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Crane Company (CR)
NYSE:CR
US Market

Crane Company (CR) AI Stock Analysis

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Crane Company

(NYSE:CR)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
$193.00
▲(1.68% Upside)
The score is supported by strong financial performance (high profitability, improved leverage profile, and solid cash conversion) and a generally positive earnings outlook with accretive M&A. These are meaningfully offset by weak technicals (price below key moving averages with soft momentum) and a relatively expensive valuation with a low dividend yield.
Positive Factors
Improving profitability margins
Sustained gross, operating and net margin expansion reflects pricing power, favorable product mix and operational execution in engineered, regulated end markets. Higher margins are durable drivers of cash generation and ROE, supporting reinvestment and resilience across cycles over the next several quarters.
Very strong cash conversion and deleveraging
Exceptionally high free cash conversion creates durable optionality: funds M&A, funds dividend increases, and permits rapid deleveraging. Strong cash conversion reduces refinancing risk and supports balance-sheet flexibility for follow-on strategic investments over the medium term.
Strategic acquisitions strengthen sensors & AAT
Recent deals broaden mission-critical sensing and instrumentation capabilities, deepen exposure in aerospace, nuclear and process markets and expand addressable markets. These structural portfolio moves support higher organic growth potential and cross-sell opportunities over the coming 2–6 months and beyond.
Negative Factors
PFT orders and backlog weakness
Weaker PFT orders and a declining backlog reflect a trough in chemical end markets. Given PFT's exposure to cyclical process industries, this reduces revenue visibility and puts pressure on near-to-medium-term aftermarket and service revenue, elevating earnings volatility for several quarters.
Near-term margin dilution from acquisitions
Carve-ins require integration spending, IT/finance/HR investments and operational alignment that depress segment margins initially. Execution risk and one-time costs can persist across multiple quarters, constraining margin expansion timing and making near-term profitability improvements less certain.
Higher interest expense and modestly higher leverage
Elevated interest costs from acquisition funding and a step-up in leverage reduce net income sensitivity to operating performance and limit fiscal flexibility. In a cyclical industrial context, higher financing costs increase downside risk and pressure free-cash-flow available for reinvestment in the medium term.

Crane Company (CR) vs. SPDR S&P 500 ETF (SPY)

Crane Company Business Overview & Revenue Model

Company DescriptionCrane Company, together with its subsidiaries, manufactures and sells engineered industrial products in the Americas, Europe, the Middle East, Asia, and Australia. The company has four business segments: Aerospace & Electronics, Process Flow Technologies, Payment & Merchandising Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace, and the military aerospace, defense, and space markets. This segment also offers pressure sensors for aircraft engine control, aircraft braking systems for fighter jets, power conversion solutions for spacecraft, and lubrication systems. The Process Flow Technologies segment provides engineered fluid handling equipment for mission critical applications. It offers process valves and related products, commercial valves, and pumps and systems. The Payment & Merchandising Technologies segment provides electronic equipment and associated software leveraging extensive, and proprietary core capabilities, including payment verification and authentication, as well as automation solutions, field service solutions, remote diagnostics, and productivity enhancing software solutions. The Engineered Materials segment manufactures fiberglass-reinforced plastic panels and coils, primarily for use in the manufacturing of recreational vehicles and in commercial and industrial buildings applications. It provides products and solutions to customers across end markets, including aerospace, defense, chemical and pharmaceutical, water and wastewater, payment automation, non-residential and municipal construction, energy, and banknote design and production, as well as for a range of general industrial and consumer applications. The company was formerly known as Crane Holdings, Co. Crane Company was founded in 1855 and is based in Stamford, Connecticut.
How the Company Makes MoneyCrane Company generates revenue through multiple streams, primarily by selling its engineered products to customers in key markets such as aerospace, marine, and industrial applications. The company earns money from direct sales of its products, which include valves, pumps, and payment systems. Additionally, Crane benefits from long-term contracts and agreements with major clients in the aerospace and defense sectors, providing stable revenue. The company also engages in aftermarket services, offering maintenance and replacement parts, which contribute to recurring revenue. Strategic partnerships with other firms in related industries enhance its market reach and innovation capabilities, thus driving further earnings.

