Crane NXT (CXT, Financial) has successfully finalized its acquisition of De La Rue Authentication Solutions, a prominent entity in security and authentication technologies. This strategic move augments Crane NXT’s offerings, particularly aligning with OpSec Security's authentication and online brand protection solutions. The acquisition broadens the company's capabilities to include security technologies for government-issued identification documents and credentials.
Aaron Saak, the President and CEO of Crane NXT, emphasized that the addition of De La Rue Authentication Solutions is a significant strategic enhancement to their Security and Authentication Technologies division. He highlighted that this integration positions Crane NXT to better serve its customers by utilizing advanced technology to deliver a more comprehensive range of solutions in highly desirable markets.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Crane NXT Co (CXT, Financial) is $83.83 with a high estimate of $157.00 and a low estimate of $51.00. The average target implies an upside of 78.67% from the current price of $46.92. More detailed estimate data can be found on the Crane NXT Co (CXT) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Crane NXT Co's (CXT, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
CXT Key Business Developments
Release Date: February 13, 2025
- Q4 Sales Growth: Approximately 12% year-over-year, reaching $399 million.
- Full Year Sales Growth: Approximately 7% year-over-year, nearly $1.5 billion.
- Adjusted EBITDA Margin: Approximately 27% for both Q4 and full year.
- Adjusted Free Cash Flow Conversion: 109% in Q4 and 76% for the full year.
- Adjusted EPS: $1.20 in Q4 and $4.26 for the full year.
- CPI Backlog: $146 million at year-end, with a book-to-bill ratio over one for Q4.
- Security and Authentication Technologies Core Sales Growth: Over 7% in Q4 and approximately 5% for the full year.
- Net Leverage: Approximately 1.5 times at year-end, expected to increase to 2.3 times post-acquisition of De La Rue Authentication Solutions.
- 2025 Sales Growth Guidance: 1% to 3%, with FX headwinds of 1 to 2 points.
- 2025 Adjusted EPS Guidance: $4 to $4.30.
- 2025 Adjusted Free Cash Flow Conversion Guidance: 90% to 110%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Crane NXT Co (CXT, Financial) reported a 12% sales growth in Q4 and 7% for the full year 2024, aligning with expectations.
- The company achieved an adjusted EBITDA margin of approximately 27% for both Q4 and the full year.
- Crane NXT Co (CXT) successfully integrated acquisitions like OpSec and Tru Tag Smart Packaging, enhancing their product portfolio.
- The company secured 13 new international currency denominations, showcasing its leading security technology.
- Crane NXT Co (CXT) increased its annual dividend by 6%, reflecting a strong commitment to shareholder returns.
Negative Points
- Adjusted segment operating margin decreased by 130 basis points year-over-year due to segment mix and dilution from OpSec.
- The US currency business is expected to decline by approximately 20% in 2025 due to production stoppages and lower demand.
- Retail end market sales are projected to decline by high single digits in 2025 due to softness in orders.
- The gaming segment experienced continued softness, impacting sales growth in the first half of 2025.
- The company's 2025 guidance does not account for potential new tariffs, which could impact financial performance.
