# Carpenter Technology targets operating income growth before planned expansion startup Its full-year and second-quarter outlooks imply higher second-half operating income, while the brownfield expansion is expected to come online in early fiscal 2028. Published 2026-10-26 by TGOs. Canonical: https://tgos.io/news/2026/10/26/carpenter-technology-targets-operating-income-growth-before-planned-expansion/ Carpenter Technology spent $77.7 million on capital expenditures in its fiscal 2027 first quarter, up 82% from a year earlier.[1] In results released October 22, 2026, Carpenter attributed higher spending to its brownfield expansion.[1] Carpenter maintained its fiscal 2027 operating income outlook of $850 million to $880 million.[1] Together with its second-quarter outlook, that implies higher average quarterly operating income in the second half than in the first, before the expansion's expected early-fiscal-2028 start.[1][2] Aerospace and defense sales reached $425.4 million, up 9.6% year over year, excluding raw material surcharges and sales through Carpenter's distribution businesses.[1][2] That combined market figure does not isolate defense sales and fell 5% from the preceding quarter.[1][2] Carpenter attributed Specialty Alloys Operations' year-over-year growth in sales excluding surcharges to higher aerospace and defense sales.[2] The segment posted a non-GAAP adjusted operating margin excluding surcharges of 37.7%, up from 32.0% a year earlier.[1] For the second quarter, Carpenter expects operating income of $192 million to $197 million.[1] That compares with first-quarter operating income of $196.4 million.[1] Its Specialty Alloys outlook anticipates further demand acceleration alongside holiday-related limits on available capacity uptime.[2] The company says the brownfield expansion remains on schedule and on budget.[2] ## Why it matters The outlooks imply second-half operating income averaging about $228 million to $246 million per quarter, above both the first-quarter result and the second-quarter outlook.[1] ## Sources 1. Carpenter Technology first-quarter fiscal 2027 results release, Exhibit 99.1, October 22, 2026 2. Carpenter Technology first-quarter fiscal 2027 earnings call presentation, Exhibit 99.1, October 22, 2026