The Crane Company Q4 2025 Earnings Call - Acquisitions, CEO Succession, and Margin-Levered Growth Set the Tone for 2026

Madison, Conference Call Operator: Welcome to The Crane Company fourth quarter 2025 earnings conference call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. So others can hear your questions clearly, we ask that you pick up your handset for best sound quality. Lastly, if you should require operator assistance, please press star zero. I would now like to turn the call over to Allison Poliniak, Vice President of Investor Relations.

Allison Poliniak, Vice President of Investor Relations, Crane Company: Thank you, Madison, and good day, everyone. Welcome to our fourth quarter 2025 earnings release conference call. I’m Allison Poliniak, Vice President of Investor Relations. On our call this morning, we have Max Mitchell, our Chairman, President, and Chief Executive Officer, Alex Alcala, Executive Vice President and Chief Operating Officer and incoming CEO, and Rich Maue, our Executive Vice President and Chief Financial Officer, along with Jason Feldman, Senior Vice President, Treasury, Tax, and Investor Relations, who is on for Q&A. We will start off our call with a few prepared remarks from Max, Alex, and Rich, after which we will respond to your questions. Just a reminder, the comments we make on this call will include some forward-looking statements.

We refer you to the cautionary language at the bottom of our earnings release and also in our annual report, 10-K, and subsequent filings pertaining to forward-looking statements. Also, during the call, we will be using some non-GAAP numbers, which are reconciled to the comparable GAAP numbers in tables at the end of our press release and accompanying slide presentation, both of which are available on our website at www.craneco.com in the Investor Relations section. Now, let me turn the call over to Max.

Max Mitchell, Chairman, President, and Chief Executive Officer, Crane Company: Thank you, Allison. Thanks, everyone, for joining the call today. While we’ve got many exciting things to discuss today as we exit the fourth quarter, and we’re already off to a fantastic start for 2026. Our performance last year and our initial guidance for 2026 show that we are consistently and reliably delivering on our commitments and our long-term value creation thesis. 4%-6% core sales growth, and we were just at the high end of that last year. 35%-40% core operating leverage and upside from capital deployment. And that’s just the baseline. We’re always working to over-deliver. All aspects of this thesis have continued to play out as expected and will continue. For the quarter, once again, we exceeded even our high expectations, underscoring the strength of our teams, strategy, excellence, and execution, and a relentless commitment to delivering shareholder value.

Adjusted EPS of $1.53 was up 21% over the prior year, driven by an impressive 5.4% core sales growth, reflecting broad-based strength in aerospace and advanced technologies and continued strong execution of process flow technologies. For the full year, adjusted EPS increased by 24%, driven by our outstanding teams delivering on customer expectations, enabled by our sustained investments in advanced technologies and innovative solutions. In 2025, we also continued building on our strong track record of enhancing and shaping our portfolio by adding technologies and capabilities inorganically that will drive growth and support both existing and new customers. Having previously announced the signing with Baker Hughes on June 9 last year, we are excited to formally welcome the Druck, Panametrics, and Reuter-Stokes brands to the Crane portfolio, having closed on the acquisition of these brands on January 1.

As a reminder, Reuter-Stokes doubles the size of our nuclear business, adding industry-leading radiation sensing and detecting technologies for nuclear plant operations, as well as for homeland security applications. Nuclear is an exciting market space today, and we see additional applications for the core Reuter-Stokes technology in a number of other high-growth adjacent markets. This business is being integrated into our Crane Nuclear business, which Chris Mitchell has successfully run for us over the last six years. Panametrics will operate as a standalone business unit in our Process Flow Technologies segment, reporting directly to SVP Shangaza Dasent. This business adds advanced ultrasonic flow meters and precision moisture analyzers, a really incredible portfolio of solutions that enables accurate measurement of liquids and gases across applications such as cryogenic gas storage, LNG transportation, wastewater treatment, chemical, and petrol...

Lastly, Druck will be maintained as a standalone business unit reporting to SVP Jay Higgs under the newly renamed Aerospace and Advanced Technologies segment. This new name better captures who we are today and our future strategic direction for this segment than the prior Aerospace and Electronics name. Still the same focus on proprietary, highly differentiated technologies with primarily sole source positions, but continuing to expand our range of technologies and offerings and looking at adjacent end markets where our capabilities are similarly valued. We expect to selectively and carefully widen our aperture in this segment without losing focus on what differentiates us. Specifically, the addition of Druck’s complementary product line meaningfully strengthens our pressure sensing capabilities across critical applications, including aircraft engine monitoring and hydraulics, with strong positions in wide-body aircraft platforms, as well as environmental control solutions....

Druck also expands our presence into ground-based test and calibration equipment for aerospace and certain other end markets, leveraging the same best-in-class pressure sensing technology. In other exciting news, in addition to Druck, Panametrics, and Reuter-Stokes businesses closing January 1, at the start of the year, we also closed on the acquisition of Optek-Danulat, headquartered in Essen, Germany. Optek-Danulat is the leader in inline process control, optical sensing measurement solutions for biopharma, pharma, and other demanding markets, with those annual sales of approximately $40 million. Optek-Danulat is a perfect complement to our growing instrumentation business. My personal thanks to Jürgen Danulat for his trust in Crane as stewards of his legacy moving forward, and to the outstanding team at Optek-Danulat. Just really a fantastic addition. The teams have hit the ground running across all businesses. The integration process is well underway, and the machine is fully in motion.

