Financial Data and Key Metrics Changes - Adjusted EPS for the first quarter of 2025 was $1.39, reflecting a 7.5% core sales growth driven by Aerospace and Electronics and Process Flow Technologies [6][27] - Core orders increased by 16% in the quarter, primarily due to strength in Aerospace and Electronics [6][27] - Adjusted operating profit rose by 18%, supported by volumes, solid net pricing, and productivity [27] Business Line Data and Key Metrics Changes - Aerospace and Electronics segment sales reached $249 million, a 10% increase, with a record backlog of $960 million, up 21% year-over-year [28][29] - Total aftermarket sales in Aerospace and Electronics increased by 20%, with commercial aftermarket sales up 19% and military aftermarket up 24% [28] - Process Flow Technologies delivered sales of $309 million, up 9%, with core sales growth of 5% and a 5% contribution from recent acquisitions [29] Market Data and Key Metrics Changes - The Aerospace market remains strong, with Boeing ramping up production and solid procurement spending in defense [16][27] - Core sales growth for Aerospace and Electronics is anticipated to be mid to high single digits for the year, leveraging a 35% to 40% margin [17] - In the Process Flow Technologies segment, notable wins included a $5.7 million project for a Saudi Arabian mining company [21] Company Strategy and Development Direction - The company aims to continue growing through adversity, focusing on strategic execution and innovation [6][10] - There is a strong emphasis on maintaining a robust balance sheet with over $1.5 billion in M&A capacity, indicating ongoing acquisition activity [22][23] - The company is committed to long-term core sales growth of 4% to 6% through cycles, supported by solid aftermarket and operating leverage [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in emerging stronger from current economic dislocations, despite uncertainties in the macroeconomic environment [7][8] - The company reaffirmed its full-year 2025 adjusted EPS outlook in the range of $5.3 to $5.6, reflecting current economic conditions [7][8] - Management highlighted the importance of adapting to changes in demand and maintaining focus on long-term goals [20][26] Other Important Information - The company has a robust pipeline of potential acquisitions and has not seen any slowdown in M&A activity [22][92] - Management noted that supply chain disruptions have stabilized since last year, with no significant changes expected [80] - The company is actively engaged in new product development and technology roadmaps to support growth initiatives [25][26] Q&A Session Summary Question: Can you provide clarity on updated guidance and the contribution of price to sales? - Management expects about 3% overall price contribution, more heavily weighted to Process Flow Technologies [37] Question: What is the growth split between volume and price in Aerospace and Electronics? - The growth was roughly 50% from volume and 50% from price [50] Question: Are there any major commercial OE long-term agreements that repriced this quarter? - No major repricing occurred this quarter [53] Question: How is the company managing supply chain risks? - Supply chain disruptions have returned to normal rates, with no significant changes expected [80] Question: What is the outlook for the chemical market within Process Flow Technologies? - The company anticipates some project activity in the Americas to shift to the right, with softening demand in Europe [102]

Core Insights - Crane NXT reported a full year sales growth of 7%, with GAAP EPS of $3.19 and Adjusted EPS of $4.26, indicating a solid performance in 2024 [1][3][16] - The company is on track to close the acquisition of De La Rue Authentication Solutions in the second quarter of 2025, enhancing its position in the authentication market [1][3] Fourth Quarter 2024 Highlights - Fourth quarter sales reached $399.1 million, an increase of $42.2 million or 11.8% year-over-year, driven by the OpSec Security acquisition and core sales growth [6][14] - GAAP operating profit margin was 17.7%, while Adjusted operating profit margin improved to 23.7% [5][7] - GAAP EPS for the fourth quarter was $1.00, and Adjusted EPS was $1.20 [8][16] Full Year 2024 Results - Total net sales for 2024 were $1,486.8 million, a 6.9% increase from 2023, primarily due to the OpSec Security acquisition and core sales growth [13][14] - Operating profit for the year was $268.8 million, with an operating profit margin of 18.1% [15][16] - Adjusted operating profit margin decreased to 23.6% from 24.8% in the previous year [15] Financial Position and Cash Flow - Cash provided by operating activities was $214.1 million in 2024, down from $276.3 million in 2023, primarily due to timing of shipments and increased capital expenditures [17] - The company ended 2024 with cash and cash equivalents of $165.8 million and total debt of $750.6 million [18] 2025 Guidance - Crane NXT introduced guidance for 2025, projecting Adjusted EPS between $4.00 and $4.30, with sales growth expectations of 1% to 3% [19][20] - The company anticipates Adjusted Segment Margin to be around 26% to 27% [20] Dividend Announcement - The company declared a quarterly dividend of $0.17 per share for the first quarter of 2025, reflecting a 6% increase over the prior year [21]

