In This Article:
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Q4 Sales Growth: Approximately 12% year-over-year, reaching $399 million.
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Full Year Sales Growth: Approximately 7% year-over-year, nearly $1.5 billion.
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Adjusted EBITDA Margin: Approximately 27% for both Q4 and full year.
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Adjusted Free Cash Flow Conversion: 109% in Q4 and 76% for the full year.
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Adjusted EPS: $1.20 in Q4 and $4.26 for the full year.
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CPI Backlog: $146 million at year-end, with a book-to-bill ratio over one for Q4.
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Security and Authentication Technologies Core Sales Growth: Over 7% in Q4 and approximately 5% for the full year.
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Net Leverage: Approximately 1.5 times at year-end, expected to increase to 2.3 times post-acquisition of De La Rue Authentication Solutions.
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2025 Sales Growth Guidance: 1% to 3%, with FX headwinds of 1 to 2 points.
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2025 Adjusted EPS Guidance: $4 to $4.30.
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2025 Adjusted Free Cash Flow Conversion Guidance: 90% to 110%.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Crane NXT Co (NYSE:CXT) reported a 12% sales growth in Q4 and 7% for the full year 2024, aligning with expectations.
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The company achieved an adjusted EBITDA margin of approximately 27% for both Q4 and the full year.
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Crane NXT Co (NYSE:CXT) successfully integrated acquisitions like OpSec and Tru Tag Smart Packaging, enhancing their product portfolio.
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The company secured 13 new international currency denominations, showcasing its leading security technology.
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Crane NXT Co (NYSE:CXT) increased its annual dividend by 6%, reflecting a strong commitment to shareholder returns.
Negative Points
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Adjusted segment operating margin decreased by 130 basis points year-over-year due to segment mix and dilution from OpSec.
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The US currency business is expected to decline by approximately 20% in 2025 due to production stoppages and lower demand.
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Retail end market sales are projected to decline by high single digits in 2025 due to softness in orders.
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The gaming segment experienced continued softness, impacting sales growth in the first half of 2025.
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The company's 2025 guidance does not account for potential new tariffs, which could impact financial performance.
Q & A Highlights
Q: What gives you confidence in a sustained second-half inflection in the gaming market for 2025? A: Aaron Saak, President and CEO, stated that the gaming market remains healthy, and Crane NXT holds a unique leadership position. The backlog inventory burn-down at OEMs is taking longer, but lead times have improved. OEMs indicate that order inflection will naturally occur in Q2, with some positive signs already visible.