Crane NXT, Co.

Good day, and thank you for standing by. Welcome to the Crane NXT second quarter 2025 earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, we'll open up for questions. To ask a question during a session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's call is being recorded. I would like to hand it over to your first speaker today, Matt Roche, Vice President of Investor Relations. Please go ahead.

Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead. Matt Roche, Vice President of Investor Relations. Please go ahead I encourage all participants to review the legal notice in 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 in our Form 10-K and subsequent filings pertaining to forward-looking statements. During the call, we'll 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 in the investor relations section. With me today are Aaron Sake, 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 second quarter highlights, our financial and operational performance, and our 2025 financial guidance. After our prepared remarks, we'll open up 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 today's call to review our second quarter results. I would like to start by recognizing our NXT team members around the world for their continued dedication and for delivering another quarter of strong execution. As shown in the highlights on slide three, our second quarter performance was in line with our expectations with sales growth of approximately 9% year over year and adjusted EPS of 97 cents. We achieved 120% free cash flow conversion in the quarter, reflecting continued operating discipline. In Q2, we continued to build momentum in our strategic growth areas. Our currency business delivered another standout quarter, again achieving a record high backlog. We also recently introduced new innovative products in our authentication and CPI businesses, which position us well for future growth. In authentication, We launched Fortress, an advanced proprietary security feature that can be applied to a product surface or label to authenticate the product in real time and to trace the origin of the product to the point of manufacturing. This product was introduced to a major customer and has a strong pipeline for additional applications. And at CPI, we launched several next generation products that will enhance our leadership position using advanced imaging and detection technology. This includes the new JetScan Ultra, a high-speed currency scanner that provides counterfeit detection for the banking, gaming, and retail markets. Since the close of the De La Rue authentication acquisition on May 1st, we have made significant progress integrating this business with OPSEC to form the new Crane authentication. I'll provide more detail about our actions in this area in a few moments. We continue to have a strong balance sheet with ample capacity for additional M&A. Given the strength and activity in our M&A pipeline, I am confident we will have another transaction to announce within the next year. Finally, we continue to navigate tariff and macro uncertainties and are mitigating these impacts through a variety of pricing and supply chain actions. Given these initiatives, we remain confident in our outlook and are reaffirming our full-year EPS guidance in the range of $4 to $4.30. Now, turning to slide four, I want to take a moment to review our strategy of building a leading industrial technology company focused on solutions that secure, detect, and authenticate. Ultimately, what we do here at Crane NXT is focused on providing confidence to our customers and their consumers that the products they buy and the way they buy them are authentic and secure. Over the past quarter, we've integrated De La Rue authentication and OPSEC to form Crane authentication. With this business, we have created a leading position in the authentication market. And a key to our success is utilizing the Crane Business System, or CBS, to drive operational improvements in both our existing businesses and those we acquire. And so with this in mind, I'd like to move to slide five to discuss the actions we've taken over the last 100 days since closing the De La Rue acquisition. As shown on the left side of this page, we now have a market-leading portfolio focused in three areas. First, brand authentication, where we sell advanced security technology for labels, track and trace software, and provide additional online services to the world's leading brands to protect them and their consumers from counterfeiting. Second, government solutions, where we work with governments to ensure collection of tax revenue and authentication of products. And finally, identification security, where we design and manufacture ID documents for governments, incorporating new security features to prevent counterfeiting. Over the past 100 days, we hit the ground running, deploying the crane business system to integrate the business and achieve our planned synergies. These actions include utilizing the 80-20 process to rationalize product offerings, consolidating our site footprint, leveraging scale to drive supply chain savings, integrating the organization to simplify and reduce the cost structure, and implementing improved pricing processes. I would like to thank the entire Crane authentication team for their hard work during the past quarter. Thanks to their efforts, we are now anticipating accelerated realization of operating synergies which will lead to operating profit margins of approximately 20% as we exit 2026 ahead of our original expectations. So with that, let me now hand the call over to Christina to review our second quarter performance in more detail.