Crane Company Reports Strong Third Quarter 2025 Results; Raises Full-Year EPS Guidance
Crane Company (NYSE: CR) today announced financial results for the third quarter of 2025, reporting another quarter of solid growth across both operating segments. The company also raised and narrowed its full-year adjusted earnings per share (EPS) guidance range, citing continued operational momentum, strong demand in its Aerospace & Electronics business, and disciplined execution.
Max Mitchell, Crane’s Chairman, President, and Chief Executive Officer, stated, “We are proud to report another strong quarter, with adjusted EPS up 27% and core sales growth of 5.6%. This quarter’s earnings exceeded our expectations, underscoring the strength of our differentiated technology, commercial excellence, and operational discipline.”
Mitchell added that demand remains robust in the company’s Aerospace & Electronics segment, providing “strong visibility into 2026 and beyond,” while trends in the Process Flow Technologies segment remain stable. “We are encouraged by our 16.4% year-over-year core backlog growth,” he said, “and remain focused on converting our strong pipeline of opportunities and sustaining momentum through year-end.”
Crane also continues to make progress toward completing its pending acquisition of Precision Sensors & Instrumentation (PSI), which remains on track to close by year-end. “With our robust backlog, consistent execution, and solid year-to-date performance, we are confident in our ability to deliver on our commitments,” Mitchell said. The company raised its full-year adjusted EPS outlook to a range of $5.75–$5.95, up from the prior $5.50–$5.80.
Third Quarter 2025 Financial Highlights
Crane reported GAAP EPS from continuing operations of $1.56, compared to $1.25 in the same quarter last year. Adjusted EPS from continuing operations was $1.64, up from $1.29 in the third quarter of 2024 — a 27% increase.
Quarterly net sales rose 7.5% year over year to $589.2 million, driven by 5.6% core sales growth, a 0.9% contribution from the Technifab acquisition, and a 1.0% benefit from foreign exchange. Operating profit increased 19.6% to $118.4 million, while adjusted operating profit rose 18.8% to $122.1 million, reflecting continued strong pricing, productivity gains, and favorable cost control.
Operating margin improved 200 basis points to 20.1%, while adjusted operating margin also expanded by 200 basis points to 20.7%.
Cash Flow and Financial Position
Crane generated $130.2 million in cash from operating activities during the third quarter, compared to $13.4 million in capital expenditures. Free cash flow totaled $116.8 million, while adjusted free cash flow — excluding transaction-related cash outflows — was $118.9 million.
As of September 30, 2025, the company held $388.2 million in cash and had no debt outstanding, having prepaid its prior term loan during the quarter.
Rich Maue, Executive Vice President and Chief Financial Officer, highlighted Crane’s strong balance sheet and new financing arrangements: “We entered into a new credit agreement that provides a $900 million delayed draw term loan facility and a $900 million revolving credit facility, both maturing on September 30, 2030. This agreement secures financing for our PSI acquisition and provides ample flexibility for future M&A.”
Following the PSI acquisition, Crane expects a net debt to adjusted EBITDA ratio of approximately 1x, with the majority of the revolving facility available for additional strategic transactions.
Segment Results
Aerospace & Electronics
Sales in the Aerospace & Electronics segment reached $270.2 million, up 13.0% from $239.1 million a year earlier. Core sales increased 12.8%, and foreign exchange contributed a modest 0.2% benefit. Segment operating profit rose 23.3% to $67.7 million, while adjusted operating profit increased 20.2% to $67.7 million.
Operating margin expanded 210 basis points to 25.1%, driven by higher volumes, strong pricing, and productivity improvements. The segment’s backlog grew to $1.05 billion as of September 30, 2025, compared to $833.3 million a year earlier, reflecting robust demand and sustained order activity.
Process Flow Technologies
The Process Flow Technologies segment reported net sales of $319.0 million, up 3.2% from $309.2 million last year. Growth was supported by a 1.6% contribution from the Technifab acquisition and a 1.6% benefit from favorable foreign exchange. Core sales were flat.
Operating profit increased 8.1% to $70.8 million, while adjusted operating profit grew 6.2% to $71.5 million. The segment’s operating margin rose 100 basis points to 22.2%, and adjusted margin improved 60 basis points to 22.4%, supported by productivity gains, favorable product mix, and effective pricing.
Process Flow Technologies ended the quarter with an order backlog of $383.0 million, compared to $403.1 million at June 30, 2025, and $392.0 million a year earlier.
Updated 2025 Outlook
Crane raised and narrowed its full-year adjusted EPS guidance range to $5.75–$5.95, up from $5.50–$5.80 previously — representing a 20% increase at the midpoint compared to 2024.
Key assumptions in the updated guidance include:
- Total sales growth of approximately 7.5% (up from 6.5%)
- Core sales growth at the high end of the 4%–6% range
- Adjusted segment operating margin of 22.5%+
- Corporate costs of $85 million
- Net non-operating income of $7 million
- Adjusted tax rate of 23.0%
- Diluted shares outstanding of roughly 59 million
About Crane Company
Crane Company (NYSE: CR) is a diversified manufacturer of highly engineered components and systems for critical applications in the aerospace, defense, space, and industrial process markets. Headquartered in Stamford, Connecticut, Crane operates through two business segments — Aerospace & Electronics and Process Flow Technologies — serving customers worldwide with advanced technology and reliable performance.
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