Crawford United Corporation Announces Fourth Quarter and Full Year 2024 Results
MWN-AI** Summary
Crawford United Corporation (OTC: CRAWA) reported its financial results for the fourth quarter and full year ending December 31, 2024, demonstrating solid performance across several key metrics. For the full year, Crawford achieved sales of $150.2 million, reflecting a 4.4% increase from $143.9 million in 2023. The net income for the year rose 2.3% to $13.6 million, translating to earnings per share (EPS) of $3.83, up from $3.77 in the prior year.
In the fourth quarter alone, the company reported sales of $37.4 million, a notable 10.5% increase compared to $33.8 million in Q4 2023. Operating income for the quarter surged by 41.0% to $4.7 million, while net income increased by 22.0% to $3.9 million, or $1.11 per diluted share. Additionally, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) as defined reached $6.4 million in Q4, up 26.4% from the previous year.
Brian Powers, President and CEO of Crawford United, expressed satisfaction with the company's performance and strategic growth initiatives, including two acquisitions aimed at bolstering its footprint in the aerospace and defense sectors. Significantly, the company reported zero senior bank debt at year-end for the first time since 2017, positioning it well for future growth opportunities.
Crawford continues to operate in diverse markets such as healthcare, education, and aerospace. With a focus on innovative industrial products, Crawford United aims to enhance revenue and profitability while pursuing further acquisitions in its quest for sustained growth. For more information, investors and interested parties can visit Crawford United's website.
MWN-AI** Analysis
Crawford United Corporation (OTC: CRAWA) has reported robust results for the fourth quarter and full year 2024, showcasing solid growth dynamics amid a challenging economic backdrop. With earnings per share of $3.83 for the year and $1.11 for the quarter, and overall sales increasing by 4.4% to $150.2 million, the company’s performance signals resilience and effective management strategies.
Particularly noteworthy is the substantial quarterly growth of 10.5% in sales compared to Q4 2023. This indicates strong demand in key segments, driven by the recent acquisitions in the aerospace and defense sectors, which align with broader market trends involving increased defense spending. The operating income has also seen a commendable rise of 41% in the fourth quarter, reflecting improved operational efficiencies.
Despite net income growth being modest at 2.3% for the year, the strategic choices made by management, including maintaining zero senior bank debt for the first time since 2017, should be perceived positively as they enhance financial stability. This strong balance sheet will allow Crawford United to capitalize on future opportunities, particularly in acquisition-driven growth.
The increase in EBITDA As Defined, which rose 3.8% to $26.5 million for the year, further strengthens the company’s financial foundation, providing essential cushion against market volatility. Investors should note that the company's zero-debt status fundamentally improves its capacity to navigate economic uncertainties.
In conclusion, while short-term market fluctuations may pose challenges, Crawford United's strategic positioning in high-growth sectors, effective capital management, and commitment to acquisitions make it an attractive investment. Long-term investors should consider adding CRAWA to their portfolios, especially given its potential for sustained growth aligned with increased demand in its operational sectors.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
- Earnings per share of $3.83 for the year and $1.11 for the quarter
- Sales of $150.2 million for the year, an increase of 4.4%
- Net income of $13.6 million for the year, an increase of 2.3%
- EBITDA As Defined 1 of $26.5 million for the year, an increase of 3.8%
CLEVELAND, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Crawford United Corporation (OTC: CRAWA), a growth-oriented holding company serving diverse markets, today reported results for the quarter and year ended December 31, 2024.
For the quarter ended December 31, 2024, sales were $37.4 million compared with $33.8 million in the same period in 2023, an increase of 10.5%. In the quarter, the Company recorded operating income of $4.7 million compared with operating income of $3.4 million in the same period of the prior year, an increase of 41.0%. Net income was $3.9 million, or $1.11 per fully diluted share, compared to $3.2 million, or $0.91 per fully diluted share in the fourth quarter of 2023, an increase of 22.0%. EBITDA As Defined was $6.4 million in the quarter compared to $5.1 million in the same period of the prior year, an increase of 26.4%.
For the year ended December 31, 2024, sales were $150.2 million compared with $143.9 million in 2023, an increase of 4.4%. In 2024, the Company recorded operating income of $19.7 million compared with operating income of $17.9 million in 2023, an increase of 9.8%. Net income was $13.6 million, or $3.83 per fully diluted share, compared to $13.3 million, or $3.77 per fully diluted share, in 2023, an increase of 2.3%. EBITDA As Defined was $26.5 million, compared to $25.6 million in 2023, an increase of 3.8%.
