Yahoo Finance

Alejandro Alcala

Thanks, Max. Yes, our teams are having great fun. I must admit, I wish we can enjoy a few months of Boeing and repetitive.
Before I get into the segments, let me provide some insights into our tariff exposure. Overall, about 7% to 8% of our cost of goods sold, consistent materials, and components that are directly imported into the United States.
Another 3% to 4% of cost of goods sold, our inter-company sales into the United States, a portion of with its except from tariffs. Our direct imports into United States are skewed somewhat towards Process Flow Technologies with Aerospace and Electronics in line more heavily on a US supply base.
For Process Flow Technologies, the largest exposure is China where we procure buyout valves, pumps, castings, and motors. However, our total China exposure is well below 3% of Crane total cost of goods.
The other notable exposures for PFT are India, primarily related to casting; and Thailand, primarily for machine parts. Neither of those exposures reaches 1% of total cost of sales.
At Aerospace and Electronics, that primary source of imports is Malaysia, largely related to printed circuit board and only 1% to 2% of total cost of sales for Crane overall. While much smaller, any does also import wire harnesses, machine parts, and power sources from a number of countries, none of which is particularly material.
We expect to offset the majority of the potential tariff impact to price and productivity. We have demonstrated consistently differentiated execution through cycles with its leadership team.
The cadence and discipline of the Crane business system, our machine, along with our performance-based culture, are even more valuable in times like these as they enable us to make data driven decisions quickly with flexibility to adapt as conditions change and with accountability. We will manage through this dislocation and expect to emerge even stronger.
Now, some thoughts on the segments, starting with Aerospace and Electronics. There is no material change in end market conditions relative to our prior expectation. Aerospace remains a very strong demand environment.
On the commercial side of the business, activity remains healthy with point continuing to ramp-up production and aftermarket activity continuing at elevated levels. On the defense side, we continue to see solid performance spending and a continued focus on reinforcing the broader defense industrial base, given the heightened global uncertainty today.
Looking ahead to the balance of 2025, we continue to anticipate core sales growth for the year to be up mid- to high-single digits. With that growth leveraging at 35% to 40%. That guidance assumes continued strong sales with the ramp-up of Boeing offset by decelerating year-over-year growth rate in commercial aftermarket that we have previously highlighted.
As the comparisons become more challenging, pointing out that this is our 16th quarter of double-digit commercial aftermarket growth that, as we talked about when we last reported, were naturally moderate over time. We continue to see above cycle growth for this segment for the remainder of this decade.
We also continue to pursue new opportunities and win new business across the segments. For example, in the quarter, we won additional new content on the XM-30 optionally manned fighting vehicle demonstrator program with the defense power solution. As we have discussed in the past, we are very well positioned regardless of which of the defense primes is awarded a program, and we are further improving our position.
In our sensing and power systems business, we were recently awarded contracts and funded engineering development work on the Bell be to 80 does the Tier two and a Echo and I'm on MAN and the aviation platform, all great programs, what we see significant growth over the next decade, while still early in the development process, we remain actively engaged with engineering teams at our key customers on the technical architecture for the next generation single aisle aircraft to ensure that our technology roadmap and development plans are aligned with our customer needs and really impressive performance are led by our landing solutions team completed flight test hardware for a leading on-demand fighter aircraft program in a record six month timeframe.
Based on precedent for an anti SkinTE brake system to be developed that quickly positioning us well for future opportunity.
A perfect example of the machine at work in engineering, outstanding work by our team, very confident for yet another outstanding year at Aerospace & Electronics.
At profit flow technologies, we remain well positioned to outgrow our markets across cycles.
