0001944013false00019440132024-07-292024-07-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

 FORM 8-K

 CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 29, 2024
CRANE COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
Delaware
1-41570
88-2846451
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
100 First Stamford Place
Stamford
CT
06902
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code: 203-363-7300
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $1.00 CRNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

1

SECTION 2 – FINANCIAL INFORMATION
Item 2.02Results of Operations and Financial Condition.
On July 29, 2024, Crane Company (the “Company”) announced its results of operations for the quarter ended June 30, 2024. The related press release and quarterly financial data supplement is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information furnished under Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.


SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01Financial Statements and Exhibits.
(a)  None
(b)  None
(c)  None
(d)  Exhibits
99.1   
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 CRANE COMPANY
July 29, 2024  
 By: /s/ Richard A. Maue
  Richard A. Maue
Executive Vice President and
  Chief Financial Officer


3

Exhibit 99.1
crane_logox245x100.jpg
Contact:
Jason D. Feldman
Senior Vice President, Investor Relations, Treasury & Tax
Allison Poliniak-Cusic
Vice President, Investor Relations
IR@Craneco.com
www.craneco.com

Crane Company Reports Second Quarter 2024 Results and Raises Full Year EPS Guidance

Second Quarter 2024 Highlights
•Earnings per diluted share (EPS) of $1.23, up 64% and adjusted EPS of $1.30, up 18%.
•Sales of $581 million, up 14% driven by 9% core sales growth.

Full Year Outlook
•Raising the midpoint of our full-year adjusted EPS guidance by $0.15 and narrowing the full year adjusted EPS outlook to a range of $4.95-$5.15, from prior range of $4.75-$5.05.

STAMFORD, CONNECTICUT - July 29, 2024 - Crane Company ("Crane," NYSE: CR) today announced its financial results for the second quarter of 2024 and updated its full-year outlook.
Max Mitchell, Crane's Chairman, President and Chief Executive Officer, stated: “Our Crane team delivered 18% adjusted EPS growth in the quarter, driven by 9% core sales growth and solid core operating leverage of 40%. Our results in the quarter reflect benefits from our strategic investments in growth and commercial excellence, which continue to add value for our customers and drive above market core sales growth across both Aerospace & Electronics and Process Flow Technologies."
Mr. Mitchell concluded: “With a strong first half of 2024 behind us, we have incredible momentum across our key verticals. Our balance sheet provides significant optionality to invest in both organic opportunities and strategic acquisitions to further amplify growth. Coupled with the solid order growth and strong backlog, we are raising the midpoint of our full-year adjusted EPS guidance by $0.15 and narrowing our adjusted EPS guidance range to $4.95 to $5.15, from $4.75 to $5.05."
Second Quarter 2024 Results
Second quarter 2024 GAAP EPS of $1.23 compared to $0.75 in the second quarter of 2023. Second quarter 2024 adjusted EPS of $1.30 compared to $1.10 in the second quarter of 2023.
Second quarter sales increased 14%, with 9% core sales growth and a 6% contribution from acquisitions, partially offset by a slight headwind from unfavorable foreign exchange. Operating profit of $97 million increased 53% compared to last year, and adjusted operating profit of $103 million increased 22% compared to last year, in both cases primarily reflecting the impact from productivity, favorable volumes and net price, partially offset by unfavorable mix.
1

Summary of Second Quarter 2024 Results
 Second QuarterChange
(unaudited, dollars in millions)20242023$%
Net sales$581$510$72 14 %
Core sales44 9 %
Acquisitions29 6 %
Foreign exchange(1)0 %
Operating profit$97$63$34 53 %
Adjusted operating profit*$103$84$19 22 %
Operating profit margin16.6%12.4%420bps
Adjusted operating profit margin*17.7%16.5%120bps
*Please see the attached Non-GAAP Financial Measures tables

Cash Flow, Financing Activities and Other Financial Metrics
During the second quarter of 2024, cash provided by operating activities was $62 million, capital expenditures were $7 million, and free cash flow (cash provided by operating activities less capital spending) was $55 million. Adjusted free cash flow (free cash flow excluding transaction related cash outflows) was $57 million. (Please see the attached non-GAAP Financial Measures tables.)
As of June 30, 2024, the Company's cash balance was $229 million with total debt of $377 million.
Rich Maue, Crane's Executive Vice President and Chief Financial Officer, added: "We ended the quarter with a strong balance sheet and leverage remains low, providing us with significant capital deployment optionality."

