Ahmet Nayirci

Ahmet Nayirci asked for an update on Crane Company's total power generation market exposure, including the impact of adding nuclear exposure with PSI, and how nuclear power generation is changing. He also questioned the implied Q2 growth given the Q1 guidance and the 45%/55% first-half/second-half earnings split, and whether PFT's EBIT is expected to grow disproportionately from revenue in 2026 due to margin gap closure.

Answer

Alex Alcala (SVP and COO, incoming CEO) explained that traditional power generation (combined cycle plants) continues to drive growth, while nuclear exposure is doubling with Reuter-Stokes, benefiting from plant restarts, new AP1000 construction, small modular reactors (SMRs), and license extensions. Rich Maue (EVP and CFO) noted that Q1 and Q2 would face headwinds from the non-repeating hurricane insurance recovery. He also stated that PFT's 30%-35% leverage target applies to legacy business, with incremental benefits from Druck, Panametrics, and Reuter-Stokes expected more in the second half of 2026.