Latest news with #Crane
New York Times
a day ago
- Business
- New York Times
Padres' Dylan Cease has become a prime trade target for injury-depleted Astros
Houston Astros owner Jim Crane fancies star power. San Diego Padres right-hander Dylan Cease is one of the biggest stars available on the trade market. Perhaps it should come as no surprise, then, that Cease is at the top of the Astros' wish list as the trade deadline nears, according to sources briefed on the team's discussions. Advertisement Cease, 29, would stabilize the Astros' injury-depleted rotation for the rest of the season, and join All-Star right-hander Hunter Brown and left-hander Framber Valdez to give the team a potentially dominant trio in a postseason series. The Astros, while dealing with lingering injuries to designated hitter Yordan Alvarez, All-Star shortstop Jeremy Pena and All-Star third baseman Isaac Paredes, also are in the market for a hitter. The names under consideration include Minnesota Twins infielder Willi Castro, Miami Marlins outfielder Jesús Sánchez and Arizona Diamondbacks outfielder Jake McCarthy, sources said. But for Crane, an owner who traded twice for Justin Verlander and once for Zack Greinke and tried to acquire Blake Snell and Josh Hader from the Padres during the 2023 deadline, Cease surely is a more interesting target. The challenge for the Astros in acquiring Cease might be finding a suitable match with the Padres, who are only interested in trading the pitcher if they can improve their current major-league roster. Acquiring Cease and the remainder of his $13.75 million salary also would almost assure the Astros will cross the luxury tax for a second consecutive season. This winter, multiple team sources indicated Crane had no interest in paying the tax. Sending setup man Ryan Pressly to the Chicago Cubs in a salary dump and shipping part of Rafael Montero's bloated contract to the Atlanta Braves confirmed it. General manager Dana Brown acknowledged the Montero move was made for financial flexibility. Crane, however, has been known to buck his precedents for players that can provide meaningful improvement to his major-league team. Trading for Greinke was one example. Perhaps Cease could be another. With a league-leading 17 players on the injured list, the Astros would prefer not to trade young, controllable major leaguers. Yet their farm system, according to The Athletic's Keith Law, ranks 29th in the league. Advertisement Cease, who is eligible for free agency at the end of the season, would be a rental. The Astros made a similar trade at last year's deadline, sending pitcher Jake Bloss, outfielder Joey Loperfido and infielder Will Wagner to the Toronto Blue Jays for left-hander Yusei Kikuchi. At the time, Kikuchi had a 4.75 ERA in 115 2/3 innings. The Astros, who excel at maximizing pitching talent, encouraged Kikuchi to simplify his repertoire, and lean more heavily on his four-seam fastball and slider. Kikuchi had a 2.70 in 10 starts with Houston, then signed a three-year, $63 million free-agent contract with the Los Angeles Angels. Cease, a top-five Cy Young finisher in two of the past three seasons, likely requires less of an overhaul. His 4.79 ERA would be the highest of his career. But his expected ERA is 3.53, and his underlying numbers hint at better performance going forward. At 97.1 mph, Cease's average fastball velocity ranks in the top 12 percent of the league. His 29.9 strikeout rate is in the top 10 percent, and his highest since 2022, when he was the runner-up for the AL Cy Young. His 9.2 percent walk rate is the second lowest of his career. The Astros expect the returns of right-handers Spencer Arrighetti, Luis Garcia, Cristian Javier and J.P. France from lengthy, injury-related absences in August. Arrighetti is the closest of the quartet to a major-league return, perhaps after his minor-league rehab start on Thursday with Triple-A Sugar Land. The production the Astros will receive from each of those pitchers, however, is uncertain. Cease is more of a sure thing. The Astros scouted his start last Wednesday in Miami, when he pitched against another trade candidate, right-hander Sandy Alcantara. Cease that night allowed two runs in five innings. At the moment, the 2025 line on the back of his baseball card isn't terribly appealing. But Crane's history suggests the name and track record might be enough. (Top photo of Dylan Cease:)
Yahoo
2 days ago
- Business
- Yahoo
Crane (NYSE:CR) Posts Better-Than-Expected Sales In Q2
