Crane (CR) 30 Jan 242023 Q4 Earnings call transcript

Greetings. Welcome to the Crane Company Fourth Quarter 2023 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to Jason Feldman, Vice President of Treasury and Investor Relations. Thank you.

begin. may You

and quarter operator, Feldman, everyone. to Welcome President Thank earnings good release fourth Relations. Investor XXXX Treasury Jason conference our of you, and day, call. Vice I'm

morning, our Officer; Chief Executive Maue, Financial we On Rich this have Mitchell, and and President our Vice Executive Max our Officer. Chief President and call

start our call after respond will we off with remarks, We'll to which a few questions. prepared

you in we comments forward-looking a on the call may statements. at the some bottom subsequent release refer report, Just include our statements. We forward-looking and the this make to pertaining language our cautionary earnings reminder, to XX-K filings of and annual also

tables and available on some both during numbers, the comparable reconciled are which at call, accompanying of section. of which at are website and Investor the the press our slide Relations be Also end the presentation, release using in www.craneco.com, non-GAAP to our numbers we'll GAAP

call Now let the turn me Max. over to

Thanks call and good Thank joining today. for morning, you, Jason, everyone. the

Well, Auburn, finishing off California. we in of note fourth year, a started results outstanding the again a $X.XX XXXX on announced very in another in adjusted based quarter, with expectations and truly with & with time outperforming Electronics, historic XXXX. And another Aerospace EPS and we successful after X, impressive positive acquisition January 'XX a delivered quarter, this founded in

system components the military and critical and a is sourced highest and for multistage lubrication designer technology global platforms. commercial Vian lubrication and and aircraft volume manufacturer on with defense pumps aerospace content proprietary sole applications, of

million control significantly a purchase approximately $XX flow to segment, the Vian our had of solid that order of products. mission-critical complementary in $XXX Aerospace XX-month EBITDA. solution highly million, approximately which expanding price is XXXX, approximately million, was of our EBITDA The aerospace we is XXx Vian sales August estimate fluid Through Electronics backlog. and & adjusted with trailing portfolio $X trailing

the of attractive strengthens our most fluid for content the future Combined positioning power positions opportunities auxiliary families AXXX and today strong commercial and Vian and further has platforms and capabilities, with significant engines. F-XX gearboxes with and aircraft. units, on Vian our the XXX on aircraft on management military thermal content existing the

acquisition also decades. ROIC most to where with approximately additional by broadening several see excess include to in this that year the of achieve excluding efforts EPS had But our their deliver In with to case intangible Crane expect opportunities accretion, We we customers of Vian, that acquisitions, of XX% X. are there $X.XX as of marketing relationships for has return. long-term will amortization

We opportunities see across to Chris to in-source machining also business. externally the and and sophisticated highly aerospace acquire components My to personal broader leverage we Vian, currently thanks capabilities Elizabeth Vian's of our in the part Crane. second-generation to this business and stewards as the team family of the Vian the care Crane rest is outstanding now of Vian trusting family, outstanding that

to in to midsized progress our continue move seeing as to as existing to we smaller transactions. and terms M&A opportunities our M&A several of next Continuing execute We committed strategy primarily quarters, where expect actionable become additional over we and forward. funnel, the just accelerated on we

performance, completed interest me levels 'XX. our and well that in the April was our performance clearly started shareholders. our received year Let highlights a transaction flawlessly we which separation, on investor with full few by a based repeat Remember, from was the schedule, year in on stock's executed

disciplined operating leverage XX% Overall, reflecting and very operating growth pricing. X% continuing increase from a drove profit core strong in adjusted operations, sales

beyond. well are record through with reflecting continued this Electronics, decade rest At closed backlog, the Aerospace sales core we to how we we positioned of XX% growth & in year an growth. And even after and delivered sales, increase that all-time the drive

more growth capital high we return made And accelerate Electronics deployment, to and XX.X%, significant Flow margin have growth can points XXX year the higher to and our acquisitions great Process Aerospace at for progress basis businesses complete record as structurally with record. as we base higher-margin Process products. Rich, from demonstrating shift continues than reached and a as a basis better segment new XXX And Technologies, points. And our both our markets in well strengthen growth. here adjusted prior than business Flow and Technologies, end & margins to attractive further

