Crane Company · NYSE:CR
Crane — Investor Day (March 2025)
120 slides from Crane's investor day presentation, Mar 6, 2025
Slide 1: Crane Aerospace & Electronics Meeting
CRANE AEROSPACE & ELECTRONICS MEETING March 6, 2025
Slide 2: Forward Looking Statements – Disclaimer
FORWARD LOOKING STATEMENTS – DISCLAIMER This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, inclu
Slide 3: Agenda
TIME TOPIC PRESENTER 7:30-7:35 Welcome/Introduction Allison Poliniak 7:35-7:50 Welcome to the Machine Max Mitchell 7:50-8:35 The Machine at Work Alex Alcala 8:35-8:50 Generating Results Rich Maue 8:50-9:05 Executing the Machine Shangaza Dasent 9:05-9:15 Q&A All 9:15-9:30 Break 9:30-10:00 Commercial
Slide 4: What You Will Hear Today
WHAT YOU WILL HEAR TODAY THE “MACHINE” that is our business system and how it drives our success CONTINUOUS EVOLUTION of Crane Company towards higher growth, higher margin businesses LEADS TO DRIVING GROWTH above the market
Slide 5: Welcome to the Machine
WELCOME TO THE MACHINE Max Mitchell CHAIRMAN, PRESIDENT, AND CHIEF EXECUTIVE OFFICER
Slide 6: Welcome!
Welcome! 6
Slide 7: Being Crane
BEING CRANE I am resolved to conduct my business in the strictest honesty and fairness; to avoid all deception and trickery; to deal fairly with both customers and competitors; to be liberal and just toward employees; and to put my whole mind upon the business. Resolution Made by Richard Teller Cran
Slide 8: Our Thesis - Building Momentum
OUR THESIS - BUILDING MOMENTUM Solid organic growth Continued margin profile, led by 4-6% 35%-40% expansion, technology innovation Operating led by superior and new product Core Growth products, strong development Leverage pricing, and operational excellence Growth Disciplined approach to acquisitio
Slide 9: Continue to Drive Success
CONTINUE TO DRIVE SUCCESS Crane Company vs. S&P Midcap Capital Goods Crane Company 2024 +30 % 1.70 1.50 1.30 S&P Midcap Capital Goods Index S&P Midcap Capital +16 1.10 % Goods Index 0.90 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 REMAIN FOCUSED ON LONG-TERM S
Slide 10: The Machine
THE MACHINE CRANE BUSINESS SYSTEM What How ▪ Customer ▪ Culture, People, Process ▪ Cadence ▪ Strategy ▪ Discipline ▪ Process to all things ▪ Details ▪ Best in class methodologies ▪ Execution ▪ Relentless focus on waste ▪ Repetition ▪ Results ▪ Extremely metric driven ▪ Never good enough ▪ Profitable
Slide 11: Why Is Crane Unique?
WHY IS CRANE Voice. of the MBCRANE BUSINESS SYSTEME EEE everyone. everywhere. Customer Satisfaction & Breakthrough Innovation CRANE 1
Slide 12: Today's Key Messages
We are doing what we told you we would do ▪ Executing on all commitments TODAY’S ▪ Outperforming relative to guidance and expectations KEY MESSAGES We are driving accelerating growth across the portfolio ▪ Confident in 4%-6% long-term average core sales growth Execution and operating leverage will d
Slide 13: The Machine at Work
THE MACHINE AT WORK Alex Alcala EXECUTIVE VICE PRESIDENT & CHIEF OPERATING OFFICER
Slide 14: Key Messages – The Machine at Work
We are positioned to continue to drive strong growth and KEY MESSAGES – margin improvement THE MACHINE AT WORK We have developed a unique MACHINE at Crane that drives profitable growth The MACHINE is scalable to support accelerated inorganic growth Our performance has been strong, and it will only c
Slide 15: We Have Been on a Journey Transforming Our Business
WE HAVE BEEN ON A JOURNEY TRANSFORMING OUR BUSINESS… FOCUSED ON HIGHER GROWTH SEGMENTS 5 Segments 4 Segments 25 P&Ls 3 Growth Platforms 12 P&Ls 2 Growth Platforms 10 P&Ls 80+ Benefit Plans 3 Benefit Plans 6 P&Ls Very Diversified Operating Company A&E and Process Flow Holding Company Integrated Opera
Slide 16: Businesses Aligned with Strong Megatrends
BUSINESSES ALIGNED WITH STRONG MEGATRENDS … NEXT GENERATION CRYOGENICS & THE NEW 5%+ COMMERCIAL AIRCRAFT HYDROGEN ECONOMY 6%+ CAGR CAGR WASTEWATER: TIGHTENING ADVANCING MILITARY 3%+ CAPABILITIES REGULATIONS & CIRCULAR 5%+ CAGR ECONOMY CAGR PHARMA: INCREASING LIFE 6%+ COMMERCIALIZATION OF SPACE EXPEC
Slide 17: And Durable Aftermarket Demand
… AND DURABLE AFTERMARKET DEMAND AEROSPACE & ELECTRONICS PROCESS FLOW TECHNOLOGIES 30% Aftermarket 50% 50% 70% OEM 17
Slide 18: A Strategy Fueled by Innovation
A STRATEGY FUELED BY INNOVATION CHEMICAL & PHARMA WASTEWATER INDUSTRIAL AUTOMATION CRYOGENICS Share gain results in 2x COMMERCIAL AERO DEFENSE Market Growth SPACE 18
Slide 19: Supported by Commercial and Operational Excellence
SUPPORTED BY COMMERCIAL AND OPERATIONAL EXCELLENCE COMMERCIAL EXCELLENCE OPERATIONAL EXCELLENCE PRODUCT LINE CHANNEL STRATEGIC SIMPLIFICATION MANAGEMENT ACCOUNT 80/20 MANAGEMENT CUSTOMER FOCUS IN EVERYTHING WE DO VALUE PRICING VERTICAL UPSKILL SELLING CADENCE TECHNIQUES 19
Slide 20: Outstanding Talent Development
