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
Fourth Quarter
Change
(unaudited, dollars in millions)
2024
2023
$
%
Net sales
$544
$484
$
60
12%
Core sales
37
8%
Acquisitions
22
4%
Foreign exchange
1
0%
Operating profit
$86
$62
$
24
38%
Adjusted operating profit*
$96
$70
$
26
38%
Operating profit margin
15.8%
12.9%
290bps
Adjusted operating profit margin*
17.7%
14.5%
320bps
*Please see the attached Non-GAAP
Financial Measures tables
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
Fourth Quarter
Change
(unaudited, dollars in millions)
2024
2023
$
%
Net sales
$
237
$
213
$
24
11
%
Core sales
14
7
%
Acquisitions
10
4
%
Operating profit
$
53
$
43
$
10
24
%
Adjusted operating profit*
$
55
$
43
$
12
28
%
Operating profit margin
22.4
%
20.2
%
220bps
Adjusted operating profit margin*
23.1
%
20.2
%
290bps
*Please see the attached Non-GAAP
Financial Measures tables
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
Fourth Quarter
Change
(unaudited, dollars in millions)
2024
2023
$
%
Net sales
$
307
$
272
$
36
13
%
Core sales
23
9
%
Acquisitions
12
4
%
Foreign exchange
1
0
%
Operating profit
$
58
$
43
$
15
34
%
Adjusted operating profit*
$
62
$
46
$
16
36
%
Operating profit margin
19.0
%
16.0
%
300bps
Adjusted operating profit margin*
20.3
%
17.0
%
330bps
*Please see the attached Non-GAAP
Financial Measures tables
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
CRANE COMPANY Condensed
Statements of Operations Data
(unaudited, in millions, except
per share data)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
2024
2023
Net
sales:
Aerospace & Electronics
$
236.8
$
212.8
$
932.7
$
789.3
Process Flow Technologies
307.3
271.5
1,198.5
1,072.8
Total net sales
$
544.1
$
484.3
$
2,131.2
$
1,862.1
Operating
profit:
Aerospace & Electronics
$
53.1
$
42.9
$
209.0
$
159.0
Process Flow Technologies
58.4
43.4
240.3
208.5
Corporate
(25.3
)
(23.9
)
(93.5
)
(117.1
)
Total operating profit
$
86.2
$
62.4
$
355.8
$
250.4
Interest income
$
1.5
$
1.9
$
5.5
5.1
Interest expense
(5.3
)
(6.0
)
(27.2
)
(22.7
)
Miscellaneous income, net
3.5
1.4
4.4
0.3
Income from continuing operations before
income taxes
85.9
59.7
338.5
233.1
Provision for income taxes
15.6
16.1
70.3
57.2
Net income from continuing operations
attributable to common shareholders
70.3
43.6
268.2
175.9
Income from discontinued operations, net
of tax
10.7
5.8
26.5
80.0
Net income attributable to common
shareholders
$
81.0
$
49.4
$
294.7
$
255.9
Earnings per diluted share from continuing
operations
$
1.20
$
0.76
$
4.60
$
3.06
Earnings per diluted share from
discontinued operations
0.18
0.10
0.45
1.39
Earnings per diluted share
$
1.38
$
0.86
$
5.05
$
4.45
Average diluted shares outstanding
58.4
57.6
58.3
57.5
Average basic shares outstanding
57.3
56.9
57.2
56.7
Supplemental
data:
Cost of sales
$
321.6
$
300.4
$
1,263.4
$
1,111.1
Selling, general & administrative
136.3
121.5
512.0
500.6
Transaction related expenses (a)
7.4
6.3
23.7
42.8
Repositioning related charges, net (a)
2.8
1.4
3.5
3.8
Depreciation and amortization (a)
13.5
10.0
51.0
35.4
Stock-based compensation expense (a)
7.2
4.2
25.6
25.8
(a) Amounts included within Cost of sales
and/or Selling, general & administrative costs.