for communicated Building Electronics, by strong Aerospace another off previously of conditions the $X.XX slightly that interest at introducing EPS a by performance, tempered $X.XX, higher to year tax reflecting at is Technologies, along and of 'XX, in and known, strong market range guidance with understood are adjusted expectations driven a growth midpoint. end 'XX expense. we & at EPS rate XX% growth Flow Process That

that Remember for confidence a is high also interest delivery. sight is one year we in on accretion transactions direct have based M&A of line limited This rates. to both current that guidance

activity gradual industrial muted certain continued & assumes industrial in Aerospace guidance and markets improvement the supply chain. Electronics slowing in XXXX with Our

we if we year While we to any the as our assumptions quarters from meet changes demand. in potential unexpected today, thinking successful and is also in the upside this M&A structured X guidance expect. prove there a progresses ahead to as There's those be deployment may conservative, are upside best capital believe we with if are

balance extremely As a acquisition sheet, have strong unconstrained reminder, significant us capacity. providing an we

with X on proven on smaller of & entirely as large growth a record platforms, Flow Process current small and a delivering We targets as acquisitions. strategic of markets in We midsized potential synergies. successfully and we integrating And Electronics our Aerospace Technologies. acquisitions number our global well are have numerous focused over operate potential in track structure, and

we confidence long-term are we $X.XX and outlooks, reflecting And both raising near-term share yesterday our that to announced in dividend our XX% by annually. our per

coolant zero-emission success gains for Electronics, core like cell on In share our fuel pump was the in hydrogen and stories solution awarded I'd the also electric our few segments. as Aerospace quarter to a growth share within a well & fluid powertrain.

our for aircraft, working solutions be turboprop is larger also on initial intended customer jets. the While for regional is application smaller regional to

providers This as us one how technologies decade next-generation of has for example our of positioned applications. is focus of the over emerging another choice last on the

X now demonstrator are secured, quarters power we both platforms provide to vehicle. additional currently prospects. Bradley demonstrator demonstrator MX are seeing programs programs are ground about replacement ago, opportunities. we selection discussed a substantial those for the hybrid high-power, bidirectional our of our And vehicle conversion we pursuing X optimistic we With electric for where number additional

That been either of We provide previously RFPs. of now stages have also we've various also is for that a and programs. or fighter We've in demonstrators selected content sixth-generation aircraft commented collaborative activity accelerating. combat platforms secured X number to

with power brake wide by DXXXeco in Aircraft our submitted from promising And antiskid selected another control range was control across content for system systems. zero-emission robust platform. to Our additional for their on management or proximity our across solutions platform, brake number thermal of solutions Deutsche antiskid regional remains a of conversion a programs process proposals activity and and other turboprop switches

develop At particular our new with Process number million of we first developments. pharmaceutical due as product diaphragm continuing also over Flow oncology and order entrenched facility, EX longer our meet. for We advances processes a pharmaceutical business, this life won our provider a to with win notable and that was this a higher customer temperature decade. to other In great in a therapy incumbent that to companies technology, It's secured we temperatures. higher had Technologies, the order are range higher sign a $X with unable supports a

Bellows evidence Globe In delivered this OEMs, quarters, our large few our this further quoting line Sealed initial quarter. shipments of business, where this during first we've our Valves newly for and orders that for we've our working. hydrogen quarter in the X product on the is equipment discussed space, new market CRYOFLO to expect first business the last in also jacketed in This vacuum strategy we piping, began launched another product cryogenic

we We million business, LNG significant $XX a region. chemical secured the a nearly as for won $X.X manufacturers increase in In order the to for a project our capacity in United new million in States. global facility orders in large China continue new Chemical

position talked in with have the win production a in new repositioning to about India. become and few years, space facility business to more You over our result engineered valve that direct may actions capabilities our last competitive recall is our the of we this check

year and Water had sales business, our Wastewater heading we excellent mid-teens growth driving with another In XXXX. strong into momentum

in also an to applications, XXXX, business. further the product quarter, nearly introduced launched razor our platform our focused market. extension Razor pump we we the pump service line fourth grinder severe have doubled sales of we successful Overall, addressable since grinder expanding During explosion-proof on the our

teams growth our to our recent on daily their My initiatives. with success work all both and hard of thanks as as of array well acquisitions and execution our global for