OUTSTANDING TALENT DEVELOPMENT DEVELOPMENT PROGRAMS INTERNAL PROMOTIONS TURNOVER EXAMPLES BU EXAMPLE BU EXAMPLE 72% 70% 70% Being Crane 8.2% 9.0% Development 7.7% Program, The Woodlands, TX 6.3% Site Leader Bootcamp, Cwmbran UK Campus Hiring 2022 2023 2024 2022 2023 2024 Turnover Industry Benchmark
Slide 21: History of Successful Acquisitions
HISTORY OF SUCCESSFUL ACQUISITIONS PRE-SEPARATION POST-SEPARATION MANAGEMENT HAS A LONG TRACK RECORD OF SUCCESSFUL M&A 21
Slide 22: Leading to Above Market Growth and Margin Expansion
LEADING TO ABOVE MARKET GROWTH AND EXCEPTIONAL MARGIN EXPANSION On Track for Record Margins in 2025 with Adjusted Segment Operating Margin for Strategic Growth Platforms* Substantial Future (Aerospace & Electronics and Process Flow Technologies) Upside 22.5%+ 21.9% 20.0% 18.5% 17.0% 15.5% 13.7% 2019
Slide 23: How Do We Drive This Performance? The Machine
HOW DO WE DRIVE THIS PERFORMANCE? THE MACHINE A unique MACHINE at Crane that drives PROFITABLE growth A MACHINE that is scalable to support ACCELERATED growth LET’S TALK ABOUT HOW THE MACHINE WORKS IN THE CONTEXT OF AN ACQUISITION 23
Slide 24: Immediate Strategy Review and SD Development
IT STARTS WITH IMMEDIATE STRATEGY REVIEW AND SD DEVELOPMENT Top Level SD 5 Column EXAMPLE – 2024 ACQUISITION Action Plan SALES EXCELLENCE: Expand our sales force and capacity to win in XX target segment with 20 new sites and 5 new customers. COMMERCIAL AND OPERATIONAL EXCELLENCE: Top Level Improving
Slide 25: Assess the Talent and Implement Intellectual Capital Process
ASSESS THE TALENT AND IMPLEMENT THE INTELLECTUAL CAPITAL PROCESS EXAMPLE – 2024 ACQUISITION VPGM (Promoted) Director Site Leader Global Site Leader Director of Engineering Global Key Business Finance Business Sales Manager Site 1 Site 2 Accounts Development Line Manager Key Sales Engineer Quality Ap
Slide 26: Deploy Value Pricing Practices
DEPLOY VALUE PRICING PRACTICES EXAMPLE – VALUE PRICING Product Value Commonly Misunderstood $100 $1,150 $100 $950 $800 Analytical Approach Market Analytics Voice of the Customer Initial Pricing Next Best Value # 1 Value # 2 New Pricing Alternative SIGNIFICANT VALUE CREATION – ACCELERATED GROWTH AND
Slide 27: Execute on Product Line Simplification Actions
EXECUTE ON PRODUCT LINE SIMPLIFICATION ACTIONS EXAMPLE Products A = 72 Products B = 482 Products Super Service top customers 1 2 to drive growth Sales = $22,348,328 Sales = $4,333,123 A = 6 Customers Sales % = 73.6% Sales % = 14.3% Ship Profit = $9,260,626 Ship Profit = $1,702,751 Ship Profit % of S
Slide 28: Drive Factory Transformations
DRIVE FACTORY TRANSFORMATIONS – CUSTOMER SATISFACTION & PRODUCTIVITY 40% Improvement Current State mapped and clearly understood Leadtime Before Leadtime After Immediate actions and longer-term Future State action plan implemented KPI’s and repeatable cadence to drive the performance 28
Slide 29: Orchestrated Through a Holistic and Disciplined Cadence
ALL ORCHESTRATED THROUGH A HOLISTIC AND DISCIPLINED CADENCE CADENCE DESIGN STRATEGIC PLANNING AND ANNUAL STRATEGY HOW & EXECUTION DEPLOYMENT PLANNING ▪ Culture, People, Process ▪ Cadence MONTHLY AND QTLY VERTICALS GOING TO GEMBA ▪ Discipline FINANCIAL PLANNING REVIEWS (CUSTOMERS, SITES) & EXECUTION
Slide 30: The Machine – Results from Recent Acquisitions
THE MACHINE – RESULTS FROM RECENT ACQUISITIONS EXAMPLE 1 – ACQUISITION EXAMPLE 2 – ACQUISITION Sales Growth Sales Growth 17% 18% EBITDA Growth EBITDA Growth 48% 60% 2023 Price Productivity New Growth 2024 2023 Price Productivity New Growth 2024 (Volume) (Volume) SIGNIFICANT VALUE CREATION – ACCELERA
Slide 31: The Machine Operates Consistently at Every Business
THIS IS THE MACHINE THAT OPERATES CONSISTENTLY AT EVERY BUSINESS AT CRANE POWERED BY OUR UNIQUE CULTURE 2 Growth Platforms 6 P&Ls 26 Solution Sets led by VP/GM’s A&E and Process Flow Focused IOC DRIVING ABOVE MARKET GROWTH AND SUBSTANTIAL MARGIN EXPANSION 31
Slide 32: Summary
SUMMARY Our performance has been strong, and it will only continue to get better We have developed a unique MACHINE at Crane that drives profitable growth The MACHINE is scalable to support accelerated inorganic growth 32
Slide 33: Generating Results
GENERATING RESULTS Rich Maue EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER
Slide 34: 2024 Another Outstanding Year
2024 ANOTHER OUTSTANDING YEAR $ Millions GAAP Adjusted* except per-share amounts FY 2024 FY 2023 Change FY 2024 FY 2023 Change SALES $2,131 $1,862 +15% $2,131 $1,862 +15% OPERATING PROFIT $356 $250 +42% $383 $297 +29% OPERATING MARGIN 16.7% 13.4% +330 bps 18.0% 15.9% +210 bps EARNINGS PER SHARE $4.6
Slide 35: History of Strong Execution
HISTORY OF STRONG EXECUTION On Track for Record Adjusted Segment Operating Margin for Strategic Growth Platforms* Margins in 2025 with (Aerospace & Electronics and Process Flow Technologies) Substantial Future Upside 22.5% + 21.9% 19.2% 17.5% 17.5% 16.7% 16.6% 16.1% 15.7% 15.7% 15.9% 15.6% 15.4% 15.
