CR

The third-quarter 2026 earnings season has just begun for the Zacks Industrial Products sector. As of Oct. 21, 4% of S&P 500 companies in the Industrial Products sector have reported results, with all surpassing earnings expectations. In the quarter, the sector is expected to have benefited from persistent strength in the manufacturing sector, growth in new orders and strong e-commerce activities. However, supply-chain issues and cost inflation are likely to have weighed on its performance. The latest Earnings Trend report indicates a year-over-year improvement in both earnings and revenues for the S&P 500 companies within the Industrial Products sector. Per the report, the sector's third-quarter earnings are anticipated to witness year-over-year growth of 14.2% compared with a 22.5% increase recorded in the previous quarter. The sector's revenues are projected to increase 8.6%, while margins are expected to rise 0.7% in the third quarter. The April-July quarter had witnessed 13.9% revenue growth and a 1% improvement in margin. Let us discuss the factors that are likely to have played a key role in shaping the performance of industrial stocks in the third quarter. The industrial sector witnessed favorable operating conditions in the July-September quarter, driven by increased manufacturing activity and stronger demand for industrial products and services, which supported higher business activity levels. Per the latest Institute for Supply Management's (ISM) report released on Oct. 1, the Purchasing Managers Index (PMI) registered 55.6%, 54.6% and 54.5% in July, August and September, respectively. ISM's production index in September was 56.7%, reflecting growth for the 11th consecutive month. Also, the new orders index was 55.3%, indicating the ninth successive month of increase. In the third quarter, the United States' industrial production recorded an annual increase of 2.8%, with manufacturing output rising 0.7% at an annual rate. Growth in demand across several markets, including manufacturing, electrical equipment, machinery, computer & electronics, fabricated metal, appliances & components and non-metallic mineral products, is likely to have supported the performance of industrial companies. Firms serving commercial and defense aerospace customers are also expected to have benefited from healthy aircraft production, resilient aftermarket activity and continued government spending. Also, the companies are likely to have benefited from focus on product innovation, multiple promotional efforts, effective pricing and cost-management actions. Despite the positives, the industrial products sector has been bearing the brunt of inflationary pressures, an increase in labor market slack and supply-chain disruptions. Tariffs and trade-related levies on imported raw materials and intermediate goods have added incremental cost pressures, particularly for companies with global supply chains. Given the large number of players operating in the industrial products space, picking the right stock is not an easy task. Our proven model, however, makes it fairly simple. One can shortlist with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the odds of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here. You can uncover the best stocks before they report earnings with our Earnings ESP Filter. Earnings ESP — the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate — is our proprietary methodology for determining the stocks with the maximum chances of delivering positive earnings surprises in their announcement. Our research shows that for stocks with this combination of ingredients, the chances of a beat are as high as 70%. Caterpillar Inc. CAT has an Earnings ESP of +2.98% and a Zacks Rank of 2 at present. The company is scheduled to release third-quarter 2026 earnings on Oct. 29, before market open. The Zacks Consensus Estimate for CAT's revenues is pegged at $20.6 billion, indicating 16.7% growth from the year-ago quarter's figure. The consensus estimate for its earnings is pegged at $7.12 per share, indicating a 43.8% year-over-year increase. The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.1%. Caterpillar is expected to have benefited from strong demand across construction, mining and power markets, with record backlog. Strong momentum in the Power & Energy segment, driven by rising electricity requirements and oil & gas activity, is likely to have been a tailwind for the company. Strength in the Construction segment, supported by higher infrastructure spending and large infrastructure and data-center projects , also bodes well. Caterpillar Inc. price-eps-surprise | Caterpillar Inc. Quote Crane Company CR has an Earnings ESP of +0.86% and a Zacks Rank of 3 at present. The company is scheduled to release third-quarter 2026 earnings on Oct. 27, after market close. The Zacks Consensus Estimate for CR's revenues is pegged at $738.8 million, indicating 25.4% growth from the year-ago quarter. The consensus estimate for its earnings is pegged at $1.81 per share, indicating a 10.4% year-over-year increase. The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.4%. Crane's Aerospace & Advanced Technologies segment is expected to have performed strongly, driven by strength across its commercial and military OEM businesses with higher aircraft build rates and favorable geopolitical backdrop. Stable demand in the pharmaceutical, cryogenic and water and wastewater markets is likely to have augmented its Process Flow Technologies segment. CR's acquisitions of Druck, optek-Danulat, Panametrics