Crane delivered a first quarter that exceeded Wall Street’s expectations, fueled by solid execution in its Aerospace & Electronics and Process Flow Technologies segments. Management pointed to robust core sales growth and strong order activity, particularly in aerospace, as key contributors. CEO Max Mitchell highlighted that aftermarket aviation demand and continued progress with new product wins helped drive the 7.5% organic revenue increase. Chief Operating Officer Alex Alcala also credited the company’s ability to rapidly respond to shifting market conditions, noting, “We have demonstrated consistently differentiated execution through cycles with this leadership team.”
Is now the time to buy CR? Find out in our full research report (it’s free).
Crane (CR) Q1 CY2025 Highlights:
- Revenue: $557.6 million vs analyst estimates of $549.1 million (9.3% year-on-year growth, 1.5% beat)
- Adjusted EPS: $1.39 vs analyst estimates of $1.31 (6.5% beat)
- Adjusted EBITDA: $116.6 million vs analyst estimates of $114.9 million (20.9% margin, 1.5% beat)
- Management reiterated its full-year Adjusted EPS guidance of $5.45 at the midpoint
- Operating Margin: 18.1%, up from 15.9% in the same quarter last year
- Organic Revenue rose 7.5% year on year (5% in the same quarter last year)
- Market Capitalization: $10.28 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Crane’s Q1 Earnings Call
- Damian Karas (UBS) asked about the contribution of pricing to sales growth and the duration of recent order backlog. CFO Rich Maue explained that about 3% of growth was from price, mainly in Process Flow Technologies, and that the backlog includes multiyear contracts extending visibility into 2026.
- Scott Deuschle (Deutsche Bank) questioned the split between volume and price in Aerospace & Electronics and the sustainability of margins. Maue clarified growth was about evenly split, with strong margin performance due to healthy mix and engineering sales, but noted that some gains from development programs were not expected to repeat every quarter.
- Jeffrey Sprague (Vertical Research Partners) inquired about Crane’s competitive advantages amid industry disruption and details on tariff cost exposures. CEO Max Mitchell said current challenges sharpen organizational effectiveness, and Alcala provided specifics on direct and indirect tariff impacts, mostly concentrated in Process Flow Technologies.
- Nathan Jones (Stifel) asked about potential supply chain disruptions from external suppliers and customer pre-buying ahead of tariffs. Alcala responded that supply chains are stable, with only minor pre-buying activity observed; the quarter’s outperformance was mainly due to longstanding project wins.
- Justin Ages (CJS Securities) sought updates on M&A activity. CEO Max Mitchell confirmed a very active acquisition pipeline in both Process Flow Technologies and Aerospace & Electronics, with ongoing due diligence on multiple opportunities domestically and internationally.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be watching (1) the pace of aerospace aftermarket and defense order growth, (2) Crane’s ability to offset tariff costs through pricing and productivity, and (3) progress on executing and integrating acquisitions. We will also monitor developments in Process Flow Technologies’ pharmaceutical and cryogenic businesses for additional signs of market share gains.
Crane currently trades at $178.80, up from $148.51 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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