Further M&A activity is robust, and we continue to execute and cultivate accelerated opportunities. We see many opportunities progressing through 2026, but at this time, nothing additional is imminent in Q1. Alex will provide more details on our core businesses as well as the recent acquisition shortly, but let me touch on the planned succession timeline that we announced last night. I want to congratulate Alex for being appointed as Crane’s next CEO, effective April 27, 2026, at our next annual shareholder meeting. And at that time, at the request of the board, I will move to serve as Executive Chairman for a transitionary period, expected to be no more than two years. Having partnered with Alex for more than a decade, I can confidently say he is the right leader to accelerate Crane’s strong momentum.

His deep operational expertise, proven ability to develop and execute complex strategic initiatives, and unwavering commitment to our high-performance culture, have been critical in shaping Crane into the market leader it is today and our proven performance across PFT and AAT. In my new role as executive chairman, I look forward to supporting Alex and the leadership team as we continue driving strategic growth and long-term value creation. Coming off the incredibly strong performance in 2025 and turning to 2026, I remain highly confident in the strength and resilience of Crane’s team and portfolio. Moving to 2026 guidance, I’d like to highlight that our guidance for 2026 includes a change to our non-GAAP presentation of adjusted EPS, which now excludes non-cash, tax-affected, acquisition-related, intangible amortization.

Rich will provide more on this during his remarks, but using this new convention for both 2025 and 2026, I’m pleased to announce our initial 2026 adjusted EPS guidance of $6.55-$6.75. A solid 10% adjusted EPS growth at the midpoint, when excluding the $0.16 benefit of one-time hurricane-related insurance recoveries that we received in 2025, as well as after-tax acquisition-related intangible amortization in both years. Importantly, I’m excited to share that we estimate that the acquisitions will be slightly accretive to 2026 earnings results. As I started with, many exciting developments across the company, and our investment thesis is stronger than ever. Now, let me pass it over to our Chief Operating Officer and incoming Chief Executive Officer, Mr.

Alex Alcala, to provide some color on the current environment, segment performance, and recent acquisitions. Alex?

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Thank you, Max. I’m truly honored to have been appointed the next Chief Executive Officer of Crane. I’m enormously grateful for the board, and in particular, to Max, for his trust and support over the years. I’m also thrilled that Max will continue as Executive Chairman, allowing me to keep benefiting from his tremendous experience and leadership. But this is not about me. It’s about our leadership team and the 8,500 associates who execute every day, living the Crane culture of incredible intensity, focus, and accountability. I’ve been fortunate to be part of the Crane journey for the past 13 years. We’ve transformed our portfolio, substantially improved our margins and our growth profile, and delivered significant shareholder value under Max’s leadership.

But I can tell you, I’ve never been more excited about our future and the progress we will continue to make for our customers, our associates, our communities, and our shareholders. Looking ahead, we will stay true to our journey, driving the Crane Business System to deliver strong organic growth while also pursuing our strategy of accelerated inorganic growth. Over the years, I’ve literally traveled more than a million miles as part of this incredible journey with Crane, and I’m ready for the next million with this extraordinary team. Now, some thoughts on the segments in the quarter as we look to 2026. Let me start with Aerospace and Advanced Technologies. These markets remain very strong. The backbone we’ve built, along with the new programs and opportunities our Aerospace and Electronics teams have secured, continues to provide us with great visibility into 2026 and beyond.

On the commercial side, things continue to look healthy. Boeing and Airbus continue to ramp up production, and aftermarket demand is still running at elevated levels.... Although the year-over-year comparisons have become increasingly challenging. On the defense side, a lot of activity and interesting industry announcements over the past few weeks. Procurement spending remains solid, and there’s a continued focus on strengthening the broader defense industrial base, given the heightened global uncertainty we continue to see. Given the level of activity we are seeing for 2026, we expect core sales growth for the year to be up at the high end of our 7%-9% long-term growth assumption. And importantly, that growth should leverage at about 35%-40% for the full year, despite the less favorable mix, which is moving back to normal levels.

Our guidance assumes OE sales will grow double digits year-over-year, partially offset by decelerating growth rate in commercial aftermarket. We are excited for Truck to join the AAT segment and expect over the next few years that it will be incremental to both the segment’s growth and margin profile. However, while it will be incremental to growth in 2026, we expect Truck to be diluted to overall segment margin in the near term. Overall, we are on track for another outstanding year. And beyond this, we continue to develop new technologies, win new business, and pursue additional opportunities across the segment. That gives us confidence we’ll deliver above-market growth for the rest of the decade. A few highlights for the quarter in AAT.

First, in our defense power business, we remain actively engaged and solidly positioned with defense vehicle OEMs, collaborating on the Common Tactical Truck and new combat vehicle programs. Second, Crane also continues to win funded next-generation military demonstrator programs for our brake control systems. We will also begin production for the F-16 brake control project in 2026 and receive two more follow-on orders, one from the United States Air Force and the other from a foreign military customer. And last, with elevated interest around air defense systems, we’re actively tracking and pursuing new high-power AESA radar opportunities. Overall, our Aerospace and Advanced Technologies segment is positioned to significantly outperform its markets over the next decade. We’re extremely proud of what this team has accomplished and the momentum they’ve built. At Process Flow Technologies, we remain well positioned to outgrow the cycle.