Slide 36: 2025 Looks to Be Another Great Year
2025 LOOKS TO BE ANOTHER GREAT YEAR $ millions except EPS FY 2025 GUIDANCE Key Highlights for 2025 Revenue REVENUE $2,230 - $2,270 Core sales growth in the range of 4-6% ADJUSTED SEGMENT OPERATING PROFIT $500-$515 ▪ Aerospace & Electronics + HSD ADJUSTED SEGMENT OPERATING MARGIN 22.5%+ ▪ Process Flo
Slide 37: Capital Optionality Today
CAPITAL OPTIONALITY TODAY AS OF December 31, 2024 ~$1,107M Liquidity Additional Details $800M ▪ Interest rate on Term Loan Undrawn (~5.9% in current market conditions) Revolver ~$247 M ▪ Term Loan and Revolver provide flexibility for early repayment from strong underlying free cash flow Total Debt ▪
Slide 38: Capital Deployment Potential
CAPITAL DEPLOYMENT POTENTIAL ~$4 Billion Available from 2025-2028 ~$4 Billion Incremental Debt Capacity M&A and/or Repurchases Available for M&A and/or repurchases while retaining strong, target credit metrics Operating Cash Flow Substantial additional value creation Dividends potential from flexibl
Slide 39: Exciting Value Creation Opportunity
EXCITING VALUE CREATION OPPORTUNITY ~$2.3B ~40% aftermarket sales from strategic 4-6% in sales growth platforms long-term core sales growth 35%-40% ~22.5+% Substantial operating leverage* pre-corporate Adjusted Operating margin* (2025G) M&A opportunity EXPECT DOUBLE-DIGIT CORE EPS GROWTH WITH UPSIDE
Slide 40: Executing the Machine – Process Flow Technologies
EXECUTING THE MACHINE – PROCESS FLOW TECHNOLOGIES Shangaza Dasent SENIOR VICE PRESIDENT, PROCESS FLOW TECHNOLOGIES
Slide 41: Shangaza Dasent
SHANGAZA DASENT Experience Danaher Corporation SVP ▪ Pall Corporation: Series of progressive operating roles Process flow technologies ▪ PID, DHR Corp: Earlier roles in Strategy / business development Strategy / business development at JM Huber McKinsey: served chemical, pharma and medical products
Slide 42: What You Will Hear Today – How Is the Machine Applied
WHAT YOU WILL HEAR TODAY – HOW IS THE MACHINE APPLIED Shifting our underlying exposure to higher growth end-markets and accelerating core growth Driving performance improvements resulting in record performance (growth, margin expansion) Leveraging investments in attractive sectors to accelerate inor
Slide 43: Who We Are and Where We Play
WHO WE ARE AND WHERE WE PLAY Process Flow Technologies ~$1.2B Sales BY MARKET* BY APPLICATION* BY SOLUTION* ~21% OP** Services Energy Cryogenics ROW (2024) Specialty Chemical Nuclear & Pharma China Pipes & 4% Total Addressable Market 7% Fittings 8% 4% Emerging 6% Valves 11% 8% Markets ~$18B Industri
Slide 44: Transforming the Portfolio: Shift to Higher Growth Segments
TRANSFORMING THE PORTFOLIO: SUBSTANTIAL STRUCTURAL SHIFT TO SEGMENTS WITH HIGHER GROWTH RATES CORE GROWTH: 1-2% CAGR CORE GROWTH: 3-5% CAGR Cryogenics, 4% Chemical Solutions, 19% 36% CAGR Chemical Solutions, 35% of Sales Water & Wastewater, 8% 10% Pharma, 3% Industrial Automation, 7% 62% of Sales Wa
Slide 45: And Structurally Higher Margin Profile
…AND STRUCTURALLY HIGHER MARGIN PROFILE 11.1% Adjusted Margin* 20.9% Adjusted Margin* Cryogenics, 4% Chemical Solutions, 19% 36% CAGR Chemical Solutions, 35% of Sales Water & Wastewater, 8% Pharma, 3% Industrial Automation, 7% 10% 62% of Sales Water & Wastewater, 11% Pharma, 4% Industrial Automation
Slide 46: Machine Approach Driving Growth and Margin Expansion
MACHINE APPROACH DRIVING GROWTH AND MARGIN EXPANSION Sales (FX Neutral, $M) and Adjusted Operating Margin (%)* 1. Improved growth rates via structural Mid 20%’s change to the portfolio 1,300 2. Commercial and Operational 1,200 Sales Margins 20.9% Excellence enabling above market growth and margin ex
Slide 47: Future: Applying the Machine to Drive Inorganic Growth
FUTURE: APPLYING THE MACHINE TO DRIVE INORGANIC GROWTH High Space 1 Space 6 Space 2 Stage 1 Space 5 Opportunity Log Space 4 Space 3 Stage 2 Focus areas… Space 8 Business Unit Screen vectors adjacent to PFT Attractiveness Space 9 Stage 3 Cryogenics example Space 7 General Opportunity of Interest (eva
Slide 48: Cryogenics Example – Step Change in Performance
CRYOGENICS EXAMPLE – STEP CHANGE IN PERFORMANCE REVENUE STRATEGY Reviewed existing strategy and created new initiatives DEPLOYMENT to upgrade competitive capabilities 15%+ TALENT Added key roles and filled key leadership positions with high performing talent FACTORY Created roadmap of process improv
Slide 49: Summary
SUMMARY STRATEGY IS WORKING… achieving faster growth via structural shift to higher growth end-markets REPEATABLE TOOLS AND PROCESSES driving operating performance STRUCTURED APPROACH to identify, acquire and integrate attractive acquisitions into the portfolio to accelerate inorganic growth 49
Slide 50: Commercial Excellence in Aerospace and Electronics
THE MACHINE – COMMERCIAL EXCELLENCE IN AEROSPACE AND ELECTRONICS John J. Higgs PRESIDENT, AEROSPACE & ELECTRONICS
Slide 51: Crane Aerospace & Electronics: Who Are We?
