Crane Company (CR) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales rose 9.3% to $557.6 million, with adjusted EPS up 24% to $1.39 and GAAP EPS up 31% to $1.34, driven by 7.5% core sales growth and 2.5% from acquisitions.

• Core orders increased 15.6% and backlog grew 12.1%, led by Aerospace & Electronics, which saw sales up 10.2% to $248.9 million and a record $960.1 million backlog.

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

• Completed sale of Engineered Materials segment for $208 million, resulting in a $35.7 million pre-tax gain and supporting cash flow.

• Strong balance sheet with over $1.5 billion in M&A capacity, $1,235 million liquidity, and robust acquisition pipeline.

Financial highlights

• Adjusted operating profit increased 17.6% to $104.1 million; operating profit up 24.4% to $101.1 million.

• Adjusted operating margin improved to 18.7% from 17.3% year-over-year; adjusted EBITDA margin rose to 20.8%.

• Net income from continuing operations was $78.3 million, up 33.2% year-over-year.

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

• Dividend per share was $0.23, up from $0.205 in the prior year.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance reaffirmed at $5.30–$5.60, with sales growth expected at 5% and core sales growth of 4–6%.

• Adjusted segment operating profit guidance is $500–$515 million, with margin targeted at 22.5%+.

• Aerospace & Electronics sales projected to grow in high single digits; Process Flow Technologies sales expected to rise 4–5%.

• M&A expected to contribute 1–2% to growth; FX headwind of 1% anticipated.

• Guidance assumes current tariffs and economic conditions persist, with flexibility to absorb modest demand or trade deterioration.