2

Second Quarter 2024 Segment Results
All comparisons detailed in this section refer to operating results for the second quarter 2024 versus the second quarter 2023.
Aerospace & Electronics
Second QuarterChange
(unaudited, dollars in millions)20242023$%
Net sales$231 $189 $42 22 %
Core sales3116 %
Acquisitions116 %
Operating profit$53 $38 $14 38 %
Adjusted operating profit*$55 $38 $17 43 %
Operating profit margin22.8 %20.2 %260bps
Adjusted operating profit margin*23.8 %20.2 %360bps
*Please see the attached Non-GAAP Financial Measures tables
Sales of $231 million increased 22% compared to the prior year, driven by 16% core sales growth and a 6% benefit from the previously announced Vian acquisition. Operating profit margin of 22.8% increased 260 basis points from last year, primarily reflecting the impact of higher volumes and productivity. Adjusted operating profit margin of 23.8% increased 360 basis points from last year. Aerospace & Electronics' order backlog was $815 million as of June 30, 2024 compared to $701 million as of December 31, 2023, and $675 million as of June 30, 2023.
Process Flow Technologies
 Second QuarterChange
(unaudited, dollars in millions)20242023$%
Net sales$298 $263 $35 13 %
Core sales17 7 %
Foreign exchange(1)0%
Acquisitions18 7 %
Operating profit$60 $51 $9 18 %
Adjusted operating profit*$61 $53 $8 16 %
Operating profit margin20.0 %19.2 %80bps
Adjusted operating profit margin*20.5 %20.0 %50bps
*Please see the attached Non-GAAP Financial Measures tables
3

Sales of $298 million increased 13% compared to the prior year, driven by 7% core sales growth and a 7% benefit from the previously announced Baum and CryoWorks acquisitions. Operating profit margin expanded 80 basis points to 20.0% primarily due to the impact from productivity, favorable net price, and higher volumes, partially offset by unfavorable mix. Adjusted operating profit margin expanded 50 basis points to 20.5% from last year. Process Flow Technologies order backlog was $400 million as of June 30, 2024 compared to $379 million as of December 31, 2023, and $353 million as of June 30, 2023.
Engineered Materials
Second QuarterChange
(unaudited, dollars in millions)20242023$%
Net sales$53 $57 $(5)(8 %)
Operating profit$7 $10 $(3)(26 %)
Adjusted operating profit*$7 $10 $(2)(23 %)
Operating profit margin13.9 %17.1 %(320bps)
Adjusted operating profit margin*13.9 %16.6 %(270bps)
*Please see the attached Non-GAAP Financial Measures tables

Sales of $53 million decreased 8% compared to the prior year. Operating profit margin declined 320 basis points to 13.9%, and adjusted operating profit margin declined 270 basis points to 13.9%, primarily driven by lower volumes.
Updating 2024 Guidance
We are raising the midpoint of our full-year adjusted EPS guidance by $0.15 and narrowing the adjusted EPS outlook to a range of $4.95 to $5.15, from the prior range of $4.75 to $5.05.
Key assumptions for our revised guidance include:
•Total sales growth of approximately 11% (prior 10%) driven by core sales growth of approximately 5% to 7% (prior 4% to 6%) and an acquisition benefit of approximately 5% (unchanged).
•Adjusted segment operating margin of ~20.7% (prior 20.5%).
•Corporate cost of $80 million (prior $75 million).
•Net non-operating expense of $20 million (prior $23 million).
•Adjusted tax rate of 23.0% (prior 23.5%).
•Diluted shares of ~58 million (unchanged).

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.

4

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.

