Crane's Q4 2024: Discrepancies in Gaming Recovery and Currency Performance Uncovered

These are the key contradictions discussed in Crane's latest 2024Q4 earnings call, specifically including: Gaming Segment Expectations and Currency Segment Performance:



Revenue Growth and Currency Business:
- Crane NXT reported a 12% increase in sales in the fourth quarter of 2024 and a 7% increase for the full year.
- Growth was driven by the international currency business, which continues to win new denominations using leading security technology.

Operational Efficiency and Cost Management:
- The company maintained an adjusted operating margin of approximately 27% in both Q4 and the full year.
- This was achieved through disciplined productivity initiatives and leveraging the Crane Business System to drive continuous improvement programs.

M&A and Portfolio Diversification:
- Crane NXT completed strategic acquisitions like OpSec and TruTag Smart Packaging in 2024 and plans to close the acquisition of De La Rue Authentication Solutions in Q2 2025.
- These acquisitions are intended to expand the company's customer base and product offerings, reducing exposure to cash-centric end markets and increasing recurring revenue.

Challenges in Gaming and Currency Upgrades:
- The CPI segment faced softness in gaming orders, with customers working through inventories, impacting sales growth.
- The U.S. currency business experienced shutdowns for upgrades to support new banknote designs, leading to a high double-digit decline in US currency sales in Q1 2025.