Crane Nxt, Co. · NYSE:CXT
Crane Nxt — Q4 2024 Earnings Presentation
26 slides from Crane Nxt's earnings presentation, Feb 13, 2025
Slide 1: Fourth Quarter & Full Year 2024 Financial Results
FOURTH QUARTER & FULL YEAR 2024 FINANCIAL RESULTS February 13, 2025
Slide 2: Forward-Looking Statements – Disclaimer
FORWARD-LOOKING STATEMENTS – DISCLAIMER This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectati
Slide 3: Achieved Significant Milestones in 2024
ACHIEVED SIGNIFICANT MILESTONES IN 2024 Q4 2024 FY 2024 • Delivered Q4 and 2024 results in-line with expectations • Awarded 13 new currency denominations utilizing ~12% ~7% micro-optic technology in 2024 Sales Growth Sales Growth • Won first contract selling micro-optics through OpSec channel in Q4
Slide 4: Q4 2024 Results Summary
Q4 2024 RESULTS SUMMARY Q4 2024 Q4 2023 • Sales growth of ~12%, driven by OpSec $ Millions, except per- share amounts GAAP Adjusted1 GAAP Adjusted1 and strong performance from Sales $399 $399 $357 $357 international Currency Segment • Adj. segment OP margin down ~10 bps $87 $108 $88 $97 Operating Pr
Slide 5: Full Year 2024 Results Summary
FULL YEAR 2024 RESULTS SUMMARY FY 2024 FY 2023 • Sales growth of ~7% reflecting partial $ Millions, except per- share amounts GAAP Adjusted1 GAAP Adjusted1 year of OpSec (May-December) Sales $1,487 $1,487 $1,391 $1,391 • Core sales growth of ~1% driven by Segment strength in international Currency $
Slide 6: Crane Payment Innovations – Q4 Results
CRANE PAYMENT INNOVATIONS – Q4 RESULTS GAAP Adjusted1 $ Millions Q4 2024 Q4 2023 Change Q4 2024 Q4 2023 Change Sales $215 $215 (0.1%) $215 $215 (0.1%) Operating Profit $50 $57 (12.0%) $62 $62 0.2% Operating Margin 23.1% 26.3% (320bps) 29.0% 29.0% 0bps Backlog $146 $217 (32.7%) $146 $217 (32.7%) • Fl
Slide 7: Crane Payment Innovations – FY Results
CRANE PAYMENT INNOVATIONS – FY RESULTS GAAP Adjusted1 $ Millions FY 2024 FY 2023 Change FY 2024 FY 2023 Change Sales $873 $886 (1.5%) $873 $886 (1.5%) Operating Profit $228 $243 (5.9%) $260 $265 (1.8%) Operating Margin 26.2% 27.4% (120bps) 29.8% 29.9% (10bps) Backlog $146 $217 (32.7%) $146 $217 (32.
Slide 8: Security and Authentication Technologies – Q4 Results
SECURITY AND AUTHENTICATION TECHNOLOGIES – Q4 RESULTS GAAP Adjusted1 $ Millions Q4 2024 Q4 2023 Change Q4 2024 Q4 2023 Change Sales $184 $142 29.9% $184 $142 29.9% Operating Profit $37 $31 19.9% $46 $35 30.7% Operating Margin 20.3% 22.0% (170bps) 24.7% 24.5% 20bps Backlog $248 $243 2.2% $248 $243 2.
