Crane Company (CR) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales increased 7.5% year-over-year to $589.2 million, with adjusted EPS up 27.1% to $1.64 and operating profit rising 19.6% to $118.4 million, driven by 5.6% core sales growth and strong Aerospace & Electronics and Process Flow Technologies performance.

• For the first nine months of 2025, net sales rose 8.6% to $1,724.0 million, and net income from continuing operations grew 26.3% to $250.0 million.

• The company completed the divestiture of the Engineered Materials segment for $208 million, recognizing a pre-tax gain of $43.5 million in discontinued operations.

• A definitive agreement was signed to acquire Precision Sensors & Instrumentation (PSI) for $1.15 billion, expected to close by early 2026, with integration planning underway.

• Robust M&A pipeline, strong balance sheet, and net cash position support continued growth and innovation.

Financial highlights

• Adjusted operating profit rose 18.8% to $122.1 million, with adjusted EBITDA up 17.8% to $133.9 million and adjusted operating margin improving by 200 bps to 20.7%.

• Free cash flow for Q3 was $116.8 million, with adjusted free cash flow at $118.9 million; nine-month adjusted free cash flow totaled $154.0 million.

• Net income from continuing operations was $91.4 million, up 25.5% year-over-year.

• Gross margin improved to 42.7% in Q3 2025 from 41.4% in Q3 2024.

• Dividend per share for Q3 2025 was $0.23, up from $0.205 in Q3 2024.

Outlook and guidance

• Full-year adjusted EPS guidance raised and narrowed to $5.75–$5.95, reflecting 20% growth at the midpoint; total sales growth for 2025 expected at 7–8%, with core sales growth at the high end of the 4–6% range.

• Free cash flow conversion targeted at 90–100%, with adjusted segment operating margin at 22.5%+.

• M&A expected to contribute 1–2% to revenue growth.

• Aerospace & Electronics expected to be at the high end of its long-term 7–9% organic growth range next year.

• Adjusted tax rate revised down to 23.0%.