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Sep 30, 2024

Crane Q3 2024 Earnings Report

Reported excellent third quarter results with adjusted EPS growth driven by core sales growth.

Key Takeaways

Crane Company reported a strong third quarter in 2024, with a 13% increase in sales and a 34% increase in adjusted EPS. The company is raising its full-year adjusted EPS outlook to $5.05-$5.20.

Earnings per diluted share (EPS) of $1.33, up 39%, and adjusted EPS of $1.38, up 34%.

Sales of $597 million, up 13% driven by 6% core sales growth.

Core order growth up 6% and core backlog growth up 10%, driven primarily by ongoing strength at Aerospace & Electronics.

Raising and narrowing full year adjusted EPS outlook to a range of $5.05-$5.20, up from $4.95-$5.15.

Total Revenue
$597M
Previous year: $530M
+12.7%
EPS
$1.38
Previous year: $1.03
+34.0%
Core Sales Growth
6%
Previous year: 9%
-33.3%
Operating Profit Margin
17.6%
Adjusted Operating Profit Margin
18.3%
Gross Profit
$238M
Previous year: $203M
+17.1%
Cash and Equivalents
$258M
Previous year: $274M
-5.7%
Free Cash Flow
$72.7M
Previous year: $78M
-6.8%
Total Assets
$2.65B
Previous year: $2.19B
+21.0%

Crane

Crane

Crane Revenue by Segment

Forward Guidance

Crane is raising and narrowing its full-year adjusted EPS outlook to a range of $5.05 to $5.20.

Positive Outlook

  • Total sales growth of approximately 11% (unchanged).
  • Core sales growth of approximately 5% to 7% (unchanged, but now expected to be at the higher end of the range).
  • Acquisition benefit of approximately 5% (unchanged).
  • Adjusted segment operating margin of ~20.8% (up from 20.7%).
  • Adjusted tax rate of 22.5% (prior 23.0%).

Challenges Ahead

  • Corporate cost of $80 million (unchanged).
  • Net non-operating expense of $20 million (unchanged).
  • Diluted shares of ~58 million (unchanged).
  • Includes the negative impact from the production downtime resulting from Hurricane Helene.
  • Free cash flow to fall at the lower end of estimated $255-$275 million range, primarily due to working capital headwinds commercial aerospace suppliers are facing, now coupled with the timing of hurricane-related insurance recoveries.

Revenue & Expenses

Visualization of income flow from segment revenue to net income