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]

Earnings Release Call CRANE Q3 2024 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 ...

Crane (CR) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.34%. A quarter ago, it was expected that this maker of aerospace, electronics and engineered industrial products would post earnings of $1.24 per share when it actually produced earnings of $1.30, delivering a surprise of 4 ...

WALTHAM, Mass., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Crane NXT, Co. (NYSE: CXT) ("Crane NXT" or the "Company"), a premier industrial technology company, today announced it has signed a definitive agreement with De La Rue plc to acquire its authentication business for 300 million British pounds in cash, subject to customary adjustments. De La Rue Authentication Solutions is a global leader in security and authentication technologies. The acquisition complements the authentication and online brand protection sol ...

WALTHAM, Mass., Oct. 14, 2024 (GLOBE NEWSWIRE) -- Crane NXT, Co. (NYSE: CXT) ("Crane NXT" or the "Company"), a premier industrial technology company, today announced it has appointed Dr. Aleta Richards as President of its Crane Currency business, effective October 14, 2024. In this role, Dr. Richards will partner with the Crane Currency leadership team to execute the growth strategy, accelerate innovation, and leverage the Crane Business System to drive continuous improvement as a leading integrated supplie ...

WALTHAM, Mass., Oct. 10, 2024 (GLOBE NEWSWIRE) -- Crane NXT, Co. (NYSE: CXT) ("Crane NXT" or the "Company"), a premier industrial technology company, announced today its schedule for the Company's third quarter 2024 results. Earnings Release: November 6, 2024, after close of market by public distribution and the Crane NXT website at www.cranenxt.com. Earnings Call: November 7, 2024, at 10:00 AM (Eastern Time) hosted by Aaron W. Saak, President & CEO, and Christina Cristiano, Senior Vice President & CFO. Int ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...