Over the past decade, we have deliberately repositioned our portfolio towards technologies and end markets that are higher growth and where we maintain leading competitive advantages and clear differentiation, positioning us to deliver consistent, sustainable growth ahead of the market. The latest acquisitions enable us to continue that journey. Similar to Q3, we continue to see strength in segments such as pharmaceuticals, cryogenics, power generation, and water, while chemical markets remain subdued at trough levels. Our disciplined approach and sharp focus enable us to maintain leadership in this segment, as evidenced by our Q4 performance, even given today’s macro backdrop. A few highlights from PFT in the quarter. Our cryogenics business had another strong Q4, securing orders for a number of space launch customers.

We continue to win and expand our share in this important vertical due to our excellence in engineering solutions, along with our ability to rapidly execute orders. Additionally, we continue to drive solid wins in pharma, securing another large order supporting capacity expansion to manufacture GLP-1 drugs. Our ability to deliver high-performance solutions for our critical pharmaceutical application continues to set us apart in a competitive market and positions us for sustained growth in this segment. And lastly, despite the sluggish chemical industry, our teams continue to secure targeted opportunities within chemicals, securing key new project wins in the Middle East. Looking ahead to 2026 for PFT, given our fourth quarter orders remain sluggish, we are adopting a cautious view of 2026 demand levels to start the year and expect that core growth to be flat to low single digits for 2026.

However, we do expect core leverage to still be within our targeted range of 30%-35%. With the additions of Panametrics, Reuter-Stokes, and Optek-Danulat joining the PFT family, we fully expect over the next couple of years that they will be incremental to both segment growth and margins. In 2026, while there will be incremental to growth, near term, we expect them to be dilutive to overall segment margin. Overall, both businesses are strongly positioned for sustained success, with the resilience and strategic foundation needed to deliver outstanding results in 2026 and beyond. Before I wrap up, I want to provide additional color on the acquisitions of Panametrics, Druck, and Reuter-Stokes. The integration process is off to a strong start, and our outlook for these businesses is already exceeding our initial expectations.

As Max mentioned, we now anticipate these businesses to be slightly accretive to earnings in 2026, compared to our original expectation of no accretion in year one. We have been preparing for the last six months, and I personally spent a significant portion of this month visiting all these teams, and the CBS machine is already being deployed. I’m extremely confident that these businesses will become some of our best performing and most profitable businesses within Crane in the years ahead. As I think about the levers of focused improvement, the cost synergies will come from three major areas, all driven by CBS. Organizational simplification and focus. By operating these businesses as three independent entities, we’re eliminating the top management cost layer.

Product line simplification or 80/20, reducing complexity and eliminating work with limited return on investment, and traditional productivity improvements, driving efficiency through supply chain and lean tools and processes. In addition, all growth synergies are fully incremental upside to our financial model. We have dedicated teams in place and are off to a great start. I’m very confident we will meet or exceed our targets. Now, let me turn the call over to our CFO, Mr. Rich Maue, for more specifics on the quarter.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Thank you, Alex, and congratulations as well. Hey, I really look forward to having as much fun with you as I’ve had with Max over the last decade. And Alex, I gave Max this same advice when he became CEO, borrowed from Michael Caine as Charlie Croker in the timeless movie classic, The Italian Job. "It’s a difficult job, and the only way to get through it is if we all work together as a team, and that means you do everything I say." I’m kidding, of course.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: I don’t remember that.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Not really. And to Max, borrowing Humphrey Bogart’s ever famous line as Rick Blaine in the Academy Award-winning drama, Casablanca, "We’ll always have Paris.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Mm!

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Good morning, everyone.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Now I’m gonna get choked up.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Good morning, everyone. Let me start off with total company results. We drove 5.4% core sales growth in the quarter, reflecting the ongoing strength within the Aerospace and Advanced Technologies segment. Adjusted operating profit increased 16%, reflecting the impact of higher productivity and favorable pricing net of inflation. In the quarter, core FX neutral backlog was up 14% compared to last year. Again, continued strength at Aerospace and Advanced Technologies, and core FX neutral orders were up 2%. From a balance sheet perspective, with the close of the acquisition of Druck, Panametrics, and Reuter-Stokes, we ended the year with net leverage of 1.1 times, which reflected 102% adjusted free cash conversion in 2025, an outstanding performance by our teams globally.

As Max noted earlier in January, we also closed on the acquisition of Optek-Danulat, that brought our net leverage to 1.4 times, leaving us well-positioned for further M&A. A few more details on the segments in the quarter. Starting with Aerospace and Advanced Technologies. Sales of $272 million increased 15% in the quarter, nearly all of that growth organic. Even with the continued high level of core sales growth, our record backlog of just over $1 billion was up 25% year-over-year and was up slightly sequentially. Core orders were up 8%. Again, no surprises and continued strong demand broadly. Total aftermarket sales increased 1%, with commercial aftermarket sales up 3% and military aftermarket down 3%.

OEM sales increased 23% in the quarter, with commercial sales up 27% and military sales up 18%, all in line with our expectations. Adjusted segment margin of 23.6%, expanding 50 basis points from 23.1% last year, primarily due to strong productivity, higher volumes, and higher price net of inflation. At Process Flow Technologies, in Q4, we delivered sales of $309 million, flat relative to a year ago, with core sales down 1.5%, as we anticipated, offset by a slight benefit from the Technifab acquisition and 1.6 points of favorable FX. Compared to the prior year, core FX neutral backlog at PFT decreased 7%, and core FX neutral orders remained soft, down 3%, driven by the weaker chemical end markets, as expected.