and Reuter-Stokes are also expected to have boosted its top line in the quarter. Crane Company price-eps-surprise | Crane Company Quote Flowserve Corporation FLS has an Earnings ESP of +0.34% and a Zacks Rank of 3 at present. The company is scheduled to release third-quarter 2026 earnings on Oct. 28, after market close. The Zacks Consensus Estimate for FLS' revenues is pegged at $1.24 billion, indicating growth of 5.3% from the year-ago quarter. The consensus estimate for its earnings is pegged at 98 cents per share, indicating an 8.9% year-over-year increase. Flowserve's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.2%. Flowserve's Pump Division segment is expected to have performed well in the third quarter, driven by strength in the aftermarket business in North and Latin America. An increase in bookings across general industries and power end markets is likely to boost the segment's results. Strength in the aftermarket business, driven by healthy demand for products and services in the Middle East and Africa, is expected to have augmented the Flow Control Division segment's performance. Flowserve Corporation price-eps-surprise | Flowserve Corporation Quote Constellium SE CSTM has an Earnings ESP of +14.50% and a Zacks Rank of 2 at present. The company is scheduled to release third-quarter 2026 earnings on Oct. 28, before market open. The Zacks Consensus Estimate for CSTM's revenues is pegged at $2.53 billion, indicating 16.9% growth from the year-ago quarter's figure. The consensus estimate for its earnings is pegged at 74 cents per share, indicating a 19.4% year-over-year increase. The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 83.3%. Constellium is expected to have benefited from healthy packaging demand and higher shipments of aerospace & transportation and industry & defense rolled products. Constellium's focus on cost control, commercial discipline and operational execution is also likely to have supported its margins in the quarter. Constellium SE price-eps-surprise | Constellium SE Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Flowserve Corporation (FLS) : Free Stock Analysis Report Crane Company (CR) : Free Stock Analysis Report Constellium SE (CSTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Illinois Tool Works (ITW) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 27, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This equipment manufacturer for the transportation, power, food and construction industries is expected to post quarterly earnings of $2.99 per share in its upcoming report, which represents a year-over-year change of +6.4%. Revenues are expected to be $4.26 billion, up 5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.14% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Illinois Tool Works, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.52%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Illinois Tool Works will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Illinois Tool Works would post earnings of $2.8 per share when it actually produced earnings of $2.84, delivering a surprise of +1.43%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Illinois Tool Works doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Manufacturing - General Industrial industry, Crane (CR), is soon expected to post earnings of $1.81 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +10.4%. This quarter's revenue is expected to be $738.09 million, up 25.3% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Crane has been revised 0.1% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.86%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Crane will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Crane Company (CR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Taylor Devices, Inc. (TAYD) came out with quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.93 per share. This compares to earnings of $0.7 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -84.95%. A quarter ago, it was expected that this company would post earnings of $0.78 per share when it actually produced earnings of $0.76, delivering a surprise of -2.56%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Taylor Devices, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $7.3 million for the quarter ended August 2026, missing the Zacks Consensus Estimate by 44.7%. This compares to year-ago revenues of $9.92 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Taylor Devices shares have added about 4.5% since the beginning of the year versus the S&P 500's gain of 12%. While Taylor Devices has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Taylor Devices was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.91 on $13 million in revenues for the coming quarter and $3.85 on $56.7 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Crane (CR), is yet to report results for the quarter ended September 2026. This maker of aerospace, electronics and engineered industrial products is expected to post quarterly earnings of $1.81 per share in its upcoming report, which represents a year-over-year change of +10.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Crane's revenues are expected to be $737.55 million, up 25.