Overview
DA Davidson has maintained its Buy recommendation on Crane, assigning a $235.00 price target after the industrial products manufacturer reported results that topped the firm’s expectations. The stock is trading above its assessed Fair Value, with a quote near $198.51 and a 34.8% total return over the last year.
Earnings and segment performance
Crane reported operating earnings per share that exceeded DA Davidson’s model by $0.06. The outperformance was attributed to stronger-than-expected core sales and upside in operating profit margins across both Crane’s Aerospace & Electronics (formerly A&E) and Payment & Merchandising Technologies (PFT) segments.
Orders, backlog and revenue dynamics
The company’s core orders rose almost 2% year-over-year, while organic backlog expanded by roughly 15%, a gain driven largely by the Aerospace & Electronics segment. Total backlog now stands at $1.44 billion. Management reported core sales growth of 5.4% in the fourth quarter, supported by healthy demand in aerospace and defense end markets.
Acquisitions and balance sheet position
Crane completed the previously disclosed acquisition of PSI and an additional complementary bolt-on purchase. On a pro forma basis, net debt is approximately 1.4 times earnings, and the company reports more than $1.5 billion of capacity available for potential future mergers and acquisitions. Data cited in the release indicates Crane holds more cash than debt on its balance sheet and shows a current ratio of 3.27, underscoring a conservative liquidity profile.
Guidance and near-term outlook
The midpoint of Crane’s 2026 guidance was reported to be roughly $0.10 above DA Davidson’s comparable forecast. That slight upside in the guidance midpoint contributed to the analyst reaffirmation of a Buy opinion. Management’s commentary also flagged a slight revenue miss in recent reporting despite solid core-sales and operating-profit gains.
Quarterly results detail
For 2025, Crane reported a 23% increase in earnings per diluted share. In the fourth quarter specifically, adjusted EPS was $1.53, a 21% increase from the same period the prior year. The company also posted third-quarter adjusted EPS of $1.64, beating the $1.43 forecast and representing a 14.69% surprise versus expectations. These sequential beats highlighted the company’s margin resilience even amid a minor top-line shortfall.
Leadership transition
Crane announced a management succession plan in which Alex Alcala, currently serving as COO, is slated to assume the role of CEO in April 2026. Concurrently, current CEO Max Mitchell will transition to Executive Chairman. The planned change aligns with the company’s multi-year strategy and timing provided alongside 2026 guidance assumptions.
Analyst activity and market context
In addition to DA Davidson’s reaffirmation, Wolfe Research initiated coverage on Crane with an Outperform rating and a $215.00 price target, which Wolfe characterized as implying about 17% upside from current levels. Wolfe noted that Crane’s shares have risen about 20% year-to-date, placing the stock toward the lower end of its aerospace coverage universe.
Research and investor resources
Data referenced in the release identifies additional investor-oriented points on Crane, including its 55-year dividend payment streak and favorable return metrics. The company’s in-depth Pro Research Report and related analyses were highlighted as resources for subscribers seeking a deeper dive into the metrics behind the headline results.
Implications for sectors
- Industrial manufacturing - Crane’s results and backlog growth reflect demand dynamics for engineered components.
- Aerospace and defense - Outperformance was concentrated in aerospace and defense end markets, which led backlog expansion.
- Payments and merchandising - Margin improvement in PFT contributed to the company’s operating EPS beat.