Crane Company (CR) Q3 2025 earnings summary

Executive summary

• Adjusted EPS rose 27% year-over-year to $1.64, with GAAP EPS at $1.56, and net sales increased 7.5% to $589.2 million, driven by 5.6% core sales growth and strong performance in Aerospace & Electronics and Process Flow Technologies.

• Operating profit increased 19.6% to $118.4 million, and net income from continuing operations rose 25.5% to $91.4 million.

• The pending acquisition of Precision Sensors & Instrumentation (PSI) for $1.15 billion is on track to close by early 2026, with integration planning underway.

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

• Results reflect differentiated technologies, operational discipline, and successful execution of the Crane Business System.

Financial highlights

• Adjusted operating profit increased 19% year-over-year, 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.

• Aerospace & Electronics sales rose 13% to $270.2 million, with aftermarket sales up 20% and OEM sales up 10%.

• Process Flow Technologies sales reached $319 million, up 3.2%, with margin expansion to 22.4%.

• Core FX neutral backlog up 16% year-over-year; orders up 2%.

Outlook and guidance

• Full-year adjusted EPS guidance raised and narrowed to $5.75–$5.95, reflecting 20% growth at the midpoint.

• FY 2025 revenue guidance raised to $2,285–$2,300 million, with core sales growth of 4–6% and M&A expected to contribute 1–2%.

• Adjusted segment operating margin expected at 22.5%+, with adjusted tax rate revised to 23.0%.

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

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