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Crane Company Reports Third Quarter 2024 Results and Raises Full Year EPS Guidance

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Crane Company (NYSE: CR) reported strong Q3 2024 results with EPS of $1.33, up 39%, and adjusted EPS of $1.38, up 34%. Sales reached $597 million, increasing 13% with 6% core sales growth. The company demonstrated robust performance in its Aerospace & Electronics segment, with core order growth up 6% and core backlog growth up 10%. Based on these results, Crane raised its full-year adjusted EPS guidance to $5.05-$5.20, up from $4.95-$5.15. However, performance was slightly impacted by Hurricane Helene affecting a Process Flow Technologies facility in Marion, North Carolina.

Crane Company (NYSE: CR) ha riportato risultati forti per il terzo trimestre del 2024 con un utile per azione (EPS) di $1,33, in aumento del 39%, e un EPS rettificato di $1,38, in aumento del 34%. Le vendite hanno raggiunto 597 milioni di dollari, con un incremento del 13% e una crescita delle vendite core del 6%. L'azienda ha dimostrato una performance robusta nel suo segmento Aerospaziale ed Elettronico, con una crescita degli ordini core del 6% e una crescita del backlog core del 10%. Sulla base di questi risultati, Crane ha alzato le previsioni per l'EPS rettificato per l'intero anno a $5,05-$5,20, rispetto a $4,95-$5,15. Tuttavia, la performance è stata leggermente influenzata dal passaggio dell'uragano Helene che ha colpito un impianto di Process Flow Technologies a Marion, Carolina del Nord.

Crane Company (NYSE: CR) reportó resultados fuertes para el tercer trimestre de 2024 con un EPS de $1.33, un aumento del 39%, y un EPS ajustado de $1.38, un incremento del 34%. Las ventas alcanzaron $597 millones, aumentando un 13% con un crecimiento de ventas centrales del 6%. La compañía mostró un rendimiento robusto en su segmento de Aeronáutica y Electrónica, con un crecimiento de pedidos centrales del 6% y un crecimiento del backlog central del 10%. Basándose en estos resultados, Crane elevó su guía de EPS ajustado para todo el año a $5.05-$5.20, en comparación con $4.95-$5.15. Sin embargo, el rendimiento se vio ligeramente afectado por el huracán Helene que impactó una instalación de Process Flow Technologies en Marion, Carolina del Norte.

크레인 컴퍼니 (NYSE: CR)는 2024년 3분기 강력한 실적을 보고했습니다. 주당순이익(EPS) $1.33으로 39% 증가했고, 조정된 EPS는 $1.38로 34% 증가했습니다. 매출은 $597 백만에 도달하여 13% 증가했으며, 핵심 매출 성장률은 6%였습니다. 이 회사는 항공 우주 및 전자 부문에서 강력한 성과를 보여주었고, 핵심 주문 성장률은 6% 증가했으며 핵심 백로그 성장률은 10% 증가했습니다. 이러한 결과를 바탕으로 크레인은 연간 조정 EPS 가이던스를 $5.05-$5.20로 상향 조정했습니다(이전 $4.95-$5.15). 그러나 성과는 노스캐롤라이나주 마리온에 있는 프로세스 흐름 기술 공장을 영향을 미친 헬레네 허리케인으로 인해 약간 영향을 받았습니다.

Crane Company (NYSE: CR) a rapporté de solides résultats au troisième trimestre 2024 avec un bénéfice par action (EPS) de 1,33 $, en hausse de 39 %, et un EPS ajusté de 1,38 $, en hausse de 34 %. Les ventes ont atteint 597 millions de dollars, avec une augmentation de 13 % et une croissance des ventes de base de 6 %. L'entreprise a montré une performance robuste dans son segment Aérospatiale et Électronique, avec une croissance des commandes de base de 6 % et une croissance du carnet de commandes de base de 10 %. Sur la base de ces résultats, Crane a relevé ses prévisions d'EPS ajusté pour l'année entière à 5,05 $ - 5,20 $, contre 4,95 $ - 5,15 $. Cependant, la performance a été légèrement impactée par l'ouragan Helene, qui a affecté une installation de Process Flow Technologies à Marion, en Caroline du Nord.

Crane Company (NYSE: CR) berichtete von starken Ergebnissen im dritten Quartal 2024 mit einem Gewinn pro Aktie (EPS) von $1,33, was einem Anstieg von 39% entspricht, und einem bereinigten EPS von $1,38, was einem Anstieg von 34% entspricht. Der Umsatz erreichte $597 Millionen, was einem Anstieg von 13% mit einem Wachstum des Kerngeschäfts von 6% entspricht. Das Unternehmen zeigte eine robuste Leistung im Segment Luft- und Raumfahrt und Elektronik, mit einem Anstieg der Kernaufträge um 6% und einem Anstieg des Kernauftragsbestands um 10%. Basierend auf diesen Ergebnissen hat Crane die Prognose für den bereinigten EPS für das Gesamtjahr auf $5,05-$5,20 angehoben, im Vergleich zu $4,95-$5,15. Die Leistung wurde jedoch leicht durch den Hurrikan Helene beeinträchtigt, der eine Einrichtung für Prozessfluss-Technologien in Marion, North Carolina, betroffen hat.

Positive
  • Q3 EPS increased 39% to $1.33, with adjusted EPS up 34% to $1.38
  • Sales grew 13% to $597 million with 6% core sales growth
  • Aerospace & Electronics backlog increased to $833 million from $678 million YoY
  • Operating profit margin expanded 320 basis points to 17.6%
  • Raised full-year adjusted EPS guidance to $5.05-$5.20
Negative
  • Engineered Materials segment sales decreased 13% YoY
  • Hurricane Helene impact on Process Flow Technologies facility affecting operations
  • Free cash flow expected at lower end of $255-$275 million range due to working capital headwinds

Insights

Strong Q3 results demonstrate robust operational execution with 34% adjusted EPS growth to $1.38, driven by 6% core sales growth. The raised full-year EPS guidance to $5.05-$5.20 signals management's confidence despite Hurricane Helene's impact. Key positives include 10% core backlog growth and 6% order growth, particularly in Aerospace & Electronics. The segment's backlog of $833M shows strong momentum in commercial aerospace. While working capital challenges and hurricane-related insurance timing affect free cash flow, the company maintains a healthy balance sheet with $258M cash and $332M debt, positioning well for strategic acquisitions and growth initiatives.

