Crane Company Reports Third Quarter 2026 Results, Raises and Narrows Full Year Adjusted EPS Guidance

Third Quarter 2026 Highlights

• Earnings per diluted share (EPS) from continuing operations of $1.66, up 6% compared to a year ago, and adjusted EPS from continuing operations a record $2.05, up 23%.
• Total sales of $754.6 million increased 28.1% compared to the prior year, driven by core growth of 7.7%, reflecting momentum at Aerospace & Advanced Technologies (AAT) with core growth of 9.5% and strengthening performance at Process Flow Technologies (PFT) with core growth of 6.2%.
• Total company core backlog increased 9% year-over-year, reflecting healthy demand across both segments, with AAT and PFT core backlog increasing 9% and 8% year-over-year, respectively.
• Operating profit increased 18.8%, and adjusted operating profit increased 35.8%, with operating margin of 18.6% down 150bps and record adjusted operating margin of 22.5% up 130bps year-over-year.
• Acquisitions completed earlier this year are performing well ahead of expectations, adding to the strong sales and margin in the third quarter and increasing accretion expected for the full year.
• Continued progress reshaping the PFT portfolio with the announcement today of an agreement to divest the UK-based Crane Building Services & Utilities business, which follows the recently announced agreement to acquire the U.S. water/wastewater pump business from Trillium Flow Technologies.
• Declaring fourth quarter 2026 regular dividend of $0.255 per share.

Full Year Outlook

• Raising and narrowing full-year adjusted EPS outlook to a range of $7.23-$7.38, from $6.85-$7.05, reflecting broad-based outperformance.

STAMFORD, Conn.--(BUSINESS WIRE)--Crane Company ("Crane," NYSE: CR) today announced its financial results for the third quarter of 2026 and raised its full-year adjusted EPS outlook.

Alex Alcala, Crane's President and Chief Executive Officer, stated: "We delivered another exceptional quarter, with strong performance across both AAT and PFT. AAT continued its strong momentum with 9.5% core sales growth, while PFT delivered 6.2% core sales growth and particularly strong core order growth of 19.7%. The strengthening performance in PFT, continued momentum in AAT, and significant outperformance from our recent acquisitions drove record adjusted EPS of $2.05, setting us up for a record full-year outlook.

“We enter the fourth quarter with strong momentum across both segments and are increasingly well positioned as we look toward 2027. With core backlog up 9%, strong PFT order trends, sustained momentum in AAT and recent acquisitions performing significantly ahead of our expectations, we are raising and narrowing our full-year adjusted EPS guidance to $7.23-$7.38.”

Alex Alcala concluded: “At the same time, we continue to take decisive actions to improve the quality of the PFT portfolio. We recently signed an agreement to divest Crane Building Services & Utilities for £230 million. This divestiture, together with the recently announced agreement to acquire the U.S. water and wastewater pump business of Trillium Flow Technologies, represents important steps in our ongoing transformation of PFT. While Crane Building Services & Utilities is a strong business, its focus is no longer aligned with the strategic direction of our PFT portfolio. These actions further concentrate PFT around highly engineered, mission-critical products and technologies serving attractive and durable growth markets, including pharmaceuticals, water and wastewater, power, cryogenics and nuclear. Both transactions are subject to customary approvals, with the acquisition of the U.S. water and wastewater pump business of Trillium Flow Technologies expected to close in Q4 and the divestiture of Crane Building Services & Utilities expected to close early in 2027."

Third Quarter 2026 Results

Third quarter 2026 GAAP EPS from continuing operations of $1.66 compared to $1.56 in the third quarter of 2025. Third quarter 2026 adjusted EPS from continuing operations of $2.05 compared to $1.67 in the third quarter of 2025. Third quarter 2026 sales increased 28.1% year-over-year, with 7.7% core sales growth and 21.1% contribution from acquisitions partially offset by a 0.4% headwind from foreign exchange. Operating profit of $140.6 million increased 18.8% compared to last year, reflecting strong operating performance across the business. Adjusted operating profit of $169.9 million increased 35.8%.

Note that adjusted net sales, adjusted operating profit and adjusted EPS excludes all impact from tariff recoveries. (Please see the attached non-GAAP Financial Measures tables.)

