Crane NXT Reports First Quarter 2025 Results

About this update from Crane Nxt, Co.

Completes Acquisition of De La Rue Authentication, a Global Leader in Security and Authentication Technologies Increases Sales Growth Guidance to 6% to 8% for Full Year 2025; Maintaining Full Year EPS Guidance of $4.00 to $4.30 WALTHAM, Mass., May 07, 2025 (GLOBE NEWSWIRE) -- Crane NXT, Co. (NYSE: CXT) ("Crane NXT" or the "Company"), a premier industrial technology company, today announced its financial results for the first quarter ended March 31, 2025. First Quarter 2025 and Recent Highlights Aaron W. Saak, Crane NXT's President and Chief Executive Officer, stated: "Our first quarter results were in line with our expectations as we completed the final equipment upgrades needed to prepare for the decade-long growth opportunity from the new U.S. banknote series. While the market remains dynamic, our businesses continue to demonstrate resilience, and we are well-positioned to mitigate the impact of tariffs through pricing, supply chain management and productivity initiatives driven by the Crane Business System." Mr. Saak continued: “With the acquisition of De La Rue Authentication now complete, we have further solidified our position as a trusted technology leader in the global authentication market. We are confident in our ability to continue diversifying and expanding our portfolio of leading technology solutions, delivering long-term value creation for our shareholders." Summary of First Quarter 2025 Results First Quarter 2025 Results First quarter 2025 sales were $330.3 million, an increase of $16.7 million, or 5.3%, compared with the first quarter of 2024, primarily driven by $33.4 million, or 10.6% sales benefit from the acquired OpSec Security business, partially offset by $12.9 million, or 4.1%, core sales decline primarily in the Currency business as higher sales in international markets were more than offset by lower U.S. government sales related to the planned shutdown of key papermaking equipment in preparation for the new U.S. banknote series. First quarter 2025 operating profit was $37.3 million, compared with $55.4 million in the first quarter of 2024. Operating profit margin was 11.3%, compared with 17.7% last year primarily driven by the impact of lower volumes, unfavorable mix, and the dilutive impact of the OpSec Security acquisition, partially offset by productivity gains. Adjusted operating profit margin of 14.9% decreased 780bps, compared with 22.7% in the prior year. First Quarter 2025 Segment Results All comparisons detailed in this section refer to operating results for the first quarter 2025 versus the first quarter 2024. Crane Payment Innovations Sales of $202.9 million decreased $6.1 million, or 2.9%, compared with the first quarter of 2024, primarily driven by lower gaming volumes. Operating profit margin of 24.5% decreased 70 basis points, compared with 25.2% last year, primarily reflecting unfavorable product mix and the impact of lower volumes, partially offset by productivity gains and the impact of cost saving actions. Adjusted operating profit margin was 27.1% compared with 29.0% in the prior year. Security and Authentication Technologies Sales of $127.4 million increased $22.8 million, or 21.8%, compared with the first quarter of 2024, primarily driven by 31.9% sales benefit from the acquired OpSec Security business, partially offset by 7.8% core sales decline as higher sales in international markets were more than offset by anticipated lower U.S. government sales related to the planned shutdown of key papermaking equipment. Operating profit margin was 1.9% compared with 19.4% last year driven by the impact of lower volumes and under absorption of manufacturing overhead related to the planned equipment shutdown, net of favorable pricing, and the dilutive impact of the OpSec Security acquisition. Adjusted operating profit margin was 6.6% compared with 22.8% in the prior year. Cash Flow and Other Financial Metrics For the first quarter of 2025, cash used for operating activities was $19.1 million, compared with cash provided by operating activities of $9.5 million in the prior year. Adjusted free cash flow was $(30.5) million, compared with $(1.7) million in the prior year. The $28.8 million, decrease in Adjusted free cash flow was primarily due to lower cash provided by operating activities driven by lower net income and higher working capital requirements. (Please see the Non-GAAP Financial Measures tables in this release for a detailed reconciliation of reported results to adjusted measures). The Company held cash and cash equivalents of $173.8 million as of March 31, 2025, compared with $165.8 million as of December 31, 2024. Total debt was $804.6 million as of March 31, 2025, compared with $750.6 million as of December 31, 2024 as the Company drew down $53.5 million, net on its revolving credit facility through March 31, 2025. Full Year 2025 Guidance The Company is updating its initial full year guidance provided on February 12, 2025 to reflect the acquisition of De La Rue Authentication and the impact of tariffs as of May 1, 2025. Second Quarter 2025 Dividend Crane NXT announced its quarterly dividend of $0.17 per share for the second quarter of 2025. The dividend is payable on June 11, 2025, to shareholders of record as of May 30, 2025. Conference Call Crane NXT scheduled a conference call to discuss the first quarter financial results on Thursday, May 8, 2025, at 10:00 A.M. (Eastern). Interested parties may listen to a live webcast of the conference call by visiting the Events section of the Investor Relations section of the Company’s website. For