CRANE AEROSPACE & ELECTRONICS WHO ARE WE? A NICHE PROVIDER of mission critical, proprietary, highly ruggedized, product and system solutions A TRUSTED PARTNER to “Blue Chip” prime and Tier 1 customers, both established and emerging A SOLE-SOURCE SUPPLIER, with no build to print, and high aftermarket
Slide 52: Where and How Do We Play?
WHERE AND HOW DO WE PLAY? Aerospace & Electronics BY MARKET* BY APPLICATION* BY SOLUTION* $933M Sales 23.6% OP* Cabin Military Aftermarket Microwave Sensing Total Served Market 7% 7% 21% ~$8.3B 35% 30% Fluid Proprietary, Differentiated 21% Technology 22% 65% 70% 23% 9 Commercial Power Landing Global
Slide 53: We Possess Unique and Proprietary Capabilities
WE POSSESS UNIQUE AND PROPRIETARY CAPABILITIES ELECTRICAL SENSING & FLUID BRAKE SIGNAL POWER CONTROL MANAGEMENT CONTROL PROCESSING MANAGEMENT Complex, high High accuracy Pumps and fluid Fast response brake wired and management systems control for high density, PCBs and Ruggedized, wireless sensing f
Slide 54: Which Serve Attractive, Growing End Markets
WHICH SERVE ATTRACTIVE, GROWING END MARKETS 10-YR. MARKET MARKET MARKET SIZE GROWTH RATE $2T Commercial Market Aerospace $980B 3%-5% Defense $720B 2%-3% ~4% Annual Space $400B 4%-8% Growth Rate AEROSPACE, DEFENSE AND SPACE IS A $2T MARKET WITH ~4% ANNUAL GROWTH RATE 54
Slide 55: While Delivering Exceptional Results
WHILE DELIVERING EXCEPTIONAL RESULTS SOLUTION(S) PRODUCT(S) SALES & ADJUSTED OPERATING MARGIN* $1,400 30% SENSING $1,200 25% $1,000 LANDING 20% $800 15% FLUID $600 10% $400 POWER $200 5% $- 0% 2019 2020 2021 2022 2023 2024 2025G 2026F 2027F 2028F MICROWAVE Sales Operating Margin 5 NICHE, HIGHLY ENGI
Slide 56: Differentiated from Peers by the Crane Business System
WE ARE DIFFERENTIATED FROM PEERS BY THE CRANE BUSINESS SYSTEM RECORD RESULTS DESPITE: Persistent supply chain disruptions Ongoing inflation Continued labor market challenges MANAGEMENT CADENCE AND DISCIPLINED EXECUTION DRIVES DIFFERENTIATED RESULTS 56
Slide 57: Much More Than Just Skilled Operators
BUT WE ARE MUCH MORE THAN JUST SKILLED OPERATORS MANUFACTURING OPERATIONAL EXCELLENCE IS ONLY PART OF THE STORY 57
Slide 58: Expert Commercial Excellence Practitioners
WE ARE EXPERT COMMERCIAL EXCELLENCE PRACTITIONERS DISCIPLINED COMMERCIAL EXECUTION 58
Slide 59: Technology Development Approach Aligned to Future Customer Needs
OUR TECHNOLOGY DEVELOPMENT APPROACH IS FULLY ALIGNED TO FUTURE CUSTOMER NEEDS VOICE OF THE CUSTOMER DRIVING TECHNOLOGY INNOVATIVE, FLEXIBLE, AND (VOC) DEVELOPMENT SCALABLE SOLUTIONS Tech Requirements 2010 - 2015 2016 - 2020 2021+ SWaP Standard Additional Next Generation Systems Features Based System
Slide 60: An Approach Born Out of Lessons Learned
AN APPROACH BORN OUT OF THE LESSON LEARNED FROM 787 Crane Investment $200M+ ROIC POOR CUSTOMER SPECIFIC TECHNOLOGY AND SOLUTIONS YIELDING HIGH ENGINEERING SPEND AND POOR DESIGN LEVERAGE 60
Slide 61: Technology Developed to Be Modular and Scalable
OUR TECHNOLOGY IS DEVELOPED TO BE MODULAR AND SCALABLE FOR A WIDE CROSS SECTION OF CUSTOMERS STANDARD SYSTEMS ARCHITECTURE, MODULAR BUILDING BLOCKS, SCALABLE SOLUTIONS 61
Slide 62: Industry Leading Tire Pressure Indication System
WHICH LED TO THE DEVELOPMENT OF AN INDUSTRY LEADING TIRE PRESSURE INDICATION SYSTEM (TPIS) LEGACY SMARTSTEM + READER Total Sales $570M+ LONG RANGE WIRELESS Market Share #1 CONFIGURABLE AND FLEXIBLE TPMS SOLUTIONS SUPPORT VARIOUS AIRCRAFT PLATFORMS AND MAINTENANCE SYSTEMS 62
Slide 63: Next Generation Anti-Skid Brake Control System Architecture
A NEXT GENERATION STANDARD AND SCALABLE ANTI-SKID BRAKE CONTROL SYSTEM ARCHITECTURE Total Sales $2B+ Market Share #1 STANDARD BRAKE CONTROL ARCHITECTURE APPLIED TO BOTH MILITARY AND COMMERCIAL APPLICATIONS 63
Slide 64: High Power Conversion Products for AESA Radar
A FAMILY OF HIGH POWER CONVERSION PRODUCTS USED ON EVERY AESA RADAR Total Sales $700M+ Market Share #1 TPY-4 EVERY AESA RADAR DEVELOPED IN THE LAST 10 YEARS USES OUR POWER CONVERSION FAMILY OF PRODUCTS 64
