Crane Company Q1 FY2026 earnings call

Alex mentioned the company is off to a strong start in 2026 with first quarter results exceeding expectations. The CBS machine and global team's focus contribute to differentiation. Recent acquisitions performed exceptionally well with integration ahead of plan. Aerospace and Advanced Technologies sees strength in aerospace and defense demand. Process Flow Technologies is well-positioned to outgrow markets. Rich discussed total company results with 25% sales increase, 4% core growth, adjusted operating profit increase, and balance sheet strength.

Aerospace and Advanced Technologies: Sales of 318 million increased 28% in the quarter, with core sales up 9.4%. Backlog of nearly 1.2 billion increased 14% on a core basis. Adjusted segment margin of 24.6% compared to 26.2% last year. Process Flow Technologies: Sales of $378 million up 23% compared to a year ago, core sales down 0.6%. FX-neutral backlog at PFT decreased 2.5% but improved 7% sequentially. Adjusted operating margin of 22.1% approximately 50 basis points above the prior year.

Adjusted full-year outlook raised by 10 cents to a range of 665 to 685. Expect Q2 to be similar to Q1 and full year earnings split more balanced at around 49% to 51% between first and second half.

Geopolitical dynamics evolving, macroeconomic uncertainty, potential impact of Middle East conflict on PFT projects and commercial aftermarket, inflationary headwinds

Q: Progress on PSI and timing of progression; A: PSI upside from strong execution, cost actions, value pricing, ahead of schedule.

Q: PFT core order improvement and momentum; A: Strength in power, pharmaceuticals, cryogenics, wastewater, chemical still sluggish.

Q: Magnitude of EPS accretion from acquisitions; A: At least double initial expectation, cost actions and volume strength.

Q: Actionability in M&A pipeline; A: Strong deal activity, range of sizes.

Q: Commercial aftermarket guidance and impact; A: Guidance reflects down number, offset by military aftermarket.

Q: PFT chemicals and project pushouts; A: Pushouts related to Middle East conflict, no cancellations.

Q: PAC-3 product line size and growth; A: Around $30 - $40 million, projections for growth.

Q: PFT cryo sales related to space market; A: 35% related to space launch, grows with launch activity.

Q: Commercial aftermarket bookings trends and margin impact; A: Bookings up 11%, margin impact modest.

Q: Acquisitions strategy deployment and value-based pricing; A: Strategy deployment on growth initiatives, value-based pricing in various businesses.

Q: Balance of year margins and tariffs; A: Margin mix not drastic, tariffs not material so far