Slide 9: Security and Authentication Technologies – FY Results
SECURITY AND AUTHENTICATION TECHNOLOGIES – FY RESULTS GAAP Adjusted1 $ Millions FY 2024 FY 2023 Change FY 2024 FY 2023 Change Sales $614 $505 21.5% $614 $505 21.5% Operating Profit $111 $116 (4.6%) $143 $131 9.3% Operating Margin 18.1% 23.0% (490bps) 23.2% 25.8% (260bps) Backlog $248 $243 2.2% $248
Slide 10: Fortifying the Balance Sheet for Future M&A
FORTIFYING THE BALANCE SHEET FOR FUTURE M&A Net leverage1 of ~1.5x (Dec. 31, 2024) • Secured financing for acquisition of De La Rue $760M Authentication, expected to close in Q2 $656M ̶ Term loan commitment in place $210M Revolver ̶ Estimate ~2.3x net leverage after close $490M • Expanded revolver t
Slide 11: 2025 Guidance
2025 GUIDANCE Full Year • Sales growth range reflects: Guidance ̶ CPI returns to growth in 2H 2025 as gaming Crane NXT Sales Growth1 +1% to +3% orders improve; anticipate headwinds in retail hardware throughout 2025 CPI Sales Growth 0% to +2% ̶ SAT growth driven by ~MSD growth in international Curre
Slide 12: 2025 Outlook: CPI
2025 OUTLOOK: CPI VENDING FINANCIAL SERVICES GAMING RETAIL % of CPI Sales1 ~35% ~25% ~20% ~15% Est. 2025 Sales Growth % ~LSD growth ~MSD growth ~LSD growth ~HSD decline • Continued growth in • Growth of field services as • End market remains healthy • Expecting ~DD declines in automated and secure c
Slide 13: 2025 Outlook: US Currency
2025 OUTLOOK: US CURRENCY COMPLETING FINAL UPGRADES, DECADE-LONG TAILWIND IN PLACE Current Technology Supplied by Crane Currency 2024 2025 2026 Paper Micro-Optics Launch of New Design1 Q4 Q1 Q2 Q3 Q4 Production of new 2026 Final Equipment series Upgrades begins Nov ’24 – Mar ‘25 2028 On track to
Slide 14: Significant Progress Executing Strategy
SIGNIFICANT PROGRESS EXECUTING STRATEGY Providing trusted technology solutions to secure, detect and authenticate what matters most Security & Authentication Technologies Crane Payment Innovations Segments 2025 Sales1 2025 Sales1 ~$640M ~$880M Est. Closing Q2 Businesses Authentication Operating Disc
Slide 15: Creating a Resilient Portfolio Aligned to Secular Tailwinds
CREATING A RESILIENT PORTFOLIO ALIGNED TO SECULAR TAILWINDS Reducing exposure to cash- Increasing reoccurring and centric products and services recurring revenue Non-cash related ~20% product revenue ~35% Reoccurring & Recurring ~40% ~50% Revenue Cash-centric product revenue ~80% ~65% All Other ~60%
Slide 16: 2025 Outlook Summary
2025 OUTLOOK SUMMARY • Expecting ~LSD sales growth in 2025, positioned to accelerate as the year progresses − Strong international Currency backlog in place, continue to win with technology leadership − OpSec aligned to market tailwinds with leading technology offerings − U.S. Currency in transition
Slide 17: Q&A
Q&A CRANE
Slide 18: Appendix
APPENDIX CRANE NO T
Slide 19: Non-GAAP Explanations
NON-GAAP EXPLANATIONS Crane NXT reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release includes certain non- GAAP financial measures, including Adjusted operating profit, Adjusted operating margin, Adjusted EPS, free cash flow, and
Slide 20: Non-GAAP Explanations
NON-GAAP EXPLANATIONS The Company's management believes that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations: • "Adjusted operating profit" and "Adjusted operating margin" add back to operating profit items
Slide 21: Non-GAAP Explanations
NON-GAAP EXPLANATIONS The Company's management believes that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations: • “Free cash flow,” “Adjusted free cash flow” and "Adjusted free cash flow conversion” provide su
Slide 22: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures (unaudited, in millions except per share data) Totals may not sum due to rounding. 22 1 Related party interest with Crane Company incurred prior to the Separation.
Slide 23: Non-GAAP Financial Measures by Segment, Fourth Quarter
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures by Segment, Fourth Quarter (unaudited, in millions) 23 Totals may not sum due to rounding.
Slide 24: Non-GAAP Financial Measures by Segment, Full Year
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures by Segment, Full Year (unaudited, in millions) 24 Totals may not sum due to rounding.
Slide 25: Free Cash Flow, Net Leverage Ratio
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Free Cash Flow, Net Leverage Ratio (unaudited, in millions, except net leverage ratio) 1 Represents cash paid for transaction related expenses. *Please see the Non-GAAP Financial tables in this release. *Please refer to the Non-GAAP Financial Measures t
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