Slide 65: Configurable Thermal Management System Solutions
A FAMILY OF RAPIDLY CONFIGURABLE THERMAL MANAGEMENT SYSTEM SOLUTIONS FOR LIQUID COOLING THERMAL MANAGEMENT SOLUTIONS FOR ELECTRIC PROPULSION, FUEL CELLS, NEXT GENERATION MILITARY AIRCRAFT AND MILITARY LAND VEHICLES 65
Slide 66: Fuel Flow Measurement and Lubrication
AND NEAR 100% MARKET SHARE CAPTURE FOR NEW ENGINE FUEL FLOW MEASUREMENT AND LUBRICATION Total Sales $500M+ Market Share #1 OUR LUBE AND SCAVENGE PUMPS AND FUEL TRANSMITTERS ARE USED ON NEARLY ALL CURRENT GENERATION COMMERCIAL JET ENGINES AND NEXT GENERATION DEMONSTRATORS 66
Slide 67: Leveraged for New Designs and Installed Base
ALL OF WHICH CAN BE LEVERAGED NOT JUST FOR NEW DESIGNS, BUT TO THE INSTALLED BASE AS WELL PRODUCT IS DESIGNED TO SUPPORT BOTH NEW AND MODERNIZATION/UPGRADE OPPORTUNITIES 67
Slide 68: End-to-End Business Execution: F-16 Modernization & Upgrade
THE MACHINE END-TO-END BUSINESS EXECUTION F-16 MODERNIZATION & UPGRADE Ryan Sands VICE PRESIDENT, LANDING & CONTROL SYSTEMS
Slide 69: Modernization and Upgrade Opportunity for Largest Fighter Fleet
CRANE IDENTIFIED A MODERNIZATION AND UPGRADE OPPORTUNITY FOR THE LARGEST FIGHTER FLEET IN THE WORLD LARGE INSTALLED BASE 1000+ aircraft with USA 2000+ more worldwide LEGACY DESIGN Architecture stemming from the 1970’s A CLEAR NEED Unacceptable braking system failure THE BRAKE CONTROL IS A CRITICAL S
Slide 70: Pursuit Spanned Nearly Two Decades
THE PURSUIT SPANNED NEARLY TWO DECADES OF CUSTOMER DEVELOPMENT AND SUPPORT STRATEGIC SELLING 2003 - 2007 F-16 WST UPGRADE 2009 - 2014 C-130 BCS REDESIGN 2010 - 2015 B-52 BCS REDESIGN KEY ACCOUNT MANAGEMENT SPANNING MULTIPLE DECADES AND PLATFORMS 70
Slide 71: Led Our Customer to an Optimal Solution
OVER TIME, WE LED OUR CUSTOMER TO AN OPTIMAL SOLUTION MAINTENANCE SMALL PROGRAM SMALL PROGRAM FULL BCS RFQ VISITS Identified key unspoken Supported small $2M Upgrade for niche RFQ Received for full problem with metering valve upgrade technology used in small F-16 BCS redesign maintenance and repair
Slide 72: Leveraging Unique Capabilities and Value Proposition
WE DID THIS BY LEVERAGING OUR UNIQUE CAPABILITIES AND VALUE PROPOSITION OUR AIRCRAFT SYSTEM MODELING CAPABILITY AND VERTICAL INTEGRATION OF PRODUCTION ENABLE UNMATCHED PERFORMANCE, PACKAGING, AND SPEED TO DEVELOPMENT HARDWARE 72
Slide 73: Brake Control System Retrofit on a 50-Year-Old Platform
TO SECURE A BRAKE CONTROL SYSTEM RETROFIT PROGRAM ON A 50-YEAR-OLD AIRCRAFT PLATFORM BRAKE CONTROL MANIFOLD BRAKE CONTROL UNIT A “STATE OF THE ART” BCS WAS SEAMLESSLY CONFIGURED TO WORK WITH THE EXISTING PLATFORM 73
Slide 74: Leveraging CBS Toolset for Immediate Manufacturing Capability
WHILE LEVERAGING OUR CBS TOOLSET TO ENSURE IMMEDIATE MANUFACTURING CAPABILITY RAPID INDUSTRIALIZATION ENSURES THE CAPACITY TO OPERATIONALLY EXECUTE AND RAMP SALES QUICKLY 74
Slide 75: Delivering Breakthrough Results
IN ORDER TO DELIVER BREAKTHROUGH RESULTS ($M) $35,000 Total Program Sales $200M+ $30,000 $25,000 $20,000 $15,000 $10,000 Versus Last Fighter BCS $5,000 LT: <50% $- 2024 2025G 2026F 2027F 2028F 2029F 2030F 2031F 2032F 2033F 2034F NRE: <40% Lower Range Upper Range BETTER TIME TO MARKET, LOWER NON-RECU
Slide 76: In Summary – The Machine Delivers
IN SUMMARY – THE MACHINE DELIVERS Opportunity Identification Customer Intimacy Optimized Solutions Compelling Value Propositions Rapid Industrialization Breakthrough Results 76
Slide 77: Strategy Deployment: Next Generation Programs
THE MACHINE STRATEGY DEPLOYMENT NEXT GENERATION PROGRAMS Joseph Mundinger VICE PRESIDENT, SENSING & POWER SYSTEMS
Slide 78: Annual Strategic Planning Process
OUR ANNUAL STRATEGIC PLANNING PROCESS SEEKS TO QUANTIFY AND PRIORITIZE GROWTH OPPORTUNITIES ACROSS THE ENTERPRISE Ranked technologies for development / solution pursuits Blue Sky VOC Market & Market Studies Competitor Analysis Validation of ideas through OEM and Tier 1, 2, 3 technical interchange me
