Crane Company Reports Fourth Quarter 2024 Results, Initiates Full Year 2025 EPS Guidance, and Raises Annual Dividend by 12%

Fourth Quarter 2024 Highlights

• Earnings per diluted share (EPS) from continuing operations of $1.20, up 58%, and adjusted EPS from continuing operations of $1.26, also up 58%.
• Sales of $544 million, up 12% driven by 8% core sales growth.
• Core order growth up 8% and core backlog growth up 9%, driven primarily by ongoing strength at Aerospace & Electronics.
• Declaring first quarter 2025 regular dividend of $0.23 per share, and raising the annual dividend by 12% to $0.92 per share.

2025 Outlook

• Initiating our full year 2025 adjusted EPS outlook with a range of $5.30-$5.60 reflecting 12% growth at the midpoint compared to 2024 adjusted EPS.

Crane Company ((", Crane, ", NYSE:CR) today announced its financial results for the fourth quarter of 2024 and initiated its adjusted full-year 2025 EPS outlook. Following the completion of the Engineered Materials divestiture effective on January 1, 2025, results for the fourth quarter of 2024 and all prior periods have been recast with the Engineered Materials segment presented as discontinued operations.

Max Mitchell, Crane's Chairman, President and Chief Executive Officer, stated: "Crane Company had an exceptional year with both segments executing at a high level. As a result, we delivered 8% core sales growth with 28% adjusted EPS growth in 2024. Further, we continued to strengthen and focus our portfolio with the acquisitions of Vian, CryoWorks and Technifab, as well as with the divestiture of our Engineered Materials segment."

Mr. Mitchell concluded: "As we look to 2025, I remain excited about the momentum we continue to build at Crane and the performance we continue to drive within the businesses. Demand trends remain strong within Aerospace & Electronics and we continue to outperform in Process Flow Technologies even as industrial demand signals remain mixed giving us confidence as we start 2025. In setting our initial view for the year, the macro backdrop remains largely unchanged, and consistent with our customary convention, our initial 2025 adjusted EPS guidance of $5.30-$5.60 reflects what we have confidence in delivering, and reflects solid 12% adjusted EPS growth at the midpoint."

Fourth Quarter 2024 Results

Fourth quarter 2024 GAAP EPS from continuing operations of $1.20 compared to $0.76 in the fourth quarter of 2023. Fourth quarter 2024 adjusted EPS from continuing operations of $1.26 compared to $0.80 in the fourth quarter of 2023.

Fourth quarter sales increased 12%, with 8% core sales growth, a 4% contribution from acquisitions, and a slight contribution from favorable foreign exchange. Operating profit of $86 million increased 38% compared to last year, and adjusted operating profit of $96 million increased 38% compared to last year, in both cases primarily reflecting the impact from higher volumes, productivity, and net price.

Summary of Fourth Quarter 2024 Results

Full Year 2024 Results

Full year 2024 GAAP EPS from continuing operations of $4.60 compared to $3.06 in 2023. Full year 2024 adjusted EPS from continuing operations of $4.88 compared to $3.80 in 2023.

Sales in 2024 increased 14%, with 8% core sales growth, a 6% contribution from acquisitions, and a slight contribution from favorable foreign exchange. Operating profit of $356 million increased 42% compared to last year, and adjusted operating profit of $383 million increased 29% compared to last year, in both cases primarily reflecting the impact from higher volumes, net price and productivity.

Cash Flow, Financing Activities and Other Financial Metrics

During the fourth quarter of 2024, cash provided by operating activities from continuing operations was $202 million, capital expenditures were $14 million, and free cash flow (cash provided by operating activities less capital spending) was $188 million. Adjusted free cash flow was $193 million. For the full year, cash provided by operating activities was $258 million, capital expenditures were $37 million, and free cash flow was $221 million. Adjusted free cash flow from continuing operations was $234 million for the full year 2024. (Please see the attached non-GAAP Financial Measures tables.)

As of December 31, 2024, the Company's cash balance was $307 million with total debt of $247 million. Subsequent to the end of the fourth quarter, on January 2, 2025, the Company received net proceeds of $208 million related to the divestiture of Engineered Materials.

Rich Maue, Crane's Executive Vice President and Chief Financial Officer, added: "As we enter 2025, our balance sheet along with solid expected cash flow, position us well to invest in our organic growth initiatives and pursue strategic acquisitions to drive long-term value creation."

Fourth Quarter 2024 Segment Results

All comparisons detailed in this section refer to operating results for the fourth quarter 2024 versus the fourth quarter 2023.

Aerospace & Electronics

Sales of $237 million increased 11% compared to the prior year, driven by 7% core sales growth and a 4% benefit from the previously announced Vian acquisition. Operating profit margin of 22.4% increased 220 basis points from last year, primarily reflecting the impact of productivity, higher volumes, a more favorable mix, and higher price net of inflation. Adjusted operating profit margin of 23.1% increased 290 basis points from last year. Aerospace & Electronics' order backlog was $864 million as of December 31, 2024 compared to $701 million as of December 31, 2023.

Process Flow Technologies

Sales of $307 million increased 13% compared to the prior year, driven by 9% core sales growth and a 4% benefit from the previously announced CryoWorks and Technifab acquisitions. Operating profit margin expanded 300 basis points to 19.0% primarily due to net price, productivity, and higher volumes, partially offset by unfavorable mix. Adjusted operating profit margin expanded 330 basis points from last year to 20.3%. Process Flow Technologies order backlog was $376 million as of December 31, 2024 compared to $379 million as of December 31, 2023.

