Crane pany(CR)2025-04-29 18:57Financial Data and Key Metrics Changes - Adjusted EPS for Q1 2025 was 249 million, a 10% increase, with a record backlog of 309 million, up 9%, with core sales growth of 5% and a 5% contribution from recent acquisitions [30][31] Market Data and Key Metrics Changes - The Aerospace market remains strong, with Boeing ramping up production and solid procurement spending in defense [16][30] - Core sales growth for Aerospace and Electronics is anticipated to be mid to high single digits for the year, leveraging a 35% to 40% growth rate [17][30] - Process Flow Technologies is positioned to outgrow markets across cycles, focusing on higher growth end markets such as chemicals and pharmaceuticals [20][21] Company Strategy and Development Direction - The company aims to continue driving above-market growth through both organic means and acquisitions, with a strong balance sheet and 1.5 billion in M&A capacity [10][23] - The strategic focus includes investing in technology and new product development while maintaining operational excellence [21][27] - The company is actively pursuing new business opportunities and has a robust pipeline of potential acquisitions across various segments [24][108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in emerging stronger from current economic challenges, reaffirming the full-year adjusted EPS outlook of 5.3 to 5.6 [6][27] - The company is prepared to adapt to changes in the economic environment, including inflationary pressures and supply chain dynamics [6][15] - Management highlighted the importance of maintaining a flexible and accountable operational structure to navigate uncertainties [15][27] Other Important Information - The company has not seen a slowdown in M&A activity despite macroeconomic challenges, indicating a strong pipeline of potential deals [24][87] - Recent leadership conferences focused on reinforcing best practices and driving growth initiatives across the organization [25][26] - The company expects to manage through potential demand fluctuations without losing sight of long-term goals [21][27] Q&A Session Summary Question: Can you clarify the updated guidance and the contribution of price to sales? - Management expects about 3% overall price contribution, more heavily weighted to Process Flow Technologies [38] Question: Are there any notable items in the defense package that could drive growth? - Management sees broad exposure across defense platforms and anticipates strong demand in munitions and aircraft [44][45] Question: What is the growth split between volume and price in Aerospace and Electronics? - The growth split was roughly 50/50 between volume and price [51] Question: Are there any concerns about supply chain disruptions affecting project deliveries? - Management does not foresee significant disruptions, although some lead time extensions may occur [78] Question: How is the company managing tariff impacts on costs? - The estimated tariff impact is around 60 million for the year, which the company expects to mitigate substantially [95][96] Question: What is the outlook for the chemical market within Process Flow Technologies? - The company anticipates some project activity in the Americas to shift to the right, with softening demand in Europe [98]