The Aerospace & Electronics segment's performance is particularly noteworthy, with 15% sales growth and significant margin expansion of 410 basis points to 23.5% adjusted operating margin. The substantial backlog increase to $833M from $678M year-over-year indicates strong commercial aerospace recovery and positions the segment for sustained growth. The Vian acquisition's 5% contribution demonstrates successful M&A integration. Higher price realization and productivity improvements, despite mix headwinds, showcase operational excellence in this high-margin business.

Third Quarter 2024 Highlights

  • Earnings per diluted share (EPS) of $1.33, up 39%, and adjusted EPS of $1.38, up 34%.
  • Sales of $597 million, up 13% driven by 6% core sales growth.
  • Core order growth up 6% and core backlog growth up 10%, driven primarily by ongoing strength at Aerospace & Electronics.
  • Declaring fourth quarter 2024 regular dividend of $0.205 per share.

Full Year Outlook

  • Raising and narrowing our full year adjusted EPS outlook to a range of $5.05-$5.20, up from $4.95-$5.15.

STAMFORD, Conn.--(BUSINESS WIRE)-- Crane Company ("Crane," NYSE: CR) today announced its financial results for the third quarter of 2024 and raised and narrowed its adjusted full-year EPS outlook.

Max Mitchell, Crane's Chairman, President and Chief Executive Officer, stated: "We delivered another quarter of excellent results, with 34% adjusted EPS growth driven by 6% core sales growth, reflecting continued strong execution by our teams globally. Furthermore, demand trends across our strategic growth platforms were also encouraging in the quarter, with 6% year-over-year core order growth and 10% year-over-year core backlog growth, giving us confidence as we close out the year and increasingly look toward 2025. Taken together, we are raising our 2024 adjusted EPS outlook to a range of $5.05-$5.20, up from our prior view of $4.95-$5.15.”

Mr. Mitchell concluded: “While our updated full year guidance represents yet another record year for Crane, our outperformance is tempered by the impact of Hurricane Helene on one of our Process Flow Technologies facilities in Marion, North Carolina, and accordingly, our underlying performance is even stronger. I am incredibly proud of our team's efforts on executing on recovery actions which we expect to be completed in the fourth quarter.”

Third Quarter 2024 Results

Third quarter 2024 GAAP EPS of $1.33 compared to $0.96 in the third quarter of 2023. Third quarter 2024 adjusted EPS of $1.38 compared to $1.03 in the third quarter of 2023.

Third quarter sales increased 13%, with 6% core sales growth, a 6% contribution from acquisitions, and a slight contribution from favorable foreign exchange. Operating profit of $105 million increased 38% compared to last year, and adjusted operating profit of $109 million increased 35% compared to last year, in both cases primarily reflecting the impact from net price and productivity.

Summary of Third Quarter 2024 Results

 

 

Third Quarter

 

Change

(unaudited, dollars in millions)

 

2024

 

2023

 

$

 

%

Net sales

 

$597

 

$530

 

$

67

 

13

%

Core sales

 

 

 

 

 

 

32

 

6

%

Acquisitions

 

 

 

 

 

 

34

 

6

%

Foreign exchange

 

 

 

 

 

 

1

 

0

%

 

 

 

 

 

 

 

 

 

Operating profit

 

$105

 

$76

 

$

29

 

38

%

Adjusted operating profit*

 

$109

 

$81

 

$

28

 

35

%

 

 

 

 

 

 

 

 

 

Operating profit margin

 

17.6%

 

14.4%

 

 

 

320bps

Adjusted operating profit margin*

 

18.3%

 

15.2%

 

 

 

310bps

*Please see the attached Non-GAAP Financial Measures tables

Cash Flow, Financing Activities and Other Financial Metrics

During the third quarter of 2024, cash provided by operating activities was $82 million, capital expenditures were $9 million, and free cash flow (cash provided by operating activities less capital spending) was $73 million. Adjusted free cash flow (free cash flow excluding transaction related cash outflows) was $75 million. (Please see the attached non-GAAP Financial Measures tables.)

As of September 30, 2024, the Company's cash balance was $258 million with total debt of $332 million.

Rich Maue, Crane's Executive Vice President and Chief Financial Officer, added: "For the full year, we now expect free cash flow to fall at the lower end of our estimated $255-$275 million range, primarily due to working capital headwinds commercial aerospace suppliers are facing, now coupled with the timing of hurricane-related insurance recoveries.

However, these items are transitory, and our strong balance sheet gives us the flexibility to continue investing strategically, while providing the opportunity for further capital deployment. As always, we will deploy our capital with the same strict financial and strategic discipline that we have always employed. We see numerous opportunities for value-creating acquisitions to further accelerate our growth, and with the ability to generate enhanced returns given our lengthy track record of successful acquisition integration and synergy generation."

Third Quarter 2024 Segment Results

All comparisons detailed in this section refer to operating results for the third quarter 2024 versus the third quarter 2023.

Aerospace & Electronics

 

 

Third Quarter

 

Change

(unaudited, dollars in millions)

 

2024

 

2023

 

$

 

%

Net sales

 

$

239

 

 

$

207

 

 

$

32

 

15

%

Core sales

 

 

 

 

 

 

21

 

10

%

Acquisitions

 

 

 

 

 

 

11

 

5

%

 

 

 

 

 

 

 

 

 

Operating profit

 

$

55

 

 

$

40

 

 

$

15

 

37

%

Adjusted operating profit*

 

$

56

 

 

$

40

 

 

$

16

 

40

%

 

 

 

 

 

 

 

 

 

Operating profit margin

 

 

23.0

%

 

 

19.4

%

 

 

 

360bps

Adjusted operating profit margin*

 

 

23.5

%

 

 

19.4

%

 

 

 

410bps

*Please see the attached Non-GAAP Financial Measures tables

Sales of $239 million increased 15% compared to the prior year, driven by 10% core sales growth and a 5% benefit from the previously announced Vian acquisition. Operating profit margin of 23.0% increased 360 basis points from last year, primarily reflecting the impact of higher price net of inflation, productivity, and higher volumes partially offset by unfavorable mix. Adjusted operating profit margin of 23.5% increased 410 basis points from last year. Aerospace & Electronics' order backlog was $833 million as of September 30, 2024 compared to $701 million as of December 31, 2023, and $678 million as of September 30, 2023.

