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Item 1. Financial Statements

2025-05-01 compared with 2024-10-31 · 246 added, 340 removed, 492 unchanged (54% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(in millions, except per share data) 2025 2024

7 unchanged sentences

Interest expense ( 4.5 ) ( 7.2 )

Miscellaneous income (expense), net 0.7 1.3 0.5 ( 0.5 )

Miscellaneous expense, net ( 1.0 ) ( 1.2 )

Total other expense, net ( 2.3 ) ( 7.2 )

19 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(in millions) 2025 2024

Net income before allocation to noncontrolling interests $ 77.3 $ 55.2 $ 213.7 $ 206.5

Net income attributable to common shareholders $ 107.1 $ 64.8

Components of other comprehensive income (loss), net of tax

1 unchanged sentence

Changes in pension and postretirement plan assets and benefit obligation, net of tax 2.7 3.0

Other comprehensive income, net of tax 28.3 ( 12.1 ) 18.6 6.6

Other comprehensive income (loss), net of tax 21.0 ( 9.4 )

Comprehensive income before allocation to noncontrolling interests 128.1 55.4

4 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions) September 30,

(in millions) March 31,

2025 December 31,

1 unchanged sentence

Cash and cash equivalents $ 435.1 $ 306.7

Accounts receivable, net of allowance for doubtful accounts of $ 8.4 as of September 30, 2024 and December 31, 2023

Accounts receivable, net of allowance for doubtful accounts of $ 9.3 as of March 31, 2025 and $ 8.7 as of December 31, 2024

Inventories, net:

5 unchanged sentences

Other current assets 162.4 159.1

Current assets held for sale — 217.9

Total current assets 1,373.5 1,403.2

11 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share and share data) September 30,

(in millions, except per share and share data) March 31,

2025 December 31,

1 unchanged sentence

Current liabilities:

Short-term borrowings $ 85.0 $ —

Current maturities of long-term debt $ 247.1 $ —

Accounts payable 149.6 188.2

1 unchanged sentence

and foreign taxes on income 18.4 7.9

Current liabilities held for sale — 44.1

Total current liabilities 659.5 543.4

18 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

September 30,

Three Months Ended

(in millions) 2025 2024

11 unchanged sentences

Other ( 0.2 ) ( 0.8 )

Total provided by operating activities from continuing operations 63.8 33.9

Total used for operating activities from continuing operations ( 46.2 ) ( 70.9 )

Investing activities:

5 unchanged sentences

Dividends paid ( 13.2 ) ( 11.7 )

Net (payments) proceeds related to employee stock plans ( 3.5 ) 15.7

Debt issuance costs — ( 7.5 )

Proceeds from long-term debt 190.0 300.0

Proceeds from term facility of discontinued operations — 350.0

Repayments of long-term debt ( 106.9 ) ( 448.8 )

Distribution of Crane NXT, Co.

Total provided by (used for) financing activities from continuing and discontinued operations 44.5 ( 415.7 )

Net payments related to employee stock plans ( 10.4 ) ( 8.5 )

Proceeds from debt — 140.0

Repayments of debt — ( 31.9 )

Total (used for) provided by financing activities from continuing and discontinued operations ( 23.6 ) 87.9

Discontinued Operations:

Total provided by operating activities — ( 9.0 )

Total used for investing activities — ( 4.1 )

Increase in cash and cash equivalents from discontinued operations — 30.5

Total provided by (used for) investing activities (a)

207.7 ( 1.1 )

Increase (decrease) in cash and cash equivalents from discontinued operations 207.7 ( 10.1 )

Effect of exchange rates on cash and cash equivalents 4.9 ( 3.7 )

Decrease in cash and cash equivalents ( 71.4 ) ( 383.8 )

Cash and cash equivalents at beginning of period (a)

Cash and cash equivalents at end of period $ 258.2 $ 273.8

(a) 2023 Includes cash and cash equivalents of discontinued operations.

Increase (decrease) in cash and cash equivalents 128.4 ( 110.2 )

Cash and cash equivalents at beginning of period 306.7 329.6

Cash and cash equivalents of continuing operations at end of period $ 435.1 $ 219.4

(a) For the three months ended March 31, 2025, the cash provided by investing activities from discontinued operations was from the sale of the Engineered Materials segment.

See Note 3, “Discontinued Operations” for additional information.

See Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

September 30,

Three Months Ended

(in millions) 2025 2024

32 unchanged sentences

BALANCE MARCH 31, 2025 57.5 $ 428.6 $ 1,311.7 $ ( 40.9 ) $ 1,756.9 $ 2.3 $ 1,759.2

Net income — — 71.6 — 71.6 — 71.6

Cash dividends ($ 0.205 per share)

— — ( 11.7 ) — ( 11.7 ) — ( 11.7 )

Exercise of stock options 0.1 3.5 — — 3.6 — 3.6

Impact from settlement of share-based awards, net of shares acquired — ( 0.2 ) — — ( 0.2 ) — ( 0.2 )

Stock-based compensation expense — 5.7 — — 5.7 — 5.7

Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — 3.0 3.0 — 3.0

Currency translation adjustment — — — ( 3.3 ) ( 3.3 ) — ( 3.3 )

BALANCE JUNE 30, 2024 57.2 $ 410.0 $ 1,073.7 $ ( 67.6 ) $ 1,473.3 $ 2.4 $ 1,475.7

Net income — — 77.3 — 77.3 — 77.3

Cash dividends ($ 0.205 per share)

— — ( 11.7 ) — ( 11.7 ) — ( 11.7 )

Exercise of stock options — 1.8 — — 1.8 — 1.8

Impact from settlement of share-based awards — ( 0.2 ) — — ( 0.2 ) — ( 0.2 )

Stock-based compensation expense — 5.7 — — 5.7 — 5.7

Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — 3.0 3.0 — 3.0

Currency translation adjustment — — — 25.2 25.2 0.1 25.3

BALANCE SEPTEMBER 30, 2024 57.2 $ 417.3 $ 1,139.3 $ ( 39.4 ) $ 1,574.4 $ 2.5 $ 1,576.9

See Notes to Condensed Consolidated Financial Statements.

