CR 10-K & 10-Q changes, risk factors and insider trading
Crane Co · NYSE · Miscellaneous Fabricated Metal Products · CIK 1944013 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Largest changes
“We are dependent on information technology networks and systems, including the Internet, to process, transmit and store electronic information, and, in the normal course of our business, we collect and retain certain types of personally identifiable and other information pertaining to our customers, stockholders and employees. The legal, regulatory and contractual environment surrounding information security and privacy is constantly evolving and companies that collect and retain such information are under increasing attack by cyber-criminals around the world. …”see in full comparison
“We are dependent on information technology networks and systems, to process, transmit and store electronic information, and, in the normal course of our business, we collect and retain certain types of personally identifiable and other information pertaining to our customers, stockholders and employees. The legal, regulatory and contractual environment surrounding information security and privacy is constantly evolving and companies that collect and retain such information are under increasing attack by cyber-criminals around the world. …”see in full comparison
“•Any pandemics or public health emergencies could result in disruptions to global supply chains, delays in supplier deliveries, higher raw material prices, delays in deliveries to customers, travel restrictions, site access and quarantine restrictions, and employee absences. The extent to which public health emergencies could impact our operations and financial performance is highly uncertain and would depend on future developments, including the duration of any such public health emergency, potential actions taken by governmental authorities, and how quickly economic conditions stabilize.”see in full comparison
“• Any pandemics or public health emergencies could result in disruptions to global supply chains, delays in supplier deliveries, higher raw material prices, delays in deliveries to customers, travel restrictions, site access and quarantine restrictions, and employee absences. The extent to which public health emergencies could impact our operations and financial performance is highly uncertain and would depend on future developments, including the duration of any such public health emergency, potential actions taken by governmental authorities, and how quickly economic conditions stabilize;”see in full comparison
“Total net periodic pension cost and pension contributions were $4.3 million and $16.6 million, respectively in 2024. The costs of our defined benefit pension plans are dependent upon various factors, including rates of return on investment assets, discount rates for future payment obligations, and expected mortality, among other things. In addition, funding requirements for benefit obligations of our pension plans are subject to legislative and other government regulatory actions. …”see in full comparison
“Total net periodic pension cost and pension contributions were $8.7 million and $16.5 million, respectively in 2025. The costs of our defined benefit pension plans are dependent upon various factors, including rates of return on investment assets, discount rates for future payment obligations, and expected mortality, among other things. In addition, funding requirements for benefit obligations of our pension plans are subject to legislative and other government regulatory actions. …”see in full comparison
Full comparison: every changed paragraph (20)
Our business, financial condition, operating results and cash flows may be adversely affected by changes in global economic conditions and geopolitical risks, including credit market conditions, trade policies, including recently announced and threatenedpotential additional tariffs on certain raw materials, levels of consumer and business confidence, commodity prices and availability, inflationary pressures, exchange rates, levels of government spending and deficits, political conditions, and other challenges that could affect the global economy, including the ongoing conflict in the Middle East as well as impacts associated with any economic sanctions imposed against Russia, in response to their invasion of the Ukraine. These economic and geopolitical conditions could affect businesses such as ours in a number of ways. Such conditions could have an adverse impact on our flexibility to react to changing economic and business conditions and on our ability to fund our operations, grow through operations or refinance maturing debt balances at economically favorable interest rates. In addition, restrictions on credit availability could adversely affect the ability of our customers to obtain financing for significant purchases and could result in decreases in or cancellation of orders for our products and services as well as impact the ability of our customers to make payments. Similarly, credit restrictions may adversely affect our supplier base and increase the potential for one or more of our suppliers to experience financial distress or bankruptcy. See “Specific Risks Related to Our BusinessReportable Segments.”
•In our Aerospace & ElectronicsAdvanced Technologies segment, a significant decline in demand for air travel, or a decline in airline profitability generally, could result in reduced orders for aircraft and could also cause airlines to reduce their purchases of spare parts from our businesses. In addition, our Aerospace & ElectronicsAdvanced Technologies segment could be impacted to the extent that our major aircraft manufacturing customers encounter problems which impact their production rates and, correspondingly, reduce purchases of our products, or if pricing pressure from aircraft customers caused the manufacturers to press their suppliers to lower prices and/or extend payment terms; in addition, demand for military and defense products is dependent upon government spending in certain areas which can vary year to year.
•Ongoing or threatened U.S. government shutdowns which may impact our ability to obtain or progress on government contracts, primarily in our Aerospace and Advanced Technologies segment.
•Any pandemics or public health emergencies could result in disruptions to global supply chains, delays in supplier deliveries, higher raw material prices, delays in deliveries to customers, travel restrictions, site access and quarantine restrictions, and employee absences. The extent to which public health emergencies could impact our operations and financial performance is highly uncertain and would depend on future developments, including the duration of any such public health emergency, potential actions taken by governmental authorities, and how quickly economic conditions stabilize.
•Changes in the U.S. government's approach to trade policy, including in some cases renegotiating and terminating certain existing bilateral or multi-lateral trade agreements. The adoption and expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements or policies (such as those recently announced or threatenedpotential additional tariffs by various countries) has the potential to adversely impact demand for our products, our costs, our customers, our suppliers, and the U.S. economy, which in turn could have a material adverse effect on our business, financial condition, results of operations and cash flows.flows;
•Economic and political instability, including the risk of geopolitical conflict or territorial incursions, in the countries and regions in which we operate; and
•The risks of fluctuations in foreign currency exchange rates, primarily the euro and the British pound, could adversely affect our reported results, primarily in our Process Flow Technologies segment, as amounts earned in other countries are typically translated into U.S. dollars for reporting purposes; andpurposes.
• Any pandemics or public health emergencies could result in disruptions to global supply chains, delays in supplier deliveries, higher raw material prices, delays in deliveries to customers, travel restrictions, site access and quarantine restrictions, and employee absences. The extent to which public health emergencies could impact our operations and financial performance is highly uncertain and would depend on future developments, including the duration of any such public health emergency, potential actions taken by governmental authorities, and how quickly economic conditions stabilize;
•Maintenance of uniform standards, controls, policies and proceduresprocedures, in particular where acquisitions reflect carve-out transactions;
Our operations require significant amounts of necessary components and raw materials. We deploy a continuous, company-wide process to source our components and raw materials from fewer suppliers, and to obtain parts from suppliers in low-cost countries where possible. Consistent with the rest of the aerospace and defense industry, our A&EAAT business has been experiencing, and may continue to experience, supply chain disruptions from an insufficient availability of certain components and raw materials. If we are unable to timely source these components or raw materials, our operations may be disrupted, or we could experience a delay or temporary stoppage in certain of our manufacturing operations. We believe that our supply management and production practices are based on an appropriate balancing of the foreseeable risks and the costs of alternative practices. Nonetheless, reduced availability or interruption in supplies, whether resulting from significant changes in demand; more stringent regulatory requirements; supplier financial condition; supplier product strategy changes; increases in duties and tariff costs; disruptions in transportation; an outbreak of a severe public health pandemic; severe weather; and the occurrence or threat of wars, could have an adverse effect on our financial condition, results of operations and cash flows.
