Crane Company (CR) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales rose 13% year-over-year to $597 million, with adjusted EPS up 34% to $1.38 and GAAP EPS up 39% to $1.33, driven by 6% core sales growth and strong Aerospace & Electronics and Process Flow Technologies performance.

• Core orders increased 6% and backlog grew 10% year-over-year, led by Aerospace & Electronics.

• Major acquisitions included Vian Enterprises and CryoWorks, supporting growth in aerospace, defense, and cryogenics.

• Operations were impacted by Hurricane Helene and a typhoon, but insurance is expected to cover business interruption and recovery is underway.

• Full-year adjusted EPS guidance raised to $5.05–$5.20, reflecting improved outlook and strong execution.

Financial highlights

• Adjusted operating profit increased 35% year-over-year to $109M, with operating profit up 38% to $105M.

• Adjusted EBITDA grew 35% to $121M, with margin up to 20.3%.

• Q3 free cash flow was $75M; full-year free cash flow expected at the lower end of $255M–$275M due to working capital and insurance timing.

• Cash at quarter-end was $258M; total debt $332M.

• Q3 2024 operating margin was 17.6% (up 320bps); adjusted margin 18.3% (up 310bps).

Outlook and guidance

• Full-year core sales growth expected at 5%–7%, with total sales growth at ~11% and 5% benefit from acquisitions.

• Segment operating profit projected to grow 19% year-over-year; adjusted segment operating margin expected at ~20.8%.

• Free cash flow conversion expected at the low end of $255M–$275M due to working capital and hurricane impacts.

• Engineered Materials sales anticipated to decline mid-single digits, with lower operating profit and margin.

• Adjusted tax rate revised to 22.5%.