growth giving And lead should no opportunity and get core our already of capital to in with margins that sales scale confident X% rate and top our resilient XX% to remain for strategic with Day of year the capital we EBITDA sales revenues the portfolio strategic X-year a margins Overall, with XXXX that drive debt, adjusted March vision with each XXXX to out growth leverage deployment growth future is of billion profit strategic today, platform in laid we in decisions. solid and $X substantial the aftermarket, with double-digit a from sales was to to a potential opportunity XX%, long-term operating vision execute great ability Namely, platforms, virtually event. And at above average the growth about on us durable upside from a X% double significant. on from businesses strategy and Investor annual deployment. core our

finished to exciting We're great certainly to looking strong, We XXXX. off in vision forward a equally start, that delivering on an XXXX.

Day additional event XXXX our will longer-term XXXX. details outlook at our for and scheduled We next on provide tentatively May XX, Investor

turn specifics call quarter Rich? details more guidance. to Rich me our on the and now on the over for more some Let

morning, and Thank you, good Max, everyone.

with quarter, XX% core higher demonstrating growth. results On drove growth a continuing and basis, driving adjusted strong operations, profit XX% on adjusted operating X% sales profit in consistent year full core a from increase sales operating accelerating growth operating growth sales. X% Another core leverage

businesses to persistent performance the impact that broader industry. despite some continue and excellent Continued supply challenges aerospace chain defense across and all

start our the I'll presentation, that items, Getting details, segment I as on overall in off to XXXX press of XXXX, for and release will fourth excluding P&L. special each for XXXX into comment slide quarter segment comments compare then and outlook and will with our our outlined the

conditions, strong as Starting the our XXXX our growth for change as in position. Aerospace very No the full and quarter & in as remain both rate in backlog end with Electronics. well market reflected which year

is side high more requires that on aftermarket remained very to This On commercial of the activity and demand strong, deliveries. what the aging aircraft pre-COVID also parts low due traffic demand aircraft basically and and fleet can service an continues now for air And exceed to limitations results the levels. deliver. at aircraft business, retirements in XXXX new with global OEMs air traffic

a On many solid of the see both positioned procurement reinforcing continue industrial most with defense defense the extremely of heightened we we technologies the broader and side, Across interest global on and defense, the today. well, growth. significant continued focus base seeing highest uncertainty and spending our are given commercial to rates

strong high with Overall, demand million in a environment level signs slowing year-over-year, Even backlog That increased XX% growth, sales quarter sales year. reflected demand $XXX was fourth increase of just last compared X% sequentially. our with solid of to million, this increasing no with rates, with of $XXX XX% a of anytime growth soon.

aftermarket commercial XX% military aftermarket military. In up quarter, XX% XX%. aftermarket with commercial up OE up growth XX%, and sales in the quarter, with XX% and total in X% the increased increased in sales

gradual While over with constrained, supply the very continue last demand remain we months. environment improvement few the strong, to chain remains

is employee employee components and of this just broader from deliveries also on-time to experience raw supplier not but quarter, and infrastructure, last labor only discussed we availability, in the levels. supply materials, suppliers not related from but As spanning terms turnover

new to related of shift sense. shortages overall expediting our makes some well last and due to second issues and quarter, availability with suppliers additional evolve, improved. continue component as chain shipments costs supply it where qualifying specific to Areas we sources adding with costs commentary has associated as Consistent incurred modestly although have

offset XX.X% of last from XX.X% largely margins productivity. mentioned, slightly declined benefits segment supply and higher by costs engineering expense Adjusted and volumes year, primarily reflecting from higher the slightly chain-related I

guidance most On of $XXX growth of million $XXX growth full of basis, exceeded recent XX% sales XX% our our most guidance operating above adjusted was recent year a profit of million. and core

X% expect we based it with our a in from growth delivering to the $XX to visibility materially core XXXX, doesn't sales $XX clear XX% of million year. ahead it on it growth That and Looking X%, XX% of expected have the course range, million change assumes Vian XX.X% and the we benefit current to current the long-term X.X% core supply CAGR demand growth that the acquisition. the that is reflects sales to and chain, sales our state sales unmet of of over above

