Crane NXT (CXT) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Company Participants Matt Roache - VP, Investor RelationsAaron Saak - CEO & President of Crane NXTChristina Cristiano - Senior VP & CFOBob Labick - PresidentDamian Karas - Executive Director Conference Call Participants Matthew Summerville - Equity AnalystMichael Halloran - Senior Research Analyst - Associate Director of ResearchBobby Brooks - Vice President, Senior Equity Research Analyst Operator Good day, and thank you for standing by. Welcom ...

Crane NXT (CXT) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Speaker0 Good day, and thank you for standing by. Welcome to the Crane NXT Q1 twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press 11 ...

FIRST QUARTER 2025 FINANCIAL RESULTS May 8, 2025 FORWARD-LOOKING STATEMENTS – DISCLAIMER This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectations. Words such as "anticipate(s)," "expect(s)," "intend(s)," "believe(s)," "plan(s)," "may," "will," "would," "could," "should," "seek(s)," and similar expression ...

Shares of Crane NXT have returned +12.2% over the past month versus the Zacks S&P 500 composite's +10.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performa ...

Crane NXT (CXT) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.88%. A quarter ago, it was expected that this maker of engineered industrial products would post earnings of $1.20 per share when it actually produced earnings of $1.20, delivering no surprise.Over the last four quarter ...

Completes Acquisition of De La Rue Authentication, a Global Leader in Security and Authentication Technologies Increases Sales Growth Guidance to 6% to 8% for Full Year 2025; Maintaining Full Year EPS Guidance of $4.00 to $4.30 WALTHAM, Mass., May 07, 2025 (GLOBE NEWSWIRE) -- Crane NXT, Co. (NYSE: CXT) ("Crane NXT" or the "Company"), a premier industrial technology company, today announced its financial results for the first quarter ended March 31, 2025. First Quarter 2025 and Recent Highlights Completed th ...

Core Insights - Crane NXT has completed the acquisition of De La Rue Authentication Solutions, enhancing its portfolio in security and authentication technologies [1][2] - The acquisition is expected to be accretive to Adjusted EPS in the first full year and aims for double-digit ROIC by year five [3] Company Overview - Crane NXT is an industrial technology company focused on providing technology solutions for security, detection, and authentication [4] - The company operates through two main segments: Security & Authentication Technologies and Crane Payment Innovations, employing approximately 5,000 people [4] Strategic Fit - The acquisition of De La Rue Authentication Solutions is seen as a strategic fit within Crane NXT's Security and Authentication Technologies segment, allowing for a broader suite of solutions [2] - A new business unit called "Crane Authentication" will be created, integrating OpSec and De La Rue Authentication Solutions to enhance customer service and value creation [2]

Company Overview - Crane NXT, Co. is a premier industrial technology company focused on providing trusted technology solutions for security, detection, and authentication [2] - The company operates through two main business segments: Security & Authentication Technologies and Crane Payment Innovations [2] - Crane NXT employs approximately 4,500 individuals dedicated to helping customers protect valuable assets and ensure secure transactions globally [2] Upcoming Financial Events - Crane NXT is scheduled to release its first quarter 2025 earnings on May 7, 2025, after the market closes [3] - An earnings call will take place on May 8, 2025, at 10:00 a.m. Eastern Time, accessible via the company's website [3] - Archived webcasts of the earnings call will be available on the Crane NXT website [3]

FOURTH QUARTER & FULL YEAR 2024 FINANCIAL RESULTS February 13, 2025 FORWARD-LOOKING STATEMENTS – DISCLAIMER This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectations. Words such as "anticipate(s)," "expect(s)," "intend(s)," "believe(s)," "plan(s)," "may," "will," "would," "could," "should," "seek(s)," and ...

Financial Data and Key Metrics Changes - Sales growth was approximately 12% in Q4 and approximately 7% for the full year [9] - Adjusted EBITDA margin was approximately 27% in both Q4 and the full year [10] - Adjusted EPS was $1.20 in Q4 and $4.26 for the full year [10][21] - Adjusted free cash flow conversion was approximately 109% in Q4 and approximately 76% for the full year [10][21] Business Line Data and Key Metrics Changes - CPI sales were flat compared to Q4 2023, with mid-single-digit growth across most end markets, offset by softness in gaming [22] - Security and authentication technologies saw core sales up over 7% in Q4, driven by international currency [25] - CPI core sales decreased by approximately 1% for the full year, driven by softness in new gaming orders [24] Market Data and Key Metrics Changes - CPI ended the year with a backlog of $146 million, reflecting a return to more normalized levels [23] - The security and authentication technology segment ended the year with a backlog of $248 million, indicating strong future sales confidence [26] Company Strategy and Development Direction - The company is focused on diversifying its portfolio and has made significant acquisitions, including OpSec and TruTag Smart Packaging [15][46] - The anticipated acquisition of De La Rue Authentication Solutions is expected to close in Q2 2025, expanding the customer base and product offerings [15][27] - The company aims to reduce exposure to cash-centric markets, moving from approximately 80% to 65% of the portfolio focused on cash-related products [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth opportunities presented by the new US currency series, with production upgrades ongoing [42][50] - The company expects overall sales growth of 1% to 3% for 2025, with specific segments experiencing varied growth rates [30] - Management highlighted the importance of maintaining a strong balance sheet and free cash flow generation to support future growth and acquisitions [28][51] Other Important Information - The company announced a 6% increase in its annual dividend, reflecting a commitment to a balanced capital allocation strategy [29] - Adjusted free cash flow conversion is expected to be between 90% and 110% in 2025, influenced by the timing of international currency shipments [34] Q&A Session Summary Question: Gaming market dynamics and confidence in second-half recovery - Management reiterated confidence in the gaming market's health and expected order inflection in Q2, despite delays in inventory burn-down [56][58] Question: First-quarter dynamics and margin expectations - Management confirmed high double-digit declines in US government currency sales in Q1 due to production shutdowns, with expectations for margins to return to high twenties percent in subsequent quarters [62][64] Question: Expectations for leverage and acquisition pipeline - The company ended the year with 1.5 times net leverage, expecting it to rise to 2.3 times post-acquisition, while maintaining a healthy acquisition pipeline [70][75] Question: Impact of acquisitions on margins - OpSec has been dilutive to margins by about 250 basis points in 2024, with expectations for similar impacts in 2025, but management is implementing strategies to improve margins over time [78][80] Question: Retail end market trends - Management noted a shift in retailers exploring various self-checkout solutions, leading to softness in traditional OEM orders but growth in custom solutions [110][111] Question: Security authentication sales growth guidance - Management acknowledged lower-than-expected sales growth in Q4 due to timing and softness in the US market but expressed confidence in international currency growth moving forward [122][124] Question: Potential tariff impacts - Management does not foresee material impacts from tariffs, having taken proactive measures to mitigate risks in the supply chain [128][130] Question: Currency business growth sources - Growth in the currency business is expected to come from a mix of existing contracts and new wins, with a strong sales funnel supporting future performance [134][135]