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Taylor Devices, Inc. (TAYD): Free Stock Analysis Report Crane Company (CR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Crane Company (NYSE:CR) announced a definitive agreement on September 14 to acquire Trillium Flow Technologies’ U.S. pump business for approximately $240 million. The operations primarily serve municipal water and wastewater customers and are expected to generate approximately $115 million in full-year revenue. Closing is expected in the fourth quarter, subject to regulatory approvals and customary conditions. The acquisition would add Floway, Wemco, Roto-Jet and WSP to Process Flow Technologies. Their installed equipment base supports service, repair, retrofit and replacement demand, giving the transaction a recurring-revenue rationale. Crane Company (NYSE:CR) disclosed a price of approximately 14.6 times estimated 2026 adjusted EBITDA. Adjusted EBITDA is a company-defined non-GAAP measure based on earnings before interest, taxes, depreciation, and amortization, with further adjustments. The announcement did not specify the target’s adjustments or provide a GAAP reconciliation. Water and wastewater systems require reliable pumping equipment throughout their operating lives. An established installed base creates opportunities to sell replacement parts, restore equipment, and upgrade performance long after the original sale. For Crane Company (NYSE:CR), those customer relationships could make revenue less dependent on winning entirely new projects. Service capability and product familiarity may also help retain customers when equipment eventually needs replacement. Management sees opportunities to combine the acquired brands with its operating system and commercial capabilities. Better production planning, procurement and customer coverage could improve profitability if integration preserves service quality and technical expertise. Crane Company (NYSE:CR) has cash generation to support investment. During the second quarter, continuing operations generated $122.3 million of operating cash flow against $14.6 million of capital expenditures. That provides financial support for acquisition spending, although the purchase remains a meaningful commitment. The price and disclosed multiple imply roughly $16.4 million of estimated adjusted EBITDA. Generating an attractive return requires converting those earnings into cash after capital expenditures, working-capital requirements, taxes, and integration spending. The announcement did not quantify aftermarket revenue’s share of the business, its margins, expected synergies, or integration costs. Recurring repair demand can support earnings durability, but its contribution to the purchase valuation remains unquantified. Existing segment trends also warrant attention. Process Flow Technologies’ second-quarter sales increased 20.9% to $385.6 million, while company-defined non-GAAP core sales declined 1.4%. Core sales exclude currency effects and acquisitions and divestitures within their first year. Acquisitions are expanding the segment while underlying sales remain softer. At June 30, Crane Company (NYSE:CR) held $350.4 million of cash and $1.098 billion of debt. It subsequently repaid another $90 million of debt. The acquisition announcement did not specify its funding mix, leaving the eventual liquidity and financing impact to be established. Municipal customers can also defer upgrades or stretch procurement schedules. Preserving installed-base relationships requires timely parts delivery and service, while manufacturing and engineering integration could absorb resources before savings emerge. The filings available so far reflect positions held before Crane Company (NYSE:CR) announced the agreement to acquire Trillium Flow Technologies’ U.S. pump business. Insider Monkey’s database showed 47 hedge funds holding Crane Company (NYSE:CR) at the end of 2Q2026, down from 59 funds three months earlier. Crane Company (NYSE:CR) is acquiring established brands and an installed base that can support repeat business. At 14.6 times estimated adjusted EBITDA, the case depends on sustained aftermarket earnings and disciplined integration. Customer retention, acquired-business margins, and cash generation after investment will determine whether the strategic fit justifies the capital committed. While we acknowledge the potential of CR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: CBRE Group (CBRE) Unit Buys $1.6 Billion Net-Lease Platform. Can Scale Lift Fee Earnings? and Mastercard (MA) Partners With Flowcart. Can In-Chat Payments Deliver Profitable Growth? This article is originally published at Insider Monkey.

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the general industrial machinery industry, including Crane (NYSE:CR) and its peers. Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings. The 12 general industrial machinery stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 3.3% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.9% since the latest earnings results. Based in Connecticut, Crane (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies. Crane reported revenues of $724.7 million, up 25.6% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a very strong quarter for the company with full-year EPS guidance beating analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. Alex Alcala, Crane's President and Chief Executive Officer, stated: "We delivered record quarterly results which exceeded our expectations, reflecting strong execution across the company. Aerospace & Advanced Technologies generated better-than-expected growth, demand at Process Flow Technologies remained stable, and all four recent acquisitions are performing ahead of plan. Combined with 5% core sales growth and strong operating leverage across all businesses, these results underscore the quality of our portfolio and the effectiveness of our operating model." Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 10.8% since reporting and currently trades at $201.95. We think Crane is a good business, but is it a buy today? Read our full report here, it’s free. With 19 different brands across the globe, Columbus McKinnon (NASDAQ:CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries. Columbus McKinnon reported revenues of $531.5 million, up 125% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates. Columbus McKinnon delivered the fastest revenue growth in the group. The market seems happy with the results as the stock is up 21.4% since reporting. It currently trades at $17.75. Is now the time to buy Columbus McKinnon? Access our full analysis of the earnings results here, it’s free. Founded in 1895, Albany (NYSE:AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries. Albany reported revenues of $329.5 million, up 5.8% year on year, falling short of analysts’ expectations by 3.1%. It was a slower quarter, leaving some shareholders looking for more. Albany delivered the weakest performance against analyst estimates of the whole group. As expected, the stock is down 4.3% since the results and currently trades at $60.28. Read our full analysis of Albany’s results here. Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions. L.B. Foster reported revenues of $138.6 million, down 3.5% year on year. This number surpassed analysts’ expectations by 3%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations. L.B. Foster achieved the highest full-year guidance raise among its peers. The stock is down 8.9% since reporting and currently trades at $37.60. Read our full, actionable report on L.B. Foster here, it’s free. One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare. GE Aerospace reported revenues of $12.63 billion, up 24.5% year on year. This print beat analysts’ expectations by 6%. It was an exceptional quarter as it also put up full-year EPS guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates. GE Aerospace pulled off the biggest analyst estimate beat in the group. The stock is down 10.1% since reporting and currently trades at $323.81. Read our full, actionable report on GE Aerospace here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Industrial conglomerate Crane (NYSE:CR) reported Q2 CY2026 results topping the market’s revenue expectations , with sales up 25.6% year on year to $724.7 million. Its non-GAAP profit of $1.79 per share was 7.4% above analysts’ consensus estimates. Is now the time to buy CR? Find out in our full research report (it’s free). Revenue: $724.7 million vs analyst estimates of $708.5 million (25.6% year-on-year growth, 2.3% beat) Adjusted EPS: $1.79 vs analyst estimates of $1.67 (7.4% beat) Adjusted EBITDA: $165.6 million vs analyst estimates of $159.1 million (22.9% margin, 4.1% beat) Management raised its full-year Adjusted EPS guidance to $6.95 at the midpoint, a 3% increase Operating Margin: 19.9%, up from 17.8% in the same quarter last year Organic Revenue rose 5.2% year on year (beat) Market Capitalization: $13.07 billion Crane’s second quarter saw revenue and non-GAAP profit exceed Wall Street expectations, but the market responded negatively, reflecting concerns beyond headline numbers. Management attributed the strong quarter to robust execution in both Aerospace and Advanced Technologies and Process Flow Technologies, with notable contributions from recent acquisitions. CEO Alex Alcala pointed to record backlog and strong core margin expansion, emphasizing broad-based demand, especially in commercial aerospace and defense. Alcala noted, “We delivered record second quarter results that reflected strong execution across the company and continued momentum across our portfolio.” Despite these operational highlights, market reaction suggests investor skepticism about the sustainability of this performance. Looking ahead, Crane’s updated guidance reflects management’s confidence in continued operational momentum and increased earnings contributions from recent acquisitions. Alcala stated that integration of Panametrics, Druck, Reuter-Stokes, and optek is running ahead of schedule and driving faster-than-expected synergies. The company expects Aerospace and Advanced Technologies to sustain core sales growth above its long-term range, supported by new program wins and a strong defense and commercial pipeline. However, CFO Richard Maue cautioned that normal seasonality could lead to a softer fourth quarter, and acknowledged ongoing inflationary pressures in freight and supply chain costs. Management remains focused on leveraging its platform for additional acquisitions and maintaining disciplined capital deployment. Management attributed outperformance this quarter to operational leverage, robust aerospace and defense demand, and faster-than-expected acquisition synergy realization, while noting positive signs in chemical and industrial end markets. Aerospace and defense demand: Broad-based growth in both commercial and military segments drove performance, with Crane winning new contracts such as the GE RISE program and securing content on advanced radar and vehicle electrification projects. Management highlighted increasing RFQs (requests for quotations) and strong aftermarket activity as key contributors. Acquisition integration and upside: The Panametrics, Druck, Reuter-Stokes, and optek acquisitions outperformed initial expectations, with integration activities progressing ahead of plan and contributing