CRANE COMPANY Condensed
Balance Sheets
(unaudited, in millions)
December 31,
2024
December 31,
2023
Assets
Current assets
Cash and cash equivalents
$
306.7
$
329.6
Accounts receivable, net
339.1
297.7
Inventories, net
380.4
343.9
Other current assets
135.8
100.3
Current assets held for sale
217.9
19.3
Total current assets
1,379.9
1,090.8
Property, plant and equipment, net
261.3
244.5
Other assets
315.9
240.8
Goodwill
661.6
576.4
Long-term assets held for sale
—
198.9
Total assets
$
2,618.7
$
2,351.4
Liabilities and Equity
Current liabilities
Accounts payable
$
188.2
$
156.9
Accrued liabilities
279.9
260.5
Income taxes
7.9
14.3
Current liabilities held for sale
44.1
35.4
Total current liabilities
520.1
467.1
Long-term debt
247.0
248.5
Long-term deferred tax liability
34.8
36.1
Other liabilities
175.8
220.2
Long-term liabilities held for sale
—
19.2
Total liabilities
977.7
991.1
Total equity
1,641.0
1,360.3
Total liabilities and equity
$
2,618.7
$
2,351.4
CRANE COMPANY Condensed
Statements of Cash Flows
(unaudited, in millions)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Operating activities:
Net income attributable to common
shareholders
$
81.0
$
49.4
$
294.7
$
255.9
Less: Income from discontinued operations,
net of tax
10.7
5.8
26.5
80.0
Net income from continuing operations
attributable to common shareholders
70.3
43.6
268.2
175.9
Depreciation and amortization
13.5
10.0
51.0
35.4
Stock-based compensation expense
7.2
4.2
25.6
25.8
Defined benefit plans and postretirement
cost
1.0
1.9
3.5
8.9
Deferred income taxes
(8.5
)
(19.4
)
(11.6
)
(18.8
)
Cash provided by (used for) operating
working capital
125.2
100.6
(51.8
)
(51.3
)
Defined benefit plans and postretirement
contributions
(0.6
)
(2.2
)
(17.1
)
(18.3
)
Environmental payments, net of
reimbursements
(0.7
)
(0.9
)
(4.2
)
(3.9
)
Other
(5.4
)
4.1
(5.8
)
8.4
Total provided by operating activities
from continuing operations
202.0
141.9
257.8
162.1
Investing activities:
Payment for acquisitions - net of cash
acquired and working capital adjustments
(38.8
)
(90.5
)
(200.5
)
(90.5
)
Capital expenditures
(13.8
)
(11.6
)
(36.6
)
(39.0
)
Proceeds from insurance recoveries for
damaged property, plant and equipment
1.0
—
1.0
—
Other investing activities
0.5
0.1
6.1
0.7
Total used for investing activities from
continuing operations
(51.1
)
(102.0
)
(230.0
)
(128.8
)
Financing activities:
Dividends paid
(11.8
)
(10.3
)
(46.9
)
(57.3
)
Net proceeds (payments) related to
employee stock plans
2.6
6.1
(0.9
)
21.8
Debt issuance costs
—
(1.5
)
—
(9.0
)
Proceeds from debt
—
—
190.0
300.0
Proceeds from term facility of
discontinued operations
—
—
—
350.0
Repayments of debt
(85.0
)
(1.8
)
(191.9
)
(450.6
)
Distribution of Crane NXT, Co.
