Strong Top-Line Growth
Q4 sales of $477M, up ~20% year-over-year (driven by acquisitions and Crane Currency); full-year sales of approximately $1.7B, up ~11% year-over-year; Q4 core sales up ~5% and full-year core sales growth ~1%.
Robust Profitability and Cash Generation
Adjusted EBITDA margin of ~25% in Q4 and ~24% for the full year; delivered adjusted EPS of $1.27 in Q4 and $4.06 for the full year; adjusted free cash flow conversion ~135% in Q4 and ~94% for the full year.
Currency Business Outperformance and Wins
Crane Currency achieved 20 new micro-optics denomination wins in 2025 (exceeding target of 10–15), including five denominations for Fiji; organic backlog up (Aaron cited >30% YoY) and SAT backlog reported up >50% YoY, providing strong visibility for 2026.
Acquisitions and Strategic Investments
Closed De La Rue Authentication acquisition in May 2025 and completed an initial equity investment (~32%) in Antares Vision in Q4 2025 with regulatory approval to launch a mandatory tender—expected to consolidate >50% ownership in Q1 and take private mid-2026; these expand offerings in authentication, life sciences, and track-and-trace.
2026 Financial Guidance
Full-year sales growth guidance of 4%–6% for 2026; adjusted segment EBITDA margin expected ~28% (approximately flat YoY); adjusted EPS guidance $4.10–$4.40; adjusted free cash flow conversion targeted 90%–110%.
Balance Sheet and Capital Allocation
Ended year with net leverage ~2.3x; secured a ~$500M term loan and drew ~$130M for Antares investment; plan to use strong free cash flow to pay down debt and maintain ~2.3x net leverage by year-end 2026; declared a 6% increase to the annual dividend.
Operational Capacity and Growth Investments
Investing to expand international currency capacity: moving to 24/7 operations, adding micro-optics lines in Nashua and Malta, increasing design staff; expect currency CapEx to be ~7% of currency revenue in 2026 (company-wide CapEx 3%–5% of sales) and modest incremental OpEx (~$4M) and SAT costs (~$4M) to support growth.