XXX We to expect growth. XX.X%, core points margins to reflecting on basis increase leverage XX%

at regarding solid to it and of that will supply end our XX%, inefficiencies very today is the While commentary costs toward improve consistent with XX% targeted lower and range, quarter and gradually. last our chain XX%

confident in margin technology, that issues position manage our the us chain we supply are are all years being strong ahead. investments on still move and to expediting expansion we drive for further to pricing assertive to staffing in continuing well as However, in actions factories and we very have the new continuing believe make leverage taking forward, appropriately and the where productivity, we now, adjusting significant we opportunities

lower acquisition, mathematically margin and Total because sales the leverage leverage to at profit year. is due acquired Vian first the XX% only their level slightly operating in than that's always the

cadence a full sales From in second and expected the likely sequentially perspective, year, with given should strongest quarters mix. increase third the margins across

and positioned markets, to we are see to even pushouts The confined general did as in nonresidential Technologies, communicated outgrow to project and of industrial signs slowing the America, few largely we wins nice some as again last very quarters. messaged remains project Flow European we some demand softness in see construction quarter. chemical, North but as well Process our well continue to markets the At for though continue previously

remained inventory than stronger and Generally, as MRO projects on activity continue focus cost levels. to users end reduction significantly have

to many As a previous activity and process we the look given playing slowing cycles, specific reminder, earlier. others our as XXXX broader prior you if quarters few typically in before in tend But a cycles, exposures, markets. few we at see also product quarters a recover displayed

outgrow our namely, share within We gaining continue what's to end focus control, on markets. to our

expected While fourth share and and gains again were quarter were change quarter the than our the than better market they key our orders our outlook. in third wins by driven outlook is in unchanged, to rather as again, fundamental a market project

later negative XXXX likely still a first positive orders we inflection quarters We this the see before for few of year. expect

favorable of a In $XXX basis volumes benefit reflecting slightly with foreign by the Adjusted X% benefit sales last quarter itself, we strong and X% value of productivity offset million, unfavorable XX% exchange. from down core offset pricing a primarily and up more operating but and delivered than points growth acquisition mix. XX gains, X% from year, partially margins lower increased by

foreign continues lead and backlog X%. X%. impact exchange FX-neutral shortening Compared decline the third the core quarter, part year-over-year to year, FX-neutral with increased increased in that core X%, orders the neutral X%, natural improve. Remember backlog orders the supply of to core backlog down FX-neutral times the compared as prior chain reflects decreased Sequentially, to

and a we quarter, approximately sales commentary weaker and For X.X% with offsetting gains market, pricing should add core approximately our to XXXX, share sales. continued Baum the segment last with consistent expect flat acquisition

approximately slightly record our productivity margins offset from XXXX, dilution XX% to by in with acquisition, We following the increase year slight Baum pricing. and to expect

markets This challenging the is an considering more expected in outstanding result XXXX. end

product context, in introductions growth margin environment assertive For XX.X%. appropriately structural is from in business the COVID, before in disciplined contribution significant end remember inflationary and to just accretive the margins and new our the function step higher The that higher product margins and XXXX, that markets, reflects pricing were differentiation. and both shifts given change

XXXX. level timing loaded cadence we a expect more be From perspective, to far XXXX or than

similar the first expect for strongest And rate, likely fourth XXXX quarter guidance the to quarter quarter year the be overall. is sales the margins full to third year. above exit overall, We slightly with

sales last decreased Engineered compared million $XX X% of At Materials, year. to

adjusted margins operating volumes. As decreased to points expected, on XXX profit basis X.X% the lower

cycle. year sales declined full RV driven basis, a core XX% On the by

However, adjusted to XX.X%, market the really impressive challenges year. given margins increased last basis XX performance end points

RV to as XXXX, slowest. For both -- seasonality sales with flat quarter market compared expect a seasonally, XXXX, fourth with margins to normal stabilizes, quarterly the the be we cadence and

that the Moving given million, separation on year quarter. to the flow free fourth flow to related results. to is difficult strong first free the $XXX remember company total was following In accounting cash full at interpret adjusted the quarter, cash

frame the is up some due supply the with. chain acquisition. fund on million, on our to cash some beginning Those $XXX headwinds, However, inefficiencies At January, in drew understandable performance the with Vian fourth solid end revolving would the headwinds $XXX only will $XXX dealing that quarter everyone I the debt the to as with of hand. are after course, and quarter, of modest the of end credit industry related of reverse the in timing million at facility was fourth of we future. Total million

with as to than financial We as $X and XXXX. capacity substantial have continue much billion M&A reaching billion by today $X more flexibility, in

this While is strategy unchanged. more than historically, flexibility had financial allocation is have we our capital

