Crane Company (CR) | The Buildout — AI Infrastructure

——Mkt cap — · 52-wk —–— · YTD — · delayed

Updated Aug 12, 2026Q2 FY2026 reviewed

Crane Company makes engineered flow-control, sensing, braking, and power components for aerospace, defense, and industrial power systems tied to the AI buildout.

Record AAT backlog

Nearly $1.3B, core +11% y/y and +7% sequentially.

AAT core +13.3%

Q2 AAT sales $339M, up 30% total year over year.

Record 21.3% margin

Total adjusted operating margin up 180 bps y/y.

PFT core -1.4%

Process Flow Technologies organic sales still shrinking in Q2.

The Buildout Takeaway

Crane's aerospace and defense engine is running hot while its process-flow segment is still waiting to turn. The second half turns on whether PFT delivers the positive organic growth management is promising, and whether defense orders convert into backlog.

Analyst coverage

28 analysts·21 Buy7 Hold0 Sell

Coverage is thin — only 3 price estimates, so no target is shown

Management guidance

Adjusted EPS $6.85–$7.05 · Acquisition accretion ~$0.20 per share · AAT core sales just above the high end of 7%–9% · PFT core sales flat to up low single digits

Important: The Buildout is a data analytics platform. Content is generated by algorithms and AI agents using public filings, earnings transcripts, and market data. This is not personalized investment advice.

Our View

The Verdict

Crane Company makes highly engineered components for mission-critical aerospace, defense, space, and process industry applications. In the AI infrastructure buildout, Crane is an indirect supplier: its process valves and flow equipment serve natural-gas power plants and cryogenic systems that support data-center electrification and semiconductor production, while its defense electronics support radar and missile platforms. The company does not sell AI products directly.

Market Cap	—
Revenue (TTM)	$2.6B
Revenue Growth	+13.8%
EBITDA Margin (TTM)	21.0%

Net Debt	$765M
Earnings Beats	7 of 7
P/E (TTM)	—
EV/EBITDA (TTM)	—

What We Like

AAT record backlog of nearly $1.3 billion, core +11% y/y and +7% sequentially.
Q2 2026 total adjusted operating margin reached a record 21.3%, up 180 bps y/y.
Missile-defense content is about $35 million today; management forecasts 4–5x growth by 2030.
Acquisition accretion raised to ~$0.20 per share, with the five-year EBITDA bridge roughly 1.5 years ahead of schedule.
Pro forma net leverage is about 1.2x versus a 2x–3x target, leaving capacity for M&A.

What We’re Watching

PFT core sales were -0.6% in Q1 and -1.4% in Q2; management expects positive y/y growth in H2 2026 — watch Q3 and Q4.
Commercial aftermarket is framed at $55–60 million per quarter through the balance of 2026 and into 2027.
Chemical 'green shoots' in the Americas need to convert from quote activity into project orders, likely by 2027.
M&A is the stated first priority, but management says nothing is imminent; any deal would likely be in the ~$500 million sweet spot.

Bottom Line

The thesis is strengthening. Q2 was a beat-and-raise with AAT core growth accelerating to 13.3%, record backlog, record adjusted margin, and acquisitions running ahead of plan. The open question is whether PFT actually turns positive in H2 2026 as management is very confident it will, and whether missile-defense RFQs convert into booked orders before 2027–2028.

Next upQ3 2026 results, expected to be similar to Q2, will test management's promise of positive y/y PFT core growth and continued AAT momentum. Q4 is expected to be modestly lower on normal seasonality.

Last Quarter — Q2 FY2026

Earnings Beat

Crane reported Q2 2026 revenue of $724.7 million with gross margin of 42.4%. Total sales grew 26% y/y (5% core), and adjusted operating margin reached a record 21.3%, up 180 bps y/y. AAT sales of $339 million grew core 13.3%; PFT sales of $386 million declined 1.4% core, but PFT core backlog rose sequentially for a second quarter.

Metric	Q2 FY2026	Q1 FY2026	Q2 FY2025	YoY
Revenue	$725M	$696M	$577M	+25.6%
Gross margin	42.4%	40.4%	42.0%	+40bps
EBITDA	$172M	$128M	$116M	+48.0%
EPS	$1.63	$1.14	$1.48	+10.6%
AAT backlog	Nearly $1.3B	~$1.2B	n/a	Core +11% y/y

I expect PFT to turn positive growth year-over-year in the second half. Very confident about that.— Alejandro A. Alcala, President and CEO, July 29, 2026

Management tone: Management's tone shifted from cautious-plus-executing in Q1 to more bullish on PFT and defense in Q2. They moved PFT from 'in trough' to expecting positive y/y growth in H2, and commercial aftermarket from 'could decline' to 'demand is solid.' They repeated emphasis on the Crane Business System and raised guidance twice.

Management Guidance

Full-year adjusted EPS was raised to $6.85–$7.05, up from $6.65–$6.85, and acquisition accretion was raised to ~$0.20 per share. AAT full-year core sales growth is now expected just above the high end of 7%–9%. PFT core sales growth is held at flat to up low single digits, with positive y/y growth expected in H2 2026. Q3 is expected to be similar to Q2 and Q4 modestly lower on normal seasonality. Corporate expense is guided to $80 million–$85 million, net non-operating expense approximately $58 million, and tax rate approximately 23%.

Business Trajectory

Trajectory

Revenue is accelerating, driven by the January acquisitions and AAT. Total sales rose 24.9% y/y in Q1 and 26% y/y in Q2; core growth improved from 4% to 5%. AAT core accelerated from +9.4% to +13.3%, while PFT core remained slightly negative at -1.4%. Adjusted operating margin reached a record 21.3% in Q2, up 180 bps y/y, and gross margin was 42.4%.

