Crane NXT, Co. Reports Third Quarter 2024 Results

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]