We have systematically we position our portfolio around our core end markets, including chemical pharmaceuticals, water and wastewater, cryogenics and industrial automation.
These are higher growth end markets, and these are the markets where we have the strongest competitive position and the most differentiation enabling sustainable market outlook.
We remain focused on investing for growth over the long term, with continued execution against our multiyear technology and new product development roadmap as well as commercial excellence initiatives, all enabled by a consistent operational execution.
Tactically, we our plan our ability to react to any changes in demand and quickly, and we will remain nimble during this period, taking any necessary and appropriate price cost measures.
However, our strategy is unchanged and we will manage through any potential demand fluctuations without losing focus on longer-term goals.
And I've spoken to the balance of 2025.
Given our line of sight today, we still anticipate positive core growth sales for the year.
A few notable wins in the quarter included significant customer approval for one of our new site on the pharmaceutical valve with a key target customer.
This approval was critical step for the business, and we continue to drive share gains with new product development, and we are seeing great progress.
We were awarded a 5.7 million project for line pipe line for a Saudi Arabian mining company that is working to develop a third, a complex in Saudi Arabia for fertilizer production capacity are localized site was key to secure this order.
We continue to build out our capabilities and cryogenic space, including both the prior quarter and at Technip acquisition from last year, which are now working closely with our organic initiatives to expand our portfolio of cryogenic that And back in decorative pipe, our combined platform is continuing to grow at a strong pace.
And in the quarter, we had some signal second wins, particularly space launch customers.
So our businesses remain well positioned to continue to deliver great results.
We still expect to significantly add those results.
To add to those results with acquisition, we have a very strong balance sheet today with at least 1.5 billion of M&A capacity.
We also have a robust pipeline of potential acquisitions.
M&a activity has not slowed down at all the deals we are working on today and put a number of opportunities in both aerospace and electronics as well as process flow technologies.
And they range from the small sub $100 million deals by does that compare to last year.
So many times that size.
We mentioned our rigorous process, the machine for acquisition integration and creating value from any business.
We are just as robust a process for M&A opportunity identification and due diligence.
And I'm optimistic about our prospects of deploying capital this year on some great opportunities.
I also wanted to share some takeaway from our recent annual senior leadership conference, about 200 of cranes mall senior associate spend three days at IGs, old quote, and Bill training facilities to share best practices and to keep our global teams around the world connected three days to focus on reinforcing the machine.
It delivers results at Crane.
I remember my first senior leadership meeting shortly after I joined grain in 2013, a great few days by heavily focused on operational execution only which was needed.
And the focus in those days, we were very good then, but so much better today last month.
However, the focus was everything we're doing to drive growth and commercial execution, sharing the best path to examples across Crane on long term technology and product road maps, commercial excellence tools, simplification initiatives and strategic pricing.
It was fall at training on new enhancement to our profit for strategy development, led by some of the that we joined crane last year to meet our Process Flow Technology segment, a powerful today's and I'm incredibly proud of our teams around the world.
We have made so much progress and have the momentum to continue to do so.
Taking all this together, just a lot of really exciting initiative that crane fit all reinforces our confidence that regardless of the current environment over the long term, we will deliver a 4% to 6% long term core sales growth rate through cycles from resilient and durable businesses with solid aftermarket, substantial operating leverage on top of already solid margins today that shouldn't be double digit average annual core profit growth with potential upside and capital deployment and with virtually no net debt at capital deployment opportunity is significant.
Now let me turn the call over to our CFO, Mr. Rich Valley, for more specifics on the quarter.

