Crane NXT (CXT) CJS Securities 26th Annual "New Ideas for the New Year” Investor Conference summary

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%).