Crane NXT Delivers Strong Financial Performance in 2024

Crane NXT, a leading industrial conglomerate, has reported impressive financial results for the year ended December 31, 2024, showcasing its resilience and strategic focus. The company’s sales increased by 14.5% to $2,131.2 million, driven by strong core business growth, strategic acquisitions, and favorable foreign exchange movements.

Robust Revenue and Profit Trends The company’s Aerospace & Electronics segment saw an 18.2% increase in sales, reaching $932.7 million. This was primarily due to higher volumes and pricing, as well as the impact of the Vian acquisition. The Process Flow Technologies segment also performed well, with sales increasing by 11.7% to $1,198.5 million, driven by the BAUM, CryoWorks, and Technifab acquisitions, along with higher core sales.

The company’s overall operating profit increased by a remarkable 42.1% to $355.8 million in 2024. This was largely attributable to strong productivity gains, the absence of expenses related to the Separation, and higher pricing, which offset the impact of unfavorable mix. The Aerospace & Electronics segment’s operating profit increased by 31.4% to $209.0 million, while the Process Flow Technologies segment’s operating profit grew by 15.3% to $240.3 million.

Strengthening the Portfolio through Strategic Acquisitions Crane NXT has been actively shaping its portfolio through strategic acquisitions, further enhancing its capabilities and market position. In 2024, the company completed the acquisition of Vian Enterprises, a global designer and manufacturer of multi-stage lubrication pumps and lubrication system components for aerospace and defense applications. The company also acquired CryoWorks, a leading supplier of vacuum insulated pipe systems for cryogenic and hydrogen applications, and Technifab, a provider of vacuum insulated pipe systems and valves for cryogenic applications. These acquisitions have been integrated into the Aerospace & Electronics and Process Flow Technologies segments, respectively, strengthening the company’s product offerings and market presence.

Additionally, in 2023, Crane NXT completed the acquisition of BAUM, a German-based company that designs, manufactures, and distributes lined piping products primarily focused on chemical and industrial end markets. This acquisition has been integrated into the Process Flow Technologies segment, further expanding the company’s capabilities in the industrial end markets.

Navigating Challenges and Capitalizing on Opportunities The company’s financial performance was not without its challenges. In 2024, the company’s manufacturing site in Marion, North Carolina was directly affected by flooding from Hurricane Helene. The company incurred losses and expenses of $23.3 million related to the damages, which were partially offset by $20.0 million in insurance recoveries received during the year.

Despite these challenges, Crane NXT has demonstrated its ability to adapt and capitalize on emerging opportunities. The company’s divestiture of the Engineered Materials segment to KPS Capital Partners, L.P. for approximately $208.0 million on a cash-free and debt-free basis, effective January 1, 2025, is a strategic move that allows the company to focus on its core business segments.

Outlook and Future Prospects Looking ahead to 2025, Crane NXT expects to continue its strong performance, with a total year-over-year sales increase of approximately 5%. This growth is anticipated to be driven by 4% to 6% core growth, coupled with an acquisition benefit of 1% to 2%, partially offset by a 1% headwind from foreign exchange.

In the Aerospace & Electronics segment, the company expects sales to increase in the high single-digit range, driven by a substantial improvement in the commercial OEM business and continued strength in the military OEM and aftermarket businesses. The Process Flow Technologies segment is also expected to see sales growth of approximately 4% to 5%, with contributions from the Technifab and CryoWorks acquisitions and continued demand in key end markets.

The company anticipates an improvement in operating profit and operating margin across both segments, driven by productivity gains, operating leverage on higher volumes, lower transaction-related expenses, and the positive impact of the recent acquisitions, partially offset by unfavorable mix in the Aerospace & Electronics segment.

Conclusion Crane NXT’s strong financial performance in 2024, marked by robust revenue growth, improved profitability, and strategic portfolio optimization, demonstrates the company’s ability to navigate challenges and capitalize on opportunities. The company’s focus on strategic acquisitions, productivity improvements, and disciplined cost management has positioned it well for continued success in the years ahead. Investors can look forward to Crane NXT’s continued growth and value creation as the company executes its strategic priorities.