Crane Company (CR) Stock Forecast & Price Target

Crane experienced a robust performance in 2024, generating approximately $2.1 billion in revenue, with total organic sales increasing by 5.6% year-over-year, highlighting solid demand across its aerospace and electronics segment and process flow technologies. The company reported a significant organic backlog growth of 16% and projected organic sales growth for 2025 in the high-single to low-double digits, driven largely by positive trends in commercial and defense activities. Fundamental strengths such as the effective Crane Business System, which supports above-market organic growth and robust margins, further bolster the outlook for long-term double-digit organic earnings growth, supplemented by expected mid-single-digit cash earnings growth from strategic acquisitions.

Crane has reported a quarter-end backlog of $1.44 billion, showing a modest year-over-year (Y/Y) growth of 17%, but with a concerning 2% decrease within the process flow technologies (PFT) segment Y/Y, reflecting potential headwinds. The outlook for 2025 indicates that organic sales are projected to fall at the lower end of expectations, compounded by expectations of high single-digit declines in PFT volume due to inflation and pricing pressures. Additionally, challenges such as supply chain disruptions, raw material input cost inflation, and the uncertain production ramp-up of key aerospace customers raise significant concerns regarding Crane's ability to maintain profitability and growth in the near future.