Crane NXT, Co. has reported strong fourth quarter and full year 2023 results, along with a 14% increase in the annual dividend. The company delivered full year GAAP EPS of $3.28 and adjusted EPS of $4.16, which exceeded the 2023 guidance. Full year 2023 core sales grew by 4%, with Crane Currency core sales growing by 8%.
Aaron W. Saak, Crane NXT's President and Chief Executive Officer, expressed satisfaction with the company's performance, stating, "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."
Saak also highlighted the company's strategic position, stating, "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."
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $3,346 | $3,074 | $2,937 | $3,408 | $3,375 | $3,382 |
| Revenue Growth | n/a | -8.1% | -4.48% | 16.04% | -0.97% | 0.23% |
| Operating Margins | 13% | 6% | 9% | 16% | 11% | 11% |
| Net Margins | 10% | 4% | 6% | 13% | 12% | 12% |
| Net Income (MM) | $336 | $133 | $181 | $435 | $401 | $397 |
| Net Interest Expense (MM) | $51 | $47 | $55 | $47 | $52 | $58 |
| Depreciation & Amort. (MM) | $73 | $68 | $77 | $75 | $76 | $119 |
| Earnings Per Share | $5.5 | $2.2 | $3.08 | $7.36 | $7.01 | $7.04 |
| EPS Growth | n/a | -60.0% | 40.0% | 138.96% | -4.76% | 0.43% |
| Diluted Shares (MM) | 61 | 61 | 59 | 59 | 57 | 58 |
| Free Cash Flow (MM) | $305 | $330 | $275 | $445 | -$210 | -$247 |
| Capital Expenditures (MM) | $109 | $64 | $34 | $54 | $58 | $62 |
| Current Ratio | 1.84 | 1.64 | 1.49 | 1.96 | 0.99 | 2.0 |
| Total Debt (MM) | $956 | $991 | $843 | $842 | $545 | $708 |
| Net Debt / EBITDA | 1.19 | 2.38 | 0.86 | 0.6 | 0.71 | 0.98 |
Crane NXT has strong operating margins with a stable trend and positive EPS growth. Additionally, the company's financial statements display a decent current ratio of 2.0 and healthy leverage levels. However, the firm suffers from weak revenue growth and decreasing reinvestment in the business and positive cash flows.
