Crane NXT announces strong fourth quarter and full year 2023 results

Crane NXT Co., a premier industrial technology company, announced its financial results for the fourth quarter and full year ending December 31, 2023.

Fourth-quarter 2023

Core sales grew 4.1% year-over-year.

GAAP operating profit margin was 20.3% and adjusted operating profit margin was 23.4%.

EPS was $0.86, and adjusted EPS was $0.99.

Full year 2023 highlights

Core sales grew 4.3% year-over-year.

GAAP operating profit margin was 20.6% and adjusted operating profit margin was 24.8%.

EPS was $3.28, and adjusted EPS was $4.16.

Aaron W. Saak, Crane NXT's president and chief executive officer, said in the announcement: "We delivered a strong close to 2023, underpinned by outstanding operational performance from both our businesses. We achieved adjusted EPS of $4.16, exceeding the high end of our guidance, as well as generating 4% growth in core sales, and expanding our adjusted segment operating margins by 30 basis points year over year. With this solid foundation in place, we are well-positioned to execute on our strategy, both organically and through acquisitions. We have a strong and flexible balance sheet, ample liquidity, and a robust pipeline of opportunities for disciplined M&A. As we look to 2024 and beyond, we have a clear path to build on our success, expand the business, and drive long-term, sustainable shareholder value.”

Fourth-quarter 2023 results

Fourth quarter 2023 sales were $356.9 million, an increase of $18.7 million, or 5.5%, compared with the fourth quarter of 2022. The sales increase was comprised of core sales growth of $14.0 million, or 4.1%, and favorable foreign exchange of $4.7 million, or 1.4%.

Fourth quarter 2023 operating profit was $72.4 million, compared with $73.0 million in the fourth quarter of 2022. Operating profit margin was 20.3%, compared with 21.6% last year, with the decline driven primarily by higher transaction costs related to the Separation and unfavorable product mix, partially offset by favorable pricing, productivity gains, and cost saving actions. Adjusted operating profit margin of 23.4% decreased 260 basis points, compared with 26.0% in the prior year.

Fourth quarter 2023 GAAP EPS was $0.86, and adjusted EPS was $0.99.

Fourth quarter 2023 segment results

Crane Payment Innovations

Sales of $215.1 million decreased $16.0 million, or 6.9%, compared with the fourth quarter of 2022, driven by a 7.3% decline in core sales as favorable pricing was more than offset by lower volumes as customers adjusted inventory levels to reflect reduced lead times. This decline in core sales was partially offset by favorable foreign exchange. Operating profit margin of 26.3% decreased 30 basis points, compared with 26.6% last year, primarily reflecting lower volumes and unfavorable product mix, partially offset by favorable pricing, cost saving actions and productivity gains. Adjusted operating profit margin was 29.0% compared with 31.6% in the prior year.

Crane Currency

Sales of $141.8 million increased $34.7 million, or 32.4%, compared with the fourth quarter of 2022, driven by 29.0% core sales growth related to higher international sales, and favorable foreign exchange. Operating profit margin of 22.0% increased 300 basis points, compared with 19.0% last year, primarily reflecting higher volumes, partially offset by unfavorable product mix. Adjusted operating profit margin was 24.5% compared with 22.2% in the prior year.

Full year 2023 results

Full year 2023 sales were $1,391.3 million, an increase of $51.4 million, or 3.8%, compared with full year 2022. The sales increase was comprised of core sales growth of $57.5 million, or 4.3%, partially offset by unfavorable foreign exchange of $6.1 million, or 0.5%.

Full year 2023 operating profit was $286.8 million, compared with $301.3 million in full year 2022. Operating profit margin was 20.6%, compared with 22.5% last year, with the decline driven primarily by higher transaction costs related to the Separation and unfavorable product mix, partially offset by favorable pricing, productivity gains, and cost saving actions. Adjusted operating profit margin of 24.8% decreased 80 basis points, compared with 25.6% in the prior year.

Full year 2023 GAAP EPS was $3.28, and adjusted EPS was $4.16.