Key Highlights

  • Crane Company reported third quarter net sales of USD 754.6 million, up 28.1% year over year and above consensus estimates.
  • Adjusted earnings per share reached a record USD 2.05, up 23% from a year earlier, while GAAP EPS was USD 1.66.
  • Total company core backlog increased 9% year over year, with gains in both the Aerospace and Process Flow segments.
  • The company raised and narrowed its full year adjusted EPS guidance to a range of USD 7.23 to USD 7.38.

Record Adjusted EPS on Broad Based Segment Growth

Crane Company (NYSE:CR) reported third quarter net sales of USD 754.6 million, up 28.1% from a year earlier, with core sales growth of 7.7% and a 21.1% contribution from acquisitions, partially offset by a 0.4% foreign exchange headwind. Adjusted earnings per share from continuing operations reached a record USD 2.05, up 23% from a year earlier, while GAAP earnings per share were USD 1.66, up 6%.

The Aerospace and Advanced Technologies segment posted core growth of 9.5%, while Process Flow Technologies delivered core growth of 6.2% and core order growth of 19.7%. Operating profit increased 18.8% to USD 140.6 million, while adjusted operating profit rose 35.8% to USD 169.9 million, with adjusted operating margin reaching a record 22.5%.

Backlog Strength and Portfolio Transformation

Total company core backlog increased 9% year over year, with both Aerospace and Advanced Technologies and Process Flow Technologies core backlog each rising by roughly that margin. The company also took steps to reshape its Process Flow Technologies portfolio, signing an agreement to divest its Building Services and Utilities business for GBP 230 million while separately agreeing to acquire the U.S. water and wastewater pump business of Trillium Flow Technologies.

The Trillium Flow Technologies acquisition is scheduled to close in the fourth quarter, with the Building Services and Utilities divestiture scheduled to close in early 2027. The company said both transactions are intended to concentrate its Process Flow Technologies portfolio around highly engineered products serving markets including pharmaceuticals, water and wastewater, power, cryogenics and nuclear.

Updated Guidance and Integration Considerations

The company raised and narrowed its full year adjusted EPS guidance to a range of USD 7.23 to USD 7.38, up from a prior range of USD 6.85 to USD 7.05, citing broad based outperformance across both segments and stronger than expected contributions from recent acquisitions. The company ended the quarter with a cash balance of USD 315.7 million and total debt of USD 928.5 million.

Continued core order growth in Process Flow Technologies, at nearly 20% this quarter, could support further backlog conversion, while integration of the pending Trillium acquisition and completion of the Building Services and Utilities divestiture remain near term execution items that could affect segment composition in coming quarters.

Portfolio Items to Track Next

Completion of the Trillium Flow Technologies acquisition, scheduled for the fourth quarter, the planned early 2027 close of the Building Services and Utilities divestiture, and further core backlog growth relative to this quarter's 9% increase are among the items the company has flagged for investors. The updated USD 7.23 to USD 7.38 full year adjusted EPS range is the reference point against which the fourth quarter is measured.