Second Quarter 2026
Filed Aug 5, 2026Crane NXT Reports Second Quarter 2026 Results Delivers Sales Growth of 22%; Raises Full Year Adjusted EPS Guidance
Second-quarter sales increased 22.0%, GAAP net income increased 42.2%, and Adjusted EPS increased 13% year-over-year. The company raised its full-year Adjusted EPS range, although organic sales growth was 2.8%, DTT organic sales declined 3.4%, and consolidated Adjusted EBITDA margin declined 80bps.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Sales Growth | +15% to +17% | 22.0 % | n/a |
| SAT Segment Sales Growth | ~HSD | 17.5 % | n/a |
| DTT Segment Sales Growth | Low 20's % | 26.1 % | n/a |
| Adjusted Segment EBITDA Margin | ~27% | SAT 25.9 %; DTT 26.4 % | n/a |
| Adjusted EBITDA Margin | ~24% | 23.4 % | n/a |
| Adjusted EPS | $4.10 to $4.40 | $1.10 | n/a |
| Corporate Expense | ~$58 | $(14.0) million | n/a |
| Non-Operating Expense, Net | ~$85 | Interest expense $(21.0) million; Miscellaneous expense, net $(0.1) million | n/a |
| Adjusted Tax Rate | ~21.5% | n/a | |
| Adjusted Free Cash Flow Conversion | ~90% to ~110% | 124% | n/a |
| Diluted Shares | ~58 million | 58.0 million | n/a |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales (GAAP), three months ended June 30, 2026GAAP | $493.2 million | – | 22.0 % |
| Organic sales, three months ended June 30, 2026other | $11.3 million | – | 2.8 % |
| Net income attributable to common shareholders (GAAP), three months ended June 30, 2026GAAP | $35.4 million | – | 42.2 % |
| Net income before allocation to noncontrolling interest (GAAP), three months ended June 30, 2026GAAP | $36.2 million | – | – |
| Net income margin (GAAP), three months ended June 30, 2026GAAP | 7.2 % | – | 100bps |
| Total operating profit (GAAP), three months ended June 30, 2026GAAP | $68.9 million | – | – |
| Income before income taxes (GAAP), three months ended June 30, 2026GAAP | $47.9 million | – | – |
| Provision for income taxes (GAAP), three months ended June 30, 2026GAAP | $11.7 million | – | – |
| Interest expense, three months ended June 30, 2026GAAP | $(21.0) million | – | – |
| Equity investment income, three months ended June 30, 2026GAAP | $0.1 million | – | – |
| Miscellaneous expense, net, three months ended June 30, 2026GAAP | $(0.1) million | – | – |
| Earnings per diluted share (GAAP), three months ended June 30, 2026GAAP | $0.61 | – | – |
| Adjusted EPS, three months ended June 30, 2026non-GAAP | $1.10 | – | 13% |
| Adjusted EBITDA, three months ended June 30, 2026non-GAAP | $115.5 million | – | 18.0 % |
| Adjusted EBITDA margin, three months ended June 30, 2026non-GAAP | 23.4 % | – | (80bps) |
| Cash from operations, three months ended June 30, 2026other | $86.7 million | – | – |
| Adjusted free cash flow conversion, three months ended June 30, 2026non-GAAP | 124% | – | – |
| Total net sales (GAAP), six months ended June 30, 2026GAAP | $880.9 million | – | – |
| Total operating profit (GAAP), six months ended June 30, 2026GAAP | $91.1 million | – | – |
| Interest expense, six months ended June 30, 2026GAAP | $(38.8) million | – | – |
| Equity investment income, six months ended June 30, 2026GAAP | $4.8 million | – | – |
| Miscellaneous expense, net, six months ended June 30, 2026GAAP | — | – | – |
| Income before income taxes (GAAP), six months ended June 30, 2026GAAP | $57.1 million | – | – |
| Provision for income taxes (GAAP), six months ended June 30, 2026GAAP | $14.1 million | – | – |
| Net income before allocation to noncontrolling interest (GAAP), six months ended June 30, 2026GAAP | $43.0 million | – | – |
| Net income attributable to common shareholders (GAAP), six months ended June 30, 2026GAAP | $41.8 million | – | – |
| Earnings per diluted share (GAAP), six months ended June 30, 2026GAAP | $0.72 | – | – |
| Average diluted shares outstanding, three months ended June 30, 2026GAAP | 58.0 million | – | – |
| Average basic shares outstanding, three months ended June 30, 2026GAAP | 57.5 million | – | – |
| Cash and cash equivalents, June 30, 2026GAAP | $231.4 million | – | – |
| Cash and cash equivalents, December 31, 2025GAAP | $233.8 million | – | – |
| Total assets, June 30, 2026GAAP | $3,595.1 million | – | – |
| Total assets, December 31, 2025GAAP | $3,116.4 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Security and Authentication Technologies (SAT)Continued strong demand in the Currency business, cost saving actions in Crane Authentication and the sales benefit from acquisitions. | $226.7 million | – | 17.5 % |
| Detection and Traceability Technologies (DTT)The sales benefit from acquisitions was partially offset by the impact of lower volumes in CPI. | $266.5 million | – | 26.1 % |
Full Year 2026 outlook
- RevenueSales Growth +15% to +17%
- Tax rateAdjusted Tax Rate ~21.5%
- NoteSAT Segment Sales Growth ~HSD to ~LDD
- NoteDTT Segment Sales Growth Low 20's %
- NoteAdjusted Segment EBITDA Margin ~27%
- NoteAdjusted EBITDA Margin ~24%
- NoteAdjusted EPS $4.22 to $4.42
- NoteCorporate Expense ~$58
- NoteNon-Operating Expense, Net ~$80
- NoteAdjusted Free Cash Flow Conversion ~90% to ~110%
- NoteDiluted Shares ~58 million
Capital returns
- Quarterly dividend of $0.18 per share for the third quarter of 2026.
