Crawford United Sales Surge 21.7%, Net Income Jumps 41.6% on Acquisitions

TL;DR

**Crawford United is aggressively acquiring for growth, and it's paying off big time with a 41.6% net income jump – definitely one to watch.**

AI Summary

Crawford United Corporation reported robust financial performance for the nine months ended September 30, 2025, with total sales increasing by 21.7% to $137,341,881 from $112,811,955 in the prior year. Net income saw a significant jump of 41.6% to $13,664,915, up from $9,649,552 in the same period of 2024. This growth was largely driven by strategic acquisitions, including Rahn Industries Incorporated in Q1 2025, which added $3.9 million to goodwill in the Commercial Air Handling Equipment segment. The company's total assets grew by 24.2% to $134,919,838 from $108,668,696 at December 31, 2024, primarily due to increases in accounts receivable, inventories, and goodwill. Operating income also rose substantially by 28.9% to $19,267,200. Despite increased cash used in investing activities, mainly for business acquisitions totaling $12,256,270, net cash provided by operating activities remained strong at $12,921,731. The company also saw an increase in its revolving credit facility balance to $2,649,321 from zero at December 31, 2024, indicating increased leverage for growth.

Why It Matters

Crawford United's strong sales and net income growth, fueled by strategic acquisitions like Rahn Industries, signals a company actively expanding its market footprint and enhancing shareholder value. For investors, this indicates a potentially undervalued growth stock, especially given the significant increase in retained earnings to $75,138,847. Employees may see increased job security and opportunities within an expanding organization. Customers could benefit from a broader product offering and enhanced service capabilities as the company integrates new businesses. In the competitive landscape, Crawford United's aggressive acquisition strategy positions it to gain market share and achieve economies of scale, potentially challenging larger industry players.

Risk Assessment

Risk Level: medium — The company's goodwill increased by $4.2 million to $22.7 million at September 30, 2025, primarily due to acquisitions. While no impairment indicators were identified, a significant portion of assets are tied to these acquisitions, posing a risk if acquired businesses underperform. Additionally, the revolving credit facility increased to $2,649,321, indicating higher leverage, which could be a concern in a rising interest rate environment.

Analyst Insight

Investors should consider Crawford United's aggressive growth strategy and strong financial performance. While the increased goodwill and revolving credit facility introduce some risk, the substantial growth in sales and net income suggests effective integration of acquisitions. Monitor future filings for continued successful integration and management of debt, but the current trajectory warrants a closer look for growth-oriented portfolios.

Financial Highlights

debt To Equity

0.21

revenue

$137,341,881

operating Margin

14.0%

total Assets

$134,919,838

total Debt

$27,993,000

net Income

$13,664,915

eps

$1.52

gross Margin

29.8%

cash Position

$1,922,558

revenue Growth

+21.7%

Revenue Breakdown

Key Numbers

• $137,341,881 — Total Sales (Increased by 21.7% for the nine months ended September 30, 2025, compared to $112,811,955 in 2024.)
• $13,664,915 — Net Income (Increased by 41.6% for the nine months ended September 30, 2025, from $9,649,552 in 2024.)
• $1.52 — Net Income Per Common Share - Basic (For the three months ended September 30, 2025, up from $0.95 in 2024.)
• $22,656,595 — Goodwill (Increased by $4.2 million from $18,547,704 at December 31, 2024, primarily due to acquisitions.)
• $3,943,372 — Goodwill from Acquisitions (Added in the Commercial Air Handling Equipment segment due to the Rahn Industries acquisition in Q1 2025.)
• $12,256,270 — Cash paid for business acquisitions (For the nine months ended September 30, 2025, indicating significant investment in growth.)
• $1,922,558 — Cash and cash equivalents (At September 30, 2025, an increase from $1,543,267 at December 31, 2024.)
• $32,944,468 — Accounts receivable (At September 30, 2025, up from $21,014,148 at December 31, 2024.)
• $24,294,019 — Inventories (At September 30, 2025, up from $18,278,179 at December 31, 2024.)
• $2,649,321 — Revolving credit facility (At September 30, 2025, up from zero at December 31, 2024.)

