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 24.2% to $1.49 and strong performance in Aerospace & Electronics and Process Flow Technologies.

• Announced acquisition of Precision Sensors & Instrumentation (PSI) for $1.06–$1.15 billion, expected to close by January 2026, adding Druck, Panametrics, and Rotork Stork brands.

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

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

• Managed hurricane-related expenses with $5.8 million in damages largely offset by insurance recoveries.

Financial highlights

• Adjusted operating profit for Q2 2025 was $109.3 million, up 14.7% year-over-year; adjusted EBITDA grew 16.4% to $121.9 million.

• Adjusted operating margin improved to 18.9% (up 90bps); adjusted EBITDA margin was 21.1%.

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

• Cash balance at June 30, 2025 was $332.2 million; total debt was $47.2 million.

• Backlog at June 30, 2025 was $1,455.9 million, with 55% expected to convert to revenue in 2025.

Outlook and guidance

• Full-year adjusted EPS guidance raised to $5.50–$5.80; revenue guidance at $2,250–$2,290 million.

• Core sales growth projected at 4–6%, with FX and M&A providing additional benefit.

• Aerospace & Electronics sales expected to rise high single- to low double-digits; Process Flow Technologies sales to grow low single-digits.

• Free cash flow conversion expected at 90–100%.

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