rose +22% YoY. The Brownfield expansion remains on schedule to begin production in early FY28.

FY27Q1 guidance calls for operating income of $195–200M; full-year $850–880M (+21–25% YoY); FY29 target of $1.2–1.3B. Management explicitly characterized the guidance as a "floor," leaving room for upside.

Positive signals are evident: management repeatedly stressed that demand will accelerate and that FY29 does not represent peak earnings; the potential risk is the management transition following the CEO's sudden passing, though the company indicated there is no external search and that leadership is committed long-term.