Process Flow Technologies

 

 

Third Quarter

 

Change

(unaudited, dollars in millions)

 

2024

 

2023

 

$

 

%

Net sales

 

$

309

 

 

$

267

 

 

$

42

 

16

%

Core sales

 

 

 

 

 

 

18

 

7

%

Foreign exchange

 

 

 

 

 

 

1

 

0

%

Acquisitions

 

 

 

 

 

 

23

 

9

%

 

 

 

 

 

 

 

 

 

Operating profit

 

$

66

 

 

$

51

 

 

$

14

 

28

%

Adjusted operating profit*

 

$

67

 

 

$

51

 

 

$

16

 

31

%

 

 

 

 

 

 

 

 

 

Operating profit margin

 

 

21.2

%

 

 

19.2

%

 

 

 

200bps

Adjusted operating profit margin*

 

 

21.8

%

 

 

19.2

%

 

 

 

260bps

*Please see the attached Non-GAAP Financial Measures tables

Sales of $309 million increased 16% compared to the prior year, driven by 7% core sales growth and a 9% benefit from the previously announced Baum and CryoWorks acquisitions. Operating profit margin expanded 200 basis points to 21.2% primarily due to favorable net price, productivity, and higher volumes, partially offset by unfavorable mix. Adjusted operating profit margin expanded 260 basis points to 21.8% from last year. Process Flow Technologies order backlog was $392 million as of September 30, 2024 compared to $379 million as of December 31, 2023, and $353 million as of September 30, 2023.

Engineered Materials

 

 

Third Quarter

 

Change

(unaudited, dollars in millions)

 

2024

 

2023

 

$

 

%

Net sales

 

$

49

 

 

$

56

 

 

$

(7

)

 

(13

%)

 

 

 

 

 

 

 

 

 

Operating profit

 

$

6

 

 

$

8

 

 

$

(2

)

 

(20

%)

Adjusted operating profit*

 

$

6

 

 

$

8

 

 

$

(1

)

 

(18

%)

 

 

 

 

 

 

 

 

 

Operating profit margin

 

 

12.7

%

 

 

13.7

%

 

 

 

(100bps)

Adjusted operating profit margin*

 

 

12.9

%

 

 

13.7

%

 

 

 

(80bps)

*Please see the attached Non-GAAP Financial Measures tables

Sales of $49 million decreased 13% compared to the prior year. Operating profit margin declined 100 basis points to 12.7%, and adjusted operating profit margin declined 80 basis points to 12.9%, primarily driven by lower volumes.

Updating 2024 Guidance

We are raising and narrowing our full-year adjusted EPS outlook to a range of $5.05 to $5.20, up from our prior view of $4.95 to $5.15.

Key assumptions for our revised guidance include:

  • Total sales growth of approximately 11% (unchanged), driven by core sales growth of approximately 5% to 7% (unchanged, but now expected to be at the higher end of the range) and an acquisition benefit of approximately 5% (unchanged).
  • Adjusted segment operating margin of ~20.8% (up from 20.7%).
  • Corporate cost of $80 million (unchanged).
  • Net non-operating expense of $20 million (unchanged).
  • Adjusted tax rate of 22.5% (prior 23.0%).
  • Diluted shares of ~58 million (unchanged).
  • Includes the negative impact from the production downtime resulting from Hurricane Helene.

Additional details of our outlook and guidance are included in the presentation that accompanies this earnings release available on our website at www.craneco.com in the "investors" section.

Declaring Fourth Quarter Dividend

Crane announced its regular quarterly dividend of $0.205 per share for the fourth quarter of 2024. The dividend is payable on December 11, 2024 to shareholders of record as of November 29, 2024.

Additional Information

References to changes in “core sales” or "core growth" in this report include the change in sales excluding the impact of foreign currency translation and acquisitions and divestitures from closing up to the first anniversary of such acquisitions or divestitures.

Crane operated as part of Crane Holdings, Co. for the entire first quarter of 2023 prior to completion of the separation transaction on April 3, 2023. First quarter 2023 results, as initially reported in May 2023, were derived from Crane Holdings, Co.'s accounting records and were presented on a carve-out basis. All of Crane's subsequent financial disclosures for pre-separation periods show the financial results of Crane Holdings, Co. (now renamed Crane NXT, Co.) with the Payment & Merchandising Technologies segment presented as discontinued operations.

As a result of the change in accounting presentation required by GAAP, first quarter 2023 GAAP EPS was reported as $1.08 when initially reported on a carve-out basis, and in subsequent reports, reported as $0.98 with the Payment & Merchandising Technologies segment presented as discontinued operations. First quarter 2023 Adjusted EPS on a carve-out basis was reported as $1.25, and $1.26 with the Payment & Merchandising Technologies segment presented as discontinued operations. Segment operating profit was the same under both accounting methodologies.

Conference Call

Crane has scheduled a conference call to discuss the third quarter financial results on Tuesday, October 29, 2024 at 10:00 A.M. (Eastern). All interested parties may listen to a live webcast of the call at www.craneco.com. An archived webcast will also be available to replay this conference call directly from the Company’s website under Investors, Events & Presentations. Slides that accompany the conference call will be available on the Company’s website.

About Crane Company

Crane Company has delivered innovation and technology-led solutions for customers since its founding in 1855. Today, Crane is a leading manufacturer of highly engineered components for challenging, mission-critical applications focused on the aerospace, defense, space and process industry end markets. The Company has two strategic growth platforms: Aerospace & Electronics and Process Flow Technologies. Crane has approximately 7,500 employees in the Americas, Europe, the Middle East, Asia and Australia. Crane Company is traded on the New York Stock Exchange (NYSE: CR). For more information, visit www.craneco.com.

Forward-Looking Statements Disclaimer

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, including, but not limited to: benefits and synergies of the separation transaction; strategic and competitive advantages of Crane; future financing plans and opportunities; and business strategies, prospects and projected operating and financial results. We caution investors not to place undue reliance on any such forward-looking statements.

These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained.