Brian Powers, President and CEO, stated, “We are pleased with the ongoing success of our business model and remain confident in our ability to achieve long-term strategic priorities. In 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. Crawford United is well positioned to pursue opportunities for increased revenue and profitability, always with an eye towards additional acquisitions.”
About Crawford United Corporation.
Crawford United Corporation is a growth-oriented holding company providing specialty industrial products to diverse markets, including healthcare, education, aerospace, defense, and transportation. The company currently operates two business segments. The Commercial Air Handling Equipment segment is a leader in designing, manufacturing, and installing HVAC coils as well as highly customized, large-scale commercial, institutional, and industrial air handling solutions, primarily for hospitals and universities. The Industrial & Transportation Products segment provides highly complex precision components and coatings to customers in the aerospace and defense industries, as well as a full line of branded metal, silicone, plastic, rubber, hydraulic, marine and fuel hose products. For more information, go to www.crawfordunited.com.
Information about Forward Looking Statements .
This press release contains forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements made regarding the company’s future results. Generally, these statements can be identified by the use of words such as “guidance,” “outlook,” “believes,” “estimates,” “anticipates,” “expects,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements, or other statements made by the Company, are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors (including, but not limited to, those specified below) which are difficult to predict and, in many instances, are beyond the control of the Company. As a result, actual results of the Company could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) shortages in supply or increased costs of necessary products, components or raw materials from the Company’s suppliers; (b) availability shortages or increased costs of freight and labor for the Company and/or its suppliers; (c) actions that governments, businesses and individuals take in response to public health crises, including mandatory business closures and restrictions on onsite commercial interactions; (d) conditions in the global and regional economies and economic activity, including slow economic growth or recession, inflation, currency and credit market volatility, reduced capital expenditures and changes in government trade, fiscal, tax and monetary policies, in particular the impact of any protectionist trade policies; (e) adverse effects from evolving geopolitical conditions, such as the military conflict in Ukraine and the Middle East; (f) the Company's ability to effectively integrate acquisitions, and manage the larger operations of the combined businesses, (g) the Company's dependence upon a limited number of customers and the aerospace industry, (h) the highly competitive industries in which the Company operates, which includes several competitors with greater financial resources and larger sales organizations, (i) the Company's ability to capitalize on market opportunities in certain sectors, (j) the Company's ability to obtain cost effective financing and (k) the Company's ability to satisfy obligations under its financing arrangements, and the other risks described in “Item 1A. Risk Factors” in our Annual Report on Form 10-K and the Company’s subsequent filings with the SEC.
Brian E. Powers
President & CEO
216-243-2449
bpowers@crawfordunited.com
1 EBITDA As Defined is a Non-GAAP financial measure. Please refer to the definition and table at the end of this release for a reconciliation of EBITDA As Defined to net income.
| CRAWFORD UNITED CORPORATION Consolidated Income Statement (Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||
| Sales | $ | 37,386,329 | 100 | % | $ | 33,827,050 | 100 | % | $ | 150,198,284 | 100 | % | $ | 143,885,934 | 100 | % | ||||||||||||||||
| Cost of Sales | 27,084,231 | 72 | % | 26,081,729 | 77 | % | 108,552,189 | 72 | % | 106,239,852 | 74 | % | ||||||||||||||||||||
| Gross Profit | 10,302,098 | 28 | % | 7,745,321 | 23 | % | 41,646,095 | 28 | % | 37,646,082 | 26 | % | ||||||||||||||||||||
| Operating Expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 5,559,433 | 15 | % | 4,381,450 | 13 | % | 21,954,718 | 15 | % | 19,713,611 | 14 | % | ||||||||||||||||||||
