Financial Analysis

Acquisitions Druck, Panametrics and Reuter-Stokes On June 6, 2025, the Company entered into a definitive Purchase Agreement with the Baker Hughes Company for the acquisition of Druck, Panametrics and Reuter-Stokes. Collectively, they are leading providers of sensor-based technologies for aerospace, nuclear and process industries. The Company completed the acquisition on January 1, 2026, for $1,179.2 million, net of cash acquired of $40.6 million, subject to post-closing adjustments. The Druck brand has been integrated into our Aerospace & Advanced Technologies segment. The Panametrics and Reuter-Stokes brands have been integrated into our Process Flow Technologies segment. The amount allocated to goodwill reflects the expected synergies related to product line simplification, commercial enhancements, supply chain manufacturing productivity and other cost synergies. The following amounts represent the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed. The final determination of the fair value of certain assets and liabilities will be completed within the one-year measurement period as required by ASC 805. We have not yet completed our evaluation and determination of certain assets acquired and liabilities assumed. Any potential adjustments made could be material in relation to the preliminary values presented below: Net assets acquired ( in millions ) Total current assets $ 243.7 Property, plant and equipment 71.9 Other ass …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Environmental Matters For environmental matters, we record a liability for estimated remediation costs when it is probable that we will be responsible for such costs and they can be reasonably estimated. Generally, third party specialists assist in the estimation of remediation costs. The environmental remediation liability as of June 30, 2026 is substantially related to the former manufacturing site in Goodyear, Arizona (the Goodyear Site) discussed below. On August 12, 2022, Crane Holdings, Co., Crane Company, a then wholly-owned subsidiary of Crane Holdings, Co., and Redco Corporation (f/k/a Crane Co. (Redco) a then wholly-owned subsidiary of Crane Company that held liabilities including asbestos liabilities and related insurance assets, entered into a Stock Purchase Agreement (the Redco Purchase Agreement) with Spruce Lake Liability Management Holdco LLC (Redco Buyer), an unrelated third party long-term liability management company specializing in the acquisition and management of legacy corporate liabilities, whereby Crane Company transferred to Redco Buyer all of the issued and outstanding shares of Redco (the Redco Sale). Pursuant to the terms of the Redco Purchase Agreement, Crane Company and Redco Buyer will each indemnify the other for breaches of representations and warranties, breaches of covenants and obligations and certain liabilities, subject to the terms of the Redco Purchase Agreement. Such covenants and obligations include obli …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Financing Our long-term debt consisted of the following: (in millions) June 30, 2026 December 31, 2025 Term Facility $ 11.3 $ Total short-term borrowings $ 11.3 $ Term Facility (a) $ 887.1 $ 898.2 Revolving Facility 200.0 250.0 Total long-term debt $ 1,087.1 $ 1,148.2 (a) Debt issuance costs totaled $1.6 million and $1.8 million as of June 30, 2026 and as of December 31, 2025, and have been netted against the aggregate principal amount. On September 30, 2025, Crane Company entered into a credit agreement (the Credit Agreement), by and among the Company, as borrower, CR Holdings, C.V., a subsidiary of the Company, as a subsidiary borrower, the lenders and issuing banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent. The Credit Agreement provides for a senior unsecured delayed draw term loan facility in an aggregate principal amount of $900 million (the Term Facility), which matures on September 30, 2030, and a senior unsecured revolving facility in an aggregate committed amount of $900 million (the Revolving Facility), which also matures on September 30, 2030. On December 29, 2025, the Company borrowed $900 million under the Term Facility and an additional $250 million under the Revolving Facility. The borrowings under the Term Facility and Revolving Facility were used, along with cash on-hand, to fund the consummation of the Companys January 2026 acquisitions of Druck, Panametrics, Reuter-Stokes, and Optek. On February 11, 2026, the Company borrowed $50 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets Our business acquisitions have typically resulted in the recognition of goodwill and other intangible assets. We follow the provisions under ASC Topic 350, Intangibles Goodwill and Other as it relates