Crane NXT (CXT) FY Conference Summary Company Overview - Crane NXT is a premier industrial technology company that separated from Crane Company in April 2023, focusing on technologies that secure, detect, and authenticate important assets for customers [4][5][6] - The company has projected sales of approximately $1.6 billion for the current year, with about 50% of revenue being recurring [5][6] Financial Performance - The company reported segment operating profit margins in the mid-20% range and high free cash flow, maintaining a leverage ratio of approximately 2.6 times [5][12] - Q2 results showed a 9% sales growth, aligning with expectations for the full year [12] Business Segments - Crane NXT operates in two reportable segments: Security and Authentication Technologies (SAT) and Crane Payment Innovations (CPI) [6][7] - SAT accounts for about 45% of revenue, while CPI contributes approximately 55% [7] - The SAT segment includes Crane Currency and Crane Authentication, formed through recent acquisitions of OPSEC and De La Rue [9][11] Market Position and Growth Strategy - Crane NXT holds leadership positions in most markets it operates in, with a strong focus on brand protection, government solutions, and identification security [9][10] - The company anticipates mid-single-digit growth across its authentication business, driven by customer adoption of technology [20][22] Acquisitions and Integration - The recent acquisition of De La Rue has been integrated into Crane Authentication, enhancing the company's capabilities in brand protection and government solutions [9][11] - The integration process is focused on operational excellence and continuous improvement through the Crane Business System [11][29] International Opportunities - The company sees significant growth potential in emerging markets, particularly in the Middle East, Africa, and Southeast Asia, where governments are increasingly adopting authentication technologies [21][39] - Crane NXT estimates a 15-20% market share in the international currency market, indicating room for growth [39] Currency Business Insights - The U.S. currency program is expected to see flat low single-digit volume growth, but with increased technology features leading to revenue and margin growth [32][34] - The company anticipates a gradual replacement of old notes with new designs, avoiding any abrupt changes in volume [35] Capital Allocation and M&A Strategy - Crane NXT plans to maintain a competitive dividend yield of approximately 1% while focusing on organic growth and potential M&A opportunities [62][66] - The company is actively pursuing M&A deals that align with its core business and can generate value, with a target to keep net debt below three times EBITDA [68][69] Challenges and Market Dynamics - The CPI segment has faced challenges due to tariffs, particularly affecting the vending business, but the company is mitigating impacts through pricing and productivity measures [58][46] - The gaming sector is showing signs of recovery, with expectations for double-digit sales growth in the second half of the year [45][62] Conclusion - Crane NXT is positioned for growth with a strong focus on technology leadership, operational excellence, and strategic acquisitions, while navigating challenges in the market [12][66]

Financial Data and Key Metrics Changes - The company reported a sales growth of approximately 9% year over year and an adjusted EPS of $0.97 for the second quarter [5][12] - Free cash flow conversion was 120% in the quarter, reflecting strong operating discipline [5][13] - Adjusted segment operating profit margin was approximately 24%, down about 350 basis points year over year due to lower CPI volume and acquisition dilution [13] Business Line Data and Key Metrics Changes - CPI core sales declined approximately 7% year over year, but gaming orders were up approximately 10% sequentially and 30% year over year [14][15] - Security and authentication technologies saw sales grow approximately 32% year over year, with core sales increasing about 9% driven by higher international currency volume [15][16] - The U.S. currency business resumed production after technology upgrades, with a record high backlog of approximately $400 million in the international currency business [16] Market Data and Key Metrics Changes - The backlog for CPI ended the quarter at approximately $144 million, with expectations for strong double-digit growth in gaming for the third quarter [14] - The company expects mid-single-digit growth for the full year in the international currency segment despite tough comparisons to a strong 2024 [16] Company Strategy and Development Direction - The company aims to build a leading industrial technology firm focused on solutions that secure, detect, and authenticate [8][9] - Integration of De La Rue authentication and OPSEC has created a leading position in the authentication market, with a focus on operational improvements through the Crane Business System [9][10] - The company is confident in its M&A pipeline, expecting to announce another transaction within the next year [7][20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook, reaffirming full-year EPS guidance in the range of $4 to $4.30 [8][18] - The company is navigating tariff and macro uncertainties through pricing and supply chain actions [8] - Management highlighted the importance of technology leadership and product launches in driving future growth [20] Other Important Information - The company anticipates operating profit margins of approximately 20% in the authentication business by the end of 2026, ahead of original expectations [11] - The company is focused on operational synergies and cost structure simplification following the De La Rue acquisition [78] Q&A Session Summary Question: Can you provide an analysis of the other main CPI verticals and the outlook for CPI? - Management expressed confidence in the gaming sector, expecting strong double-digit growth in the second half of the year, while noting headwinds in vending due to China tariffs [25][26] Question: How should we think about the revenue and earnings cadence between Q3 and Q4? - Management indicated that revenue and operating profit will be slightly more weighted to Q4, with confidence in full-year guidance [31][32] Question: Can you elaborate on the Fortress product and its applications? - Fortress is a new materials technology for product authentication, allowing users to trace products back to their point of origin using a smartphone app [45][46] Question: What are the core drivers for the authentication business going forward? - The authentication business is segmented into brand authentication, government solutions, and government ID, each expected to grow consistently due to market demand and synergies with existing operations [65][67] Question: What is the outlook for U.S. currency volumes in 2026? - Management expects volumes to be in the same range as the current year, with a focus on the mix of denominations being a key driver [71][72] Question: What actions have been taken to enhance margins in the authentication segment? - The company is executing operational synergies through cost structure simplification, rooftop consolidation, and product rationalization to enhance margins [78]

