5 Spin-off Companies in 2023

2. Crane NXT, Co. (NYSE:CXT)

Number of Hedge Fund Holders: 42

In April, Crane NXT, Co. (NYSE:CXT) was spun off from Crane Company and announced that it’d start trading independently under the ticker symbol CXT. The now standalone cash/payments business provides key technologies to empower the backend of payment transactions. Its Crane Payment Innovations segment accounts for about 65% of the firm’s revenue.

In August Crane NXT, Co. (NYSE:CXT) posted second quarter results. Second quarter EPS came in at $1.12 beating estimates by $0.21. Revenue in the period jumped 5.5% year over year to $352.4 million, beating estimates by $15.87 million.

The company’s management talked about the spin-off and the company’s path ahead in an earnings call and said:

“Now that the separation is complete, Crane Company is a streamlined and more focused leading technology business. The market’s reaction since we announced the separation in March of last year, validates our strategy with substantial value already unlocked and we are confident that even more significant value creation lies ahead. The new Crane Company, as we described on Investor Day, has about $2 billion in sales and $335 million in adjusted EBITDA this year, a 4% to 6% long-term core sales growth rate from resilient and durable businesses that derive about 40% of strategic growth platform sales from the aftermarket, with substantial operating leverage on top of already solid margins today, and that should lead to double-digit average annual core profit growth with potential upside from capital deployment and starting with net debt to EBITDA at about 0.2 times the capital deployment opportunity is significant.”

Read the complete earnings call here.