to the accounting for goodwill in our condensed consolidated financial statements. These provisions require that we, on at least an annual basis, evaluate the fair value of the reporting units to which goodwill is assigned and attributed and compare that fair value to the carrying value of the reporting unit to determine if an impairment has occurred. We perform our annual impairment testing during the fourth quarter. Impairment testing takes place more often than annually if events or circumstances indicate a change in status that would indicate a potential impairment. We believe that there have been no events or circumstances which would more likely than not reduce the fair value for our reporting units below its carrying value. A reporting unit is an operating segment unless discrete financial information is prepared and reviewed by segment management for businesses one level below that operating segment (a component), in which case the component would be the reporting unit. As of June 30, 2026, we had three reporting units. Intangibles with indefinite useful lives, consisting of trade names, are tested annually for impairment, or when events or changes in circumstances indicate the potential for impairment. If the carrying amount of an indefini …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Effective Tax Rates Our quarterly provision for income taxes is measured using an annual effective tax rate, adjusted for discrete items within the periods presented. Our effective tax rates are as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Effective Tax Rate 25.1% 23.2% 23.5% 22.0% Our effective tax rate for the three months and six months ended June 30, 2026 is higher than the prior years comparable period, primarily due to an increase in non-U.S. taxes and lower benefit related to share-based compensation. Our effective tax rate for the three months and six months ended June 30, 2026 is higher than the statutory U.S. federal tax rate of 21%, primarily due to earnings in jurisdictions with statutory tax rates higher than the United States, expenses that are statutorily non-deductible for income tax purposes and the impact of U.S. state taxes, partially offset by excess share-based compensation benefits, tax credit utilization, and the statutory U.S. deduction related to our non-U.S. subsidiaries income. As of June 30, 2026 and December 31, 2025, the total amount of gross unrecognized tax benefits, excluding interest and penalties, was $11.1 million and $10.3 million, respectively. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements - Not Yet Adopted as of June 30, 2026 In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). The amendment requires new financial statement disclosures to provide disaggregated information for certain types of expenses, including purchases of inventory, employee compensation, depreciation, and amortization in commonly presented expense captions such as cost of revenue and selling, general and administrative expenses. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. Upon adoption, ASU 2024-03 is required to be applied on a prospective basis while retrospective application is permitted. We are currently evaluating this guidance to determine the impact on our disclosures. In September 2025, the FASB issued ASU 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update improve the operability of the guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods. This update is effective for annual periods beginni …

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Defined Benefit and Postretirement Benefits For all plans, the components of net periodic loss (benefit) for the three months ended June 30, 2026 and 2025 are as follows: Pension Postretirement (in millions) 2026 2025 2026 2025 Service cost $ 0.8 $ 0.9 $ $ Interest cost 8.1 8.6 0.1 Expected return on plan assets (10.9) (11.1) Amortization of prior service cost 0.2 0.2 Amortization of net loss (gain) 3.1 3.5 (0.1) (0.1) Net periodic loss (benefit) $ 1.3 $ 2.1 $ (0.1) $ For all plans, the components of net periodic loss (benefit) for the six months ended June 30, 2026 and 2025 are as follows: Pension Postretirement (in millions) 2026 2025 2026 2025 Service cost $ 1.6 $ 1.7 $ $ Interest cost 16.3 17.2 0.1 0.1 Expected return on plan assets (21.9) (22.1) Amortization of prior service cost 0.4 0.4 Amortization of net loss (gain) 6.2 7.0 (0.2) (0.2) Net periodic loss (benefit) $ 2.6 $ 4.2 $ (0.1) $ (0.1) The components of net periodic benefit, other than the service cost component, are included in Miscellaneous (expense) income, net in our Condensed Consolidated Statements of Operations. Service cost is recorded within Cost of sales and Engineering, selling, and administrative in our Condensed Consolidated