Asked for more color on the M&A pipeline, if activity has shifted, and if deals similar to PSI (accretive to technology and margin expansion) are still being seen.

Alex Alcala confirmed that the M&A funnels are stronger than ever with deals possessing characteristics accretive to growth, margin, and technology in both AAT and PFT. He noted that while timing is unpredictable, the company has the debt and management capacity for disciplined capital deployment. “We are seeing our funnels get stronger with deals with those characteristics in both and PFT. In fact, they've never been stronger.”

Asked about framing the opportunity in missile demand (Patriot, Tomahawk, etc.) and its contribution to organic potential.

Alex Alcala stated Crane has $35 million in content across over 10 missile programs today, with customer forecasts indicating a potential 4x expansion by the end of the decade. Rich Maue added that the company's capacity allows for incremental quotes and content wins beyond existing platforms. “We see about $35 million of content today. We're on over 10 programs... our key activity and forecast that would expand 4x that rate, going to the end of the decade.”

Asked to quantify the margin dilution in AAT and PFT from the deals since January.

Rich Maue explained that AAT margins would be nearly 100 basis points better without the dilution, and PFT margins would be closer to 160 basis points better (vs. 80 bps reported) without the dilutive impact. He emphasized that both the acquired businesses and the core businesses are outperforming expectations. “we would be probably close to 100 basis points where we were in Q2, close to 100 basis points better in aerospace and advanced technologies. And if you looked at PFT, we'd be closer to -- I think we disclosed on the call, 80 basis points with the dilutive impact, it would be closer to 160, excluding.”

Crane Company (CR) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Jul 29, 2026

Source: earnings call transcript

Executive summary

Crane Company Q2 FY26 — Record Results Driven by Strong Execution and Acquisition Outperformance

Crane Company delivered record Q2 FY26 results, driven by strong execution, 5% core sales growth, and significant operating leverage. Acquisitions are outperforming expectations, leading to an increased full-year EPS outlook. While Process Flow Technologies saw a slight core sales decline, sequential backlog growth and strengthening demand trends position it for a strong second half, complementing the robust performance in Aerospace & Advanced Technologies.

Highlights

Record second quarter results with solid 5% core sales growth.
Total company adjusted operating margin expanded 180 basis points to a record 21.3%.
Total backlog increased 5% sequentially, with core sequential backlog growth across both segments.
Aerospace & Advanced Technologies delivered 13% core sales growth and record backlog of nearly $1.3 billion.
Acquisitions are performing ahead of plan, now expected to contribute $0.20 per share to full-year earnings, up from $0.15.

Concerns

Process Flow Technologies core sales were down 1.4% in Q2 FY26.
Adjusted segment margin for AAT was down slightly to 25.8% from 26.6% YoY due to dilutive impact from Druck acquisition.
Core FX-neutral backlog at PFT decreased 2% compared to prior year.

Guidance & targets

Category	Target	Timeline	Confidence
Acquisition contribution to full-year EPS	$0.20 per share medium materiality	FY26	High
Full-year adjusted EPS	$6.85 to $7.05 per share high materiality	FY26	High
AAT Full-year core sales growth	just above the high end of 7% to 9% range medium materiality	FY26	High
PFT Full-year core sales growth	flat to up to low single digits medium materiality	FY26	High
Full-year corporate expense	$80 million to $85 million low materiality	FY26	High
Full-year net nonoperating expense	approximately $58 million low materiality	FY26	High
Full-year tax rate	approximately 23% low materiality	FY26	High
Q3/Q4 FY26 cadence	Q3 similar to Q2, Q4 modestly lower low materiality	Q3 FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Aerospace & Advanced Technologies Led the way with strong core sales growth and record backlog. Demand remains very strong across commercial aerospace and defense. Adjusted margin was slightly down YoY due to dilutive impact from Druck acquisition, but still outstanding. Core sales growth: 13.3%Total sales growth: 31%Adjusted segment margin: 25.8%Record backlog: nearly $1.3 billionCore backlog growth YoY: 11%Core backlog growth sequential: 7%Core orders growth YoY: 5%Aftermarket sales growth: 8%	$339 million	13.3% (core sales)	—	25.8%
Process Flow Technologies Core sales were down, but acquisitions added nearly 22 points of growth. Adjusted operating margin improved 80 bps YoY, inclusive of dilutive impact from acquisitions. Sequential backlog and orders showed improvement, positioning for H2 growth. Core sales growth: -1.4%Total sales growth: 21%Adjusted operating margin: 22.2%Core FX-neutral backlog decrease YoY: 2%Core FX-neutral backlog growth sequential: 2%Core FX-neutral orders: approximately flat	$386 million	-1.4% (core sales)	—	22.2%

Orderbook & backlog

Total backlog increased 5% sequentially Q2 FY26

up 5% sequentially

Core sequential backlog growth across both segments.

Total core FX-neutral backlog up 7% Q2 FY26

up 7% YoY

Compared to Q2 FY25.

