Crane NXT Q2 Earnings Call Highlights

Strong second-quarter results: Crane NXT sales rose 22% year over year to $493 million, while adjusted EPS increased 13% to $1.10 and adjusted EBITDA margin expanded to approximately 23%. Full-year outlook raised: The company increased its 2026 adjusted EPS guidance to $4.22–$4.42 per share while maintaining 15%–17% sales growth and approximately 24% adjusted EBITDA margin expectations. Growth led by key segments: Security and Authentication Technologies benefited from international currency demand and a record $500 million backlog, while Antares Vision helped drive 26% growth in Detection and Traceability Technologies; Crane NXT also plans to use free cash flow to reduce leverage.

Crane NXT NYSE: CXT reported second-quarter 2026 sales of $493 million, up 22% from a year earlier, as organic growth in its Security and Authentication Technologies business and contributions from Antares Vision supported results. The company raised its full-year adjusted earnings-per-share outlook following what management described as a strong first half of the year. Adjusted EBITDA was $115 million in the quarter, representing an adjusted EBITDA margin of about 23% and 150 basis points of organic margin expansion, according to Chief Financial Officer Christina Cristiano. Adjusted EPS increased 13% year over year to $1.10, while adjusted free cash flow totaled $79 million, for a conversion ratio of approximately 124%.

“We are executing against our value creation priorities, delivering growth, building on our leadership positions, and driving operational excellence through organic margin expansion and strong free cash flow,” President and Chief Executive Officer Aaron Saak said. Guidance Raised on Sales Momentum and Lower Non-Operating Expense Crane NXT raised its 2026 adjusted EPS guidance to a range of $4.22 to $4.42 per share. The revised outlook reflects higher expected sales in the Security and Authentication Technologies, or SAT, segment as well as an improved forecast for non-operating expense. The company maintained its forecast for total sales growth of 15% to 17% for the year and continues to expect adjusted EBITDA margin of approximately 24%. It lowered its forecast for non-operating expense to approximately $80 million from $85 million, citing anticipated debt paydown and lower borrowing costs. For the third quarter, Crane NXT expects low-double-digit sales growth overall and an adjusted EBITDA margin in the mid-20% range. SAT sales are expected to be flat to slightly down from the prior year because of a strong 2025 comparison, while Detection and Traceability Technologies, or DTT, sales are projected to rise in the mid-20% range. Management said revenue in the second half will be more weighted toward the fourth quarter, in line with normal seasonality. Currency Demand Drives SAT Growth and Record Backlog Second-quarter SAT sales totaled $227 million, rising about 17% year over year. Organic sales increased approximately 10%, driven by sustained international currency demand. The segment also benefited from one month of contribution from the De La Rue Authentication acquisition, which closed in May 2025. Adjusted EBITDA in SAT was $59 million, with a 26% margin. Organic adjusted EBITDA margin expanded by about 200 basis points year over year, reflecting productivity actions in the currency business and planned authentication synergies. SAT backlog reached a record of approximately $500 million. Saak said the company is adding capacity through partnerships and through expansion of micro-optics facilities in the U.S. and Europe. He said the investments are intend...