Group 1 - Crane NXT (NYSE: CXT) operates two separate divisions, attracting interest since its spin-off from its parent company [1] - The company focuses on cash flow and the potential for value and growth in the oil and natural gas sector [1] - Crude Value Insights provides an investing service and community centered on oil and natural gas, emphasizing cash flow generation [1] Group 2 - Subscribers of Crude Value Insights benefit from a 50+ stock model account and in-depth cash flow analyses of exploration and production (E&P) firms [2] - The service includes live chat discussions about the sector, enhancing community engagement and information sharing [2] Group 3 - A two-week free trial is available for new subscribers, promoting access to insights in the oil and gas industry [3]

CRANE Q4 2024 Earnings Release Call Forward-Looking Statements – Disclaimer This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, including, but not limited to: benefits and synergies of the separation transaction; strategic and competitive advantages of Crane; future financing plans and opportunities; and bus ...

Company Performance - The share price of Crane Company (NYSE: CR) grew over 39% in the past year, indicating strong performance [1] - The company has reinvested in growth, positioning itself in a virtuous cycle, suggesting potential for further price appreciation [1] Analyst Background - Robert F Abbott has been managing family investments since 1995 and incorporated options strategies in 2010 [2] - He holds a Bachelor of Arts and a Master of Business Administration (MBA) degree [2]

Core Insights - Crane Company (CR) divested its Engineered Materials segment to KPS Capital Partners for $227 million, announced in December 2024 [1] - The divestment allows Crane Company to concentrate on its core businesses, specifically Aerospace & Electronics and Process Flow Technologies, while enhancing capital allocation priorities [2] - Starting Q4 2024, the Engineered Materials segment will be classified as discontinued operations, with updated adjusted EPS guidance for 2024 now expected to be between $4.71 and $4.86, down from the previous range of $5.05 to $5.20 [3] Financial Performance - Crane Company currently holds a Zacks Rank of 4 (Sell), with a stock price increase of 35.4% over the past year, outperforming the industry growth of 11.8% [4] Comparative Analysis - Graham Corporation (GHM) has a Zacks Rank of 1 (Strong Buy) and a trailing four-quarter average earnings surprise of 101.9%, with a recent 8.4% increase in earnings estimates for fiscal 2025 [6] - Gates Industrial Corporation plc (GTES) holds a Zacks Rank of 2 (Buy) and has a trailing four-quarter average earnings surprise of 11.8% [7] - Generac Holdings Inc. (GNRC) also carries a Zacks Rank of 2, with a trailing four-quarter average earnings surprise of 10.8% and a 0.6% increase in earnings estimates for 2024 [8]

Group 1 - KPS Capital Partners has signed a definitive agreement to acquire Crane Composites for an enterprise value of $227 million, with the transaction expected to close in the first quarter of 2025 [1] - Crane Composites is a leading designer and manufacturer of fiberglass reinforced plastic composite products, serving various end-markets including building products, recreational vehicles, and transportation [2][4] - The company operates four manufacturing facilities in the United States and employs approximately 430 people [2][4] Group 2 - KPS aims to leverage its strategic, operational, and financial resources to accelerate Crane Composites' growth and expand its product offerings [3] - Crane Composites has a seventy-year history as a leader in its field and plans to invest in operational capabilities under KPS' ownership [3] - KPS Capital Partners manages approximately $21.4 billion in assets and focuses on making controlling equity investments in manufacturing and industrial companies [5]

Core Insights - Crane NXT reported a sales growth of 14.3% year-over-year, with core sales growth of 4.7% for the third quarter of 2024 [2][6] - The company narrowed its full-year Adjusted EPS guidance to a range of $4.22 to $4.30 [1][3] - Crane NXT's operating profit margin decreased to 18.6%, down from 22.6% in the previous year, primarily due to an unfavorable product mix and the impact of acquisitions [7][11] Financial Performance - Net sales for the third quarter reached $403.5 million, an increase of $50.6 million compared to $352.9 million in the same quarter last year [5][6] - GAAP earnings per diluted share (EPS) were $0.81, while Adjusted EPS was $1.16 [2][12] - The company repaid approximately $65 million of outstanding debt, reducing net leverage to approximately 1.7X [4][13] Acquisitions and Strategic Moves - Crane NXT signed an agreement to acquire De La Rue Authentication Solutions, expected to close in the first half of 2025 [2][4] - The company also acquired Smart Packaging assets from Tru Tag Technologies, contributing to its growth strategy [2][4] Segment Performance - Crane Payment Innovations segment reported net sales of $224.9 million, a 1.5% increase year-over-year [9] - Security and Authentication Technologies segment saw net sales of $178.6 million, a significant increase of 36.0% compared to the previous year, driven by acquisitions and core sales growth [10][11] Cash Flow and Financial Metrics - Cash provided by operating activities was $66.7 million, down from $102.8 million in the prior year, reflecting higher working capital requirements [12] - Adjusted free cash flow decreased by 39.5% to $59.0 million compared to $97.5 million in the previous year [12] Guidance and Future Outlook - The company updated its full-year sales growth guidance to a range of 6% to 8% and adjusted free cash flow conversion to approximately 70% [3][15] - Crane NXT declared a quarterly dividend of $0.16 per share for the fourth quarter of 2024, payable on December 11, 2024 [16]