Slide 79: Initiatives Aligned to Key Market Trends
THESE INITIATIVES ARE MOST OFTEN ALIGNED TO KEY MARKET TRENDS, BUT CAN INCLUDE “BLUE SKY” AS WELL Next Generation Advancing Military Blue Sky Single Aisle Aircraft Capabilities Ideation RIGOROUS PROCESS OF IDENTIFYING BREAKTHROUGH GROWTH OPPORTUNITIES 79
Slide 80: Strategic Initiatives Prioritized and Implemented
STRATEGIC INITIATIVES ARE THEN PRIORITIZED AND IMPLEMENTED VIA A DISCIPLINED DEPLOYMENT PROCESS EXECUTION INCLUDES ELEMENTS OF COMMERCIAL EXCELLENCE, TECHNOLOGY DEVELOPMENT, AND INDUSTRIALIZATION 80
Slide 81: Technology Readiness Process
TECHNOLOGY READINESS FOLLOWS A PROCESS OF LEARNING, DEMONSTRATION, AND REFINEMENT R&T Process Formal PDP Initiation, Technology Maturation, Risk Reduction Compliance, Quality, Cost Rapid Introduction of New Capabilities and Schedule TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9 Research Pilo
Slide 82: Core Technology Thrusts
CORE TECHNOLOGY THRUSTS INCLUDE POWER CONVERSION, MORE ELECTRIC COMPONENTS AND SYSTEMS, AND THERMAL MANAGEMENT CORE TECHNOLOGY POSITIONED TO CAPITALIZE ON MARKET NEEDS 82
Slide 83: Target Pursuit - Next Generation Single Aisle
TARGET PURSUIT - NEXT GENERATION SINGLE AISLE LANDING SYSTEMS ▪ Brake Control System EBAC ▪ RDC / IMA FLUID MANAGEMENT ▪ Engine Lube & Scavenge Pumps ▪ Variable Frequency Fuel Pumps ▪ Fuel Flow Transmitters SENSING SYSTEMS ▪ Wireless Tire Pressure Management ▪ IMA Based Prox. Sensing Systems ELECTRI
Slide 84: Target Pursuit - Next Generation Fighter and CCA
TARGET PURSUIT - NEXT GENERATION FIGHTER AND CCA LANDING SYSTEMS ▪ Zero Wheel Speed Sensing ▪ High Pressure Brake Control Manifolds ▪ SSA Derived Brake Control Units ▪ Electric Brake Actuator Controllers FLUID MANAGEMENT ▪ Engine Lube & Scavenge Pumps ▪ Variable Frequency Fuel Pumps ▪ Fuel Flow Tran
Slide 85: NGSA, 6th Gen, and CCA – Technology Readiness
NGSA, 6TH GEN, AND CCA – TECHNOLOGY READINESS HP ATRU Zero WST FlexTech Prox Modular Motor HV DC-DC Variable Freq. (In Service) (TRL 8) (TRL 7) Controller (TRL 6) Motors (TRL 6) (TRL 9) Early Platform Development Certification and Production 2020s 2030+ Oil & Fuel Wireless Tire High Power Brake Cont
Slide 86: Target Pursuit - Vehicle Electrification
TARGET PURSUIT - VEHICLE ELECTRIFICATION Thermal Management Energy Storage Capabilities Battery / Hydrogen High Power ▪ High Power DC-DC Conversion Converter Products ▪ Bi-Directional Power Conversion ▪ Liquid Cooling Motor Drives Integrated Starter Generator Controllers High Power Inverter Pursuits
Slide 87: Key R&D and Technology Readiness Level
KEY R&D AND TECHNOLOGY READINESS LEVEL HP ATRU HP/ HV Conversion FlexTech Prox Modular TMS HV DC-DC (In Service) (In Service) (TRL 7) (TRL 9) (TRL 6) Demonstrators and System Development Production / Deployment 2020s 2030+ Bi-Directional Wireless Tire High Power HP Inverter HV SSPC Conversion Pressu
Slide 88: Key Pursuits Provide New Growth Opportunities
THESE KEY PURSUITS PROVIDE SIGNIFICANT NEW GROWTH OPPORTUNITIES OVER THE NEXT 15 YEARS Total Program Sales $2.5B+ OUR PRODUCT SOLUTIONS WILL HAVE BETTER TIME TO MARKET, LOWER NON-RECURRING COST, AND DIFFERENTIATED SWAP WHEN COMPARED TO THE COMPETITION 88
Slide 89: In Summary – The Machine Delivers
IN SUMMARY – THE MACHINE DELIVERS Ideation and Strategic Prioritization Technological Differentiation and Maturity Cost Competitiveness Platform Agnostic Solutions Increased Market Capture Accelerated Growth 89
Slide 90: Mergers and Acquisitions
THE MACHINE MERGERS AND ACQUISITIONS John J. Higgs PRESIDENT, AEROSPACE & ELECTRONICS
Slide 91: Disciplined M&A Process and Large Funnel
WE HAVE A DISCIPLINED M&A PROCESS AND A LARGE FUNNEL OF OPPORTUNITIES Opportunity Log OL Step Out Business Unit Screen Adjacent BUS General Opportunity Of Interest GOI Core Target Passive TP Target Active TA Boneyard BY Active Target OVER 100 TARGETS IN THE PIPELINE 91
