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.

• Programmatic M&A is central, targeting 1–2 acquisitions per year, with disciplined capital allocation and net leverage maintained below 3x.

• Investments in capacity, especially in micro-optics for currency, support growth and margin expansion, with CapEx targeted at 3–5% of sales.

• Diversification strategy aims to reduce cash exposure below 50% of the portfolio by 2028, leveraging proprietary technology in authentication and traceability.

Financial Performance, Guidance, and Targets

• Targeting ~$2.5 billion in revenue and $600 million EBITDA (mid-20s% margin) by 2028, with mid-single-digit organic sales growth and ~100% free cash flow conversion.

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

• Margin expansion driven by CBS productivity, mix improvement, and $20 million in synergies, especially from Antares Vision.

• CapEx expected at 3–5% of sales, with $1 billion M&A capacity post-Antares Vision closing.

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

Business Segment Highlights and Developments

• Security & 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.

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

• Crane Authentication benefits from global counterfeiting trends, regulatory expansion, and integration of advanced security and software, with strong growth in emerging markets.

• Continued innovation in micro-optics and security features expands addressable markets and supports sustained growth in both U.S. and international currency.

• Service business in CPI maintains an 80%+ attach rate, expanding into adjacencies like smart safes and kiosks, and is a key driver of margin and cash flow stability.