Q1 2023 Crane Company Earnings Call
Speaker 2: Greetings and welcome to the Crane Company first quarter of 2023 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
Speaker 2: If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jason Feldman, and best relations for Crane Company. Thank you. You may begin.
Speaker 3: Thank you, operator, and good day, everyone. Welcome to our first quarter of the year 2020 earnings release conference call. I'm Jason Feldman, Vice President of Treasury and Investor Relations. On our call this morning, we have Max Mitchell, our President and Chief Executive Officer, and Rich Maui, our Executive Vice President and Chief Financial Officer.
Speaker 3: We will start off our call with a few prepared remarks, after which we will respond to questions.
Speaker 3: Just a reminder that the comments we make on this call may include some forward-looking statements. We refer you to the cautionary language at the bottom of our earnings release and also in our annual report, Form 10-K , and subsequent filings pertaining to forward-looking statements. Also during the call, we will be using some non-GAAP numbers, which are reconciled to the comparable GAAP numbers and tables at the end of our press release.
Speaker 3: the accompanying slide presentation both of which are available on our website at www.craneco.com in the investor relations section. Now let me turn the call over to Max. Thank You Jason and good morning everyone thanks for joining the call today. Wow here we are the separation is complete an entirely new beginning for Crane Company.
Speaker 4: We last gave you an update on our March 9th investor day as we approached our successful separation on April 3rd.
Speaker 4: followed by the honor of my representing our global team by ringing the opening bell of the New York Stock Exchange on the 4th.
Speaker 4: Now it seems just like yesterday that we laid out the case for separation in March of 2022, but here we are 14 months later, having successfully executed on schedule.
Speaker 4: The separation was the logical next step in our multi-decade journey from a holding company to an integrated operating company, and now into two separate strong and focused independent businesses, technology leaders, each well positioned to outperform in its respective markets, and each equipped with strong management teams to drive continued success.
Speaker 4: I'm incredibly proud of how the corporate organization executed on the separation, on schedule and according to plan. My sincere thanks to the entire corporate team for their incredible efforts over the last year and now moving into post-separation support.
Speaker 4: And a quick reminder on why we believe Crane Company is such an exciting opportunity today.
Speaker 4: We have delivered decades of consistent and differentiated execution. We have an accelerating growth profile after years of relentless investment in our technology roadmaps, each aligned with key secular growth drivers in our end markets.
Speaker 4: We have a long track record of creating value through acquisitions and capital deployment more broadly. And we have a very strong balance sheet today giving us significant financial flexibility.
And that should lead to double-digit average annual core profit growth with potential upside from capital deployment. And starting with net debt to EBITDA at about 0.2 times the capital deployment opportunity is significant. Turning to the first quarter, we had a great start to the year, positioning us extremely well for the coming quarters and years ahead. As you saw in our press release last night, we reported adjusted EPS of $1.25.
8% core sales growth, a record 18.5% adjusted operating margin, and we raised the midpoint of our adjusted EPS guidance by 20 cents to a range of 360 to 390. And we feel very confident in this outlook for the year.
We still see continued solid demand across most end markets, but we continue to remain guarded, watching carefully for any signs of softening, particularly in our shorter cycle businesses. From a cost and inflation perspective, as you can see from our continued margin strength, we have been appropriately assertive with pricing actions across all of our businesses, and we continue to fully offset the impact of inflation on both a dollar and margin basis.
Overall, we continue to execute extremely well and we have proven that we can operate successfully in a wide range of market conditions.
and sales are still somewhat constrained by the supply chain, particularly around active and passive electronic components needed for printed circuit boards.
The supply chain status is generally unchanged compared to last quarter, too mildly improving in some areas. We do expect supply chain constraints to ease over the course of the year, but at a very gradual and measured pace.
We remain very comfortable with our forecast and outlook for this business.
Over the last three weeks, I've visited nearly all of our aerospace electronics sites with Alex Akala and Jay Higgs to check in on the fantastic progress our teams continue to drive.
