Crane Raises Outlook as Core Growth Accelerates
Second-quarter sales reached $724.7 million as growth accelerated to 25.6%.
Crane Co. (CR), the industrial manufacturer, posted record adjusted earnings of $1.79 a share as stronger core growth and wider margins lifted second-quarter results. Adjusted earnings rose 18% from a year earlier and 8.5% from the first quarter.
The quarter extended Crane’s acquisition-driven expansion while showing firmer underlying demand. Core sales growth accelerated to 5.2% from 3.8% in the first quarter, and total sales increased 4.1% sequentially after year-over-year growth had already accelerated sharply from 6.8% in the fourth quarter of 2024. Acquisitions contributed 19.8 percentage points to second-quarter growth, while foreign exchange added 0.6 point.
Revenue rose 25.6% from a year earlier, compared with 24.9% growth in the first quarter. GAAP earnings from continuing operations increased 19% to $1.63 a share, rebounding from $1.14 in the preceding quarter.
Operating profit climbed 40.2% to $144.3 million, reversing the first quarter’s 1% decline. Adjusted operating margin widened 180 basis points to a record 21.3%, compared with 19.8% in the first quarter, as the pace of margin expansion accelerated.
Aerospace & Advanced Technologies led the underlying growth, with sales rising 31.3% to $339.1 million and core sales increasing 13.3%. Its adjusted operating margin narrowed 80 basis points to 25.8% as dilution from the Druck acquisition outweighed favorable pricing and higher volume.
Process Flow Technologies sales increased 20.9% to $385.6 million, though core sales declined 1.4%. Acquisitions supplied 21.5 percentage points of growth, while productivity helped the segment’s adjusted operating margin expand 80 basis points to 22.2% despite lower volumes and acquisition dilution.
Crane raised its full-year adjusted earnings forecast to $6.85 to $7.05 a share, increasing both ends by 20 cents after a 10-cent increase in the first quarter. The company now expects sales growth in the mid-20% range, core growth of 5% to 6% and adjusted segment margin above 23%.
Free cash flow swung to $107.7 million from negative $40.2 million in the first quarter, while total debt declined by $100 million during the quarter to $1.098 billion. Crane repaid another $90 million after quarter-end. The quarter’s GAAP operating profit included $18.7 million of tariff refunds; adjusted operating profit and adjusted earnings excluded the benefit, reducing adjusted earnings by 33 cents in the reconciliation.