Crane’s Q4 Earnings Call: Our Top 5 Analyst Questions

Industrial conglomerate Crane announced better-than-expected revenue in Q4 CY2025, with sales up 6.8% year on year to $581 million. Its non-GAAP profit of $1.53 per share was 8.2% above analysts’ consensus estimates.

Crane (CR) Q4 CY2025 Highlights:

• Revenue: $581 million vs analyst estimates of $570 million (6.8% year-on-year growth, 1.9% beat)
• Adjusted EPS: $1.53 vs analyst estimates of $1.41 (8.2% beat)
• Adjusted EBITDA: $124 million vs analyst estimates of $120.3 million (21.3% margin, 3.1% beat)
• Adjusted EPS guidance for the upcoming financial year 2026 is $6.65 at the midpoint, in line with analyst estimates
• Operating Margin: 17.5%, up from 15.8% in the same quarter last year
• Free Cash Flow Margin: 33.7%, similar to the same quarter last year
• Organic Revenue rose 5.4% year on year (beat)
• Market Capitalization: $11.76 billion

Company Overview

Based in Connecticut, Crane is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Crane struggled to consistently generate demand over the last five years as its sales dropped at a 3.9% annual rate. This wasn’t a great result and is a poor baseline for our analysis.

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 6.4% 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 6.6% year-on-year growth. Because this number aligns with its two-year 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 6.8%, and its $581 million of revenue exceeded Wall Street’s estimates by 1.9%.

Looking ahead, sell-side analysts expect revenue to grow 16.3% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and implies its newer products and services will spur better top-line performance.

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Operating Margin

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

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 13.7%. 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 3.1 percentage points over the last five years, showing its efficiency has improved.

This quarter, Crane generated an operating margin profit margin of 17.5%, up 1.7 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.

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 decent 9.5% compounded annual growth rate over the last five years, higher than its 3.9% annualized revenue declines. This tells us management adapted its cost structure in response to a challenging demand environment.

We can take a deeper look into Crane’s earnings to better understand the drivers of its performance. As we mentioned earlier, Crane’s operating margin expanded by 3.1 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 shorter period to see if we are missing a change in the business.

For Crane, its two-year annual EPS growth of 18.9% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history.

In Q4, Crane reported adjusted EPS of $1.53, up from $1.26 in the same quarter last year. This print beat analysts’ estimates by 8.2%. Over the next 12 months, Wall Street expects Crane’s full-year EPS of $6.05 to grow 8.1%.

Key Takeaways from Crane’s Q4 Results

We enjoyed seeing Crane beat analysts’ organic revenue expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $210.25 immediately after reporting.

Indeed, Crane had a rock-solid quarterly earnings result, but is this stock a good investment here? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).

Industrial conglomerate Crane will be reporting earnings this Monday afternoon. Here’s what you need to know.

Crane beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $589.2 million, up 7.5% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.

Is Crane a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Crane’s revenue to grow 4.8% year on year to $570 million, slowing from the 12.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.41 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 four times over the last two years.

Looking at Crane’s peers in the industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 17.6%, beating analysts’ expectations by 13.9%, and 3M reported revenues up 3.7%, topping estimates by 1.5%. GE Aerospace traded down 7.7% following the results while 3M was also down 7.1%.

Read our full analysis of GE Aerospace’s results here and 3M’s results here.

There has been positive sentiment among investors in the industrial machinery segment, with share prices up 8.3% on average over the last month. Crane is up 8.8% during the same time and is heading into earnings with an average analyst price target of $213.17 (compared to the current share price of $204.00).

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Crane and its peers.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 15 general industrial machinery stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 9.3% on average since the latest earnings results.

Crane

Based in Connecticut, Crane is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.

Crane reported revenues of $589.2 million, up 7.5% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ adjusted operating income estimates.

Max Mitchell, Crane's Chairman, President and Chief Executive Officer, stated: "We are proud to report another strong quarter, with adjusted EPS up 27% and core sales growth of 5.6%. This quarter’s earnings performance was ahead of our expectations, and further highlights our differentiated technology, commercial excellence focus and consistent operational discipline.

Interestingly, the stock is up 6.2% since reporting and currently trades at $203.25.

Best Q3: Icahn Enterprises

Founded in 1987, Icahn Enterprises is a diversified holding company primarily engaged in investment and asset management across various sectors.

Icahn Enterprises reported revenues of $2.51 billion, down 9.9% year on year, outperforming analysts’ expectations by 4.3%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3% since reporting. It currently trades at $7.88.

Weakest Q3: Albany

Founded in 1895, Albany is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.

Albany reported revenues of $261.4 million, down 12.4% year on year, falling short of analysts’ expectations by 12.8%. It was a disappointing quarter as it posted a miss of analysts’ Engineered Composites revenue estimates and a significant miss of analysts’ revenue estimates.

Albany delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 6.7% since the results and currently trades at $58.28.

Read our full analysis of Albany’s results here.

Hillenbrand

Hillenbrand, Inc. is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Hillenbrand reported revenues of $652.1 million, down 22.1% year on year. This print surpassed analysts’ expectations by 9.8%. It was an incredible quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Hillenbrand had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $31.82.

Read our full, actionable report on Hillenbrand here, it’s free.

Columbus McKinnon

With 19 different brands across the globe, Columbus McKinnon offers material handling equipment for the construction, manufacturing, and transportation industries.