Just a few examples of what we saw include our landing brake control solution that continues to track to plan on the new F-16 brake control upgrade design that requires unique packaging requirements to meet the needs of an existing space envelope. And our technologists have clearly differentiated themselves from the competition by developing an innovative solution for that challenge while delivering on significant performance improvement. And the factory is progressing with readiness plans to ramp up to immediate full rate production in 2026 with annual sales of roughly $30 million in the first year and an expected life-
program life of five to seven years. In our modular power business, our team continues to win in new space applications.
while also continuing to make progress on our development roadmap for a complete family of power conversion products with wide input voltage ranges across high and low power families and using modular architecture across multiple standards and features focused on military and space applications with radiation hardened and high reliability designs.
This business has a target to capture more than $125 million in cumulative sales over the next decade with these newer products. And in the interim, we're driving enhanced channel management to take share with our existing product offerings.
In our defense high-power solution, we also reviewed our technology roadmaps and development, as well as the facility readiness plans, which are on track to support the significant ramp-up in support of the four large AESA radar winds we have secured to date, all ramping up over the next few years. For more information, visit www.fema.gov
As well as significant traction and progress working on a funnel of new opportunities. Many related to defense electric vehicle readiness. Where we already have a substantial presence on demonstrator programs and prototypes. Winning our seventh such demonstrator this week with a 120 kilowatt bi-directional DC to DC converter.
In our fluid management solution, we continue to benefit from steadily increasing aftermarket demand for pump and fuel flow transmitter products used on commercial jet engines and airframes. And we continue to successfully progress our many technology demonstrator programs for the sixth generation fighter fuel, coolant, and lubrication systems.
as well as for platforms focusing on demonstrating hybrid and pure electric propulsion.
We are also preparing our site for the expected higher volume of repair activity on DTF pumps related to the A320neo engine overhauls ramping up over the next several years.
And in our microwave business, we reviewed our continued strong progress on existing program wins with more complex integrated microwave assemblies at higher, increasing demanding frequencies, as well as our ramp up plans for increased demand from the Patriot missile program.
Just an incredible and exciting set of visits with our teams. The outstanding passion they have for the business and the technology investments we continue to drive supports our 7 to 9% growth rate in this business moving forward.
At Process Flow Technologies, we are seeing some moderation in order rates as expected and consistent with what we communicated in March.
Core orders still increased about 4% in the first quarter, and we have a very strong backlog. But those order rates have decelerated from double-digit rates in the second half of last year. Most of the slowing has been in the UK and Europe , with other regions remaining fairly solid.
But the growth story is no different at Process Flow Technologies, where we've continued to invest for the future with new product introductions released at record pace and with significantly higher margins.
New product vitality metrics continue to improve year after year and in an extremely strong position in core target markets
of chemical, pharmaceutical.
water, wastewater, and industrial automation. And those key markets now comprise nearly two-thirds of the business.
with accelerating new product development, focused on increasing exposure to these target markets, and giving us high confidence in the 3 to 5 percent growth profile through the cycle and the substantial opportunity to further expand margins.
A lot of exciting developments in this business as well. We are outperforming the market and gaining shares driven by new product innovations. For example, you may have seen the press release issued yesterday morning by Chart Industries highlighting a new cryogenic valve for liquid hydrogen applications that we introduced and that Chart tested and validated.
This is just another step in building the hydrogen business we discussed at this year's investor day event.
And we are in the process of launching five additional new product lines over the next 12 months all targeting a market that is growing at more than 15% annually.
We are already working closely with several key customers to introduce these products to help solve our customers' ongoing performance challenges.
In wastewater, we continue to see adoption of our new high efficiency NV motor platform.
In wastewater, we continue to see adoption of our new high efficiency NV motor platform. And we are on track.
to triple Envy sales this year with further upside in 2024 after we launch a larger size range up to 75 horsepower late this year, further strengthening our position in this billion dollar served market.