We strict M&A growth, will prioritizing deploy to with always capital financial investments returns our and internal strategic discipline by we employed, and have shareholders. followed same for that the

our Now turning guidance. XXXX to

Max As growth adjusted $X.XX XX% to of growth growth EPS will segment is from the X% with guidance range mentioned, XXXX to assumes initial acquisitions, that a operating $X.XX, drive of EPS reflecting in X% in X%, XX% X% our core the benefit to growth profit. X% midpoint. adjusted total Guidance at

net XXXX. Operator, better we in shares take our million, Additional corporate at years other but forward Crane, and XX.X% incredible free our press and slide tax interest conversion. Hey, nonoperating key $XXX are of of expense rate $XX over presentation first details momentum million, board looking our of million. across it my to of And we $XX of our has primarily diluted included include: guidance XX% of $XX ready assumptions expect to million, of of now are expense approximately release lot million reflecting on website, $XXX cash question. a the expense, felt to never XX a the in flow cash continued free and

first the come line from Damian Our Instructions] questions of [Operator with UBS. Karas

the on quarter. Congrats

Thank you.

Damian. you, Thank

bet. we margins. start the Maybe You could on A&E

presuming get get before Are You're just just of you can those than mentioned that actually conditions know of to costs related that you you're bridge sales additional not given getting kind some XXXX, I abate bit there? capturing shipping. maybe some expedited expect, and little we'd you better? less worse in help the bit incremental Rich, strength. chain these little supply a costs us of a some they that

Yes.

do to some we headwinds It's we those too expected as we last improvement, think our the of see say. far guidance issued what we when a I off would expect gradual itself, the was I abate margins, but forward. leverage not bit lower, a move quarter. quarter revised In

to supply is year, We're and that chain back pretty guiding are XX% full those XX%, continuing have at on supply to we pretty at considering the see we above and year leverage OP, impressive Damian. constraints. XX% leveraged from headwinds and overall performance environment confidence, a to we overall, we're next which the So in chain some those perspective. Look, impressive

we of path. And to impacted improvement that or here all relates of as gradual second in that seen have XXXX. those bit us the little a throughout the So supply that costs in really it see again, half, we've chain constraints

over switching And Got PFT. maybe it. then to

quarter, down, You've up quarters rates. but the few last order actually are showing really, organic stability one or seen only modestly orders

longer orders to like on some just up maybe long comments for help of cycle project on a could that presuming the like us versus But short-cycle the are sense just you us much I'm your short give the if still how how the the next quarters, like to you it base. could So understand in cycle, peak? forward, that of but off kind thinking cycles kind down And about the cycle short you're improve. maybe of have, that kind is couple starts Is of the fact, you're of it? then thinking volumes stable, come sounds going

yes, Look, of we're terms offset number again. in we outlined underlying we we the been they've saw see still, won of on servicing trends chemical business, quarter a Yes. that as in we Max and XXXX. some -- the communicating -- that the the portion weaker cost we've we companies projects And see had demand that of months reduction X MRO happening of are of most focused on through right that move now the the first short-cycle where of

is trend continuing. that So

you're U.S. So what there but the uplift, and But seeing offsetting shortfall. MRO, in was the in Europe, declines underlying as been projects a bit the also that we're in really have demand mainly seeing what

new and forth, So the China so facility, the in project win. LNG the projects pharmaceutical

offsetting demand these great, very underlying X So as seeing what months. move first through great and are a wins strategic, as are they we but shortfall fundamental the we're

consistent, still thought that trend seeing. last quarter, inflection quite just an Damian, of the as it in We the going QX, we with QX We being reached we're the rate -- very 'XX. clear declined that we to had into said Still point the by hasn't 'XX. trend, trough, see

all the our underlying forecast supports in data still guidance. here our So

kind of short-cycle the Okay. But any how volumes ballpark on peak earlier much number the from year? last are down

mean probably do breakout know you that on that digit, it double I -- low will of be short just portion. It's off total, the cycle, in the probably hand.