The costs of certain components and raw materials that are critical to our profitability can be volatile, which can have a significant impact on our profitability. The costs in our business segments are affected by fluctuations in the price of metals such as steel and copper as well as other raw materials such as resin and electronic components; cost are also impacted by imposed tariffs, which are often unpredictable. We have seen a period of sustained price increases for components and raw materials that may continue into the future as demand increases and supply may remain constrained, notably in our A&EAAT segment, which has resulted in, and may continue to result in, increased costs for us. While we have taken actions aimed at securing an adequate supply of raw materials at prices which are favorable to us, if the prices of critical components and raw materials increase or we are unable to pass increased costs of components and raw materials to customers, our operating profit could be adversely affected.
We are dependent on information technology networks and systems, to process, transmit and store electronic information, and, in the normal course of our business, we collect and retain certain types of personally identifiable and other information pertaining to our customers, stockholders and employees. The legal, regulatory and contractual environment surrounding information security and privacy is constantly evolving and companies that collect and retain such information are under increasing attack by cyber-criminals around the world. A theft, loss, fraudulent use or misuse of customer, vendor, employee or our proprietary data by cybercrime or otherwise, non-compliance with our contractual or other legal obligations regarding such data or a violation of our privacy and security policies with respect to such data could adversely impact our reputation and could result in costs, fines, litigation or regulatory action against us. Security breaches can create system disruptions and shutdowns that could result in disruptions to our operations. We cannot be certain that advances in criminal capabilities, new vulnerabilities or other developments will not compromise or breach the security solutions protecting our information technology, networks and systems. A cyber-attack on our information systems technology or those of our partners, vendors, suppliers could adversely affect our ability to process orders, maintain proper levels of inventory, collect accounts receivable and pay expenses; all of which could have an adverse effect on our results of operations, financial condition and cash flows. Failure to effectively prevent, detect and recover from security breaches, including attacks on information technology and infrastructure by hackers; viruses; breaches due to employee error or actions; or other disruptions could seriously harm our operations as well as the operations of our customers and suppliers. Such serious harm can involve, among other things, misuse of our assets, business disruptions, loss of data, unauthorized access to trade secrets and confidential business information, unauthorized access to personal information, legal claims or proceedings, reporting errors, processing inefficiencies, negative media attention, reputational harm, loss of sales, remediation and increased insurance costs, and interference with regulatory compliance. We have experienced and expect to continue to experience some of these types of cybersecurity threats and incidents, which could be material in the future.
Our business segments and corporate offices are dependent upon highly qualified personnel, and we generally are dependent upon the continued efforts of key management employees. A number of factors may adversely affect the labor force available to us or increase labor costs, including high employment levels, federal unemployment subsidies and other government regulations. We have recently observed an increasingly competitive labor market which has and could continue to result in higher compensation costs. While we believe we have a robust intellectual capital process, we may have difficulty retaining key personnel or locating and hiring additional qualified personnel. The loss of the services of any of such personnel or our failure to attract and retain other qualified and experienced personnel on acceptable terms could impair our ability to successfully sustain and grow our business, which could have an adverse effect on our results of operations and financial condition.
We are dependent on information technology networks and systems, including the Internet, to process, transmit and store electronic information, and, in the normal course of our business, we collect and retain certain types of personally identifiable and other information pertaining to our customers, stockholders and employees. The legal, regulatory and contractual environment surrounding information security and privacy is constantly evolving and companies that collect and retain such information are under increasing attack by cyber-criminals around the world. A theft, loss, fraudulent use or misuse of customer, vendor, employee or our proprietary data by cybercrime or otherwise, non-compliance with our contractual or other legal obligations regarding such data or a violation of our privacy and security policies with respect to such data could adversely impact our reputation and could result in costs, fines, litigation or regulatory action against us. Security breaches can create system disruptions and shutdowns that could result in disruptions to our operations. We cannot be certain that advances in criminal capabilities, new vulnerabilities or other developments will not compromise or breach the security solutions protecting our information technology, networks and systems. A cyber-attack on our information systems technology or those of our partners, vendors, suppliers could adversely affect our ability to process orders, maintain proper levels of inventory, collect accounts receivable and pay expenses; all of which could have an adverse effect on our results of operations, financial condition and cash flows. Failure to effectively prevent, detect and recover from security breaches, including attacks on information technology and infrastructure by hackers; viruses; breaches due to employee error or actions; or other disruptions could seriously harm our operations as well as the operations of our customers and suppliers. Such serious harm can involve, among other things, misuse of our assets, business disruptions, loss of data, unauthorized access to trade secrets and confidential business information, unauthorized access to personal information, legal claims or proceedings, reporting errors, processing inefficiencies, negative media attention, reputational harm, loss of sales, remediation and increased insurance costs, and interference with regulatory compliance. We have experienced and expect to continue to experience some of these types of cybersecurity threats and incidents, which could be material in the future.
Total net periodic pension cost and pension contributions were $4.3 million and $16.6 million, respectively in 2024. The costs of our defined benefit pension plans are dependent upon various factors, including rates of return on investment assets, discount rates for future payment obligations, and expected mortality, among other things. In addition, funding requirements for benefit obligations of our pension plans are subject to legislative and other government regulatory actions. Variances in related estimates could have an adverse effect on our financial condition, results of operations and cash flows.
We are subject to income taxes in the U.S. and various international jurisdictions. Our financial condition, results of operations and cash flow could be affected by changes to tax laws, regulations, accounting principles and judicial rulings, the geographic mix of our earnings, the valuation of our deferred tax assets and liabilities, and the results of audits and examinations of previously filed tax returns. By way of example, the Organization for Economic Co-operation and Development has been coordinating negotiations among more than 140 countries with the goal of achieving consensus around substantial changes to international tax policies, including the implementation of a minimum global effective tax rate of 15%. While various countries have implemented legislation as of January 1, 2025, we currently do not expect a resulting material change to our tax liabilities in the near term as additional jurisdictions enact such legislation, nor do we expect our effective tax rate and cash tax payments to significantly increase in future years. In addition, the One Big Beautiful Bill Act (the “Act”) became law on July 4, 2025 and introduced significant changes to U.S. tax law. The Act did not have a significant impact on our 2025 consolidated financial statements and we will continue to assess its potential impact on our future consolidated financial statements. We continue to monitor evolving tax legislation in the jurisdictions in which we operate.
Total net periodic pension cost and pension contributions were $8.7 million and $16.5 million, respectively in 2025. The costs of our defined benefit pension plans are dependent upon various factors, including rates of return on investment assets, discount rates for future payment obligations, and expected mortality, among other things. In addition, funding requirements for benefit obligations of our pension plans are subject to legislative and other government regulatory actions. Variances in related estimates could have an adverse effect on our financial condition, results of operations and cash flows.
Our Aerospace & ElectronicsAdvanced Technologies segment sales are primarily affected by conditions in the commercial aerospace industry, which is cyclical in nature, and by changes in defense spending by the U.S. government.