And in addition to new products, we are gaining traction with our front-end investments, leveraging our improved product portfolio to upgrade our distribution network into municipal and commercial markets. In the chemical space, we have great momentum with orders up in the double digits, with growth led by our portfolio of new valve and specialty pipe solutions that have differentiated sealing technology.
to solve reliability challenges in corrosive, abrasive, toxic, and hazardous environments.
Our innovative Ltorq product has just been launched and it is already installed by key customers in the Americas and Asia.
Our recently launched FK Triax valve has also continued to gain traction with our project funnel doubling So far this year given the valves unique ability to solve leakage and flow problems in severe service applications.
In our pharmaceutical business, we continue to strengthen our position by expanding our product portfolio to solve leakage and reliability problems in process media, steam sterilized applications, and bioprocessing.
New products launched this year will include a new hygienic ball valve.
and an expanding offer of diaphragms targeting the high-growth bioprocessing segment and delivering accretive margins.
Just continued excellent momentum in process flow technologies.
And in engineered materials, really no change to our view for the year.
So again, off to a fantastic start post-separation and poised to drive accelerated growth margin expansion with optionality from our balance sheet strength.
Let me turn the call over now to Rich for some more specifics on the quarter. Thank you, Max, and good morning everybody. Overall, an outstanding quarter with 8% core sales growth, driving 27% adjusted operating profit growth, and once again achieving record adjusted margins at 18.5% that improved 460 basis points compared to last year.
and driven by excellent performance across all businesses. I will start off with segment comments that will compare the first quarter of 2023 to 2022, excluding special items as outlined in our press release and slide presentation. At Aerospace and Electronics, first quarter sales were very strong, increasing 15% compared to last year.
to 180 million, and segment margins of 20.9%, increasing 300 basis points compared to last year, primarily reflecting strong leverage on the higher volumes, as well as strong pricing and productivity gains.
Despite the impressive increase in core sales growth, we along with the rest of the aerospace industry still remain somewhat capacity constrained due to continued supply chain issues as we properly planned for in our guidance.
The combination of supply chain constraints and strong demand drove our backlog up another 27% to 645 million. In the quarter, total aftermarket sales increased 21% with commercial aftermarket up 32% and military aftermarket down 5% on program timing.
and OE sales increased 12% in the quarter with 17% in commercial and 8% in military.
At Process Flow Technologies, sales of 271 million decreased 13%, driven by the 20% impact from the divestiture of crane supply in May of last year and a 3% impact from unfavorable foreign exchange. At Process Flow Technologies, sales of 171 million decreased 13%, driven by the 20% impact
Core growth for process flow technologies was very strong at 10% and was broad-based across the segment.
Record adjusted operating margins of 23.4% increased 710 basis points from last year, primarily reflecting strong pricing, leverage on the higher volumes, and delivering on productivity gains. Continued excellent execution by our teams in all areas, and supporting an 80 basis point improvement to our full year margin guidance, which is now 18%.
At engineer materials sales of 62 million decreased 12% compared to the prior year as expected. Operating profit margins decreased 70 basis points to a solid 18.3% driven by lower volumes but an impressive deleverage rate. Transportation and building products markets remained strong offset by RV which declined in line with industry.
separation capital structure is the same as when we described it earlier this year.
After separation related transactions, Crane Companies only debt was a $300 million pre-payable term loan with cash on hand of approximately $235 million. We also have a new five-year, $500 million revolving credit facility that is currently undrawn. Very little net debt.
We already repaid $35 million on our term loan earlier this month, and a lot of financial flexibility with more than $1 billion in M&A capacity today, and reaching as much as $4 billion by 2028. While this is more financial flexibility than we have had historically, our capital allocation strategy is unchanged.
We will deploy our capital with the same strict financial and strategic discipline that we have always employed, prioritizing internal investments for growth followed by M&A and returns to shareholders.
Of course, the timing of acquisitions isn't predictable, and both actionability and market conditions can change quickly.
