Carpenter Technology vs ESAB
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KIRA’s take AI analyst
I put Carpenter Technology and ESAB side by side, using each one’s latest annual report. Here is what stands out:
- Carpenter Technology is the larger business, with $3.1B of revenue in fiscal 2026 against $2.8B for ESAB.
- Carpenter Technology grew revenue faster (8.6%, against 3.7%).
- Carpenter Technology kept more of each dollar of sales as operating profit (22.5% operating margin, against 14.5%).
- Carpenter Technology turned more of its sales into free cash flow (11.6% FCF margin, against 7.5%).
- Carpenter Technology earned a higher return on the capital invested in it (23.7%, against 11.0%).
- Investors pay more for each dollar of Carpenter Technology’s earnings: a P/E of 25.1x against 24.1x for ESAB.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Carpenter Technology
CRS
10/11
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change
ESAB
ESAB
1/11
Gross margin
Side by side
Best in the row
| Latest fiscal year | CRS FY26 | ESAB FY25 |
|---|---|---|
| Size | ||
| Market cap | $14.2B | $4.1B |
| Revenue | $3.1B | $2.8B |
| Free cash flow | $362M | $213M |
| Net income | $530M | $227M |
| Growth | ||
| Revenue growth | 8.6% | 3.7% |
| 5-year growth | 16.2% | 7.8% |
| Share count change | −0.6% | 0.3% |
| Profitability | ||
| Gross margin | 30.6% | 36.9% |
| Operating margin | 22.5% | 14.5% |
| Net margin | 17.0% | 8.0% |
| FCF margin | 11.6% | 7.5% |
| Return on capital | 23.7% | 11.0% |
| Return on equity | 25.8% | 11.5% |
| Balance sheet | ||
| Net debt | $297M | $1.0B |
| Net debt / EBITDA | 0.4x | 2.1x |
| Dividends and buybacks | $219M | $21.9M |
| Valuation & quality | ||
| P/E | 25.1x | 24.1x |
| Piotroski F-score | 9 | 4 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.