Initiating 2025 Guidance

We are initiating our full-year adjusted EPS outlook with a range of $5.30 to $5.60, up 12% at the mid-point over 2024.

Key assumptions for our guidance include:

• Total sales growth of approximately 5%, driven by core sales growth of approximately 4% to 6% and an acquisition benefit of approximately 1-2%, partially offset by a 1% headwind from foreign exchange.
• Adjusted segment operating margin of 22.5%+ (up from 21.9%).
• Corporate cost of $80 million.
• Net non-operating expense of $10 million.
• Adjusted tax rate of 23.5%.
• Diluted shares of ~59 million.

Additional details of our outlook and guidance are included in the presentation that accompanies this earnings release available on our website at www.craneco.com in the "investors" section.

Declaring First Quarter Dividend

Crane's Board of Directors has declared a 12% increase in the Company's quarterly dividend to $0.23 per share from $0.205 per share. The regular quarterly dividend of $0.23 per share for the first quarter of 2025 is payable on March 12, 2025 to shareholders of record as of February 28, 2025.

Additional Information

References to changes in "core sales" or "core growth" in this report include the change in sales excluding the impact of foreign currency translation and acquisitions and divestitures from closing up to the first anniversary of such acquisitions or divestitures.

Following the completion of the Engineered Materials divestiture effective on January 1, 2025, results for the fourth quarter of 2024 and all prior periods have been recast with the Engineered Materials segment presented as discontinued operations.

Conference Call

Crane has scheduled a conference call to discuss the fourth quarter financial results on Tuesday, January 28, 2025 at 10:00 A.M. (Eastern). All interested parties may listen to a live webcast of the call at www.craneco.com. An archived webcast will also be available to replay this conference call directly from the Company's website under Investors, Events & Presentations. Slides that accompany the conference call will be available on the Company's website.

About Crane Company

Crane Company has delivered innovation and technology-led solutions for customers since its founding in 1855. Today, Crane is a leading manufacturer of highly engineered components for challenging, mission-critical applications focused on the aerospace, defense, space and process industry end markets. The Company has two strategic growth platforms: Aerospace & Electronics and Process Flow Technologies. Crane has approximately 7,500 employees in the Americas, Europe, the Middle East, Asia and Australia. Crane Company is traded on the New York Stock Exchange (NYSE:CR). For more information, visit www.craneco.com.

Forward-Looking Statements Disclaimer

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, including, but not limited to: benefits and synergies of the separation transaction; strategic and competitive advantages of Crane; future financing plans and opportunities; and business strategies, prospects and projected operating and financial results. We caution investors not to place undue reliance on any such forward-looking statements.

These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained.

Risks and uncertainties that could cause actual results to differ materially from our expectations include, but are not limited to: changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations that may harm our businesses, results of operations, and cash flows; information systems and technology networks failures and breaches in data security, theft of personally identifiable and other information, non-compliance with our contractual or other legal obligations regarding such information; our ability to source components and raw materials from suppliers, including disruptions and delays in our supply chain; demand for our products, which is variable and subject to factors beyond our control; governmental regulations and failure to comply with those regulations; fluctuations in the prices of our components and raw materials; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow our business as planned; risks from environmental liabilities, costs, litigation and violations that could adversely affect our financial condition, results of operations, cash flows and reputation; risks associated with conducting a substantial portion of our business outside the U.S.; being unable to identify or complete acquisitions, or to successfully integrate the businesses we acquire, or complete dispositions; adverse impacts from intangible asset impairment charges; potential product liability or warranty claims; being unable to successfully develop and introduce new products, which would limit our ability to grow and maintain our competitive position and adversely affect our financial condition, results of operations and cash flow; significant competition in our markets; additional tax expenses or exposures that could affect our financial condition, results of operations and cash flows; inadequate or ineffective internal controls; specific risks relating to our reportable segments, including Aerospace & Electronics and Process Flow Technologies; the ability and willingness of Crane Company and Crane NXT, Co. to meet and/or perform their obligations under any contractual arrangements that were entered into among the parties in connection with the separation transaction and any of their obligations to indemnify, defend and hold the other party harmless from and against various claims, litigation and liabilities; and the ability to achieve some or all the benefits that we expect to achieve from the separation transaction.

Readers should carefully review Crane's financial statements and the notes thereto, as well as the section entitled "Risk Factors" in Item 1A of Crane's Annual Report on Form 10-K for the year ended December 31, 2023 and the other documents Crane files from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Crane assumes no (and disclaims any) obligation to revise or update any forward-looking statements.

We make no representations or warranties as to the accuracy of any projections, statements or information contained in this press release. It is understood and agreed that any such projections, targets, statements and information are not to be viewed as facts and are subject to significant business, financial, economic, operating, competitive and other risks, uncertainties and contingencies many of which are beyond our control, that no assurance can be given that any particular financial projections ranges, or targets will be realized, that actual results may differ from projected results and that such differences may be material. While all financial projections, estimates and targets are necessarily speculative, we believe that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates and targets. The inclusion of financial projections, estimates and targets in this press release should not be regarded as an indication that we or our representatives, considered or consider the financial projections, estimates and targets to be a reliable prediction of future events.

(Financial Tables Follow)

Source: Crane Company