Crane Co Q4 FY2024 earnings call

• Max Mitchell mentioned Alex Alcala's promotion to COO, divestiture of Engineered Materials, and Q4 results outperforming expectations. Site recovery from Hurricane Helene ahead of schedule. Dividend increased by 12%.
• Alex Alcala highlighted strong demand in Aerospace & Electronics, including F-16 brake control upgrade order and progress on vehicle electrification. In Process Flow Technologies, secured orders in Middle East and North America, and growth from acquisitions of CryoWorks and Technifab.
• Rich Maue discussed 8% core sales growth in Q4, adjusted operating profit up 38%, and 2025 adjusted EPS guidance $5.30-$5.60 with 12% growth midpoint, core growth 4%-6%, and 1%-2% sales benefit from acquisitions.

Aerospace & Electronics

• Q4 2024: Sales of $237 million, up 11% y/y with 7% core growth and 5% benefit from Vian acquisition. Record backlog of $864 million, up 23% y/y. Adjusted segment margin 23.1%, up 290 basis points. Full year: Core sales growth 13%, adjusted operating profit $217 million, margin 23.2%.

Process Flow Technologies

• Q4 2024: Sales of $307 million, up 13% y/y with 9% core growth and 4% benefit from CryoWorks and Technifab acquisitions. Adjusted operating margin 20.3%, up 330 basis points. Full year: Core growth 5%, adjusted operating profit $250 million, margin 20.9%.

• 2025 adjusted EPS guidance: $5.30 to $5.60, 12% growth at midpoint.
• Core growth: 4% to 6%, adjusted operating profit growth ~12% at midpoint.
• Sales benefit from acquisitions: 1% to 2%, foreign exchange headwind: ~1%.
• Aerospace & Electronics core sales growth: High single digits. Process Flow Technologies core sales growth: Low to mid-single digits.

• Macroeconomic uncertainties impacting demand.
• Potential supply chain disruptions.
• Possible impact of tariffs on China operations affecting Process Flow Technologies.

Q: Nathan Jones asked about PFT backlog dynamics and margin expansion progress.

A: Alex Alcala said backlog still strong, up ~40% from 2019, and there's room to improve margins by executing strategy.

Q: Matt Summerville inquired about A&E organic growth assumptions and MAX restart impact.

A: Rich Maue said commercial OE low double-digit, military OE mid-single digit, etc. Max Mitchell mentioned MAX start-up assumptions are conservative.

Q: Jordan Lyonnais asked about China exposure and tariffs.

A: Max Mitchell said little concern due to localized content and preparedness.

Q: Justin Ages asked about nuclear valve business demand.

A: Max Mitchell said nuclear business is ~7% of revenue, benefiting from nuclear resurgence and plant restarts.