Crane Company Key Performance Indicators (KPIs)

Any
Any
Net Sales By Segment
Net Sales By Segment
Reveals the revenue generated from each business segment, highlighting which areas are driving growth and which may need strategic adjustments.
Chart InsightsCrane Company's Aerospace & Electronics and Process Flow Technologies segments are driving growth, with strong sales increases and record backlogs. Despite challenges in the chemical markets and tariff impacts, these segments show resilience and strategic importance. The decline in Engineered Materials and the cessation of Payment & Merchandising Technologies highlight a strategic shift. The company's focus on M&A, including the acquisition of Precision Sensors & Instrumentation, positions it for future expansion, with anticipated organic growth of 4% to 6% in 2026, underscoring a robust strategic outlook.
Data provided by:The Fly

Crane Company Earnings Call Summary

Earnings Call Date:Jan 26, 2026
(Q4-2025)
|
% Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial performance with notable wins: double-digit AAT growth, expanded backlog, margin expansion, very strong free cash conversion and multiple strategic acquisitions that are already tracking to be accretive. Offsetting risks include softness in PFT orders and backlog driven by chemical markets, near-term margin dilution and integration costs from recent acquisitions, a non-repeat of a $0.16 insurance benefit, and higher interest expense. Overall, the positive operational momentum, healthy backlog and cash generation outweigh the near-term headwinds tied to cyclicality and integration.
Q4-2025 Updates
Positive Updates
Strong EPS Growth
Adjusted EPS of $1.53 in Q4, up 21% year-over-year; full-year adjusted EPS increased 24% driven by productivity, pricing and volume.
Solid Top-Line Performance and Backlog
Company core sales growth of 5.4% in the quarter; core FX-neutral backlog up 14% year-over-year, providing strong multi-quarter visibility.
Aerospace & Advanced Technologies Outperformance
AAT sales of $272 million, up 15% year-over-year (nearly all organic); AAT backlog just over $1 billion, up 25% YoY; OEM sales up 23% (commercial OEM +27%, military OEM +18%); segment margin expanded to 23.6%, +50 basis points.
PFT Margin Expansion Despite Softer Revenues
Process Flow Technologies delivered $309 million in sales (flat YoY) while adjusted operating margin expanded to 22%, up 170 basis points, reflecting productivity and pricing discipline.
High Free Cash Conversion and Manageable Leverage
Adjusted free cash conversion of 102% in 2025; net leverage of ~1.1x after closing Druck/Panametrics/Reuter-Stokes and ~1.4x after optek-Danulat, leaving capacity for further M&A.
Strategic Acquisitions Closed and Accelerating
Closed Druck, Panametrics and Reuter-Stokes (Jan 1) plus optek-Danulat; Reuter-Stokes doubles the size of Crane's nuclear business; management now expects the acquisitions to be slightly accretive to 2026 earnings (improvement versus prior expectation of no accretion).
2026 Initial Guidance and Non-GAAP Presentation Update
2026 adjusted EPS guidance of $6.55 to $6.75 (roughly 10% growth at midpoint excluding the $0.16 hurricane benefit in 2025); company will exclude acquisition-related intangible amortization from adjusted EPS beginning 2026 to align with peers.
Segment Wins and End-Market Strength
Notable wins in AAT: F-16 brake control follow-on orders and defense vehicle programs; PFT wins in cryogenics (space launch customers), pharma (GLP-1 capacity orders) and targeted chemical projects in the Middle East.
Negative Updates
Process Flow Technologies Order and Backlog Weakness
PFT core FX-neutral backlog decreased 7% year-over-year and core FX-neutral orders were down ~3%; PFT core sales down 1.5% in Q4, reflecting a trough in chemical end markets.
Near-Term Margin Dilution from Acquisitions
Management expects Druck and the acquired PFT businesses (Panametrics, Reuter-Stokes, optek) to be dilutive to segment margins in the near term even though they are expected to be accretive to overall 2026 earnings.
One-Time Insurance Benefit Not Repeating
2025 results included $9 million of hurricane-related insurance recoveries that benefited adjusted EPS by $0.16; this benefit will not repeat in 2026, creating a headwind to comparable results.
Seasonal and Integration-Related Softness in Q1 2026
Q1 2026 expected to be seasonally soft and roughly flat vs Q1 2025; guidance notes first quarter softness is amplified by acquisition integration and higher interest expense, and acquired businesses historically skew stronger to the back half of the year.
Rising Interest Expense and Slightly Higher Tax Rate
Full-year 2026 interest expense estimated around $58 million due to funding acquisitions; estimated 2026 tax rate approximately 23%, slightly higher than prior periods.
Geographic and End-Market Headwinds
Chemical end markets remain subdued, particularly in Europe, China and parts of Asia Pacific; management expects PFT demand to be flat to low-single-digit in 2026 as these regions work through the trough.
Integration and One-Time Costs
Integration-related costs and investments (IT, finance, HR) are expected as part of bedding in carve-outs; while some integration costs will be excluded from adjusted results, certain ongoing hiring/investments will be reported and will pressure near-term measures.
Corporate Expense Slightly Elevated
Corporate expense for 2025 was $87 million (above prior ~$85 million view) primarily due to M&A activity; 2026 corporate expense guidance is $80–85 million but M&A could keep this elevated.
Company Guidance
Crane's 2026 guidance calls for adjusted EPS of $6.55–$6.75 (≈10% growth at the midpoint), using a new non‑GAAP convention that excludes noncash, tax‑effected acquisition‑related intangible amortization (recast for 2025), and management expects the recent acquisitions (Druck, Panametrics, Reuter‑Stokes, optek‑Danulat) to be slightly accretive to 2026 (vs. prior expectation of no accretion) while the $0.16 per‑share hurricane insurance benefit in 2025 will not repeat. The company reiterated a 4%–6% core sales growth baseline (expecting Aerospace & Advanced Technologies at the high end and Process Flow Technologies flat to low single‑digit), targeted core operating leverage of roughly 35%–40% in AAT and 30%–35% in PFT, and a Q1 that is seasonally soft (roughly flat vs. Q1 2025) with ~45% of full‑year earnings in H1 and ~55% in H2; additional 2026 financial assumptions include interest expense of ~ $58M, an effective tax rate of ~23%, corporate expense of $80–85M, and balance‑sheet flexibility after net leverage moved from ~1.1x to ~1.4x post‑optek (following 102% adjusted free cash conversion in 2025).