(in millions, except share data) Common

3 unchanged sentences

Comprehensive

Loss Treasury

Share- holders’

5 unchanged sentences

— — ( 11.7 ) — ( 11.7 ) — ( 11.7 )

Exercise of stock options, net of shares reacquired of 297,539 shares

— — — — 19.8 19.8 — 19.8

Exercise of stock options 0.1 2.4 — — 2.5 — 2.5

Impact from settlement of share-based awards, net of shares acquired 0.1 ( 11.1 ) — — ( 11.0 ) — ( 11.0 )

Impact from settlement of liability PRSUs (Note 1) — 6.1 — — 6.1 — 6.1

Stock-based compensation expense — 5.4 — — 5.4 — 5.4

2 unchanged sentences

BALANCE MARCH 31, 2024 57.1 $ 401.0 $ 1,013.8 $ ( 67.3 ) $ 1,404.6 $ 2.4 $ 1,407.0

Net income — — 45.6 — — 45.6 — 45.6

Cash dividends ($ 0.18 per share)

— — ( 10.2 ) — — ( 10.2 ) — ( 10.2 )

Exercise of stock options — 1.0 — — — 1.0 — 1.0

Stock-based compensation expense — 2.5 — — — 2.5 — 2.5

Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — 2.6 — 2.6 — 2.6

Currency translation adjustment — — — 0.8 — 0.8 ( 0.1 ) 0.7

Capital effect of spin-off ( 15.7 ) — ( 832.4 ) — 848.1 — — —

Distribution of Crane NXT, Co.

— — ( 1,236.8 ) 414.5 — ( 822.3 ) — ( 822.3 )

BALANCE JUNE 30, 2023 56.7 $ 380.3 $ 868.1 $ ( 69.9 ) $ — $ 1,235.2 $ 2.4 $ 1,237.6

Net income — — 55.2 — — 55.2 — 55.2

Cash dividends ($ 0.18 per share)

— — ( 10.2 ) — — ( 10.2 ) — ( 10.2 )

Exercise of stock options 0.1 1.8 — — — 1.9 — 1.9

Impact from settlement of share-based awards — ( 0.1 ) — — — ( 0.1 ) — ( 0.1 )

Stock-based compensation expense — 5.7 — — — 5.7 — 5.7

Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — 3.6 — 3.6 — 3.6

Currency translation adjustment — — — ( 15.7 ) — ( 15.7 ) — ( 15.7 )

Distribution of Crane NXT, Co.

(Note 1) — — 8.5 — — 8.5 — 8.5

BALANCE SEPTEMBER 30, 2023 56.8 387.7 921.6 ( 82.0 ) — 1,284.1 2.4 1,286.5

See Notes to Condensed Consolidated Financial Statements.

6 unchanged sentences

Certain amounts in the prior periods’ condensed consolidated financial statements have been reclassified to conform to the current period presentation.

On April 3, 2023, Crane Holdings, Co.

completed a separation into two independent, publicly-traded companies, Crane NXT, Co.

and Crane Company (the “Separation”), through a pro-rata distribution (the "Distribution") of all of the outstanding common stock of Crane Company to the stockholders of Crane Holdings, Co., which on April 3, 2023 was renamed “Crane NXT, Co.” Therefore, following the Separation, the historical consolidated financial statements of Crane Company reflect the historical consolidated financial statements of Crane Holdings, Co.

with the Payment & Merchandising Technologies segment and other distributed assets and liabilities classified as discontinued operations.

See Note 3 for additional information.

In connection with the Separation Crane NXT, Co.

and Crane Company entered into various agreements to effect the Separation and provide a framework for their relationship after the Separation, including a separation and distribution agreement, a transition services agreement, an employee matters agreement, a tax matters agreement and an intellectual property matters agreement.

These agreements provide for the allocation between Crane NXT, Co.

and Crane Company of assets, employees, liabilities and obligations (including property and employee benefits and tax-related assets and liabilities) attributable to periods prior to, at, and after the consummation of the Separation and govern certain relationships between Crane NXT, Co.

and Crane Company after the Separation.

The Company had a receivable of less than $ 0.1 million as of September 30, 2024 and $ 2.2 million as of December 31, 2023, related to the transition services agreement and tax matters agreement.

Additionally, as part of the Separation, to a limited extent, the Company has agreed to indemnify Crane NXT, Co.

for uncertain tax benefits, which are attributable to the Company’s business.

Such total liability amounts are included in other liabilities on our Condensed Consolidated Balance Sheets and were $ 6.5 million and $ 7.0 million as of September 30, 2024 and December 31, 2023, respectively.

Divestiture Engineered Materials

Effective on January 1, 2025, the Company completed the sale of the Engineered Materials segment for approximately $ 208.0 million, on a cash-free and debt-free basis.

In connection with the divestiture, the Company recognized a pre-tax gain of $ 35.7 million, subject to a net working capital adjustment and was recorded in income from discontinued operations.

As a result of the sale, the 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.

Additionally, the assets and liabilities of the Engineered Materials segment were classified as held for sale at December 31, 2024.

Throughout these notes, unless otherwise indicated, amounts and activity are presented on a continuing operations basis.

See Note 3, “Discontinued Operations,” in the Notes to Financial Statements for additional details.

The Company entered into a Transition Services Agreement ("TSA") with KPS Capital Partners, L.P (“KPS”), which is designed to ensure and facilitate an orderly transfer of business operations.

The services provided under the TSA include, but are not limited to, shared systems and support, primarily related to IT, payroll and benefits.

These services terminate at various times up to twelve months from the date of sale.

Amounts received under the TSA were not material for the three months ended March 31, 2025.

Liability Performance-Based Restricted Share Units

As a result of the Separation, certain executives hold performance-based restricted share units (“PRSUs”) that have undergone an equity-to-liability modification and are denominated in Crane NXT, Co.

As of September 30, 2024 and December 31, 2023, the liability balance was $ 5.9 million and $ 10.0 million, respectively.

Recent Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Updates (“ASU”) No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

The amendments improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

The amended guidance is required to be applied on a retrospective basis to all periods presented.

We are currently evaluating this guidance to determine the impact on our disclosures.

In December 2023, FASB issued ASU No.

As a result of the separation into two independent, publicly-traded companies, Crane NXT, Co.

and Crane Company (the “Separation”), certain executives hold performance-based restricted share units (“PRSUs”) that have undergone an equity-to-liability modification and are denominated in Crane NXT, Co.

The outstanding PRSUs relate to grants made prior to the Separation transaction and accordingly will vest in February 2026.

As of March 31, 2025 and 2024, 88,505 and 101,182 units vested and were settled by Crane NXT Co, respectively.

The impact from the settlement of this liability was reflected on the Condensed Consolidated Statement of Changes in Equity as a $ 5.7 million and $ 6.1 million capital contribution as of March 31, 2025 and 2024, respectively.

As of March 31, 2025 and December 31, 2024, the liability balance was $ 2.5 million and $ 7.4 million, respectively, and included in “Other liabilities” on our Condensed Consolidated Balance Sheets.

Recent Accounting Pronouncements - Not Yet Adopted as of March 31, 2025

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

The amendments in this ASU require that public business entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income by the applicable statutory income tax rate).

The amendments in this ASU are effective for fiscal years beginning after December 15, 2024.

The amendments require that public business entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income by the applicable statutory income tax rate).

The amendments are effective for fiscal years beginning after December 15, 2024 and should be applied on a prospective basis.