higher-than-anticipated earnings. Management now expects acquisitions to add $0.20 per share for the year, up from prior estimates. Process Flow Technologies momentum: Although organic growth in Process Flow Technologies was slightly negative, management saw sequential backlog growth and identified "green shoots" in chemical production, especially in the Americas. CEO Alcala expects volume and pricing improvements to drive positive growth in the second half. Margin expansion through execution: Operating leverage and disciplined cost management led to record adjusted operating margins. Management credited proactive responses to inflation in freight and materials and the ability to pass along favorable pricing. Capital allocation and M&A focus: The company repaid debt and maintains net leverage at 1.2x, positioning itself for further acquisitions. Management emphasized ongoing evaluation of M&A opportunities that fit Crane’s criteria for technology, margin, and growth accretion, with a strong pipeline but uncertain timing. Crane’s full-year outlook is underpinned by sustained aerospace and defense demand, accelerating acquisition synergies, and anticipated recovery in key process industries. Aerospace and defense visibility: Management expects continued strength in both commercial and military aerospace, supported by a record backlog and new program wins. Alcala noted increasing content opportunities in missile programs, forecasting demand that could quadruple by decade’s end. The company’s diversified aftermarket and OE (original equipment) business is expected to provide resilience regardless of mix. Process Flow Technologies rebound: Management anticipates both volume and pricing gains in the second half, with "green shoots" in chemical and industrial markets. Alcala expects PFT to return to positive organic growth and deliver operating leverage above the segment’s historical range as these markets recover. Acquisition-driven earnings growth: The recent acquisitions are expected to contribute faster-than-modeled margin and revenue improvements, with synergy realization and cross-segment product opportunities ahead of schedule. Management sees upside from new product development and regional growth initiatives tied to these acquired businesses, although inflation and market volatility remain risks. In the coming quarters, we will closely monitor (1) continued backlog growth and new contract wins in the aerospace and defense business, (2) signs of recovery in chemical and industrial end markets supporting Process Flow Technologies, and (3) progress on acquisition integration and synergy realization. Execution on M&A strategy and further margin expansion will also serve as key indicators of Crane’s ability to sustain its current growth trajectory. Crane currently trades at $211.41, down from $226.34 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. 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This article first appeared on GuruFocus. Total Sales Growth: Up 26% year-over-year, with 5% core growth. Adjusted Operating Profit: Increased 37% due to higher core sales and acquisitions. Adjusted Operating Margin: Expanded 180 basis points to 21.3%. Backlog: Total backlog increased 5% sequentially; Aerospace and Advanced Technologies backlog at nearly $1.3 billion, up 11% year-over-year. Aerospace and Advanced Technologies Sales: $339 million, up 31% with 13.3% core sales growth. Process Flow Technologies Sales: $386 million, up 21% with core sales down 1.4%. Debt Repayment: $100 million repaid in the quarter, with an additional $90 million repaid subsequently. Adjusted EPS Guidance: Raised by $0.20 to a range of $6.85 to $7.05 per share. Net Leverage: Pro forma net leverage at about 1.2 times. Corporate Expense: $19 million for the quarter, with full-year forecast of $80 million to $85 million. Tax Rate: Estimated at approximately 23% for 2026. Warning! GuruFocus has detected 7 Warning Sign with CR. Is CR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Crane Co (NYSE:CR) delivered record second-quarter results with a 5% core sales growth and strong operating leverage. The Aerospace and Advanced Technologies segment achieved 13% core sales growth, driven by strength in both commercial aerospace and defense markets. Total backlog increased 5% sequentially, providing visibility and confidence for the second half of the year. Recent acquisitions are contributing positively, with expectations to add approximately $0.20 per share to full-year earnings. Crane Co (NYSE:CR) raised its full-year adjusted EPS outlook by $0.20 at the midpoint, reflecting strong first-half performance and confidence in future growth. Process Flow Technologies experienced a 1.4% decline in core sales, although acquisitions added growth. The adjusted segment margin for Aerospace and Advanced Technologies was slightly down due to the expected dilutive impact from the Druck acquisition. Core FX-neutral backlog at Process Flow Technologies decreased 2% compared to the prior year. The company faces temporary dilution from recent acquisitions, impacting short-term margins. Organic growth in Process Flow Technologies was negative, with expectations for improvement in the second half. Q: Can you provide insights into the growth trends for Process Flow Technologies (PFT) and expectations for the second half of the year? A: Alejandro Alcala, President and CEO, stated that they are optimistic about PFT in the second half, expecting positive growth year-over-year. They observed strengthening orders and increased quote