Richard Maue

Thank you, Alex, and good morning, everyone.
Starting off with total company results, we drove 7.5% core sales growth in the quarter with strength across both segments.
Adjusted operating profit increased 18%, driven by volumes, solid net price and productivity.
In the quarter.
Core FFO neutral backlog was up 12% compared to last year, driven by outsized strength in aerospace and electronics.
And core orders were up 16% compared to last year as well, also driven by aerospace and electronics, but also modest growth in Process Flow Technologies.
That was a bit ahead of our expectations.
Further, we are in a net cash position and have more than 1.5 billion in debt capacity today for M&A.
A few more details on the segments in the quarter, starting with Aerospace & Electronics.
Sales of $249 million increased 10% in the quarter with all of the growth organic and even with the continued high level of sales growth.
Notably, our record backlog of $960 million increased even even further of 21% year over year and up 11% sequentially.
Total aftermarket sales increased 20% with commercial aftermarket sales up 19% and military aftermarket up 24%.
And OEM sales increased 6% in the quarter was 10% growth in commercial and up 1% and military adjusted segment margin of 26%.
A record high for the segment increased 360 basis points from 22.4% last year, primarily reflecting higher volumes, price, net of inflation and productivity that Process Flow Technologies.
In the quarter, we delivered sales of $309 million, up 9%, driven by solid core sales growth of 5% in the quarter.
Along with a 5% benefit from the trial works and Technip acquisitions, offset by a point of unfavorable foreign exchange.
Compared to the prior year.
Core FX neutral backlog decreased 6% and core FX neutral orders were up 2%, both impacted by project timing.
You might recall the notable project wins we highlighted in Q1 of last year and on a sequential basis for FX, neutral orders were up 10% compared to the fourth quarter.
Adjusted operating margin of 20.9% percent expanded 10 basis points.
Importantly, core operating leverage was 35% at the high end of our 30% to 35% targeted range.
As you all know, leverage is always impacted in particular in the 1st year of an acquisition, which was the case in this quarter.
The strong overall performance was driven by productivity strong below the segments.
Some of you may have also noticed that Adjusted corporate expense was about 25 million in the quarter, which is higher than the quarterly average you would expect.
This is related to accounting rules that require accelerated amortization of stock compensation expense for associates that are retirement eligible stock compensation expense will be much higher and the first half and lower in the second half.
We still have corporate costs for the full year.
Hey, all of the comments on today's call regarding the uncertain environment ahead.
Reminded me of a quote from the classic and timeless romantic drama Dodge Ball.
When the great character patches Hula hand played by the late return was preparing the team practice and said, if you can divulge a wrench using Dodge Ball, there has certainly been a few wrenches turnarounds to start the year in our to our team is doing an outstanding job dodging them so far, I personally only have a couple of loans.
And with that, operator, we are now ready to take our first question we gave you.

Question and Answer Session

Operator

(Operator Instructions) Damian Karas, UBS.

Damian Karas

Your line is open.
When it in his bag and what ag?
Mining Max, a rich.
Okay.
Can I buy devices about quick on your way?
Thanks, dial-up.
Yes, no, I appreciate all the details around your main CapEx failures of.
Maybe you could just give us a little bit more clarity on the updated guidance.
To what extent is price contributing to your sales guide at this point?
And just kind of considering the strength of the first quarter orders and that uptick in backlog, is it fair to assume that that's longer lead time backlog?
It's really more 2026 and beyond?

Max Mitchell

Yes.
So Damian, just to maybe your first your first question first on price, yes, we would expect to see somewhere on the vicinity of about 3% overall, more heavily weighted to PFT. for sure.
And in our press a little bit higher in the PFT. segment, a little lower in any.
And so just overall, that's what we would expect for us to offset the majority or most of the tariff impact.
As it relates to backlog, maybe just a little bit of color as to provide there.
And certainly Aerospace & Electronics was significant overall in the quarter and the growth in the backlog app fairly broad-based.
Maybe some color on the aftermarket continues to be a fairly strong.
As you saw Alex mentioned also the comps in the latter part of the year.
But aged fleet continues to be a dynamic.
Our signature and them in the market space.
Retirement is not happening at the at the levels that would cause you to believe a signal second decline and aftermarkets, we feel market.
And then on the Lee is really a combination, both commercial and and defense from an orders point of view on commercial.
Obviously, the build rates are continuing and widespread there as well, right, between both Airbus and CalMat, frankly, in the quarter, defense, to your point a little bit, there's some there's some multiyear orders in there, too.
So that gives us even further confidence in 2026 already a few a few multiyear orders that contributed to the store in the quarter.
But in terms of the guide in relation to the guide of the strength of the backlog, yes, it's related to the length of those orders with.
So reading through beyond 25 brokerage?

Damian Karas

Yes.
Okay.
Got it.
That makes total sense.
And then I'll stop follow-up that some of those comments on defense.
I mean within 80, if you look at some of the details about TWD150 billion defense packaged meats and reconciliation, are there any items the kind of stand out you guys as crane programs are growth drivers in the future?