Risks and uncertainties that could cause actual results to differ materially from our expectations include, but are not limited to: changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations that may harm our business, results of operation and stock price; information systems and technology networks failures and breaches in data security, theft of personally identifiable and other information, non-compliance with our contractual or other legal obligations regarding such information; our ability to source components and raw materials from suppliers, including disruptions and delays in our supply chain; demand for our products, which is variable and subject to factors beyond our control; governmental regulations and failure to comply with those regulations; fluctuations in the prices of our components and raw materials; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow our business as planned; risks from environmental liabilities, costs, litigation and violations that could adversely affect our financial condition, results of operations, cash flows and reputation; risks associated with conducting a substantial portion of our business outside the U.S.; being unable to identify or complete acquisitions, or to successfully integrate the businesses we acquire, or complete dispositions; adverse impacts from intangible asset impairment charges; potential product liability or warranty claims; being unable to successfully develop and introduce new products, which would limit our ability to grow and maintain our competitive position and adversely affect our financial condition, results of operations and cash flow; significant competition in our markets; additional tax expenses or exposures that could affect our financial condition, results of operations and cash flows; inadequate or ineffective internal controls; specific risks relating to our reportable segments, including Aerospace & Electronics, Process Flow Technologies and Engineered Materials; the ability and willingness of Crane Company and Crane NXT, Co. to meet and/or perform their obligations under any contractual arrangements that are entered into among the parties in connection with the separation transaction and any of their obligations to indemnify, defend and hold the other party harmless from and against various claims, litigation and liabilities; and the ability to achieve some or all the benefits that we expect to achieve from the separation transaction.

Readers should carefully review Crane’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Crane’s Annual Report on Form 10-K for the year ended December 31, 2023 and the other documents Crane files from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Crane assumes no (and disclaims any) obligation to revise or update any forward-looking statements.

We make no representations or warranties as to the accuracy of any projections, statements or information contained in this press release. It is understood and agreed that any such projections, targets, statements and information are not to be viewed as facts and are subject to significant business, financial, economic, operating, competitive and other risks, uncertainties and contingencies many of which are beyond our control, that no assurance can be given that any particular financial projections ranges, or targets will be realized, that actual results may differ from projected results and that such differences may be material. While all financial projections, estimates and targets are necessarily speculative, we believe that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates and targets. The inclusion of financial projections, estimates and targets in this press release should not be regarded as an indication that we or our representatives, considered or consider the financial projections, estimates and targets to be a reliable prediction of future events.

(Financial Tables Follow)

Source: Crane Company

CRANE COMPANY

Condensed Statements of Operations Data

(unaudited, in millions, except per share data)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2024

 

2023

 

2024

 

2023

Net sales:

 

 

 

 

 

 

 

Aerospace & Electronics

$

239.1

 

 

$

207.2

 

 

$

695.9

 

 

$

576.5

 

Process Flow Technologies

 

309.2

 

 

 

266.7

 

 

 

891.2

 

 

 

801.3

 

Engineered Materials

 

48.9

 

 

 

56.2

 

 

 

156.6

 

 

 

175.7

 

Total net sales

$

597.2

 

 

$

530.1

 

 

$

1,743.7

 

 

$

1,553.5

 

 

 

 

 

 

 

 

 

Operating profit:

 

 

 

 

 

 

 

Aerospace & Electronics

$

54.9

 

 

$

40.2

 

 

$

155.9

 

 

$

116.1

 

Process Flow Technologies

 

65.5

 

 

 

51.2

 

 

 

181.9

 

 

 

165.1

 

Engineered Materials

 

6.2

 

 

 

7.7

 

 

 

21.6

 

 

 

28.9

 

Corporate

 

(21.4

)

 

 

(22.8

)

 

 

(68.2

)

 

 

(93.2

)

Total operating profit

$

105.2

 

 

$

76.3

 

 

$

291.2

 

 

$

216.9

 

 

 

 

 

 

 

 

 

Interest income

$

1.5

 

 

$

1.5

 

 

$

4.0

 

 

$

3.2

 

Interest expense

 

(7.3

)

 

 

(4.8

)

 

 

(21.9

)

 

 

(16.7

)

Miscellaneous income (expense), net

 

0.7

 

 

 

1.3

 

 

 

0.5

 

 

 

(0.5

)

Income from continuing operations before income taxes

 

100.1

 

 

 

74.3

 

 

 

273.8

 

 

 

202.9

 

Provision for income taxes

 

22.8

 

 

 

19.1

 

 

 

60.1

 

 

 

48.5

 

Net income from continuing operations attributable to common shareholders

 

77.3

 

 

 

55.2

 

 

 

213.7

 

 

 

154.4

 

Income from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

52.1

 

Net income attributable to common shareholders

$

77.3

 

 

$

55.2

 

 

$

213.7

 

 

$

206.5

 

 

 

 

 

 

 

 

 

Earnings per diluted share from continuing operations

$

1.33

 

 

$

0.96

 

 

$

3.67

 

 

$

2.69

 

Earnings per diluted share from discontinued operations

 

 

 

 

 

 

 

 

 

 

0.91

 

Earnings per diluted share

$

1.33

 

 

$

0.96

 

 

$

3.67

 

 

$

3.60

 

 

 

 

 

 

 

 

 

Average diluted shares outstanding

 

58.3

 

 

 

57.5

 

 

 

58.2

 

 

 

57.4

 

Average basic shares outstanding

 

57.2

 

 

 

56.8

 

 

 

57.1

 

 

 

56.7

 

 

 

 

 

 

 

 

 

Supplemental data:

 

 

 

 

 

 

 

Cost of sales

$

359.2

 

 

$

326.9

 

 

$

1,061.3

 

 

$

942.3

 

Selling, general & administrative

 

132.8

 

 

 

126.9

 

 

 

391.2

 

 

 

394.3

 

Transaction related expenses (a)

 

3.6

 

 

 

4.3

 

 

 

16.3

 

 

 

36.5

 

Repositioning related charges, net (a)

 

0.3

 

 

 

0.1

 

 

 

0.8

 

 

 

2.1

 

Depreciation and amortization (a)

 

13.9

 

 

 

9.3

 

 

 

40.6

 

 

 

28.3

 

Stock-based compensation expense (a)

 

5.2

 

 

 

7.9

 

 

 

18.7

 

 

 

21.9

 

 

 

 

 

 

 

 

 

(a) Amounts included within Cost of sales and/or Selling, general & administrative costs.

