Crane Company · NYSE:CR
Crane — Q2 2024 Earnings Presentation
18 slides from Crane's earnings presentation, Jul 30, 2024
Slide 1: CRANE Q2 2024 Earnings Release Call
CRANE Q2 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 Second Quarter 2024 Results
Highlights from Second Quarter 2024 Results $ Millions GAAP Adjusted* except per-share amounts Q2 2024 Q2 2023 Change Q2 2024 Q2 2023 Change Sales $581 $510 +14% $581 $510 +14% Operating Profit $97 $63 +53% $103 $84 +22% Operating Margin 16.6% 12.4% +420 bps 17.7% 16.5% +120 bps Earnings per Share $
Slide 4: Aerospace & Electronics
Aerospace & Electronics $ Millions GAAP Adjusted* Q2 2024 Q2 2023 Change Q2 2024 Q2 2023 Change Sales $231 $189 +22% $231 $189 +22% Operating Profit $53 $38 +38% $55 $38 +43% Operating Margin 22.8% 20.2% +260 bps 23.8% 20.2% +360 bps Backlog $815 $675 +21% $815 $675 +21% ADDITIONAL DETAILS Q2 2024 Q
Slide 5: Process Flow Technologies
Process Flow Technologies $ Millions GAAP Adjusted* Q2 2024 Q2 2023 Change Q2 2024 Q2 2023 Change Sales $298 $263 +13% $298 $263 +13% Operating Profit $60 $51 +18% $61 $53 +16% Operating Margin 20.0% 19.2% +80 bps 20.5% 20.0% +50 bps Backlog $400 $353 +13% $400 $353 13% ADDITIONAL DETAILS Q2 2024 ▪
Slide 6: Engineered Materials
Engineered Materials $ Millions GAAP Adjusted* Q2 2024 Q2 2023 Change Q2 2024 Q2 2023 Change Sales $53 $57 (8)% $53 $57 (8)% Operating Profit $7 $10 (26)% $7 $10 (23)% Operating 13.9% 17.1% (320 bps) 13.9% 16.6% (270 bps) Margin ADDITIONAL DETAILS Q2 2024 Q2 2024 Core Growth (8)% Recreational Vehicl
Slide 7: Crane Company Capital Structure
Crane Company Capital Structure AS OF June 30, 2024 ADDITIONAL DETAILS ▪ 2024 Guidance adjusted EBITDA of ~$450 million ~0.3x Net ~$899 Million Liquidity implies net Debt-to-EBITDA of ~0.3x as of June 30, Debt-to-EBITDA 2024 ▪ Interest rate on Term Loan and Revolver variable rate (~7% in current mar
Slide 8: ~$4+ Billion Capital Deployment Potential
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 Operational Guidance
Crane Company Revised Operational Guidance $ Millions GAAP Adjusted Prior Revised 2024G vs. 2023A Adjusted ADDITIONAL DETAILS (3/31/24) (6/30/24) Sales 2023A 2023A* 2024G 2024G Change FX M&A Core ▪ Aerospace & Electronics Aerospace & Electronics $789 $789 $920 $920 16.5% ‒ 4.5% 12% ‒ Recovery contin
Slide 10: Crane Company Revised EPS Guidance
Crane Company Revised EPS Guidance $ Millions, except per-share amounts GAAP Adjusted Prior Revised ADDITIONAL DETAILS (3/31/24) (6/30/24) Guidance 2023A 2023A* 2024G 2024G ▪ Adjusted EPS guidance of $4.95-$5.15 Segment Operating Profit $401 $406 $470 $480 Corporate ($117) ($76) ($75) ($80) ‒ 18% EP
Slide 11: 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 0.3x net ▪ Disciplined approach to through
Slide 12: Non-GAAP Information and Appendix
Non-GAAP Information and Appendix July 29, 2024
Slide 13: 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 14: 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 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures (unaudited, in millions, except per share data) Three Months Ended June 30, 2024 2023 % Change $ Per Share $ Per Share (on $) Net sales (GAAP) $ 581.2 $ 509.6 14.1 % Adjusted Operating Profit and Adjusted Operating Profit Margin Operating profi
Slide 16: 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 June 30, 2024 Electronics Technologies Materials Corporate Company Net sales $ 230.9 $ 297.7 $ 52.6 $ — $ 581.2 Operating profit (GAAP) $ 52.7 $ 59
Slide 17: Adjusted Free Cash Flow
Non-GAAP Financial Measures Adjusted Free Cash Flow (unaudited, in millions) Three Months Ended June 30, Six Months Ended June 30, Cash Flow Items 2024 2023 2024 2023 Cash provided by (used for) operating activities from continuing operations $ 62.0 $ 52.4 $ (17.9) $ (53.0) Less: Capital expenditure
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