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Crane NXT (CXT) investor relations material
Crane NXT CJS Securities 26th Annual "New Ideas for the New Year” Investor Conference summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Financial performance and outlook
Projected 2025 sales of $1.6 billion, with about 50% recurring revenue and mid-20% adjusted segment operating margins; leverage slightly above two.
Both reportable segments—security/authentication technologies and payment innovations—will be roughly equal in size by end of 2025, with segment sales of ~$785M and ~$850M respectively.
Free cash flow conversion expected in the 90%-110% range for 2026, driven by strong performance in payment innovations.
CPI segment maintains high margins (29%-30%) and is expected to deliver flat to low single-digit core growth.
Net leverage stands at approximately 2.3x as of September 30, 2025, supporting a strong balance sheet.
Strategic initiatives and acquisitions
Programmatic M&A strategy continues, with Antares Vision acquisition adding €200 million revenue and track-and-trace software capabilities.
Antares Vision to be fully consolidated in early 2026, with initial margin dilution expected to improve through Crane Business System application.
Recent acquisitions (OpSec, De La Rue, Antares) expand total addressable market into higher-growth, niche sectors.
Healthy M&A pipeline and funnel remain strong, with next major acquisition likely in early 2027, maintaining leverage below three.
Antares Vision brings advanced equipment, services, and software for supply chain safety and authenticity.
Market trends and operational highlights
International currency business outperformed in 2025, with record backlog and bookings into 2027.
Investments in capacity (OpEx, CapEx, staffing) underway to meet growing demand, especially in micro-optics and printing.
Outsourcing of lower-margin paper and printing to partners secures long-term contracts, with margin impact expected to diminish over time.
U.S. currency business set for high single-digit growth in 2026, driven by the new $10 bill and ongoing upgrade cycle.
Broad geographic sales distribution: Americas (~40%), APAC (~15%), MEA (~15%), Europe (~20%).
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