Crane Company (CR) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales rose 14% year-over-year to $581 million, with adjusted EPS up 18% to $1.30 and operating profit up 53%, driven by strong core growth and recent acquisitions in Aerospace & Electronics and Process Flow Technologies.

• Net income from continuing operations was $71.6 million, up 65.4% from Q2 2023.

• Raised full-year adjusted EPS guidance midpoint by $0.15 to $4.95–$5.15, reflecting 18% growth at the midpoint.

• Three acquisitions completed in the last year, including Vian Enterprises and CryoWorks, supporting segment expansion and margin growth.

• Strong order growth and backlog, with core orders up 7% and backlog up 10% year-over-year, supporting continued momentum.

Financial highlights

• Adjusted operating profit increased 22% year-over-year to $103 million; operating margin improved to 16.6% and adjusted margin to 17.7%.

• Adjusted EBITDA for Q2 was $113 million, up 20% year-over-year; adjusted EBITDA margin at 20.5%.

• Free cash flow for Q2 was $55–$57 million; full-year free cash flow expected at $255–$275 million with >90% conversion.

• Total debt at quarter-end was $377 million, with $229 million cash on hand and over $1 billion in M&A capacity.

• Net income margin for Q2 was 12.3%, up from 8.5% year-over-year.

Outlook and guidance

• 2024 full-year adjusted EPS guidance raised to $4.95–$5.15, reflecting 18% growth at midpoint.

• Total sales growth expected at ~11%, with 5–7% core sales growth and 5% from acquisitions.

• Adjusted segment operating profit expected to grow ~18%, about three times core sales growth.

• Adjusted segment operating margin forecasted at ~20.7%.

• Corporate expense guidance raised to $80 million, offset by lower non-operating expense and a slightly lower tax rate.