Crane NXT Reports First Quarter 2025 Results

Core Insights - Crane NXT completed the acquisition of De La Rue Authentication, enhancing its position in the global authentication market [1][3] - The company increased its full-year sales growth guidance to a range of 6% to 8% for 2025 while maintaining its EPS guidance of $4.00 to $4.30 [1][4] Financial Performance - For Q1 2025, net sales reached $330.3 million, a 5.3% increase from $313.6 million in Q1 2024, driven by a $33.4 million contribution from the acquired OpSec Security business [5][11] - Core sales declined by 4.1%, primarily in the Currency business, reflecting planned upgrades to U.S. Currency equipment [5][6] - Operating profit for Q1 2025 was $37.3 million, down 32.7% from $55.4 million in Q1 2024, with an operating profit margin of 11.3% compared to 17.7% the previous year [7][27] Segment Results - Crane Payment Innovations reported net sales of $202.9 million, a decrease of 2.9% year-over-year, while Security and Authentication Technologies saw net sales of $127.4 million, an increase of 21.8% [9][10] - The operating profit margin for Crane Payment Innovations was 24.5%, down from 25.2% in the prior year, while Security and Authentication Technologies experienced a significant drop in operating profit margin to 1.9% from 19.4% [9][10] Cash Flow and Financial Metrics - Cash used for operating activities in Q1 2025 was $19.1 million, compared to cash provided of $9.5 million in the prior year, leading to an adjusted free cash flow of $(30.5) million [12][43] - As of March 31, 2025, the company held cash and cash equivalents of $173.8 million and total debt of $804.6 million [13][30] Guidance and Future Outlook - The updated full-year guidance reflects the acquisition of De La Rue Authentication and the impact of tariffs, with specific sales growth expectations for different segments [14][16] - The company announced a quarterly dividend of $0.17 per share for Q2 2025, payable on June 11, 2025 [17]