We are currently evaluating this guidance to determine the impact on our disclosures.

In November 2024, the 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.

The amendments in this Update should be applied on a prospective basis.

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.

Recent Accounting Pronouncements - Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The amendments improve reportable segment disclosure

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company considered the applicability and impact of all ASUs issued by the FASB and determined them to be either not applicable or are not expected to have a material impact on the Company's Condensed Consolidated Statement of Operations, Balance Sheets and Cash Flows.

requirements, primarily through enhanced disclosures about significant segment expenses.

The amendments were effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

The Company adopted the standard for its annual reporting effective January 1, 2024.

The Company considered the applicability and impact of all other Accounting Standards Updates issued by the Financial Accounting Standards Board (FASB) and determined them to be either not applicable or are not expected to have a material impact on the Company's Condensed Consolidated Statement of Operations, Balance Sheets and Cash Flows.

Note 2 - Acquisitions

CryoWorks Acquisition

On May 1, 2024, the Company completed the acquisition of CryoWorks, Inc.

(“ CryoWorks ”) for $ 60.7 million on a cash-free and debt-free basis.

During the third quarter of 2024, the Company received $ 1.6 million from the seller related to a final working capital adjustment.

CryoWorks, is a leading supplier of vacuum insulated pipe systems for cryogenic and hydrogen applications.

CryoWorks has been integrated into the Process Flow Technologies segment.

Net assets acquired ( in millions )

Total current assets $ 6.6

Property, plant and equipment 0.5

Other assets 1.9

Intangible assets 24.0

Goodwill 31.1

Total assets acquired $ 64.1

Total current liabilities $ 3.5

Other liabilities 1.5

Total assumed liabilities $ 5.0

Net assets acquired $ 59.1

The amounts allocated to acquired intangible assets, and their associated weighted-average useful lives which were determined based on the period in which the assets are expected to contribute directly or indirectly to our future cash flows, consist of the following:

Intangible Assets ( dollars in millions )

Intangible Fair Value Weighted Average Life (in years)

Trademarks/Trade names $ 5.0 16.0

Customer relationships 17.5 12.0

Backlog 1.5 1.0

Total acquired intangible assets $ 24.0

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Vian Acquisition

On January 2, 2024, the Company completed the acquisition of Vian Enterprises, Inc.

(“Vian”) for $ 102.5 million on a cash-free and debt-free basis, and potential additional payments of up to $ 7.5 million depending on the resolution of outstanding contingencies.

During the third quarter of 2024, the Company received $ 3.0 million from the seller related to a final working capital adjustment.

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 commercial and military aircraft platforms.

Vian has been integrated into the Aerospace & Electronics segment.

Net assets acquired ( in millions )

Total current assets $ 21.0

Property, plant and equipment 6.8

Other assets 7.4

Intangible assets 53.4

Goodwill 46.5

Total assets acquired $ 135.1

Total current liabilities $ 6.2

Other liabilities 29.4

Total assumed liabilities $ 35.6

Net assets acquired $ 99.5

Intangible Assets ( dollars in millions )

Intangible Fair Value Weighted Average Life (in years)

Trademarks/trade names $ 2.0 17.0

Customer relationships 43.0 29.0

Manufacturing know-how 3.2 4.0

Backlog 5.2 1.0

Total acquired intangible assets $ 53.4

BAUM Acquisition

On October 4, 2023, the Company completed the acquisition of Baum lined piping GmbH (“BAUM”) for $ 93.5 million on a cash-free and debt-free basis.

Technifab Acquisition

On November 1, 2024, the Company completed the acquisition of Technifab Products, Inc.

(“Technifab”) for 38.8 million on a cash-free and debt-free basis.

During the first quarter of 2025, the Company paid $ 0.2 million to the seller related to a final working capital adjustment.

Valuation of Intangible Assets

For all acquisitions, the fair values of the trade name and manufacturing know-how intangible assets were determined by using an income approach, specifically the relief-from-royalty approach, which is a commonly accepted valuation approach.

This approach is based on the assumption that in lieu of ownership, a firm would be willing to pay a royalty in order to exploit the related benefits of this asset.

Therefore, a portion of earnings, equal to the after-tax royalty that would have been paid for the use of the asset, can be attributed to our ownership.

The fair values of the customer relationships and backlog intangible assets were determined by using an income approach which is a commonly accepted valuation approach.

Under this approach, the net earnings attributable to the asset or liability being measured are isolated using the discounted projected net cash flows.

These projected cash flows are isolated from the projected cash flows of the combined asset group over the remaining economic life of the intangible asset or liability being measured.

Both the amount and the duration of the cash flows are considered from a market participant perspective.

Our estimates of market participant net cash flows considered historical and projected pricing, operational performance including market participant synergies, aftermarket retention, product life cycles, material and labor pricing, and other relevant customer, contractual and market factors.

Where appropriate, the net cash flows were adjusted to reflect the potential attrition of existing customers in the future, as existing customers are expected to decline over time.

The attrition-adjusted

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

future cash flows are then discounted to present value using an appropriate discount rate.

The useful life of the customer relationship intangible asset related to Vian of 29 years is primarily driven by large customer relationships tied to long-duration aircraft platforms.

Intangible assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits).

Supplemental Pro Forma Data

The results of operations of CryoWorks, Vian and BAUM have been included in our financial statements for the period subsequent to the completion of the respective acquisition dates.

Consolidated pro forma revenue and net income attributable to common shareholders related to these acquisitions have not been presented since their impact is not material to our financial results for the period.

Note 3 - Discontinued Operations

As discussed in Note 1, Crane Company has reflected the historical consolidated financial statements of Crane Holdings, Co.

with the Payment & Merchandising Technologies segment classified as discontinued operations.

Financial results from discontinued operations:

Three Months Ended Nine Months Ended

September 30, September 30,

Engineered Materials

The following represents financial results from Engineered Materials included in discontinued operations:

Three Months Ended

(in millions) 2025 2024

3 unchanged sentences

Operating profit — 8.1

Gain on sale of business 35.7 —

Other expense, net — ( 0.1 )

2 unchanged sentences

Income from discontinued operations, net of tax $ 28.8 $ 6.0

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The major categories of assets and liabilities included in assets of discontinued operations and liabilities of discontinued operations are as follows:

(in millions) December 31, 2024

Cash and Cash Equivalents $ 1.5

Accounts receivable, net 9.2

Inventories, net 8.1

Other current assets 1.4

Current assets held for sale (a)

Property, plant and equipment, net 25.3

Other assets 0.4

Intangible assets, net 0.7

Goodwill 171.3

Long-term assets held for sale (a)

Assets held for sale $ 217.9

Accounts payable 16.8

Accrued liabilities 7.9

Current liabilities held for sale (a)

Long-term deferred tax liability 19.2

Other liabilities 0.2

Long-term liabilities held for sale (a)

Liabilities held for sale $ 44.1

(a) We closed on this transaction within one year from the date of our entry into the agreement, and therefore have presented all assets and liabilities as current as of December 31, 2024.