those wishing to participate in the Q&A session of the call, please pre-register here . Pre-registration may be completed at any time up to the call start time. An accompanying slide presentation and a replay of the live event will also be available on the Company’s website. About Crane NXT, Co. Crane NXT is a premier industrial technology company that provides trusted technology solutions to secure, detect, and authenticate what matters most to its customers. Through its two industry-leading business segments, Security & Authentication Technologies and Crane Payment Innovations, Crane NXT provides customers with advanced technologies to secure high-value physical products, sophisticated detection equipment and systems, and proprietary products and services that protect brand identity and digital content. Crane NXT’s approximately 5,000 employees help our customers protect their most important assets and ensure secure, seamless transactions around the world every day. For more information, visit www.cranenxt.com. On April 3, 2023, Crane NXT, Co. (formerly Crane Holdings, Co.) completed the separation of its wholly-owned subsidiary at that time, Crane Company, in a tax-free distribution of Crane Company shares to Crane NXT stockholders (the "Separation"). Forward-Looking Statements Disclaimer This press release 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 expectations. Words such as “anticipate(s),” “expect(s),” “intend(s),” “believe(s),” “plan(s),” “may,” “will,” “would,” “could,” “should,” “seek(s),” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. The Company assumes no (and disclaims any) obligation to revise or update these statements to reflect future events or circumstances. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, it can give no assurance that its expectations will be attained. The Company cautions investors not to place undue reliance on any such forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from the Company's expectations include, but are not limited to: the impact of tariffs and other trade measures; changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations; demand for its products, which is variable and subject to factors beyond its control; risks associated with conducting a substantial portion of its business outside the U.S.; information systems and technology networks failures, breaches in data security, theft of personally identifiable and other information, and non-compliance with its contractual or other legal obligations regarding such information; being unable to identify or complete acquisitions, or to successfully integrate the businesses the Company acquires; fluctuation in the prices of, or disruption in its ability to source, components and raw materials, and delays in the distribution of its products; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow its business as planned; being unable to successfully develop and introduce new products, which would limit its ability to grow and maintain its competitive position; governmental regulations and failure to comply with those regulations; the ability to protect its intellectual property; risks from litigation, claims and investigations, including those related to product liability and warranties, and employee, commercial, intellectual property and environmental matters; risks related to its ability to improve productivity, reduce costs and align manufacturing capacity with customer demand; significant competition in the Company's markets; additional tax expenses or exposures; adverse impacts from intangible asset impairment charges; inadequate or ineffective internal controls; and risks related to the Separation, including not obtaining the intended tax treatment of the Separation transaction, failure of Crane Company to perform under the various transaction agreements and actual or potential conflicts of interest with Crane Company. Readers should carefully review Crane NXT, Co.’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Crane NXT, Co.’s Annual Report on Form 10-K for the year ended December 31, 2024 and the other documents Crane NXT, Co. and its subsidiaries file from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. (Financial Tables Follow) 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 Adjusted free cash flow, that are not prepared in accordance with GAAP. These non-GAAP measures are an addition, and not a substitute for or superior, to measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to operating income, net income or any other performance measures derived in accordance with GAAP. The Company's management believes that these non-GAAP measures of financial results (including on a forward-looking or projected basis) provide useful supplemental information to investors about Crane NXT. However, there are a number of limitations related to the use of these non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently or may use other measures to calculate their financial performance, and therefore the Company's non-GAAP measures may not be directly comparable to similarly titled measures of other companies. Reconciliations of certain forward-looking and projected non-GAAP measures, including Adjusted segment operating margin and Adjusted EPS, to the closest corresponding GAAP measure are not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, which could have a potentially significant impact on Crane NXT's future GAAP results. Crane NXT calculates Adjusted segment operating margin and Adjusted EPS as described below. 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:

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