The defense portion of the segment’s business is dependent primarily on U.S. government spending, and to a lesser extent, foreign government spending, on the specific military platforms and programs where our business participates. Any reduction in appropriations for these platforms or programs or delays caused by any potential extended U.S. government shut down, could impact the performance of our business. Our sales to defense customers are also affected by the level of activity in military flight operations.
Demand for our Process Flow Technologies products is heavily dependent on our customers’ level of new capital investment and planned maintenance expenditures. Customer spending typically depends on general economic conditions, industrial capital investment, availability of credit, and expectations of future demand. For example, lower levels of new housing construction and other infrastructure spending has had a negative impact on chemical demand, both in the U.S. and Europe, which adversely impacted the sale of our valve and valve-related products. Slowing global economic growth and volatility in commodity prices could both contribute to lower levels of customer spending, and project delays or cancellations.
Management's Discussion & Analysis (MD&A)
New heading “Acquisition of Druck, Panametrics and Reuter-Stokes”
New heading “Acquisition of optek-Danulat”
New heading “PROCESS FLOW TECHNOLOGIES”
New heading “The One Big Beautiful Bill Act”
Removed heading “Divestiture of Engineered Materials”
Removed heading “Divestiture of asbestos-related assets and liabilities”
Removed heading “Sale of Crane Supply”
Removed heading “Termination of Agreement to Sell Engineered Materials”
Removed heading “Restructuring and Related (Gains) Charges, net”
Removed heading “2024 compared with 2023”
Removed heading “2023 compared with 2022”
Removed heading “2024 compared to 2023”
Removed heading “2023 compared to 2022”
Removed heading “2024 compared to 2023”
Removed heading “2023 compared to 2022”
Removed heading “2024 compared to 2023”
Removed heading “2023 compared to 2022”
Largest changes
“Restructuring and Related (Gains) Charges, net”see in full comparison
“Cost of sales increased by $68.8 million, or 5.4%, to $1,332.2 million in 2025. The increase is primarily related to higher material, labor and other manufacturing costs, inclusive of tariffs of $110.7 million, or 8.8%, the impact from the CryoWorks, and Technifab acquisitions of $19.8 million, or 1.6%, unfavorable foreign currency translation of $6.7 million, or 0.5%, partially offset by strong productivity gains of $53.7 million, or 4.3%, lower volumes of $9.8 million, or 0.8%, and cost savings of $5.2 million, or 0.4%.”see in full comparison
“Cost of sales increased by $11.4 million, or 1.7%, to $700.4 million, reflecting higher material, labor and other manufacturing costs, inclusive of tariffs of $54.3 million, or 7.9%, the impact of the CryoWorks, and Technifab acquisitions of $19.8 million, or 2.9%, and unfavorable foreign currency translation of $6.1 million, or 0.9%, partially offset by lower volumes and mix impacts of $41.3 million, or 6%, strong productivity gains of $24.7 million, or 3.6%, and to a lesser extent cost savings of $2.8 million, or 0.4%.”see in full comparison
Operating profit increasedsee in full comparisonby $40.3$53.5 million, or24.0%,25.6%, to$208.5$262.5 million in2023.2025,Thethe increasewasprimarilydue toreflected higherpricingvolumes and strong net price, inclusive ofinflationtariffs and productivity gains of$74.0$65.0 million, or44.0%, partially31.1%, offset by unfavorable mix of$17.3$14.7 million, or10.3%, and the net impact from the sale of Crane Supply of $13.8 million, or 8.2%.7.0%.
“Operating profit increased $38.7 million, or 32.2%, to $159.0 million in 2023 compared to 2022, primarily reflecting the impact from higher volumes of $25.4 million, or 21.1%, coupled with higher pricing net of inflation, productivity gains and restructuring savings of $23.2 million, or 19.3%, partially offset by unfavorable mix of $10.1 million, or 8.4%.”see in full comparison
“Cost of sales increased $57.4 million, or 10.0%, to $631.8 million in 2025 compared to 2024, primarily reflecting higher material, labor and other manufacturing costs, inclusive of tariffs of $56.4 million, or 9.8%, increased volumes and mix impacts of $31.8 million, or 5.5%, partially offset by strong productivity gains of $29.0 million, or 5.0%.”see in full comparison
Full comparison: every changed paragraph (144)
Crane Company has delivered innovation and technology-led solutions for customers since its founding in 1855. Today, Crane is a leading manufacturer of highly engineered components for challenging, mission-critical applications focused on the aerospace, defense, space and process industry end markets. The Company has two reporting segments: Aerospace & ElectronicsAdvanced Technologies and Process Flow Technologies.
Acquisition of 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. The Druck brand is being integrated into the Aerospace & Advanced Technologies segment. Panametrics and Reuter-Stokes brands are being integrated into the Process Flow Technologies segment.
Acquisition of optek-Danulat
On January 1, 2026, the Company completed the acquisition of optek-Danulat (“Optek”). Optek is a leading provider of inline process control optical measurement solutions for biopharma, pharmaceutical and other demanding markets. Optek is being integrated into the Process Flow Technologies segment.
Divestiture of Engineered Materials
Effective on January 1, 2025, the Company completed the sale of the Engineered Materials segment to KPS Capital Partners, L.P (“KPS”) for approximately $208.0 million, on a cash-free and debt-free basis. We determined that the Engineered Materials segment met the criteria of being reported as a discontinued operation as of December 31, 2024. As a result, the related assets, liabilities and operating results of Engineered Materials are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Throughout this Annual Report on Form 10-K, unless otherwise indicated, amounts and activity are presented on a continuing operations basis. See Item 8 under Note 3, “Discontinued Operations,” in the Notes to Consolidated Financial Statements for additional detail.
In September 2024, our manufacturing site in Marion, North Carolina was directly affected by flooding from Hurricane Helene. Our insurance generally covers the repair or replacement of assets that suffered damage or loss and also provides business interruption coverage, including lost profits, and reimbursement for other expenses and costs that have been incurred relating to the damages and losses suffered. The recovery related to business interruption will be recognized when realized and received. We are working with our insurance carrier to assess the damage and ascertain the amount of insurance recoveries due to us as a result of the damage and loss we incurred, as such the timing of insurance proceeds may lag behind actual losses incurred.
For the year ended December 31, 2024, we incurred losses and expenses of $23.3 million related to damages caused by the hurricane, which included professional fees to restore and maintain the site and the write-off of damaged property, equipment and inventory. For the year ended December 31, 2024 we have received insurance recoveries of $20.0 million and have an insurance receivable of $2.8 million, which is net of the $0.5 million deductible. These costs and insurance recoveries are included in Selling, general and administrative expenses in the Consolidated Statements of Operations.
Separation
On April 3, 2023, Crane Holdings, Co. completed the Separation into two independent, publicly-traded companies, Crane NXT, Co. and Crane Company (the “Separation”). Crane Holdings, Co. was separated into two independent, publicly-traded companies in a transaction in which Crane Holdings, Co. retained its Payment & Merchandising Technologies segment (Crane NXT) and spun-off its Aerospace & Electronics, Process Flow Technologies and Engineered Materials segments to Crane Holdings, Co. stockholders (Crane Company).