Crane Company Financial Statement Overview

Summary
Strong current fundamentals: improving profitability (TTM gross ~42%, operating ~18%, net ~16%), very strong balance sheet with minimal leverage and healthy ROE (~20% TTM), and solid recent free-cash-flow conversion (~86% of net income). Offsets are historical volatility (notably weak 2022 cash flow and a sharp 2023 revenue drop), which raises cyclicality/consistency risk.
Income Statement
84
Very Positive
Profitability is strong and improving: TTM (Trailing-Twelve-Months) gross margin (~42%), operating margin (~18%), and net margin (~16%) are all higher than recent annual periods, pointing to better pricing/mix and execution. Revenue growth is solid in the latest two periods (2024 and TTM), although the multi-year path is uneven (notably a sharp decline in 2023), which adds some cyclicality risk.
Balance Sheet
90
Very Positive
The balance sheet screens as very strong in the latest period: leverage appears minimal in TTM (Trailing-Twelve-Months) with debt far below equity, and returns on equity remain healthy (~20% TTM). Prior years show leverage was meaningfully higher (e.g., 2020–2022), so while the trajectory looks favorable, the magnitude of the recent deleveraging is a point to monitor for consistency.
Cash Flow
78
Positive
Cash generation is generally solid with TTM (Trailing-Twelve-Months) free cash flow at ~86% of net income and strong year-over-year free cash flow growth. However, cash flow quality has been volatile historically (notably negative operating and free cash flow in 2022), and operating cash flow only modestly exceeds net income in TTM, suggesting working-capital or timing swings can still impact cash conversion.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.31B2.13B1.86B1.78B2.06B
Gross Profit972.80M867.80M751.00M661.20M688.80M
EBITDA494.30M391.90M312.90M187.40M237.90M
Net Income366.60M294.70M255.90M401.10M435.40M
Balance Sheet
Total Assets3.85B2.64B2.35B4.39B4.49B
Cash, Cash Equivalents and Short-Term Investments1.73B306.70M329.60M427.00M478.60M
Total Debt1.15B319.30M314.80M460.90M944.20M
Total Liabilities1.79B1.00B991.10M2.49B2.65B
Stockholders Equity2.06B1.64B1.36B1.90B1.83B
Cash Flow
Free Cash Flow341.30M236.20M189.20M-509.30M463.20M
Operating Cash Flow394.80M272.80M228.20M-472.20M498.50M
Investing Cash Flow165.50M-233.20M-136.60M285.30M-300.00K
Financing Cash Flow838.80M-49.70M-423.20M106.00M-557.90M

Crane Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price189.82
Price Trends
50DMA
191.16
Negative
100DMA
187.57
Positive
200DMA
184.24
Positive
Market Momentum
MACD
-1.71
Positive
RSI
46.29
Neutral
STOCH
36.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CR, the sentiment is Neutral. The current price of 189.82 is below the 20-day moving average (MA) of 197.76, below the 50-day MA of 191.16, and above the 200-day MA of 184.24, indicating a neutral trend. The MACD of -1.71 indicates Positive momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 36.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CR.