CRANE COMPANY

Condensed Balance Sheets

(unaudited, in millions)

 

 

 

September 30,
2024

 

December 31,
2023

 

 

 

 

 

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

258.2

 

$

329.6

Accounts receivable, net

 

 

396.1

 

 

306.4

Inventories, net

 

 

398.1

 

 

353.1

Other current assets

 

 

192.4

 

 

101.7

Total current assets

 

 

1,244.8

 

 

1,090.8

 

 

 

 

 

Property, plant and equipment, net

 

 

277.0

 

 

270.5

Other assets

 

 

302.3

 

 

224.6

Goodwill

 

 

827.8

 

 

747.7

Total assets

 

$

2,651.9

 

$

2,333.6

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities

 

 

 

 

Short-term borrowings

 

$

85.0

 

$

Accounts payable

 

 

169.6

 

 

179.1

Accrued liabilities

 

 

313.4

 

 

273.7

Income taxes

 

 

4.1

 

 

14.3

Total current liabilities

 

 

572.1

 

 

467.1

 

 

 

 

 

Long-term debt

 

 

246.9

 

 

248.5

Long-term deferred tax liability

 

 

51.8

 

 

37.1

Other liabilities

 

 

204.2

 

 

220.6

Total liabilities

 

 

1,075.0

 

 

973.3

Total equity

 

 

1,576.9

 

 

1,360.3

Total liabilities and equity

 

$

2,651.9

 

$

2,333.6

CRANE COMPANY

Condensed Statements of Cash Flows

(unaudited, in millions)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2024

 

2023

 

2024

 

2023

Operating activities:

 

 

 

 

 

 

 

Net income attributable to common shareholders

$

77.3

 

 

$

55.2

 

 

$

213.7

 

 

$

206.5

 

Less: Income from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

52.1

 

Net income from continuing operations attributable to common shareholders

 

77.3

 

 

 

55.2

 

 

 

213.7

 

 

 

154.4

 

Depreciation and amortization

 

13.9

 

 

 

9.3

 

 

 

40.6

 

 

 

28.3

 

Stock-based compensation expense

 

5.2

 

 

 

7.9

 

 

 

18.7

 

 

 

21.9

 

Defined benefit plans and postretirement cost

 

0.9

 

 

 

2.2

 

 

 

2.8

 

 

 

7.0

 

Deferred income taxes

 

 

 

 

6.2

 

 

 

 

 

 

2.5

 

Cash (used for) provided by operating working capital

 

(5.1

)

 

 

17.9

 

 

 

(191.5

)

 

 

(165.4

)

Defined benefit plans and postretirement contributions

 

(10.6

)

 

 

(10.4

)

 

 

(16.6

)

 

 

(16.1

)

Environmental payments, net of reimbursements

 

(0.7

)

 

 

(1.1

)

 

 

(3.5

)

 

 

(3.0

)

Other

 

0.8

 

 

 

(0.3

)

 

 

(0.4

)

 

 

4.3

 

Total provided by operating activities from continuing operations

 

81.7

 

 

 

86.9

 

 

 

63.8

 

 

 

33.9

 

Investing activities:

 

 

 

 

 

 

 

Payment for acquisitions - net of cash acquired and working capital adjustments

 

4.6

 

 

 

 

 

 

(161.7

)

 

 

 

Capital expenditures

 

(9.0

)

 

 

(9.2

)

 

 

(25.5

)

 

 

(29.7

)

Other investing activities

 

(0.1

)

 

 

0.9

 

 

 

5.6

 

 

 

0.6

 

Total used for investing activities from continuing operations

 

(4.5

)

 

 

(8.3

)

 

 

(181.6

)

 

 

(29.1

)

Financing activities:

 

 

 

 

 

 

 

Dividends paid

 

(11.7

)

 

 

(10.2

)

 

 

(35.1

)

 

 

(47.0

)

Net proceeds (payments) related to employee stock plans

 

1.6

 

 

 

2.0

 

 

 

(3.5

)

 

 

15.7

 

Debt issuance costs

 

 

 

 

 

 

 

 

 

 

(7.5

)

Proceeds from long-term debt

 

 

 

 

 

 

 

190.0

 

 

 

300.0

 

Proceeds from term facility of discontinued operations

 

 

 

 

 

 

 

 

 

 

350.0

 

Repayments of long-term debt

 

(45.0

)

 

 

(11.9

)

 

 

(106.9

)

 

 

(448.8

)

Distribution of Crane NXT, Co.

 

 

 

 

 

 

 

 

 

 

(578.1

)

Total (used for) provided by financing activities from continuing and discontinued operations

 

(55.1

)

 

 

(20.1

)

 

 

44.5

 

 

 

(415.7

)

Discontinued operations:

 

 

 

 

 

 

 

Total provided by operating activities

 

 

 

 

 

 

 

 

 

 

34.6

 

Total used for investing activities

 

 

 

 

 

 

 

 

 

 

(4.1

)

Increase in cash and cash equivalents from discontinued operations

 

 

 

 

 

 

 

 

 

 

30.5

 

Effect of exchange rate on cash and cash equivalents

 

6.8

 

 

 

(3.6

)

 

 

1.9

 

 

 

(3.4

)

Increase (decrease) in cash and cash equivalents

 

28.9

 

 

 

54.9

 

 

 

(71.4

)

 

 

(383.8

)

Cash and cash equivalents at beginning of period (a)

 

229.3

 

 

 

218.9

 

 

 

329.6

 

 

 

657.6

 

Cash and cash equivalents at end of period

$

258.2

 

 

$

273.8

 

 

$

258.2

 

 

$

273.8

 

(a) 2023 Includes cash and cash equivalents of discontinued operations.

CRANE COMPANY

Order Backlog

(unaudited, in millions)

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

 

2024

 

2024

 

2024

 

2023

 

2023

Aerospace & Electronics (a)

 

$

833.3

 

$

814.9

 

$

791.8

 

$

700.9

 

$

677.9

Process Flow Technologies(b) (c)

 

 

392.0

 

 

399.9

 

 

393.3

 

 

379.0

 

 

352.9

Engineered Materials

 

 

12.3

 

 

11.0

 

 

12.8

 

 

11.3

 

 

14.6

Total backlog

 

$

1,237.6

 

$

1,225.8

 

$

1,197.9

 

$

1,091.2

 

$

1,045.4

(a) Includes $59.1 million, $62.3 million and $53.5 million of backlog as of September 30, 2024, June 30, 2024 and March 31, 2024, respectively, pertaining to the Vian acquisition.