On January 2, 2024, the Company completed the acquisition of Vian Enterprises, Inc. (“Vian”). Vian is a global designer and manufacturer of multi-stage lubrication pumps and lubrication system components technology for critical aerospace and defense applications with sole-sourced and proprietary content on the highest volume commercial and military aircraft platforms. Vian has been integrated into the Aerospace & ElectronicsAdvanced Technologies segment.
On October 4, 2023, the Company completed the acquisition of Baum lined piping GmbH (“BAUM”). BAUM is a German based company that designs, manufactures, and distributes lined piping products primarily focused on chemical and industrial end markets. BAUM ishas includedbeen inintegrated ourinto the Process Flow Technologies segment.
Divestiture of asbestos-related assets and liabilities
On August 12, 2022, we recognized a loss on the divestiture of asbestos-related assets and liabilities of $162.4 million. Please refer to item 8 under Note 13, “Commitments and Contingencies” in the Notes to Consolidated Financial Statements for further discussion.
Sale of Crane Supply
On May 31, 2022, the Company divested its Crane Supply business. In connection with the divestiture, the Company recognized a total gain on sale of $232.5 million which is presented within Gain on sale of business on the Consolidated Statement of Operations.
Termination of Agreement to Sell Engineered Materials
In 2021, we entered into an agreement to sell the Engineered Materials segment to Grupo Verzatec S.A. de C.V. (“Verzatec”). In 2022, Verzatec terminated the sale agreement and paid $7.5 million to the Company in termination fees, which is presented within Miscellaneous income, net on the Consolidated Statements of Operations.
Restructuring and Related (Gains) Charges, net
In 2022, we recorded net pre-tax restructuring and related charges of $8.2 million primarily related to modest cost reduction efforts across our businesses in response to continued macroeconomic uncertainty. There were no new restructuring programs in 2024 and 2023.
In 2025, we recorded pre-tax transaction related expenses of $14.8 million primarily related to the Druck, Panametrics, Reuter-Stokes and Optek acquisitions.
In 2023, we recorded pre-tax transaction related expenses of $39.3 million primarily related to the separation.
In September 2024, our manufacturing site in Marion, North Carolina was directly affected by flooding from Hurricane Helene. Our insurance covered the repair or replacement of assets that suffered damage or loss and also provided for business interruption coverage, which included lost profits, and reimbursement for other expenses and costs that have been incurred relating to the damages and losses suffered. The recovery related to business interruption was recognized when realized and received. We worked with our insurance carrier to assess the damage and ascertain the amount of insurance recoveries due to us as a result of the damage and loss we incurred, as such the timing of insurance proceeds lagged behind the actual losses incurred. As of December 31, 2025, the full insurance claim has been settled and no additional proceeds are expected to be recovered.
For the year ended December 31, 2025 and 2024, we incurred expenses of $6.0 million and $23.3 million, respectively related to damage caused by the hurricane, which included professional fees to restore and maintain the site. These costs are included in Engineering, selling and administrative expenses in the Consolidated Statements of Operations. On a cumulative basis, we incurred expenses of $29.3 million related to damage caused by the hurricane, all of which were fully covered by insurance except for the $0.5 million deductible. During the year ended December 31, 2025, we also received insurance proceeds for lost profits of $9.3 million, included in Miscellaneous income, net in the Consolidated Statements of Operations.
In 2022, we recorded pre-tax transaction related expenses of $48.3 million most of which related to the planned separation, coupled with expenses associated with defeasing the asbestos liability and, to a lesser extent, divestiture costs related to the intended sale of Engineered Materials and the completed sale of Crane Supply.
Results fromof Operations - For the Years ended December 31, 2024,2025, 20232024 and 20222023
(a) Variances designated as “NM” indicates such calculation is not meaningful.
(ba) For the years ended December 31, 2024,2025, 20232024 and 2022,2023, Corporate expense included transaction related expenses of $9.8$14.8 million, $41.5$9.8 million and $40.5$41.5 million, respectively.
(c) For the year ended December 31, 2022, Corporate expense included a $162.4 million loss on the divestiture of asbestos-related assets and liabilities.
2024 compared with 2023
•an increase in core sales of $156.0 million, or 8.4%, which was driven primarily by higher pricing and to a lesser extent higher volumes;
•an increase in sales related to the BAUM, Vian, CryoWorks, and Technifab acquisitions of 110.2 million, or 5.9%; and
•favorable foreign currency translation of 2.9 million, or 0.2%.
Cost of sales increased by $152.3 million, or 13.7%, to $1,263.4 million in 2024. The increase is primarily related to the impact from the BAUM, Vian, CryoWorks, and Technifab acquisitions of $90.5 million, or 8.1%, coupled with higher material, labor and other manufacturing costs of $60.5 million, or 5.4%, higher volumes of $24.8 million, or 2.2%, and unfavorable mix of $22.1 million, or 2.0%, partially offset by strong productivity gains of $46.6 million, or 4.2%.
Selling, general and administrative expenses increased by $11.4 million, or 2.3%, to $512.0 million in 2024, primarily driven by higher merit increases, investments in core businesses and the BAUM, Vian, CryoWorks, and Technifab acquisitions, partially offset by the absence of expenses related to the Separation.
Operating profit increased by $105.4 million, or 42.1%, to $355.8 million in 2024. The increase is primarily due to strong productivity gains of $51.0 million, or 20.4%, the absence of expenses related to the Separation and net higher pricing of $46.2 million, or 18.5%, coupled with higher volumes of $26.7 million, or 10.7%, partially offset by unfavorable mix of $22.0 million, or 8.8%.
2023 compared with 2022
Sales increased by $85.4 million, or 4.8%, to $1,862.1 million in 2023. The year-over-year higher sales included:
•an increase in sales related to the OctoberCryoWorks, 2023and acquisitionTechnifab acquisitions of BAUM of $15.4$29.1 million, or 0.9%1.4%; and
•favorable foreign currency translation of $0.5$12.0 million, andor 0.6%.
Cost of sales increased by $68.8 million, or 5.4%, to $1,332.2 million in 2025. The increase is primarily related to higher material, labor and other manufacturing costs, inclusive of tariffs of $110.7 million, or 8.8%, the impact from the CryoWorks, and Technifab acquisitions of $19.8 million, or 1.6%, unfavorable foreign currency translation of $6.7 million, or 0.5%, partially offset by strong productivity gains of $53.7 million, or 4.3%, lower volumes of $9.8 million, or 0.8%, and cost savings of $5.2 million, or 0.4%.
Engineering, selling and administrative expenses increased by $36.6 million, or 7.1%, to $548.6 million in 2025, primarily driven by the increase in administrative expenses of $27.0 million, or 5.3%, coupled with higher selling expenses of $5.0 million, or 1.0%. The increase in administrative expenses was primarily driven by investments in core businesses and the acquisitions of CryoWorks and Technifab.
Operating profit increased by $68.4 million, or 19.2%, to $424.2 million in 2025. The increase primarily reflected strong net price, inclusive of tariffs and productivity gains of $66.3 million, or 18.6%.