Max Mitchell

Yes.
I would say just overall, we have such a broad exposure, Damian, across our defense platforms, whether it's fixed wing, even even rotary wing events, we saw some nice aftermarket demand on rotary actually in the quarter on CH 47 on aftermarket.
But overall, from a spend point of view, whether it's munitions or aircraft or radar applications, as you know, where we have a particular strength, we feel really good about the approvals and where we see spend being allocated as we as we look forward into 26.
Total seems as Rich was just mentioning over the course of genomic munitions replenishment.
Unfortunately in this global environment, um, aging military upgrades, that's a key theme.
I would say electrification is another key theme for the future.
From which we highlighted at Investor Day also.
So so those are some of the sort of the major definitive somatic drivers that we continue to see strength through the decade.

Damian Karas

Understood.
Thanks again, the lockout, so I'll pass it along.
Thanks, Dave, and thanks, Ben.

Operator

Scott Deuschle, Deutsche Bank.

Scott Deuschle

Good morning, Scott.
Rich, can you characterize the growth split between volume and price that you saw any this quarter?

Richard Maue

Yes, it was up roughly 50 50.
So right, almost right down the middle.

Scott Deuschle

Okay.
And was commercial OE contributing very material materially to the pricing gains and segment experienced?

Richard Maue

Yes, you know, I don't have the full breakout of that, but certainly we've been making nice progress on certain areas and commercially, but that clearly there has been whether it's from existing contracts with indexed increases or changes that we might have made in response to the contracts that need to do we addressed.
But the I don't have the specific breakout, but it was pretty pretty healthy, I would say, across both aftermarket and commercial.

Scott Deuschle

Okay.
So just to clarify to any major commercial OE LTAs reprice this quarter that you didn't have retrenched last quarter.
I'm just trying to understand the sequential decrease at any.

Richard Maue

No, no.

Scott Deuschle

Okay.
And Rich consensus has EBIT dollars down to a any over the remainder of the year versus what you just reported any this quarter?
I guess I realize this environment of uncertainty, but is there any discrete reason why you would think that would be the case and EBITDA declined from two sources?

Richard Maue

Yes, so at but I would say is that in the quarter we had we had a very strong quarter overall, as you saw, with the leverage of 60% in any we had a decent mix.
We had strong engineering sales, completing a few, I think, major development programs that had some nice margin to them.
And so a few things is what I would say added up overall in the quarter that contributed to that 60%.
Alex mentioned in his prepared remarks that the comps start to kind of move down some.
But overall, there's nothing that would suggest any sort of overall weakening to any significant degree.
There was perhaps just a few items in the quarter that that we benefited from.

Scott Deuschle

Okay.
And is Komag still taking delivery of the policy makes the C. nine one nine even with for talent to return at this point?

Richard Maue

Yes.
Thanks for your questions, Alex.
We actually met with Coal-Mac a couple of weeks ago to look at the ramp up and everything is moving forward very smoothly.
Never a big ramp up a project of this year, and they're on track are still taking deliveries, emphasize the importance of staying on track the aftermarket as well.
So everything progressing quite well.
As you know, we have a really strong position with up nine one nine platform and they're also in the development of the 99, the wide body, which we expect also have a great position.
Our team's doing a great job.
A lot of our key members were in China last week.
And though all looks positive from that regard.

Scott Deuschle

Okay, thank you.
Ambassador Safeco Insurance.

Operator

Jeffrey Sprague, Vertical Research Partners.
Your line is open.

Jeffrey Sprague

Wonderful.
Thank you and good morning, Matt, say a high-level one for you first, and then a couple of detailed questions.
You know, in your opening commentary, just talking about emerging stronger, like was that just kind of an overarching, do that kind of splitting the organization exercising that muscle trial by fire makes it better?
Or do you actually we see some places maybe where you have competitive footprint advantage or other advantages versus competitors that you might be able to look at share both?

