Core Viewpoint - Crane NXT is hosting its 2026 Investor Day, emphasizing the importance of safety and providing logistical information for attendees [1][2]. Group 1: Event Logistics - The event prioritizes safety, with no planned fire drills, and attendees are instructed to treat any alarms as real emergencies [2]. - Presentations are being webcasted, and a replay will be available on the company's website after the event [3]. - Attendees are encouraged to silence their mobile devices and computers to minimize disruptions during the presentations [2]. Group 2: Financial Information - The presentations will include forward-looking statements and references to non-GAAP financial measures, with legal notices provided for important risk factors [3]. - Reconciliations of non-GAAP measures to GAAP measures will be available in the presentation appendix and financial filings [3].

Core Insights - Crane NXT reported full-year sales of approximately $1.7 billion, reflecting an 11% increase, with core sales growth of about 1% [1] - The company achieved fourth-quarter sales of $477 million, up around 20% year-over-year, driven by acquisitions and strong performance in Crane Currency [2] - Adjusted EBITDA margin was approximately 25% in Q4 and 24% for the full year, with adjusted EPS of $1.27 for the quarter and $4.06 for the year [3] Financial Performance - For the full year, adjusted segment operating margin decreased by approximately 260 basis points, influenced by acquisitions and international currency costs [1] - Fourth-quarter adjusted segment operating margin was about 26%, down roughly 120 basis points from the prior year due to added costs and unfavorable foreign exchange impacts [2] - CPI segment core sales declined about 4% year-over-year, while SAT delivered core sales growth of about 7% [6][9] Segment Analysis - In the CPI segment, fourth-quarter core sales were flat, with double-digit growth in gaming offset by softness in other markets [6] - SAT experienced a fourth-quarter core sales increase of approximately 11%, with total segment sales growth exceeding 40% [7] - SAT backlog was up more than 50% year-over-year, supporting management's confidence in future growth [9] Strategic Initiatives - Crane NXT plans to invest in international currency capacity and advance its pending Antares Vision transaction, expecting to take it private by mid-2026 [4][19] - The company aims for 2026 sales growth of 4-6%, with adjusted segment EBITDA margin around 28% and adjusted EPS of $4.10 to $4.40 [14][15] - Management outlined steps to expand capacity, including increased staffing and partnerships for banknote printing [12] Market Trends - Increased counterfeiting in emerging markets is prompting redesigns with higher security features, supporting demand in concentrated business areas [16] - The company expects revenue to be weighted towards the second half of the year, with mid-teens revenue growth anticipated in Q1 [17] - The company ended 2025 with net leverage of approximately 2.3x and plans to use free cash flow to pay down debt [18]

FOURTH QUARTER & FULL YEAR 2025 FINANCIAL RESULTS February 12, 2026 FORWARD-LOOKING STATEMENTS – DISCLAIMER This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectations. Words such as "anticipate(s)," "expect(s)," "intend(s)," "believe(s)," "plan(s)," "may," "will," "would," "could," "should," "seek(s)," and ...

Core Insights - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Arm Holdings PLC has an RSI of 27.3, with a recent stock price of $114.03, and has seen a 15% decline over the past month [7] - Crane NXT Co has an RSI of 26.7, closing at $47.20, and has experienced a 14% drop in the last month [7] - BlackBerry Ltd has an RSI of 24, with shares closing at $3.77 after a 13% decrease over the past five days [7] Group 2: Analyst Ratings and Performance - Goldman Sachs downgraded Arm Holdings from Neutral to Sell, lowering the price target from $160 to $120 [7] - Baird maintained an Outperform rating for Crane NXT, reducing the price target from $88 to $82 [7] - BlackBerry reported Q3 revenue of $141.8 million, exceeding estimates, and achieved its strongest GAAP profitability in nearly four years [7]

Core Insights - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Arm Holdings PLC has an RSI of 27.3, with a recent stock price of $114.03, and has seen a 15% decline over the past month [7] - Crane NXT Co has an RSI of 26.7, with a recent stock price of $47.20, and has experienced a 14% drop in the last month [7] - BlackBerry Ltd has an RSI of 24, with a recent stock price of $3.77, and reported a 13% decline over the past five days [7]