Note 4 - Segment Results

Our segments are reported on the same basis used internally for evaluating performance and for allocating resources.

As of September 30, 2024, we had three reportable segments:

Aerospace & Electronics, Process Flow Technologies, and Engineered Materials.

Assets of the reportable segments exclude general corporate assets, which principally consist of cash, deferred tax assets, certain property, plant and equipment, and certain other assets.

Corporate consists of corporate office expenses including compensation and benefits for corporate employees, occupancy, depreciation, and other administrative costs.

A brief description of each of our segments are as follows:

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.

We account for intersegment sales and transfers as if the sales or transfers were to third parties at current market prices.

The Company’s segments maintain separate financial information.

The Chief Operating Decision Maker (“CODM”), who is the Company’s 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 Company’s segments based on operating profit.

We currently have two reporting segments:

Aerospace & Electronics and Process Flow Technologies.

A brief description of each of our current segments is as follows:

Aerospace & Electronics

1 unchanged sentence

Its brands have decades of proven experience, and in many cases invented the critical technologies in their respective markets.

The business designs and delivers systems, reliable components, and flexible power solutions that excel in tough and mission-critical environments.

Products and services are organized into integrated solutions:

The business designs and delivers proven systems, reliable components, and flexible power solutions that excel in tough and mission-

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

critical environments.

Products and services are organized into six integrated solutions:

Sensing Components & Systems, Electrical Power Solutions, Fluid Management Solutions, Landing & Control Systems, and Microwave Solutions.

1 unchanged sentence

The Process Flow Technologies segment is a provider of highly engineered fluid handling equipment for mission critical applications that require high reliability.

The segment is comprised of Process Valves and Related Products, Pumps and Systems and Commercial Valves.

Process Valves and Related Products include on/off valves and related products for critical and demanding applications primary focused on chemical, pharmaceutical and general industrial end markets.

Commercial Valves includes the manufacturing of valves and related products for the non-residential construction, gas utility and

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

municipal markets.

Pumps and Systems include pumps and related products primarily for water and wastewater applications in the industrial, municipal and commercial markets.

Engineered Materials

The Engineered Materials segment manufactures fiberglass-reinforced plastic ("FRP") panels and coils, primarily for use in the manufacturing of recreational vehicles (RV), commercial and industrial buildings (Building Products), with additional applications in truck bodies and trailers (Transportation).

The segment is comprised of Process Valves and Related Products, Commercial Valves, and Pumps and Systems.

Process Valves and Related Products include on/off valves and related products for critical and demanding applications in the chemical, oil & gas, power, and general industrial end markets globally.

Commercial Valves includes the manufacturing and distribution of valves and related products for the non-residential construction, general industrial, and to a lesser extent, municipal markets.

Pumps and Systems include pumps and related products primarily for water and wastewater applications in the industrial, municipal, commercial and military markets.

Financial information by reportable segment is set forth below.

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(in millions) 2025 2024

1 unchanged sentence

Process Flow Technologies 308.7 284.3

Engineered Materials 48.9 56.2 156.6 175.7

Total $ 597.2 $ 530.1 $ 1,743.7 $ 1,553.5

TOTAL NET SALES $ 557.6 $ 510.2

Cost of Sales:

Aerospace & Electronics $ 147.8 $ 141.7

Process Flow Technologies 172.2 161.7

TOTAL COST OF SALES $ 320.0 $ 303.4

Selling, general and administrative:

Aerospace & Electronics $ 36.5 $ 35.9

Process Flow Technologies 73.7 65.7

Corporate 26.3 23.9

TOTAL SELLING, GENERAL AND ADMINISTRATIVE $ 136.5 $ 125.5

Operating profit:

1 unchanged sentence

Process Flow Technologies 62.8 56.9

Engineered Materials 6.2 7.7 21.6 28.9

Corporate ( 26.3 ) ( 23.9 )

Total $ 105.2 $ 76.3 $ 291.2 $ 216.9

TOTAL OPERATING PROFIT $ 101.1 $ 81.3

Interest income 3.2 1.2

Interest expense ( 4.5 ) ( 7.2 )

Miscellaneous income (expense), net 0.7 1.3 0.5 ( 0.5 )

Miscellaneous expense, net ( 1.0 ) ( 1.2 )

Income from continuing operations before income taxes $ 98.8 $ 74.1

(in millions) September 30, 2024 December 31, 2023

Three Months Ended

(in millions) 2025 2024

Depreciation and amortization:

Aerospace & Electronics $ 4.5 $ 5.6

Process Flow Technologies 8.0 6.3

Engineered Materials 222.4 191.8

TOTAL DEPRECIATION AND AMORTIZATION $ 12.5 $ 11.9

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended

(in millions) 2025 2024

Capital expenditures:

Aerospace & Electronics $ 4.0 $ 2.6

Process Flow Technologies 10.2 5.4

TOTAL CAPITAL EXPENDITURES $ 14.2 $ 8.0

(in millions) March 31, 2025 December 31, 2024

Aerospace & Electronics $ 917.4 $ 896.2

Process Flow Technologies 1,322.3 1,265.0

Corporate 382.4 262.8

Total $ 2,651.9 $ 2,333.6

(in millions) September 30, 2024 December 31, 2023

Assets held for sale — 217.9

TOTAL ASSETS $ 2,622.1 $ 2,641.9

(in millions) March 31, 2025 December 31, 2024

Aerospace & Electronics $ 248.6 $ 248.5

Process Flow Technologies 420.8 413.1

Engineered Materials 171.3 171.3

Total $ 827.8 $ 747.7

TOTAL GOODWILL $ 669.4 $ 661.6

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

2 unchanged sentences

The following table presents net sales disaggregated by product line for each segment:

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(in millions) 2025 2024

10 unchanged sentences

Total Process Flow Technologies $ 308.7 $ 284.3

Engineered Materials

FRP - Recreational Vehicles $ 15.7 $ 19.6 $ 51.4 $ 57.1

FRP - Building Products 27.5 27.5 85.7 91.1

FRP - Transportation 5.7 9.1 19.5 27.5

Total Engineered Materials $ 48.9 $ 56.2 $ 156.6 $ 175.7

Net Sales $ 557.6 $ 510.2

1 unchanged sentence

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 September 30, 2024, total backlog was $ 1,237.6 million.

As of March 31, 2025, total backlog was $ 1,350.0 million.

We expect to recognize approximately 70 % of our remaining performance obligations as revenue in 2025, an additional 24 % in 2026 and the balance thereafter.

6 unchanged sentences

Revenue related to contract liabilities is recognized when control is transferred to the customer.