Damian. that, like Something

next Our Deuschle Scott come the from of Bank. Deutsche line with questions

how the I sorry quarter between Rich, missed commercial aftermarket? A&E and decompose aftermarket fourth in this, does aftermarket then growth at defense the if but

up aftermarket and was Commercial XX%. about defense XX% Yes. up was

Wow.

of just growth for A&E aero and between 'XX Rich, at there say XX% core that defense, end kind markets the that for then, how you in or between and can outlook different XXXX, any And the commercial Okay. bifurcates split XX%?

commercial side, in Day, a the the you looking more in Scott. but Investor high-level OE detail We'll Military if maybe low-double-digit. the numbers, to to something we just would it, all area, be And at Military then up like double-digit helps. lot aftermarket we're will firmly low-single-digit will provide the, call mid-teens double Sure, digit, going be just in the that, maybe at given is area. I that that saw to our Commercial some there be flattish, year. definitely momentum on give say,

can points conservatism more to the a what XX way, expand there, bit why on would Yes. detail go or you but Okay. as switching I yourself basis And different outlook you PFT. that...? only the in protecting from margin to with it margins are appreciate ask maybe 'XX, to in a the then scenario

Yes. term, And I dilutive that be right, be. be. it it slightly will mix, to remember, if growth. got is won't an the on mean margins. to But initially year, organic We've it's flat acquisition going Longer next the about terms think for commentary what us. you is couple over in for into been 'XX, margin which chemical, be what's good of and us expect it's we business quarters of to right, a softest past softest the

So there's going to be likely unfavorable mix.

would associated just the supplement year I as Yes, with pricing with well. next

job inflation, our are the continued in -- of price taken continued all view, we a fantastic us. that So to given right? in teams would that together are So volumes, what doing good which for you'd flat performance, margin that a the the pretty doing obviously way drives print continuing drive offset expect

Right.

And for question, Rich, cadence on anything then Okay. last just, the for PFT margins year?

it's in to of will it QX. little a bit as might fairly strength little at maybe level little, shy There going now, right be we're through a lower loaded in or fairly But be QX. it, be year. loaded the Yes, bit looking level

CJS of come Our line questions from next Ages the Justin with Securities.

on can to were give us going just going know out. mentioned one, critical that's basically? just that shipments when it First expect update Can you you we to some on I turn, mass, inflect, when reach an hydrogen.

successful. spot. was we looked on right -- an That's question mean, up. about acquisition had the inflection. a ground hydrogen in our as not we're I and We at years clearly this market. we're ago space, think in sweet good the is This business This set sights our we building up

we the capability So piping. core balance have in

we as provide a core, large forward. the by this we And Investor certainly numbers this very we're clearly, thought as easily towards. point critical using too, also some are But we're about I internally 'XX, mass. color -- building said more M&A right inflection seeing Day, that the switching at [indiscernible]. business. think at Justin. we hadn't looking some I We'll now see on But this some on move journey, XXXX, We're we by we're

Perfect. focusing an No, been Can in remarks then Baum prepared you update? see. A&E been think on mentioned midsize. on PFT? Vian close? in that's just And the those has are you I see, us any helpful. nice processes? And Are or give to about in acquisitions, to nice Are And you you currently involved has

I'd say in there's normal. is a both, activity which lot of

So very first of quarters is But of our bodes solid activity. for It couple funnel We'll here lot activity. see. a well full. potentially. There's the

from of with Our Mariana of next America. Perez questions come Mora the line Bank

So is mid-teens growth And a to Electronics, thinking like how the to MAX in about on my Could versus XXX this production? driving and question commercial how on markets. in Aerospace this a wide-body end describe & are like please like you Scott's is you much narrow-body follow-up OE? as for follow-up the phrase that,

way platforms, think I wide-body, the cetera. overall, So major profile, most on whether it's our narrow-body, excellent about would revenue et we have an mix of content

content industry, the have wide-body driving that's but engine we the as significant is on do well. aircraft certainly narrow-body So

again, -- our isn't the most, just got or to a following aspect We're the suggest one our there So rates. importance business we've guidance of unique that going versus build on, would we're and another. content

all, not I it's can add as way wouldn't any as and assisting publicly good industry. would we're first we of here be we that continues this On say to move anything the the to look news uncovered, difficult and not times for in forward concern the XXX, all we that, I share for reading Boeing, forward.

have for thinking impact, are relates would and current risk, about as As the no I way freeze this guide rates planned to that say the environment. has it we current our the

Crane have reiterate standpoint, from would So our just and high a guidance I confidence.