However, adjusted operating margin of 22% expanded again, and in the quarter was 170 basis points higher. Despite the headwinds on the top line, productivity is reading through as well as price. Moving to the non-operational items below the segments, along with some additional 2026 guidance matters. To start, as Max mentioned, beginning in 2026, we are excluding intangible amortization from our non-GAAP presentation of adjusted EPS. Following the significant increase in intangible amortization related to this month’s acquisition activity, we believe that excluding it from adjusted EPS gives investors a better picture of Crane’s free cash flow and also enables better comparison to the majority of our peer companies that use the same convention. Reconciliations recasting last year are in the slide presentation accompanying this call. Now, moving on to a few non-operational items.

Corporate expense for the full year of 2025 was $87 million, modestly up above our prior view of $85 million, due primarily to M&A activity. For 2026, we anticipate corporate expense to be in the range of $80 million-$85 million. In Q4, we received $5.2 million of insurance recoveries from the Hurricane Helene flood. We had at one of our PFT sites, or a $0.07 benefit to results in the quarter. With this final payment, the matter is now fully resolved with our insurers. Remember that our full year 2025 guidance included $9 million of insurance recoveries related to Hurricane Helene, with $6.7 million received through Q3.

So $2.3 million, or about $0.03 of the fourth quarter’s insurance recovery, was in our latest October guidance, so the actual amount received was $2.9 million, or $0.04 per share better than we had expected. Also, keep in mind that for the full year, total insurance recoveries benefited adjusted results by $0.16, a benefit that will not repeat in 2026. Given the funding for the acquisitions of Panametrics, Druck, Reuter-Stokes, and Optek-Danulat, we now anticipate full-year 2026 interest expense of approximately $58 million. And lastly, we estimate our tax rate for 2026 to approximate 23%, slightly higher than our 2025 rate of 22.9%.

Looking at the cadence of quarterly results for the year, we expect Q1 2026 to be seasonally soft this quarter, coming in roughly flat with the first quarter of 2025, lower than historical patterns, given acquisition, integration, and increased interest expense. For the full year earnings split, we expect the first half of 2026 to represent about 45% of full year earnings, with 55% weighted towards the second half. Overall, another outstanding year at Crane planned for 2026. With that, operator, we are now ready to take our first question.

Madison, Conference Call Operator: Thank you. The floor is now open for questions. At this time, if you have a question or comment, please press star one on your telephone keypad. If at any point your question is answered, you may remove yourself from the queue by pressing star two. Again, we ask that you pick up your handset when posing your questions to provide optimal sound quality. Thank you. Our first question is coming from Scott Deuschle with Deutsche Bank.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Hey, good morning. Max, what are you going to do about your free time here?

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Oh, Scott. I’m gonna remain busy, Scott. Very, very busy. In addition to executive chair, I think you know, I’ve, I’ve become a very popular Gen X influencer. I have my podcast that started, and my OnlyFans page is going well. It’s gonna be busy.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Well, I’m looking to hire someone for my team, so if you’re interested in a career in sell-side research, let me know. I’ll let you rise to the Crane nuts. In all seriousness, Alex, I was wondering if you could speak to the pricing opportunity at Druck in 2026 and 2027. Specifically, I was curious if there are any meaningful LTAs coming up for renewal this year or next, and what type of price increase might be possible there?

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Yeah, thanks, Scott. So just pulling back on all three businesses, right? Druck, Panametrics, Reuter-Stokes, in our financial model, we assume significant opportunity. Been working with this team for six months, spent most of the months with them. So definitely validate our hypothesis on opportunities, potentially more than we even thought. So feeling very bullish about these acquisitions. All three businesses have significant opportunity to drive the Crane Business System. I talked about the areas on product line simplification, restructuring, how the business model, and just traditional operational excellence. As far as value pricing, as you know, in Crane, we do a good job standing for—standing up for our value, our differentiated technology. There’s opportunity to do better in all three businesses.

In Druck, we would expect to see improvements starting this year, ramping more into next year as it takes some time. Just like any aerospace business, there are contracts. Some expire naturally that need to be renewed, renegotiated. So everything, you know, no real obstacles to achieve our goals in that area, Scott.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Okay. Rich, can you clarify what guidance contemplates as it relates to cost takeout at PSI? I think you’ve spoken about high single-digit $ million corporate cost takeout, and I wanted to clarify if that was in the guide or still on the count.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Yeah, I think no change to what we’ve previously discussed. You know, there’s a few buckets. I think they’re the same buckets that Alex mentioned. So the cost element is gonna, or productivity element, however you want to categorize it, is clearly gonna be one of them, on the commercial side being another, and then leveraging the growth at rates that we would expect to leveraging, you know, our operating cadence. So across all three, and I would say no difference versus what we previously had communicated.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: All right, I’ll leave it there. Thank you.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Thanks, Scott.

Madison, Conference Call Operator: Thank you. And our next question is coming from Miles Walton with Wolfe Research. Please go ahead.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Hi, good morning, everyone. This is Greg Nalbandian for Miles. First of all-

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Good morning, Greg.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: ... congrats to both Max and Alex.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Thank you.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Thank you.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: So first one here, I guess with the renaming of A&E to AAT, I think you mentioned in your remarks the widening of the aperture of what you would look at there. Can you go into more details, I guess, in terms of what adjacent tech and strategic direction this is actually referring to?

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: ... Yeah, Greg, this is Alex. So just a reminder, you know, our business unit, Aerospace and Electronics, was both, business unit name and segment name. So last year, we announced the promotion of, Jay Higgs, as Senior Vice President of the segment, and it’s really positioning us to do more deals like Druck. So Druck would be a perfect example of the technologies that we would expand in, where it has a foot in traditional aerospace, but also, gets us into lab-based calibration and even some high-growth industrial applications that are combined with the technology. So, I think, Druck would be a good reference of what you expect to see in that segment.