However, given our robust pipeline of potential opportunities along with our solid organic growth profile, our internal goal would roughly double the size of our growth platforms over the next five years.
Our teams are motivated and re-energized by our future post-separation, and we look forward to delivering on this vision.
We also have a commitment to return cash to our shareholders. As outlined in our press release last night, our initial dividend for Crane Company will be 72 cents per share annually, or 18 cents per share quarterly, which reflects a dividend payout ratio of approximately 20%.
We do expect to grow the dividend in line with earnings to provide a stable and attractive return to our shareholders, while ensuring that we have the capital flexibility to continue our internal investments and pursue acquisitions.
Now turning to our 2023 guidance. I gave a lot of detail on our guidance call in January and for the benefit of my voice and your ears today, I'm just going to highlight the changes.
For modeling purposes, I would point investors to the detail in the fourth quarter earnings script, as well as the details we provided at investor day.
We now expect 2023 sales to increase approximately 5% up from the prior guidance of 3%. That's driven by one point of higher core sales growth, along with foreign exchange that is now neutral compared to last year rather than the one point headwind we originally had in our guidance. Segment details is provided in the slides.
But while we took up core sales expectations for all three segments, process flow technologies had the largest increase given the very strong first quarter results.
We expect total company adjusted segment margins of 18%, up 60 basis points from our prior view, again led by process flow technologies, new expectation for higher growth, and continued solid execution.
Overall, excellent operating leverage across the businesses.
And the only other notable change was corporate expense, now expected to be $70 million for the full year.
While there are a few components of this change, the biggest driver is higher compensation expense given our revised outlook. Overall, we expect adjusted EPS of $3.60 to $3.90 with adjusted EBITDA of $335 million.
So a great quarter and excellent start to the year. We are extremely well positioned today. Record margins leveraging long term future 4 to 6 percent core growth at 35 to 40 percent.
and an execution track record that demonstrates we can deliver in any environment, and a very strong balance sheet and free cash generation to support value creating capital deployment.
Operator, we are now ready to take our first question. Thank you. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line and in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, please press star 1 on your telephone keypad.
It may be necessary to pick up your handset before pressing the star keys. We ask that you keep to one question and one follow-up each and invite you to rejoin the queue for additional questions. Our first question comes from the line of Damien Karas with UBS. Please proceed with your question.
Good morning, Max, Rich, and Jason.
Good morning. Good morning. Hey, Damian. Congrats on a really strong start to the year. I want to start by asking you about these PFT margins and the big step up to 23.4%. You basically ripped past your long-term target. I'm wondering if there was anything one-off or non-repeatable in nature that...
Yeah, so thanks, Damian. Yeah, look, we obviously are really pleased with the margin performance overall, modestly surprised to the upside, I would say, which is why we took up the target by 80 basis points. Much of the outperformance was timing. March was particularly strong for us.
Supply chain cooperated and we were able to get more volumes out than we expected. So we had a really solid March.
I would also point out that we didn't spend at the levels that we planned. Still a challenging environment to get the right people on board in the quarter. And I would add planned investments for growth also are going to increase as we look through the balance of the year.
You know, if you go back to our investor day, and we've said this a number of times, including in our prepared remarks, we do expect to see short cycle slowing in PFT as we move through the year. In March, I would say things continued to be strong, but in April , as expected, we did start to see that short cycle begin to slow. So, you know, with that lower volume level, we would expect obviously, you know,
a little bit cautious here just given the uncertainty in the environment. It's possible we do better than we expect or than we've outlined but we really want to see a couple of quarters here before we get ahead of ourselves. Let me add a little bit Damian just to be repetitive to what Rich said but just say there was no one-off. I would say that it just everything kind of aligned to come in very very strongly here as Rich mentioned.
everyone lined up in that business and some of our other growth initiatives because we really set ourselves up for successful all-term to invest for growth invest in our teams and in this environment of hiring and finding the right people it's taking a little longer than anticipated that read through favorably so that's going to reverse
the back half of the year. And then as Rich mentioned, we still feel firmly that we've got the markets right here in terms of how we're predicting a gradual decline year over year and sequentially as the back half of the year from order rates. You're seeing some of this
I don't want to call anybody out, but if you look at some of the major chemical providers today, they've talked about it this quarter. There's just a bit of a slowing that's taking place, and I think we've properly expected it and are planning for it.
that's what we think is going to take place through the balance of the year. So you won't quite see that same level of margin performance as we move forward.