We report contract assets, which are included within “Other current assets” in our Condensed Consolidated Balance Sheets, and contract liabilities, which are included within “Accrued liabilities” on our Condensed Consolidated Balance Sheets, on a contract-by-contract net basis at the end of each reporting period.

We report contract assets, which are included within “Other current assets” on our Condensed Consolidated Balance Sheets, and contract liabilities, which are included within “Accrued liabilities” on our Condensed Consolidated Balance Sheets, on a contract-by-contract net basis at the end of each reporting period.

Net contract assets and contract liabilities consisted of the following:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

Contract assets $ 76.3 $ 65.7

Contract liabilities $ 39.4 $ 36.3

We recognized revenue of $ 8.5 million and $ 30.4 million during the three and nine-month periods ended September 30, 2024, respectively, related to contract liabilities as of December 31, 2023.

We recognized revenue of $ 16.3 million during the three months ended March 31, 2025, related to contract liabilities as of December 31, 2024.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

4 unchanged sentences

Diluted earnings per share gives effect to all potentially dilutive common shares outstanding during the period.

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(in millions, except per share data) 2025 2024

13 unchanged sentences

Earnings per diluted share $ 1.83 $ 1.12

Stock options, restricted share units, deferred stock units and performance-based restricted share units that were excluded from the calculation of diluted earnings per share because their effect is anti-dilutive was 0.2 million and 0.5 million for the three months ended September 30, 2024, and 2023, respectively and 0.2 million and 0.4 million for the nine months ended September 30, 2024, and 2023, respectively.

Stock options, restricted share units, deferred stock units and performance-based restricted share units that were excluded from the calculation of diluted earnings per share because their effect is anti-dilutive was 0.2 million for both the three months periods ended March 31, 2025 and 2024.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

6 unchanged sentences

Net period other comprehensive income 2.7 18.3 21.0

Balance as of September 30, 2024 $ ( 261.8 ) $ 222.4 $ ( 39.4 )

(a) Net of tax benefit of $ 100.5 million and $ 103.0 million as of September 30, 2024 and December 31, 2023, respectively.

The table below illustrates the amounts reclassified out of each component of accumulated other comprehensive loss for the three and nine months ended September 30, 2024 and 2023.

Amortization of pension and postretirement components has been recorded within “Miscellaneous income (expense), net” on our Condensed Consolidated Statements of Operations.

Three Months Ended September 30, Nine Months Ended September 30,

Balance as of March 31, 2025 $ ( 241.6 ) $ 200.7 $ ( 40.9 )

(a) Net of tax benefit of $ 93.3 million and $ 94.2 million as of March 31, 2025 and December 31, 2024, respectively.

The table below illustrates the amounts reclassified out of each component of accumulated other comprehensive loss for the three months ended March 31, 2025 and 2024.

Amortization of pension and postretirement components has been recorded within “Miscellaneous expense, net” on our Condensed Consolidated Statements of Operations.

Three Months Ended March 31,

(in millions) 2025 2024

Amortization of pension items:

Prior service costs (a)

$ 0.2 $ 0.5 $ 0.6 $ 0.5

Prior service costs $ 0.2 $ 0.2

Net loss 3.5 3.8

Amortization of postretirement items:

Prior service cost (benefit) (b)

— 0.2 — ( 0.3 )

Net (gain) loss (c)

( 0.1 ) 0.2 ( 0.3 ) ( 0.2 )

Net gain ( 0.1 ) ( 0.1 )

Total before tax $ 3.6 $ 3.9

1 unchanged sentence

Total reclassifications for the period $ 2.7 $ 3.0

(a) Includes cost of $ 0.4 million from discontinued operations for the three months ended September 30, 2023.

(b) Includes cost of $ 0.2 million and benefit of $ 0.3 million from discontinued operations for the three months and nine months ended September 30, 2023, respectively.

(c) Includes net activity from discontinued operations of $ 0.2 million and $ 0.2 million for the three months and nine months ended September 30, 2023, respectively.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 8 - Defined Benefit and Postretirement Benefits

For all plans, the components of net periodic benefit for the three months ended September 30, 2024, and 2023 are as follows:

Pension Postretirement

(in millions) 2024 2023 2024 2023

Service cost $ 0.9 $ 0.7 $ — $ —

Interest cost 8.6 8.9 — —

Expected return on plan assets ( 12.5 ) ( 11.4 ) — —

Amortization of prior service cost 0.2 0.1 — —

Amortization of net loss (gain) 3.8 3.9 ( 0.1 ) —

Net periodic loss (benefit) $ 1.0 $ 2.2 $ ( 0.1 ) $ —

For all plans, the components of net periodic benefit for the nine months ended September 30, 2024, and 2023 are as follows:

For all plans, the components of net periodic benefit for the three months ended March 31, 2025, and 2024 are as follows:

Pension Postretirement

5 unchanged sentences

Amortization of net loss (gain) 3.5 3.8 ( 0.1 ) ( 0.1 )

Curtailment and Settlement loss from discontinued operations — 1.9 — —

Net periodic loss (benefit) $ 3.0 $ 8.8 $ ( 0.2 ) $ —

Net periodic loss (benefit) (a)

$ 2.1 $ 1.0 $ ( 0.1 ) $ ( 0.1 )

(a) Includes $ 0.1 million of pension net periodic loss related to discontinued operations for the three months ended March 31, 2024.

The components of net periodic benefit, other than the service cost component, are included in “Miscellaneous income (expense), net” in our Condensed Consolidated Statements of Operations.

3 unchanged sentences

Expected contributions in 2025 $ 16.8 $ 0.4

Amounts contributed during the nine months ended September 30, 2024

Amounts contributed during the three months ended March 31, 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

3 unchanged sentences

Our effective tax rates are as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Effective Tax Rate 20.8 % 20.6 %

Our effective tax rate for the three and nine months ended September 30, 2024, is lower than the prior year’s comparable period primarily due to lower non-U.S.

taxes and lower statutorily non-deductible costs, partially offset by the statutory U.S.

Our effective tax rate for the three months ended March 31, 2025, is slightly higher than the prior year’s comparable period due to a lower statutory U.S.

deduction related to our non-U.S.

subsidiaries’ income.

Our effective tax rate for the three and nine months ended September 30, 2024 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.

subsidiaries’ income and slightly higher statutorily non-deductible costs, partially offset by excess share-based compensation benefits.

Our effective tax rate for the three months ended March 31, 2025 is approximately equal to 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.

2 unchanged sentences

Unrecognized Tax Benefits

During both the three months and nine months ended September 30, 2024, our gross unrecognized tax benefits, excluding interest and penalties, increased by $ 0.6 million, and $ 1.3 million, respectively, primarily due to increases in tax positions taken in the current and prior period, and in the nine months ended September 30, 2024 these items were partially offset by reductions from the expiration of statutes of limitations.