Financial Data and Key Metrics Changes - Crane NXT reported a sales growth of approximately 9% year over year in Q2 2025, with adjusted EPS of $0.97 and a free cash flow conversion of 120% [5][14][20] - The adjusted segment operating profit margin was approximately 24%, down about 350 basis points year over year due to lower CPI volume and acquisition dilution [14][19] Business Line Data and Key Metrics Changes - CPI core sales declined approximately 7% year over year, but gaming orders increased by approximately 10% sequentially and 30% year over year, indicating a strong recovery in that segment [15][17] - Security and authentication technologies saw sales growth of approximately 32% year over year, with core sales increasing by 9% driven by higher international currency volume [16][18] Market Data and Key Metrics Changes - The international currency business achieved a record high backlog of approximately $400 million in Q2 2025, with expectations of mid-single-digit growth for the full year despite tough comparisons to a strong 2024 [17][19] - The U.S. currency business resumed production in Q2 after technology upgrades, with a significant milestone achieved in preparation for a new currency series expected to launch in 2026 [17][75] Company Strategy and Development Direction - The company aims to build a leading industrial technology firm focused on solutions that secure, detect, and authenticate, with a strong emphasis on operational improvements through the Crane Business System (CBS) [8][10] - The integration of De La Rue authentication and OPSEC has created a leading position in the authentication market, with anticipated operating profit margins of approximately 20% by the end of 2026 [12][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook, reaffirming full-year EPS guidance in the range of $4 to $4.30, while navigating tariff and macro uncertainties through pricing and supply chain actions [8][19] - The company is optimistic about the M&A pipeline, expecting to announce another transaction within the next year, supported by a strong balance sheet and free cash flow generation [7][60] Other Important Information - The company has launched new products, including Fortress for authentication and Jetscan Ultra for currency scanning, enhancing its technology leadership position [6][21] - The anticipated realization of operating synergies from the De La Rue acquisition is expected to accelerate, contributing to margin improvements [12][81] Q&A Session Summary Question: Analysis of CPI verticals and long-term outlook - Management expressed confidence in the gaming segment, expecting strong double-digit growth in the second half of the year, while other verticals are performing as expected with some headwinds from tariffs [24][25][29] Question: Revenue and earnings cadence in the back half of the year - Management indicated a slight step up in core revenue in Q3, with expectations for a more weighted performance in Q4, maintaining full-year guidance [30][32][34] Question: SAT guidance and sales growth expectations - Management clarified that the unchanged SAT guidance reflects timing of customer orders and project-focused business dynamics, with no change to the overall outlook [41][43] Question: Details on Fortress product - Fortress is a new materials technology for product authentication, allowing users to trace products back to their origin using a smartphone app, with a strong pipeline for various applications [45][47][49] Question: Margin phasing in the back half - Management expects margin accretion in CPI due to improved product mix and productivity initiatives, with SAT margins anticipated to be in the low 20s percent for the full year [52][54] Question: M&A opportunities and funnel health - Management expressed optimism about the M&A funnel, indicating a healthy pipeline and confidence in closing a deal within the next year [58][60] Question: Core drivers for Crane authentication business - The authentication business is segmented into brand authentication, government solutions, and government ID, with each segment expected to grow consistently due to market demand and technology leadership [66][68][70]