Industrial conglomerate Crane (NYSE:CR) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 9.2% year on year to $577.2 million. Its non-GAAP profit of $1.49 per share was 11.7% above analysts' consensus estimates. Is now the time to buy Crane? Find out in our full research report. Crane (CR) Q2 CY2025 Highlights: Revenue: $577.2 million vs analyst estimates of $570.4 million (9.2% year-on-year growth, 1.2% beat) Adjusted EPS: $1.49 vs analyst estimates of $1.33 (11.7% beat) Adjusted EBITDA: $121.9 million vs analyst estimates of $118 million (21.1% margin, 3.3% beat) Management raised its full-year Adjusted EPS guidance to $5.65 at the midpoint, a 3.7% increase Operating Margin: 17.8%, in line with the same quarter last year Free Cash Flow Margin: 15.4%, up from 10.3% in the same quarter last year Organic Revenue rose 6.5% year on year (9% in the same quarter last year) Market Capitalization: $10.97 billion Max Mitchell, Crane's Chairman, President and Chief Executive Officer, stated: "My thanks and appreciation to the global Crane team for delivering another excellent quarter, with 24% adjusted EPS growth on 6.5% core sales growth resulting from our focus on exceeding our customers' expectations with exceptional technology and service. Demand trends across our strategic growth platforms remained strong in the quarter, with 19.6% year-over-year core order growth and 18.2% year-over-year core backlog growth." Company Overview Based in Connecticut, Crane (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Crane's demand was weak over the last five years as its sales fell at a 6.1% annual rate. This wasn't a great result and is a sign of poor business quality. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Crane's annualized revenue growth of 5.8% over the last two years is above its five-year trend, but we were still disappointed by the results. We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Crane's organic revenue averaged 7% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Crane reported year-on-year revenue growth of 9.2%, and its $577.2 million of revenue exceeded Wall Street's estimates by 1.2%. Looking ahead, sell-side analysts expect revenue to grow 6.8% over the next 12 months, similar to its two-year rate. Although this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Crane has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 12.7%. This result isn't surprising as its high gross margin gives it a favorable starting point. Looking at the trend in its profitability, Crane's operating margin rose by 3.9 percentage points over the last five years, showing its efficiency has improved. In Q2, Crane generated an operating margin profit margin of 17.8%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Crane's EPS grew at a weak 3% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 6.1% annualized revenue declines and tells us management adapted its cost structure in response to a challenging demand environment. Diving into the nuances of Crane's earnings can give us a better understanding of its performance. As we mentioned earlier, Crane's operating margin was flat this quarter but expanded by 3.9 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Crane, its two-year annual EPS declines of 6.7% show it's continued to underperform. These results were bad no matter how you slice the data. In Q2, Crane reported EPS at $1.49, up from $1.30 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Crane's full-year EPS of $5.52 to grow 6.5%. Key Takeaways from Crane's Q2 Results It was great to see Crane' raise its full-year EPS guidance. We were also happy its revenue, EPS, and EBITDA outperformed Wall Street's estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 4.5% to $198.50 immediately following the results. Indeed, Crane had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Business Wire
2 days ago
- Business
- Business Wire
Crane Company Reports Second Quarter 2025 Results and Raises Full Year Adjusted EPS Guidance