Understood. Thank you for all the color.
And switching gears to A&E, so you raise the guide by one point, which is something like 6 million in sales.
Yeah, the 50 million, it's not like there's a $50 million...
the back all the sitting there that we can just clearly identify. This is an average that we're just saying if we had improvement in supply chain we would be able to clear and right now that is really not
We're not seeing the significant improvement in the supply chain. We planned for it this way. We had hoped that it would be better, but quite honestly, in the active and passive components, it's not worsening by any stretch. So, I want to make sure that everyone clearly understands. It is not worsening. Lead times may be slightly improving, but it's the one-off components.
that we continue to have to chase. There's surprises here or there in terms of the supply base rescheduling, a printed circuit board waiting on one component. We are active. This has been a couple years now coming out of COVID.
where our teams are doing a phenomenal job. Scanning the globe, finding components, helping sub suppliers with their supply chain. That is the norm right now, and that's continuing. I just do not see significant improvement yet. I don't see it worsening and quite honestly, I don't see it worsening.
You know, I think that it's going to continue through 2023, and that's what we have in our OutlookMeat
Appreciate it. I'll hop back in the queue. Yeah, I would just add one thing is that when you look at the sales in the first quarter here, we had a fairly easy comp if you look at the quarterly sales from the prior year as well. So the 14.8% we're very happy with, but it was a bit of an easier comp.
Thank you. Our next question comes from Matt Somerville with DA Davidson. Please proceed with your question.
Thanks. Good morning. With respect to PFT.
Do we expect an immediate step function move down in Q2 in margins or more of a gradual step down you know throughout the year? And I guess at the end of the day what I'm trying to get a feel for is this is probably the biggest kind of swing factor in the model if you will between how these quarters kind of cadence out
Looking forward so to the extent you were able to help you know talk about earning seasonality I realize you're not trying to give quarterly guidance But is there any way that you can frame this up to better help us think about you know how these quarters should look for? for CR going forward
Yeah, you know, I would say, and we typically don't give quarterly guidance, right, but if I was to frame it up, it'll be more gradual than a big step chain. So you'll see it come down a bit in Q2 and then a little bit from there, but stronger in Q2 relative to the second half.
If that helps. Yeah, no, it does and just sticking with process for a moment. I was wondering if you could provide a little bit more specific commentary around the key end markets and the relative strength that you're seeing there. When you think about, you know, the 4%, you know, kind of order growth you saw.
FX neutral in the quarter, what end markets are really leading that? What geographies? You mentioned a little bit of slowing in Europe and the UK. Has that business actually turned negative for you guys? Just trying to get a better geographic kind of end market for PFT. Thank you.
Yeah, sure. So maybe I'll give some color here. So I would say MRO continued to be pretty strong or through the quarter. I would say, consistent with what we were seeing coming out of the fourth quarter. Projects down slightly, I would say, overall tracking to what we had thought coming into the coming into the quarter.
Compared to last year, if we were to peel that back in the Americas, we were a bit stronger, as well as in the Middle East, although that's a bit smaller for us, but Europe down slightly, I would say. And China was a bit weaker in the quarter, but again, I would say nothing overly different or concerning relative to what we expected.