Aerospace & Advanced Technologies backlog nearly $1.3 billion Q2 FY26

up 11% core YoY; up 20% including Druck; up 7% core sequential

Record level.

Process Flow Technologies core FX-neutral backlog decreased 2% YoY, improved 2% sequential Q2 FY26

down 2% YoY; up 2% sequential

Second consecutive quarter of sequential core backlog growth.

Deals & partnerships

Panametrics, Druck, Reuter-Stokes, optek Four acquired businesses, integration ahead of plan, exceeding expectations, realizing synergies faster than anticipated.

These acquisitions are becoming some of Crane's best and most profitable businesses ahead of schedule, leveraging the Crane business system.

Risks & headwinds

Dilutive impact of recent acquisitions (Druck, Panametrics, Reuter-Stokes, optek) on segment operating margins Q2 FY26

AAT adjusted segment margin down slightly to 25.8% from 26.6% YoY; PFT adjusted operating margin of 22.2% was inclusive of dilutive impact (AAT ~100bps, PFT ~160bps if excluding dilution).

Mitigation:Acquisitions are performing better than expected, and core underlying business is also performing better.

Market headwinds in Process Flow Technologies Q2 FY26, but expected to improve in H2 FY26

Core sales down 1.4% in Q2 FY26; core FX-neutral backlog decreased 2% YoY.

Mitigation:Sequential backlog growth, strengthening orders, increased quote activity, and positive demand trends in chemical production, industrial power, and cryogenics are expected to drive positive core growth in H2 FY26.

Inflation headwinds from current conflict in the Middle East, impacting freight and aviation Q2 FY26 and ongoing

Increased aviation that we're seeing in freight and other areas.

Mitigation:Teams were able to quickly get ahead of this, driving margin expansion even with increased inflation.

What to watch in Q3 FY26

Process Flow Technologies core sales growth

H2 FY26

Current -1.4% YoY in Q2 FY26

Target Positive year-over-year growth

Why it matters

Verifies the expected turnaround and strengthening demand trends in the PFT segment, crucial for overall company growth.

I expect PFT to turn positive growth year-over-year in the second half. Very confident about that with those trends.

Find out whether CR delivers this. Inve re-checks your case every morning.

Q&A highlights

Inquired about the evolution of organic growth in PFT through the quarter and expectations for H2.

Alex Alcala stated strong positive sentiment for PFT in H2, citing two quarters of sequential backlog improvement, strengthening orders, increased quote activity, and positive demand trends in chemical production (Americas), industrial power, and cryogenics. Expects positive year-over-year core growth in H2.

“I expect PFT to turn positive growth year-over-year in the second half. Very confident about that with those trends.”

asked by Amit Mehrotra · answered by Alejandro Alcala

2 min read 6 chapters

Detailed narrative

Record Q2 Performance and Operating Leverage

Crane Company achieved record second-quarter results, with total company adjusted operating margin expanding 180 basis points to a record 21.3%. This was driven by strong core margins in both segments, favorable pricing, productivity, and disciplined cost management, demonstrating the company's ability to convert growth into earnings expansion.

Acquisition Outperformance and EPS Impact

The four recent acquisitions (Panametrics, Druck, Reuter-Stokes, optek) have performed outstandingly, with integration ahead of plan and synergies realized faster than anticipated. Their strong performance led to an increased full-year EPS contribution expectation of $0.20 per share, up from the prior $0.15 per share, highlighting the successful leverage of the Crane business system.

Aerospace & Advanced Technologies Momentum

The AAT segment led performance with 13% core sales growth and a record backlog of nearly $1.3 billion, up 11% core year-over-year. Demand remains very strong across commercial aerospace and defense markets, with accelerating demand in power solutions for AESA radar platforms and expansion into emerging vehicle electrification programs.

Full-year core sales growth for AAT is now expected to exceed the long-term 7% to 9% range.

Process Flow Technologies Recovery and Outlook

PFT delivered a second consecutive quarter of sequential core backlog growth, improving 2% sequentially, despite core sales being down 1.4% year-over-year. Management expressed confidence in a strong second half, expecting positive year-over-year core growth driven by strengthening orders, increased quote activity, and positive demand trends in chemical production (especially Americas), industrial power, and cryogenics.

Strategic Capital Deployment and M&A Pipeline

Crane repaid $100 million of debt in the quarter and another $90 million post-quarter, achieving a pro forma net leverage of approximately 1.2x. The company maintains a strong balance sheet and prioritizes M&A, actively evaluating opportunities that are accretive to growth, margin, and technology, with the M&A pipeline described as stronger than ever.

Missile Demand and Commercial Aftermarket

The company currently has $35 million in content across over 10 missile programs, with customer forecasts indicating a potential 4x expansion by the end of the decade. In the commercial aftermarket, demand remains solid, with an approximate run rate of $55 million to $60 million per quarter and an expected mid-to-upper single-digit growth profile.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.