activity, particularly in chemical production in the Americas. Alcala anticipates PFT to turn positive in growth, driven by strong demand in industrial, power generation, water, wastewater, and cryogenics sectors. Q: Could you elaborate on the M&A pipeline and any potential deals similar to PSI? A: Alejandro Alcala mentioned that their M&A focus is on deals that are accretive to growth, margins, and technology. The pipeline is strong in both Aerospace and Advanced Technologies (AAT) and PFT. While timing is unpredictable, they have the capacity and alignment to execute capital deployment effectively, though nothing imminent was disclosed. Q: How is Crane positioned to benefit from missile rearmament and militarization trends? A: Alcala highlighted that Crane has about $35 million in content across over 10 missile programs, with expectations to expand four to five times by the end of the decade. They are well-positioned with no capacity constraints and are receiving incremental quotes for potential content wins. Q: What is the outlook for the commercial aftermarket cycle in Aerospace and Advanced Technologies? A: Richard Maue, CFO, indicated that demand remains solid, with commercial aftermarket revenue expected to be consistent at $55 million to $60 million per quarter. They anticipate mid-single to upper mid-single-digit growth in the commercial aftermarket, which is incorporated into their updated guidance. Q: Can you discuss the impact of recent acquisitions on Crane's financial performance and ROI expectations? A: Alcala expressed confidence in achieving a 10% ROI faster than the initially projected five years. The acquisitions are ahead of schedule, with significant growth and productivity opportunities. They expect to exceed their growth and margin improvement targets, indicating strong performance and integration. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record second-quarter performance was driven by 5% core sales growth and exceptional operational execution, resulting in a record 21.3% adjusted operating margin. Aerospace and Advanced Technologies (AAT) saw 13% core growth fueled by broad-based demand across commercial and military markets, with record backlog reaching nearly $1.3 billion. Process Flow Technologies (PFT) achieved its second consecutive quarter of sequential core backlog growth, signaling a recovery in industrial and chemical end markets. Management attributes margin expansion to favorable pricing, strong productivity, and disciplined cost management, which more than offset temporary dilution from recent acquisitions. The integration of four recent acquisitions (Panametrics, Druck, Reuter-Stokes, and optek) is progressing ahead of plan, with synergies being realized faster than initially anticipated. Strategic portfolio shifts toward high-growth markets like cryogenics, space launch, and nuclear energy are providing a solid foundation for sustained market share gains. The company maintains significant strategic flexibility with a strong balance sheet, positioning it to continue an active M&A strategy focused on highly engineered technologies. Full-year adjusted EPS guidance was raised by $0.20 at the midpoint to a range of $6.85 to $7.05, reflecting increased confidence in both core and acquired business performance. AAT core sales growth is now expected to land slightly above the high end of the long-term 7% to 9% range for the full year. PFT is expected to return to positive year-over-year growth in the second half of 2026, supported by strengthening order trends and green shoots in the Americas chemical sector. Management expects the recent acquisitions to contribute approximately $0.20 per share to full-year earnings, up from the prior expectation of $0.15 per share. Third-quarter results are expected to be similar to the second quarter, with the fourth quarter projected to be modestly lower due to normal historical seasonality. Adjusted results exclude a one-time benefit from tariff recoveries recorded during the quarter; no material incremental amounts are expected for the remainder of the year. The company successfully managed inflation headwinds related to freight and Middle East conflicts by proactively adjusting pricing and cost structures. Pro forma net leverage stands at 1.2 times following $190 million in debt repayments, providing ample capacity for future capital deployment. Management noted that while timing for M&A is unpredictable, the pipeline for high-quality targets in both segments has never been stronger. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that PFT orders strengthened throughout the quarter, particularly in chemical production in the Americas. Confidence in a positive second-half growth turn is supported by increased quote activity and strong demand in water, wastewater, and cryogenics. Crane currently has approximately $35 million in content across over 10 missile programs, with RFQ activity suggesting potential expansion of 4 to 5 times that rate by the end of the decade. The company faces no capacity constraints to meet this accelerating demand and is receiving incremental quotes for new content wins beyond existing platforms. The company is ahead of its five-year ROI schedule by approximately 1.5 years due to better-than-expected growth and productivity. Acquisition margins are expected to improve by 350 basis points or higher this year, exceeding the original 300-basis-point target. Commercial aftermarket demand remains solid, with management projecting a mid-single-digit to upper-mid-single-digit growth profile moving forward. Management emphasized that Crane earns strong margins on Original Equipment (OE) sales, making the business somewhat agnostic to the mix between OE and aftermarket volumes.

