Crane Company (CR) Gabelli Funds 35th Annual Pump, Valve & Water Symposium summary

Strategic overview and business performance

• Focused on evolving the portfolio toward higher growth, higher margin businesses, now streamlined into Aerospace & Electronics and Process Flow Technologies.

• Achieved 15% sales growth and 29% increase in adjusted operating profit in 2024, with both segments contributing strongly.

• Aerospace & Electronics expects 7%-9% sales CAGR through the decade; Process Flow Technologies targets 3%-5% long-term growth.

• Operating profit growth is projected at about twice the rate of core sales growth, driven by disciplined execution and the Crane Business System.

• Net cash position with $1B acquisition capacity today, growing to $4B by 2028, aiming to double business size in five years through organic growth and M&A.

Process Flow Technologies (PFT) focus and market positioning

• PFT specializes in valves and related products for chemical, pharmaceutical, water, and industrial markets, with a $1.2B business and 21% margins.

• Shifted away from oil & gas and conventional power, now with nearly two-thirds of business in higher growth markets like chemicals, water, and pharma.

• Growth initiatives include innovation, new product introductions, channel management, and strategic pricing, driving both growth and margin expansion.

• New product vitality has tripled in recent years, with a target of 20% of sales from products launched in the last three years.

• Margin expansion driven by higher growth markets, new products, and operational improvements; segment margins have nearly doubled since 2017.

Capital deployment and M&A strategy

• Strong M&A track record with four successful acquisitions since 2023; healthy pipeline for future deals.

• Capital deployment focused on high-return, accretive acquisitions to strengthen growth and margin profile.

• Management remains open to future portfolio moves, guided by shareholder value creation.