Crane Nxt, Co. ((CXT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Crane NXT’s recent earnings call for Q3 2025 painted a picture of robust growth and strategic advancements, despite facing certain market challenges. The overall sentiment was positive, driven by strong sales growth and significant achievements in its currency and service businesses. The acquisition of Antares Vision and the successful integration of the authentication business further bolster its portfolio. However, challenges in the vending market and macroeconomic uncertainties continue to pose risks.
Strong Sales Growth
Crane NXT reported an impressive sales growth of approximately 10% year-over-year in Q3 2025. The company achieved an adjusted EPS of $1.28 and a free cash flow conversion ratio of 115%, showcasing its strong financial performance and operational efficiency.
International Currency Business Success
The international currency business surpassed expectations with several new customer wins, including a significant contract with a prominent Latin American country. This success positions the business to reach the high end of its target for new denominations, highlighting Crane NXT’s growing influence in the global currency market.
U.S. Currency Business Growth
The U.S. currency business is poised for high single-digit growth in 2026, driven by the Federal Reserve’s increased demand for higher denomination banknotes. This anticipated growth underscores the strategic importance of Crane NXT’s currency operations.
Service Business Expansion
CPI’s service business achieved two significant wins, contributing to mid-single-digit ARR growth. This expansion is building a resilient business model that promises long-term stability and growth potential.
Antares Vision Acquisition
Crane NXT’s agreement to acquire Antares Vision is a strategic move to enhance its portfolio with advanced detection and inspection systems for the life sciences and food & beverage sectors. This acquisition is expected to drive future growth and innovation.
Authentication Business Integration
The integration of the authentication business has progressed well, with upgrades to micro-optics technology improving margins and customer retention. This integration is a testament to Crane NXT’s commitment to enhancing its technological capabilities.
Vending Market Challenges
CPI’s vending segment faced high single-digit declines due to macroeconomic and tariff uncertainties. These challenges have impacted overall CPI performance, highlighting the need for strategic adjustments in this segment.
Tariff and Macroeconomic Impact
Tariffs and broader macroeconomic uncertainties continue to affect CPI’s short-cycle businesses, leading to a cautious outlook. These factors necessitate careful navigation to mitigate potential risks.
Forward-Looking Guidance
Crane NXT has updated its full-year sales growth guidance for 2025 to a range of 9% to 11%, up from the previous 6% to 8%, driven by strong performance in its Security and Authentication Technologies segment. The company also narrowed its adjusted EPS guidance for the full year to $4 to $4.10, reflecting confidence in its operational strategies and market positioning.
In summary, Crane NXT’s Q3 2025 earnings call highlighted a period of strong growth and strategic advancements, with positive sentiment surrounding its currency and service businesses. While challenges in the vending market and macroeconomic uncertainties persist, the company’s forward-looking guidance and strategic acquisitions position it well for future growth.