Slide 92: Focus on Strengthening Our Core Capabilities
OUR FOCUS IS ON STRENGTHENING OUR CORE CAPABILITIES Higher ELECTRICAL POWER MANAGEMENT Conversion, Distribution, and Control THERMAL SENSING Space Attractiveness SENSING COMPONENTS AND SYSTEMS ELECTRO- Condition, Position, Pressure and Flow MECHANICAL POWER FLUID MANAGEMENT Liquid, Vapor, Components
Slide 93: Aggressively Pursuing Crane Like Adjacencies
WHILE AGGRESSIVELY PURSUING “CRANE LIKE” ADJACENCIES ▪ Technology Leadership ▪ IP Ownership MARKETS CAPABILITIES ▪ Mission or Application Critical TARGET ▪ High Barriers to Entry ▪ Sole Source Positions CUSTOMERS TRENDS ▪ Opportunity to Price for Value STRATEGIC “CRANE LIKE” ADJACENCIES WILL CREATE
Slide 94: Data-Driven Approach and Disciplined Screening Criteria
BUT ALWAYS WITH A DATA-DRIVEN APPROACH AND DISCIPLINED SCREENING CRITERIA STRATEGIC CRITERIA ▪ Attractiveness ▪ Extendibility ▪ Alignment with capabilities / “right to win” FINANCIAL CRITERIA ▪ 10% ROIC by year 5 ALL ACQUISITIONS MUST MEET BOTH STRATEGIC AND FINANCIAL CRITERIA 94
Slide 95: Rapid and Holistic Post Acquisition Integration
AND ONCE ACQUIRED A RAPID AND HOLISTIC POST ACQUISITION INTEGRATION DAY DAY DAY DAY 1 30 60 100 100 Day Review March/1Q CBS Fundamentals HFM Close Jan. Soft Close EHS Permitting Plan Daily Flash Crane Benefits Wage / Hour Preview Mtgs & I9 Audit Physical Inventory ● ● CAE Full IT Supplier Mgmt. Coun
Slide 96: In Summary
IN SUMMARY John Higgs PRESIDENT, AEROSPACE & ELECTRONICS
Slide 97: The Machine Delivers
THE MACHINE DELIVERS Consistently Repeatable Operational and Commercial Excellence Strategy Execution Technology Leadership Modular, Scalable, and Customer Agnostic Product Solutions Disciplined M&A 97
Slide 98: Confidence in Long-Term Sustainable Growth
WHICH LEADS TO CONFIDENCE IN LONG-TERM SUSTAINABLE GROWTH ($M) CRANE A&E GROWTH 9% CAGR $1,700 10-Year 10-Year $1,500 A&E SALES New Business Core Growth $1.5B +48 $1,300 7% CAGR $1,100 $900 % $700 $500 2019 2020 2021 2022 2023 2024 2025G 2026F 2027F 2028F 2029F 2030F 2031F 2032F 2033F 2034F Exceedin
Slide 99: The Defense Power Growth Story
THE MACHINE THE DEFENSE POWER GROWTH STORY Trey Endt VICE PRESIDENT, DEFENSE POWER
Slide 100: Defense Power – Who Are We? – Site and Products
DEFENSE POWER – WHO ARE WE? – SITE AND PRODUCTS Facility ▪ Fort Walton Beach, Florida ▪ 70,000 Sq. Ft. ▪ 200 Employees Products ▪ Power Conversion ▪ Amplifiers ▪ Transmitters ▪ Electromagnetic Filters INDUSTRY LEADING PROVIDER OF RUGGEDIZED POWER CONVERSION PRODUCTS FOR MISSION CRITICAL DEFENSE APPL
Slide 101: Acquisition Timeline and Historical Sales
OUR ACQUISITION TIMELINE AND HISTORICAL SALES Founded as Keltec 1958 +17% CAGR 2022 – 2028 Acquired by Signal Technologies 1996 Acquired by Crane Company 2003 2019 2020 2021 2022 2023 2024 2025G 2026F 2027F 2028F KEY CUSTOMERS GE Aviation 101
Slide 102: Core Business Was Power Conversion for C4ISR
CORE BUSINESS WAS POWER CONVERSION FOR C4ISR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, INTELLIGENCE, SURVEILLANCE and RECONNAISSANCE (C4ISR) Low Voltage / Low Power Conversion DC power for computers and communications equipment AGED DESIGNS, MED/LOW COMPLEXITY, LIMITED TECHNOLOGY DIFFERENTIATION,
Slide 103: Future Defense Market Trends Define Need for High Power Conversion
FUTURE DEFENSE MARKET TRENDS DEFINED A NEED FOR HIGH POWER CONVERSION Advanced Radar Systems Electric and Hybrid Electric Vehicles Directed Energy Communications Networks and Microgrid Power Stations BOTH UNI-DIRECTIONAL AND BI-DIRECTIONAL HIGH POWER CONVERSION REQUIRED 103
Slide 104: Key Technology Building Blocks Identified
KEY TECHNOLOGY BUILDING BLOCKS WERE IDENTIFIED Highly Efficient Power Factor Correction (PFC) To Reduce Reactive Load Planar PFC Low Profile Planar Magnetics Magnetics Optimized for Heat Dissipation Ultra High-Density Electronic Packaging More Power in Less Space High Density Integrated Integrated C