(b) Includes $12.8 million, $11.6 million of backlog as of September 30,2024 and June 30, 2024, respectively, pertaining to the CryoWorks acquisition.

(c) Includes $6.4 million, $6.4 million, $8.3 million and $11.5 million of backlog as of September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively, pertaining to the Baum acquisition.

CRANE COMPANY

Non-GAAP Financial Measures

(unaudited, in millions, except per share data)

 

 

 

Three Months Ended September 30,

 

 

 

 

2024

 

2023

 

% Change

 

 

$

 

Per Share

 

$

 

Per Share

 

(on $)

Net sales (GAAP)

 

$

597.2

 

 

 

 

$

530.1

 

 

 

 

12.7

%

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Profit and Adjusted Operating Profit Margin

 

 

 

 

 

 

 

 

 

 

Operating profit (GAAP)

 

$

105.2

 

 

 

 

$

76.3

 

 

 

 

37.9

%

Operating profit margin (GAAP)

 

 

17.6

%

 

 

 

 

14.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special items impacting operating profit:

 

 

 

 

 

 

 

 

 

 

Transaction related expenses(a)(b)

 

 

3.6

 

 

 

 

 

4.3

 

 

 

 

 

Repositioning related charges, net

 

 

0.3

 

 

 

 

 

0.1

 

 

 

 

 

Adjusted operating profit (Non-GAAP)

 

$

109.1

 

 

 

 

$

80.7

 

 

 

 

35.2

%

Adjusted operating profit margin (Non-GAAP)

 

 

18.3

%

 

 

 

 

15.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income and Adjusted Net Income per Share

 

 

 

 

 

 

 

 

 

 

Net income from continuing operations attributable to common shareholders (GAAP)

 

$

77.3

 

 

$

1.33

 

 

$

55.2

 

 

$

0.96

 

 

40.0

%

Transaction related expenses(a)(b)

 

 

3.7

 

 

 

0.06

 

 

 

4.3

 

 

 

0.08

 

 

 

Repositioning related charges, net

 

 

0.3

 

 

 

0.01

 

 

 

0.1

 

 

 

 

 

 

Impact of pension non-service costs

 

 

0.1

 

 

 

 

 

 

(0.1

)

 

 

 

 

 

Tax effect of the Non-GAAP adjustments

 

 

(1.1

)

 

 

(0.02

)

 

 

(0.5

)

 

 

(0.01

)

 

 

Adjusted net income (Non-GAAP)

 

$

80.3

 

 

$

1.38

 

 

$

59.0

 

 

$

1.03

 

 

36.1

%

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA and Adjusted EBITDA Margin

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

77.3

 

 

 

 

$

55.2

 

 

 

 

40.0

%

Net income margin (GAAP)

 

 

12.9

%

 

 

 

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to net income:

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

5.8

 

 

 

 

 

3.3

 

 

 

 

 

Income tax expense

 

 

22.8

 

 

 

 

 

19.1

 

 

 

 

 

Depreciation

 

 

9.2

 

 

 

 

 

8.1

 

 

 

 

 

Amortization

 

 

4.7

 

 

 

 

 

1.2

 

 

 

 

 

Miscellaneous income, net

 

 

(0.7

)

 

 

 

 

(1.3

)

 

 

 

 

Repositioning related charges, net

 

 

0.3

 

 

 

 

 

0.1

 

 

 

 

 

Transaction related expenses(a)(b)

 

 

1.7

 

 

 

 

 

4.3

 

 

 

 

 

Adjusted EBITDA (Non-GAAP)

 

$

121.1

 

 

 

 

$

90.0

 

 

 

 

34.6

%

Adjusted EBITDA Margin (Non-GAAP)

 

 

20.3

%

 

 

 

 

17.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) 2024 transaction-related expenses primarily associated with the Vian and CryoWorks acquisitions.

(b) 2023 transaction-related expenses primarily associated with the separation and the Baum acquisition.

Totals may not sum due to rounding

CRANE COMPANY

Non-GAAP Financial Measures

(in millions, except per share data)

 

 

 

Nine Months Ended September 30,

 

 

 

 

2024

 

2023

 

% Change

 

 

$

 

Per Share

 

$

 

Per Share

 

(on $)

Net sales (GAAP)

 

$

1,743.7

 

 

 

 

$

1,553.5

 

 

 

 

12.2

%

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Profit and Adjusted Operating Profit Margin

 

 

 

 

 

 

 

 

 

 

Operating profit (GAAP)

 

$

291.2

 

 

 

 

$

216.9

 

 

 

 

34.3

%

Operating profit margin (GAAP)

 

 

16.7

%

 

 

 

 

14.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special items impacting operating profit:

 

 

 

 

 

 

 

 

 

 

Transaction related expenses(a)(b)

 

 

16.3

 

 

 

 

 

36.5

 

 

 

 

 

Repositioning related charges, net

 

 

0.8

 

 

 

 

 

2.1

 

 

 

 

 

Adjusted operating profit (Non-GAAP)

 

$

308.3

 

 

 

 

$

255.5

 

 

 

 

20.7

%

Adjusted operating profit margin (Non-GAAP)

 

 

17.7

%

 

 

 

 

16.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income and Adjusted Net Income per Share

 

 

 

 

 

 

 

 

 

 

Net income from continuing operations attributable to common shareholders (GAAP)

 

$

213.7

 

 

$

3.67

 

 

$

154.4

 

 

$

2.69

 

 

38.4

%

 

 

 

 

 

 

 

 

 

 

 

Transaction related expenses(a)(b)

 

 

15.8

 

 

 

0.27

 

 

 

36.5

 

 

 

0.63

 

 

 

Repositioning related charges, net

 

 

0.8

 

 

 

0.01

 

 

 

2.1

 

 

 

0.04

 

 

 

Impact of pension non-service costs

 

 

0.4

 

 

 

0.01

 

 

 

2.8

 

 

 

0.05

 

 

 

Interest expense

 

 

 

 

 

 

 

 

5.9

 

 

 

0.10

 

 

 

Tax effect of the Non-GAAP adjustments

 

 

(3.8

)

 

 

(0.06

)