Crane Company Risk Analysis

Crane Company disclosed 22 risk factors in its most recent earnings report. Crane Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Crane Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$12.37B32.2624.96%1.28%2.37%-6.93%
77
Outperform
$10.91B19.8329.20%2.04%-1.64%-2.50%
77
Outperform
$10.24B31.3917.81%0.70%4.18%16.05%
69
Neutral
$11.84B44.273.89%0.97%-4.99%22.16%
65
Neutral
$10.93B30.4217.92%0.49%-0.37%21.77%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
$10.40B33.7212.38%5.52%9.03%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CR
Crane Company
189.82
17.93
10.43%
DCI
Donaldson Company
107.29
37.70
54.18%
GNRC
Generac Holdings
177.18
34.47
24.15%
RRX
Regal Rexnord
178.30
36.54
25.78%
AOS
A. O. Smith Corporation
78.37
14.17
22.08%
WTS
Watts Water Technologies
306.91
101.42
49.36%

Crane Company Corporate Events

Business Operations and StrategyExecutive/Board Changes
Crane Company Announces CEO Succession and Leadership Transition
Positive
Jan 29, 2026

On January 26, 2026, Crane Company’s board approved a leadership transition effective April 27, 2026, appointing Executive Vice President and Chief Operating Officer Alejandro (Alex) Alcala as President and Chief Executive Officer, while current Chairman, President and CEO Max Mitchell will assume the role of Executive Chairman and remain on the board. In connection with these changes, Alcala’s 2026 compensation package was increased to reflect his new responsibilities, including a higher base salary, a larger target annual cash incentive, and $4.15 million in long-term equity awards split among performance-based restricted share units, stock options and time-based restricted share units, while Mitchell’s base salary and target cash incentive were reduced as he transitions to Executive Chairman, alongside $3.25 million in long-term incentive awards with a similar mix and multi-year vesting structure tied to Crane’s relative total shareholder return and sustained performance, signaling a structured and continuity-focused succession plan for stakeholders.

The most recent analyst rating on (CR) stock is a Buy with a $238.00 price target. To see the full list of analyst forecasts on Crane Company stock, see the CR Stock Forecast page.

Business Operations and StrategyExecutive/Board ChangesDividendsFinancial DisclosuresM&A Transactions
Crane Company Posts Record 2025 Results, Boosts Outlook
Positive
Jan 26, 2026

On January 26, 2026, Crane Company reported strong fourth-quarter 2025 results, with EPS from continuing operations up 16% year over year and adjusted EPS up 21%, capping a record 2025 in which reported and adjusted EPS rose 23% and 24%, respectively. Sales in the quarter increased 6.8%, driven mainly by 5.4% core sales growth, while core orders and backlog also expanded on strength in aerospace and defense markets, supporting the company’s outlook for 2026 adjusted EPS growth of about 10% and low- to mid-20% total sales growth including recent acquisitions. On January 1, 2026, Crane closed the acquisitions of Druck, Panametrics and Reuter-Stokes from Baker Hughes and of Germany-based optek-Danulat, bolstering its instrumentation and optical sensing capabilities and prompting the rebranding of its ‘Aerospace & Electronics’ segment to ‘Aerospace & Advanced Technologies.’ The company also raised its annual dividend by 11% for 2026, signaling confidence in cash generation, while noting that acquisition-related benefits in 2026 will be largely offset by higher interest expense, with more substantial upside expected from synergies and deleveraging from 2027 onward. As part of a long-planned succession, veteran executive Alex Alcala will become President and Chief Executive Officer on April 27, 2026, with current Chairman, President and CEO Max Mitchell transitioning to Executive Chairman, a move designed to ensure continuity of strategy as Crane pursues further growth in advanced technologies and process flow markets.

The most recent analyst rating on (CR) stock is a Hold with a $201.00 price target. To see the full list of analyst forecasts on Crane Company stock, see the CR Stock Forecast page.

Business Operations and StrategyM&A Transactions
Crane Company Completes Precision Sensors Acquisition Deal
Positive
Jan 5, 2026

On January 1, 2026, Crane Company completed its previously announced acquisition of Precision Sensors & Instrumentation, which it purchased from Baker Hughes via the acquisition of all interests in Panametrics, LLC, for a purchase price of $1.06 billion after accounting for expected tax benefits, subject to customary working capital and transaction-related adjustments. Precision Sensors & Instrumentation, a leading provider of sensor-based technologies serving the aerospace, nuclear and process industries, is expected to strengthen Crane’s portfolio in mission-critical applications and deepen its exposure to highly engineered sensing solutions, positioning the company for expanded opportunities across its aerospace and process-focused platforms; Crane said it would discuss the transaction in more detail during its fourth-quarter 2025 earnings release and teleconference scheduled for late January 2026.

The most recent analyst rating on (CR) stock is a Hold with a $200.00 price target. To see the full list of analyst forecasts on Crane Company stock, see the CR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 30, 2026