Crane Company · NYSE:CR
Crane — Q3 2024 Earnings Presentation
17 slides from Crane's earnings presentation, Oct 29, 2024
Slide 1: CRANE Q3 2024 Earnings Release Call
CRANE Q3 2024 Earnings Release Call
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: Highlights from Third Quarter 2024 Results
Highlights from Third Quarter 2024 Results $ Millions GAAP Adjusted* except per-share amounts Q3 2024 Q3 2023 Change Q3 2024 Q3 2023 Change Sales $597 $530 +13% $597 $530 +13% Operating Profit $105 $76 +38% $109 $81 +35% Operating Margin 17.6% 14.4% +320 bps 18.3% 15.2% +310 bps Earnings per Share $
Slide 4: Aerospace & Electronics
Aerospace & Electronics $ Millions GAAP Adjusted* Q3 2024 Q3 2023 Change Q3 2024 Q3 2023 Change Sales $239 $207 +15% $239 $207 +15% Operating Profit $55 $40 +37% $56 $40 +40% Operating Margin 23.0% 19.4% +360 bps 23.5% 19.4% +410 bps Backlog $833 $678 +23% $833 $678 +23% ADDITIONAL DETAILS Q3 2024 Q
Slide 5: Process Flow Technologies
Process Flow Technologies $ Millions GAAP Adjusted* Q3 2024 Q3 2023 Change Q3 2024 Q3 2023 Change Sales $309 $267 +16% $309 $267 +16% Operating Profit $66 $51 +28% $67 $51 +31% Operating Margin 21.2% 19.2% +200 bps 21.8% 19.2% +260 bps Backlog $392 $353 +11% $392 $353 +11% ADDITIONAL DETAILS Q3 2024
Slide 6: Engineered Materials
Engineered Materials $ Millions GAAP Adjusted* Q3 2024 Q3 2023 Change Q3 2024 Q3 2023 Change Sales $49 $56 (13)% $49 $56 (13)% Operating Profit $6 $8 (20)% $6 $8 (18)% Operating 12.7% 13.7% (100 bps) 12.9% 13.7% (80 bps) Margin ADDITIONAL DETAILS Q3 2024 Q3 2024 Core Growth (13)% Recreational Vehicl
Slide 7: Crane Company Capital Structure
Crane Company Capital Structure AS OF September 30, 2024 ADDITIONAL DETAILS ▪ Interest rate on Term Loan and Revolver variable rate ~0.2x Net ~$973 Million Liquidity (~6.5% in current market conditions) Debt-to-EBITDA ▪ Term Loan and Revolver provide flexibility for early repayment from strong under
Slide 8: Capital Deployment Potential: ~$4+ Billion Available through 2028
Capital Deployment Potential ~$4+ Billion Available from 2024-2028 POST-SEPARATION ACQUISITIONS TO DATE Incremental Debt Capacity ~$4+ Billion M&A and/or Repurchases Available for M&A and/or repurchases while retaining strong, target credit metrics Operating Cash Flow Substantial additional Dividend
Slide 9: Crane Company Revised EPS Guidance
Crane Company Revised EPS Guidance Revised Prior (9/30/24) (6/30/24) ADDITIONAL DETAILS 2024 Outlook 2024 Outlook ▪ Core sales strength expected towards the Segment Revenue higher end of the range due to: Total Revenue ~11% ~11% ▪ Aerospace & Electronics trending stronger than our prior view Core Re
Slide 10: Momentum Continues
Momentum Continues ▪ Solid organic growth ▪ Continued margin profile, led by technology 35%-40% expansion, led by superior 4-6% Core innovation and new Growth Operating products, strong pricing, product development Leverage and operational excellence Growth 0.2x net ▪ Disciplined approach to through
Slide 11: Non-GAAP Information and Appendix
Non-GAAP Information and Appendix September 30, 2024
Slide 12: 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 13: 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 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures (unaudited, in millions, except per share data) Three Months Ended September 30, 2024 2023 % Change $ Per Share $ Per Share (on $) Net sales (GAAP) $ 597.2 $ 530.1 12.7 % Adjusted Operating Profit and Adjusted Operating Profit Margin Operating
Slide 15: Non-GAAP Financial Measures by Segment
Non-GAAP Financial Measures Non-GAAP Financial Measures by Segment (unaudited, in millions) Aerospace & Process Flow Engineered Total Three Months Ended September 30, 2024 Electronics Technologies Materials Corporate Company Net sales $ 239.1 $ 309.2 $ 48.9 $ — $ 597.2 Operating profit (GAAP) $ 54.9
Slide 16: Adjusted Free Cash Flow
Non-GAAP Financial Measures Adjusted Free Cash Flow (unaudited, in millions) Three Months Ended Nine Months Ended September 30, September 30, Cash Flow Items 2024 2023 2024 2023 Cash provided by operating activities from continuing operations $ 81.7 $ 86.9 $ 63.8 $ 33.9 Less: Capital expenditures (9
Slide 17: Slide 17