 

 

(7.1

)

 

 

(0.12

)

 

 

Adjusted net income (Non-GAAP)

 

$

226.9

 

 

$

3.90

 

 

$

194.6

 

 

$

3.39

 

 

16.6

%

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA and Adjusted EBITDA Margin

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

213.7

 

 

 

 

$

154.4

 

 

 

 

38.4

%

Net income margin (GAAP)

 

 

12.3

%

 

 

 

 

9.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to net income:

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

17.9

 

 

 

 

 

13.5

 

 

 

 

 

Income tax expense

 

 

60.1

 

 

 

 

 

48.5

 

 

 

 

 

Depreciation

 

 

27.7

 

 

 

 

 

24.1

 

 

 

 

 

Amortization

 

 

12.9

 

 

 

 

 

4.2

 

 

 

 

 

Miscellaneous (income) expense, net

 

 

(0.5

)

 

 

 

 

0.5

 

 

 

 

 

Repositioning related charges, net

 

 

0.8

 

 

 

 

 

2.1

 

 

 

 

 

Transaction related expenses(a)(b)

 

 

11.0

 

 

 

 

 

36.5

 

 

 

 

 

Adjusted EBITDA (Non-GAAP)

 

$

343.6

 

 

 

 

$

283.8

 

 

 

 

21.1

%

Adjusted EBITDA Margin (Non-GAAP)

 

 

19.7

%

 

 

 

 

18.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) 2024 transaction-related expenses are primarily associated with the Vian and CryoWorks acquisitions.

(b) 2023 transaction-related expenses are primarily associated with the separation and the Baum acquisition.

Totals may not sum due to rounding

CRANE COMPANY

Non-GAAP Financial Measures by Segment

(unaudited, in millions)

 

Three Months Ended September 30, 2024

Aerospace & Electronics

 

Process Flow Technologies

 

Engineered Materials

 

Corporate

 

Total Company

Net sales

$

239.1

 

 

$

309.2

 

 

$

48.9

 

 

$

 

 

$

597.2

 

 

 

 

 

 

 

 

 

 

 

Operating profit (GAAP)

$

54.9

 

 

$

65.5

 

 

$

6.2

 

 

$

(21.4

)

 

$

105.2

 

Operating profit margin (GAAP)

 

23.0

%

 

 

21.2

%

 

 

12.7

%

 

 

 

 

17.6

%

 

 

 

 

 

 

 

 

 

 

Special items impacting operating profit:

 

 

 

 

 

 

 

 

 

Transaction related expenses(a)

 

1.4

 

 

 

1.6

 

 

 

 

 

 

0.6

 

 

 

3.6

 

Repositioning related charges, net

 

 

 

 

0.2

 

 

 

0.1

 

 

 

 

 

 

0.3

 

Adjusted operating profit (Non-GAAP)

$

56.3

 

 

$

67.3

 

 

$

6.3

 

 

$

(20.8

)

 

$

109.1

 

Adjusted operating profit margin (Non-GAAP)

 

23.5

%

 

 

21.8

%

 

 

12.9

%

 

 

 

 

18.3

%

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

Net sales

$

207.2

 

 

$

266.7

 

 

$

56.2

 

 

$

 

 

$

530.1

 

 

 

 

 

 

 

 

 

 

 

Operating profit (GAAP)

$

40.2

 

 

$

51.2

 

 

$

7.7

 

 

$

(22.8

)

 

$

76.3

 

Operating profit margin (GAAP)

 

19.4

%

 

 

19.2

%

 

 

13.7

%

 

 

 

 

14.4

%

 

 

 

 

 

 

 

 

 

 

Special items impacting operating profit:

 

 

 

 

 

 

 

 

 

Transaction related expenses(b)

 

 

 

 

 

 

 

 

 

 

4.3

 

 

 

4.3

 

Repositioning related charges, net

 

 

 

 

0.1

 

 

 

 

 

 

 

 

 

0.1

 

Adjusted operating profit (Non-GAAP)

$

40.2

 

 

$

51.3

 

 

$

7.7

 

 

$

(18.5

)

 

$

80.7

 

Adjusted operating profit margin (Non-GAAP)

 

19.4

%

 

 

19.2

%

 

 

13.7

%

 

 

 

 

15.2

%

(a) 2024 transaction-related expenses are primarily associated with the Vian and CryoWorks acquisitions.

(b) 2023 transaction-related expenses are primarily associated with the separation and the Baum acquisition.

Totals may not sum due to rounding

CRANE COMPANY

Non-GAAP Financial Measures by Segment

(in millions)

 

Nine Months Ended September 30, 2024

Aerospace & Electronics

 

Process Flow Technologies

 

Engineered Materials

 

Corporate

 

Total Company

Net sales

$

695.9

 

 

$

891.2

 

 

$

156.6

 

 

$

 

 

$

1,743.7

 

 

 

 

 

 

 

 

 

 

 

Operating profit (GAAP)

$

155.9

 

 

$

181.9

 

 

$

21.6

 

 

$

(68.2

)

 

$

291.2

 

Operating profit margin (GAAP)

 

22.4

%

 

 

20.4

%

 

 

13.8

%

 

 

 

 

16.7

%

 

 

 

 

 

 

 

 

 

 

Special items impacting operating profit:

 

 

 

 

 

 

 

 

 

Transaction related expenses(a)

 

6.0

 

 

 

4.8

 

 

 

 

 

 

5.5

 

 

 

16.3

 

Repositioning related charges , net

 

 

 

 

0.7

 

 

 

0.1

 

 

 

 

 

 

0.8

 

Adjusted operating profit (Non-GAAP)

$

161.9

 

 

$

187.4

 

 

$

21.7

 

 

$

(62.7

)

 

$

308.3

 

Adjusted operating profit margin (Non-GAAP)

 

23.3

%

 

 

21.0

%

 

 

13.9

%

 

 

 

 

17.7

%

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

Net sales

$

576.5

 

 

$

801.3

 

 

$

175.7

 

 

$

 

 

$

1,553.5

 

 

 

 

 

 

 

 

 

 

 

Operating profit (GAAP)

$

116.1

 

 

$

165.1

 

 

$

28.9

 

 

$

(93.2

)

 

$

216.9

 

Operating profit margin (GAAP)

 

20.1

%

 

 

20.6

%

 

 

16.4

%

 

 

 

 

14.0

%

 

 

 

 

 

 

 

 

 

 

Special items impacting operating profit:

 

 

 

 

 

 

 

 

 

Transaction related expenses(b)

 

 

 

 

 

 

 

 

 

 

36.5

 

 

 

36.5

 

Repositioning related charges, net

 

 

 

 

2.4

 

 

 

(0.3

)

 

 

 

 

 

2.1

 

Adjusted operating profit (Non-GAAP)

$

116.1

 

 

$

167.5

 

 

$

28.6

 

 

$

(56.7

)

 

$

255.5

 

Adjusted operating profit margin (Non-GAAP)

 

20.1

%

 

 

20.9

%

 

 

16.3

%

 

 

 

 

16.4

%

(a) 2024 transaction-related expenses are primarily associated with the Vian and CryoWorks acquisitions.

