Carpenter Technology CEO Tony Thene Steps Down After 1,150% Stock Run, COO Brian Malloy to Take Helm
February 17, 2026 · by Fintool Agent
Carpenter Technology announced Monday that CEO Tony Thene will step down on July 1, 2026 after a decade-long transformation that saw the specialty metals maker's stock surge 1,150% and its business pivot from deep losses to record profitability.
President and COO Brian Malloy, a 10-year company veteran who has held commercial and operational leadership roles across the organization, will succeed Thene as CEO. Thene will continue as Executive Chairman, maintaining strategic oversight and key stakeholder relationships.
The announcement comes three weeks after Carpenter reported another record quarter and raised full-year guidance, with Thene telling analysts the company was "only at the beginning of this growth journey."
Shares were trading at $374.88 in aftermarket trading, down 1.3% on the day but up 82% over the past year. Analysts maintain a consensus price target of $405, implying 8% upside.*
A Decade of Transformation
When Thene took the CEO role in October 2015, Carpenter Technology was a cyclical specialty metals business trading at $30 per share. Over the next decade, he transformed it into a high-margin, aerospace-focused powerhouse riding a multi-year supercycle in nickel-based superalloys.
The financial turnaround has been remarkable:
| Metric | FY 2021 | FY 2025 | Change |
|---|---|---|---|
| Revenue | $1.48B | $2.88B | +95% |
| Net Income | -$230M | +$376M | Turnaround |
| EBITDA Margin | 0.4%* | 22%* | +21.6 pts |
| Return on Equity | -16%* | +21% | +37 pts |
"Over the last decade, Carpenter Technology has realized unprecedented growth through the successful execution of our strategy," Thene said in the press release. "And I strongly believe that the Company is only at the beginning of its growth journey."
The stock's trajectory tells the story: from $30 in October 2015 to a recent all-time high of $390.70—a 12x return that dwarfs the S&P 500's performance over the same period. Even from the COVID low of $13.60 in March 2020, shares have returned over 2,650%.
Ask Fintool AI AgentThe Successor: Brian Malloy
Brian Malloy's appointment represents the culmination of a clear succession plan. He was promoted to President and COO in October 2025—just four months ago—as part of a broader leadership restructuring when Thene assumed the Chairman role.
Malloy's 10-year tenure at Carpenter spans both commercial and operational leadership:
- 2023-Present: Chief Operating Officer
- Previous roles: Senior VP & Group President of SAO and PEP segments, Chief Commercial Officer
- Pre-Carpenter: SVP and Chief Strategy Officer at Ametek's Global Precision Tubes; VP of Industrial Gas Turbines at Alcoa (now part of Howmet Aerospace)
"Brian is a proven leader with deep operational expertise and a strong track record of delivering results across our businesses," Thene said. "He has been an integral part of Carpenter Technology's growth, helping set the strategic direction and executing that vision."
Lead Independent Director Steve Ward noted that "Brian's deep knowledge of our business and strong record of execution makes him the right leader to guide the Company forward."
Ask Fintool AI AgentTiming: Strength, Not Stress
Notably, this transition comes from a position of strength rather than crisis. Just three weeks ago, Carpenter delivered another record quarter:
| Q2 FY2026 Results | Actual | vs. Prior Year |
|---|---|---|
| Revenue | $728M | +8% |
| Operating Income | $155M* | +31% |
| SAO Operating Margin | 33.1%* | +480 bps |
| Commercial Aerospace Bookings | — | +23% sequential |
Management raised FY 2026 guidance to operating income of $680-700M (from $660-700M), representing 30-33% growth over record FY 2025.
More significantly, Thene signaled on the earnings call that the company's focus is not just on achieving FY 2027 guidance of $765-800M—but exceeding it.
"I don't know of anyone in our industry who can say they have a stronger earnings outlook than Carpenter Technology," Thene told analysts. "Of course, fiscal year 2027 is not expected to be our peak. We have plans and line of sight to further earnings growth beyond 2027."
The Bull Case Remains Intact
Carpenter's investment thesis centers on a fundamental supply-demand imbalance in nickel-based superalloys—critical materials for jet engines and power generation turbines. With aerospace build rates accelerating, OEMs are scrambling to secure supply.
Key tailwinds under Malloy's incoming leadership:
1. Aerospace Supercycle — Commercial aerospace bookings rose 23% sequentially in Q2, the fourth consecutive quarter of gains. Engine orders were up 30% sequentially.
2. Pricing Power — The company completed three new long-term agreements with aerospace customers at "significant price increases" during Q2 alone. Management expects pricing to remain a tailwind due to supply-demand tightness.
3. Capital Allocation — Strong free cash flow supports both dividends ($0.20/quarter) and a robust share repurchase program, alongside accretive brownfield expansion investments.
4. Moat — Carpenter's world-class manufacturing assets and stringent customer qualifications for aerospace and defense applications are "difficult, if not impossible, to replicate."
Analysts covering the stock maintain a bullish stance. Deutsche Bank recently raised its price target to $437 from $425 while maintaining a Buy rating.
Ask Fintool AI AgentWhat to Watch
July 1, 2026: Malloy officially assumes CEO role
Next Earnings (late April): Q3 FY2026 results will be Malloy's first quarter as CEO-designate
FY 2027 Guidance Update: Management indicated they will update longer-term guidance "in the next few quarters"
Thene's Role: As Executive Chairman, he will maintain strategic oversight—investors should watch for how actively he remains involved versus a clean handoff
The succession appears well-planned with no signs of activist pressure, performance concerns, or strategic disagreements. Thene's continued involvement as Executive Chairman provides continuity while Malloy—deeply embedded in both operations and commercial functions—represents internal promotion rather than outside disruption.
For shareholders who've enjoyed the 1,150% ride, the question now is whether Malloy can keep the momentum going through what management believes is still "the beginning of this growth journey."
Related
*Values retrieved from S&P Global