—
—
—
(578.1
)
Total used for financing activities from
continuing and discontinued operations
(94.2
)
(7.5
)
(49.7
)
(423.2
)
Discontinued operations:
Total provided by operating activities
7.0
17.8
15.0
66.1
Total used for investing activities
(0.5
)
(1.4
)
(3.2
)
(7.8
)
Increase in cash and cash equivalents from
discontinued operations
6.5
16.4
11.8
58.3
Effect of exchange rate on cash and cash
equivalents
(13.2
)
7.0
(11.3
)
3.6
Increase (decrease) in cash and cash
equivalents
50.0
55.8
(21.4
)
(328.0
)
Cash and cash equivalents at beginning of
period (a)
258.2
273.8
329.6
657.6
Cash and cash equivalents at end of
period
$
308.2
$
329.6
$
308.2
$
329.6
Less: Cash and cash equivalents of
discontinued operations
1.5
—
1.5
—
Cash and cash equivalents of continuing
operations at end of period
$
306.7
$
329.6
$
306.7
$
329.6
(a) 2023 Includes cash and cash
equivalents of discontinued operations.
CRANE COMPANY Order
Backlog
(unaudited, in millions)
December 31,
September 30,
June 30,
March 31,
December 31,
2024
2024
2024
2024
2023
Aerospace & Electronics (a)
$
863.8
$
833.3
$
814.9
$
791.8
$
700.9
Process Flow Technologies(b) (c)
376.4
392.0
399.9
393.3
379.0
Total backlog
$
1,240.2
$
1,225.3
$
1,214.8
$
1,185.1
$
1,079.9
(a) Includes $52.3 million, $59.1 million,
$62.3 million and $53.5 million of backlog as of December 31, 2024,
September 30, 2024, June 30, 2024 and March 31, 2024, respectively,
pertaining to the Vian acquisition.
(b) Includes $11.2 million, $12.8 million,
$11.6 million of backlog as of December 31, 2024, September 30,2024
and June 30, 2024, respectively, pertaining to the CryoWorks
acquisition.
(c) Includes $10.4 million of backlog as
of December 31, 2024, pertaining to the Technifab acquisition.
CRANE COMPANY Non-GAAP
Financial Measures
(unaudited, in millions, except
per share data)
Three Months Ended December
31,
2024
2023
% Change
$
Per Share
$
Per Share
(on $)
Net sales (GAAP)
$
544.1
$
484.3
12.3
%
Adjusted Operating Profit and Adjusted
Operating Profit Margin
Operating profit (GAAP)
$
86.2
$
62.4
38.1
%
Operating profit margin (GAAP)
15.8
%
12.9
%
Special items impacting operating
profit:
Transaction related expenses(a)(b)
7.4
6.3
Repositioning related charges, net
2.8
1.4
Adjusted operating profit (Non-GAAP)
$
96.4
$
70.1
37.5
%
Adjusted operating profit margin
(Non-GAAP)
17.7
%
14.5
%
Adjusted Net Income and Adjusted Net
Income per Share
Net income from continuing operations
attributable to common shareholders (GAAP)
$
70.3
$
1.20
$
43.6
$
0.76
61.2
%
Transaction related expenses(a)(b)
2.9
0.05
3.1
0.05
Repositioning related charges, net
2.8
0.05
1.4
0.02
Impact of pension non-service costs
—
—
1.5
0.03
Tax effect of the Non-GAAP adjustments
(2.3
)
(0.04
)
(3.6
)
(0.06
)
Adjusted net income (Non-GAAP)
$
73.7
$
1.26
$
46.0
$
0.80
60.2
%
Adjusted EBITDA and Adjusted EBITDA
Margin
Net income from continuing operations
attributable to common shareholders (GAAP)
$
70.3
$
43.6
61.2
%
Net income margin (GAAP)
12.9
%
9.0
%
Adjustments to net income:
Interest expense, net
3.8
4.1
Income tax expense
15.6
16.1
Depreciation
8.7
8.0
Amortization
4.8
2.0
Miscellaneous income, net
(3.5
)
(1.4
)
Repositioning related charges, net
2.8
1.4
Transaction related expenses(a)(b)
5.4
6.0
Adjusted EBITDA (Non-GAAP)
$
107.9
$
79.8
35.2
%
Adjusted EBITDA Margin (Non-GAAP)
19.8
%
16.5
%
(a) 2024 transaction-related expenses are
primarily associated with the Technifab acquisition and the
divestiture of the Engineered Materials business.