(b) 2023 transaction-related expenses are primarily associated with the separation and the Baum acquisition.

Totals may not sum due to rounding

CRANE COMPANY

Adjusted Free Cash Flow

(unaudited, in millions, except per share data)

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

Cash Flow Items

 

2024

 

2023

 

2024

 

2023

Cash provided by operating activities from continuing operations

 

$

81.7

 

 

$

86.9

 

 

$

63.8

 

 

$

33.9

 

Less: Capital expenditures

 

 

(9.0

)

 

 

(9.2

)

 

 

(25.5

)

 

 

(29.7

)

Free cash flow

 

$

72.7

 

 

$

77.7

 

 

$

38.3

 

 

$

4.2

 

Adjustments:

 

 

 

 

 

 

 

 

Transaction-related expenses

 

$

2.4

 

 

$

4.3

 

 

$

7.5

 

 

$

36.5

 

Adjusted free cash flow

 

$

75.1

 

 

$

82.0

 

 

$

45.8

 

 

$

40.7

 

Crane Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release includes certain non-GAAP financial measures, including adjusted operating profit, adjusted operating profit margin, adjusted net income, adjusted EPS, adjusted EBITDA, Free Cash Flow and Adjusted Free Cash Flow, that are not prepared in accordance with GAAP. These non-GAAP measures are an addition, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to operating income, net income or any other performance measures derived in accordance with GAAP. We believe that these non-GAAP measures of financial results (including on a forward-looking or projected basis) provide useful supplemental information to investors about Crane Company. Our management uses certain forward looking non-GAAP measures to evaluate projected financial and operating results. However, there are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore our non-GAAP measures may not be directly comparable to similarly titled measures of other companies.

Reconciliations of certain forward-looking and projected non-GAAP measures for Crane Company, including Adjusted EPS, and Adjusted segment margin to the closest corresponding GAAP measure are not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, which could have a potentially significant impact on our future GAAP results. For Crane Company, these forward looking and projected non-GAAP measures are calculated as follows:

  • "Adjusted operating margin" is calculated as adjusted operating profit divided by sales. Adjusted operating profit is calculated as operating profit before Special Items which include transaction related expenses such as professional fees, and incremental costs related to the separation; and repositioning related charges. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
  • "Adjusted EPS" is calculated as adjusted net income divided by diluted shares. Adjusted net income is calculated as net income adjusted for Special Items which include transaction related expenses such as professional fees, and incremental costs related to the separation; repositioning related charges; and, the impact of pension non-service costs. We believe that non-GAAP financial measures adjusted for these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

We believe that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations:

  • "Adjusted Operating Profit" and "Adjusted Operating Margin" add back to Operating Profit items which are outside of our core performance, some of which may or may not be non-recurring, and which we believe may complicate the interpretation of the Company’s underlying earnings and operational performance. These items include income and expense such as: transaction related expenses and repositioning related (gains) charges. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
  • "Adjusted Net Income" and "Adjusted EPS" exclude items which are outside of our core performance, some of which may or may not be non-recurring, and which we believe may complicate the presentation of the Company’s underlying earnings and operational performance. These measures include income and expense items that impacted Operating Profit such as: transaction related expenses and repositioning related (gains) charges. Additionally, these non-GAAP financial measures exclude income and expense items that impacted Net Income and Earnings per Diluted Share such as the impact of pension non-service costs. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.
  • "Adjusted EBITDA" adds back to net income: net interest expense, income tax expense, depreciation and amortization, miscellaneous (income) expense, net, and Special Items including transaction related expenses. "Adjusted EBITDA Margin" is calculated as adjusted EBITDA divided by net sales. We believe that adjusted EBITDA and adjusted EBITDA margin provide investors with an alternative metric that may be a meaningful indicator of our performance and provides useful information to investors regarding our financial conditions and results of operations that is complementary to GAAP metrics.
  • “Free Cash Flow” and “Adjusted Free Cash Flow” provide supplemental information to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities. The measure of free cash flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on the Company’s long-term debt. Free Cash Flow is calculated as cash provided by operating activities less capital spending. Adjusted Free Cash Flow is calculated as Free Cash Flow adjusted for certain cash items which we believe may complicate the interpretation of the Company’s underlying free cash flow performance such as certain transaction related cash flow items related to the separation transaction. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future cash flows that are complementary to GAAP metrics.

Jason D. Feldman

Senior Vice President, Investor Relations, Treasury & Tax

Allison Poliniak-Cusic

Vice President, Investor Relations

IR@craneco.com

www.craneco.com

Source: Crane Company

FAQ

What was Crane's (CR) Q3 2024 earnings per share?

Crane reported Q3 2024 earnings per share (EPS) of $1.33, up 39% year-over-year, and adjusted EPS of $1.38, up 34%.

How much did Crane's (CR) sales grow in Q3 2024?

Crane's sales grew 13% to $597 million in Q3 2024, driven by 6% core sales growth and 6% contribution from acquisitions.

What is Crane's (CR) updated EPS guidance for full-year 2024?

Crane raised and narrowed its full-year 2024 adjusted EPS guidance to $5.05-$5.20, up from the previous guidance of $4.95-$5.15.

How did Hurricane Helene impact Crane's (CR) operations in Q3 2024?

Hurricane Helene affected Crane's Process Flow Technologies facility in Marion, North Carolina, with recovery actions expected to be completed in Q4 2024.

Crane Company

NYSE:CR

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10.03B
48.89M
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74.08%
1.08%
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