Slide 105: Differentiated Test Capabilities
AND ENABLED WITH DIFFERENTIATED TEST CAPABILITIES HIGH POWER TEST LABORATORY ▪ 1.5 MW switchgear; > 500 kW for single system ▪ 7000 sq. ft. ▪ Three Overhead Power Rails − 277/480 Vac − 120/208 Vac − Variable voltage, variable frequency ▪ Eight paralleled 62.5 kVA variable sources ▪ Environmental Cap
Slide 106: First Product to Market: Power Conversion for AESA Radar
FIRST PRODUCT TO MARKET WAS A MODULAR FAMILY OF POWER CONVERSION PRODUCTS FOR AESA RADAR ACTIVELY LTAMDS Total Sales ELECTRONICALLY SCANNED ARRAY $700M (AESA) TPY-4 Sentinel Low Voltage / High Power Conversion Market Share TPY-4 / Power Subsystems #1 Chassis Cooling Power Management 100% MARKET SHAR
Slide 107: Development Focused on Enabling Vehicle Electrification
CURRENT DEVELOPMENT IS FOCUSED ON ENABLING VEHICLE ELECTRIFICATION Sales Opportunity $700M MISSION CRITICAL POWER CONVERTORS AND INVERTORS FOR ELECTRIC AND HYBRID-ELECTRIC POWERTRAINS 107
Slide 108: And We Are Winning – Vehicle Demonstrators
AND WE ARE WINNING – VEHICLE DEMONSTRATORS US Army HEMTT US Army XM30 US Army CTT CRANE POWER CONVERSION BEING USED ON ALL LEADING VEHICLE ELECTRIFICATION PLATFORMS 108
Slide 109: Future Opportunities for Microgrids and Directed Energy Weapons
WITH FUTURE OPPORTUNITIES FOR MICROGRIDS AND DIRECTED ENERGY WEAPONS HIGH POWER CONVERSION IS AT THE HEART OF EVERY “MORE ELECTRIC” DEFENSE APPLICATION 109
Slide 110: Growth Enabled by State of the Art Manufacturing
GROWTH IS ENABLED BY “STATE OF THE ART” MANUFACTURING Unit Assembly Module Assembly Chassis Assembly A FUTURE FORWARD FACTORY USING LEAN PRINCIPLES TO DRIVE SINGLE PIECE FLOW 110
Slide 111: Strategic Focus on Vertical Integration
AND A STRATEGIC FOCUS ON VERTICAL INTEGRATION Surface Mount Technology Vibration Test Facility ALL CRITICAL PRODUCTION CAPABILITIES IN HOUSE 111
Slide 112: Room to Grow as Necessary
WITH ROOM TO GROW AS NECESSARY EXPANSION OPPORTUNITY OF ~80,000 SQFT TO SUPPORT CONTINUED GROWTH 112
Slide 113: In Summary – The Machine Delivers
IN SUMMARY – THE MACHINE DELIVERS Business Transformation Technology Differentiation Modular and Scalable Solutions Leading Market Share Manufacturing Capability and Capacity 113
Slide 114: Non-GAAP and Supplemental Information
NON-GAAP AND SUPPLEMENTAL INFORMATION MARCH 6, 2025
Slide 115: Non-GAAP Explanation (1/2)
NON-GAAP EXPLANATION (1/2) Crane Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This presentation includes certain non-GAAP financial measures, including adjusted operating profit, adjusted operating margin, adjusted EPS, Free Cash Fl
Slide 116: Non-GAAP Explanation (2/2)
NON-GAAP EXPLANATION (2/2) We believe that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations: "Adjusted Operating Profit" and "Adjusted Operating Margin" add back to Operating Profit items which are outside of
Slide 117: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Historical Segment Margin Information (in $ Millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Process Flow Technologies Net Sales 924 1,031 1,093 1,235 1,259 1,110 1,093 1,230 1,289 1,289 1,264 1,091 999 1,0
Slide 118: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures (unaudited, in millions, except per share data) Twelve Months Ended December 31, 2024 2023 % Change $ Per Share $ Per Share (on $) Net sales (GAAP) $ 2,131.2 $ 1,862.1 14.5 % Adjusted Operating Profit and Adjusted Operating Profit Margin Operat
Slide 119: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures by Segment (unaudited, in millions) Twelve Months Twelve Months Ended Ended December 31, December 31, 2024 2023 Adjusted EBITDA and Adjusted EBITDA Margin Net income from continuing operations attributable to common shareholders (GAAP) $ 268.2
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