•a decrease in sales related to the May 2022 divestiture Crane Supply of $105.8 million, or 6.0%.
Cost of sales decreased by $4.4 million, or 0.4%, to $1,111.1 million in 2023. The decrease is primarily related to the sale of Crane Supply of $66.1 million, or 5.9% and strong productivity gains of $34.7 million, or 3.1%, partially offset by an increase in material, labor and other manufacturing costs of $56.2 million, or 5.0%, unfavorable mix net of savings of $23.2 million, or 2.1% and higher volumes of $16.0 million, or 1.4%.
Selling, general and administrative expenses increased by $7.1 million, or 1.4%, to $500.6 million in 2023, reflecting an $17.8 million, or 3.6%, increase in administrative expenses primarily related to the Separation, partially offset by the net impact of the sale of Crane Supply $11.2 million, or 2.3%.
Operating profit increased by $245.1 million, to $250.4 million in 2023. The increase is primarily related to the absence of loss on divestiture of asbestos-related assets and liabilities of $162.4 million, an increase in core sales primarily driven by higher pricing net of inflation of $68.9 million and strong productivity of $38.9 million, partially offset by unfavorable mix of $27.4 million.
For the year ended December 31, 2024,2025, comprehensive income before allocation to noncontrolling interests was $290.6$448.5 million compared to $286.6$290.6 million in 2023.2024. The $4.0$157.9 million increase was primarily driven by $38.8$71.9 million of higher net income before allocation to noncontrolling interests, a $16.5$82.0 million increase primarily related to changes in pension discount rates and a $51.3 million unfavorablefavorable impact of foreign currency translation adjustments, primarily related to the euro and British pound and euro.a $4.0 million increase primarily due to favorable pension plan asset performance.
For the year ended December 31, 2023, comprehensive income before allocation to noncontrolling interests was $286.6 million compared to $337.8 million in 2022. The $51.2 million decrease was primarily driven by $145.2 million of lower net income before allocation to noncontrolling interests which reflects the 2022 gain on sale of Crane Supply of $232.5 million, a $20.0 million decrease primarily related to changes in pension discount rates and a $114.0 million favorable impact of foreign currency translation adjustments, primarily related to the British pound and euro.
AEROSPACE & ELECTRONICSADVANCED TECHNOLOGIES
2024 compared to 2023
Aerospace & Electronics sales increased $143.4 million, or 18.2%, to $932.7 million in 2024, primarily due to higher volumes and pricing of $102.7 million, or 13.0%, and the impact of Vian acquisition of $40.6 million, or 5.1%. The commercial market and military market accounted for 61% and 39%, respectively, of total segment sales in 2024. Sales to OEM and aftermarket customers in 2024 were 67% and 33% of total segment sales, respectively.
•Sales of Commercial Original Equipment increased by $58.0 million, or 19.9%, to $349.4 million in 2024, primarily reflecting strong demand from aircraft manufacturers and the impact of the Vian acquisition.
•Sales of Military Original Equipment increased by $20.7 million, or 8.2%, to $273.1 million in 2024, primarily reflecting strong demand from defense and space customers and the impact of the Vian acquisition.
•Sales of Commercial Aftermarket Products increased by $38.3 million, or 21.3%, to $218.5 million in 2024, primarily reflecting continued strong demand from airlines due to improving air traffic volumes.
•Sales of Military Aftermarket Products increased by $26.4 million, or 40.4%, to $91.7 million in 2024, reflecting stronger demand for military products, partly in response to heightened geopolitical tensions globally.
Cost of sales increased $79.2 million, or 16.0%, to $574.4 million in 2024 compared to 2023, primarily reflecting higher material, labor and other manufacturing costs of $40.0 million, or 8.1%, the impact from the Vian acquisition of $38.1 million, or 7.7%, increased volumes of $25.1 million, or 5.1%, partially offset by productivity gains of $20.3 million, or 4.1%, and favorable mix of $3.8 million, or 0.8%.
Selling, general and administrative expense increased by $14.2 million, or 10.5%, to $149.3 million in 2024, primarily related to higher selling and administrative costs of $19.2 million, or 14.2%, offset by lower engineering costs of $5.0 million, or 3.7%.
Operating profit increased $50.0 million, or 31.4%, to $209.0 million in 2024, the increase primarily reflected the impact from higher volumes of $29.3 million, or 18.4%, coupled with productivity gains of $22.7 million, or 14.3%, partially offset by higher material, labor and other manufacturing costs net of higher pricing of $5.0 million, or 3.1%.
What changed in the latest 10-Q
Risk Factors
Information regarding risk factors appears in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
New heading “Results from Continuing Operations – Six Months Ended June 30, 2026 and 2025”
New heading “Comprehensive Income”
New heading “Segment Results of Operations - Six Months Ended June 30, 2026 and 2025”
Largest changes
“Cost of sales increased by $177.4 million, or 27.1%, to $832.3 million in 2026. The increase primarily reflects the impact of the Druck, Panametrics, Reuter-Stokes and Optek acquisitions of $154.0 million, or 23.5%, higher material, labor and other manufacturing costs of $45.7 million, or 7.0%, unfavorable mix of $25.9 million, or 4.0%, and unfavorable foreign currency translation of $10.7 million, or 1.6%, partially offset by strong productivity gains of $27.6 million, or 4.2%, favorable impact of tariff refunds of $18.7 million, or 2.9%, lower volumes of $8.3 million, or 1.3%, and cost …”see in full comparison
“Cost of sales increased by $28.1 million, or 15.4%, to $210.7 million, primarily driven by the impact of the Panametrics, Reuter-Stokes and Optek acquisitions of $49.0 million, or 26.8%, higher material, labor and other manufacturing costs of $8.8 million, or 4.8%, and unfavorable foreign currency translation of $1.4 million, or 0.8%, partially offset by the impact of tariff refunds of $13.2 million, or 7.2%, lower volumes of $9.5, million or 5.2%, strong productivity gains of $7.7 million, or 4.2%, and to a lesser extent cost savings of $1.1 million, or 0.6%.”see in full comparison
“Cost of sales increased by $74.8 million, or 21.1%, to $429.6 million, primarily driven by the impact of the Panametrics, Reuter-Stokes and Optek acquisitions of $93.7 million, or 26.4%, higher material, labor and other manufacturing costs of $20.5 million, or 5.8%, unfavorable foreign currency translation of $8.7 million, or 2.5%, partially offset by impact of tariff refunds of $13.2 million, or 3.7%, lower volumes of $16.6 million, or 4.7%, strong productivity gains of $15.8 million, or 4.4%, and to a lesser extent cost savings of $2.5 million, or 0.7%.”see in full comparison
“Cost of sales increased by $102.6 million, or 34.2%, to $402.7 million in 2026, primarily reflecting the impact of the Druck acquisition of $60.4 million, or 20.1%, unfavorable mix of $26.2 million, or 8.7%, increased material, labor and other manufacturing costs of $25.2 million, or 8.4%, and higher volumes of $8.3 million, or 2.8%, partially offset by strong productivity gains of $11.8 million, or 3.9%, favorable impact of tariff refunds of $5.5 million, or 1.8%, and cost savings of $2.1 million, or 0.7%.”see in full comparison
“Results from Continuing Operations – Six Months Ended June 30, 2026 and 2025”see in full comparison
“Segment Results of Operations - Six Months Ended June 30, 2026 and 2025”see in full comparison
Full comparison: every changed paragraph (72)
Tariff Refunds
Other
On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were not authorized by the statute. The Company is the importer of record for certain raw materials and products that were previously subject to such tariffs under IEEPA. BecauseOn March 4, 2026, the process,U.S. timing,Court of International Trade issued an additional ruling that importers that paid tariffs under the IEEPA are due refunds and amountordered U.S. Customs and Border Protection (“CBP”) to begin the refund process for all importers who were subject to IEEPA duties. On April 20, 2026, CBP launched Phase 1 of anyits tariffprocess recoveryfor aresubmitting uncertain, we have not recorded any benefit from a potentialIEEPA refund at this time.claims.
