Shares of Crawford United Corporation (CRAWA Quick QuoteCRAWA - Free Report) have gained 16.1% since the company reported its earnings for the quarter ended June 30, 2025, against the S&P 500 Index’s 0.5% loss over the same time frame. Over the past month, the stock gained 15% compared with the S&P 500’s 1.9% growth.

CRAWA’s Earnings Performance Snapshot

For the second quarter of 2025, Crawford United reported revenues of $46.9 million, marking a 24.5% increase from $37.6 million in the prior-year quarter. Net income rose to $5.1 million, or $1.44 per diluted share, from $3.3 million, or $0.92 per share, in the year-ago period — an increase of 56.5% in earnings per share. Operating income rose 43.3% to $7.3 million from $5.1 million, while gross profit climbed 39.5% to $14.5 million from $10.4 million, representing a gross margin of 31% compared with 27.7% in the previous year. Both business segments contributed to the improved margins, with a greater sales mix from the higher-margin Commercial Air Handling segment.

Crawford United’s Segment Performance

The Commercial Air Handling Equipment segment reported second-quarter sales of $22.1 million, up 34.6% from $16.4 million in the prior-year quarter. This growth was primarily due to the acquisition of Rahn Industries. Segment operating profit rose 35.7% to $6.3 million from $4.7 million, aided by synergies from the acquisition and higher gross margins. Operating margin expanded to 28.7% from 28.4%.

The Industrial and Transportation Products segment generated $24.7 million in sales, a 16.7% year-over-year increase from $21.2 million. Operating profit in this segment improved 54.5% to $2.5 million from $1.6 million, with operating margins expanding by 240 basis points to 9.9% from 7.5%. This gain was attributed to both the acquisition of Advanced Industrial Coatings and increased efficiencies at legacy operations such as CAD Enterprises.

CRAWA’s Other Key Business Metrics

EBITDA reached $9.3 million in the second quarter, up 39.4% from $6.7 million in the year-ago period. On a year-to-date basis, EBITDA stood at $16.1 million, a 20.6% increase from the prior year’s $13.4 million. The company cited continued improvement in gross margins (31% versus 27.7%) and fixed cost absorption as key drivers behind these gains.

Selling, general and administrative expenses rose 35.8% to $7.2 million from $5.3 million, reflecting Crawford United’s recent acquisitions and ongoing investments in growth-related initiatives.

Crawford United’s Management Commentary

President and CEO Brian Powers described the quarter as a record-setting period across several key metrics, including sales, earnings and EBITDA. He reaffirmed confidence in the company's growth strategy, highlighting that Crawford United remains well-positioned to pursue further acquisition opportunities and increase profitability over the long term.

Factors Influencing CRAWA’s Performance

The top-line growth was largely driven by recent acquisitions. Rahn Industries—acquired in January 2025—contributed $5.9 million in sales and $1.1 million in net income during the quarter, significantly boosting the Commercial Air Handling segment’s performance. Similarly, Advanced Industrial Coatings, acquired in August 2024, added $1.1 million in sales and $0.07 million in net income.

CRAWA also benefited from increased volumes and price hikes at CAD Enterprises, which contributed an additional $1.5 million in revenues year over year. Operational efficiency improvements across the portfolio also enhanced margins and profitability.

Crawford United’s Guidance

No formal quantitative guidance was issued by Crawford United. However, management reiterated its strategic focus on organic growth and bolt-on acquisitions, particularly within existing supply chains and customer bases. CRAWA also highlighted a proprietary deal pipeline and a preference for immediately accretive acquisitions with EBITDA margins exceeding 15%.

CRAWA’s Other Developments

During the quarter, Crawford United closed its acquisition of Rahn Industries, a manufacturer of HVAC coils used in commercial systems. The $12.7 million all-cash deal was financed through the company’s revolving credit facility and added $18 million in annualized revenues. Management emphasized that the acquisition enhances vertical integration within the Commercial Air Handling Equipment segment and offers significant aftermarket revenue opportunities.

CRAWA also finalized purchase accounting for the Heany Industries acquisition, made in early 2024. Adjustments to inventory and fixed assets led to a $154,024 increase in goodwill. Heany and Advanced Industrial Coatings collectively contributed over $2.8 million in second-quarter revenues.