Crane raises 2026 profit forecast as Q3 profit tops estimates
Adjusted EPS of $2.05 topped the $1.87 consensus estimate compiled by Finnhub; revenue of $754.6 million was in line with $758.98 million. It raised its 2026 adjusted EPS outlook to $7.23 to $7.38.
Key takeaways
- Crane Company (CR) reported adjusted earnings of $2.05 per share for the third quarter of 2026 on Oct. 27, topping the $1.87 consensus estimate compiled by Finnhub. Revenue was $754.6 million. The company raised its full-year 2026 adjusted EPS outlook to $7.23 to $7.38.
Crane Company (CR) raised its full-year 2026 adjusted earnings outlook on Oct. 27, after reporting third-quarter adjusted earnings per share that beat analyst estimates.
Shares rose 2.5% in after-hours trading as of 5:26 p.m. ET, from a regular-session close of $193.09.
The company said in a press release furnished with its 8-K filing that adjusted EPS from continuing operations was $2.05, topping the $1.87 consensus estimate compiled by Finnhub.
Revenue was $754.6 million, in line with the $758.98 million consensus estimate compiled by Finnhub. Sales rose 28.1% from a year earlier, the company said.
Here's how the company did:
- Adjusted EPS: $2.05 vs. $1.67 a year earlier, topping the $1.87 consensus estimate compiled by Finnhub
- GAAP EPS from continuing operations: $1.66 vs. $1.56 a year earlier
- Revenue: $754.6 million vs. $589.2 million a year earlier, in line with the $758.98 million consensus estimate compiled by Finnhub
Acquisitions added 21.1% to sales growth, while core sales grew 7.7%, the company said. Foreign exchange was a 0.4% headwind.
Operating profit was $140.6 million, up 18.8%. Adjusted operating profit was $169.9 million, up 35.8%, and the company reported a record adjusted operating margin of 22.5%.
President and Chief Executive Officer Alex Alcala said, “We delivered another exceptional quarter, with strong performance across both AAT and PFT.” He added, “We enter the fourth quarter with strong momentum across both segments and are increasingly well positioned as we look toward 2027.”
2026 guidance
The company raised and narrowed its 2026 adjusted EPS outlook to $7.23 to $7.38, from $6.85 to $7.05.
It expects total sales to increase approximately 26% at the midpoint. It expects an adjusted segment operating margin of approximately 24.0%, up from its prior view of 23.0%+.
The outlook also assumes corporate costs of $80 million to $85 million, net non-operating expense of approximately $58 million and about 59 million diluted shares.
Segment results
Aerospace & Advanced Technologies sales were $344.1 million, up 27.4%. Core sales grew 9.5%, and acquisitions added 17.9%. Its adjusted operating profit margin was 26.3%, up 100 basis points.
Process Flow Technologies sales were $410.5 million, up 28.7%. Core sales grew 6.2%, and acquisitions added 23.9%. Its adjusted operating profit margin was 24.0%, up 80 basis points.
Total backlog was $1,894.9 million at Sept. 30, up from $1,437.1 million a year earlier.
Divestiture and acquisition
The company said it agreed to divest Crane Building Services & Utilities, a UK-based business, for £230 million. The sale is expected to close early in 2027.
It also agreed to acquire the U.S. water and wastewater pump business of Trillium Flow Technologies, which is expected to close in the fourth quarter. Both transactions are subject to customary approvals.
Alcala said, “While Crane Building Services & Utilities is a strong business, its focus is no longer aligned with the strategic direction of our PFT portfolio.”
Cash and capital returns
Cash from continuing operations was $128.4 million in the quarter, and free cash flow was $116.3 million. At Sept. 30, the company had cash of $315.7 million and total debt of $928.5 million.
The company declared a regular fourth-quarter dividend of 25.5 cents per share, payable Dec. 9 to shareholders of record as of Nov. 30.