Crane Company (CR) Q1 2026 earnings summary

Executive summary

• First quarter 2026 sales rose 24.9% year-over-year to $696.4M, driven by 3.8% core sales growth and an 18.3% contribution from recent acquisitions, with strong execution across segments, especially Aerospace & Advanced Technologies and Process Flow Technologies.

• Adjusted EPS from continuing operations reached a record $1.65, up 15% year-over-year, while GAAP EPS declined 15% to $1.14 due to acquisition-related costs and amortization.

• Recent acquisitions (Druck, Panametrics, Reuter-Stokes, optek-Danulat) outperformed, with integration ahead of plan and early benefits realized, significantly contributing to growth and backlog expansion.

• Management remains focused on disciplined execution, agility, and leveraging the Crane Business System (CBS) to drive performance in a dynamic environment.

• Net leverage stands at 1.4x post-acquisitions, with strong liquidity and M&A capacity exceeding $1.5B.

Financial highlights

• Adjusted operating profit rose 28.7% year-over-year to $137.8M, while GAAP operating profit declined 1% to $100.1M due to acquisition-related costs.

• Adjusted EBITDA increased 29.4% to $150.0M, with an adjusted EBITDA margin of 21.5%.

• Adjusted operating margin improved by 60 bps to 19.8%; GAAP margin declined to 14.4%.

• Adjusted segment margin for Aerospace & Advanced Technologies was 24.6% (down from 26.2% due to Druck acquisition), while Process Flow Technologies margin improved by 50 basis points to 22.1%.

• Adjusted free cash flow for Q1 was $(23.5)M, reflecting transaction-related adjustments.

Outlook and guidance

• Full-year adjusted EPS guidance raised to $6.65–$6.85, up from $6.55–$6.75, representing about 12% growth at the midpoint versus 2025.

• FY 2026 revenue expected between $2.845B and $2.875B, with core sales growth of 4–6%.

• Total sales growth expected in the low- to mid-20% range, driven by acquisitions and mid-single digit core sales growth.

• Margin and earnings contribution from acquisitions now expected to be more evenly distributed throughout the year, with full-year EPS accretion from acquisitions at least double prior guidance ($0.15 vs. $0.08).

• Guidance assumes elevated energy prices, inflation, and a potential decline in commercial aftermarket.