(b) 2023 transaction-related expenses are
primarily associated with the separation and the Baum
acquisition.
Totals may not sum due to rounding
CRANE COMPANY
Non-GAAP Financial
Measures
(in millions, except per share
data)
Twelve Months Ended December
31,
2024
2023
% Change
$
Per Share
$
Per Share
(on $)
Net sales (GAAP)
$
2,131.2
$
1,862.1
14.5
%
Adjusted Operating Profit and Adjusted
Operating Profit Margin
Operating profit (GAAP)
$
355.8
$
250.4
42.1
%
Operating profit margin (GAAP)
16.7
%
13.4
%
Special items impacting operating
profit:
Transaction related expenses(a)(b)
23.7
42.8
Repositioning related charges, net
3.5
3.8
Adjusted operating profit (Non-GAAP)
$
383.0
$
297.0
29.0
%
Adjusted operating profit margin
(Non-GAAP)
18.0
%
15.9
%
Adjusted Net Income and Adjusted Net
Income per Share
Net income from continuing operations
attributable to common shareholders (GAAP)
$
268.2
$
4.60
$
175.9
$
3.06
52.5
%
Transaction related expenses(a)(b)
18.7
0.32
39.6
0.69
Repositioning related charges, net
3.5
0.06
3.8
0.06
Impact of pension non-service costs
—
—
4.0
0.07
Interest expense
—
—
5.9
0.10
Tax effect of the Non-GAAP adjustments
(6.0
)
(0.10
)
(10.6
)
(0.18
)
Adjusted net income (Non-GAAP)
$
284.4
$
4.88
$
218.6
$
3.80
30.1
%
Adjusted EBITDA and Adjusted EBITDA
Margin
Net income from continuing operations
attributable to common shareholders (GAAP)
$
268.2
$
175.9
52.5
%
Net income margin (GAAP)
12.6
%
9.4
%
Adjustments to net income:
Interest expense, net
21.7
17.6
Income tax expense
70.3
57.2
Depreciation
33.4
29.3
Amortization
17.6
6.1
Miscellaneous income, net
(4.4
)
(0.3
)
Repositioning related charges, net
3.5
3.8
Transaction related expenses(a)(b)
16.4
42.5
Adjusted EBITDA (Non-GAAP)
$
426.7
$
332.1
28.5
%
Adjusted EBITDA Margin (Non-GAAP)
20.0
%
17.8
%
(a) 2024 transaction-related expenses are
primarily associated with the Vian, CryoWorks, and Technifab
acquisitions and the divestiture of the Engineered Materials
business.
(b) 2023 transaction-related expenses are
primarily associated with the separation and the Baum
acquisition.
Totals may not sum due to rounding
CRANE COMPANY Non-GAAP
Financial Measures by Segment
(unaudited, in millions)
Three Months Ended December 31,
2024
Aerospace &
Electronics
Process Flow
Technologies
Corporate
Total Company
Net sales
$
236.8
$
307.3
$
—
$
544.1
Operating profit (GAAP)
$
53.1
$
58.4
$
(25.3
)
$
86.2
Operating profit margin (GAAP)
22.4
%
19.0
%
15.8
%
Special items impacting operating
profit:
Transaction related expenses(a)
1.3
1.8
4.3
7.4
Repositioning related charges, net
0.3
2.3
0.2
2.8
Adjusted operating profit (Non-GAAP)
$
54.7
$
62.5
$
(20.8
)
$
96.4
Adjusted operating profit margin
(Non-GAAP)
23.1
%
20.3
%
17.7
%
Three Months Ended December 31,
2023
Net sales
$
212.8
$
271.5
$
—
$
484.3
Operating profit (GAAP)
$
42.9
$
43.4
$
(23.9
)
$
62.4
Operating profit margin (GAAP)
20.2
%
16.0
%
12.9
%
Special items impacting operating
profit:
Transaction related expenses(b)
—
1.3
5.0
$
6.3
Repositioning related charges, net
—
1.4
—
$
1.4
Adjusted operating profit (Non-GAAP)
$
42.9
$
46.1
$
(18.9
)
$
70.1
Adjusted operating profit margin
(Non-GAAP)
20.2
%
17.0
%
14.5
%
(a) 2024 transaction-related expenses are
primarily associated with the Technifab acquisition and the
divestiture of the Engineered Materials business.