Risks and uncertainties that could cause actual results to differ materially from the Company's expectations include, but are not limited to: the impact of tariffs and other trade measures; changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations; demand for its products, which is variable and subject to factors beyond its control; fluctuation in the prices of, or disruption in its ability to source, components and raw materials, a ...

Core Insights - Crane NXT reported revenue of $404.4 million for the quarter ended June 2025, marking a year-over-year increase of 9.1% [1] - The earnings per share (EPS) for the same period was $0.97, down from $1.06 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $376.41 million by 7.44%, while the EPS also surpassed the consensus estimate of $0.92 by 5.43% [1] Revenue Breakdown - Net Sales from Security and Authentication Technologies reached $193 million, exceeding the average estimate of $173.02 million by two analysts [4] - Net Sales from Crane Payment Innovations totaled $211.4 million, slightly above the average estimate of $203.42 million, but represented a year-over-year decline of 5.8% [4] Profitability Metrics - Operating profit from Security and Authentication Technologies was reported at $18 million, significantly lower than the average estimate of $31.59 million [4] - Operating profit from Crane Payment Innovations was $49 million, compared to the average estimate of $53.42 million [4] Stock Performance - Crane NXT shares have returned +1% over the past month, outperforming the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Crane NXT (CXT) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.92 per share. This compares to earnings of $1.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +5.43%. A quarter ago, it was expected that this maker of engineered industrial products would post earnings of $0.51 per share when it actually produced earnings of $0.54, delivering a surprise of +5.88%.Over the last fo ...

Delivers sales growth of 9%; Maintains full year EPS guidance of $4.00 to $4.30WALTHAM, Mass., Aug. 06, 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 second quarter ended June 30, 2025. Second Quarter 2025 Highlights Sales of $404 million, an increase of 9% year-over-year; core sales decline of 1%, in-line with the Company's expectations.GAAP operating profit margin of 11.8%, and Adju ...

WALTHAM, Mass., Aug. 04, 2025 (GLOBE NEWSWIRE) -- Crane NXT, Co. (NYSE: CXT), a premier industrial technology company, announced that Aaron Saak, President and Chief Executive Officer, and Christina Cristiano, Senior Vice President and Chief Financial Officer, will participate in a fireside chat at the Oppenheimer 28th Annual Technology, Internet & Communications Conference on Monday, August 11, 2025 at 2:55 p.m. ET. The event is being held virtually and a live webcast of the fireside chat will be availabl ...

WALTHAM, Mass., July 09, 2025 (GLOBE NEWSWIRE) -- Crane NXT, Co. (NYSE: CXT), a premier industrial technology company, today announced its schedule for the company’s second quarter 2025 results. Earnings Release: Wednesday, August 6, 2025, after close of market by public distribution. To access the earnings release, please visit the Investors section of Crane NXT’s website at www.cranenxt.com.Earnings Call: Thursday, August 7, 2025, at 10:00 a.m. Eastern Time. To access the webcast, please visit the Investo ...

Group 1 - Crane NXT (NYSE: CXT) is the sole supplier of US paper currency to the US government, which positions the company uniquely in the market [1] - The company also provides services related to cash flow and investment opportunities in the oil and natural gas sector, indicating a diversified business model [1] - The focus on cash flow generation highlights the company's commitment to value and growth prospects, appealing to investors looking for real potential [1] Group 2 - Subscribers to the investment service receive access to a 50+ stock model account, which enhances their investment strategies [2] - The service includes in-depth cash flow analyses of exploration and production (E&P) firms, providing valuable insights for investors [2] - Live chat discussions about the sector foster a community environment for subscribers, promoting engagement and knowledge sharing [2]