Max Mitchell

Jeff, both I think anytime that you exercise like this, it sharpens the sort of the others.
We're seeing some opportunities where our competitors are positioned or some decisions they're making that we think we have some openings statistic.

Jeffrey Sprague

Okay, great.
And then just on the tariffs again on.
So there's a 7% to 8% of COGS of the call to 101 follow-up, quite what Alex was getting at with the additional rate of four inter-company.
Was that kind of the USMCA comment and not a cost headwind or whether you could just elaborate on what that meant?
Was that right on the roughly $100 million you would have adapted for?

Max Mitchell

Yes.
Thank you.
Thank you for your question.

Jeffrey Sprague

You had 100 million or was this related to direct imports from external suppliers and then there's another three or 4% of inner unit?
Some of that is a time because the USMCA from any unit shipments.
But those those are the imports.
That's not the tariff impact that we have spectrum in our P&L to that or does the of the overall the tariff impact is more around the $60 million range for this year?

Max Mitchell

Considering all factors into direct impact on suppliers.
And that's mostly on the PFT. side because as you know, our aerospace business is very heavily source, the domestic part by silicon, $600 million of direct annualized, 60 million a year basis.

Jeffrey Sprague

And then just maybe one other one for you, Alex, just from where you might see some demand risks given you in your business and I'm kind of thinking can write those guys are cutting CapEx and comprises our decline.
Is that does that worry you hedged your guide from a demand standpoint?

Alejandro Alcala

So there's other verticals that with NTST. that it will address.
Yes, John, MPSP., where we think about the the for the MRO side and the project side.
So across all verticals, I think the MRO side, but usually when they're softness remains somewhat consistent.
And that's all about the project activity and shifting to the right.
So on the chemical side, what we've seen last year and this year, different dynamics by region, U.S. continue to move.
Middle East continues to move forward.
You are softening.
We did start hearing customers thinking about delaying decisions, trying to see how this tariff points out.
So we did make assumptions on projects shifting to the right, in particular in the chemical in the United States, but also in other regions.

Jeffrey Sprague

I'm wondering going back to our guidance.
Right.
Thank you.
And then one quick one for Rich of assets.
You're still guiding minus one.
It sounds like it's gotten a couple of pennies in your back pocket.
There may be a history lesson, does that essentially 30 lists or maybe update us on on that?

Richard Maue

Yes, exactly.
That's exactly what it is.
As soon as we just signed, 11 are going to eat all the changes that can happen there and stability here.
I will see if it if it sticks, but your hunch is correct.
A couple of attempting to my target.
Your next steps.

Operator

Nathan Jones, Stifel.
Your line is open.

Nathan Jones

Smart and good morning, everyone.
Florida, Atlanta, just scared of Jetix.
I won't say that I wish I was there, but I do wish you were here and Carl, good.
I like that, but I like that.
I guess first question is on supply chain on during COVID.
That was obviously a lot of supply chain disruption.
And you guys are components that go into other systems.
I'd be less concerned about your ability to manage our supply chain and more concerned about, you know, people who who supply into those same projects being able to manage their supply chain.
And do you see any risk to to any of the bit any parts of the business that that could arise just and other impacts on on that others who buys supply chains that they could impact your ability to or your customers' ability to finish projects and take delivery of products similar to maybe what happened during COVID?

Max Mitchell

Yes.
Nathan, thanks for your questions as Alex.
So I think you have to think about separately from PFP. and A. perspective, IPST. side, I would not expect anything significant that supply chain has returned since last year to normal rate is pretty stable.
Of course, the shipment lanes and things like that from Asia are getting clogged up until for, but I would not expect any significant change in supply chain ability to deliver on that side.
On the A. and E. side of to hear the 1st month, we saw pretty stable, a slightly improving.
I know everybody saw the news, the issues with DSP as fast in our facility in the ag nominees in foundry that at the not directly impact us.
That said, as these supplied, some companies tried to adjust their supply chain and the tariffs won't help write a supply chain improvement in aerospace, for sure.
So we would expect some lead time extensions as people get out a certain region and trying to get it others and capacity constraints from from some suppliers from those movements in supply chain.
But we're not seeing any major disruption caused by that.
And we're planning for some of those in some areas be extended and that's what we factored in as well.