And go is ahead. there any way [indiscernible] share you -- sorry, could

market, specific one add rate well. regional, expect, as given thing nicely do uplook in our is I'd say going just growth to next we was is No, also to that pretty I in contributing a the big year, which mix the

shipset us for don't the be have? to I please measure much how And to impact particularly able metric an any know, MAX, like, could on content share could or you of that

years, rates don't for in say, on obviously, and rest But XXXX, what of business the X% range. middle it sales year to XXX, the probably next in OE what's XX% bit of a that it's and in going somewhere XXX. specific of generally, We vicinity of XXXX, depends side Yes. shipset the shipment below content. the provide on only, on I'd the and most The little

of deals from in are last And that is competitive one M&A. Where you on seeing And the how you're pursuing? me pricing? terms are

Yes. environment. competitive very It's still a

seen say We the in X too much changes big would that last haven't regard. real in I that over we've months easing pricing. seen no

Matt Our of next the questions line Summerville D.A. Davidson. with come from

bridge When A&E. top on got follow-ups to you the is you line margins 'XX? XXXX below. was where sight still it at then a do 'XX, of almost A&E circa I kind follow-up. longer-term a couple to of you of to a Just pre-COVID And pre-COVID those equivalent look back comfortably And Can in a to level have yet have in to help that business business where are line the of profitability? it

We doubt. see that a absolutely back to ability without Yes. those levels to margin get

aren't volumes. terms from back a while in XXXX, this demand lot the what say of fully seeing volumes, In -- of would a terms yet that comparison year of also I we're to

Flow as this accretive priced a Technologies seen offset year been of not to in in as has you've inflation, seen we've what the lot Process So our progress business.

of volume a margin a that profile. bit overall So mix price the impacts little there's

back, end a profile levels. come higher volumes range, back to So that and that that's that that to leverage when do XX% margin those will see yield will we those XX% at of

talk talk guys. you a all about timing 'XX, to you for really side But part sort more of XXXXs, Crane? out? it's do to some as you the see What I for see probably the current begin that when start programmatic-driven of you start follow-up, not about can the you rev material, of significant that looking then to the realize And ramp on of military -- of your business? the can

low a ramping a end ship upgrade. 'XX, 'XX, that are we mean Yes. yes. mainly bit sizable just see without doubt, Those AESA initial 'XX. the that production, start then sort And are I 'XX. there's will to F-XX wins but the it of but of control into rate 'XX, radars. Those should pretty in might 'XX, at be little the some brake

of line Stifel. with the from Jones come questions Nathan next Our

up us have 'XX ramp-ups and can quantitative much Maybe and platforms, that those might how revenue? on just measures question. might how following impact you give they defense and there on big 'XX to the Is they any be

Well, defense in to consistent be we've talked on power. the past

sizing got we've we of delivering TPY-X, LTAMDS, -- winning existing on defense commercial We're FXXX, radar, a $XX and years, course bit F-XX, of today, those power, are... a foreign platform this that the the the further over that of Landing described, Sentinel, as upside. we're with range. we've well. defense. the As AESA particular, X wins $XX 'XX, little in business, 'XX, that opportunities all military year in That's incredible with have million new million

$XXX stepping those XXXX? from platforms million-plus up in kinds Maybe of

probably and 'XX, on that's the a on side. that's little all Not high

So we'll work towards that goal.

right? those average. on their the the multiyear mentioned is of about think is that of that and you duration exciting way number thing think So programs about those as I are programs the to well, these each just that size

starting have. extending in out. And these we for that, to than and are knowledge, else replacing just actually that aren't everybody's are programs larger all frame 'XX, reiterate that 'XX anything Some time

exciting all about incremental. they're programs. thing the That's the So

one... In

on, we And is the excited then, in script of towards XXXX, we're on demonstrators painted course, that this as so about all That's when the content. picture we're look also well. winning you that the why

you than targeted the points of I margins Can forward improving work Street, on you in mentioned you margin major got the PFT on the talk margins, had I me XXX Max, lately, and you you XXXX. think, And that from basis to XXX expansion Analyst is what At basis over led years. suddenly of recognizing that few year, planned? guys next that Day points about a that earlier have the path then for because it's what to Wall here? you And those done lot improvement factors margin last

Okay.

