Crane NXT Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Total Sales: $388 million, up 17% year-over-year.

Organic Sales Growth: Approximately 6%.

Adjusted EBITDA Margin: Increased by 80 basis points to 19%.

Adjusted EPS: $0.60, an 11% increase year-over-year.

Free Cash Flow: Reflects normal seasonality; expected to accelerate throughout the year with a full-year conversion ratio of 90% to 110%.

Net Leverage: Approximately 2.9x, expected to decrease to about 2.3x by year-end 2026.

2Strategic Updates and Business Highlights

Acquisition of Antares Vision: Completed ahead of schedule, expanding Crane NXT’s reach into the life sciences and food and beverage markets, with an expected contribution of $200 million to $210 million in revenue for 2026.

Segment Performance:

Security and Authentication Technologies (SAT): Sales grew 51% year-over-year, with organic growth of 22%. Adjusted EBITDA margin increased by 600 basis points to 20%.

Detection and Traceability Technologies (DTT): Sales declined 4% year-over-year due to lower hardware sales, but service growth was mid-single digits. Antares Vision's backlog included in DTT totals.

Operational Excellence: Continued focus on synergies and productivity improvements, particularly through the Crane Business System (CBS).

3Forward Guidance and Outlook

2026 Sales Growth: Updated guidance for total sales growth to 15% to 17%.

Segment Expectations:

SAT: High single-digit sales growth.

Crane Authentication: Mid-single-digit organic growth with total growth in the low 20s percent.

DTT: Low 20s percent sales growth, including Antares Vision.

CPI: Expected to be flat year-over-year.

Adjusted Segment EBITDA Margin: Anticipated to be approximately 27% for the full year.

4Bad News, Challenges, or Points of Concern

Dilution from Antares Vision: Anticipated to be a few million dollars in 2026 due to increased interest expenses.

CPI Hardware Sales: Expected to remain flat or slightly down, reflecting ongoing challenges in the hardware market.

Tough Comparatives: Anticipated tougher year-over-year comparisons in the second half of 2026, particularly in the SAT segment due to strong performance in 2025.

5Notable Q&A Insights

International Currency Business: Strong backlog and confidence in performance, with expectations for continued growth in micro-optic wins and new currency designs.

Antares Vision Integration: No significant impacts from macroeconomic conditions like the war; focus on leveraging Antares's capabilities in regulated markets.

CPI Services Growth: Driven by expanding service offerings and recurring revenue from third-party equipment.

Future M&A Plans: Focus on integrating Antares Vision first, with potential for new acquisitions in 2027, contingent on reducing debt levels. Overall, Crane NXT reported a solid start to 2026, with strong sales growth and strategic advancements through the acquisition of Antares Vision, while also navigating challenges in certain segments and preparing for future growth opportunities.