Summary of Third Quarter 2026 Results

Cash Flow, Financing Activities and Other Financial Metrics

During the third quarter of 2026, cash generated from operating activities from continuing operations was $128.4 million, capital expenditures were $12.1 million, and free cash flow (cash provided by operating activities less capital expenditures) was $116.3 million. Adjusted free cash flow from continuing operations was $126.4 million. (Please see the attached non-GAAP Financial Measures tables.)

As of September 30, 2026, the Company's cash balance was $315.7 million with total debt outstanding of $928.5 million.

Third Quarter 2026 Segment Results

All comparisons detailed in this section refer to operating results for the third quarter 2026 versus the third quarter 2025.

Aerospace & Advanced Technologies

Sales of $344.1 million increased 27.4% compared to the prior year, driven primarily by 9.5% core sales growth and a 17.9% contribution from the acquisition of Druck. Operating profit margin of 24.8% declined 30 basis points year-over-year, primarily reflecting the expected dilution from the Druck acquisition. Adjusted operating profit margin of 26.3% expanded 100 basis points compared to a year ago, primarily reflecting the impact of the higher organic growth and strong net price, partially offset by the expected dilution from Druck.

Process Flow Technologies

Sales of $410.5 million increased 28.7% compared to the prior year and adjusted net sales increased 29.3% driven by 6.2% core sales growth and a 23.9% contribution from the previously announced acquisitions of optek-Danulat, Panametrics, and Reuter-Stokes, partially offset by unfavorable foreign exchange. Operating profit margin of 19.7% decreased 250bps compared to the prior year, primarily reflecting the expected dilution from acquisitions, inclusive of integration costs. Adjusted operating profit margin was 24.0%, up 80 basis points compared to a year ago, reflecting the impact of the higher core sales growth, higher net price, and strong productivity, partially offset by the expected operating dilution from acquisitions.

Raising 2026 Guidance

We are raising and narrowing our full-year adjusted EPS outlook to $7.23-$7.38 from $6.85-$7.05.

Key assumptions for our guidance:

• Total sales are expected to increase approximately 26% at the midpoint, supported by acquisition contributions and core sales growth that are now both expected to perform at the high end of their respective previous guidance ranges of 18% to 20% and 5% to 6%.
• Adjusted segment operating margin of approximately 24.0%, up from our prior view of 23.0%+.
• Corporate cost of approximately $80-$85 million.
• Net non-operating expense of approximately $58 million.
• Adjusted tax rate of approximately 23.0%.
• 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 Fourth Quarter Dividend

Crane announced its regular quarterly dividend of $0.255 per share for the fourth quarter of 2026. The dividend is payable on December 9, 2026 to shareholders of record as of November 30, 2026.

Additional Information

References to changes in “core sales” or "core sales growth" in this report include the change in sales excluding the impact of foreign currency translation, as well as acquisitions and divestitures from the date of closing up to the first anniversary of such acquisitions or divestitures and certain other special items.

References to changes in "adjusted net sales" or "adjusted net sales growth" in this report excludes the impact of tariff refunds paid to customers.

References to changes in “core backlog” or "core backlog growth" in this report include the change in backlog excluding the impact of foreign currency translation, as well as acquisitions and divestitures from the date of closing up to the first anniversary of such acquisitions or divestitures.

Conference Call

Crane has scheduled a conference call to discuss the third quarter financial results on Wednesday, October 28, 2026 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 & Advanced Technologies and Process Flow Technologies. Crane has approximately 8,300 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 Druck, Panametrics and Reuter-Stokes, and optek-Danulat acquisitions; the agreement to acquire the U.S. water and wastewater pump business from Trillium Flow Technologies; the agreement to divest Crane Building Services & Utilities; 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 tariffs) and geopolitical risks, including macroeconomic fluctuations that may harm our business, results of operation and stock price; being unable to identify or complete acquisitions, or to successfully integrate the businesses we acquire, or complete dispositions; information systems and technology network 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 unable 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.; 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 & Advanced Technologies, 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, 2025 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. The forward-looking statements contained in this press release are made as of the date hereof, and 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)

Allison Poliniak-Cusic
Vice President, Investor Relations
IR@craneco.com
www.craneco.com