Crane NXT, Co. reported significant financial results for the third quarter and the first nine months of 2024, reflecting both growth and challenges following its recent acquisition of OpSec Security. For the three months ended September 30, 2024, net sales reached $403.5 million, a 14.3% increase from $352.9 million in the same period of 2023. The nine-month net sales totaled $1,087.7 million, up 5.2% from $1,034.4 million year-over-year. The growth was attributed to the OpSec acquisition, which contributed $32.3 million in the third quarter and $52.7 million for the nine months.
Despite the revenue increase, operating profit for the third quarter decreased to $75.0 million from $79.7 million in 2023, and for the nine months, it fell to $198.0 million from $214.4 million. This decline was primarily due to unfavorable product mix and the impact of the OpSec acquisition, which incurred operating losses of $3.5 million in Q3 and $8.9 million for the nine months. Net income attributable to common shareholders for Q3 2024 was $47.1 million, down from $51.9 million in 2023, while for the nine months, it decreased to $126.5 million from $138.8 million.
The company’s cost of sales for the third quarter increased by 23.9% to $232.2 million, driven by the OpSec acquisition and higher material costs. Selling, general, and administrative expenses rose to $96.3 million, reflecting a 12.2% increase, also largely due to the acquisition. The effective tax rate for the quarter was higher than the previous year, influenced by a mix of non-U.S. earnings.
Crane NXT's balance sheet showed total assets of $2.41 billion as of September 30, 2024, up from $2.13 billion at the end of 2023, with goodwill increasing to $965.4 million, primarily due to the OpSec acquisition. The company reported total liabilities of $1.34 billion, an increase from $1.17 billion, with short-term borrowings rising significantly to $155.0 million from $4.6 million.
In addition to the OpSec acquisition completed on May 3, 2024, Crane NXT announced plans to acquire De La Rue Authentication Solutions for approximately $390 million, expected to close in the first half of 2025. The company has also initiated workforce reductions in its Crane Payment Innovations segment, incurring $2.7 million in severance charges during the nine months ended September 30, 2024.