Crane NXT (CXT) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales grew 5.3% year-over-year to $330.3M, with adjusted EPS of $0.54, driven by acquisitions despite core sales declines and currency impacts.

• Completed De La Rue Authentication Solutions acquisition for £300M, combined with OpSec to form Crane Authentication, expanding the SAT segment.

• Record international currency backlog of $370M and book-to-bill ratio of 2.4, supporting strong outlook.

• Net income attributable to common shareholders fell 42.6% to $21.7M, with operating profit down 32.7% to $37.3M, reflecting lower volumes and acquisition dilution.

• Reaffirmed full-year adjusted EPS guidance, with tariff impacts expected to be fully mitigated through pricing and productivity actions.

Financial highlights

• Q1 2025 net sales were $330.3M (up 5.3% year-over-year); adjusted segment operating profit was $63M, down from $85M in Q1 2024.

• Adjusted EPS was $0.54; GAAP EPS was $0.38.

• Adjusted operating profit margin was 14.9%, down from 22.7% year-over-year; adjusted EBITDA margin was 18.5%.

• Free cash flow was negative $31M, mainly due to timing of collections; full-year FCF conversion expected at ~90% to 110%.

• Net income was $21.7M, down from $37.8M in the prior year.

Outlook and guidance

• Full-year 2025 sales growth guidance increased to 6%–8% post De La Rue acquisition; SAT segment sales growth outlook is 19%–21%, CPI segment -2% to 0%.

• Full-year adjusted EPS guidance maintained at $4.00–$4.30; adjusted segment operating margin expected at 25.5%–26.5%.

• Non-operating expenses projected at $54M, including $10M additional interest from De La Rue acquisition.

• FX headwind of 1%–2% anticipated; ongoing market volatility and currency fluctuations may impact demand.

• Quarterly dividend of $0.17 per share announced for Q2 2025.