During the three and nine months ended September 30, 2024, the total amount of unrecognized tax benefits that, if recognized, would cause our effective tax rate to increase by $ 0.8 million and $ 1.7 million, respectively.

During the three months ended March 31, 2025, our gross unrecognized tax benefits, excluding interest and penalties, increased by $ 0.5 million, primarily due to increases in tax positions taken in the current and prior period.

During the three months ended March 31, 2025, the total amount of unrecognized tax benefits that, if recognized, would cause our effective tax rate to increase by $ 0.6 million.

The difference between these amounts relates to (1) offsetting tax effects from other tax jurisdictions, and (2) interest expense, net of deferred taxes.

During the three and nine months ended September 30, 2024, we recognized $ 0.2 million and $ 0.5 million, respectively, of interest expense related to unrecognized tax benefits in our Condensed Consolidated Statement of Operations.

As of both September 30, 2024 and December 31, 2023, the total amount of accrued interest and penalty expense related to unrecognized tax benefits recorded in our Condensed Consolidated Balance Sheets was $ 2.7 million and $ 2.2 million, respectively.

During the three months ended March 31, 2025, we recognized $ 0.2 million of interest expense related to unrecognized tax benefits in our Condensed Consolidated Statement of Operations.

As of March 31, 2025 and December 31, 2024, the total amount of accrued interest and penalty expenses related to unrecognized tax benefits recorded in our Condensed Consolidated Balance Sheets was $ 2.9 million and $ 2.7 million, respectively.

During the next twelve months, it is reasonably possible that our unrecognized tax benefits may decrease by $ 0.6 million due to expiration of statutes of limitations and settlements with tax authorities.

9 unchanged sentences

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 September 30, 2024, we had four reporting units.

As of March 31, 2025, 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.

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Changes to goodwill are as follows:

(in millions) Aerospace & Electronics Process Flow Technologies Engineered Materials Total

(in millions) Aerospace & Electronics Process Flow Technologies Total

Balance as of December 31, 2024 $ 248.5 $ 413.1 $ 661.6

Acquisition (a) (b)

46.5 34.2 — 80.7

Acquisition (a)

Currency translation 0.1 7.5 7.6

Balance as of September 30, 2024 $ 248.9 $ 407.6 $ 171.3 $ 827.8

(a) For the period ended September 30, 2024, adjustments within the Aerospace & Electronics segment of $ 46.5 million relate to the acquisition of Vian, including the final working capital adjustment.

See Note 2 for further information.

(b) For the period ended September 30, 2024 adjustments within the Process Flow Technologies segment of $ 34.2 million relate to the acquisitions of CryoWorks and Baum, including the final working capital adjustments.

Balance as of March 31, 2025 $ 248.6 $ 420.8 $ 669.4

(a) For the period ended March 31, 2025, adjustments within the Process Flow Technologies segment of $ 0.2 million relate to the Technifab final working capital adjustment.

See Note 2 for further information.

As of September 30, 2024, we had $ 152.6 million of net intangible assets, of which $ 22.3 million were intangibles with indefinite useful lives.

As of March 31, 2025, we had $ 157.3 million of net intangible assets, of which $ 21.9 million were intangibles with indefinite useful lives.

As of December 31, 2024, we had $ 159.9 million of net intangible assets, of which $ 21.4 million were intangibles with indefinite useful lives.

Changes to intangible assets are as follows:

(in millions) Nine Months Ended

September 30, 2024 Year Ended December 31, 2023

(in millions) Three Months Ended

March 31, 2025 Year Ended December 31, 2024

Balance at beginning of period, net of accumulated amortization $ 159.9 $ 87.1

3 unchanged sentences

Balance at end of period, net of accumulated amortization $ 157.3 $ 159.9

(a) For the period ended September 30, 2024, additions include $ 24.0 million related to the acquisition of CryoWorks and $ 53.4 million related to the acquisition of Vian.

(a) For the year ended December 31, 2024, additions of $ 92.4 million relate to the acquisitions of Vian Enterprises, Inc., CryoWorks, Inc.

and Technifab.

See Note 2 for further information.

1 unchanged sentence

A summary of intangible assets are as follows:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

( dollars in millions )

16 unchanged sentences

Accrued liabilities consist of:

(in millions) September 30,

(in millions) March 31,

2025 December 31,

2 unchanged sentences

Contract liabilities 39.4 36.3

Environmental liabilities 7.8 7.9

Other 117.4 129.8

5 unchanged sentences

Generally, third party specialists assist in the estimation of remediation costs.

The environmental remediation liability as of September 30, 2024 is substantially related to the former manufacturing site in Goodyear, Arizona (the “Goodyear Site”) discussed below.

On June 21, 2021, we completed the sale of substantially all of the property associated with what we have historically called the Goodyear Site for $ 8.7 million, retaining only a small parcel on which our remediation and treatment systems are located.

We will continue to be responsible for all remediation costs associated with the Goodyear Site.

The environmental remediation liability as of March 31, 2025 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”).

13 unchanged sentences

As noted above, however, Crane Company has agreed to indemnify Redco and Redco Buyer against the Goodyear, Roseland, and Crab Orchard environmental liabilities.

Thus, references below in this Note 12 to “we”, and “us” refer to Crane Company in its capacity as the primarily responsible party for the Goodyear and Roseland Sites, and as indemnitor to the Redco Buyer on the Crab Orchard Site.

Goodyear Site

18 unchanged sentences

The 2019 conceptual agreement and modified remedial approach focused on enhanced extraction of contaminated groundwater and targeted reinjection of treated groundwater and was designed to accelerate remedial progress at the site.

The modified remedial approach required certain capital investments and infrastructure upgrades across the broader plume area, with the final components of this approach

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

commissioned in 2022.

The modified remedial approach required certain capital investments and infrastructure upgrades across the broader plume area, with the final components of this approach commissioned in 2022.

In addition, the modified source area treatment remedy was commissioned in late 2023.

1 unchanged sentence

The year 2027 was selected as a milestone to enable the collection of 3 to 4 years of post-commissioning data, analysis of data and submission of a performance monitoring report to the EPA with recommendations.

This report will document the project restoration time frames for groundwater and outline the future operational scheme, including the key milestones for transitioning from active groundwater treatment to monitoring only.

This report will be submitted to the EPA for approval and in combination with regulatory discussions and consultations, will provide clarity on future remedial requirements at the site and associated costs.

The total estimated gross liability was $ 17.3 million and $ 20.7 million as of September 30, 2024 and December 31, 2023, respectively, and as described below, a portion is reimbursable by the U.S.

The current portion of the total estimated liability was $ 7.8 million as of September 30, 2024 and December 31, 2023, respectively, and represents our best estimate, in consultation with our technical advisors, of total remediation costs expected to be paid during the next twelve-month period.

