Crane NXT, Co. (NYSE:CXT) Q2 2023 Results Conference Call August 8, 2023 8:00 AM ET

Company Participants

Jason Feldman - Vice President, Investor Relations

Aaron Saak - President and Chief Executive Officer

Christina Cristiano - Senior Vice President and Chief Financial Officer

Conference Call Participants

Matt Summerville - D.A. Davidson

Bob Labick - CJS Securities

Operator

Greetings, and welcome to the Crane NXT, Co. Second Quarter 2023 Earnings Conference Call [Operator Instructions]. And please note that this conference is being recorded.

I will now turn the conference over to your host, Jason Feldman, Vice President, Investor Relations. Thank you, Jason. You may begin.

Jason Feldman

Thank you, operator, and good day, everyone. Welcome to our second quarter 2023 earnings release conference call. I'm Jason Feldman, Vice President of Investor Relations. On our call this morning, we will also have Aaron Saak, our President and Chief Executive Officer; and Christina Cristiano, our Senior Vice President and Chief Financial Officer. As usual, we will start off our call with a few prepared remarks, after which we will respond to questions.

Just a reminder that the comments we make on this call may include some forward-looking statements. We refer you to the cautionary language at the bottom of our earnings release and also in our annual report on Form 10-K and subsequent filings pertaining to forward-looking statements. Also during the call, we will be using some non-GAAP numbers, which are reconciled to the comparable GAAP numbers and tables at the end of our press release and accompanying slide presentation, both of which are available on our website at www.cranenxt.com in the Investor Relations section.

Now let me turn the call over to Aaron.

Aaron Saak

Thank you, Jason, and good morning. We appreciate everyone joining the call to discuss our second quarter financial results reported yesterday afternoon. Before we begin, I'd like to take this opportunity to thank all of the NXT team members around the world for their efforts to produce a very strong Q2. As many of you know, this is our first quarter post separation, and I'm very pleased with our operational execution. Overall, the results were ahead of our expectations. Both Crane Payment Innovations and Crane Currency had very strong quarters, and year-to-date, both businesses have done better than we guided at the beginning of the year. You can see the highlights on our Q2 performance on Slide 3. We delivered $352 million in sales with 6% core sales growth ahead of our expectations. Adjusted EBITDA was $104 million with adjusted EPS of $1.12 in Margin performance was also very strong with adjusted EBITDA margins over 29% and adjusted operating margins of over 26%. Notably, adjusted operating margins were above 30% in both segments, and these margins reflect significant sequential improvement.