On August 7, 2024, Crane NXT Co (CXT, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Crane NXT Co, a premier industrial technology company, provides proprietary technology solutions to secure, detect, and authenticate critical assets for its customers. The company operates through two segments: Crane Payment Innovations (CPI) and Security & Authentication Technologies.
Performance Overview
Crane NXT Co (CXT, Financial) reported GAAP earnings per diluted share (EPS) of $0.72 and adjusted EPS of $1.06 for Q2 2024, surpassing the analyst estimate of $0.95. The company achieved sales of $371 million, a 5.2% increase year-over-year, exceeding the estimated revenue of $367.16 million. The GAAP operating profit margin stood at 18.2%, while the adjusted operating profit margin was 24.1%.
Segment Performance
Crane Payment Innovations (CPI) reported net sales of $224.4 million, a slight decrease of 0.7% compared to Q2 2023. Core sales grew by 1.2%, but this was offset by a 1.9% unfavorable foreign exchange impact. The operating profit margin for CPI was 27.4%, down from 28.7% in the previous year.
Security & Authentication Technologies saw a significant increase in net sales, reaching $146.2 million, up 15.6% year-over-year. This growth was primarily driven by a 16.2% sales benefit from the acquired OpSec Security business. However, the operating profit margin for this segment decreased to 16.4% from 27.4% last year, mainly due to higher manufacturing costs and the impact of the OpSec acquisition.
Financial Achievements and Metrics
Crane NXT Co (CXT, Financial) reported cash provided by operating activities of $56.8 million for Q2 2024, compared to $59.5 million in the same period last year. Adjusted free cash flow was $53.9 million, down from $70.2 million last year. The company held cash and cash equivalents of $175.5 million as of June 30, 2024, with total debt amounting to $859.1 million.
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net Sales | $370.6 million | $352.4 million | +5.2% |
| Operating Profit | $67.6 million | $68.8 million | -1.7% |
| Adjusted Operating Profit | $89.4 million | $93.4 million | -4.3% |
| GAAP EPS | $0.72 | $0.75 | -4.0% |
| Adjusted EPS | $1.06 | -- | -- |
CEO Commentary
"In the second quarter, we delivered solid results across both our strategic platforms, reaching record-high backlog levels in Crane Currency and returning to growth in CPI core sales. We are already seeing the benefits from the addition of OpSec Security to our portfolio. The response from customers has been overwhelmingly positive and the integration is progressing well," said Aaron W. Saak, Crane NXT's President and Chief Executive Officer.
Analysis and Outlook
Crane NXT Co (CXT, Financial) has demonstrated resilience and growth in Q2 2024, with notable achievements in sales and adjusted EPS. The integration of OpSec Security has positively impacted the company's performance, although challenges such as unfavorable foreign exchange and higher manufacturing costs have affected profit margins. The company's focus on operational excellence and strategic M&A is expected to drive future growth and shareholder value.
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Explore the complete 8-K earnings release (here) from Crane NXT Co for further details.
