Crane Company Reports Strong Q4 2024 Results, Raises 2025 Guidance, and Announces 12% Dividend Increase
Fourth Quarter 2024 Financial Highlights
Crane Company delivered impressive financial results for the fourth quarter of 2024, with substantial increases in both earnings and sales. The company posted earnings per diluted share (EPS) from continuing operations of $1.20, marking a 58% increase compared to the same period in 2023. Additionally, Crane reported an adjusted EPS from continuing operations of $1.26, which was also up by 58%. This strong performance was fueled by robust growth across its core businesses and increased productivity.
Sales for the quarter reached $544 million, a 12% increase from the previous year. The growth was primarily driven by an 8% core sales increase, a 4% contribution from acquisitions, and a slight favorable impact from foreign exchange rates. Core orders also saw significant growth, increasing by 8%, and core backlog grew by 9%, driven primarily by continued strength in the Aerospace & Electronics segment.
The company declared a quarterly dividend of $0.23 per share for the first quarter of 2025, marking a 12% increase from the previous quarterly dividend of $0.205 per share. This increase reflects Crane Company Reports commitment to returning value to its shareholders while continuing to strengthen its business.
Full-Year 2024 Financial Results
For the full year 2024, Crane Company Reports GAAP EPS from continuing operations of $4.60, a 51% increase from $3.06 in 2023. Adjusted EPS for 2024 came in at $4.88, up from $3.80 in 2023, representing a 29% increase. Sales for the year increased by 14%, driven by an 8% core sales growth, a 6% contribution from acquisitions, and a small favorable impact from foreign exchange.
The company’s operating profit for the year surged by 42% to $356 million, with an adjusted operating profit of $383 million, which was a 29% increase compared to the previous year. These results were driven by higher volumes, net price increases, and improved productivity across the business segments.
Cash Flow and Financial Position
Crane Company Reports strong cash flow generation during the fourth quarter, with operating activities from continuing operations generating $202 million. After accounting for capital expenditures of $14 million, free cash flow for the quarter amounted to $188 million. Adjusted free cash flow was $193 million. Crane Company Reports For the full year, Crane generated $258 million in operating cash flow, with capital expenditures totaling $37 million. This resulted in a free cash flow of $221 million and an adjusted free cash flow of $234 million for 2024.
As of December 31, 2024, Crane’s cash balance stood at $307 million, with a total debt of $247 million. The company’s financial strength was further bolstered by the successful divestiture of its Engineered Materials segment, which closed on January 1, 2025, bringing in net proceeds of $208 million.
Segment Performance
Crane’s business segments showed strong performance throughout 2024, with both Aerospace & Electronics and Process Flow Technologies contributing to the company’s success.
Aerospace & Electronics
In the fourth quarter of 2024, Aerospace & Electronics achieved sales of $237 million, representing an 11% increase compared to the prior year. This growth was driven by a 7% increase in core sales and a 4% benefit from the acquisition of Vian, which was finalized earlier in the year. Operating profit for this segment was $53 million, up 24% compared to the previous year, while adjusted operating profit increased by 28%, reaching $55 million.
The segment’s operating profit margin expanded to 22.4%, up 220 basis points, driven by increased productivity, higher volumes, and favorable pricing. The adjusted operating profit margin also increased to 23.1%, a 290 basis point improvement from the prior year. Aerospace & Electronics ended the year with a solid order backlog of $864 million, up 23% from the $701 million reported at the end of 2023.
Process Flow Technologies
Process Flow Technologies delivered strong results in Q4 2024, with sales of $307 million, a 13% increase compared to the same period in 2023. This growth was driven by 9% core sales growth and a 4% contribution from the acquisitions of CryoWorks and Technifab. Operating profit for this segment increased by 34% to $58 million, and adjusted operating profit rose by 36% to $62 million.
The segment’s operating profit margin expanded by 300 basis points to 19.0%, reflecting the benefits of higher volumes, productivity improvements, and favorable pricing. The adjusted operating profit margin increased by 330 basis points, reaching 20.3%. Process Flow Technologies’ order backlog stood at $376 million as of December 31, 2024, slightly down from the $379 million reported a year earlier.
2025 Guidance
Looking ahead to 2025, Crane Company’s initiated its full-year adjusted EPS guidance with a range of $5.30 to $5.60, representing a 12% increase at the midpoint compared to 2024 adjusted EPS. The company’s 2025 outlook reflects the continued strength of its core businesses and ongoing investments in growth initiatives.
Crane Company’s expects total sales growth of approximately 5%, driven by core sales growth in the range of 4% to 6%, with an additional 1% to 2% contribution from acquisitions. Foreign exchange is expected to pose a 1% headwind to growth. Adjusted segment operating margin is forecasted to be 22.5% or higher, up from 21.9% in 2024. The company’s adjusted tax rate for 2025 is expected to be 23.5%, and diluted shares are expected to be around 59 million.
Dividend Declaration
In line with its strong financial performance, Crane’s Board of Directors has declared a quarterly dividend of $0.23 per share for the first quarter of 2025, representing a 12% increase over the previous dividend of $0.205 per share. The dividend is payable on March 12, 2025, to shareholders of record as of February 28, 2025.
Max Mitchell, Chairman, President, and CEO of Crane Company, expressed confidence in the company’s performance and future prospects. He stated, “Crane Company had an exceptional year with both segments executing at a high level. As a result, we delivered 8% core sales growth with 28% adjusted EPS growth in 2024. Further, we continued to strengthen and focus our portfolio with the acquisitions of Vian, CryoWorks, and Technifab, as well as with the divestiture of our Engineered Materials segment.” He added that the company is well-positioned to continue its momentum into 2025, driven by strong demand in Aerospace & Electronics and Process Flow Technologies.
Crane Company’s continued focus on organic growth, strategic acquisitions, and operational efficiencies positions the company for another year of solid performance and shareholder returns. With its strong financial foundation and the expected growth in its core businesses, Crane is poised for continued success in 2025.