This report will document the project restoration time frames for groundwater and outline the future operational scheme, including the key milestones for transitioning from active

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

groundwater treatment to monitoring only.

This report will be submitted to the EPA for approval and in combination with regulatory discussions and consultations, is expected to provide clarity on future remedial requirements at the site and associated costs.

The total estimated gross liability was $ 15.4 million and $ 16.4 million as of March 31, 2025 and December 31, 2024, respectively, and as described below, a portion is reimbursable by the U.S.

The current portion of the total estimated liability was $ 7.8 million as of March 31, 2025 and December 31, 2024, respectively, and represents our best estimate, in consultation with our technical advisors, of total remediation costs expected to be paid during the next twelve-month period.

It is not possible at this point to reasonably estimate the amount of any obligation in excess of our current accruals through the 2027 forecast period because of the aforementioned uncertainties, in particular, the continued significant changes in the Goodyear Site conditions and additional expectations of remediation activities experienced in recent years.

2 unchanged sentences

Government reimburses us for 21 % of qualifying costs of investigation and remediation activities at the Goodyear Site.

As of September 30, 2024 and December 31, 2023, we recorded a receivable of $ 3.5 million and $ 3.8 million, respectively, for the expected reimbursements from the U.S.

As of March 31, 2025 and December 31, 2024, we recorded a receivable of $ 3.0 million, respectively, for the expected reimbursements from the U.S.

Government in respect of the aggregate liability as at that date.

26 unchanged sentences

Government, and other PRPs entered into a non-binding mediation agreement in 2015 (we have since stepped into Redco’s position as a participant in the mediation).

The first phase of the mediation, involving certain former munitions or ordnance

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

storage areas, began in November 2017, but did not result in a multi-party settlement agreement.

The first phase of the mediation, involving certain former munitions or ordnance storage areas, began in November 2017, but did not result in a multi-party settlement agreement.

Subsequently, Redco entered discussions directly with GD-OTS and reached an agreement, as of July 13, 2021, to contribute toward GD-OTS’s past RI-FS costs associated with the first-phase areas for an immaterial amount.

2 unchanged sentences

Government and other participating PRPs related to the first-phase areas of concern.

Negotiations between GD-OTS, the U.S.

Government and remaining participants are underway with respect to resolution of the U.S.

Government’s liability for, and contribution claims with respect to, RI/FS costs associated with the remaining areas of the site, including those portions of the Crab Orchard Site where Redco’s predecessor conducted manufacturing and research activities.

The participants have reached agreement on the terms of a consent decree for resolving the U.S.

Government’s share of RI/FS costs, which we expect will be lodged for entry with the United States District Court for the Southern District of Illinois in the coming weeks.

Further, as part of these negotiations, and in order to obtain the protections provided by the draft consent decree, we have reached agreement with GD-OTS on our contribution to the United States’ claimed past response costs, for an immaterial sum, and have executed separate settlement and escrow agreements to memorialize the parties’ agreement with respect to the United States’ response costs.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Following negotiations between GD-OTS, the U.S.

Government and remaining participants with respect to resolution of the U.S.

Government’s share of RI/FS costs, which was lodged for entry with the United States District Court for the Southern District of Illinois on January 10, 2025.

As part of these negotiations, and in order to obtain the protections provided by the draft consent decree, we have reached agreement with GD-OTS on our contribution to the United States’ claimed past response costs, for an immaterial sum, and have executed separate settlement and escrow agreements to memorialize the parties’ agreement with respect to the United States’ response costs.

Negotiations remain ongoing between us and GD-OTS regarding a potential resolution of GD-OTS’ claim for costs that it has incurred and expects to incur in performing its obligations under the AOC.

3 unchanged sentences

Insurers with contractual coverage obligations for this site have been notified of this potential liability and have been providing coverage, subject to reservations of rights.

Other Proceedings

LyondellBasell Chemical Leak

In July 2023, Crane Company, along with certain of its subsidiaries (“Crane”), were added as defendants in ongoing product liability/personal injury lawsuits filed by 58 victims of a 2021 chemical leak incident that occurred at a LyondellBasell facility in La Porte, Texas.

The multi-district lawsuits were consolidated for proceedings in state court in Harris County, Texas, and have been pending since 2021, when the initial set of defendants were sued.

The multi-district lawsuits were consolidated for proceedings in state court in Harris County, Texas, and were pending since 2021, when the initial set of defendants were sued.

Crane is alleged to have manufactured a valve involved in the incident.

Plaintiffs also added other defendants to the suits in July 2023 who allegedly either sold or serviced the subject valve or a valve accessory, and discovery for the newly added defendants began moving forward in February 2024.

Crane has valid defenses, and insurance coverage that attaches after a modest self-insured retention.

All of our insurance providers have been notified of this potential liability and have been cooperating with Crane as it engages in the litigation process.

We have entered into a preliminary agreement to settle with a portion of the claimants.

There is still uncertainty related to the ongoing litigation with the remaining claimants.

We have recognized a liability as of September 30, 2024 for the settled claims, as well as an estimate for the remaining claims.

The amount recognized to date and the ultimate settlement of the remaining claims is not expected to be material to Crane's financial statements.

In conjunction with the liability, a corresponding receivable was recorded as these matters are fully insured.

Crane had valid defenses, and insurance coverage that attached after a modest self-insured retention.

All of our insurance providers were timely notified of this potential liability and cooperated with Crane as it engaged in the litigation process.

An initial settlement agreement was reached with a portion of the claimants in September 2024, and final settlement agreements were reached with all remaining claimants in February 2025.

The entire settlement amount, except for our modest deductible obligation, was within our coverage limits and the insurance carriers have committed to fully fund the settlements.

We recognized a liability as of March 31, 2025 and December 31, 2024 for the settled claims.

In conjunction with the liability, a corresponding receivable was recorded as these matters were fully insured.

There is no material loss related to this matter as it is covered by insurance.

Marion Site Hurricane Damage and Recovery

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 three months ended March 31, 2025, we incurred expenses of $ 5.6 million primarily related to damages caused by the hurricane, which included professional fees to restore and maintain the site.

As of March 31, 2025, we have an insurance receivable of $ 8.4 million, which is net of the $ 0.5 million deductible.

On a cumulative basis, we incurred expenses of $ 28.9 million related to damages caused by the hurricane and received corresponding insurance recoveries of $20.0 million.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the components of Loss from natural disaster, net of insurance recoveries:

Three Months Ended

(in millions) 2025

Site clean-up and remediation costs $ 4.6

Repairs of property, plant and equipment 0.7

Impairment and rework of inventory 0.1

Total expenses and losses $ 5.6

Insurance recoveries to be received 5.6

Loss from natural disaster, net of insurance recoveries $ —

Insurance recoveries receivable, net of deductible as of December 31, 2024 $ 2.8

Expenses and losses incurred during the three months ended March 31, 2025 5.6

Insurance recoveries receivable, net of deductible (a)

(a) Included in Other current assets in the Condensed Consolidated Balance Sheets.