Statements of Operations. We expect to contribute the following to our pension and postretirement plans: (in millions) Pension Postretirement Expected contributions in 2026 $ 2.0 $ 0.4 Amounts contributed during the six months ended June 30, 2026 $ 0.7 $ 0.3 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Disaggregation of Revenues The following table presents net sales disaggregated by product line for each segment: Three Months Ended Six Months Ended June June (in millions) 2026 2025 2026 2025 Aerospace & Advanced Technologies Commercial Original Equipment $ 128.4 $ 96.6 $ 255.0 $ 190.6 Military Original Equipment 84.1 72.7 168.7 144.5 Commercial Aftermarket Products 62.6 57.2 115.6 117.6 Military Aftermarket Products 34.0 31.7 63.1 54.4 Other 30.0 55.0 Total Aerospace & Advanced Technologies $ 339.1 $ 258.2 $ 657.4 $ 507.1 Process Flow Technologies Process Valves and Related Products $ 307.6 $ 241.2 $ 602.8 $ 474.7 Commercial Valves 35.1 37.1 76.1 74.5 Pumps and Systems 42.9 40.7 84.8 78.5 Total Process Flow Technologies $ 385.6 $ 319.0 $ 763.7 $ 627.7 Net Sales $ 724.7 $ 577.2 $ 1,421.1 $ 1,134.8 Remaining Performance Obligations The transaction price allocated to remaining performance obligations represents the transaction price of firm orders which have not yet been fulfilled, which we also refer to as total backlog. As of June 30, 2026, total backlog was $1,887.3 million. We expect to recognize approximately 58% of our remaining performance obligations as revenue in 2026, an additional 33% in 2027 and the balance thereafter. Contract Assets and Contract Liabilities Contract assets represent unbilled amounts that typically arise from contracts for customized products or contracts for products sold directly to the U.S. government or indirectly to the U.S. …

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Segment Results In accordance with ASC Topic 280, Segment Reporting, for purposes of segment performance measurement, we do not allocate to the business segments items that are of a non-operating nature, including charges which occur from time to time related to our legacy environmental liabilities, as such liabilities are not related to current business activities; or corporate organizational and functional expenses of a governance nature. Corporate expenses consist of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs. Assets of the business segments exclude general corporate assets, which principally consist of cash and cash equivalents, deferred tax assets, certain property, plant and equipment, and certain other assets. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in our Annual Report on Form 10-K for the year ended December 31, 2025. We account for intersegment sales and transfers as if the sales or transfers were to third parties at current market prices. The Companys segments maintain separate financial information. The Chief Operating Decision Maker (CODM), who is the Companys Chief Executive Officer, uses forecast-to-actual variances and year-over-year variances on a monthly basis when assessing segment performance and forecasts in deciding how to allocate resources among the segments. The CODM evaluates the performance of the …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Changes in Accumulated Other Comprehensive (Loss) Income The table below provides the accumulated balances for each classification of accumulated other comprehensive (loss) income, as reflected on our Condensed Consolidated Balance Sheets. (in millions) Defined Benefit Pension and Postretirement Items Currency Translation Adjustment Total (a) Balance as of December 31, 2025 $ (213.8) $ 233.8 $ 20.0 Other comprehensive income before reclassifications (28.1) (28.1) Amounts reclassified from accumulated other comprehensive loss 4.8 4.8 Net period other comprehensive income (loss) 4.8 (28.1) (23.3) Balance as of June 30, 2026 $ (209.0) $ 205.7 $ (3.3) (a) Net of tax benefit of $81.6 million and $83.3 million as of June 30, 2026 and December 31, 2025, respectively. The table below illustrates the amounts reclassified out of each component of accumulated other comprehensive loss for the three and six months ended June 30, 2026 and 2025. Amortization of pension and postretirement components has been recorded within Miscellaneous income, net on our Condensed Consolidated Statements of Operations. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Amortization of pension items: Prior service costs $ 0.2 $ 0.2 $ 0.4 $ 0.4 Net loss 3.1 3.5 6.2 7.0 Amortization of postretirement items: Net gain (0.1) (0.1) (0.2) (0.2) Total before tax $ 3.2 $ 3.6 $ 6.4 $ 7.2 Tax impact 0.8 0.9 1.6 1.8 Total reclassifications for the period $ 2.4 $ 2.7 $ 4.8 $ 5.4 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing