Top-Line Growth
Q1 sales of $388 million, up approximately 17% year-over-year, with organic sales growth of approximately 6%.
Adjusted EBITDA Margin Expansion
Company adjusted EBITDA margin increased ~80 basis points to 19% in Q1 (a ~22% improvement versus prior year on a relative basis).
Adjusted EPS Performance
Delivered adjusted EPS of $0.60 in Q1, an increase of approximately 11% year-over-year and on track with full-year guidance.
Acquisition of Antares Vision Completed Ahead of Schedule
Antares Vision acquisition closed early (end of March), expanding TAM into ~$3 billion life sciences and food & beverage end markets and adding an expected ~$200–$210 million of revenue for nine months in 2026 (with Q4 as the largest quarter).
Strong Security & Authentication Technologies (SAT) Performance
SAT segment sales up ~51% year-over-year (including May 2025 De La Rue contribution); organic SAT sales grew ~22%; SAT adjusted EBITDA margin up ~600 basis points to 20% with expected year-end margin of ~25% and robust backlog/funnel for new micro-optic wins (targeting 10–15 new denominations for the year).
Backlog and Order Strength
Segment backlog totaled $221 million (including ~ $100 million from Antares Vision); CPI backlog ~ $120 million representing sequential growth of ~8% and a book-to-bill ratio of ~1.
Maintained Full-Year Guidance and Profitability Targets
Updated 2026 sales growth guidance of 15%–17% (including Antares); maintained full-year EPS guidance of $4.10–$4.40; full-year adjusted segment EBITDA margin expected at ~27% including Antares; plan for ~90%–110% full-year free cash flow conversion.
Balance Sheet and Leverage Plan
Ended Q1 with net leverage of ~2.9x (including Antares financing) and forecasted to reduce net leverage to ~2.3x by year-end 2026, preserving capacity to pursue M&A in 2027.