Other Proceedings

We regularly review the status of lawsuits, claims and proceedings that have been or may be asserted against us relating to the conduct of our business, including those pertaining to product liability, including government contracting violations, patent infringement, commercial, employment, employee benefits, environmental and stockholder matters.

3 unchanged sentences

If there is a reasonable possibility that a loss or additional loss may have been incurred for such matters, we disclose the estimate of the amount of loss or range of loss, disclose that the amount is immaterial, or disclose that an estimate of loss cannot be made, as applicable.

Other than as stated above, there were no additional liabilities to report.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Marion Site Hurricane and Recovery

In September 2024, our manufacturing site in Marion, North Carolina was directly affected by flooding from Hurricane Helene.

The extent of the damage to the facility is still being assessed but the loss, net of insurance recoveries is not expected to be material.

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.

These costs and insurance recoveries are included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.

The following table summarizes the estimated loss from this event, net of insurance recoveries:

(in millions) For the Three and Nine Months Ended September 30, 2024

Write-off of property, plant and equipment $ 2.9

Write-off of inventory 0.8

Total expense 3.7

Insurance recoveries receivable (a)

Loss from natural disaster, net of insurance recoveries $ 0.5

(a) A corresponding insurance receivable is recorded in Other current assets in the Condensed Consolidated Balance Sheets.

We believe that as of March 31, 2025, there was no reasonable possibility that a material loss, or any additional material losses, may have been incurred for such matters, and that adequate provision has been made in our financial statements for the potential impact of all such matters.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 unchanged sentence

Our debt consisted of the following:

(in millions) September 30,

(in millions) March 31,

2025 December 31,

Revolving facility $ 85.0 $ —

Total short-term borrowings $ 85.0 $ —

Term Facility (a)

$ 246.9 $ 248.5

Total current maturities of long-term debt $ 247.1 $ —

Term Facility (a)

Total long-term debt $ — $ 247.0

(a) Debt issuance costs totaled $ 0.6 million and $ 0.8 million as of September 30, 2024 and December 31, 2023, respectively, and have been netted against the aggregate principal amounts of the related debt in the components of the debt table above.

(a) Debt issuance costs totaled $ 0.4 million and $ 0.5 million as of March 31, 2025 and December 31, 2024, respectively, and have been netted against the aggregate principal amounts.

Credit Facilities – On March 17, 2023, the Company entered into a senior secured credit agreement (the “Credit Agreement”), which provided for (i) a $ 500 million, 5 -year revolving credit facility (the “Revolving Facility”) and (ii) a $ 300 million, 3 -year term loan facility (the “Term Facility”), funding under each of which became available in connection with the Separation.

2 unchanged sentences

The corresponding amendment established incremental revolving commitments in an aggregate amount of $ 300 million and refreshed the incremental capacity under the Company’s existing credit agreement.

The Company made principal prepayments of $ 1.9 million on the Term Facility during the nine months ended September 30, 2024.

The Company had net borrowings of $ 85.0 million under the Revolving Facility during the first nine months of 2024, with proceeds used primarily to fund the Vian and CryoWorks acquisitions and for general corporate and working capital purposes.

The Revolving Facility allows us to borrow, repay and re-borrow funds from time to time prior to the maturity of the Revolving Facility without any penalty or premium, subject to customary borrowing conditions for facilities of this type and the reimbursement of breakage costs.

5 unchanged sentences

The Credit Agreement also includes customary events of default, including failure to pay principal, interest or fees when due, failure to comply with covenants, any representation or warranty made by us or any of our material subsidiaries being false in any material respect, default under certain other material indebtedness, certain insolvency or receivership events affecting us and our material subsidiaries, certain ERISA events, material judgments and a change in control, in each case, subject to cure periods and thresholds where customary.

The Company was in compliance with all such covenants as of September 30, 2024.

364 -Day Credit Agreement - On August 11, 2022, the Company entered into a senior unsecured 364 -day credit facility (the “ 364 -Day Credit Agreement”) under which it borrowed term loans denominated in U.S.

dollars (the “Term Loans”) in an aggregate principal amount of $ 400 million.

During the first quarter of 2023, the Company repaid the remaining principal of $ 400 million under the 364 -Day Credit Agreement.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company was in compliance with all such covenants as of March 31, 2025.

Note 14 - Fair Value Measurements

5 unchanged sentences

Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities.

Level 2 assets and liabilities include over-the-counter derivatives, principally forward foreign exchange contracts, whose value is determined using pricing models with inputs that are generally based on published foreign exchange rates and exchange traded prices, adjusted for other specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data.

Level 2 assets and liabilities include over-the-counter derivatives, principally forward foreign exchange contracts, whose value is determined using pricing models with

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

inputs that are generally based on published foreign exchange rates and exchange traded prices, adjusted for other specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data.

Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

4 unchanged sentences

We do not hold or issue derivative financial instruments for trading or speculative purposes.

Foreign exchange contracts not designated as hedging instruments had a notional value of $ 19.8 million and $ 11.3 million as of September 30, 2024 and December 31, 2023, respectively.

Foreign exchange contracts not designated as hedging instruments had a notional value of $ 19.7 million and $ 18.3 million as of March 31, 2025 and December 31, 2024, respectively.

Our derivative assets and liabilities include foreign exchange contract derivatives that are measured at fair value using internal models based on observable market inputs such as forward rates and interest rates.

Based on these inputs, the derivatives are classified within Level 2 of the valuation hierarchy.

Such derivative receivable amounts are recorded within “Other current assets” on our Condensed Consolidated Balance Sheets and were $ 0.4 million and $ 0.1 million as of September 30, 2024 and December 31, 2023, respectively.

Such derivative receivable amounts are recorded within “Other current assets” on our Condensed Consolidated Balance Sheets and was $ 0.5 million as of March 31, 2025.

The Company had no such derivative receivable as of December 31, 2024.

Such derivative liability amounts are recorded within “Accrued liabilities” on our Condensed Consolidated Balance Sheets and was $ 1.1 million as of December 31, 2024.

The Company had no such derivative liability as of September 30, 2024.

Note 15 - Restructuring

In the fourth quarter of 2022, in response to economic uncertainty, we initiated modest workforce reductions of approximately 160 employees, or about 2 % of our global workforce.

We expect to complete the program in the fourth quarter of 2024.

Our restructuring liability was $ 2.3 million and $ 4.7 million, as of September 30, 2024 and December 31, 2023, respectively.

The Company had no such derivative payable as of March 31, 2025.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements