WALTHAM, Mass.--(BUSINESS WIRE)--Crane NXT, Co. (NYSE: CXT) ("Crane NXT" or the "Company"), a premier industrial technology company, today announced it has appointed Hans Lidforss as Senior Vice President of Strategy. In this new role, Mr. Lidforss will be responsible for advancing the Company’s strategy and creating new avenues for growth, including identifying and executing opportunities for M&A, growth ventures, and partnerships. Mr. Lidforss will report directly to Aaron W. Saak, President and CEO, Cran ...

Financial Data and Key Metrics Changes - The company reported revenue of $1.4 billion for the full year 2023, with core sales growth of 4% in line with guidance [36] - Adjusted EBITDA was $388 million, and adjusted EPS was $4.16, exceeding the high end of the outlook [20][22] - Adjusted free cash flow conversion for the full year was 111%, allowing the company to pay down $245 million of debt, lowering the net leverage ratio to 1.1 times [20][41] Business Line Data and Key Metrics Changes - CPI segment reported a decline in core sales of 7% in Q4, with adjusted segment operating margin decreasing by 260 basis points to 29% year-over-year [39] - Crane Currency experienced a strong performance with core sales growth of 29% driven by international currency business, and adjusted segment operating margin improved by 230 basis points year-over-year [40] - Backlog was up 26% from the prior year, supported by a significant multiyear banknote order secured in Q4 [24] Market Data and Key Metrics Changes - The company expects mid-single-digit growth in CPI excluding the gaming vertical, with strength in the vending business [30] - The international business accounts for approximately half of Crane Currency's revenue, with 17 new denominations designed using micro-optics technology added in 2023 [44] - The U.S. government remains a key customer, with expectations of flat currency sales in the first half of 2024 due to a planned shutdown [46] Company Strategy and Development Direction - The company aims to grow to $3 billion over the next five years, focusing on technology solutions that secure, detect, and authenticate valuable assets [18] - A strong M&A pipeline is in place, with plans for the first acquisition in 2024 [19][124] - The company is preparing for the new U.S. currency program, which is expected to enhance growth opportunities in the currency business [28][72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the U.S. government's continued leadership in technology and banknotes, anticipating additional security features in new designs [29] - The company expects revenue phasing in 2024 to be more heavily weighted toward the second half, with potential upside based on project acceleration in CPI's retail end market [42] - Management highlighted the healthy underlying gaming market and the expectation of returning to growth in Q4 [48][73] Other Important Information - The company announced a 14% increase in its annual dividend based on strong cash flow [25] - Corporate expenses are expected to rise to approximately $53 million, reflecting a full year run rate of costs for newly hired employees [26] Q&A Session All Questions and Answers Question: What is the expected revenue and earnings weight for the first half versus the second half? - Management indicated a 40-60 split between the first and second halves for both top line and bottom line [53] Question: Can you elaborate on the significant multiyear order in Crane Currency? - Management confirmed a multiyear order secured in Q4 that will significantly impact revenue over the next three years, with 17 new denominations designed using micro-optics technology [54][55] Question: What is the year-over-year growth baked into guidance for the international currency business? - Management expects mid-single-digit growth for the international currency business based on a strong pipeline [59][82] Question: How does the company view the gaming market and its recovery? - Management expressed confidence in the gaming market's health, anticipating a return to mid-single-digit growth as inventory levels normalize [87][94] Question: What are the expectations for the currency business in 2024? - Management expects the currency business to be flat in the first half and to pick up in the second half, with overall guidance suggesting low single-digit growth for the year [100][102]

FOURTH QUARTER & FULL YEAR 2023 FINANCIAL RESULTS February 15, 2024 2 Risks and uncertainties that could cause actual results to differ materially from the Company's expectations include, but are not limited to: changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations; demand for its products, which is variable and subject to factors beyond its control; fluctuation in the prices of, or disruption in its ability to source, component ...

Key PointsCrane Company had a solid quarter and guided for strength in 2024. Core, ongoing business and acquisitions are driving growth. The balance sheet is robust, leaving the company in a position to continue its trends in 2024. 5 stocks we like better than CraneCrane NYSE: CR is a high-flying stock, having gained 58% since the IPO spin-off and keeping most of it. A recent downshift in analyst sentiment driven by valuation capped gains in January, presenting a minor headwind, but nothing this industrial ...

Financial Data and Key Metrics Changes - The company reported $353 million in sales with a 4% core sales growth for Q3 2023, and adjusted EPS of $1.09, exceeding expectations [86][96] - Adjusted operating margin was 26%, and adjusted EBITDA margin was over 29%, reflecting strong operational performance [16][96] - Adjusted free cash flow was $98 million, supporting a $125 million paydown of the term loan, resulting in a net leverage ratio of 1.3 times [8][16][88] Business Line Data and Key Metrics Changes - Crane Payment Innovations (CPI) reported flat core sales, with adjusted segment operating margins increasing by 190 basis points to 29.4% due to strong pricing and productivity [7][96] - Crane Currency experienced a 12% core sales growth driven by international sales, although adjusted segment operating margin decreased to 28% due to an unfavorable product mix [18][96] Market Data and Key Metrics Changes - The international currency market backlog increased approximately 80% year-over-year, indicating strong demand and market share gains [95][97] - The CPI segment is experiencing softness in retail and gaming markets as customers adjust inventories, with expectations for sales to decline year-over-year in Q4 [87][95] Company Strategy and Development Direction - The company aims to achieve $1.4 billion in sales for the year with adjusted operating margins above 27% and a free cash flow conversion of approximately 100% [6][79] - The strategic focus includes disciplined M&A targeting adjacent, resilient, and higher growth end markets, with a goal to grow revenue to $3 billion and maintain high EBITDA margins [80][81] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging due to inventory adjustments in CPI's end markets, but they expect normalization by Q2 2024 [87][95] - The company is confident in its backlog and market dynamics favoring technology and sophisticated anti-counterfeiting solutions, which are expected to drive growth beyond 2024 [35][36] Other Important Information - The company has approximately $1 billion in M&A capacity and plans to continue investing in core business growth while maintaining a competitive dividend [88][90] - The Catalyst Series for U.S. government currency is on track for production in 2025 and launch in 2026, but is not expected to materially impact 2024 [36][43] Q&A Session Summary Question: What is the mix of the backlog by vertical and how does destocking affect it? - Management indicated that the currency backlog is strong, up close to 80% year-over-year, with gaming segment backlog at about twice the normal level, expected to normalize by Q2 2024 [69][70] Question: How is the M&A environment looking? - The company is actively reviewing potential deals and expects to execute some in 2024, with a focus on disciplined capital allocation [74][75] Question: What are the main issues affecting CPI demand? - The primary issues include inventory drawdowns, project pushouts, and macroeconomic factors, with inventory adjustments being the most significant [26][39]

Financial Data and Key Metrics Changes - The company reported $352 million in sales with a 6% core sales growth, exceeding expectations [4] - Adjusted EBITDA was $104 million, with adjusted EPS of $1.12 and adjusted EBITDA margins over 29% [4][25] - Adjusted operating margins were above 30% in both segments, reflecting significant sequential improvement [4] - Adjusted free cash flow was $70 million, supporting $50 million of debt repayment, reducing net debt-to-EBITDA to approximately 1.5 times [23][27] Business Line Data and Key Metrics Changes - Crane Payment Innovations (CPI) achieved core sales growth of 8%, driven by end-customer demand and easing supply chain constraints [25] - Crane Currency reported core sales growth of 3.7% with an adjusted segment operating margin of 30.2%, a 330 basis point improvement [26] Market Data and Key Metrics Changes - Solid demand was noted in the gaming sector, with new casino wins contributing to market share growth [7] - The service business showed continued strength, increasing recurring revenue through a large order from a financial services customer [7] Company Strategy and Development Direction - The company aims to grow to $3 billion in revenue and maintain high adjusted EBITDA margins while achieving approximately 100% free cash flow conversion [29] - A key component of the strategy includes introducing new products to enhance customer productivity and consumer experience, such as the Paypod Compact [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for 2023, citing strong orders and backlog at Crane Currency [5][7] - The normalization of order rates to pre-COVID levels is expected as customers adjust inventories [7][12] Other Important Information - The company is on track with its separation from Crane Company and winding down transitional service agreements [5] - The backlog is nearly twice the size compared to the same time last year, indicating strong market positioning [8] Q&A Session Summary Question: Can you talk about the backlog burn in CPI? - Management indicated that the backlog burn is a normalization process rather than a concern, with customers adjusting orders due to shorter lead times [12] Question: How is the gaming vertical performing? - The gaming sector is performing strongly, with a rich installed base and growth in service business expected [33] Question: What is the outlook for international sales in Crane Currency? - The upside in international sales is attributed to new country wins and increased volume at existing customers, driven by technology superiority [34][42] Question: How is the M&A activity evolving? - The company remains disciplined in its M&A approach, focusing on opportunities that align with its strategy and can generate strong returns [46]