Nathan Jones

Thanks for that.
I guess my second question, you talked about PSKO. it as being a bit stronger than you'd anticipated in the first quarter.
So I guess the question areas, do you think customers were prepositioning ahead of, you know, cash related price increases?
And then you guys preposition some inventory in front of tires during the first quarter yourselves?

Max Mitchell

Yes, good question.
On the inventory, no, we don't we are we have experienced having these tariffs is lower for, as you do know, were engineered to order as number of the right inventory.
We tried to play games.
So from that standpoint, we did it on the pre-buy.
I mean, we did hear some of at K. pre-buy from distributors stocking a bit more.
That's not really significant, I would say not material really what drove the better than expected or some projects that have been tracking for a while now since last year that that hit in the quarter that drove some of that favorability.
So I would say a little bit of pre-buy, but not not anything major.

Nathan Jones

Great.
Thanks very much for taking my questions.
See you on the debt side of the main.
Thanks, Nathan.
Thanks, Dan.

Operator

(Operator Instructions) Ronald Epstein, Bank of America.
Your line is open.

Ronald Epstein

Good morning.
This is Jordan on for Ron.
Jordan, thanks for those questions.
In the first one for M&A, and you guys seen any slowdown in tools or pauses happening just because of the macro.

Max Mitchell

Now we have it.
We haven't seen any slowdown.
This input is very, very active for us.

Ronald Epstein

Okay.
And then on Boeing's calls, the little comment about their profit stock, having been I to stabilize your supply chain that I would go back to normalized levels.
You guys have been fairly good about controlling the inventory that you guys have in the channel.
Are you concerned at all, though for other suppliers that you might be feeding into that would be getting destock?

Max Mitchell

I mean, I think our oil has done a great job being transparent on their inventory position with us, I imagine with other suppliers as well.
So we are very, very well aligned to what they need and are expecting or planning to support that through our factories are well in tune and efficiency to support that ramp up of to my.
And my understanding is that is the same with many other suppliers that are well in tune with the billings inventory position and and planning appropriately.

Ronald Epstein

Okay, got it.
Thank you so much.
Thanks, Jordan.
Thanks, Jordan.

Operator

Matt Summerville, D.A. Davidson.
Your line is open.

Matt Summerville

Format and some phase morning.
Just a couple of follow-ups.
That $60 million.
I just want to clarify is that the on mitigated number, meaning that is the magnitude by which your COGS are going higher, all else equal as a result of the tariffs are clear on that?

Max Mitchell

Yes, that would be the gross the gross number, right, that we will substantially mitigate, assuming these tariffs exist through the entire balance of the year.
No change up or down.

Matt Summerville

Got it.
Thank you for that clarification.
And then you talked just very briefly on the chemical market with respect to TFT. he made in terms of looking across both the MRO and project side of the business, geographic color around the major end market buckets and product lines.
You guys please refer to in that business?

Max Mitchell

Yes, for I mean, for IPST., as you know, chemical off really strong position.
We have a substantial presence globally.
I think we went into the year with the expectation is different by region, and we saw that play out in Q1.
So in the Americas, we saw positive growth both on MRO and private activity where customers are expanding ground side, driving efficiency upgrades, things of that nature of many similar continued investment in growth.
And then since last year in Europe, it's been a soft declining and that has continued a China as well, somewhat soft and the Asia Pac kind of mix.

Matt Summerville

So hi, how are we close?

Max Mitchell

Our last year was the first four months of the year are now going forward.
Like I mentioned, we expect some of that project activity in the Americas to shift to the right place, some softening in demand versus what we saw in Q1.
And that's what we baked into our guidance.

Matt Summerville

Thank you to that.
Alex, can you talk about some of the other end markets of in that business as well, what you're seeing with Criteo, industrial automation, water, wastewater, et cetera?