Crane operated as part of Crane Holdings, Co. for the entire first quarter of 2023 prior to completion of the separation transaction on April 3, 2023. First quarter 2023 results, as initially reported in May 2023, were derived from Crane Holdings, Co.'s accounting records and were presented on a carve-out basis. All of Crane's subsequent financial disclosures for pre-separation periods show the financial results of Crane Holdings, Co. (now renamed Crane NXT, Co.) with the Payment & Merchandising Technologies segment presented as discontinued operations.
As a result of the change in accounting presentation required by GAAP, first quarter 2023 GAAP EPS was reported as $1.08 when initially reported on a carve-out basis, and in subsequent reports, reported as $0.98 with the Payment & Merchandising Technologies segment presented as discontinued operations. First quarter 2023 Adjusted EPS on a carve-out basis was reported as $1.25, and $1.26 with the Payment & Merchandising Technologies segment presented as discontinued operations. Segment operating profit was the same under both accounting methodologies.
Conference Call
Crane has scheduled a conference call to discuss the second quarter financial results on Tuesday, July 30, 2024 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. 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 business, results of operation and stock price; information systems and technology networks failures and breaches in data security, theft of personally identifiable and other information, non-
5

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, Process Flow Technologies and Engineered Materials; the ability and willingness of Crane Company and Crane NXT, Co. to meet and/or perform their obligations under any contractual arrangements that are 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
6

CRANE COMPANY
Condensed Statements of Operations Data
(unaudited, in millions, except per share data)
Three Months Ended
June 30,		Six Months Ended
June 30,
 2024202320242023
Net sales:
Aerospace & Electronics$230.9 $189.2 $456.8 $369.3 
Process Flow Technologies297.7 263.2 582.0 534.6 
Engineered Materials52.6 57.2 107.7 119.5 
Total net sales$581.2 $509.6 $1,146.5 $1,023.4 
Operating profit:
Aerospace & Electronics$52.7 $38.3 $101.0 $75.9 
Process Flow Technologies59.5 50.6 116.4 113.9 
Engineered Materials7.3 9.8 15.4 21.2 
Corporate(22.9)(35.6)(46.8)(70.4)
Total operating profit $96.6 $63.1 $186.0 $140.6 
Interest income$1.3 $0.8 $2.5 $1.7 
Interest expense(7.4)(5.3)(14.6)(11.8)
Miscellaneous income (expense), net1.1 (1.3)(0.2)(1.9)
Income from continuing operations before income taxes91.6 57.3 173.7 128.6 
Provision for income taxes20.0 14.0 37.3 29.4 
Net income from continuing operations attributable to common shareholders71.6 43.3 136.4 99.2 
Income from discontinued operations, net of tax— 2.3 — 52.1 
Net income attributable to common shareholders$71.6 $45.6 $136.4 $151.3 
Earnings per diluted share from continuing operations$1.23 $0.75 $2.34 $1.73 
Earnings per diluted share from discontinued operations— 0.04 — 0.91 
Earnings per diluted share $1.23 $0.79 $2.34 $2.64 
Average diluted shares outstanding58.3 57.4 58.257.4 
Average basic shares outstanding57.2 56.7 57.156.6 
Supplemental data:
Cost of sales$357.3 $308.5 $702.1 $615.4 
Selling, general & administrative127.3 138.0 258.4 267.4 
Transaction related expenses (a)
5.9 19.2 12.7 32.2 
Repositioning related charges, net (a)
0.1 1.7 0.5 2.0 
Depreciation and amortization (a)
13.8 9.8 26.7 19.0 
Stock-based compensation expense (a)
6.9 8.4 13.5 14.0 
(a) Amounts included within Cost of sales and/or Selling, general & administrative costs.
7

CRANE COMPANY
Condensed Balance Sheets
(unaudited, in millions)

June 30,
2024		December 31,
2023
Assets
Current assets
Cash and cash equivalents$229.3 $329.6 
Accounts receivable, net370.9 306.4 
Inventories, net389.6 353.1 
Other current assets119.4 101.7 
Total current assets1,109.2 1,090.8 
Property, plant and equipment, net273.6 270.5 
Other assets299.8 224.6 
Goodwill824.1 747.7 
Total assets$2,506.7 $2,333.6 
Liabilities and Equity
Current liabilities
Short-term borrowings$130.0 $— 
Accounts payable157.4 179.1 
Accrued liabilities229.3 273.7 
Income taxes3.9 14.3 
Total current liabilities520.6 467.1 
Long-term debt246.9 248.5 
Long-term deferred tax liability49.1 37.1 
Other liabilities214.4 220.6 
Total liabilities1,031.0 973.3 
Total equity1,475.7 1,360.3 
Total liabilities and equity$2,506.7 $2,333.6 


