CR Q2 Deep Dive: Aerospace, Sensors, and M&A Drive Growth and Outlook

August 12, 2025 at 23:59 PM EDT

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Industrial conglomerate Crane (NYSE: CR) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 9.2% year on year to $577.2 million. Its non-GAAP profit of $1.49 per share was 11.7% above analysts’ consensus estimates.

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

Crane (CR) Q2 CY2025 Highlights:

Revenue: $577.2 million vs analyst estimates of $570.4 million (9.2% year-on-year growth, 1.2% beat)
Adjusted EPS: $1.49 vs analyst estimates of $1.33 (11.7% beat)
Adjusted EBITDA: $121.9 million vs analyst estimates of $118 million (21.1% margin, 3.3% beat)
Management raised its full-year Adjusted EPS guidance to $5.65 at the midpoint, a 3.7% increase
Operating Margin: 17.8%, in line with the same quarter last year
Organic Revenue rose 6.5% year on year vs analyst estimates of 6.1% growth (38.5 basis point beat)
Market Capitalization: $11.35 billion

StockStory’s Take

Crane’s second quarter saw notable momentum, with the company exceeding Wall Street’s revenue and adjusted earnings expectations. Management attributed this outperformance primarily to robust demand in the Aerospace & Electronics segment and solid execution across both core businesses. CEO Max Mitchell cited “impressive 6.5% core sales growth reflecting strength across both Aerospace & Electronics and Process Flow Technologies,” while also highlighting nearly 20% core orders growth, especially from aerospace customers. The company’s disciplined operational approach and flexibility in responding to market conditions further supported the results.

Looking ahead, Crane’s revised full-year outlook is anchored by continued strength in aerospace, recent acquisitions, and a strong backlog. Management pointed to the integration of newly acquired sensor businesses and ongoing commercial aerospace demand as key drivers for the remainder of the year. COO Alex Alcala emphasized the company’s ability to “continue to see above-market growth for the remainder of this decade,” with new contract wins in both defense and commercial aviation. Management also expects incremental margin opportunities from portfolio repositioning and integration of new technologies.

Key Insights from Management’s Remarks

Crane’s second quarter financial performance was driven by aerospace demand, sensor technology acquisitions, and stable process flow markets, with management highlighting a robust order pipeline and operational discipline.

Aerospace & Electronics strength: The Aerospace & Electronics segment saw broad-based order growth, with both commercial and defense customers contributing. Key drivers included air defense orders for future years, legacy defense programs, and strong momentum in Boeing-related production and aftermarket activity.
Pending sensor acquisition: Management announced the pending acquisition of Precision Sensors & Instrumentation (PSI) businesses from Baker Hughes, bringing advanced brands like Druck, Panametrics, and Reuter-Stokes into Crane’s portfolio. These additions are expected to enhance Crane’s capabilities in pressure-sensing, flow measurement, and radiation detection for mission-critical applications.
Organizational changes: Jay Higgs was promoted to Senior Vice President of Aerospace & Electronics, a move intended to facilitate the integration of new businesses and accelerate M&A. New leadership structures are now in place to support further inorganic growth in both operating segments.
Process Flow Technologies resilience: While the chemical sector remained soft, growth in cryogenics (driven by space launches) and water/wastewater applications provided stability. Management noted continued project wins in critical end markets such as pharmaceuticals and municipal water infrastructure.
Pricing offsets tariffs: Tariff-related headwinds were largely offset by pricing actions and productivity initiatives. Management stated that raw material tariffs, particularly on steel and copper, had only a modest impact and were mitigated through cost discipline and targeted price increases.

Drivers of Future Performance

Crane’s forward guidance is shaped by aerospace backlog, acquisition integration, and targeted margin expansion, as well as continued focus on high-value end markets.

Aerospace demand and backlog: Management expects sustained high-single to low-double digit core sales growth in Aerospace & Electronics, supported by strong order momentum in both commercial and defense, and continued aftermarket activity. The integration of Druck will further bolster pressure-sensing capabilities and extend market reach.
Process Flow portfolio repositioning: While chemical sector demand remains sluggish, Crane’s focus on cryogenics, biopharma, and water infrastructure is expected to drive growth. Management highlighted project wins in space launch and municipal water as bright spots that could offset softness in other areas.
M&A execution and integration: The company’s ability to close and integrate strategic acquisitions like PSI is central to its outlook. Management expects incremental margin improvement and return on invested capital from these deals, but also noted risks around successful execution and market timing.

Catalysts in Upcoming Quarters

In the quarters ahead, our analysts will be monitoring (1) the pace and success of integrating PSI’s sensor businesses into Crane’s operations, (2) the sustainability of aerospace order growth and backlog conversion in both commercial and defense markets, and (3) continued resilience in Process Flow Technologies, especially in cryogenics and water infrastructure. The effectiveness of pricing actions to offset tariff impacts will also be a key area of focus.

Crane currently trades at $197.31, up from $189.98 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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