Alejandro Alcala

The water wastewater in the quarter, orders were strong up.
So we feel good about that continuing.
Cryogenics have been our fastest growing segment of double business.
So that has been a very exciting platform that we've added and continue to expand and gain share and take advantage of the market by.
That's driven by our baseline activity where applications are being built out in various parts of the country.
And then general industrial activity has in the first part of this year in the quarter have been slightly up.
So I think overall, a lot of positives in the first quarter, I think, partially offset by what I mentioned and chemical, particularly in Europe and other parts of the world as well.

Matt Summerville

Got it.
And then maybe just one final one.
Rich is, as we look out in the wall, draw our attention to a term safe kind of the remaining earnings cadence as we move through Q2 three and four.

Richard Maue

Yes, I think I think the high level would be size.
You're looking at next quarter just slightly down slightly.
And then I would I would think of the full year as more from now equally weighted, frankly, first half second half overall.

Matt Summerville

Got it.
Thank you.
You're welcome.
Thank you.

Operator

Justin Ages, CJS Securities.
Your line is open.

Justin Ages

For adjustments boring, no question.
There's been a bunch of headlines about travel being down, given the political environment have you seen or do you expect to see that impacting your business at all?

Max Mitchell

What we're seeing the same headlines reading the same reports that we don't we're not seeing it read through.
I mean, I think has aged fleet is still requiring the same level of maintenance.
Aftermarket continues to be strong.
Deliveries are still not where they need to be in terms of the replacement cycle, Boeing's trying to ramp up.
So, you know, I side, we just don't see it and we're not hearing it from our customers are.

Justin Ages

That's helpful.
And then following up on the M&A commentary, can you give us any indication of how far along our many processes and PF. tier and any any deals that you guys are in the first three weeks of May first, two weeks of May, Alex and I will be Chairman with with the teams.

Max Mitchell

We've gone from kind of nonstop due diligence across multiple phone acquisitions, both domestically and internationally in terms of locations.
So we're very, very active in the process.
You know, really nice fit, really nice fit attractive.
We're going to be competitive from hopeful that we'll have some activity to announce in 2020 first.

Justin Ages

Great.
I appreciate you taking the question.

Operator

(Operator Instructions) Tony and costs with Gabelli Funds.
Your line is open.

Good morning, millions and pay our a great job on the quarter very well done.
I just I just wanted to I know you've pretty much said that the tariffs are going to be relatively mitigate and that's not an impact.
But on the on the aero side, you're hearing comments from the China trade minister yesterday about what disruptions in China in personal travel and and you should make particularly France and fans.
You're seeing aerospace and defense industry talking about tariff exemptions that how do you see this all playing out media side as impactful to you?
But Tom, maybe you could talk to that a little bit next.

Max Mitchell

Well, I think it's anybody's guess anybody's guess.
But honestly, the in terms of home was moves forward for quite honestly, I'm more optimistic and quite honestly, I think things will get resolved.
I think we are trading partners, while there's certainly been a number of serious issues that are being addressed or our global environment is too important to one another.
And I think these things will get sorted.
I think of when that does, that's going to be a very positive for all of us as we move forward.

Thanks so much.
Great job.
Thanks, Tony.
Thank you.

Operator

This concludes the Q&A portion of today's call.
I would now like to turn the floor over to Max Mitchell for closing remarks.

Max Mitchell

Thank you all for attending today.
Our focus today is executed on everything within our control.
We acting swiftly to what is outside our control, serving their customers to invest in all of our growth initiatives and technology roadmaps to driving profitable growth.
I fully expect to emerge from this dislocation and an even stronger competitive position than when we entered the year as a week.
Great gene Hackman said, challenges are what make life interesting?
Overcoming them is what makes life meetings for our teams at Crane, continue to make our lives hugely meaningful as we continue to deal successfully with life interesting challenges.
Thank you all for your interest in Crane and your time and attention this morning.
We have a great day.
Thank you.

Operator

This concludes today's Crane Company First Quarter 2025 earnings conference call.
Please disconnect your lines at this time and have a wonderful day.
The program, some room there, Dave?
No, Mm-hmm.