Crane NXT, Co. Q1 FY2026 earnings call

• Started the year with solid momentum, organic sales growth ~6%, total sales growth ~17% y/y.
• Successfully completed acquisition of Antares Vision ahead of schedule, expanding reach into $3 billion life sciences and food and beverage in-markets.
• Increased adjusted EBITDA margin by 80 basis points, a 22% improvement over prior year.
• Focused on accelerating organic growth, building leadership positions, and driving operational excellence through CBS.

Security and Authentication Technologies (SAT): Q1 sales growth 51% y/y, organic sales up ~22%, adjusted EBITDA margin up ~600 bps to 20%, expects continued margin expansion to ~25% by end of year. Detection and Traceability Technologies (DTT): Q1 sales declined ~4% y/y due to lower hardware sales, adjusted EBITDA margin down ~160 bps, expects accelerating sales growth and margin accretion in CPI throughout the year with segment backlog 221 million including ~100 million of Antares Vision backlog.

• Updated 2026 guidance: total sales growth 15-17%, SAT expects high single-digit sales growth, crane authentication mid-single-digit organic growth with total growth in low 20s% including De La Rue authentication, DTT expects sales growth in low 20s% including Antares Vision, CPI expects sales flat y/y. Full-year adjusted segment EBITDA margin ~27%, maintaining EPS guidance range $4.10-$4.40. Second quarter expected mid-teen sales growth in SAT, mid-20s% sales growth in DTT with CPI sales flat to slightly down y/y and Antares Vision contributing ~60-70 million of sales.

Q: How is the go-forward funnel of opportunity in the international currency business?

A: Have backlog through 2026, building for 2027 and 2028, adding 10-15 new micro optic wins a year, over 70 denominations to be quoted and designed by 2030.

Q: Quantify magnitude of dilution and accretive impact of Antares deal?

A: Added interest expense partially offset by increased profit from Antares Vision in 2026, 2027 expected to be accretive to EPS.

Q: Dynamics between SAT's currency and authentication sales?

A: Currency mid-single-digit growth for full year, phasing of sales not linear with strong first half and less strong second half due to comps, authentication performed as expected with mid-single-digit growth this year.

Q: Impact of macro on Antares?

A: No significant or material impact, excited about exposure to secular growth in pharmaceuticals, life sciences, and food and beverage.

Q: Growth expectations and drivers for DTT's CPI hardware and services?

A: CPI performed as expected, services growing mid-single digits, hardware and vending largely as expected with seasonality, expect recovery through the year.

Q: U.S. currency growth trajectory and benefit into 2027?

A: Benefiting from mix improvement in 2026, high single-digit growth, uplift more in 2027.

Q: Modeling and M&A appetite?

A: Tax and non-operating expense changes due to Antares inclusion, focus on integrating Antares Vision now, M&A focus on 2027 to keep balance sheet below three, funnel remains healthy.

Q: Incremental tech abilities of Antares?

A: Brings more sophisticated track and trace software into pharmaceutical and food and beverage markets, early focus on partnering Crane Authentication products with Antares' channel.

Q: Organic growth initiatives?

A: Prioritizing investment in international currency business, increasing CapEx and OpEx, focusing on building new production lines and outsourcing.

Q: Earnings build and price capture magnitude?

A: Expect acceleration throughout the year, currency in SAT to face tougher comps in back half of year, core price increase low to mid single digits across portfolio