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• Sales Growth: Increased approximately 14% year over year, reaching approximately $400 million.

• Core Sales Growth: Approximately 5%, excluding the OpSec acquisition.

• Adjusted EPS: $1.16.

• Adjusted Segment Operating Margin: Approximately 27%.

• Adjusted Free Cash Flow Conversion: Approximately 89%.

• CPI Core Sales Growth: 1.5% in the third quarter.

• CPI Adjusted Segment Operating Margin: Increased 170 basis points to approximately 31%.

• Security and Authentication Technologies Sales Growth: 36%, including OpSec.

• Security and Authentication Technologies Core Sales Growth: Over 10%.

• Security and Authentication Technologies Adjusted Segment Operating Margin: Approximately 22%.

• Backlog Increase: Approximately 57% year over year.

• Net Leverage: Approximately 1.7 times, with a reduction of $65 million in outstanding debt.

• 2024 Sales Guidance: Narrowed to 6% to 8% growth.

• 2024 Adjusted EPS Guidance: Narrowed to $4.22 to $4.30.

• Adjusted Free Cash Flow Conversion Guidance: Lowered to approximately 70%.

• Warning! GuruFocus has detected 5 Warning Sign with CXT.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Crane NXT Co (NYSE:CXT) reported a 14% year-over-year increase in sales, reaching approximately $400 million, with core sales growth of 5% excluding the OpSec acquisition.

• The company announced two strategic acquisitions: De La Rue Authentication Solutions and TruTags Smart Packaging technology, which are expected to drive future growth and shareholder value.

• Crane NXT Co successfully integrated OpSec, achieving operational improvements in manufacturing and back-office processes.

• The company published its first ESG report, highlighting its commitment to philanthropy, sustainability, and good governance.

• Crane NXT Co repaid approximately $65 million of outstanding debt, ending the quarter with a net leverage of approximately 1.7 times, demonstrating strong financial management.

Negative Points

• The gaming segment underperformed expectations, with order rates not accelerating as anticipated, impacting overall revenue growth.

• Adjusted segment operating margin was diluted by the OpSec acquisition and an unfavorable product mix, reflecting challenges in maintaining profitability.

• The company lowered its adjusted free cash flow conversion guidance to approximately 70% due to the timing of international currency shipments.

• Crane NXT Co expects a double-digit decline in US currency volume in 2025, driven by the Federal Reserve's anticipated orders, impacting future revenue.

• The company anticipates flat revenue growth for 2025, indicating potential challenges in achieving organic growth across its segments.