As the nature, timing, and amount of any such refunds remain uncertain, the Company elected to account for such refunds under the gain contingency model. During the three and six months ended June 30, 2026, the Company recognized $18.7 million of tariff refunds as a reduction to “Cost of sales” in the Condensed Consolidated Statements of Operations. No portion of the recognized refunds was allocated to inventory, as the underlying inventory to which the refunds related had been sold prior to June 30, 2026. In addition, the Company recognized $0.8 million of interest income related to tariff refunds received through June 30, 2026.
For 2026, we expect total sales growth in the low-to-midmid 20%s, driven by the Druck, Panametrics, Reuter-Stokes, and Optek acquisitions, as well as mid-single digit core sales growth at the mid-to-higher end of our long-term 5-6% core growth expectation and a slight foreign exchange benefit. We expect an improvement in operating profit driven primarily by productivity benefits and operating leverage on higher volumes, lower transaction related expenses, higher pricing net of inflation and contributions from the Druck, Panametrics, Reuter-Stokes, and Optek acquisitions.
In 2026, we expect Aerospace & Advanced ElectronicsTechnologies sales to increase in the low to mid 20%20%s range driven by high-singlecore digitsales growth modestly above our 7-9% long-term core sales growth,expectation, a low-to-mid-teenmid-teen percentage contribution from the Druck acquisition and a slight benefit from favorable foreign exchange. We expect an improvement in our commercial OEM business driven by higher aircraft build rates, and increased demand for our military OEM and aftermarket business driven by continued global geopolitical uncertainty. We expect growth in our military aftermarket business to be approximately offset by softer commercial aftermarket sales reflecting elevated fuel prices and the conflict in the Middle East. We expect segment operating profit to increase compared to 2025 due to higher volumes, positive net price and the contribution from the Druck acquisition. However, we expect operating margin to decline modestly compared to 2025 driven by the dilutive impact of the Druck acquisition.
In 2026, we expect Process Flow Technologies sales to increase in the low-to-midmid 20%s driven by flat-to-low single digit core sales growth, a low-20% contribution from the Panametrics, Reuter-Stokes, and Optek acquisitions, as well as a 1.5%1% benefit from foreign exchange. We expect core sales to be driven by demand in the pharmaceutical, water and waste-water and cryogenic markets offset by ongoingcontinued sluggishnessmarket softness in the chemical markets. We expect segment operating profit to increase compared to 2025 due primarily to the contribution from the Panametrics, Reuter-Stokes, and Optek acquisitions. However, we expect operating margin to declinebe modestlyrelatively flat compared to 2025 driven primarily by productivity and net price offset by the dilutive impact of the Panametrics, Reuter-Stokes, and Optek acquisitions.
Results from Continuing Operations – Three Months Ended MarchJune 31,30, 2026 and 2025
The following information should be read in conjunction with our condensed consolidated financial statements and related notes. All comparisons below refer to the firstsecond quarter 2026 versus the firstsecond quarter 2025, unless otherwise specified.
Cost of sales increased by $95.1$82.3 million, or 29.7%,24.6%, to $415.1$417.2 million in 2026. The increase primarily reflects the impact of the Druck, Panametrics, Reuter-Stokes and Optek acquisitions of $73.4$80.6 million, or 22.9%,24.1%, higher material, labor and other manufacturing costs of $23.1$22.7 million, or 7.2%,6.8%, unfavorable mix of $10.5$15.5 million, or 3.3%,4.6%, and unfavorable foreign currency translation of $9.0$1.7 million, or 2.8%,0.5%, partially offset by the favorable impact of tariff refunds of $18.7 million, or 5.6%, strong productivity gains of $14.0$13.6 million, or 4.4%,4.1%, lower volumes of $4.5$3.8 million, or 1.4%,1.1%, and cost savings of $2.4$2.2 million, or 0.8%.0.7%.
Engineering, selling and administrative expenses increased by $44.7$23.8 million, or 32.7%,17.1%, to $181.2$163.2 million in 2026, primarily driven by the acquisitions of Druck, Panametrics, Reuter-Stokes and Reuter-Stokes,Optek includingof the$32.5 transactionmillion, relatedor costs23.3%, associatedpartially withoffset them.by productivity and cost savings of $9.2 million, or 6.6%.
Operating profit decreasedincreased by $1.0$41.4 million, or 1.0%,40.2%, to $100.1$144.3 million in 2026. The decreaseincrease primarily reflected higher productivity gains and cost savings of $21.4 million, or 20.8%, strong net price of $16.4 million, or 15.9%, impact from tariff refunds of $18.7 million, or 18.2%, and favorable contributions from acquisitions of $1.3 million, or 1.3%, partially offset by unfavorable mix of $10.5$15.5 million, or 10.4%,15.1% and lower volumes of $4.1$1.3 million, or 4.1%, net investments in core businesses of $3.5 million, or 3.5%, partially offset by strong productivity gains of $15.4 million, or 15.2%, and favorable foreign currency translation of $1.7 million, or 1.7%.1.3%.
Our effective tax rate for the three months ended MarchJune 31,30, 2026 is higher than the prior year’s comparable period, primarily due to an increase in non-U.S. taxes and statutorilylower non-deductiblebenefit costs.related to share-based compensation.
Our effective tax rate for the three months ended MarchJune 31,30, 2026 is approximatelyhigher equal tothan the statutory U.S. federal tax rate of 21%, and any overall net differences are 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.
For the three months ended MarchJune 31,30, 2026, comprehensive income before allocation to noncontrolling interests was $50.9$88.8 million compared to $128.1$130.8 million in the same period of 2025. The $77.2$42.0 million decrease was primarily driven by lower net income before allocation to noncontrolling interests of $40.0 million and $36.9$51.2 million year-over-year unfavorable impact of foreign currency translation, primarily related to the euro and British pound.pound, offset by higher net income of $9.5 million.
Segment Results of Operations - Three Months Ended MarchJune 31,30, 2026 and 2025
•Sales of Commercial Aftermarket Products decreased $7.4 million, or 12.3%, to $53.0 million in 2026, due to lower initial provisioning and commercial spares replenishment.
