Crane Company Q2 sales rise 26%, beat estimates; outlook raised

Overview

• U.S. engineered components maker's Q2 sales rose 26% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 climbed 18% to a record $1.79

• Company raised full-year adjusted EPS guidance on strong demand

Outlook

• Crane raises 2026 adjusted EPS outlook to $6.85-$7.05 from $6.65-$6.85

• Company expects 2026 total sales growth in mid-20% range, up from low-to-mid-20% previously

• Crane sees 2026 adjusted segment operating margin of 23.0% or higher

Result Drivers

• AEROSPACE ADVANCED TECHNOLOGIES DEMAND - Co said broad-based demand in AAT segment drove 13.3% core sales growth and record backlog

• ACQUISITIONS - Acquisitions contributed nearly 20% to sales growth and performed ahead of expectations, aiding growth and margin expansion

• OPERATING LEVERAGE - Margin expansion attributed to strong productivity and operating leverage across all businesses

Company press release: ID:nBw944dS0a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery equipment peer group is "buy"

• Wall Street's median 12-month price target for Crane Co is $232.50, about 2.7% above its July 27 closing price of $226.44

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 25 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)