Crane NXT, Co.

Good day, and thank you for standing by. Welcome to the Crane NXT Q1 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1-1 again. please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Matt Roach, Vice President of Investor Relations. Please go ahead.

Thank you, operator, and good morning, everyone. I want to welcome you all to the first quarter 2025 earnings call for Crane NXT. Before we begin, let me remind you that the slides we will reference during the presentation can be accessed via the investor relations section of our website, at craneNXT.com, and a replay of today's call will also be available on our website. Before we discuss our results, I encourage all participants to review the legal notice on slide two, which explains the risk of forward-looking statements and the use of non-GAAP financial measures. Additionally, we refer you to the cautionary language at the bottom of our earnings release and in our Form 10-K and subsequent filings pertaining to forward-looking statements. During the call, We will also be using non-GAAP financial measures, which are reconciled to the comparable GAAP measures in the tables at the end of our press release and accompanying slide presentation, both of which are available on our website at craneNXT.com in the investor relations section. With me today are Aaron Stake, our President and Chief Executive Officer, and Cristina Cristiano, our Senior Vice President and Chief Financial Officer. On our call this morning, we'll discuss our first quarter highlights, the completion of the De La Rue authentication solutions acquisition, our financial and operational performance, and our updated 2025 financial guidance. After our prepared remarks, we'll open the call to analysts for questions. With that, I'll turn the call over to Aaron.

Thank you, Matt, and good morning. I appreciate everyone joining the call today to discuss our first quarter results. I'd like to start by thanking my fellow Crane NXT team members around the world for maintaining focus, and being agile in the face of this dynamic trade environment. We continue to prioritize serving our customers, driving continuous improvement through the crane business system, and diversifying our portfolio through disciplined M&A, all while living our core values. And we demonstrated all of these elements in Q1, and I'm very proud of the team's performance. As you can see on slide three, our first quarter performance was in line with our expectations, with sales growth of 5% and adjusted EPFs of 54 cents. Excluding OPSEC, core sales declined 4% as expected, reflecting lower volumes in our U.S. currency business driven by the planned shutdown of key manufacturing equipment for upgrades to support the new U.S. banknote series. I'm happy to announce that the upgrades were successfully completed and full production has resumed. A great job by our team to accomplish this very significant milestone. In Q1, we continued to build momentum in our strategic growth areas, achieving record-high backlog and creating currency with a book-to-bill ratio of 2.4. This is exceptional performance by our currency team and reflects the differentiated value of our leading anti-counterfeiting technology. And at CPI, we continue to invest in and grow our services business, where in Q1, we won a new multi-year contract with a major retailer, provide on-site equipment repair services in approximately 450 of its US locations. Under this agreement, we'll provide service to all of the front-of-store retail checkout equipment, including self-checkout and attended checkout lanes. Our flexible service delivery model will further drive recurring revenue and positions us very well for future growth. We're also making meaningful progress in expanding our market-leading positions in anti-counterfeiting technologies for governments and brands. Last week, we announced we completed the acquisition of DelaRue authentication solutions, and I would again like to extend a very special welcome to our new team members from DelaRue. We're excited to have you join the Crane NXT family. The OPSEC integration is on track, and last week we announced that OPSEC and DelaRue authentication will be combined to form Crane authentication. The combination of the businesses will provide a unified set of products and services to our customers and help accelerate synergies. Finally, our teams are working diligently to mitigate the impact of tariffs through strategic pricing actions and supply chain initiatives. Given these actions, and with our current line of sight to demand, we are reaffirming our full year adjusted EPS guidance, and Christina will speak more about tariffs later in the call. Moving to slide four, I'd like to provide a brief overview of De La Rue authentication solutions. This acquisition complements the OPSEC business and further expands our security and authentication technology capabilities. De La Rue authentication goes to market with three strategic platforms as shown on this slide. Government revenue solutions provides digital and physical tax stamp technologies that link unique identifiers to products, enabling the full traceability of goods through the supply chain and allowing governments to collect tax revenues. Identification security solutions provide solutions to secure the government-issued identity documents of individuals, including polycarbonate passport pages with embedded security features. Finally, brand protection products provide serialized, highly secure physical labels combined with software to track and trace products through the supply chain and provide critical consumer insights to brand owners through data analytics. Like OPSEC, De La Rue Authentication Solutions has an attractive financial profile comprised of a stable and growing revenue base generating mid-single-digit revenue growth. We expect that De La Rue will contribute approximately $80 to $90 million in revenue in 2025 with an adjusted EBITDA margin of approximately 20%. As I mentioned, last week we announced the combination of OPSEC and De La Rue to form the new Crane Authentication business. As shown on slide five, Crane Authentication has a geographically diverse global footprint with majority of sales coming from longstanding customers. Crane Authentication also serves a diverse set of end markets, including governments, consumer products, sports and media, financial services and industrials, providing a highly resilient revenue stream to Crane NXT. And over the past few years, we've made significant progress executing on our strategy to diversify the company through disciplined M&A. With the acquisition of OPSEC, TrueTag Smart Packaging, and Daylaru Authentication, we now have a leading position with Crane Authentication in the security and authentication market focused on protecting products that matter most to our customers. With the continued strength in Crane Currency and the addition of the new Crane Authentication business, the SAT segment will have sales of approximately $735 million in 2025. Our M&A funnel remains robust, and I fully expect we will execute additional transactions within the next year that will continue to expand our market-leading positions and add further resiliency to our portfolio. So with that, let me now hand the call over to Christina to review our first quarter performance in more detail and our updated guidance. Christina?