STAMFORD, Conn.--(BUSINESS WIRE)--Crane Company ("Crane," NYSE: CR) today announced its financial results for the second quarter of 2025 and raised its full-year adjusted EPS outlook. Max Mitchell, Crane's Chairman, President and Chief Executive Officer, stated: "My thanks and appreciation to the global Crane team for delivering another excellent quarter, with 24% adjusted EPS growth on 6.5% core sales growth resulting from our focus on exceeding our customers' expectations with exceptional technology and service. Demand trends across our strategic growth platforms remained strong in the quarter, with 19.6% year-over-year core order growth and 18.2% year-over-year core backlog growth. "The strength of our underlying businesses, our strategy, and our capabilities in both operational execution and commercial excellence, coupled with a strong balance sheet, positions us extremely well to continue driving above market growth organically and complemented by acquisitions. "Additionally, during the second quarter, as previously announced, we signed an agreement to acquire PSI from Baker Hughes. This acquisition adds highly sophisticated sensor-based technologies to our portfolio for mission critical applications in harsh and hazardous environments across aerospace, nuclear, and process markets. We believe that PSI's capabilities and market positions, paired with our operational and commercial capabilities, create a highly compelling value creation opportunity for our shareholders. We are incredibly excited about this pending acquisition that is expected to close at year-end, and integration planning is well underway and progressing smoothly. We also remain well positioned to execute our disciplined and process-driven capital deployment strategy with further balance sheet optionality and a robust funnel of acquisition opportunities. "Overall, our teams continue to execute extremely well. While the macroeconomic backdrop remains unpredictable, our backlog, consistently strong execution, along with our performance year-to-date, gives us the confidence to raise our full-year adjusted earnings outlook to a range of $5.50-$5.80, up from our prior view of $5.30-$5.60." Second Quarter 2025 Results Second quarter 2025 GAAP EPS from continuing operations of $1.37 compared to $1.14 in the second quarter of 2024. Second quarter 2025 adjusted EPS from continuing operations of $1.49 compared to $1.20 in the second quarter of 2024. Second quarter sales increased 9.2%, with 6.5% core sales growth, a 1.8% contribution from acquisitions, and a 0.9% benefit from foreign exchange. Operating profit of $102.9 million increased 15.2% compared to last year, and adjusted operating profit of $109.3 million increased 14.7% compared to last year, in both cases primarily reflecting the impact of higher productivity. Summary of Second Quarter 2025 Results Cash Flow, Financing Activities and Other Financial Metrics During the second quarter of 2025, cash generated from operating activities from continuing operations was $105.0 million, capital expenditures were $16.1 million, and free cash flow (cash provided by operating activities less capital spending) was $88.9 million. Adjusted free cash flow from continuing operations (free cash flow excluding transaction related cash outflows) was $93.3 million. (Please see the attached non-GAAP Financial Measures tables.) As of June 30, 2025, the Company's cash balance was $332.2 million with total debt of $47.2 million. Rich Maue, Crane's Executive Vice President and Chief Financial Officer, added: "We executed on our disciplined inorganic growth strategy in the quarter with the announced agreement to acquire PSI. This transaction meets all of Crane's strategic and financial criteria, including a 10% ROIC by year five. We believe that the strong fit of PSI with our existing business, combined with our consistently differentiated execution, will drive attractive financial returns. "Following the acquisition, we estimate that Crane will have a net debt to adjusted EBITDA ratio of approximately 1x, leaving us with substantial capacity for further acquisitions. M&A activity levels remain robust despite heightened economic and trade related uncertainty. Opportunities are spread across both Aerospace & Electronics and Process Flow Technologies, and include high quality assets in a wide range of sizes. We continue to look forward to putting our balance sheet to work over the course of the next few quarters." Second Quarter 2025 Segment Results All comparisons detailed in this section refer to operating results for the second quarter 2025 versus the second quarter 2024. Aerospace & Electronics Sales of $258.2 million increased 11.8% compared to the prior year, driven by 11.6% core sales growth and a slight benefit from favorable foreign exchange. The strength was driven primarily by the segment's aftermarket, up 17.9% in the quarter. Operating profit margin of 26.3% increased 350 basis points from last year, primarily reflecting