Crane’s Q4 Earnings Call: Our Top 5 Analyst Questions

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Crane’s Q4 results topped Wall Street’s revenue and non-GAAP profit expectations. Management attributed the quarter’s performance to strength in the Aerospace & Advanced Technologies segment and ongoing process flow execution. CEO Max Mitchell noted, “Adjusted EPS of $1.53 was up 21% over the prior year, driven by an impressive 5.4% core sales growth, reflecting broad-based strength at Aerospace & Advanced Technologies, and continued strong execution of process flow technologies.” Recent acquisitions, including Druck, Panametrics, and Reuter-Stokes, were highlighted as key contributors to broadening Crane’s capabilities, but management acknowledged integration costs and margin dilution near term.

Is now the time to buy CR? Find out in our full research report (it’s free for active Edge members).

Crane (CR) Q4 CY2025 Highlights:

  • Revenue: $581 million vs analyst estimates of $570 million (6.8% year-on-year growth, 1.9% beat)
  • Adjusted EPS: $1.53 vs analyst estimates of $1.41 (8.2% beat)
  • Adjusted EBITDA: $124 million vs analyst estimates of $120.3 million (21.3% margin, 3.1% beat)
  • Adjusted EPS guidance for the upcoming financial year 2026 is $6.65 at the midpoint, missing analyst estimates by 0.6%
  • Operating Margin: 17.5%, up from 15.8% in the same quarter last year
  • Organic Revenue rose 5.4% year on year (beat)
  • Market Capitalization: $10.52 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Crane’s Q4 Earnings Call

  • Scott Deuschle (Deutsche Bank) asked about pricing opportunities for Druck and long-term agreements up for renewal. Incoming CEO Alejandro Alcala responded that value pricing improvements are expected, with contract renewals allowing for gradual price increases and no major obstacles anticipated.
  • Greg Dahlberg (Wolfe Research) inquired about the strategic intent behind renaming the aerospace segment and adjacent technology focus. Alcala explained that the new segment structure enables expansion into related high-growth industrial applications, using Druck as an example of this broader scope.
  • Jeffrey Sprague (Vertical Research) questioned the balance between integration costs and cost savings from acquisitions. Alcala indicated initial integration costs will be offset by long-term cost reductions, particularly as businesses transition to leaner, stand-alone structures.
  • Matt Summerville (D.A. Davidson) probed expectations for Aerospace aftermarket volumes and potential impacts from government shutdowns. Alcala projected continued momentum in both commercial and military aftermarket sales, with only minor program delays factored into guidance.
  • Amit Mehrotra (UBS) asked about increased exposure to nuclear power and associated growth prospects. Alcala outlined expanded nuclear capabilities through Reuter-Stokes, citing opportunities in plant restarts, new construction, small modular reactors, and license extensions as supportive industry trends.

Catalysts in Upcoming Quarters

Key business catalysts in the coming quarters include (1) the pace and effectiveness of integration for Druck, Panametrics, Reuter-Stokes, and optek-Danulat, (2) sustained momentum in aerospace OEM and aftermarket demand, and (3) stabilization or improvement within chemical end markets for Process Flow Technologies. Execution on synergy realization and cost control will also be essential indicators of success.

Crane currently trades at $182.41, down from $209.77 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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