Interested in Crane? Here are five stocks we like better. Record Q2 performance: Crane reported 26% sales growth, 37% adjusted operating-profit growth and a record 21.3% adjusted operating margin. The company raised its 2026 adjusted earnings outlook to $6.85–$7.05 per share. Aerospace momentum remains strong: Aerospace & Advanced Technologies delivered 13.3% core sales growth, while backlog reached nearly $1.3 billion. Management also sees significant long-term expansion potential from defense and missile-program demand. Acquisitions and balance sheet support growth: January acquisitions are outperforming expectations, lifting their projected 2026 earnings contribution to about $0.20 per share. Crane reduced leverage to roughly 1.2 times net debt and said acquisitions remain its top capital-allocation priority. Circle’s IBM Patent Deal Could Redraw the Stablecoin Infrastructure Race Crane (NYSE:CR) reported record second-quarter results for 2026, citing core sales growth, margin expansion, rising backlog and stronger-than-expected contributions from its January acquisitions. The company raised its full-year adjusted earnings outlook to $6.85 to $7.05 per share, an increase of $0.20 at the midpoint. President and CEO Alex Alcala said the quarter reflected “strong execution across the company and continued momentum across our portfolio.” Total sales increased 26% from a year earlier, including 5% core growth, while adjusted operating profit rose 37%, according to Executive Vice President and CFO Rich Maue. → This Tiny AI Supplier Could Be More Important Than the Chipmakers 3 Unique AI Software Plays With Strong Analyst Support Total company adjusted operating margin expanded 180 basis points to a record 21.3%. Maue said the improvement reflected higher core sales, acquisitions, productivity initiatives and favorable pricing net of inflation. The company said its adjusted results excluded a benefit from IEEPA tariff recoveries during the quarter, which it characterized as one-time recoveries not expected to materially recur during the remainder of the year. Crane’s Aerospace & Advanced Technologies segment generated $339 million in second-quarter sales, up 31% from the prior year. Core sales rose 13.3%, led by broad-based commercial aerospace and defense demand. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? MarketBeat Week in Review – 07/06 - 07/10 The segment’s backlog reached nearly $1.3 billion, rising 11% on a core basis from a year earlier and 7% sequentially. Including the Druck acquisition, backlog increased 20% year over year. Alcala said Crane saw strength across commercial and military aerospace, including new program wins. During the quarter, the company was selected to supply components for GE’s RISE program and announced it would provide a brake control system for the Otto Aerospace Phantom 3500 business jet. → Innovative ETF Strategies That Are Paying Off This Summer Crane also cited growing defense-related demand. Alcala said the company has about $35 million of current content across more than 10 missile programs, including systems related to THAAD, Patriot and Tomahawk. Customer requests for quotations and forecasts indicate demand that could expand fourfold or fivefold by the end of the decade, he said. For the full year, Crane now expects Aerospace & Advanced Technologies core sales growth to finish slightly above its long-term range of 7% to 9%. Segment adjusted operating margin was 25.8%, compared with 26.6% a year earlier, as the acquired Druck business had a dilutive effect on margins. Maue said the segment would have been roughly 100 basis points more profitable in the quarter without the acquisition’s impact. Process Flow Technologies recorded sales of $386 million, up 21% from the prior-year period. Core sales declined 1.4%, while the Panametrics, Reuter-Stokes and optek acquisitions added nearly 22 percentage points of growth. Foreign exchange added 0.8 percentage points. Although core foreign-exchange-neutral backlog was down 2% from a year earlier, it increased 2% sequentially. Core orders were approximately flat year over year. The segment posted adjusted operating margin of 22.2%, up about 80 basis points from the prior-year quarter despite acquisition-related dilution. Management said demand and orders strengthened during the quarter, supporting expectations for year-over-year core growth to turn positive in the second half. Alcala pointed to improving quote activity and signs of recovery in chemical production, particularly in the Americas, alongside continued demand in industrial power generation, water and wastewater, cryogenics and nuclear-related markets. Crane secured cryogenic projects from SpaceX and Blue Origin during the quarter. The company also said it continues to support nuclear-facility restarts, including Constellation Energy’s Crane Clean Energy Center, while pursuing future opportunities in pressurized-water reactors and small modular reactors through Reuter-Stokes. The company maintained its full-year Process Flow Technologies outlook for core growth ranging from flat to low single digits. Maue said both volume and price are expected to contribute to second-half growth, and management expects strong operating leverage as volumes improve. Crane said the four businesses acquired in January—Panametrics, Druck, Reuter-Stokes and optek—are performing