And, you know, the model that we have right now, and the structure allows us to keep adding not only bolt-ons, but standalone units to keep building out that segment, similar to what we’ve done in PFT. You recall that when we changed the name from Fluid Handling to Process Flow Technologies, we were thinking about expanding our aperture, moving up the technology stack, having more differentiated products, and those have been the acquisitions we’ve done on that side as well, with the sensing applications and now Optek as well, adding to that. And that’s what you would expect to see. High technology, differentiated, improving our growth and margin profiles on both sides of the segments.

Growing both segments, doubling the size here in the next coming years is our goal, that continues to create shareholder value and also optionality for the future.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Great, thanks. And then, just quickly on PFT, I know backlog declined sequentially for the second quarter in a row, mostly due to the chem side. Can you just talk about what you’re seeing? And I guess, is, is there a time frame you’d expect that to start turning, more specifically, to, to chemicals and, I guess, more broadly, your outlook for end markets in 2026 in PFT? Thank you.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Yeah, Greg, so let me pull back just on PFT because we have, we service various segments, right? So first, commenting on the areas and businesses markets that grew in 2025 strongly, and we expect to continue in 2026. So wastewater, which is primarily a North America-based business, we saw high single-digit growth. We expect strong growth also in 2026. Cryogenics as well, double-digit growth in 25. That will continue. Pharma, there’s global growth that we’re seeing also, in particular in North America, some increased investments and reshoring from pharma customers that we expect. Power, again, North America-based power generation, where we’ve seen momentum in 25, expect that to move on. So a lot of our segments and verticals of our businesses continue with strong momentum. You did mention chemical, which has been sluggish.

You know, just to pull back also, we expect to see similar to what we saw in 2025, which has been varied by region. You can’t lump it all together. So Americas and Middle East, we saw growth year-over-year on orders. In 2025, we expect, you know, the sort of modest growth to continue in that area. Our teams are doing an excellent job of winning. Again, those two regions have this, feedstock energy, advantage, so customers see good return on investment on taking action on capacity expansions or increases, brownfields, in particular in Middle East. So those will continue at a moderate pace. On a negative or sluggish, Europe, China, the rest of Asia Pac, that’s been down. We don’t expect those to change.

So on a net, our assumption for 2026 is continuing to see working through the trough, not deteriorating, stable, but not planning for a strong uptick in the year. But we’re ready for it. If it happens, we’ll take advantage of it, but not built into our guidance right now.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Great. Thank you.

Madison, Conference Call Operator: Thank you. Our next question is coming from Jeff Sprague with Vertical Research.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Hey, Jeff.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Hey, thanks. Good morning, everyone, and congrats, Max and Alex. Exciting news for both of you.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Hey, Jeff.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Hey, just a couple from me. First, just back on the deals. You know, kind of laid out the, you know, the cost reduction, opportunity, and plan. I think there’s also, you know, cost in to get these bedded down and integrated, given that they were, you know, carve-out entities. Could you just maybe speak to that, the interplay between kind of cost to integrate versus cost out? And I would assume those sort of flip as we look into 2027, 2028.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Yeah, Jeff. So, I mean, there is some cost in and, and cost out. On a net basis, it’ll be a, a cost out. The improvements in the margins will increase in 2027, 2028, as a lot of our actions take a few quarters to, to materialize and, and read through to the P&L. You know, I’ve mentioned before, Baker Hughes operated these businesses as, PSI, so it had that, that high-level PSI headquarters structure, which is we’re dissolving, shared services in finance, HR, and IT. So that goes away, replaced by standalone business unit, resources that, that we’re adding. Overall, on a net basis, we expect, once we’re done, to operate leaner and, more profitable with all these ins and outs from a cost standpoint, and then driving improvements on top of that.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: And then just thinking about what Rich shared on Q1, it sounds like—you know, the expenses could be heavy here in Q1. Maybe you could just give us a little bit of color on kind of the expected organic performance in Q1 versus kind of the deal impact in Q1 to get to kind of that relatively flat number?

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: So, legacy Crane organic, you know, will be clearly up in A&E and likely down a bit in PFT in Q1. That would be part of that dynamic, in addition to, you know, the incremental interest expense that we have compared to last year in the first quarter, is sort of, I would say, the big drivers, Jeff.

Speaker 2: There, there’s also within Druck, Panametrics, Reuter-Stokes, there is seasonality, and they tend to be stronger in the second half than the first half, historically.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Okay, great. Understood. And then, maybe just kind of stepping back, just on the deal activity. So a lot of bandwidth still on the balance sheet. It sounds like you feel pretty comfortable with just the internal bandwidth to kind of execute all this. Maybe kind of address that, you know, the ability for the organization to take on something else of size this year, or should we expect maybe sort of smaller bolt-ons as the year is progressing here?

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Yeah, Jeff, so the machine is working, right, at CBS. Our funnel, you know, we’re integrating these four different businesses very well with resources. We have bandwidth to do more, expect to do more in 2026. I can tell you that we’re also building capabilities constantly. We improved our capabilities not only to integrate, but also our strategic resources that are evaluating adjacencies, proactively increasing the potential targets. So we’re only getting stronger on the M&A front, expect to accelerate that going forward. So funnel is strong. Nothing imminent in Q1, but, you know, expect to continue the momentum as we move forward. Plenty of bandwidth on our front.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Great. Thanks. Good luck with everything.

