Crane NXT (CXT) Q4 2024 earnings summary

Executive summary

• Achieved Q4 2024 sales growth of 12% and full-year growth of 7%, with adjusted EBITDA margin at 27% for both periods and adjusted EPS of $1.20 in Q4 and $4.26 for the year, reflecting strong operational execution and strategic progress.

• Integration of OpSec and TruTag acquisitions is progressing as planned, and the De La Rue Authentication Solutions acquisition is expected to close in Q2 2025.

• The company is diversifying its portfolio, reducing reliance on cash-centric markets, and increasing recurring revenue to 50% post-Q2 2025.

• Significant milestones include 13 new currency denominations, first OpSec channel contract, and expansion of CPI services.

• Announced a 6% increase in the annual dividend and introduced 2025 Adjusted EPS guidance of $4.00 to $4.30.

Financial highlights

• Q4 2024 sales were $399 million, up 12% year-over-year; full-year sales reached $1,487 million, up 7% year-over-year.

• Q4 adjusted net income was $69 million; full-year adjusted net income was $246 million.

• Adjusted segment operating margin was 27% in Q4 and for the year, with adjusted free cash flow conversion at 109% in Q4 and 76% for the year.

• Adjusted EBITDA for 2024 was $396.7 million, with a margin of 26.7%.

• Adjusted EPS for the year was $4.26.

Outlook and guidance

• 2025 sales growth expected at 1%-3% overall, with CPI segment 0%-2% and SAT segment 3%-5%.

• Full-year adjusted EPS guidance is $4.00-$4.30; segment margins expected at 26%-27%; adjusted free cash flow conversion targeted at 90%-110%.

• US Currency sales expected to decline 20% in 2025 due to production transition for new banknotes.

• CPI expected to return to growth in H2 2025 as gaming orders recover; retail hardware headwinds persist.

• Q1 2025 will be the lowest revenue and margin quarter, with adjusted segment operating margin around 20%.