Revenue & Margin Trajectory

Gross margin as reported.

Share Price — 12 Months

52-week range $164–$224.

Share Price — 12 Months

52-week range $164–$224.

The Numbers

The Model

The model projects FY+1 revenue of $2,850 million and EBITDA of $630 million (22.1% margin), and FY+2 revenue of $3,045 million with EBITDA of $706 million (23.2% margin). Near-term revenue is anchored by AAT growth and the acquired businesses; FY+2 assumes continued PFT recovery and defense program conversion.

Revenue & EBITDA Projections

Solid bars are reported actuals; outlined bars are model projections — not company guidance.

Metric	FY2025	Next FY (E)	Following FY (E)
Revenue	$2.3B	$2.9B	$3.0B
YoY Growth	—	+23.6%	+6.8%
EBITDA	$474M	$630M	$706M
EBITDA Margin	20.6%	22.1%	23.2%

Projections are the median of 5 independent model runs. The model’s revenue sits 0.2% above analyst consensus.

What Could Go Right — and Wrong

What good looks like

PFT turns positive y/y core growth in Q3 and Q4 2026, with volume and price supporting the promised H2 inflection.
Missile-defense content grows from about $35 million toward management's 4–5x by 2030 target as RFQs convert into orders.
AAT backlog conversion sustains double-digit core growth beyond 2026.
Acquired businesses deliver a few percent accretion, 350 bps or higher margin improvement, and new product launches starting 2027.
A well-priced M&A transaction near the ~$500 million sweet spot deploys the ~1.2x net leverage capacity.

What could go wrong

PFT fails to inflect in H2 2026; core sales stay negative and full-year flat-to-low-single-digit guidance is missed.
Commercial aftermarket weakens below the $55–60 million per quarter framing, re-opening the Q1 decline scenario.
Acquisition integration stumbles; the acquired businesses' GAAP operating loss persists and raised accretion expectations undershoot.
Supply-chain disruption or an interruption at a single-source supplier could disrupt operations.
Defense program awards slip; RFQ and forecast activity does not convert into booked backlog.

What’s Next

Looking Ahead

Over the next 12 months, the key signposts are PFT's H2 2026 inflection, conversion of AAT design wins like GE RISE and Otto Aerospace into production, defense order momentum on PAC-3, LTAMDS, and missile/RFQ conversion, and any M&A deployment from a strong funnel and low leverage. Commercial aftermarket is expected to run at $55–60 million per quarter.

Catalysts

Q3 2026PFT core growth inflection — Tests management's promise of positive y/y PFT core sales in Q3.
Q4 2026Full-year guidance delivery — Tests adjusted EPS of $6.85–$7.05 and ~$0.20 accretion.
Balance of 2026Defense order conversion — PAC-3, LTAMDS, F-16 orders and missile RFQs convert to backlog.
2027Acquired-business product launches — New products from Druck, Panametrics, Reuter-Stokes, and optek expected.
End of decadeMissile content 4–5x — Management targets 4–5x growth from ~$35 million today.

Numbers

Financials

Annual Summary

Metric	FY2024	FY2025	TTM	YoY
Revenue	$2.2B	$2.3B	$2.6B	+5.7%
Gross Margin	40.3%	42.2%	41.8%	+190bps
EBITDA	$414M	$474M	$4.0B	+14.6%
EBITDA Margin	19.0%	20.6%	21.0%	+159bps
Net Income	$295M	$367M	$336M	+24.4%
Free Cash Flow	$236M	$345M	$2.4B	—
Net Cash	—	—	—	—

Key Ratios (Trailing)

Valuation

P/E TTM—
EV/EBITDA TTM—
EV/Revenue TTM—
Price/FCF TTM—

Profitability

Gross Margin (TTM)41.8%
EBITDA Margin (TTM)21.0%
Net Margin (TTM)13.0%
ROIC12.5%
FCF Conversion51.5%
SBC / Revenue0.5%

Reference

The Company

Crane Company reports in two segments. Aerospace & Advanced Technologies (AAT) supplies critical components for commercial and military aerospace, defense, and space, including pressure sensors for aircraft engine control, aircraft braking systems, power conversion for defense and space, and lubrication systems. Process Flow Technologies (PFT) provides engineered fluid-handling equipment—process valves, pumps and systems, and commercial valves—for high-reliability industrial applications.

Crane operates a global manufacturing footprint: AAT plants are in the United States, United Kingdom, Taiwan, and France, while PFT has manufacturing, sales, and service centers across North America, South America, Europe, the Middle East, Asia, and Australia. Four acquired businesses—Druck, Panametrics, Reuter-Stokes, and optek-Danulat—were completed January 1, 2026 and are being integrated through the Crane Business System.

Business Segments

Aerospace & Advanced Technologies

Q2 2026 sales $339M

Critical components for commercial/military aerospace, defense, and space: sensors, braking, power conversion, lubrication.

Growth driver: AAT core +13.3% in Q2; backlog nearly $1.3B

Process Flow Technologies

Q2 2026 sales $386M

Engineered valves, pumps, and fluid-handling for power, nuclear, cryogenics, pharma, water, and LNG.

Growth driver: Expected to turn positive y/y in H2 2026

Competitive Landscape

Crane competes in mission-critical, high-reliability niches with large installed bases and recurring aftermarket/upgrade revenue. The 10-K describes it as a leading manufacturer. No specific competitors are named in the supplied source material.

Supply Chain

Crane sits between component suppliers and aerospace/industrial end users. Its customers range from aerospace and defense primes to power-generation and space-launch infrastructure operators.