We still feel like we're going to have that more modest outlook on MRO as we move through 2023, as Max just pointed out and some of the color I provided. We didn't see any order cancellations, Matt, or major delays in project activity. In Europe , to your point, a couple of the key players in Europe continue to look at their cost base and in some cases are reducing capacity, so it's something that we're watching closely. You may find yourself just as Process F
You know, I would also say that in Europe , it's a largely MRO driven business at this time, you know, for those reasons. So there's not a lot of project activity that we are seeing in Europe . If anything, it's a little bit of increased project activity we should see in the Americas.
No significant impacts yet from China reopening. Hopefully we do see some of that as we close out the year or head into 2024. And then on the commercial side, our wastewater pumps business here domestically just continuing to see I think I would say solid demand. I think they're performing from a share perspective incredibly well. So our growth profile there has been
Thanks for the color, Rich.
Got it. Thanks for the color, Rich. Yeah, you got it.
Rich. Yeah, you got it.
Thank you. Ladies and gentlemen, as a reminder, if you'd like to join the question queue, please press star 1 on your telephone keypad. Our next question comes to the line of Nathan Jones with Stifel. Please proceed with your question.
This is Adam Farley on for Nathan Jones. I wanted to start with inflation. There's volatility in various raw materials in the quarter. I think steel is up and maybe some energy costs are down. So are you seeing inflation accelerate?
decelerate or stay about the same? Yeah, you know, it's a we've got some movement up and down. I mean, on average in the quarter, probably a year over year basis up around 4%. Seeing some favorability and freight and resin in our in our engineering materials business year over year and offset with
probably leading with the electric components like I mentioned, active passives, continue to see inflationary pressures there. Some of the metals around steel and aluminum.
But about 4% in the quarter. OK, that's helpful. And then turning to capital deployment, you highlighted very strong ability, I think $1 billion in 2023 going up to $4 billion 2023 to 2028.
May, could you describe your M&A funnel of opportunities today? With the separation complete, can we expect an accelerated level of M&A activity in the near term? Are there any macro factors, maybe putting a damper on any activity in the near term? Thanks, Adam. Thanks for the question. So what 2017 will look like when you heard the question, what would be the active planning in the near term over most existing Uh, Drugs.
As I've been saying consistently, you know through the separation we put any M&A on hold. We were active in our continued process but we waited for the separation. So what has increased? Our activity has increased now around moving forward with those deals that are active to conduct due diligence and pursue. So things are active.
I would not say necessarily that it's going to lead to action. We're always going to remain disciplined. We're only going to do what makes strategic sense, has the proper return on invested capital. I would say that the environment is friendly for us right now with making it more difficult for private equity, some of the other strategics where their leverage is.
negative reactions. So I think that's just helping to make sure we frame up the level of risk that we're willing to take on but all very positive here. There's a lot of activity and we're working it hard.
I couldn't say that that's going to extrapolate quite yet into completed deals, but we'll see.
Okay, thank you for taking my questions. Thanks, Adam. Thank you. Thank you. Our next question is a follow-up from the line of Damien Karas with UBS. Please proceed with your question. Okay. Thank you.
questions. Thanks Adam. Thank you. Our next question is a follow-up from the line of Damien Karas with UBS. Please proceed with your question. Hey Damien.
Thank you guys.
So I have a follow up on your comments regarding short cycle activity. I was wondering if you could maybe just put any numbers around kind of the level of volume declines that you are sort of baking into the guide for this year. And if you could just remind us on sort of the margins kind of on the short cycle versus P.I.P.
that you can see what our first quarter quarter growth was, relative to guidance for the rest of the year. And most of that kind of sequential deterioration, we would expect this here to be from the short cycle. And on the long cycle side, we're a little more immunized in the near term because of the backlog. Right, so you'd see it in the orders first.
But on the long cycle side, I don't think we'd see much slowdown in sales until the tail end of the year and into 2024 if that does in fact slow down. Okay, great. And then a follow-up question on capital allocation. Thanks for the color on an M&A opportunity.
But, you know, so it should.
deals not materialized in the near future? How are you thinking about pulling some triggers on buybacks?