Speaker 2: Thanks, Jeff.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Thanks.

Madison, Conference Call Operator: Thank you. Our next question is coming from Matt Summerville with D.A. Davidson.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Morning, Matt.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Thanks. Morning. A couple questions. First, can you talk about 2026 with respect to the aerospace segment, what you’re expecting from an aftermarket volume standpoint for both OEM and military? And can you also sort of discuss whether there’s any sort of government shutdown impact on any of the more material, military programs for you guys? And then I have a follow-up.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Yeah. Thank you, Matt. I’ll comment on it. Let me walk you through all the assumptions here on Aero and all the segments. So commercial OEM, as you would expect, will continue to be strong, high teens. Military OEM, mid-single digits. Then to your question on aftermarket, on the commercial side, we’re anticipating mid-single digits, and on the military side, mid- to high-single digits. So, you know, continuing momentum on all those fronts. As far as the government shutdown, you know, the only thing that we’ve seen no change in orders or programs or funding, but we did see the flight test of the F-16 program get delayed a few months. So, instead of being complete in January, we expect that to be complete more in the early second quarter.

So that will delay a few months, the start of the shipments for the F-16, but that’s all baked and factored into the guidance we provided. No other real impact right now that we see related to government shutdown.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: So as it pertains to kind of that $30 million, sort of, per year beginning 2026 kind of target you laid out for F-16, is that lower than in 2026? Meaning, is your guidance assuming you don’t fully capture that $30 million, yet there’s an opportunity, albeit over a more compressed time frame, for you to ultimately deliver that? And then can you just clarify for the PSI group of businesses, what sort of your three-year cost synergy target would be, if you could remind us? Thank you.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Yeah. So Matt, on the F-16, yes, we’re in our guidance, we’re thinking more on F-16, although the annual rate is 30, this year, more like in the 20s, low 20s of revenue. There is an opportunity on a more compressed timeline, but in our guidance, we’ve pulled that back a bit due to the few months shifting to the right. Related to the cost synergies, right? So this year, as we’re starting off, we’re moving fast with the actions. The teams are actually impressed me with their ability to embrace the Crane Business System machine, but it takes some time to read through. So if you’re trying to do the math, I would expect like mid-single-digit growth and about 200 basis points of improvement in the margin profile this year.

Then in the coming years, it’ll be a little bit higher than the 200 basis points on a CAGR basis that gets us in that five-year mark to achieve or beat the 10% return on invested capital. So about 200 basis points and then a greater number in the years ahead.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Thanks, Alex.

Madison, Conference Call Operator: ... Thank you. Our next question is coming from Ahmet Nayirci with UBS.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Thanks, operator. Hi, everybody. I wanted to ask about the power, come back to the power generation market for a minute. I think you talked about power gen being 10% of the portfolio inside of PFT, but you’re also adding nuclear exposure with PSI. And obviously, that’s a pretty important place right now. So maybe you can just reset kind of the exposure to total power gen and then also talk about nuclear power gen and how that’s changing.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Yeah. Thank you, Ahmet. So like you mentioned, the traditional power combined cycle power plants in our valve segment, that’s what I’ve mentioned in 25. Significant, as you know, amount of new combined cycle power plants are being built in the United States, so that’s driving our growth. As far as nuclear, as you stated, we’re basically doubling our exposure in the nuclear with Reuter-Stokes. So we have our core business, legacy, Crane Valve Services, and then now Reuter-Stokes, and then combined, we call it Crane Nuclear now. So the growth exposure there is pretty attractive. Think about it as four buckets. You’ve got the restarts of the various nuclear plants, like Holtec or the Crane Clean Energy Center, formerly Three Mile Island, so that will drive upside.

You have the new construction with AP1000 Westinghouse, where we’re very strong, have a very strong position with those reactors in our valve business, and there’s some expected starts in Europe. The third area, really, which comes with Reuter-Stokes, is we also have very good exposure now to the small modular reactors. So, we have a partnership with one of the leaders that’s building the first SMR in Darlington, Canada. That’s starting construction already or soon, one of the reactors, and there’s three more on the plan, depending on how this one goes. This is a boiled water reactors that sensing technology, which is used to gauge the power that’s being generated.

And then, you know, we’re also benefit on this fourth leg with the extension of licenses, right? So five years ago, nuclear plants were decreasing or shutting down, and now we’re seeing licenses being extended 50 years or so, and that requires upgrades and investments. So pretty good tell when that will keep getting stronger as the decade progresses.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Okay, thank you. And just as a follow-up, I wanna revisit that 55% back half, I guess obviously 45% first half, and then you’ve given us the first quarter. It looks like just the way the math works, there’s not a lot of growth year-over-year in 2Q, implied by those comments as well. I don’t know if I’m doing my math wrong, or maybe there’s the hurricane dynamic in there in terms of the comp, but can you just talk about that?

