In This Article:
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Adjusted EPS: $1.39, driven by 7.5% core sales growth.
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Core Orders Growth: Up 16% in the quarter.
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Full Year 2025 Adjusted EPS Outlook: Reaffirmed in the range of $5.30 to $5.60.
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Aerospace and Electronics Sales: $249 million, a 10% increase, all organic growth.
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Aerospace and Electronics Backlog: Record high of $960 million, up 21% year-over-year.
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Adjusted Segment Margin for Aerospace and Electronics: 26%, a record high, up 360 basis points from last year.
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Process Flow Technologies Sales: $309 million, up 9%, with 5% core sales growth.
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Adjusted Operating Margin for Process Flow Technologies: 20.9%, expanded by 10 basis points.
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Core Operating Leverage for Process Flow Technologies: 35%, at the high end of the targeted range.
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Corporate Expense: $25 million in the quarter, with an expectation of $80 million for the full year.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Crane Co (NYSE:CR) reported a strong start to 2025 with an adjusted EPS of $1.39, driven by a 7.5% core sales growth.
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Core orders increased by 16% in the quarter, primarily due to strong performance in the Aerospace and Electronics segment.
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The company reaffirmed its full-year 2025 adjusted EPS outlook in the range of $5.30 to $5.60, indicating confidence in its strategic direction.
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Crane Co (NYSE:CR) has a robust pipeline of potential acquisitions and a strong balance sheet with $1.5 billion in M&A capacity.
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The Aerospace and Electronics segment achieved a record backlog of $960 million, with a 21% year-over-year increase.
Negative Points
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Recent economic developments and policy decisions have introduced uncertainty, potentially affecting the company's outlook for the remainder of the year.
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The company faces tariff exposure, with about 7% to 8% of its cost of goods sold affected by direct imports into the United States.
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There is a potential risk of demand fluctuations in the chemical sector, with some project activities expected to shift to the right.
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The company anticipates a deceleration in year-over-year growth rate in the commercial aftermarket segment as comparisons become more challenging.
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Supply chain disruptions, particularly in the Aerospace segment, could lead to extended lead times as companies adjust their supply chains.
Q & A Highlights
Q: Can you provide more clarity on the updated guidance, particularly regarding the contribution of price to your sales guidance and the nature of the backlog? A: Richard Maue, CFO, explained that they expect about a 3% contribution from price, more heavily weighted towards Process Flow Technologies (PFT). The backlog, particularly in Aerospace and Electronics, includes longer lead-time orders, extending into 2026 and beyond, providing confidence in future growth.