Total Revenue

+5% (Q1 2025: $330.3M vs. Q1 2024: $313.6M)

Acquisitions and core sales growth drove the increase. The revenue uplift reflects the continued benefit from strategic acquisitions—boosting overall sales even with modest organic growth—building on previous period trends that supported revenue expansion. " " "

Net Income Attributable to Common Shareholders

-43% (Q1 2025: $21.7M vs. Q1 2024: $37.8M)

Net income declined sharply due to higher costs and lower operating profits. Increased cost of sales and expenses, compounded by the effects of higher interest expenses and unfavorable operational factors (e.g., lower volumes and integration costs from acquisitions), furthered the drop seen relative to the previous period. "

Operating Profit

-33% (Q1 2025: $37.3M vs. Q1 2024: $55.4M)

Operating profit dropped largely because of lower volumes—especially in the Currency business due to planned equipment shutdowns—which resulted in under absorption of manufacturing overhead, along with a dilutive impact from acquisition-related costs and an unfavorable product mix compared to the previous period. " "

Cost of Sales

+18% (Q1 2025: $190.1M vs. Q1 2024: $161.2M)

Cost of sales increased by $28.9M (17.9%) due to higher production costs and under absorption of manufacturing overhead, with additional contributions from acquisition-related impacts—a trend that amplified the increase observed in the prior period. " "

Operating Cash Flow

Shifted to –$19.1M (from +$9.5M in Q1 2024)

Operating cash flow turned negative as lower net income combined with increased working capital requirements (such as higher disbursements for accounts payable, accrued liabilities, and taxes) strained liquidity compared to prior period performance. " "

Short-term Borrowings

+773% (Q1 2025: $263.5M vs. Q1 2024: $30.2M)

Short-term borrowings surged due to markedly higher drawdowns on the Revolving Facility used to fund acquisitions (e.g., the De La Rue deal) and meet working capital needs, continuing a trend initiated by previous financing restructuring activities. " "

Accounts Receivable

+50% (Q1 2025: $274.0M vs. Q1 2024: $182.8M)

Accounts receivable increased significantly, reflecting the higher revenue base and possibly more liberal credit terms post-acquisitions, a continuation of the upward trend in sales seen in the prior period. " "

Proceeds from Revolving Credit Facility

+253% (Q1 2025: $106.0M vs. Q1 2024: $30.0M)

Proceeds jumped as increased borrowing capacity—augmented by an amendment to the credit agreement—increased utilization of the revolving facility to fund acquisitions and working capital initiatives, an escalation from prior period usage. " "

N/A

Q1 2025

No guidance provided in Q1 2025

–

No guidance available

Currency Business Dynamics

Consistently discussed in Q4 2024, Q3 2024, and Q2 2024 with strong international growth driven by record backlogs, contract wins, and robust order funnels. " " " " " " U.S. production challenges were a recurring negative theme with planned shutdowns and forecasted double-digit declines in volumes. " "

In Q1 2025, Crane NXT reported exceptional international growth (record backlog, 2.4 book‐to‐bill ratio) while acknowledging U.S. production issues due to equipment upgrades; however, production resumed in April. " " " "

Recurring theme with improved outlook: International segment remains strong across all periods, while U.S. challenges persist but show signs of recovery in Q1 2025.

Authentication and Security Expansion

Earlier periods (Q4 2024, Q3 2024, Q2 2024) focused on acquisitions (OpSec, Tru Tag, and the pending De La Rue) and integration initiatives that were expected to enhance market positioning and drive mid-single-digit revenue growth. " " " " " " "

Q1 2025 featured the formal emergence of Crane Authentication, combining OpSec and De La Rue Authentication to form a unified platform with accelerated synergy execution and a unified product offering. " " "

Positive consolidation trend: The integration efforts have advanced from early-stage integration in previous periods to a completed, unified platform in Q1 2025, signaling progress toward synergy realization.

Integration Synergies and Margin Pressures

Q4 2024 highlighted dilution risks (e.g. a 250 basis point hit from the OpSec acquisition) and margin pressures, while Q3 2024 and Q2 2024 detailed expected operational synergies (e.g. $8 million by 2026) offset by short-term margin compression due to unfavorable product mix and integration challenges. " " " " "

Q1 2025 emphasized integration synergies from the combination of De La Rue and OpSec, with focus on accelerating commercial and SG&A synergies using the Crane Business System; there was no detailed discussion of margin dilution in this period. " "

Continued focus on integration with a shift in sentiment: Prior periods stressed both synergies and dilution risks, whereas Q1 2025 shows a more positive outlook focused on synergy acceleration with less emphasis on margin pressures.

Gaming and CPI Segment Trends

In Q4 2024, the gaming segment experienced softness due to inventory reduction and customer drawdown while CPI had mixed signals; Q3 2024 noted slower gaming orders with inventory recovery beginning and stable CPI performance; Q2 2024 described gaming normalizing with modest new orders and modest CPI growth impacted by lower gaming sales. " " " " " "

Q1 2025 reported that gaming is performing as expected with low single-digit growth and that CPI core sales declined about 2%, driven by lower volumes in gaming and vending, while retail faced pressure but was partly offset by custom offerings. " "

Cautiously neutral sentiment: The recurring softness in gaming remains a concern with only modest recovery signals, and CPI continues to experience headwinds from lower gaming/vending volumes. The outlook remains cautious with expectation of improvement later in the year.

U.S. Government Sales and Regulatory Effects

Q4 2024 and Q3 2024 emphasized regulatory impacts—Federal Reserve print orders forecast an 18% decline and production stoppages due to equipment upgrades, resulting in expectations of around a 20% decline in U.S. currency sales; Q2 2024 mentioned the upgrade cycle but did not delve into regulatory impacts. " " " " "

In Q1 2025, discussions centered on the planned shutdown for equipment upgrades (which have since been completed) and its short‐term impact on volume and margins, with production resuming in April; the U.S. regulatory challenges continue but are now in a recovery phase. " " "

Gradual improvement amid ongoing regulatory pressures: While U.S. government sales were negatively affected by production stoppages in previous periods, Q1 2025 indicates some recovery as production resumes, though underlying regulatory challenges persist.

Capital Allocation and M&A Strategy

Q4 2024 highlighted a 6% dividend increase, secured financing for acquisitions, and emphasized disciplined capital allocation; Q3 2024 reiterated a disciplined approach with a steady deal pace (1-2 deals per year, 3 deals completed) and a focus on bolt-on acquisitions; Q2 2024 described a healthy M&A funnel and robust liquidity. " " " "

Q1 2025 maintained the narrative of disciplined capital allocation with a competitive dividend and a healthy, active M&A pipeline aimed at long‐term shareholder value creation, continuing the strategic focus seen in prior periods. "

Steady and consistent: The message regarding capital allocation and M&A remains consistent across periods, showing continued commitment to dividends and strategy-driven acquisitions with a healthy pipeline.

Execution Risks and Forecast Uncertainty

Earlier periods (Q4, Q3, and Q2 2024) did not provide explicit discussion on execution risks or forecast uncertainty related to integration success; Q2 2024 hinted at timing uncertainties with new sales cycles but did not frame it as a major risk factor. " " "

In Q1 2025, while not explicitly detailing “execution risks” or “forecast uncertainty,” management acknowledged the critical importance of successful integration (especially of De La Rue and OpSec) and expressed overall confidence in synergy realization. " "

Slightly more acknowledgment without alarm: Although the dependency on integration success remains a latent risk, Q1 2025 is presented with more positive language and confidence, indicating that while uncertainty exists, it is being proactively managed.