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Crane Company Reports Strong Q4 2025 Performance, Initiates 2026 Guidance, Completes Two Acquisitions, and Announces Leadership Transition Plan
Businesswire· 2026-01-26 21:15
Core Insights - Crane Company reported a 21% increase in adjusted EPS and 5.4% growth in core sales for Q4 2025, indicating strong operational performance and strategic focus on technical excellence [2][10]. - The company has successfully completed several strategic acquisitions, including Druck, Panametrics, Reuter-Stokes, and optek-Danulat, enhancing its technology capabilities and market position [3][5]. - Crane's guidance for 2026 anticipates total sales growth in the low- to mid-20% range, with adjusted EPS expected to be between $6.55 and $6.75, reflecting a 10% year-over-year increase [5][19]. Financial Performance - Q4 2025 GAAP EPS from continuing operations was $1.39, up from $1.20 in Q4 2024, while adjusted EPS rose to $1.53 from $1.26 [9]. - Total net sales for Q4 2025 reached $581.0 million, a 6.8% increase compared to $544.1 million in Q4 2024, driven by core sales growth and contributions from acquisitions [11][38]. - Operating profit for Q4 2025 was $101.8 million, an 18.1% increase from the previous year, with adjusted operating profit rising to $111.7 million, a 15.9% increase [10][11]. Segment Performance - The Aerospace & Advanced Technologies segment reported net sales of $271.6 million, a 14.7% increase year-over-year, with an operating profit margin of 22.9% [16]. - The Process Flow Technologies segment saw net sales of $309.4 million, a modest 0.7% increase, with a core sales decline of 1.5% offset by acquisitions and foreign exchange benefits [17][18]. Cash Flow and Financial Metrics - In Q4 2025, cash generated from operating activities was $205.8 million, with free cash flow of $196.0 million, indicating strong cash generation capabilities [12]. - As of December 31, 2025, the company had a cash balance of $506.5 million and total debt of $1,148.2 million, reflecting significant capital deployment for acquisitions [12][14]. Leadership Transition - Crane announced a planned CEO succession, with Alex Alcala set to become President & CEO effective April 27, 2026, succeeding Max Mitchell, who will remain as Executive Chairman [6][8].