Yes.

that to are growing elements a cost in going higher the going are higher products, there. our to new areas So have without is end predecessor major for particular, markets question, factor discipline, Launching than that be in us. products major price be margin

of in pure margin that products that associated profile those So profile. carries margin just mix a of the combination plus the areas those

you ago, benefits We repositioning reading recall, or years also might few several through. initiative executed and a years also, we a on those ago

the with development have that reiterate, with about we and think product historically, components. Again, been then just to the your moving higher-end margin should new forward, things So But -- expansion question, markets would when see continued you that with disciplined associated to to that continue and growth pricing. those we're answer pursuing.

as on As inorganically we capital that's growth And think while we about and here just is to flat well. range that to growth. as opposed moving forward, team we this XX% focusing Nathan, it's accelerating historically, as in that have deploy improvement, continue and out margin where leveraging grow it's

we strategic of going not fun never challenges just before. of of focus development, now, is supply so right post excitement and just and our globally. that's having teams forward. The mean teams key I across team we've as energized the the But Crane so a some forth, I'm like the separation, are lot where positioned, without So much having that fun, before. new so we're we the chain be to move have our product proud mentioned we're

line with of Research Our next the comes Jeffrey from question Sprague Partners. Vertical

China. And Just and me, light you seems between calls apologize, But But happening more I then thinking, key to of is one you seeing We've trends progress you U.S. visibility which detail. year, if for demand, if a more as too. if are cover you're just But again, morning. I a to China we you for it others. heard petrochemicals. other elaborate CapEx just bit percolate China, you a thing. this in People in a interesting. that what touched a it on on that is heard shed through verticals broadly, just in little that's know I'm PFT, and We've I about little did reshoring think in more kind could the be starting and apologize on? anything the the maybe other the couple can bouncing I'm on that quick there wondering of from

markets. End

the But bit well. little on clearly as Yes. touch China a and comments is seeing we're slowing chemical. European in I'll maybe that hit just market maybe, broader Jeff, where most the of

China, think better in up and in I with we've although said they've delays what North both past, are held still pushouts expected. than and America project the that's consistent recurring

are localization while Asia China the weak. right side net accelerate are wins. with some would I we largely chemical is to and projects worsening forth. as China, of modestly, Europe pushouts, on of in importer terms Strength seeing of related pretty again, our localization. like remains that some there to remains, now, a to in trying process, say, related in So pharmaceuticals, but and you remarks, mentioned that. in and chemicals, I worst being It's my prepared so MRO know,

I that localization or playing Well general a I it's wouldn't us not is anticipated. specifically major a us, on Crane would to No China generally for that China, major say a out solid growth in but call China, out. stronger. say trend. us, shift for call trend, I kind But would anything our we for shift are or as nothing efforts of just standpoint. out from little

you. Thank

any floor Max for We closing the would our the session. now remarks. turn Mitchell question-and-answer over of I to end to back have reached like

year delivering in and core shareholder Super. value. 'XX, while execution Thank executing Wow, what separation Crane, on our you. on growth a on across strategic driving fantastic

exciting an Another for XXXX. great quarter and outlook

with as proud incredibly my Crane of complete XXth I As the am transformation. and I year XX CEO, year portfolio

over Our growth And returns acceleration driven expansion, we delivering organic acquisitions. capital continued that higher on growth, are are past entire energized in complemented and deployment decades, more by team higher predictable. now margin separation, value-creating and further we has the of

forward in that shareholder Munger logical that you notion "Our consistent simple lifetime, thing, we a great as your and as a promptly As prepared, of tends continue to some all we a on the returns. doing our time your great will the said, occasions lifetime." We will to scale results focus driving financial experience interest on being continue few act Have to logically to in this Thank execute and and dramatically attention Crane with scale, long-held for late, in move simply often morning. in improve confirm and and day. Charlie a

Thank you. conclude This teleconference. does today's

of may you at your day. your You this your lines rest Thank the participation, for and time. disconnect enjoy