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Sep 30, 2023

Crane Q3 2023 Earnings Report

Reported strong Q3 2023 results, driven by core sales growth and margin improvement.

Key Takeaways

Crane Company reported a strong third quarter in 2023, with a 10% increase in sales and a 42% increase in adjusted operating profit. The company is raising and narrowing its adjusted EPS guidance for the full year to $4.05-$4.20.

Earnings from continuing operations per diluted share (EPS) of $0.96 and adjusted EPS of $1.03.

Core year-over-year sales growth of 9% and core year-over-year backlog growth of 7%.

Year-over-year growth in operating profit from continuing operations of 165%, and year-over-year growth in adjusted operating profit from continuing operations of 42%.

Announced acquisition of Baum lined piping GmbH for approximately $91 million as a strategic bolt-on for the Chemical business within the Process Flow Technologies segment.

Total Revenue
$530M
Previous year: $815M
-35.0%
EPS
$1.03
Previous year: $1.86
-44.6%
Core Sales Growth
9%
Gross Profit
$203M
Previous year: $330M
-38.3%
Cash and Equivalents
$274M
Previous year: $242M
+13.0%
Free Cash Flow
$78M
Total Assets
$2.19B

Crane

Crane

Crane Revenue by Segment

Forward Guidance

Crane is raising and narrowing its adjusted EPS guidance to a range of $4.05 to $4.20.

Positive Outlook

  • Total sales growth of approximately 7.5% driven by core sales growth of approximately 6% to 8%.
  • Acquisition benefit of approximately 0.5%.
  • Adjusted operating margin of ~15.5%.
  • Adjusted tax rate of ~23% (unchanged).
  • Diluted shares of ~57.5 million.

Challenges Ahead

  • Corporate cost of ~$72 million.
  • Net non-operating expense of ~$16 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income