Crane Company (CR) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales increased 9.2% year-over-year to $577.2 million, with adjusted EPS up 24% to $1.49 and strong performance in both Aerospace & Electronics and Process Flow Technologies segments.

• Core sales grew 6.5%, core orders rose 19.6%, and core backlog increased 18.2%, led by Aerospace & Electronics.

• Announced acquisition of Precision Sensors & Instrumentation (PSI), with reported values ranging from $390M to $1.15B, expected to close between January 2026 and early 2026.

• Completed divestiture of Engineered Materials segment for $208 million, recognizing a pre-tax gain of $43.5 million.

• Raised full-year adjusted EPS guidance to $5.50–$5.80, reflecting confidence in execution and backlog.

Financial highlights

• Adjusted operating profit for Q2 2025 was $109.3 million, up 14.7% year-over-year; adjusted operating margin improved to 18.9%.

• Adjusted EBITDA for Q2 2025 was $121.9 million, up 16.4% year-over-year; adjusted EBITDA margin was 21.1%.

• Free cash flow for Q2 was $88.9 million, with adjusted free cash flow at $93.3 million.

• Aerospace & Electronics Q2 sales reached $258.2 million (+11.8% YoY), with backlog up 29.2% to $1,052.8 million; Process Flow Technologies Q2 sales were $319.0 million (+7.2% YoY), backlog up 0.8% to $403.1 million.

• Cash balance at June 30, 2025 was $332.2 million; net cash position post Q2, with $1,085M liquidity and no debt after recent repayment.

Outlook and guidance

• Full-year adjusted EPS guidance raised to $5.50–$5.80, with total sales growth expected at approximately 6.5% and core sales growth of 4–6%.

• FY 2025 revenue guidance raised to $2,250–$2,290 million; free cash flow conversion expected at 90–100%.

• Aerospace & Electronics core sales growth projected high single- to low double-digits for 2025; Process Flow Technologies core growth anticipated at low single digits.

• Adjusted segment operating margin expected at 22.5%+; adjusted tax rate at 23.5%.