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Yeah, you know, Jason and Allison will catch up with you. But I would say that, yes, on the part of the headwind in Q1 and in Q2, clearly will be the insurance recovery. Those were included in our numbers, $0.16 on the year, and it was probably close to 50/50 in terms of Q2, first half, second half.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Yeah.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: But yeah, but from a growth perspective, you know, I’d rather hold off on commentary on individual quarters from a core growth perspective, frankly.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Yeah

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: ... at this point.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: That’s fair. That’s fair. Can I just ask one quick follow-up, if I don’t mind, just on the synergies for PSI? Because you talked about PFT growth, flat to up low single digits and then 35%-40% incrementals. It doesn’t feel, in that number, there’s a lot of synergies in there and, and, but there’s still, you know, 7-8 points of margin gap. And so maybe this is just a timing thing or maybe it’s conservatism, but it would just be helpful to understand maybe if there’s an opportunity for EBIT and PFT to grow disproportionately from revenue this, in 2026, just given maybe some of that margin gap that you can close, or is that maybe more of a late 2026, 2027 thing?

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Yeah, I would probably err towards what you closed there with on your question. You know, the 30%-35% is on the legacy, and then as we continue to integrate the Druck, Panametrics, Reuter-Stokes, we’ll start to see some of that incremental coming in more so in the second half versus the first half. So that would absolutely be the case for 2026.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Got it. Thank you very much. Appreciate it.

Madison, Conference Call Operator: Thank you. Our next question is coming from Nathan Jones with Stifel.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Good morning, everyone.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Morning.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: I’d like my congratulations to Alex, and unfortunately, Max, I can’t unsee your OnlyFans page.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: I’m not, I’m not taking your request anymore.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: I guess first on the acquisitions, I know you guys didn’t include any revenue synergies in the deal model and in the kind of 10% ROIC target by year five. I’d be, but I also know that you anticipate getting some. So I’d be interested in getting some color around kind of where the most ripe areas for you to generate revenue synergies are, if you can put any kind of financial framework around that of, you know, like, we’ll generate 100 basis points of revenue synergies or 200 or whatever the expectation might be over the next several years.

Understanding that those are a little more squishy and maybe a little harder to track, but just any color you can give us on how you’ll approach that, and if you can give any financial framework around it. Thanks.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: ... Yeah, Nathan, so, let me try to answer the first part of... You’re right, we expect some growth synergies in, in these areas, different for each of these businesses. For example, in Druck, very strong, very strong position on the commercial side, not as much on the military side. So, with our, with our legacy core, A&E, as you know, we have a, an outstanding position there, so there’ll be some synergies, opportunities to grow the businesses, there. Traditional CBS commercial excellence in driving key accounts, channel management, project pursuit, funnel management, et cetera, that will drive as well, just in the core business, improved performance. Reuter-Stokes, incredible position in the power generation.

We’re looking at these adjacencies where they also play in homeland security, on the other industrial applications, where there’s a lot of room for growth with the right focus. So, none of that is baked into our model or our guidance. I’m not yet ready to provide you with the financial number, as much as I would like, on what those growth opportunities would be, but, they’ll be there, and you’ll see them eventually read through in the PNL, Nathan.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Yeah, I think, I think the confidence in, I forget if it was Max’s comments or Alex’s on the, you know, the 4-6, and these businesses taking us towards the higher end of that range. Part of that confidence level comes from these adjacencies and other opportunities that we already see. So, you know, I think we expect to be at that high end or even slightly above it, when you look out, a couple of years.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: This is probably just a housekeeping one. I think it was maybe Jeff earlier on, was talking about integration costs and the impact that might have on your reported numbers. Are you eating those in the reported results, or are they adjusted out?

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Yeah.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: of the reported results?

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Yeah. So I think, in our response to Jeff’s question, you know, clearly, if they are directly associated with the integration, we will be excluding them and keeping them visible for everybody. But there are other investments that we’ll be needing to make, just, you know, as just part of bringing the business to where, you know, in the certain areas where we need to be. So in finance, for example, if I have to hire people or in HR, have to hire people in IT, those are continuing costs of the business, and I can’t exclude those. So, that’s really what we were referring to in the response to Jeff’s question.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Makes sense. And, yeah, I understand. Can you just give us an idea of what the impact to free cash flow will be in 2026 from these expenses, not from the hiring, but from the, you know, costs to achieve synergies? Just to level set that for us. Thanks for taking my questions.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Yeah, I don’t have that off the top of my head here, and, Nathan, so we’ll look to provide more color on that, at the right time. I would expect our free cash flow, though, overall, just stepping back. We had an outstanding performance here in 2025 in, in our business, 102% on an adjusted basis. If you, if we didn’t adjust for it, for certain items, we were at 98%, so it’s not like we pulled a whole heck of a lot out to adjust. Our core business will continue in that 100% range, is our view right now.

In next year, I would say, including the acquisitions, it’ll be, it’ll be down a little bit, but we’ll be within that 90%-100% range, without a doubt, if that helps.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Thanks for taking my questions.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Yep.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Thank you. Our next question is coming from Justin Ages of CJS Securities.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Hi, morning.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Morning, Justin.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Morning.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Morning. Congrats to Max and Alex on this new chapter. A question on the F-16. You know, you noted that some of the wins, additional in the US and international partners. Is that layered on top, or is the international, you know, after the US orders get filled, so maybe not into 2027, will we see, you know, the benefit of the, of the F-16 from international orders?

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Yeah, Justin. So on F-16, the way we think about it is this $30 million annual sales doesn’t really change much. As we get more of these foreign orders, what it does is it extends the whole program length, so it goes out further. That will continue to see the benefit. We will ship first to the United States Air Force and then complement that with foreign military sales.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Okay.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: At that $30 million or so rate per year.

