Crane Company (CR) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached $724.7 million, up 25.6% year-over-year, with adjusted operating profit up 37.3% to $154.3 million and adjusted EPS up 18% to $1.79; GAAP EPS was $1.63, up 19%.

• Both Aerospace & Advanced Technologies and Process Flow Technologies segments delivered double-digit sales growth and margin expansion, with major acquisitions (Druck, Panametrics, Reuter-Stokes, Optek) outperforming expectations.

• Backlog reached a record $1.3 billion, up 11% year-over-year, with company-wide backlog at $1,887.3 million as of June 30, 2026, supporting strong visibility for the second half and into 2027.

• Recent acquisitions contributed significantly to earnings and synergy realization, now expected to add $0.20 per share to full-year earnings.

• Recognized $18.7 million in tariff refunds, reducing cost of sales.

Financial highlights

• Adjusted EBITDA rose 35.8% year-over-year to $165.6 million, with adjusted EBITDA margin at 22.9%.

• Operating margin improved by 180 bps to 21.3% on an adjusted basis; Q2 operating profit was $144.3 million (+40.2% YoY).

• Free cash flow for Q2 was $107.7 million; adjusted free cash flow reached $116.3 million.

• Net debt to EBITDA leverage stood at 1.2x, with $90 million of debt repaid after quarter-end.

• Dividend per share: $0.255 for Q2; cash balance at quarter-end was $350.4 million.

Outlook and guidance

• Full-year adjusted EPS guidance raised to $6.85–$7.05 per share, with total sales expected to grow in the mid-20% range and core sales growth at the high end of 4–6%.

• FY 2026 revenue guidance raised to $2.87–$2.90 billion; free cash flow conversion expected at 90–100%.

• Aerospace & Advanced Technologies expected to deliver full-year core sales growth above the high end of the 7%–9% range.

• Process Flow Technologies expected to turn positive on year-over-year growth in the second half, with full-year core growth flat to low single digits.

• Q3 expected to be similar to Q2, with Q4 modestly lower due to seasonality.