Columbus McKinnon reported revenues of $261 million, up 7.7% year on year. This number beat analysts’ expectations by 8.5%. Overall, it was a stunning quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 38% since reporting and currently trades at $20.77.

Read our full, actionable report on Columbus McKinnon here, it’s free.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how general industrial machinery stocks fared in Q3, starting with Honeywell .

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 15 general industrial machinery stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Honeywell

Originally founded in 1906 as a thermostat company, Honeywell is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.

Honeywell reported revenues of $10.41 billion, up 7% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Vimal Kapur, chairman and chief executive officer of Honeywell, commented, "As we progressed toward separating into three industry-leading public companies, we drove strong financial results and unlocked new value creation opportunities during the third quarter. Increased orders across our business segments pushed the company's total backlog to another record high and reinforced the benefit of the new, innovative solutions we are delivering for customers. All of this translated to us exceeding the high end of our guidance for both organic growth and adjusted earnings per share in the quarter."

Honeywell delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 6.9% since reporting and currently trades at $192.44.

Is now the time to buy Honeywell? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Hillenbrand

Hillenbrand, Inc. is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Hillenbrand reported revenues of $652.1 million, down 22.1% year on year, outperforming analysts’ expectations by 9.8%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $31.78.

Is now the time to buy Hillenbrand? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Albany

Founded in 1895, Albany is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.

Albany reported revenues of $261.4 million, down 12.4% year on year, falling short of analysts’ expectations by 12.8%. It was a disappointing quarter as it posted a miss of analysts’ Engineered Composites revenue estimates and a significant miss of analysts’ revenue estimates.

Albany delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 10.9% since the results and currently trades at $48.63.

Read our full analysis of Albany’s results here.

Crane

Based in Connecticut, Crane is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.

Crane reported revenues of $589.2 million, up 7.5% year on year. This number beat analysts’ expectations by 1.6%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is down 1.9% since reporting and currently trades at $187.87.

Read our full, actionable report on Crane here, it’s free for active Edge members.

3M

Producers of the first asthma inhaler, 3M Company is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.

3M reported revenues of $6.32 billion, flat year on year. This print topped analysts’ expectations by 1%. It was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EBITDA estimates.

The stock is up 8.4% since reporting and currently trades at $169.15.

Read our full, actionable report on 3M here, it’s free for active Edge members.

Crane’s third quarter results were well received by the market, reflecting solid execution and strong demand in its core segments. Management attributed the company’s performance to ongoing momentum in Aerospace & Electronics, especially from new commercial and defense contracts, as well as continued operational discipline. CEO Max Mitchell highlighted “broad-based strength at Aerospace & Electronics and continued strong execution at Process Flow Technologies.” The company also benefitted from its ability to offset tariff headwinds and deliver margin expansion through a combination of pricing, productivity improvements, and a focus on higher-value product categories.

Is now the time to buy CR? Find out in our full research report (it’s free for active Edge members).

Crane (CR) Q3 CY2025 Highlights:

• Revenue: $589.2 million vs analyst estimates of $580 million (7.5% year-on-year growth, 1.6% beat)
• Adjusted EPS: $1.64 vs analyst estimates of $1.49 (10.3% beat)
• Adjusted EBITDA: $133.9 million vs analyst estimates of $126.4 million (22.7% margin, 5.9% beat)
• Management raised its full-year Adjusted EPS guidance to $5.85 at the midpoint, a 3.5% increase
• Operating Margin: 20.1%, up from 18.1% in the same quarter last year
• Organic Revenue rose 5.6% year on year vs analyst estimates of 3.4% growth (221.4 basis point beat)
• Market Capitalization: $10.94 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Crane’s Q3 Earnings Call

• Matt Summerville (D.A. Davidson) asked about Process Flow Technologies’ exposure to chemical markets and growth prospects in non-chemical segments. COO Alejandro Alcala explained that double-digit growth is being driven by wastewater and cryogenics, while chemical markets remain stable but are expected to improve next year.
• Justin Ages (CJS Securities) inquired about signs of stabilization and recovery in chemical markets. Alcala confirmed stable conditions and expects improvement in the coming year, but does not yet see a clear inflection.
• Damian Karas (UBS) questioned margin expectations for Q4 and the drivers behind the anticipated step-down. CFO Richard Maue attributed this to seasonality, less favorable sales mix, and some non-recurring benefits realized in Q3.
• Scott Deuschle (Deutsche Bank) asked for more detail on Crane’s participation in power and data center markets. Alcala outlined strong activity in natural gas combined cycle plants and ongoing investments in power infrastructure supporting the segment.
• Nathan Jones (Stifel) sought clarity on the strategic rationale and margin outlook for the PSI acquisition. CEO Max Mitchell and Alcala expressed high confidence in PSI’s technology and leadership, expecting the business to be accretive to Crane’s margin profile over time.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be tracking (1) the successful integration and margin impact of the Precision Sensors & Instrumentation acquisition, (2) sustained order momentum and backlog growth in Aerospace & Electronics, and (3) continued product innovation and market share gains in Process Flow Technologies, particularly in wastewater and cryogenics. Progress on additional M&A and execution against tariff mitigation strategies will also be important markers for Crane’s path forward.

Crane currently trades at $190, in line with $191.33 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).

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