We expect Pennsylvania-based specialty-alloy based materials manufacturer Carpenter Technology Corp. to generate potential record earnings and margins over the next 24 months on sustained higher pricing and solid demand from aerospace and defense customers, which account for at least 60% of revenues. Last-12-month leverage strengthened below 1x as of March 31, 2026 and we expect it to remain so over the next 24 months, supported by higher earnings and free operating cash flow (FOCF) and stable debt level. Therefore, we revised our outlook on Carpenter to positive from stable and affirmed our 'BB+' issuer credit and issue-level ratings. Our recovery rating on its unsecured debt remains '3'. The positive outlook reflects our expectation that Carpenter could sustain improved margin and
