Crane Company (CR) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with adjusted EPS up 24% year-over-year, driven by strong operational performance, margin expansion, and strategic acquisitions in advanced technologies and process flow.

• Closed acquisitions of Druck, Panametrics, Reuter-Stokes, and Optek-Danulat, expanding capabilities in nuclear, process control, and instrumentation.

• Announced leadership transition: Alex Alcala to become CEO in April 2026, with Max Mitchell moving to Executive Chairman.

• Raised annual dividend by 11% for 2026 and declared a first quarter dividend of $0.255 per share.

• Backlog growth in Aerospace & Advanced Technologies, while Process Flow Technologies saw a modest sales increase but a decline in backlog.

Financial highlights

• Q4 2025 sales rose 6.8% year-over-year to $581.0M, with 5.4% core sales growth; adjusted operating profit up 15.9% to $111.7M; adjusted EPS up 21.4% to $1.53.

• Full-year 2025 sales increased 8.2% to $2,305.0M; adjusted operating profit up 16.8% to $447.2M; adjusted EPS up 24% to $6.05.

• Adjusted EBITDA for 2025 was $495.7M, up 16.2% year-over-year.

• Adjusted free cash flow for 2025 was $362.5M, with 102% adjusted free cash conversion.

• Net leverage ended 2025 at 1.1x, rising to 1.4x after acquisitions.

Outlook and guidance

• 2026 adjusted EPS guidance of $6.55–$6.75, representing 10% growth at midpoint, excluding non-recurring items.

• 2026 revenue guidance: $2,845–$2,875M, with core sales growth of 4–6% and FX tailwind of ~1%.

• Acquisitions expected to be slightly accretive to 2026 earnings, with upside from synergies and deleveraging in 2027 and beyond.

• Aerospace & Advanced Technologies core sales growth expected at high end of 7%-9% long-term range, with 35%-40% leverage.

• Process Flow Technologies core growth expected to be flat to low single digits in 2026, with 30%-35% leverage.