Crane NXT (CXT) 24th Annual Diversified Industrials & Services Conference summary

Strategic acquisitions and portfolio growth

• Announced acquisition of Antares Vision, expanding into life sciences and food & beverage inspection and track-and-trace markets, adding $2B to TAM and aligning with secure, detect, and authenticate strategy.

• Antares uniquely offers both equipment and software for product tracking, with significant synergies expected in software and aftermarket services.

• Targeting EUR 12M in cost synergies over 3–5 years through operational efficiencies, procurement, and commercial channel leverage.

• Authentication platform formed by combining OpSec and De La Rue Authentication, now a $260M revenue business, aiming for 20% EBITDA by end of next year.

• Fortress, a new authentication product, leverages advanced material coatings and smartphone verification, with successful trials in the Middle East and broader rollout planned.

Authentication and anti-counterfeiting market dynamics

• Brand authentication TAM is several hundred million dollars, with growth from share of wallet and untapped industrial markets.

• Government solutions focus on tax stamps, especially in emerging markets, with expansion into specialty food and other products.

• ID verification, now over $1B TAM, is the largest segment, with growth tied to population, GDP, and increasing sophistication of anti-counterfeiting features.

• Penetration in industrial brand authentication is minimal, representing a major growth opportunity.

• Authentication solutions are sticky, often integrated into customer ERP systems, driving recurring revenue.

Currency business outlook and technology trends

• U.S. currency production faced a planned Q1 shutdown for equipment upgrades, reducing revenue by 40% in that period, but margins are expected to return to low 20% as shutdowns will not recur.

• New $10 bill production is piloting, with full production expected mid-2026; higher denomination mix is anticipated to drive revenue and profit.

• International currency backlog is at an all-time high, with robust quoting activity and ongoing share gains from lower-tier competitors.

• Central banks globally are accelerating redesigns to enhance security, benefiting high-tech providers.

• Capacity expansion is underway, with doubled footprint at key facilities and further CapEx planned as needed.