Chicago, Illinois – In a strategic move that has caught the attention of investors, Crane (NYSE: CR) recently announced its decision to split into Crane and Crane NXT (NXT). Since then, the company has been actively pursuing growth opportunities in its Process Flow (PF) segment and has launched a new merger and acquisition (M&A) program. The market has responded positively, with the company’s shares soaring over 60% higher since the announcement, outperforming its industrial sector peers.

The pivot towards growth and margins in the PF segment has been a key focus for Crane, as it looks to realign its business towards more lucrative opportunities. By prioritizing markets such as LNG, hydrogen, pharmaceuticals, water, automation, and sustainable chemicals, Crane aims to capitalize on emerging trends and demand in these sectors. The company has also been investing in capabilities for hydrogen-related projects, positioning itself for growth in industries looking to shift towards more sustainable energy sources.

On the aerospace and electronics (AE) front, Crane is also making significant strides. With a platform-agnostic approach to product development in the aerospace industry, the company is well-positioned to capitalize on the long-term growth opportunities in the sector. Despite near-term concerns about production delays in the aerospace market, Crane has the flexibility to shift its focus to aftermarket sales, ensuring continued revenue streams and margin growth.

Looking ahead, Crane’s multi-year growth strategy includes active participation in M&A activities to drive expansion and innovation. With a focus on achieving sustainable margin levels and market opportunities, the company aims to deliver strong revenue growth and profitability in the coming years. However, the challenge lies in meeting market expectations, especially in terms of valuation and revenue growth projections.

Overall, Crane presents investors with a compelling growth story backed by improving fundamentals and a clear path towards sustained growth and profitability. While concerns exist around valuation, the company’s track record of delivering positive results and outlining future growth prospects make it a stock to watch for those keen on long-term investments in the industrial sector.