•Sales of MilitaryCommercial Aftermarket Products increased $6.4$5.4 million, or 28.2%,9.4%, to $29.1$62.6 million in 2026, reflecting strongercontinued demand forfrom militarythe products,airlines partly in responsedue to heightenedstrong geopoliticalair tensions globally.traffic.
•Other sales increased $25.0 million, reflecting the impact of the Druck acquisition.
Cost of sales increased by $48.4 million, or 32.7%, to $196.2 million in 2026, primarily reflecting the impact of the Druck acquisition of $28.8 million, or 19.5%, increased material, labor and other manufacturing costs of $11.3 million, or 7.6%, unfavorable mix of $11.0 million, or 7.4%, and higher volumes of $2.6 million, or 1.8%, partially offset by strong productivity gains of $5.9 million, or 4.0%.
Engineering, selling and administrative expenses increased by $14.1 million, or 38.6%, to $50.6 million in 2026, primarily driven by the acquisition of Druck.
Operating profit increased by $6.9 million, or 10.7%, to $71.5 million in 2026, primarily reflecting productivity gains, higher volumes and strong net price, inclusive of tariffs, and cost savings of $16.4 million, or 25.4%, favorable contribution from the acquisition of Druck of $0.9 million, or 1.4%, offset by unfavorable mix of $11.0 million, or 17.0%.
Sales increased by $69.4 million, or 22.5%, to $378.1 million in 2026, primarily driven by the impact of Panametrics, Reuter-Stokes and Optek acquisitions of $59.3 million, or 19.2%, favorable foreign currency translation of $12.1 million, or 3.9% and to a lesser extent offset by lower core sales of $2.0 million, or 0.6%.
•Sales of Process Valves and Related Products increased by $61.7 million, or 26.4%, to $295.2 million in 2026, primarily driven by the impact of the Panametrics, Reuter-Stokes and Optek acquisitions of $59.3 million, or 25.4%, favorable foreign currency translation of $9.1 million, or 3.9%, and to a lesser extent offset by lower core sales of $6.7 million, or 2.9%, driven by lower volumes.
•Sales of Commercial Valves increased by $3.6 million, or 9.6%, to $41.0 million in 2026, primarily driven by the impact of favorable foreign currency translation.
•Sales of PumpsMilitary andAftermarket SystemsProducts increased by $4.1$2.3 million, or 10.8%,7.3%, to $41.9$34.0 million in 2026, reflecting anstronger increasedemand for military products, partly in coreresponse salesto drivenheightened bygeopolitical highertensions pricing and volumes.globally.
•Other sales increased $30.0 million, reflecting the impact of the Druck acquisition.
Cost of sales increased by $46.7$54.2 million, or 27.1%,35.6%, to $218.9$206.5 million,million in 2026, primarily driven byreflecting the impact of the Panametrics,Druck Reuter-Stokes and Optek acquisitionsacquisition of $44.6$31.6 million, or 25.9%,20.7%, higherunfavorable mix of $15.2 million or 10.0%, increased material, labor and other manufacturing costs, inclusivecosts of tariffs, of $11.7$13.9 million, or 6.8%,9.1%, unfavorablehigher foreign currency translationvolumes of $7.3$5.7 million, or 4.2%,3.7%, partially offset by the favorable impact of tariff refunds of $5.5 million, or 3.6%, strong productivity gains of $8.1$5.9 million, or 4.7%,3.9%, lowerand volumescost savings of $7.1$1.0 million, or 4.1%, and to a lesser extent cost savings and net favorable mix of $1.8 million, or 1.0%.0.7%.
Engineering, selling and administrative expenses increased by $21.3$5.7 million, or 28.9%,15.0%, to $95.0$43.7 million,million in 2026, primarily driven by the acquisitionsacquisition of Panametrics,Druck Reuter-Stokesof $11.6 million, or 30.5%, partially offset by cost savings and Optek.productivity of $6.1 million, or 16.1%.
Operating profit increased by $1.4$21.0 million, or 2.2%,30.9%, to $64.2$88.9 million in 2026. The increase is2026, primarily duereflecting tohigher volumes and strong net price, inclusiveprice of tariffs,$18.9 favorablemillion, foreignor exchange,27.8%, higher productivity gains and cost savings of $16.1$8.9 million, or 25.6%,13.1%, partiallyfavorable impact from tariff refunds of $5.5 million, or 8.1%, favorable contribution from the acquisition of Druck of $2.7 million, or 4.0%, offset by theunfavorable net impactmix of acquisitions driven primarily by amortization of acquisition-related intangibles and transaction related expenses, lower volumes, and mix impacts of $14.7$15.2 million, or 23.4%.22.4%.
Sales increased by $66.6 million, or 20.9%, to $385.6 million in 2026, primarily driven by the impact of Panametrics, Reuter-Stokes and Optek acquisitions of $68.6 million, or 21.5%, favorable foreign currency translation of $2.4 million, or 0.8%, offset by lower core sales of $4.4 million, or 1.4%.
•Sales of Process Valves and Related Products increased by $66.4 million, or 27.5%, to $307.6 million in 2026, primarily driven by the impact of the Panametrics, Reuter-Stokes and Optek acquisitions of $68.6 million, or 28.4%, favorable foreign currency translation of $2.1 million, or 0.9%, offset by lower core sales of $4.3 million, or 1.8%. driven by lower volumes.
•Sales of Commercial Valves decreased by $2.0 million, or 5.4%, to $35.1 million in 2026, reflecting lower core sales of 2.3 million, or 6.2%, driven by lower volumes, offset by the impact of favorable foreign currency translation of $0.3 million, or 0.8%.
•Sales of Pumps and Systems increased by $2.2 million, or 5.4%, to $42.9 million in 2026, reflecting an increase in core sales driven by higher pricing.
Cost of sales increased by $28.1 million, or 15.4%, to $210.7 million, primarily driven by the impact of the Panametrics, Reuter-Stokes and Optek acquisitions of $49.0 million, or 26.8%, higher material, labor and other manufacturing costs of $8.8 million, or 4.8%, and unfavorable foreign currency translation of $1.4 million, or 0.8%, partially offset by the impact of tariff refunds of $13.2 million, or 7.2%, lower volumes of $9.5, million or 5.2%, strong productivity gains of $7.7 million, or 4.2%, and to a lesser extent cost savings of $1.1 million, or 0.6%.
Engineering, selling and administrative expenses increased by $20.8 million, or 28.7%, to $93.3 million, primarily driven by the acquisitions of Panametrics, Reuter-Stokes and Optek.
Operating profit increased by $17.7 million, or 27.7%, to $81.6 million in 2026. The increase is primarily due to strong productivity gains, net price and cost savings of $15.6 million, or 24.4%, and the favorable impact from tariff refunds of $13.2 million, or 20.7%, partially offset by lower volumes and the net impact of acquisitions driven primarily by amortization of acquisition-related intangibles and transaction related expenses, of $11.1 million, or 17.4%.
Results from Continuing Operations – Six Months Ended June 30, 2026 and 2025
The following information should be read in conjunction with our condensed consolidated financial statements and related notes. All comparisons below refer to the first six months of 2026 versus the first six months of 2025, unless otherwise specified.