8

CRANE COMPANY
Condensed Statements of Cash Flows
(unaudited, in millions)

Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Operating activities:
Net income attributable to common shareholders$71.6 $45.6 $136.4 $151.3 
Less: Income from discontinued operations, net of tax— 2.3 — 52.1 
Net income from continuing operations attributable to common shareholders71.6 43.3 136.4 99.2 
Depreciation and amortization13.8 9.8 26.7 19.0 
Stock-based compensation expense6.9 8.4 13.5 14.0 
Defined benefit plans and postretirement cost1.0 1.9 1.9 4.8 
Deferred income taxes(0.1)(5.3)— (3.7)
Cash (used for) provided by operating working capital(24.0)1.3 (186.4)(183.3)
Defined benefit plans and postretirement contributions(5.4)(5.4)(6.0)(5.7)
Environmental payments, net of reimbursements(1.4)(0.6)(2.8)(1.9)
Other(0.4)(1.0)(1.2)4.6 
Total provided by (used for) operating activities from continuing operations62.0 52.4 (17.9)(53.0)
Investing activities:
Payment for acquisition - net of cash acquired(60.7)— (166.3)— 
Capital expenditures(7.4)(11.6)(16.5)(20.5)
Other investing activities 5.5 (0.5)5.7 (0.3)
Total used for investing activities from continuing operations(62.6)(12.1)(177.1)(20.8)
Financing activities:
Dividends paid(11.7)(10.2)(23.4)(36.8)
Net proceeds (payments) related to employee stock plans3.40.8(5.1)13.7 
Debt issuance costs—(3.4)—(7.5)
Proceeds from long-term debt50.0300.0190.0 300.0 
Proceeds from term facility of discontinued operations— —— 350.0 
Repayments of long-term debt(30.0)(36.9)(61.9)(436.9)
Distribution of Crane NXT, Co.— (578.1)— (578.1)
Total provided by (used for) financing activities from continuing and discontinued operations11.7 (327.8)99.6 (395.6)
Discontinued operations:
Total provided by operating activities— — — 34.6 
Total used for investing activities— — — (4.1)
Increase in cash and cash equivalents from discontinued operations— — — 30.5 
Effect of exchange rate on cash and cash equivalents(1.2)(3.8)(4.9)0.2 
Increase (decrease) in cash and cash equivalents9.9 (291.3)(100.3)(438.7)
Cash and cash equivalents at beginning of period (a)
219.4 510.2 329.6 657.6 
Cash and cash equivalents at end of period$229.3 $218.9 $229.3 $218.9 
(a) 2023 Includes cash and cash equivalents of discontinued operations.
9

CRANE COMPANY
Order Backlog
(unaudited, in millions)
 
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Aerospace & Electronics (a)
$814.9 $791.8 $700.9 $677.9 $675.1 
Process Flow Technologies(b) (c)
399.9 393.3 379.0 352.9 352.9 
Engineered Materials11.0 12.8 11.3 14.6 14.5 
Total backlog$1,225.8 $1,197.9 $1,091.2 $1,045.4 $1,042.5 
(a) Includes $62.3 million and $53.5 million of backlog as of June 30, 2024 and March 31, 2024, respectively, pertaining to the Vian acquisition.
(b) Includes $11.6 million of backlog as of June 30, 2024 pertaining to the CryoWorks acquisition.
(c) Includes $6.4 million, $8.3 million and $11.5 million of backlog as of June 30, 2024, March 31, 2024 and December 31, 2023, respectively, pertaining to the Baum acquisition.










