Greg Nalbandian

Greg Nalbandian (Wolfe Research) inquired about the strategic implications of renaming Aerospace and Electronics (A&E) to Aerospace and Advanced Technologies (AAT), specifically regarding the widening aperture for adjacent technologies and strategic direction. He also asked about the sequential decline in Process Flow Technologies (PFT) backlog, particularly in chemicals, and the outlook for PFT end markets in 2026.

Answer

Alex Alcala (EVP and COO, Crane Company) explained that the AAT renaming positions the company for more deals like Druck, expanding into lab-based calibration and high-growth industrial applications, aiming to build out the segment with differentiated, high-technology products. For PFT, he noted continued strength in wastewater, cryogenics, pharma, and power generation. Regarding chemicals, he observed varied regional performance, with modest growth in the Americas and Middle East, but continued sluggishness in Europe and parts of Asia, expecting to work through a trough in 2026 without a significant upturn.

Greg Nalbandian asked for more details on the strategic direction and adjacent technologies Crane Company will pursue following the renaming of Aerospace & Electronics to Aerospace and Advanced Technologies (AAT). He also questioned the outlook for Process Flow Technologies (PFT) end markets in 2026, particularly regarding the continued decline in chemical market backlog.

Answer

Alex Alcala (SVP and COO, incoming CEO) explained that the AAT renaming positions the company for more deals like Druck, expanding into lab-based calibration and high-growth industrial applications while maintaining focus on proprietary, differentiated technologies. For PFT, he noted continued strength in wastewater, cryogenics, pharma, and power generation, but a cautious view for chemicals, expecting a trough-like environment in 2026, with varied regional performance (Americas and Middle East showing modest growth, Europe and Asia Pac remaining sluggish).