Core Insights - GN faced a challenging year in 2025 due to external factors but managed to execute well in areas under its control, preparing for future profitable growth through innovation and operational initiatives [2][21] Financial Performance Overview - Group revenue for 2025 was DKK 16,782 million, reflecting a decline of 7% from DKK 17,985 million in 2024, with reported organic revenue growth of -4% [5][23] - Group EBITA decreased to DKK 1,908 million, down from DKK 2,153 million in 2024, resulting in an EBITA margin of 11.4% [6][24] - Free cash flow excluding M&A was DKK 1,112 million, contributing to a reduction in net interest-bearing debt by DKK 0.8 billion to DKK 8.9 billion, maintaining leverage at 3.8x [6][10] Division Performance Hearing Division - The Hearing division achieved 5% organic growth in 2025, building on previous years' growth of 10% in 2024 and 13% in 2023, driven by the ReSound Vivia platform [3][8] - Revenue for the Hearing division reached DKK 7,214 million, up from DKK 7,104 million in 2024 [3][23] Enterprise Division - The Enterprise division experienced a decline in organic growth of -6% in 2025, with revenue falling to DKK 6,899 million from DKK 7,474 million in 2024 [4][23] - The division maintained its market-leading position despite challenges from uncertain trade policies [4][21] Gaming Division - The Gaming division reported organic revenue growth of -2% in 2025, with total revenue at DKK 2,669 million [5][23] - The division faced a difficult market environment but managed to gain market share [5][21] Future Outlook - For 2026, GN expects organic revenue growth of 3% to 7% for the Hearing division, 0% to 6% for the Enterprise division, and 7% to 13% for the Gaming division [11][17] - The EBITA margin is projected to improve, supported by gross margin expansion and operational leverage [18][19]

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]