Crane Company (CR) Q1 2025 earnings summary

Executive summary

• Q1 2025 adjusted EPS from continuing operations rose 24% to $1.39, with net sales up 9.3% to $557.6 million, driven by 7.5% core sales growth and 2.5% from acquisitions, and strong performance in aerospace, electronics, and process flow technologies.

• Operating profit increased 24.4% to $101.1 million, with adjusted EBITDA up 15.4% to $115.9 million and net income from continuing operations up 33.2% to $78.3 million.

• The sale of the Engineered Materials segment was completed for $208 million, resulting in a $35.7 million pre-tax gain recorded in discontinued operations.

• Management reaffirmed full-year 2025 adjusted EPS guidance of $5.30–$5.60 despite macroeconomic uncertainty and tariff impacts.

• Strong balance sheet with over $1.5 billion in M&A capacity, robust liquidity, and active acquisition pipeline.

Financial highlights

• Core sales grew 7.5% year-over-year; adjusted operating profit increased 18%, and adjusted operating margin improved to 18.7% from 17.3%.

• Aerospace & Electronics sales reached $248.9 million, up 10.2% organically; record backlog of $960.1 million, up 21.3% year-over-year.

• Process Flow Technologies sales were $308.7 million, up 8.6%, with 5% core growth and 5% from acquisitions; backlog stable at $389.9 million.

• Adjusted EBITDA margin was 20.8%, up from 19.7% a year ago.

• Cash and cash equivalents increased to $435.1 million; free cash flow was negative $58.2 million, reflecting typical seasonality.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance reaffirmed at $5.30–$5.60, with revenue guidance of $2,230–$2,270 million and core sales growth projected at 4–6%.

• Aerospace & Electronics sales expected to grow in the high single digits, with 35%-40% operating leverage.

• Process Flow Technologies anticipates 4–5% sales growth and margin improvement driven by productivity and pricing.

• Free cash flow conversion targeted at 90–100%; FX headwind of ~1% anticipated.

• Guidance incorporates potential project delays in chemicals and regional demand shifts.