Core Insights - Crane NXT reported Q3 CY2025 results that exceeded market revenue expectations, with sales increasing by 10.3% year-on-year to $445.1 million and a non-GAAP profit of $1.28 per share, which was 1.8% above analysts' consensus estimates [1][3][6] Financial Performance - Revenue for Q3 was $445.1 million, surpassing analyst estimates of $429.8 million, reflecting a year-on-year growth of 10.3% and a 3.6% beat [6] - Adjusted EPS was reported at $1.28, exceeding analyst estimates of $1.26 by 1.8% [6] - Adjusted EBITDA reached $122.4 million, beating analyst expectations of $117.7 million, with a margin of 27.5% [6] - Operating margin remained stable at 18.4%, consistent with the same quarter last year [6] - The backlog at the end of the quarter was $557 million [6] - Organic revenue increased by 1.4% year-on-year, against analyst expectations of a 1.7% decline, representing a 314.3 basis point beat [6] - Market capitalization stood at $3.52 billion [6] Strategic Outlook - Management revised the full-year adjusted EPS guidance down to $4.05 at the midpoint, indicating a 2.4% decrease due to ongoing weakness in the vending segment and higher costs associated with increased international production [4][6] - The company is focusing on expanding its authentication technologies and integrating recent acquisitions while capitalizing on favorable developments in U.S. currency redesigns, such as the upcoming launch of the new $10 bill [4][5] Segment Performance - The performance in the international currency business was strong, driven by robust order activity and new customer wins, particularly in Latin America [3] - CEO Aaron Saak highlighted that the company's micro-optics technology was specified in nine new currency denominations year-to-date, indicating ongoing demand for advanced anti-counterfeiting features [3] - Despite the strong performance in currency, there was noted softness in the CPI's vending segment, attributed to customer delays following recent price increases driven by tariffs [3][5]

Core Insights - Crane NXT's shares fell 6.1% after reporting third-quarter results that exceeded Wall Street estimates but lowered its full-year adjusted EPS forecast [1][2] Financial Performance - Revenue for the quarter increased by 10.3% year on year, reaching $445.1 million, while adjusted EPS was $1.28, surpassing expectations [2] - The company revised its full-year adjusted EPS guidance to a midpoint of $4.05, reflecting a 2.4% decrease from the previous forecast [2] Market Reaction - The stock market's reaction indicates that the news is considered significant, despite Crane NXT's shares being relatively stable with only six moves greater than 5% in the past year [4] - The recent drop in stock price suggests that investors are concerned about future profitability, overshadowing the solid quarterly performance [2][4] Stock Performance - Since the beginning of the year, Crane NXT's shares have increased by 3.8%, but are still trading 11.7% below their 52-week high of $68.91 [6] - An investment of $1,000 in Crane NXT's shares at the IPO in March 2023 would now be valued at $1,541 [6]

Financial Performance - Sales grew by approximately 10% in Q3 2025, reaching $445 million, driven by acquisitions and strong performance in International Currency[6, 14] - Adjusted EPS for Q3 2025 was $1.28, aligning with expectations[6, 15] - Adjusted Segment Operating Profit Margin increased by approximately 50 bps year-over-year, reflecting higher volume and improved mix[15] - The company is updating its full-year Adjusted EPS guidance to a range of $4.00 to $4.10[6, 24] - Free Cash Flow conversion was approximately 115% in Q3 2025, with an expected range of approximately 90%-110% for the full year[6, 15] Business Segment Highlights - Security and Authentication Technologies (SAT) sales increased by 28.1% in Q3 2025, reaching $229 million, with core sales growth of approximately 9%[18, 19] - Crane Payment Innovations (CPI) sales decreased by 3.8% in Q3 2025, amounting to $216 million, but maintained a strong margin of approximately 31%[16, 17] Strategic Initiatives - The company signed an agreement to acquire Antares Vision, a global leader with approximately €200 million in 2024 revenue and approximately 15% Adjusted EBITDA Margin, expanding its technology solutions to life sciences and food & beverage markets[6, 8] - US Currency business is expected to grow at approximately HSD in 2026, with new $10 bill production expected to start in mid-2026[6, 28]

Core Insights - SouthernSun Asset Management's "SouthernSun Small Cap Strategy" reported a gross return of 11.73% for Q3 2025, underperforming the Russell 2000 Index and Russell 2000 Value Index which returned 12.39% and 12.60% respectively [1] - Over the trailing twelve months, the strategy returned -0.66% gross, significantly lower than the 10.76% and 7.88% returns of the respective indexes [1] Company Highlights - Crane NXT, Co. (NYSE:CXT) was highlighted in the investor letter, with a one-month return of -8.39% and a 52-week gain of 10.72% [2] - As of November 4, 2025, Crane NXT, Co. had a market capitalization of $3.625 billion, with shares closing at $63.13 [2] - SouthernSun initiated a new position in Crane NXT during Q3 2025, having prior knowledge of the business from its parent company, Crane Corporation [3] Hedge Fund Interest - Crane NXT, Co. was held by 24 hedge fund portfolios at the end of Q2 2025, an increase from 21 in the previous quarter [4] - Despite the interest, the potential of Crane NXT is viewed as less favorable compared to certain AI stocks, which are believed to offer greater upside potential and lower downside risk [4]

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