Crane NXT (CXT) Investor Day 2026 summary

Strategic vision, priorities, and growth initiatives

• Accelerating organic growth through differentiated authentication and traceability technologies, expanding leadership in core and adjacent markets, and driving operational excellence via the Crane Business System (CBS).

• Recent acquisitions, including Antares Vision, expand the addressable market to $13 billion and position the company as a leader in life sciences and food & beverage traceability, with integrated equipment and software offerings.

• CBS is embedded across the organization, supporting productivity, margin expansion, and synergy realization, with over 200 tool champions and 80,000 hours of annual training.

• Capital allocation prioritizes organic growth, disciplined M&A (targeting 1–2 acquisitions per year), and shareholder returns, with a target to keep net leverage below 3x.

• The company is diversifying away from cash exposure, aiming for less than 50% of the portfolio in cash-in markets by 2028.

Segment performance and business developments

• Security and Authentication Technologies (SAT) segment targets ~$1 billion revenue and ~28% adjusted EBITDA margin by 2028, driven by new U.S. banknote launches, international currency demand, and authentication expansion.

• Crane Authentication benefits from rising counterfeiting, regulatory expansion, and demand for brand and government solutions, with more than half of revenues from emerging markets.

• Crane Currency leverages proprietary micro-optics technology, with strong annuity-like revenue from long-term contracts and a robust pipeline of international opportunities, especially in Africa, Latin America, and the Middle East.

• CPI segment targets ~$890 million revenue and ~32% adjusted EBITDA margin by 2028, benefiting from the U.S. currency refresh and service market growth.

• Service business in CPI maintains an 80% attach rate, with growth in smart safes, kiosks, and self-checkout, driving recurring revenue and margin stability.

Financial outlook and capital deployment

• Targeting mid-single-digit organic sales growth, with total sales expected to reach ~$2.5 billion by 2028, supported by M&A and core market growth.

• EBITDA projected to grow from $400 million in 2025 to $600 million in 2028, with core margins expanding to 26% and total margin at 24% due to lower-margin acquisitions.

• Free cash flow conversion expected to remain in the 90%-110% range, with CapEx at 3%-5% of sales, focused on expanding micro-optics capacity and technology investments.

• Dividend payout targeted at ~15% of adjusted free cash flow, with additional share repurchases as part of capital deployment.

• 2026 guidance reaffirms 4%-6% sales growth, ~25% adjusted EBITDA margin, and EPS of $4.10-$4.40.