| Operating Income | 4,742,665 | 13 | % | 3,363,871 | 10 | % | 19,691,377 | 13 | % | 17,932,471 | 12 | % | ||||||||||||||||||||
| Other (Income) Expenses: | ||||||||||||||||||||||||||||||||
| Interest charges | 193,729 | 0 | % | 225,256 | 0 | % | 997,757 | 1 | % | 1,255,984 | 1 | % | ||||||||||||||||||||
| Loss (gain) on investments | — | 0 | % | (24,370 | ) | 0 | % | 367,407 | 0 | % | (7,330 | ) | 0 | % | ||||||||||||||||||
| Other (income) expense | 311,280 | 1 | % | (134,762 | ) | 0 | % | 680,998 | 0 | % | (480,331 | ) | -1 | % | ||||||||||||||||||
| Total Other (Income) and Expenses | 505,009 | 1 | % | 66,124 | 0 | % | 2,046,162 | 1 | % | 768,323 | 0 | % | ||||||||||||||||||||
| Income before Income Taxes | 4,237,656 | 11 | % | 3,297,747 | 10 | % | 17,645,215 | 12 | % | 17,164,148 | 12 | % | ||||||||||||||||||||
| Income tax expense | 289,241 | 0 | % | 60,505 | 0 | % | 4,047,248 | 3 | % | 3,869,355 | 3 | % | ||||||||||||||||||||
| Net income | $ | 3,948,415 | 11 | % | $ | 3,237,242 | 10 | % | $ | 13,597,967 | 9 | % | $ | 13,294,793 | 9 | % | ||||||||||||||||
| Net income per common share | ||||||||||||||||||||||||||||||||
| Basic | $ | 1.12 | $ | 0.92 | $ | 3.84 | $ | 3.79 | ||||||||||||||||||||||||
| Diluted | $ | 1.11 | $ | 0.91 | $ | 3.83 | $ | 3.77 | ||||||||||||||||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||||||||||||||
| Basic | 3,539,396 | 3,510,740 | 3,538,461 | 3,507,883 | ||||||||||||||||||||||||||||
| Diluted | 3,562,841 | 3,544,043 | 3,553,008 | 3,526,836 |
| CRAWFORD UNITED CORPORATION Supplemental Non-GAAP Financial Measures (Unaudited) | ||||||||||||||||
| EBITDA As Defined is a non-GAAP financial measure that reflects net income before interest expense, income taxes, depreciation and amortization, and also excludes certain charges and corporate-level expenses as defined in the Company's current revolving credit facility. The Company presents this non-GAAP financial measure because management uses EBITDA As Defined to assess the Company's performance and believes that EBITDA As Defined is useful to investors as an indication of the Company's compliance with its financial covenants in its revolving credit facility. Additionally, EBITDA As Defined is a measure used under the Company's revolving credit facility to determine whether the Company may incur additional debt under such facility. EBITDA As Defined is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, net income or cash flow information calculated in accordance with GAAP. EBITDA As Defined herein may not be comparable to similarly titled measures of other companies. The following table reconciles net income to EBITDA As Defined: | ||||||||||||||||
| Three Months Ended | Years Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income | $ | 3,948,415 | $ | 3,237,242 | $ | 13,597,967 | $ | 13,294,793 | ||||||||
| Addback: | ||||||||||||||||
| Interest charges | 193,729 | 225,256 | 997,757 | 1,255,984 | ||||||||||||
| Income tax expense | 289,241 | 60,505 | 4,047,248 | 3,869,355 | ||||||||||||
| Depreciation and amortization | 1,094,679 | 765,182 | 4,134,360 | 3,921,740 | ||||||||||||
| Non-cash stock-based compensation expense | 232,225 | 224,318 | 1,309,029 | 1,377,423 | ||||||||||||
| Reduction in carrying amount of right of use assets | 350,887 | 453,484 | 1,432,132 | 1,720,844 | ||||||||||||
| Loss (gain) on investments in equity securities | - | (24,370 | ) | 367,407 | (7,330 | ) | ||||||||||
| Non-recurring transaction charges | 311,385 | 136,575 | 652,807 | 136,575 | ||||||||||||
| EBITDA As Defined | $ | 6,420,561 | $ | 5,078,192 | $ | 26,538,707 | $ | 25,569,384 |
FAQ**
What strategic impact do the recent acquisitions by Crawford United Corp CRAWA have on its sales growth and market presence in aerospace and defense, given the $150.2 million sales reported for 2024?
How does the increase in EBITDA As Defined to $26.5 million in 20for Crawford United Corp CRAWA compare with industry benchmarks, and what factors contributed to this growth?
With a 22% increase in net income for the quarter, how does Crawford United Corp CRAWA plan to sustain this upward trend while maintaining operational efficiency?
Following the reduction of senior bank debt to zero, what are Crawford United Corp CRAWA's strategies for utilizing this financial flexibility for future growth and acquisitions?
**MWN-AI FAQ is based on asking OpenAI questions about Crawford United Corp (OTC: CRAWA).
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