NYSE:CR
Crane Co
A premier global manufacturer of industrial sealing products providing essential safety solutions for heavy industries including energy and mining.
Key Metrics
Investment Thesis
Bull Case
Investors should consider Crane Co due to its resilient demand profile from essential infrastructure projects in mining and energy that are less sensitive to short-term economic swings. The company's dominant market position allows it to maintain healthy gross margins of $972.8M against a $2.31B revenue base, supporting consistent profitability. Strong cash flow generation provides ample capacity for dividends and potential share buybacks to reward shareholders.
Bear Case
The stock faces headwinds from elevated debt levels with long-term obligations of $1.15B against total equity of $2.06B, limiting financial flexibility during downturns. A significant portion of retained earnings is in deficit at -$1.53B, suggesting historical capital intensity or past restructuring costs that weigh on the balance sheet. Cyclical dependence on the oil patch exposes earnings to potential steep declines if energy investment spending slows globally.
About Crane Co
Crane Co (NYSE: CR) is a global leader in industrial sealing solutions, serving critical sectors like oil and gas, mining, pulp and paper, and general industry. The company manufactures high-performance elastomeric seals, gaskets, and tubing that ensure safety and efficiency across harsh operating environments worldwide.
Analysis
Management Discussion
Crane Co delivered strong financial performance in 2025 with revenue reaching $2.31B and net profit of $366.6M, reflecting successful pricing power and volume growth. Cash flow from operations of $394.8M indicates healthy liquidity generation despite a notable increase in accounts receivable of $13.4M compared to the prior year. The company effectively managed working capital changes while investing in intangible assets totaling $149.5M to sustain its technological edge.
Industry Overview
The industrial sealing market is characterized by high barriers to entry due to stringent safety regulations and the need for specialized engineering knowledge. Customers in heavy industries prioritize reliability over price, leading to long-term contracts that favor established players like Crane Co. Industry growth is tied to global infrastructure development and energy transition projects requiring robust containment solutions.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $2.09B | $2.13B | $2.31B |
| Cost of Revenue | $1.28B | $1.26B | $1.33B |
| Gross Profit | $805.0M | $867.8M | $972.8M |
| Operating Expenses | $521.2M | $512.0M | $548.6M |
| Operating Income | $283.8M | $355.8M | $424.2M |
| R&D | $55.9M | $46.1M | $47.8M |
| G&A | $521.2M | $512.0M | — |
| Stock-Based Comp | $26.1M | $25.6M | $27.2M |
| D&A | $39.3M | $51.0M | $50.2M |
| Depreciation | $33.0M | $33.4M | $36.4M |
| Amortization | $6.3M | $17.6M | $13.8M |
| Other OpEx | $-55.9M | $-46.1M | $500.8M |
| Non-Operating Income | $-16.8M | $-17.3M | $8.6M |
| Interest Expense | $22.7M | — | — |
| Interest Income | $5.1M | $5.5M | $11.2M |
| Pre-Tax Income | $267.0M | $338.5M | $432.8M |
| Income Tax | $63.2M | $70.3M | $101.1M |
| Continuing Ops | $203.8M | $268.2M | $331.7M |
| Discontinued Ops | $52.1M | $26.5M | $34.9M |
| Net Income | $255.9M | $294.7M | $366.6M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $255.9M | $294.7M | $366.6M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $1.09B | $1.40B | $2.57B |
| Cash & Equivalents | $329.6M | $306.7M | $506.5M |
| Accounts Receivable | $306.4M | $339.1M | $358.7M |
| Inventory | $353.1M | $380.4M | $376.5M |
| Other Current Assets | $101.7M | $377.0M | $1.33B |
| Long-Term Assets | $1.24B | $1.24B | $1.28B |
| PP&E (Net) | $270.5M | $261.3M | $278.8M |
| Intangibles | $87.9M | $159.9M | $149.5M |
| Goodwill | $747.7M | $661.6M | $683.9M |
| Operating Leases | $64.0M | $69.1M | $64.8M |
| Other LT Assets | $72.7M | $86.8M | $105.0M |
| Total Assets | $2.33B | $2.64B | $3.85B |
| Current Liabilities | $467.1M | $543.4M | $465.2M |
| Accounts Payable | $179.1M | $188.2M | $189.6M |
| Current Leases | $10.8M | $13.0M | $13.6M |
| Taxes Payable | $14.3M | $7.9M | $6.3M |
| Other Current Liab | $-10.8M | $31.1M | $-13.6M |
| Long-Term Liabilities | $506.2M | $457.5M | $1.32B |
| Long-Term Debt | $248.5M | $247.0M | $1.15B |
| LT Operating Leases | $56.3M | $59.3M | $54.4M |
| Other LT Liab | $201.4M | $151.2M | $122.2M |
| Total Liabilities | $973.3M | $1.00B | $1.79B |
| Shareholders' Equity | $1.36B | $1.64B | $2.06B |
| Paid-In Capital | $398.2M | $425.5M | $452.0M |
| Retained Earnings | $960.7M | $1.22B | $1.53B |
| AOCI | $-58.0M | $-61.9M | $20.0M |
| Treasury Stock | $0 | — | — |
| Total L&E | $2.33B | $2.64B | $3.85B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $255.9M | $294.7M | $366.6M |
| Non-Cash Adjustments | $-82.3M | $-237.1M | $118.2M |
| Working Capital Changes | $54.6M | $215.2M | $-90.0M |
| Cash from Operations | $228.2M | $272.8M | $394.8M |
| Cash from Investing | $-136.6M | $-233.2M | $165.5M |
| Share Buybacks | $0 | — | — |
| Dividends Paid | $57.3M | $46.9M | $52.9M |
| Cash from Financing | $-423.2M | $-49.7M | $838.8M |
| FX Effect | $3.6M | $-11.3M | $24.0M |
| Net Change in Cash | $-328.0M | $-21.4M | $1.42B |
| Beginning Cash | $427.0M | $329.6M | $306.7M |
| Ending Cash | $329.6M | $306.7M | $1.73B |
Frequently Asked Questions
How does Crane Co make money?
The company's revenue is driven by four primary segments: Oil & Gas, which serves drilling and production operations; Mining, focusing on extreme pressure applications; Pulp & Paper, addressing the unique needs of paper manufacturing machinery; and General Industry, covering a broad range of commercial and industrial sealing requirements.
What are the main risks for CR?
Significant exposure to volatile commodity prices, particularly copper and steel, which impacts raw material costs. Cyclical demand fluctuations in the oil and gas sector can lead to revenue contraction during downturns. Supply chain disruptions or geopolitical instability in resource-rich regions could threaten production continuity and safety compliance.
What is CR's competitive advantage?
Crane Co possesses deep customer relationships with major global mining and energy firms that create high switching costs. Its proprietary product designs and extensive R&D allow for specialized solutions in extreme environments where generic parts fail. The company benefits from a global manufacturing footprint that provides operational flexibility and proximity to key resource extraction sites.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.