Crane Company (CR) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales rose 12% year-over-year to $544 million, with adjusted EPS up 58% to $1.26, driven by 8% core sales growth and contributions from acquisitions.

• Full-year 2024 adjusted EPS grew 28% to $4.88; sales up 14% to $2.13B, with 8% core growth and 6% from acquisitions.

• Completed divestiture of Engineered Materials segment, focusing on two strategic growth platforms and treating it as discontinued operations for 2024.

• Announced 12% increase in annual dividend to $0.92 per share and promoted Alex Alcala to COO.

• Acquisitions of Vian, CryoWorks, and Technifab strengthened the portfolio and contributed to sales and backlog growth.

Financial highlights

• Q4 adjusted EPS was $1.26 (up from $0.80 in Q4 2023); full-year adjusted EPS reached $4.88, up 28% year-over-year.

• Q4 adjusted operating profit was $96M, up 38% year-over-year; full-year adjusted operating profit was $383M, up 29%.

• Q4 adjusted EBITDA was $108M (19.8% margin); full-year adjusted EBITDA was $426.7M (20.0% margin).

• Q4 adjusted free cash flow was $193M; full-year adjusted free cash flow was $234M, exceeding the prior year's $165M.

• Year-end cash balance was $307M, total debt $247M, and liquidity at $1.1B including $800M undrawn revolver.

Outlook and guidance

• Initial 2025 adjusted EPS guidance set at $5.30–$5.60, reflecting 12% growth at the midpoint.

• FY2025 revenue guidance is $2,230–$2,270 million, with adjusted segment operating margin of 22.5%+.

• Core sales growth expected at 4–6% for 2025, with Aerospace & Electronics in high single digits and Process Flow Technologies in low-to-mid single digits.

• Free cash flow conversion targeted at 90–100% for 2025 as supply chain improves.

• Dividend increased by 12%, with Q1 2025 dividend set at $0.23 per share.