Crane NXT (CXT) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales rose 5.3% year-over-year to $330.3M, with adjusted EPS of $0.54, driven by acquisitions and strong international currency demand, despite core sales declines from U.S. Currency equipment upgrades.

• Completed the acquisition of De La Rue Authentication Solutions for £300M, combining it with OpSec to form Crane Authentication and expanding the Security and Authentication Technologies segment.

• Record international currency backlog reached $370M–$401M, with a book-to-bill ratio of 2.4, reflecting strong demand for anti-counterfeiting technology.

• Net income attributable to common shareholders fell to $21.7M, with operating profit and margins down year-over-year due to lower volumes and acquisition dilution.

• Reaffirmed full-year adjusted EPS guidance of $4.00–$4.30, with tariff impacts mitigated through pricing and supply chain actions.

Financial highlights

• Q1 2025 net sales were $330.3M, up 5.3% year-over-year; adjusted segment operating profit margin was 19%–19.2%, impacted by lower volumes and acquisition dilution.

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

• Free cash flow was negative $31M to $(30.5)M, mainly due to timing of collections; full-year FCF conversion expected at 90%–110%.

• Adjusted EBITDA margin for Q1 2025 was 18.5%, down from 25.7% in Q1 2024.

• Operating profit for Q1 2025 was $37.3M, with margin at 11.3% (down from 17.7% year-over-year).

Outlook and guidance

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

• 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.

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

• Full-year adjusted free cash flow conversion expected at 90%–110%.