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Maybe just to add, you know, so we have orders that are in excess of that annual rate today. So it’s not like we have to wait for the orders. It’s we have them in backlog today, Justin, so anything incremental to that, just to Alex’s point, extends.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: All right. That’s helpful. And then, you know, you guys have, you know, done a bunch of acquisitions. You talk about your M&A capacity. You’re levered now at, you know, 1.4. Can you, you know, discuss a little more what your target leverage is? You know, what would you be willing to go to if the, you know, the right acquisition is out there?

Rich Maue, Executive Vice President and Chief Financial Officer, Crane Company: Yeah. So with the right acquisition, we don’t have a problem going to 3x, even, you know, strategically, if it made a lot of sense, even going beyond, as long as there was a path to come back down within a pretty short period of time to be, you know, in between, I don’t know, call it 2x-2.5x, something like that, on a-

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: ... from a target perspective, but we have no problem going up as high as three or even above that for the right deal.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: All right, thanks for taking the questions.

Max Mitchell, Chairman, President, and Chief Executive Officer, Crane Company: Thank you.

Madison, Conference Call Operator: Thank you. And our next question is coming from Jordan Lyonnais, with Bank of America.

Max Mitchell, Chairman, President, and Chief Executive Officer, Crane Company: Morning, Jordan.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Hey, good morning. Thanks for taking the question. Congrats, Max and Alex.

Max Mitchell, Chairman, President, and Chief Executive Officer, Crane Company: Thank you.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Thank you.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: On Aero and the name change, how are you thinking about adjacencies or opportunities into IGT or Aero derivatives? And then two, for Aero. On the military side, is there any changes to your thinking on CCAs with the new group of on select on tranche two?

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Can you repeat that last piece of your question?

Max Mitchell, Chairman, President, and Chief Executive Officer, Crane Company: You’re breaking up just a little bit, Jordan. If you can say that again.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Apologies.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Yeah, sorry. Is this better?

Max Mitchell, Chairman, President, and Chief Executive Officer, Crane Company: That’s much better.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Much better. Awesome. On CCAs, has that opportunity changed at all for how you’re thinking about the program with Tranche 2 now coming online with a batch of 9 new contractors? Thanks.

Max Mitchell, Chairman, President, and Chief Executive Officer, Crane Company: And you’re opening as well, because it was. Repeat it again, that’d be great.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Yeah. For Aero and Advanced Tech, now, with the name change, the adjacencies that you’re looking into, are you thinking about opportunities in IGT or aero derivatives?

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: I think on, on the first piece of the questions on the AAT, again, we are exploring many different types of adjacencies. Traditionally, right, our core business has been in, in fluid power control. So expanding beyond that in aerospace, just like we did in, in sensing many, many different avenues, land-based, we’re, we’re thinking about, I, I don’t want to call out specific, adjacencies at this point, but, many, many other adjacencies that complement both military and aerospace, technologies, and also play in, in other high growth markets, at the same... Collaborative combat aircraft?

Max Mitchell, Chairman, President, and Chief Executive Officer, Crane Company: Yeah.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: So-

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Yes.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: I mean, we’re definitely playing in that space. We think we’re very, very well positioned, both with the, I guess, the traditional primes and the new entrants. In fact, in prior quarters, Jordan, you may recall, that we have this great position in one of the new programs, Fury, to call it out, where we expect significant growth in the future. So in this, you know, different cycle, different sales cycle, different type of speed that is required, but all the demonstrators, we have won our position there. And also with the new entrants, we have excellent content, so we feel very, very bullish about that segment and our ability to benefit from that.

Various Analysts, Analysts, Deutsche Bank, Wolfe Research, D.A. Davidson, UBS, Stifel, CJS Securities, Bank of America: Got it. Thanks, and congrats again.

Max Mitchell, Chairman, President, and Chief Executive Officer, Crane Company: Thanks, Jordan.

Madison, Conference Call Operator: Thank you. Once again, if you do have a question, you may press star one on your telephone keypad at this time. Thank you. This concludes the Q&A portion of today’s call. I would now like to turn the floor over to Max Mitchell for closing remarks.

Max Mitchell, Chairman, President, and Chief Executive Officer, Crane Company: Fantastic. Alex, congratulations again.

Alex Alcala, Executive Vice President and Chief Operating Officer, Incoming CEO, Crane Company: Thank you.

Max Mitchell, Chairman, President, and Chief Executive Officer, Crane Company: Thank you all for joining us today. Great call, great team, great performance. There’s a great deal of momentum here at Crane. We delivered an exceptional 2025, and I couldn’t be proud of our teams. We continued to innovate, win critical projects, and execute and deliver exceptional results. We also accelerated and delivered on our M&A efforts, adding differentiated technologies that further strengthen the Crane portfolio. We’re set up for an even stronger 2026, with a leadership transition that will drive a continued focus on transformation, execution, and the relentless pursuit of improvement, relentlessly driving towards perfection while accepting the reality we will always fall short, but that is what pushes us forward, driving change. As a late great performer, Diane Keaton, once said, "What is perfection anyway? It’s the death of creativity." That’s what I think.

While change, on the other hand, is the cornerstone of new ideas. As always, change at Crane is constant, and it remains the catalyst for fresh ideas, strategic evolution, and continued outperformance. With our excellent strategy, exceptional talent, strong momentum, our progress speaks for itself, and truly, there’s no limit to what we will accomplish in 2026 and beyond under Alex’s leadership and the team. Thank you all for your interest in Crane and your time and attention this morning. Have a great day.

Madison, Conference Call Operator: Thank you. This concludes today’s Crane Company fourth quarter 2025 earnings conference call. Please disconnect your line at this time and have a wonderful day.