Key Players & Entities

• CRAWFORD UNITED CORPORATION (company) — registrant
• Rahn Industries Incorporated (company) — acquired company
• Heany Industries LLC (company) — acquired company
• Advanced Industrial Coatings LLC (company) — acquired company
• FASB (regulator) — accounting standards setter
• One Big Beautiful Bill Act (regulator) — new tax legislation
• Commercial Air Handling Equipment segment (company) — business segment
• Industrial and Transportation Products segment (company) — business segment
• CAD Enterprises (company) — reporting unit
• Federal Hose (company) — reporting unit

FAQ

Risk Factors

• Increased Leverage for Growth [medium — financial]: The company has increased its revolving credit facility balance to $2,649,321 from zero at December 31, 2024. This indicates a reliance on debt financing to fund its growth initiatives, which could increase financial risk if not managed effectively.
• Significant Increase in Accounts Receivable and Inventories [medium — financial]: Accounts receivable grew by 56.7% to $32,944,468 from $21,014,148, and inventories increased by 33.0% to $24,294,019 from $18,278,179. This substantial growth may indicate increased sales but also ties up more working capital and could signal potential issues with inventory management or collection cycles.
• Integration of Acquisitions [medium — operational]: The company has made strategic acquisitions, such as Rahn Industries Incorporated, which added $3.9 million to goodwill. The successful integration of these acquisitions is crucial for realizing their expected benefits and avoiding operational disruptions.
• Dependence on Acquisitions for Growth [medium — financial]: The reported growth in sales and assets is significantly attributed to strategic acquisitions. A heavy reliance on M&A for growth can be risky if acquisition targets are overvalued or integration proves difficult.

Industry Context

Crawford United Corporation operates within the commercial air handling equipment sector, which is influenced by construction cycles, energy efficiency regulations, and industrial production levels. The industry is characterized by a mix of large established players and smaller specialized manufacturers. Trends include increasing demand for smart building technologies and sustainable HVAC solutions.

Regulatory Implications

The company must comply with accounting standards (GAAP) and SEC regulations for financial reporting, including the adoption of new pronouncements like ASU 2023-07 for segment reporting. Adherence to environmental regulations related to air handling equipment and safety standards is also critical.

What Investors Should Do

1. Monitor acquisition integration and synergy realization.
2. Analyze working capital management, particularly accounts receivable and inventory.
3. Assess the impact of increased leverage.
4. Evaluate segment performance beyond the aggregate figures.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported significant increases in sales (21.7%), net income (41.6%), and operating income (28.9%), driven by acquisitions.
• 2025-01-01: Q1 2025 — Acquisition of Rahn Industries Incorporated, contributing $3.9 million to goodwill in the Commercial Air Handling Equipment segment.
• 2024-12-31: Year ended December 31, 2024 — Baseline for comparison of 2025 performance; total assets were $108,668,696 and revolving credit facility was zero.

Glossary

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (Increased by $4.2 million to $22,656,595 due to acquisitions, indicating strategic expansion.)

Operating right of use asset, net

Represents the value of assets leased by the company under operating leases, recognized on the balance sheet. (Increased to $8,482,896 from $6,950,547, reflecting expanded operational footprint, likely due to acquisitions or new leases.)

Revolving credit facility

A type of credit facility that allows a company to borrow, repay, and re-borrow funds up to a certain limit over a specified period. (Increased to $2,649,321 from zero, indicating increased leverage to support growth initiatives.)

Contract assets

Represents a company's right to consideration in exchange for goods or services that the company has transferred to a customer when that right is conditional on something other than the passage of time. (Decreased to $4,496,626 from $5,470,698, potentially reflecting a shift in contract terms or revenue recognition patterns.)

Unearned revenue

Revenue that has been received by the company for goods or services that have not yet been delivered or rendered. (Decreased to $5,451,602 from $6,195,473, suggesting that previously deferred revenue has been recognized as earned.)

Year-Over-Year Comparison

Crawford United Corporation demonstrates strong year-over-year growth for the nine months ended September 30, 2025. Total sales increased by 21.7% to $137.3 million, and net income surged by 41.6% to $13.7 million, indicating improved profitability. Gross and operating margins have expanded, reflecting effective cost management relative to revenue growth. The company has also significantly increased its asset base, driven by acquisitions and growth in receivables and inventory, while also increasing its debt utilization through a revolving credit facility.

