Matt J. Summerville

Matt J. Summerville asked about Process Flow Technologies' (PFT) organic growth expectations, differentiating between non-chemical and chemical segments, and the specific outlook for the chemical end market, including how Crane Company views its exposure. He also inquired about the key drivers behind PFT's margin upside in the quarter and how these levers might impact next year's performance.

Answer

Alex Alcala, EVP and COO, detailed strong double-digit growth in non-chemical PFT markets like wastewater (driven by infrastructure investment), cryogenics (semiconductors, space launch), pharmaceuticals (reshoring, GOP-1 drug project), and power (AI data centers, natural gas plants). For chemical markets, he noted North America and the Middle East as positive, while Europe and China were softer but stable, with expectations for improvement next year. Alcala attributed PFT's margin expansion to continuous innovation, new product launches in differentiated markets, commercial excellence through value pricing, and relentless operational excellence, including effective management of tariff dynamics.

Matt J. Summerville followed up on the margin upside observed in Process Flow Technologies (PFT) during the quarter, asking for key drivers such as price-cost mix or cost reduction, and how these levers might influence next year's performance.

Answer

Alex Alcala, Executive Vice President and Chief Operating Officer, attributed PFT's margin expansion to continued innovation, growing new product sales in differentiated target markets, commercial excellence with value pricing, and relentless operational excellence. He also highlighted the team's effective management of tariff dynamics through pricing and supply chain strategies.