Q1 2025 Crane Co Earnings Call Transcript
Key Points
- Crane Co (CR) reported a strong start to 2025 with an adjusted EPS of $1.39, driven by a 7.5% core sales growth.
- Core orders increased by 16% in the quarter, primarily due to strong performance in the Aerospace and Electronics segment.
- The company reaffirmed its full-year 2025 adjusted EPS outlook in the range of $5.30 to $5.60, indicating confidence in its strategic direction.
- Crane Co (CR) has a robust pipeline of potential acquisitions and a strong balance sheet with $1.5 billion in M&A capacity.
- The Aerospace and Electronics segment achieved a record backlog of $960 million, with a 21% year-over-year increase.
- Recent economic developments and policy decisions have introduced uncertainty, potentially affecting the company's outlook for the remainder of the year.
- The company faces tariff exposure, with about 7% to 8% of its cost of goods sold affected by direct imports into the United States.
- There is a potential risk of demand fluctuations in the chemical sector, with some project activities expected to shift to the right.
- The company anticipates a deceleration in year-over-year growth rate in the commercial aftermarket segment as comparisons become more challenging.
- Supply chain disruptions, particularly in the Aerospace segment, could lead to extended lead times as companies adjust their supply chains.
(Operator Instructions) Welcome to the Crane Company first-quarter 2025 earnings conference call. (Operator Instructions) I would now like to turn the conference over to Allison Poliniak, Vice President of Investor Relations.
Thank you, operator, and good day, everyone. Welcome to our first-quarter 2025 earnings release conference call. I'm Allison Poliniak, Vice President of Investor Relations.
On our call this morning we have Max Mitchell, our Chairman, President, and Chief Executive Officer; Alex Alcala, Executive Vice President and Chief Operating Officer; and Rich Maue, our Executive Vice President and Chief Financial Officer; along with Jason Feldman, Senior Vice President, Treasury Tax and Investor Relations, who's on for Q&A. We will start off our public with a few prepared remarks from Max, Alex, and Rich, after which we will respond to your question.
And just a reminder, the comments we make on this call will include some forward-looking statements. We refer you to
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