the impact of productivity, favorable mix, higher volumes, and higher price net of inflation. Adjusted operating profit margin of 26.3% increased 250 basis points from last year. Aerospace & Electronics' order backlog was $1,052.8 million as of June 30, 2025 compared to $960.1 million as of March 31, 2025, and $814.9 million as of June 30, 2024. Process Flow Technologies Sales of $319.0 million increased 7.2% compared to the prior year, driven by 2.6% core sales growth, a 3.2% contribution from the previously announced CryoWorks and Technifab acquisitions, and a 1.4% benefit from favorable foreign exchange. Operating profit margin of 20.0% was flat compared to the prior year. Adjusted operating profit margin was 20.7% up 20 basis points compared to a year ago primarily due to productivity. Process Flow Technologies order backlog was $403.1 million as of June 30, 2025 compared to $389.9 million as of March 31, 2025, and $399.9 million as of June 30, 2024. Raising 2025 Guidance We are raising our full-year adjusted EPS outlook range to $5.50-$5.80, up from $5.30 to $5.60, and up 16% at the mid-point over 2024. Key assumptions for our guidance include: Total sales growth of approximately 6.5% (up from approximately 5%), driven by core sales growth of approximately 4% to 6%. Adjusted segment operating margin of 22.5%+ (unchanged). Corporate cost of $80 million (unchanged). Net non-operating income of $4 million (up from a $10 million expense). Adjusted tax rate of 23.5% (unchanged). Diluted shares of ~59 million (unchanged). Additional details of our outlook and guidance are included in the presentation that accompanies this earnings release available on our website at in the "investors" section. Declaring Third Quarter Dividend Crane announced its regular quarterly dividend of $0.23 per share for the third quarter of 2025. The dividend is payable on September 10, 2025 to shareholders of record as of August 29, 2025. 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 and acquisitions and divestitures from closing up to the first anniversary of such acquisitions or divestitures. Conference Call Crane has scheduled a conference call to discuss the second quarter financial results on Tuesday, July 29, 2025 at 10:00 A.M. (Eastern). All interested parties may listen to a live webcast of the call at 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 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 new tariffs) and geopolitical risks, including macroeconomic fluctuations that may harm our business, results of operation and stock price; 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.; 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, 2024 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) CRANE COMPANY Condensed Balance Sheets (unaudited, in millions) June 30, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 332.2 $ 306.7 Accounts receivable, net 383.7 339.1 Inventories, net 402.2 380.4 Other current assets 127.5 159.1 Current assets held for sale — 217.9 Total current assets 1,245.6 1,403.2 Property, plant and equipment, net 275.2 261.3 Other assets 310.9 315.8 Goodwill 684.9 661.6 Total assets $ 2,516.6 $ 2,641.9 Liabilities and Equity Current liabilities Current maturities of long-term debt $ 47.2 $ — Accounts payable 149.1 188.2 Accrued liabilities 224.4 303.2 Income taxes 4.8 7.9 Current liabilities held for sale — 44.1 Total current liabilities 425.5 543.4 Long-term debt — 247.0 Long-term deferred tax liability 38.5 34.8 Other liabilities 164.0 175.7 Total liabilities 628.0 1,000.9 Total equity 1,888.6 1,641.0 Total liabilities and equity $ 2,516.6 $ 2,641.9 Expand CRANE COMPANY Condensed Statements of Cash Flows (unaudited, in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Operating activities: Net income attributable to common shareholders $ 86.4 $ 71.6 $ 193.5 $ 136.4 Less: Income from discontinued operations, net of tax 6.1 5.3 34.9 11.3 Net income from continuing operations attributable to common shareholders 80.3 66.3 158.6 125.1 Depreciation and amortization 13.1 12.8 25.6 24.7 Stock-based compensation expense 10.6 6.8 19.9 13.3 Defined benefit plans and postretirement cost 2.1 0.8 4.1 1.6 Deferred income taxes — — — (3.1 ) Cash provided by (used for) operating working capital 5.5 (28.2 ) (140.9 ) (171.2 ) Defined benefit plans and postretirement contributions (5.6 ) (5.4 ) (6.2 ) (6.0 ) Environmental payments, net of reimbursements (0.6 ) (1.4 ) (1.7 ) (2.8 ) Other (0.4 ) (0.4 ) (0.6 ) (1.2 ) Total