 

 
10

CRANE COMPANY
Non-GAAP Financial Measures
(unaudited, in millions, except per share data)
Three Months Ended June 30,
20242023% Change
$Per Share$Per Share(on $)
Net sales (GAAP)$581.2 $509.6 14.1 %
Adjusted Operating Profit and Adjusted Operating Profit Margin
Operating profit (GAAP)$96.6 $63.1 53.1 %
Operating profit margin (GAAP)16.6 %12.4 %
Special items impacting operating profit:
Transaction related expenses(a)(b)
5.9 19.2 
Repositioning related charges, net0.1 1.7 
Adjusted operating profit (Non-GAAP)$102.6 $84.0 22.1 %
Adjusted operating profit margin (Non-GAAP)17.7 %16.5 %
Adjusted Net Income and Adjusted Net Income per Share
Net income from continuing operations attributable to common shareholders (GAAP)$71.6 $1.23 $43.3 $0.75 65.4 %
Transaction related expenses(a)(b)
5.3 0.09 19.2 0.33 
Repositioning related charges, net0.1 — 1.7 0.03 
Impact of pension non-service costs(0.3)— 1.5 0.03 
Tax effect of the Non-GAAP adjustments(1.2)(0.02)(2.3)(0.04)
Adjusted net income (Non-GAAP)$75.5 $1.30 $63.4 $1.10 19.1 %
Adjusted EBITDA and Adjusted EBITDA Margin
Net income (GAAP)$71.6 $43.3 65.4 %
Net income margin (GAAP)12.3 %8.5 %
Adjustments to net income:
Interest expense, net6.1 4.5 
Income tax expense20.0 14.0 
Depreciation9.5 8.0 
Amortization4.3 1.8 
Miscellaneous (income) expense, net(1.1)1.3 
Repositioning related charges, net0.1 1.7 
Transaction related expenses(a)(b)
2.5 19.2 
Adjusted EBITDA (Non-GAAP)$113.0 $93.8 20.5 %
Adjusted EBITDA Margin (Non-GAAP)19.4 %18.4 %
(a) 2024 transaction-related expenses primarily associated with the Vian and CyroWorks acquisitions.
(b) 2023 transaction-related expenses primarily associated with the separation.
Totals may not sum due to rounding
11

CRANE COMPANY
Non-GAAP Financial Measures
(in millions, except per share data)
Six Months Ended June 30,
20242023% Change
$Per Share$Per Share(on $)
Net sales (GAAP)$1,146.5 $1,023.4 12.0 %
Adjusted Operating Profit and Adjusted Operating Profit Margin
Operating profit (GAAP)$186.0 $140.6 32.3 %
Operating profit margin (GAAP)16.2 %13.7 %
Special items impacting operating profit:
Transaction related expenses(a)(b)
12.7 32.2 
Repositioning related charges, net0.5 2.0 
Adjusted operating profit (Non-GAAP)$199.2 $174.8 14.0 %
Adjusted operating profit margin (Non-GAAP)17.4 %17.1 %
Adjusted Net Income and Adjusted Net Income per Share
Net income from continuing operations attributable to common shareholders (GAAP)$136.4 $2.34 $99.2 $1.73 37.5 %
Transaction related expenses(a)(b)
12.1 0.21 32.2 0.56 
Repositioning related charges, net0.5 0.01 2.0 0.03 
Impact of pension non-service costs0.3 — 2.9 0.05 
Interest expense— — 5.9 0.10 
Tax effect of the Non-GAAP adjustments(2.7)(0.04)(6.6)(0.11)
Adjusted net income (Non-GAAP)$146.6 $2.52 $135.6 $2.36 8.1 %
Adjusted EBITDA and Adjusted EBITDA Margin
Net income (GAAP)$136.4 $99.2 37.5 %
Net income margin (GAAP)11.9 %9.7 %
Adjustments to net income:
Interest expense, net12.1 10.2 
Income tax expense37.3 29.4 
Depreciation18.5 16.0 
Amortization8.2 3.0 
Miscellaneous expense, net0.2 1.8 
Repositioning related charges, net0.5 2.0 
Transaction related expenses(a)(b)
9.3 32.2 
Adjusted EBITDA (Non-GAAP)$222.5 $193.8 14.8 %
Adjusted EBITDA Margin (Non-GAAP)19.4 %18.9 %
(a) 2024 transaction-related expenses are primarily associated with the Vian and CyroWorks acquisitions.
(b) 2023 transaction-related expenses are primarily associated with the separation.
Totals may not sum due to rounding

12

CRANE COMPANY
Non-GAAP Financial Measures by Segment
(unaudited, in millions)

