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CRAWFORD UNITED Corp (CRAWA)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered record results: revenue $46.85M (+24.5% YoY), operating income $7.33M (+43.3% YoY), net income $5.13M (+56.2% YoY), and diluted EPS $1.44; gross margin expanded to 31% from 28% YoY .
  • Wall Street consensus was light and the company posted decisive beats: EPS $1.44 vs $0.94 consensus; revenue $46.85M vs $40.20M; EBITDA As Defined $9.31M vs EBITDA consensus $6.50M; all indicate broad-based outperformance (values with asterisks retrieved from S&P Global)*.
  • Year-to-date (H1 2025) momentum: revenue $90.17M (+18.5% YoY), operating income $12.22M (+26.1% YoY), net income $8.26M (+31.5% YoY), diluted EPS $2.32 .
  • Management emphasized strategy execution and acquisition pipeline: “sales, gross margin, net income, earnings per share and EBITDA As Defined all reached record highs… well positioned… with an eye towards additional acquisitions” .

*Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Record Q2 performance across sales, gross margin, net income, EPS, and EBITDA As Defined, driven by both segments’ execution .
  • Margin expansion: gross margin improved to 31% from 28% YoY; operating margin rose to 16% from 14% YoY .
  • Strong momentum heading into H2: H1 2025 operating income up 26.1% YoY and EPS up ~31% YoY, supporting confidence in long-term priorities and M&A positioning .

Quote: “We are pleased with the ongoing success of our business model and remain confident in our ability to achieve long-term strategic priorities.”

What Went Wrong

  • SG&A growth outpaced sales YoY in Q2 (SG&A $7.19M; 15% of sales vs 14% in Q2 2024), partially diluting operating leverage despite strong revenue gains .
  • Limited sell-side coverage: only one estimate for EPS and revenue in Q2 2025, which can increase volatility around results and reduce visibility for institutions (one estimate each for EPS and revenue)*.
  • No formal numeric guidance ranges were provided; investors must rely on qualitative commentary and trailing performance for forward outlook .

*Values retrieved from S&P Global.

Financial Results

Actuals vs Consensus (Q2 2025)

MetricActual Q2 2025Consensus Q2 2025Surprise
Revenue ($USD)$46.85M $40.20M*Beat
Diluted EPS ($)$1.44 $0.94*Beat
EBITDA As Defined ($USD)$9.31M EBITDA Consensus $6.50M*Beat

*Values retrieved from S&P Global.

Notes:

  • Company-reported “EBITDA As Defined” is a non-GAAP metric with specific credit facility exclusions; consensus EBITDA may use standard definitions and is not directly comparable .

Quarterly Trend (Oldest → Newest)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD)$37.39M $43.31M $46.85M
Operating Income ($USD)$4.74M $4.89M $7.33M
Gross Profit ($USD)$10.30M $12.06M $14.52M
Gross Margin (%)28% 28% 31%
Net Income ($USD)$3.95M $3.13M $5.13M
Diluted EPS ($)$1.11 $0.88 $1.44
EBITDA As Defined ($USD)$6.42M $6.81M $9.31M

Additional KPIs

KPIQ4 2024Q1 2025Q2 2025
Net Income Margin (%)11% 7% 11%
Cash from Operations ($USD)N/A$0.41M*$6.81M*
Capital Expenditure ($USD)N/A$0.41M*$1.51M*

*Values retrieved from S&P Global.

Segment Overview (Qualitative)

SegmentCommentary
Commercial Air Handling EquipmentDesigns, manufactures, and installs large-scale air handling solutions and HVAC coils, primarily for hospitals and universities .
Industrial & Transportation ProductsPrecision components and coatings for aerospace/defense; branded hose products across materials and end-markets .

No segment revenue/margin breakdown disclosed in Q2 press materials .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company-level guidance (revenue, margins, EPS)FY 2025Not disclosedNot disclosedMaintained (no formal guidance provided)

Earnings Call Themes & Trends

Note: No CRAWA Q2 2025 earnings call transcript was found in the document catalog; themes reflect press releases and prior quarter materials .

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Margin expansionQ4 2024 gross margin 28%; operating leverage improving Gross margin 31%; operating margin 16% Improving
M&A strategyTwo 2024 acquisitions; “zero senior bank debt” by year-end Record results; “eye towards additional acquisitions” Active pipeline
End-market demandHospitals/universities; aerospace/defense exposure Continued diversified demand across healthcare, aerospace, transportation, energy Stable-to-strong
Sell-side coverageLimitedOne estimate for Q2 (EPS/revenue)*Limited coverage persists

*Values retrieved from S&P Global.

Management Commentary

  • “Our sales, gross margin, net income, earnings per share and EBITDA As Defined all reached record highs this quarter. We are pleased with the ongoing success of our business model and remain confident in our ability to achieve long-term strategic priorities.” — Brian Powers, President & CEO .
  • “Crawford United is well positioned to pursue opportunities for increased revenue and profitability, always with an eye towards additional acquisitions.” — Brian Powers .
  • “In the first quarter of 2025, we surpassed our prior record for quarterly sales by more than $3.8 million.” — Brian Powers .
  • FY 2024: “We completed two acquisitions to strengthen our presence in the aerospace and defense market, yet we ended the year with zero senior bank debt for the first time since 2017.” — Brian Powers .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available in the document set; no public Q&A details could be verified [ListDocuments returned none for earnings-call-transcript in Q2 window].
  • Management’s press communications highlight margin expansion and disciplined M&A; no numeric guidance ranges were provided .

Estimates Context

  • EPS: Actual $1.44 vs consensus $0.94 — significant beat*.
  • Revenue: Actual $46.85M vs consensus $40.20M — significant beat*.
  • EBITDA: Company “EBITDA As Defined” $9.31M vs consensus EBITDA $6.50M — strong outperformance with definitional differences to note *.

Where estimates may need to adjust:

  • Given the magnitude of the beat and H1 momentum, sell-side models likely need higher FY revenue and EPS, with updated margin assumptions reflecting 31% Q2 gross margin and 16% operating margin *.

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Strong fundamental momentum: Q2 revenue and EPS materially beat consensus and expanded margins imply improved operating efficiency and pricing/mix *.
  • Earnings power reset: H1 EPS at $2.32 and EBITDA As Defined of $16.12M suggest upward revisions to FY expectations are warranted *.
  • Balanced growth strategy: Management’s explicit focus on acquisitions alongside organic margin gains supports a compounding cash flow profile .
  • Watch SG&A discipline: SG&A rose to 15% of sales in Q2; maintaining leverage will be key to sustaining operating margin at mid-teens .
  • Limited coverage creates inefficiency: With only one estimate, continued execution could catalyze multiple expansion as more investors discover the story*.
  • No formal guidance: Position sizing should incorporate the lack of numeric outlook; monitor upcoming filings for backlog/order intake and segment-level detail .
  • Near-term trading implication: Post-beat momentum and record results are potential positive catalysts; a pullback would likely be bought if margin trends persist *.

*Values retrieved from S&P Global.