provided by (used for) operating activities from continuing operations 105.0 51.3 58.8 (19.6 ) Investing activities: Payment for acquisitions - net of cash acquired and working capital adjustments — (60.7 ) (0.2 ) (166.3 ) Capital expenditures (16.1 ) (6.7 ) (30.3 ) (14.7 ) Other investing activities 0.2 5.5 0.2 5.7 Total used for investing activities from continuing operations (15.9 ) (61.9 ) (30.3 ) (175.3 ) Financing activities: Dividends paid (13.2 ) (11.7 ) (26.4 ) (23.4 ) Net payments related to employee stock plans 1.5 3.4 (8.9 ) (5.1 ) Proceeds from debt — 50.0 — 190.0 Repayments of debt (200.0 ) (30.0 ) (200.0 ) (61.9 ) Total (used for) provided by financing activities from continuing and discontinued operations (211.7 ) 11.7 (235.3 ) 99.6 Discontinued operations: Total used for operating activities — 10.7 — 1.7 Total provided by (used for) investing activities (a) 5.9 (0.7 ) 213.6 (1.8 ) Increase (decrease) in cash and cash equivalents from discontinued operations 5.9 10.0 213.6 (0.1 ) Effect of exchange rate on cash and cash equivalents 13.8 (1.2 ) 18.7 (4.9 ) (Decrease) increase in cash and cash equivalents (102.9 ) 9.9 25.5 (100.3 ) Cash and cash equivalents at beginning of period 435.1 219.4 306.7 329.6 Cash and cash equivalents of continuing operations at end of period $ 332.2 $ 229.3 $ 332.2 $ 229.3 (a) For the three and six months ended June 30, 2025, the cash provided by investing activities from discontinued operations was from the sale of the Engineered Materials segment. Expand CRANE COMPANY Order Backlog (unaudited, in millions) June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Aerospace & Electronics $ 1,052.8 $ 960.1 $ 863.8 $ 833.3 $ 814.9 Process Flow Technologies (a) 403.1 389.9 376.4 392.0 399.9 Total backlog $ 1,455.9 $ 1,350.0 $ 1,240.2 $ 1,225.3 $ 1,214.8 (a) Includes $8.2 million, $9.3 million and $10.4 million of backlog as of June 30, 2025, March 31, 2025 and December 31, 2024, respectively, pertaining to the Technifab acquisition. Expand CRANE COMPANY Non-GAAP Financial Measures (unaudited, in millions, except per share data) Three Months Ended June 30, 2025 2024 % Change $ Per Share $ Per Share (on $) Net sales (GAAP) $ 577.2 $ 528.6 9.2 % Adjusted Operating Profit and Adjusted Operating Profit Margin Operating profit (GAAP) $ 102.9 $ 89.3 15.2 % Operating profit margin (GAAP) 17.8 % 16.9 % Special items impacting operating profit: Transaction related expenses 5.1 5.9 Repositioning related charges, net 1.3 0.1 Adjusted operating profit (Non-GAAP) $ 109.3 $ 95.3 14.7 % Adjusted operating profit margin (Non-GAAP) 18.9 % 18.0 % Adjusted Net Income and Adjusted Net Income per Share Net income from continuing operations attributable to common shareholders (GAAP) $ 80.3 $ 1.37 $ 66.3 $ 1.14 21.1 % Transaction related expenses 5.1 0.09 5.3 0.09 Repositioning related charges, net 1.3 0.02 0.1 — Impact of pension non-service costs 1.2 0.02 (0.4 ) (0.01 ) Tax effect of the Non-GAAP adjustments (1.0 ) (0.01 ) (1.1 ) (0.02 ) Adjusted net income (Non-GAAP) $ 86.9 $ 1.49 $ 70.2 $ 1.20 23.8 % Adjusted EBITDA and Adjusted EBITDA Margin Net income from continuing operations attributable to common shareholders (GAAP) $ 80.3 $ 66.3 21.1 % Net income margin (GAAP) 13.9 % 12.5 % Adjustments to net income: Interest expense, net 1.4 6.1 Income tax expense 24.3 18.2 Depreciation 9.5 8.5 Amortization 3.6 4.3 Miscellaneous income, net (3.1 ) (1.3 ) Repositioning related charges, net 1.3 0.1 Transaction related expenses 4.6 2.5 Adjusted EBITDA (Non-GAAP) $ 121.9 $ 104.7 16.4 % Adjusted EBITDA Margin (Non-GAAP) 21.1 % 19.8 % Totals may not sum due to rounding Expand CRANE COMPANY Non-GAAP Financial Measures (in millions, except per share data) Six Months Ended June 30, 2025 2024 % Change $ Per Share $ Per Share (on $) Net sales (GAAP) $ 1,134.8 $ 1,038.8 9.2 % Adjusted Operating Profit and Adjusted Operating Profit Margin Operating profit (GAAP) $ 204.0 $ 170.6 19.6 % Operating profit margin (GAAP) 18.0 % 16.4 % Special items impacting operating profit: Transaction related expenses 8.0 12.7 Repositioning related charges, net 1.4 0.5 Adjusted operating profit (Non-GAAP) $ 213.4 $ 183.8 16.1 % Adjusted operating profit margin (Non-GAAP) 18.8 % 17.7 % Adjusted Net Income and Adjusted Net Income per Share Net income from continuing operations attributable to common shareholders (GAAP) $ 158.6 $ 2.71 $ 125.1 $ 2.15 26.8 % Transaction related expenses 8.1 0.14 12.1 0.21 Repositioning related charges, net 1.4 0.02 0.5 0.01 