Carpenter Technology Corporation (NYSE:CRS) and the 3D Printing Boom
This article examines Carpenter Technology Corporation (NYSE:CRS) within the context of the burgeoning 3D printing industry. We previously explored a list of the “10 Best 3D Printing Stocks To Buy Right Now,” and this piece dives deeper into CRS’s standing among its competitors.
The Rise of Additive Manufacturing
3D printing, also known as additive manufacturing, has revolutionized how we create three-dimensional objects. Using computer-aided design (CAD) technology, this process builds objects layer by layer from materials like metal, plastic, concrete, and paper. Unlike traditional manufacturing, 3D printing offers unprecedented design freedom and is rapidly expanding due to its versatile applications in commercial manufacturing and large-scale projects.
According to Proto Labs’ 2024 3D Printing Trend Report, the 3D printing market reached an average value of $22.14 billion in 2023, a significant 26.8% increase from $17.46 billion in 2022. This growth surpassed Proto Labs’ initial forecast of $19.9 billion for 2023, with a 17% compound annual growth rate (CAGR). Furthermore, the report projects that the market will continue its upward trajectory, with a 21% CAGR, reaching $24.8 billion by the end of 2024 and an impressive $57.1 billion by 2028. This rapid expansion is corroborated by insights from Proto Labs Network’s annual survey, where approximately 70% of the 700+ respondents reported increased component printing in 2023 compared to 2022.
The Impact of AI on 3D Printing
Artificial intelligence (AI) promises to further accelerate the 3D printing revolution. AI can identify construction flaws, create intricate designs, and optimize the properties of materials. Adam Hecht, Head of Additive Manufacturing at DIVE, believes that AI will be particularly beneficial for improving hardware devices, enabling more efficient self-diagnosis and material adjustments.
3D Printing in Healthcare
3D printing’s applications span numerous industries, but it has proven especially impactful in healthcare, offering precision in prosthetics and rapid prototyping for medical devices. Traditionally, bringing new medical equipment to market has been a lengthy process, but 3D printing accelerates development, allowing for quicker prototype creation and design iterations. The healthcare 3D printing market was valued at $8.52 billion in 2023 and is expected to grow at a CAGR of 18.5% between 2024 and 2030, according to Grand View Research.
Carpenter Technology Corporation
Number of Hedge Fund Holders: 55
Carpenter Technology Corporation (NYSE:CRS) is a key player that develops, produces, and sells a range of alloys, including stainless steel, corrosion-resistant nickel, copper, and titanium alloys, along with powered alloys for 3D additive printing. These materials are crucial for the aerospace, defense, and medical sectors.
CRS demonstrated strong financial performance in the second quarter of fiscal year 2025, with a record operating income of $118.9 million, a 70% year-over-year increase. The company also reported earnings of $1.66 per diluted share and an operational cash flow of $67.9 million. The Specialty Alloys Operations segment performed exceptionally well, generating $135.6 million in operating income and an adjusted operating margin of 28.3%, up from 20% the previous year.
TD Cowen analysts recently increased their price target for Carpenter Technology (NYSE:CRS) shares to $220 from $200, maintaining a Buy rating. The analysts cited the company’s robust performance and extensive backlog, which positions it to withstand any potential demand reductions from Boeing’s original equipment manufacturer (OEM). The analysts also expect that Carpenter Technology’s advantages from price and operational leverage will result in higher EBIT increases compared to its competitors.
Overall, CRS ranks highly among top 3D printing stock options. The company is well-positioned to capitalize on the growth in this dynamic sector.