(b) 2023 transaction-related expenses are
primarily associated with the separation and the Baum
acquisition.
Totals may not sum due to rounding
CRANE COMPANY
Non-GAAP Financial Measures by
Segment
(in millions)
Twelve Months Ended December 31,
2024
Aerospace &
Electronics
Process Flow
Technologies
Corporate
Total Company
Net sales
$
932.7
$
1,198.5
$
—
$
2,131.2
Operating profit (GAAP)
$
209.0
$
240.3
$
(93.5
)
$
355.8
Operating profit margin (GAAP)
22.4
%
20.1
%
16.7
%
Special items impacting operating
profit:
Transaction related expenses(a)
7.3
6.6
9.8
23.7
Repositioning related charges , net
0.3
3.0
0.2
3.5
Adjusted operating profit (Non-GAAP)
$
216.6
$
249.9
$
(83.5
)
$
383.0
Adjusted operating profit margin
(Non-GAAP)
23.2
%
20.9
%
18.0
%
Twelve Months Ended December 31,
2023
Net sales
$
789.3
$
1,072.8
$
—
$
1,862.1
Operating profit (GAAP)
$
159.0
$
208.5
$
(117.1
)
$
250.4
Operating profit margin (GAAP)
20.1
%
19.4
%
13.4
%
Special items impacting operating
profit:
Transaction related expenses(b)
—
1.3
41.5
42.8
Repositioning related charges, net
—
3.8
—
3.8
Adjusted operating profit (Non-GAAP)
$
159.0
$
213.6
$
(75.6
)
$
297.0
Adjusted operating profit margin
(Non-GAAP)
20.1
%
19.9
%
15.9
%
(a) 2024 transaction-related expenses are
primarily associated with the Vian, CryoWorks, and Technifab
acquisitions and the divestiture of the Engineered Materials
business.
(b) 2023 transaction-related expenses are
primarily associated with the separation and the Baum
acquisition.
Totals may not sum due to rounding
CRANE COMPANY Adjusted Free
Cash Flow
(unaudited, in millions, except
per share data)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
Cash Flow Items
2024
2023
2024
2023
Cash provided by operating activities from
continuing operations
$
202.0
$
141.9
$
257.8
$
162.1
Less: Capital expenditures
(13.8
)
(11.6
)
(36.6
)
(39.0
)
Free cash flow
$
188.2
$
130.3
$
221.2
$
123.1
Adjustments:
Transaction-related expenses
3.9
5.0
11.4
41.5
Proceeds from insurance recoveries for
damaged property, plant and equipment
1.0
—
1.0
—
Adjusted free cash flow from continuing
operations
$
193.1
$
135.3
$
233.6
$
164.6
Free cash flow from Engineered
Materials
6.5
16.4
11.8
27.8
Adjusted free cash flow
$
199.6
$
151.7
$
245.4
$
192.4
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 Profit
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 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 acquisitions, the
separation transaction, and insurance proceeds related to damaged
property, plant and equipment caused by natural disasters and
including Free Cash Flow from Engineered Materials. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250127136917/en/
Jason D. Feldman Senior Vice President, Investor Relations,
Treasury & Tax Allison Poliniak-Cusic Vice President, Investor
Relations IR@craneco.com www.craneco.com
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