Impact of pension non-service costs 2.4 0.04 — — Tax effect of the Non-GAAP adjustments (1.9 ) (0.03 ) (2.6 ) (0.05 ) Adjusted net income (Non-GAAP) $ 168.6 $ 2.88 $ 135.1 $ 2.32 24.8 % Adjusted EBITDA and Adjusted EBITDA Margin Net income from continuing operations attributable to common shareholders (GAAP) $ 158.6 $ 125.1 26.8 % Net income margin (GAAP) 14.0 % 12.0 % Adjustments to net income: Interest expense, net 2.7 12.1 Income tax expense 44.8 33.5 Depreciation 18.3 16.5 Amortization 7.3 8.2 Miscellaneous income, net (2.1 ) (0.1 ) Repositioning related charges, net 1.4 0.5 Transaction related expenses 6.8 9.3 Adjusted EBITDA (Non-GAAP) $ 237.8 $ 205.1 15.9 % Adjusted EBITDA Margin (Non-GAAP) 21.0 % 19.7 % Totals may not sum due to rounding Expand CRANE COMPANY Non-GAAP Financial Measures by Segment (unaudited, in millions) Three Months Ended June 30, 2025 Aerospace & Electronics Process Flow Technologies Corporate Total Company Net sales $ 258.2 $ 319.0 $ — $ 577.2 Operating profit (GAAP) $ 67.9 $ 63.9 $ (28.9 ) $ 102.9 Operating profit margin (GAAP) 26.3 % 20.0 % 17.8 % Special items impacting operating profit: Transaction related expenses — 0.8 4.3 5.1 Repositioning related charges, net 0.1 1.2 — 1.3 Adjusted operating profit (Non-GAAP) $ 68.0 $ 65.9 $ (24.6 ) $ 109.3 Adjusted operating profit margin (Non-GAAP) 26.3 % 20.7 % 18.9 % Three Months Ended June 30, 2024 Net sales $ 230.9 $ 297.7 $ — $ 528.6 Operating profit (GAAP) $ 52.7 $ 59.5 $ (22.9 ) $ 89.3 Operating profit margin (GAAP) 22.8 % 20.0 % 16.9 % Special items impacting operating profit: Transaction related expenses 2.2 1.3 2.4 5.9 Repositioning related charges, net — 0.1 — 0.1 Adjusted operating profit (Non-GAAP) $ 54.9 $ 60.9 $ (20.5 ) $ 95.3 Adjusted operating profit margin (Non-GAAP) 23.8 % 20.5 % 18.0 % Totals may not sum due to rounding Expand CRANE COMPANY Non-GAAP Financial Measures by Segment (in millions) Net sales $ 507.1 $ 627.7 $ — $ 1,134.8 Operating profit (GAAP) $ 132.5 $ 126.7 $ (55.2 ) $ 204.0 Operating profit margin (GAAP) 26.1 % 20.2 % 18.0 % Special items impacting operating profit: Transaction related expenses — 2.3 5.7 8.0 Repositioning related charges , net 0.1 1.3 — 1.4 Adjusted operating profit (Non-GAAP) $ 132.6 $ 130.3 $ (49.5 ) $ 213.4 Adjusted operating profit margin (Non-GAAP) 26.1 % 20.8 % 18.8 % Six Months Ended June 30, 2024 Net sales $ 456.8 $ 582.0 $ — $ 1,038.8 Operating profit (GAAP) $ 101.0 $ 116.4 $ (46.8 ) $ 170.6 Operating profit margin (GAAP) 22.1 % 20.0 % 16.4 % Special items impacting operating profit: Transaction related expenses 4.6 3.2 4.9 12.7 Repositioning related charges, net — 0.5 — 0.5 Adjusted operating profit (Non-GAAP) $ 105.6 $ 120.1 $ (41.9 ) $ 183.8 Adjusted operating profit margin (Non-GAAP) 23.1 % 20.6 % 17.7 % Totals may not sum due to rounding Expand CRANE COMPANY Adjusted Free Cash Flow (unaudited, in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, Cash Flow Items 2025 2024 2025 2024 Cash provided by (used for) operating activities from continuing operations $ 105.0 $ 51.3 $ 58.8 $ (19.6 ) Less: Capital expenditures (16.1 ) (6.7 ) (30.3 ) (14.7 ) Free cash flow $ 88.9 $ 44.6 $ 28.5 $ (34.3 ) Adjustments: Transaction-related expenses 4.4 2.4 6.6 5.1 Adjusted free cash flow from continuing operations $ 93.3 $ 47.0 $ 35.1 $ (29.2 ) Free cash flow from Engineered Materials — 10.0 — (0.1 ) Adjusted free cash flow $ 93.3 $ 57.0 $ 35.1 $ (29.3 ) Expand 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 tax rate, 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 segment operating margin" is calculated as adjusted segment operating profit divided by segment sales. Adjusted segment operating profit is calculated as operating profit excluding corporate costs and before Special Items which include transaction related expenses 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 Tax Rate" is calculated as tax excluding the impact from 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 divided by "Adjusted Net Income". "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 acquisitions; 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 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 items outside of our core performance such as 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 from continuing operations' 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 from continuing operations 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. 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.