Key Financial Figures

• $2.2 million — property, plant and equipment valued at $2.2 million. During the second quarter of 2024, the
• $30 million — redit Agreement"), which provides for a $30 million revolving credit facility that matures

Filing Documents

• crawa20250930_10q.htm (10-Q) — 1129KB
• ex_846371.htm (EX-31.1) — 11KB
• ex_846372.htm (EX-31.2) — 11KB
• ex_846373.htm (EX-32.1) — 6KB
• ex_846374.htm (EX-32.2) — 6KB
• 0001437749-25-032860.txt ( ) — 5928KB
• crawa-20250930.xsd (EX-101.SCH) — 49KB
• crawa-20250930_cal.xml (EX-101.CAL) — 51KB
• crawa-20250930_def.xml (EX-101.DEF) — 362KB
• crawa-20250930_lab.xml (EX-101.LAB) — 286KB
• crawa-20250930_pre.xml (EX-101.PRE) — 388KB
• crawa20250930_10q_htm.xml (XML) — 1000KB

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CRAWFORD UNITED CORPORATION CONSOLIDATED BALANCE SHEET (Unaudited) September 30, December 31, 2025 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,922,558 $ 1,543,267 Accounts receivable less allowance for credit losses 32,944,468 21,014,148 Contract assets 4,496,626 5,470,698 Inventories 24,294,019 18,278,179 Refundable tax asset 1,327,025 1,728,754 Prepaid expenses and other current assets 1,063,912 1,575,240 Total Current Assets 66,048,608 49,610,286 Property, plant and equipment, net 24,490,683 23,179,580 Operating right of use asset, net 8,482,896 6,950,547 OTHER ASSETS: Goodwill 22,656,595 18,547,704 Intangibles, net of accumulated amortization 13,061,220 10,285,781 Other non-current assets 179,836 94,798 Total Non-Current Assets 35,897,651 28,928,283 Total Assets $ 134,919,838 $ 108,668,696 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable – current $ 38,526 $ 470,209 Real property term loan – current 149,711 141,816 Accounts payable 18,006,220 12,856,158 Unearned revenue 5,451,602 6,195,473 Accrued expenses 5,134,121 3,542,490 Operating lease liabilities - current 1,989,265 1,414,686 Total Current Liabilities 30,769,445 24,620,832 LONG-TERM LIABILITIES: Revolving credit facility 2,649,321 - Real property term loan 5,454,032 5,559,755 Operating lease liabilities - noncurrent 6,727,979 5,747,295 Deferred income taxes 3,073,523 391,060 Total Long-Term Liabilities 17,904,855 11,698,110 STOCKHOLDERS' EQUITY Class A common shares - 10,000,000 shares authorized, 2,887,357 issued at September 30, 2025 and 2,870,107 issued at December 31, 2024 10,646,126 10,218,026 Class B common shares - 2,500,000 shares authorized, 914,283 shares issued at September 30, 2025 and December 31, 2024 1,465,522 1,465,522 Contributed capital 1,741,901 1,741,901 Treasury shares ( 2,746,858 ) ( 2,549,627 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) September 30, 2025 1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10 -Q and Article 8 of Regulation S- X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. The consolidated financial statements include the accounts of Crawford United Corporation and its wholly-owned subsidiaries (the "Company"). Significant intercompany transactions and balances have been eliminated in the financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Certain prior period financial information has been reclassified to conform to the current presentation. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ended December 31, 2025 . For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10 -K for the year ended December 31, 2024 . During the nine -month period ended September 30, 2025 there have been no changes to the Company's significant accounting policies. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company's Summary of Significant Accounting Policies is provided with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10 -K for the year ended December 31, 2024 . Recent Accounting Pronouncements and Regulatory Updates In November 2023, the FASB issued ASU 2023 - 07, "Segment Reporting (Topic 280 ): Improvements to Reportable Segment Disclosures." This update requires public entities to disclose significant s

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