ahead of plan. Management said integrations are progressing faster than expected, synergies are arriving sooner and additional growth and margin opportunities have been identified. As a result, Crane increased its expectation for the acquisitions’ full-year earnings contribution to about $0.20 per share, up from approximately $0.15 per share previously. Maue said the company originally expected the acquired portfolio to grow 4% to 6% and improve margins by 200 basis points in 2026, later increasing the margin expectation to 300 basis points. He now expects growth to exceed the original range and margin improvement to reach roughly 350 basis points or more for the year. Crane repaid $100 million of debt during the quarter and another $90 million after quarter-end, reducing pro forma net leverage to about 1.2 times. The company said its target leverage range is 2 times to 3 times and that acquisitions remain its primary capital-allocation priority. Alcala said Crane’s pipeline of potential deals has “never been stronger” across both Aerospace & Advanced Technologies and Process Flow Technologies, though he said there was nothing imminent to announce. The company is seeking highly engineered, mission-critical technologies that can strengthen its franchises, expand exposure to attractive markets and support long-term margin expansion. For the second half, Crane expects third-quarter results to be similar to the second quarter, followed by a modestly lower fourth quarter due to normal seasonality. The company continues to forecast 2026 corporate expense of $80 million to $85 million, net non-operating expense of about $58 million and a tax rate of approximately 23%. Crane Co, headquartered in Stamford, Connecticut, is a diversified manufacturer of engineered industrial products serving customers around the world. The company operates through two primary segments: Aerospace & Electronics and Engineered Materials. Its Aerospace & Electronics division designs and produces valves, fittings, manifolds, and filtration systems for aircraft fuel, hydraulics, and environmental control systems. The Engineered Materials segment focuses on advanced polymers, heat exchangers, and specialized composite solutions for industries including chemical processing, semiconductor manufacturing, and power generation. With roots dating back to its founding in 1855 in Chicago by R.T. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Crane Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Crane Company has reported its second-quarter 2026 results, with sales and revenue rising to US$724.7 million and net income increasing to US$95.9 million, while diluted earnings per share from continuing operations reached US$1.63. Despite higher second-quarter profit, net income for the first half of 2026 was US$163.0 million, lower than the prior year’s US$193.5 million, highlighting a contrast between recent momentum and earlier-period performance. With this strong second-quarter earnings performance, particularly the uplift in sales and earnings per share, we’ll assess how it reshapes Crane’s investment narrative. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. To own Crane today, you need to believe it can translate its specialty industrial portfolio and acquisitions into consistent earnings, despite cyclical end markets and integration risks. The strong second quarter, with higher sales and EPS from continuing operations, supports the near term catalyst around acquisition driven growth and margin execution. However, the softer first half net income keeps the spotlight on Crane’s exposure to project delays and capex cuts, especially in process industries, as a key risk. Recent guidance reaffirmations for 2026, calling for low to mid 20% total sales growth supported by acquisitions and mid single digit core sales growth, line up closely with this latest earnings release. The second quarter’s revenue of US$724.7 million and higher EPS from continuing operations sit broadly within that framework, but also raise fresh questions about how much of Crane’s momentum is acquisition led versus underlying demand strength in areas like Aerospace & Electronics and Process Flow Technologies. Yet behind this improving quarterly picture, investors should still weigh the risk that prolonged weakness in European chemicals and delayed customer CapEx could... Read the full narrative on Crane (it's free!) Crane's narrative projects $3.3 billion revenue and $534.8 million earnings by 2029. Uncover how Crane's forecasts yield a $224.78 fair value, in line with its current price. Some of the lowest analysts were already modeling about US$3.2 billion of revenue and US$486.8 million of earnings by 2029, which paints a far more cautious picture than the base case, and your view on today’s stronger quarter versus risks like automation driven competition will shape whether you see that pessimism as justified or due for revision. Explore 4 other fair value estimates on Crane - why the stock might be worth as much as 8% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Crane research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free Crane research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Crane's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: Find 49 companies with promising cash flow potential yet trading below their fair value. The future of work is here. Discover the 34 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. AI is about to change healthcare. These 40 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]