Business Insider
3 days ago
- Business
- Business Insider
D-Wave Stock Skyrocketed 1,732%: Here's What Canaccord Expects Next
D-Wave (NYSE:QBTS) stock is attracting attention as quantum computing gains traction for its potential to revolutionize processing power and tackle problems beyond the reach of classical computers. While gate-based quantum systems remain mostly experimental, D-Wave's specialty – quantum annealing – has already been applied to real-world commercial challenges for years. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. That real-world applicability is a key reason why Canaccord analyst Kingsley Crane sees D-Wave as uniquely positioned in the quantum space. 'D-Wave is not only the clear market leader in quantum annealing but has lead innovation in the space since its inception,' the analyst opined. Backing that conviction, Crane outlines three main reasons he considers D-Wave a 'compelling investment.' First, although the broader quantum field is buzzing with long-term potential, Crane points out that gate-based quantum models – often seen as the endgame – still face a murky path to commercialization. Estimates on readiness vary widely, from a few years to well over a decade. In contrast, D-Wave is already delivering value through its quantum annealing systems, with many clients using hybrid solutions today. 'In the meantime,' says Crane, 'D-Wave is solving problems for customers (in many cases using a hybrid approach) and is getting paid to do so. All the while, D-Wave is also actively researching and developing in the gate model space which embeds a gate model 'call option' into the stock.' Second, D-Wave's diversified business model adds another layer of appeal. Its Leap platform – a quantum computing-as-a-service (QCaaS) offering – is the core driver of recurring revenue, providing enterprises with real-time quantum access. At the same time, D-Wave has started to gain traction selling physical systems, notably racking up $18 million in bookings in Q4 of 2024. 'As the recurring QCaaS revenue base continues to ramp, system sales present a powerful auxiliary revenue stream,' Crane noted, while also acknowledging the potential volatility it introduces. The third pillar of Crane's thesis centers on leadership. D-Wave is led by a highly experienced core team with deep technical knowledge and a strong track record of innovation. In Crane's history of analyzing transformative software companies, those with category-defining leadership often represent 'generational investment opportunities.' D-Wave is a 'special case,' where it is not only the pioneer of quantum annealing, but has also maintained its leadership in R&D within this niche for decades. CEO Alan Baratz, who joined in 2017, and Chief Development Officer Trevor Lanting, who has been with the company since 2008, bring extensive scientific and technological expertise to the table. With revenue beginning to accelerate, Crane believes this team will 'continue to build on its advantage as revenue now begins to inflect.' Of course, with investor excitement running high, valuations have followed suit. QBTS shares have skyrocketed 1,732% over the past year, and at over 100 times projected 2026 sales, the stock now falls squarely into 'long-term concept' territory. Even so, Crane initiated coverage on QBTS with a Buy rating and a $20 price target – a 6% above Friday's closing price – while suggesting a bull case scenario could push shares as high as $45. (To watch Crane's track record, click here) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
4 days ago
- Business
- Yahoo
Crane (CR) Q2 Earnings Report Preview: What To Look For
Industrial conglomerate Crane (NYSE:CR) will be reporting results this Monday after market close. Here's what to expect. Crane beat analysts' revenue expectations by 1.5% last quarter, reporting revenues of $557.6 million, up 9.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts' organic revenue estimates and a decent beat of analysts' EPS estimates. Is Crane a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Crane's revenue to grow 7.9% year on year to $570.4 million, improving from the 3.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.33 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Crane has missed Wall Street's revenue estimates five times over the last two years. Looking at Crane's peers in the general industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 21.2%, beating analysts' expectations by 15.6%, and Honeywell reported revenues up 8.1%, topping estimates by 2.8%. GE Aerospace traded down 1.1% following the results while Honeywell was also down 6.4%. Read our full analysis of GE Aerospace's results here and Honeywell's results here. There has been positive sentiment among investors in the general industrial machinery segment, with share prices up 6.7% on average over the last month. Crane is up 1.6% during the same time and is heading into earnings with an average analyst price target of $197.50 (compared to the current share price of $191.48). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