Sales increased by $286.3 million, or 25.2%, to $1,421.1 million in 2026. The year-over-year change in sales included:
•an increase in sales related to the Druck, Panametrics, Reuter-Stokes and Optek acquisitions of $216.6 million, or 19.1%;
•an increase in core sales of $51.4 million, or 4.5%, which was driven by higher pricing; and
•favorable foreign currency translation of $18.3 million, or 1.6%.
Cost of sales increased by $177.4 million, or 27.1%, to $832.3 million in 2026. The increase primarily reflects the impact of the Druck, Panametrics, Reuter-Stokes and Optek acquisitions of $154.0 million, or 23.5%, higher material, labor and other manufacturing costs of $45.7 million, or 7.0%, unfavorable mix of $25.9 million, or 4.0%, and unfavorable foreign currency translation of $10.7 million, or 1.6%, partially offset by strong productivity gains of $27.6 million, or 4.2%, favorable impact of tariff refunds of $18.7 million, or 2.9%, lower volumes of $8.3 million, or 1.3%, and cost savings of $4.6 million, or 0.7%.
Engineering, selling and administrative expenses increased by $68.5 million, or 24.8%, to $344.4 million in 2026, primarily driven by the acquisitions of Druck, Panametrics, Reuter-Stokes and Optek of $66.9 million, or 24.2%.
Operating profit increased by $40.4 million, or 19.8%, to $244.4 million in 2026. The increase primarily reflected higher productivity gains and cost savings of $42.3 million, or 20.7%, favorable impact from tariff refunds of $18.7 million, or 9.2%, strong net price of $12.9 million, or 6.3%, and favorable currency translation of $2.0 million, or 1.0%, partially offset by unfavorable mix of $25.9 million, or 12.7%, lower volumes of $5.3 million, or 2.6%, and the net impact of acquisitions of $4.3 million, or 2.1%, driven primarily by amortization of acquisition-related intangibles.
Our effective tax rate for the six months ended June 30, 2026 is higher than the prior year’s 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 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.
Comprehensive Income
For the six months ended June 30, 2026, comprehensive income was $139.7 million compared to $258.9 million in the same period of 2025. The $119.2 million decrease was primarily driven by a $88.1 million unfavorable impact of foreign currency translation, primarily related to the euro and British pound, and by lower net income of $30.5 million.
Segment Results of Operations - Six Months Ended June 30, 2026 and 2025
Sales increased $150.3 million, or 29.6%, to $657.4 million in 2026, primarily driven from the impact of the Druck acquisition of $88.8 million, or 17.5%, higher core sales of $57.7 million, or 11.4%, and favorable foreign currency translation of $3.8 million, or 0.7%.
•Sales of Commercial Original Equipment increased $64.4 million, or 33.8%, to $255.0 million in 2026, reflecting the impact of the Druck acquisition and strong demand from aircraft manufacturers.
•Sales of Military Original Equipment increased $24.2 million, or 16.7%, to $168.7 million in 2026, primarily reflecting strong demand from defense and space customers and the impact of the Druck acquisition.
•Sales of Commercial Aftermarket Products decreased $2.0 million, or 1.7%, to $115.6 million in 2026.
•Sales of Military Aftermarket Products increased $8.7 million, or 16.0%, to $63.1 million in 2026, reflecting stronger demand for military products, partly in response to heightened geopolitical tensions globally.
•Other sales increased $55.0 million, reflecting the impact of the Druck acquisition.
Cost of sales increased by $102.6 million, or 34.2%, to $402.7 million in 2026, primarily reflecting the impact of the Druck acquisition of $60.4 million, or 20.1%, unfavorable mix of $26.2 million, or 8.7%, increased material, labor and other manufacturing costs of $25.2 million, or 8.4%, and higher volumes of $8.3 million, or 2.8%, partially offset by strong productivity gains of $11.8 million, or 3.9%, favorable impact of tariff refunds of $5.5 million, or 1.8%, and cost savings of $2.1 million, or 0.7%.
Engineering, selling and administrative expenses increased by $19.8 million, or 26.6%, to $94.3 million in 2026, primarily driven by the acquisition of Druck of $24.8 million, or 33.3%, partially offset by cost savings and productivity of $6.1 million, or 8.2%.
Operating profit increased by $27.9 million, or 21.1%, to $160.4 million in 2026, primarily reflecting higher volumes and strong net price of $26.5 million, or 20.0%, higher productivity gains and cost savings of $17.7 million, or 13.4%, favorable impact from tariff refunds of $5.5 million, or 4.2%, and the favorable contribution from the acquisition of Druck of $3.6 million, or 2.7%, partially offset by unfavorable mix of $26.2 million, or 19.8%.
CR insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 1 Form 4 filing (1 insider, 1 trade date, 150 shares, about $26.6K) and open-market sales in 2 filings (1 insider, 2 trade dates, 1,014 shares, about $220.3K). Net open-market shares: -864 (purchases minus sales); net value about -$193.7K.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-08-31 | Tullis James L L |
Open-market sale | 400 | $205.38 | $82.2K |
| 2026-08-13 | Tullis James L L |
Open-market sale | 614 | $225.00 | $138.2K |
| 2026-06-01 | Tullis James L L |
Option exercise | 1,226 | — | — |
| 2026-04-30 | Lynch Susan D |
Open-market purchase | 150 | $177.38 | $26.6K |
| 2026-04-27 | Benante Martin R |
Grant/award | 49 | — | — |
| 2026-04-24 | Papanikolaou Marijane V. |
Option exercise | 508 | — | — |
| 2026-04-24 | Papanikolaou Marijane V. |
Shares withheld for tax | 236 | $180.42 | $42.6K |
| 2026-04-20 | Feldman Jason D. |
Shares withheld for tax | 83 | $192.81 | $16.0K |
| 2026-04-20 | Feldman Jason D. |
Option exercise | 162 | — | — |
Well-known investors holding CR (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 1,315,151 | $291.8M | 0.1% | Added 34% |
| Point72 Asset Management (Steve Cohen) | 2026-06-30 | 251,224 | $56.0M | 0.09% | Reduced 42% |
| Renaissance Technologies | 2026-06-30 | 159,600 | $35.6M | 0.05% | Reduced 1% |
| Bridgewater Associates | 2026-06-30 | 110,458 | $24.6M | 0.1% | Added 7% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 68,544 | $11.7M | — | Sold out |
| Millennium Management (Israel Englander) | 2026-06-30 | 45,490 | $10.1M | 0.01% | Reduced 91% |
| Gardner Russo & Quinn (Tom Russo) | 2026-06-30 | 43,937 | $9.8M | 0.11% | Reduced 6% |
| Gotham Asset Management (Joel Greenblatt) | 2026-06-30 | 32,989 | $7.4M | 0.02% | Reduced 75% |
| Two Sigma Investments | 2026-06-30 | 24,969 | $5.6M | 0.0% | Reduced 35% |
| D. E. Shaw & Co. | 2026-06-30 | 907 | $202.3K | 0.0% | Reduced 93% |