Group 1 - Crane Company has undergone a business split in 2023, leading to a focused transition and resulting in high valuations for the company [1] - The investment group "Value In Corporate Events" provides members with opportunities to capitalize on significant corporate events such as IPOs, mergers & acquisitions, and earnings reports [1] - The group covers approximately 10 major events each month, aiming to identify the best investment opportunities [1]

Financial Data and Key Metrics Changes - Adjusted EPS for Q3 2024 was $1.38, reflecting a 6% core sales growth and a 35% increase in adjusted operating profit driven by strong net pricing and productivity [5][16] - Core orders increased by 6% and core backlog rose by 10% year-over-year, indicating strong demand and operational performance [5][16] - Full year adjusted EPS guidance was raised to a range of $5.05 to $5.20, up from the previous range of $4.95 to $5.15, representing a projected 19% growth [8][19] Business Line Data and Key Metrics Changes Aerospace & Electronics - Sales reached $239 million, a 15% increase year-over-year, with 10% core growth and a 5% contribution from the Vian acquisition [21] - Record backlog increased to $833 million, up 23% year-over-year, with 14% core growth [22] - Adjusted segment margin improved to 23.5%, up 410 basis points from 19.4% last year, due to higher volumes and productivity [22] Process Flow Technologies - Sales for the segment were $309 million, up 16%, driven by 7% core sales growth and a 9% benefit from acquisitions [26] - Adjusted operating margin expanded to 21.8%, an increase of 260 basis points, reflecting strong core operating leverage [27] - The segment faced a $0.03 EPS impact from hurricane-related downtime, with an estimated $0.05 to $0.10 impact expected in Q4 [25][62] Engineered Materials - Sales decreased by 13% to $49 million, with adjusted operating profit declining by 80 basis points to 12.9% due to lower volumes [28] Market Data and Key Metrics Changes - Demand trends in Aerospace & Electronics remained strong, with low aircraft retirements and high demand for aftermarket parts [20] - In Process Flow Technologies, project activity was robust in the Americas and the Middle East, particularly in chemicals and pharmaceuticals, while European markets remained slow [36] Company Strategy and Development Direction - The company is focused on maintaining a long-term core sales growth rate of 4% to 6%, with expectations for double-digit average annual core profit growth [13] - M&A activity is expected to increase, with a small deal anticipated to close soon, and a full pipeline of opportunities for 2025 [18][67] - The company is committed to supporting its customers through strategic decisions, including improved inventory buffers in response to supply chain challenges [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite recent challenges from hurricanes and the Boeing strike, emphasizing strong operational execution [6][46] - The outlook for 2024 remains positive, with expectations for continued strong sales and margin performance [24][19] - Management highlighted the importance of flexibility and rapid response to external challenges as a key strength of the Crane Business System [46] Other Important Information - The company is actively investing in new testing capabilities for nuclear applications, indicating a strategic focus on growth in this area [49] - The company plans to host an investor meeting in March 2025 to discuss future developments [14] Q&A Session Summary Question: Impact of hurricanes and Boeing strike on Q3 results - Management indicated that the hurricane had a $0.03 impact on Q3 results, while the Boeing strike had a minimal effect [32][62] Question: Details on M&A activity - A small acquisition in the PFT segment is expected to close soon, valued around $20 million with solid EBITDA margins [38] Question: Growth splits in Aerospace & Electronics - Core growth rates were reported as follows: commercial OE up 7%, military OE up 7%, commercial aftermarket up 12%, and military aftermarket up 30% [43] Question: Future risks in Aerospace & Electronics - Management expressed confidence in the outlook for 2025, citing strong demand and ongoing contract negotiations [51] Question: Concerns regarding the Boeing strike - Management stated that the aftermarket remains strong, and they are proactively managing inventory to mitigate risks from the strike [54]