Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 28, 2026 · Beat 7 of last 7 quarters
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
Crane's strong results, particularly in AAT, reflect sustained demand for aerospace and defense components, which are critical to the broader AI infrastructure buildout through defense electronics and radar systems. The company's PFT segment, with exposure to power generation and cryogenics for space launch, also supports the energy and data center infrastructure needed for AI. The record backlog and raised guidance signal continued investment in these areas, which could benefit suppliers and competitors in the aerospace and defense supply chain.
Crane delivered record second-quarter results with total sales up 26% to $724.7M, driven by 5% core growth and 20% contribution from acquisitions. AAT sales grew 30% (13.3% core) with record backlog of nearly $1.3B, while PFT sales grew 21% (core down 1.4%) but saw sequential backlog improvement. Adjusted operating margin expanded 180 bps to 21.3%, with AAT margin at 25.8% and PFT at 22.2%, both above expectations despite acquisition dilution. The company repaid $100M of debt in the quarter and an additional $90M after quarter-end, bringing pro forma net leverage to ~1.2x.
Management raised full-year adjusted EPS guidance by $0.20 to $6.85–$7.05, reflecting core growth near the high end of the long-term framework, strong execution, and higher acquisition contributions. AAT core sales growth is now expected to land just above the 7%–9% long-term range, while PFT is expected to turn positive year-over-year core growth in the second half, with full-year growth still flat to low-single-digits. The company expects Q3 to be similar to Q2 with Q4 modestly lower due to seasonality. Management expressed high confidence in the multi-year outlook, citing record backlog, strong defense and commercial aerospace demand, and accelerating integration benefits from the four acquisitions. They also noted an active M&A pipeline and a strong balance sheet with pro forma net leverage of ~1.2x, prioritizing M&A for capital deployment.
“We delivered record second quarter results that reflected strong execution across the company and continued momentum across our portfolio.”
on Quarterly performance
“It is clear that our vision for these businesses becoming some of our best and most profitable businesses in Crane is materializing well ahead of schedule.”
on Acquisition integration
“Life moves pretty fast. You do not stop and look around once in a while, you could miss it.”
on Investment opportunity
Can you update us more broadly on how you are thinking about growth by end market within AAT for the year?
Richard Maue noted that growth is broad-based across commercial OE, commercial aftermarket, military OE, and military aftermarket, with the raised guidance reflecting strength across all areas rather than any single category.
You talked about flat to low-single-digit growth in PFT for the full-year, which implies probably low-single-digit growth in the second half. Should we expect that kind of low-single-digit leverage coming from that level?
Richard Maue said that with volumes returning in the second half, they expect to leverage north of the stated 30%–35% leverage rate for the segment, implying strong operating leverage and margin expansion.
Just coming back to PFT, just thinking about chemical finally beginning to turn. Kind of a tough slog here? Just some color on the margin ramifications of that.
Alex Alcala noted that chemical demand is starting to show improvement, particularly in the Americas, with orders beginning to reflect that. Margins in chemical are above average for PFT, so recovery would be accretive and leverage could be stronger than the 30%–35% target.