Sure, great question. It's still too early, you know, we certainly have a history of
share buyback when it makes sense. We will certainly consider other options if that is needed. Right now we think that there will be some M&A opportunities that we'll be able to deploy, but of course Damian we're going to do the right thing and not have a lazy balance sheet if it comes to that and
and pursue those options. Thanks again guys, best of luck. Thanks Damian, appreciate it.
Thank you. Our next question is a follow-up from the line of Matt Somerville with DA Davidson. Please proceed with your question.
I was just wondering maybe if for Crane overall if you could talk about whether or not you actually had price cost positivity on the margin and maybe on a relative basis how much that may have driven margin performance in the court.
Yeah, so you know what I would say, Matt is it was accretive to margins. You know, I wouldn't say it was incrementally accretive relative to how we were performing last year. You know, we had good strong price discipline as we moved through last year.
You know, we have targeted price increases that sort of cadence their way through and you know, we had a couple more I would say that that occurred towards the end of the year last year that we benefited from obviously coming through the first quarter So perhaps a little bit more but I would say on the margin. It's similar to our performance last year So a creed of overall to margins. Let me add this Matt though I would love like to
add on to and how to think about this from a historic crane standpoint. Of course, we've been appropriately offsetting inflation and rightfully so and we're early, hard, fast and executed through 21, 22. What has taken place over many years now is our continued evolution at
value-based selling and understanding the full value. So as we've continued to develop stronger technology roadmaps.
that are more valued by our customers. We have continued with our crane business system to put process around this.
that are more valued by our customers. We have continued with our Crane Business System to put process around this.
to educate our teams on how to price for value. And I would say that we continue to become better and better at seeing that read through. So it's not just, you know, price, just offset inflation, it's the mix of product that's changing, it's what we're winning on, and it's the pricing levels that we're setting, and it's what we're setting for value.
that we're getting for our solutions. I just think we've gotten exponentially better. And I think you, I would say that we, I have a clear expectation that that will continue as we move forward for sure. So hopefully that adds a little bit too. Yeah, I appreciate that.
Just to make sure that I have it down correctly, remind me, CR is subject to what kind of potential lockups as we think about strategic actions on non-core businesses. Is there any, does anything preclude you from buying back stock? I realize.
I think the company can't be sold for two years or something like that. But can you just walk through all those things so we all have that level set, please?
There's nothing, uh...
Yeah, there's something that, yeah, from a, like, you're asking about, I don't know.
is something that yeah from a you like you're asking about an approach Matt
No, I guess with with the spin in the tax free status of the spin, I would imagine there's, you know, a two year window where you know, things can happen. Like I don't think crane can get sold. If there were conversations, if there were conversations prior, there's some rules that kick in, but we've had no conversations. There's nothing locking us up for any period.
No, I guess with with the spin in the tax free status of the spin, I would imagine there's, you know, a two year window where you know, things can happen. Like, I don't think crane can get sold. If there were if there were conversations, if there were conversations prior, there's some rules that kick in, but we've had no conversations. There's nothing locking us up for any period. There's no constraints that I'm aware of Matt.
Okay, perfect. Thank you guys. Yep. Thank you, Matt. Thank you. Ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to Mr. Mitchell for any final comments.
Thank you very much. So a solid start in Q1 and excellent results. Life post separation. We approached our corporate conscious uncoupling with loving care.
And we remain deep friends with our NXT counterparts. Our associates are fine and coping well.
But now it is time to go our own ways in new directions of value creation.
the late great Burt Bacharach said, knowing when to leave may be the smartest thing anyone can learn.
Now post separation, new crane is now turning a fresh course and ready to deliver on accelerated growth and enrichment.
And our first quarter results are a testament to our progress. While we are also dating again and looking for new partners to join our strategic platforms of aerospace, electronics, and process flow technologies. Do you like that Rich? I loved it. It was great.
I look forward to speaking to you next on our Q2 call in July . Thank you all very much for your interest in CRANE. Have a great day. Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.