Three Months Ended June 30, 2024Aerospace & ElectronicsProcess Flow TechnologiesEngineered MaterialsCorporateTotal Company
Net sales$230.9 $297.7 $52.6 $— $581.2 
Operating profit (GAAP)$52.7 $59.5 $7.3 $(22.9)$96.6 
Operating profit margin (GAAP)22.8 %20.0 %13.9 %16.6 %
Special items impacting operating profit:
Transaction related expenses(a)
2.2 1.3 — 2.4 5.9 
Repositioning related charges, net— 0.1 — — 0.1 
Adjusted operating profit (Non-GAAP)$54.9 $60.9 $7.3 $(20.5)$102.6 
Adjusted operating profit margin (Non-GAAP)23.8 %20.5 %13.9 %17.7 %
Three Months Ended June 30, 2023
Net sales$189.2 $263.2 $57.2 $— $509.6 
Operating profit (GAAP)$38.3 $50.6 $9.8 $(35.6)$63.1 
Operating profit margin (GAAP)20.2 %19.2 %17.1 %12.4 %
Special items impacting operating profit:
Transaction related expenses(b)
— — — 19.2 19.2 
Repositioning related charges, net— 2.0 (0.3)— 1.7 
Adjusted operating profit (Non-GAAP)$38.3 $52.6 $9.5 $(16.4)$84.0 
Adjusted operating profit margin (Non-GAAP)20.2 %20.0 %16.6 %16.5 %
(a) 2024 transaction-related expenses are primarily associated with the Vian and CyroWorks acquisitions.
(b) 2023 transaction-related expenses are primarily associated with the separation.
Totals may not sum due to rounding











13




CRANE COMPANY
Non-GAAP Financial Measures by Segment
(in millions)

Six Months Ended June 30, 2024Aerospace & ElectronicsProcess Flow TechnologiesEngineered MaterialsCorporateTotal Company
Net sales$456.8 $582.0 $107.7 $— $1,146.5 
Operating profit (GAAP)$101.0 $116.4 $15.4 $(46.8)$186.0 
Operating profit margin (GAAP)22.1 %20.0 %14.3 %16.2 %
Special items impacting operating profit:
Transaction related expenses(a)
4.6 3.2 — 4.9 12.7 
Repositioning related charges , net— 0.5 — — 0.5 
Adjusted operating profit (Non-GAAP)$105.6 $120.1 $15.4 $(41.9)$199.2 
Adjusted operating profit margin (Non-GAAP)23.1 %20.6 %14.3 %17.4 %
Six Months Ended June 30, 2023
Net sales$369.3 $534.6 $119.5 $— $1,023.4 
Operating profit (GAAP)$75.9 $113.9 $21.2 $(70.4)$140.6 
Operating profit margin (GAAP)20.6 %21.3 %17.7 %13.7 %
Special items impacting operating profit:
Transaction related expenses(b)
— — — 32.2 32.2 
Repositioning related charges, net— 2.3 (0.3)— 2.0 
Adjusted operating profit (Non-GAAP)$75.9 $116.2 $20.9 $(38.2)$174.8 
Adjusted operating profit margin (Non-GAAP)20.6 %21.7 %17.5 %17.1 %
(a) 2024 transaction-related expenses are primarily associated with the Vian and CyroWorks acquisitions.
(b) 2023 transaction-related expenses are primarily associated with the separation.
Totals may not sum due to rounding








14

CRANE COMPANY
Adjusted Free Cash Flow
(unaudited, in millions, except per share data)


Three Months Ended June 30,    Six Months Ended June 30,
Cash Flow Items2024202320242023
Cash provided by (used for) operating activities from continuing operations$62.0 $52.4 $(17.9)$(53.0)
Less: Capital expenditures(7.4)(11.6)(16.5)(20.5)
Free cash flow$54.6 $40.8 $(34.4)$(73.5)
Adjustments:
Transaction-related expenses$2.4 $19.2 $5.1 $32.2 
Adjusted free cash flow$57.0 $60.0 $(29.3)$(41.3)

Crane Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release includes certain non-GAAP financial measures, including adjusted operating profit, adjusted operating profit margin, adjusted net income, adjusted EPS, adjusted EBITDA, Free Cash Flow and Adjusted Free Cash Flow, that are not prepared in accordance with GAAP. These non-GAAP measures are an addition, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to operating income, net income or any other performance measures derived in accordance with GAAP. We believe that these non-GAAP measures of financial results (including on a forward-looking or projected basis) provide useful supplemental information to investors about Crane Company. Our management uses certain forward looking non-GAAP measures to evaluate projected financial and operating results. However, there are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore our non-GAAP measures may not be directly comparable to similarly titled measures of other companies.

Reconciliations of certain forward-looking and projected non-GAAP measures for Crane Company, including Adjusted EPS, and Adjusted segment margin to the closest corresponding GAAP measure are not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, which could have a potentially significant impact on our future GAAP results. For Crane Company, these forward looking and projected non-GAAP measures are calculated as follows:

•"Adjusted operating margin" is calculated as adjusted operating profit divided by sales. Adjusted operating profit is calculated as operating profit before Special Items which include transaction related expenses such as professional fees, and incremental costs related to the separation; and repositioning related charges. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

•"Adjusted EPS" is calculated as adjusted net income divided by diluted shares. Adjusted net income is calculated as net income adjusted for Special Items which include transaction related expenses such as professional fees, and incremental costs related to the separation; repositioning related charges; and, the impact of pension non-service costs. We believe that non-GAAP financial measures adjusted for these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

We believe that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations:

•"Adjusted Operating Profit" and "Adjusted Operating Margin" add back to Operating Profit items which are outside of our core performance, some of which may or may not be non-recurring, and which we believe may complicate the interpretation of the Company’s underlying earnings and operational performance. These items include income and expense such as: transaction related expenses and repositioning related (gains) charges. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

•"Adjusted Net Income" and "Adjusted EPS" exclude items which are outside of our core performance, some of which may or may not be non-recurring, and which we believe may complicate the presentation of the Company’s underlying earnings and operational performance. These measures include income and expense items that impacted Operating Profit such as: transaction related expenses and repositioning related (gains) charges. Additionally, these non-GAAP financial measures exclude income and expense items that impacted Net Income and Earnings per Diluted Share such as the impact of pension non-service costs. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items
15

provide investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics.

•"Adjusted EBITDA" adds back to net income: net interest expense, income tax expense, depreciation and amortization, miscellaneous (income) expense, net, and Special Items including transaction related expenses. "Adjusted EBITDA Margin" is calculated as adjusted EBITDA divided by net sales. We believe that adjusted EBITDA and adjusted EBITDA margin provide investors with an alternative metric that may be a meaningful indicator of our performance and provides useful information to investors regarding our financial conditions and results of operations that is complementary to GAAP metrics.

•“Free Cash Flow” and “Adjusted Free Cash Flow” provide supplemental information to assist management and investors in analyzing the Company’s ability to generate liquidity from its operating activities. The measure of free cash flow does not take into consideration certain other non-discretionary cash requirements such as, for example, mandatory principal payments on the Company’s long-term debt. Free Cash Flow is calculated as cash provided by operating activities less capital spending. Adjusted Free Cash Flow is calculated as Free Cash Flow adjusted for certain cash items which we believe may complicate the interpretation of the Company’s underlying free cash flow performance such as certain transaction related cash flow items related to the separation transaction. These items are not incurred in all periods, the size of these items is difficult to predict, and none of these items are indicative of the operations of the underlying businesses. We believe that non-GAAP financial measures that exclude these items provide investors with an alternative metric that can assist in predicting future cash flows that are complementary to GAAP metrics.
16
v3.24.2
Cover Page Cover Page
Jul. 29, 2024
Cover [Abstract]  
Document Type false
Document Period End Date Jul. 29, 2024
Entity Registrant Name CRANE COMPANY
Entity Incorporation, State or Country Code DE
Entity File Number 1-41570
Entity Tax Identification Number 88-2846451
Entity Address, Address Line One 100 First Stamford Place
Entity Address, City or Town Stamford
Entity Address, State or Province CT
Entity Address, Postal Zip Code 06902
City Area Code 203
Local Phone Number 363-7300
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, par value $1.00
Trading Symbol CR
Security Exchange Name NYSE
Entity Central Index Key 0001944013
Amendment Flag false
Document Type 8-K
Crane (NYSE:CR)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Crane Charts.
Crane (NYSE:CR)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Crane Charts.