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CRAWFORD UNITED Corp (CRAWA)·Q3 2025 Earnings Summary

Executive Summary

  • Record quarter: revenue $47.17M (+28.4% YoY), diluted EPS $1.52 (+60.4% YoY), operating income $7.04M (+34.0% YoY); management highlighted record highs across sales, net income and EPS .
  • Results materially beat thin Wall Street consensus: EPS $1.52 vs $0.74*; revenue $47.17M vs $38.30M*; EBITDA (SPGI basis) $8.21M vs $5.30M*; one estimate covers CRAWA, so surprises are amplified* .
  • Sequentially solid: revenue rose modestly vs Q2 ($47.17M vs $46.85M), EPS rose to $1.52 from $1.44, with operating margin 15% vs 16% in Q2 (gross margin 30% vs 31%) .
  • Stock reaction: post-print, shares rose ~10.6%, with narrative centered on record revenue/earnings and recent acquisitions .

What Went Well and What Went Wrong

What Went Well

  • Broad-based strength delivered record highs in sales, net income, and EPS; CEO: “Our sales, net income and earnings per share all reached record highs this quarter… well positioned… with an eye towards additional acquisitions.” .
  • Strong YoY growth: revenue +28.4% to $47.17M; operating income +34.0% to $7.04M; net income +60.4% to $5.40M; EBITDA As Defined +34.3% to $9.07M .
  • YTD momentum: revenue $137.34M (+21.7% YoY), operating income $19.27M (+28.9%), net income $13.66M (+41.6%), EBITDA As Defined $25.19M (+25.2%) .

What Went Wrong

  • Modest sequential margin compression: gross margin 30% vs 31% in Q2; operating margin 15% vs 16% in Q2, reflecting higher SG&A ratio (15% vs 14% YoY) .
  • Other expense items persisted (e.g., interest $0.23M; other expense $0.18M in Q3), partially offsetting operational gains .
  • No formal forward guidance was provided, limiting near-term visibility; commentary focused on strategy and acquisitions rather than quantified outlook .

Financial Results

P&L and Margins vs Prior Periods and Prior Year

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$36.74 $43.31 $46.85 $47.17
Gross Profit ($USD Millions)$10.69 $12.06 $14.52 $14.29
Gross Margin (%)29% 28% 31% 30%
Operating Income ($USD Millions)$5.26 $4.89 $7.33 $7.04
Operating Margin (%)15% 12% 16% 15%
Net Income ($USD Millions)$3.37 $3.13 $5.13 $5.40
Net Income Margin (%)9% 7% 11% 11%
Diluted EPS ($)$0.95 $0.88 $1.44 $1.52

Consensus vs Actuals (Q3 2025)

MetricActualConsensusSurprise
Diluted EPS ($)$1.52 $0.74*+$0.78 (+105%)*
Revenue ($USD Millions)$47.17 $38.30*+$8.87 (+23.2%)*
EBITDA (SPGI basis, $USD Millions)$8.21*$5.30*+$2.91 (+55%)*

Note: Consensus and SPGI actual EBITDA values retrieved from S&P Global; coverage is thin (Primary EPS - # of Estimates: 1; Revenue - # of Estimates: 1)*.

Non-GAAP KPI (Company definition)

KPIQ1 2025Q2 2025Q3 2025
EBITDA As Defined ($USD Millions)$6.81 $9.31 $9.07
Weighted Avg Diluted Shares (Millions)3.55 3.56 3.57

Segment Breakdown (Disclosure)

SegmentQ3 2025 RevenueQ3 2025 Operating IncomeNotes
Commercial Air Handling EquipmentNot disclosed Not disclosed Segment described; no quantitative split in release
Industrial & Transportation ProductsNot disclosed Not disclosed Segment described; no quantitative split in release

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q4 outlookNone disclosed None disclosed Maintained: no guidance
MarginsFY/Q4 outlookNone disclosed None disclosed Maintained: no guidance
OpEx/Tax/OtherFY/Q4 outlookNone disclosed None disclosed Maintained: no guidance

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available; themes inferred from press releases across quarters.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3)Trend
Record performanceQ2: “sales, gross margin, net income, EPS and EBITDA As Defined all reached record highs” Q3: record highs in sales, net income, EPS Continued strength
Margin trajectoryQ1: GM 28%, OM 12% ; Q2: GM 31%, OM 16% Q3: GM 30%, OM 15% Slight sequential normalization
Acquisition focusManagement emphasizes being “well positioned… with an eye towards additional acquisitions” in Q1/Q2 Reiterated in Q3 Ongoing priority
End-markets (healthcare, aerospace, transportation, energy)Described consistently in Q1/Q2 segment overview Reaffirmed Q3 Stable exposure

Management Commentary

  • “Our sales, net income and earnings per share 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. Crawford United is well positioned to pursue opportunities for increased revenue and profitability, always with an eye towards additional acquisitions.” — Brian Powers, President & CEO .
  • Company reiterates two-segment structure and diversified industrial exposure across healthcare, aerospace, transportation, and energy .

Q&A Highlights

No public Q3 2025 earnings call transcript available; no Q&A details to report [ListDocuments returned none; see above].

Estimates Context

  • Thin coverage: only one estimate for EPS and revenue*, which magnifies reported “beats” and may limit the robustness of consensus signals*.
  • Q3 delivered significant positive surprises: EPS +105% vs consensus*, revenue +23.2% vs consensus*, and EBITDA (SPGI basis) +55% vs consensus*, suggesting upward estimate revisions are likely to follow*.
  • Note: Company-reported EBITDA As Defined ($9.07M) differs from SPGI’s EBITDA ($8.21M*), given non-GAAP exclusions (e.g., stock-based comp, ROU amortization, acquisition-related costs) in the company definition .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Momentum intact: Three consecutive quarters of strong growth culminating in Q3 record EPS and revenue; sequentially higher EPS despite slight margin normalization .
  • Compelling beat vs consensus on EPS, revenue, and EBITDA with thin coverage; expect potential upward estimate revisions and increased investor attention* .
  • Operating discipline: Operating margin at 15% with SG&A rising to 15% of sales; monitoring cost trajectory as scale builds .
  • Balance of growth and M&A: Management’s reiterated focus on acquisitions suggests continued portfolio expansion; diligence on integration and non-GAAP add-backs remains prudent .
  • Stock reaction positive post-print (~10.6% gain), indicating market’s favorable view of record results and strategic direction .
  • Near-term visibility limited due to lack of formal guidance; track Q4 margin cadence and any segment disclosures to refine run-rate assumptions .
  • For modeling: consider using company-reported EBITDA As Defined for covenant/credit lens, but standardize to GAAP/SPGI EBITDA for cross-company comparability .