- Dividend payable on September 9, 2026, to shareholders of record as of August 31, 2026.
What drove it
- Sales increased 22.0% year-over-year, while organic sales growth was 2.8%.
- Continued strong demand in the Currency business.
- Cost saving actions in Crane Authentication.
- Sales benefit from acquisitions.
- The company reported progress during its first 90 days integrating Antares Vision and is implementing the Crane Business System to drive growth and margin expansion.
Concerns
- DTT organic sales were $(7.2) million, or (3.4) %.
- Lower volumes in CPI partially offset strong Currency demand, Crane Authentication cost savings, and acquisition-related sales.
- Consolidated Adjusted EBITDA margin was 23.4 %, compared with 24.2 %, a decline of (80bps).
- DTT operating profit declined (10.2) % and DTT Adjusted EBITDA margin declined (170bps).
- Interest expense was $(21.0) million, compared with $(16.4) million.
What to watch
- Delivery of full-year Sales Growth guidance of +15% to +17%.
- SAT Segment Sales Growth guidance of ~HSD to ~LDD and DTT Segment Sales Growth guidance of Low 20's %.
- Adjusted EPS guidance of $4.22 to $4.42.
- Adjusted EBITDA Margin guidance of ~24% and Adjusted Segment EBITDA Margin guidance of ~27%.
- Whether CPI volumes improve and whether DTT organic sales recover.
- Progress in Antares Vision integration and implementation of the Crane Business System.
Balance sheet and cash flow
- Cash and cash equivalents were $231.4 million at June 30, 2026, compared with $233.8 million at December 31, 2025.
- Accounts receivable, net were $406.9 million at June 30, 2026, compared with $351.8 million at December 31, 2025.
- Inventories, net were $238.5 million at June 30, 2026, compared with $169.5 million at December 31, 2025.
- Property, plant and equipment, net were $318.4 million at June 30, 2026, compared with $303.8 million at December 31, 2025.
- Intangible assets, net were $745.7 million at June 30, 2026, compared with $557.2 million at December 31, 2025.
- Goodwill was $1,436.0 million at June 30, 2026, compared with $1,164.0 million at December 31, 2025.
- Cash from operations was $86.7 million and Adjusted free cash flow conversion was 124%.
Analysis
Crane NXT reported second-quarter GAAP sales of $493.2 million, up 22.0 % from $404.4 million. Organic sales growth was 2.8 %, indicating that acquisitions were a meaningful contributor to the reported sales increase. GAAP net income attributable to common shareholders rose to $35.4 million from $24.9 million, while GAAP diluted EPS was $0.61 versus $0.43. Adjusted EPS was $1.10, increasing 13% year-over-year.
Demand was strongest in Currency, according to management, and SAT delivered $226.7 million of sales, up 17.5 %, with organic sales of $18.5 million, or 9.6 %. SAT GAAP operating profit rose to $38.9 million from $18.0 million, and its operating profit margin increased to 17.2 % from 9.3 %. SAT Adjusted EBITDA margin was 25.9 %, compared with 25.6 %.
DTT reported $266.5 million in sales, up 26.1 %, but organic sales were $(7.2) million, or (3.4) %. Management identified lower CPI volumes as a partial offset to Currency demand, Crane Authentication savings, and acquisition-related sales benefits. DTT GAAP operating profit declined to $44.0 million from $49.0 million, while its GAAP operating profit margin declined to 16.5 % from 23.2 %. DTT Adjusted EBITDA margin decreased to 26.4 % from 28.1 %, and consolidated Adjusted EBITDA margin decreased to 23.4 % from 24.2 %.
Cash generation was a positive feature of the quarter, with cash from operations of $86.7 million and Adjusted free cash flow conversion of 124%. The company declared a third-quarter dividend of $0.18 per share. Cash and cash equivalents were $231.4 million at June 30, 2026, while total assets were $3,595.1 million. The filing excerpt does not include the liability section of the balance sheet.
For full year 2026, Crane NXT maintained Sales Growth guidance of +15% to +17%, retained its Low 20's % DTT Segment Sales Growth outlook and ~24% Adjusted EBITDA Margin outlook, and raised Adjusted EPS guidance to $4.22 to $4.42 from $4.10 to $4.40. The key execution issue is whether the company can sustain Currency demand, capture integration and operating-system benefits, and address lower CPI volumes while protecting DTT and consolidated margins.
Management, verbatim
We had strong operational performance in Q2, delivering on our value creation priorities of accelerating growth, building on our leadership positions, and driving operational excellence. With our strong first-half performance, and expected continued momentum, we are raising our full-year Adjusted EPS guidance to a range of $4.22 to $4.42.
Aaron W. Saak, President and Chief Executive Officer
I’m pleased with the progress we’ve made during our first 90 days with the integration of Antares Vision. We are quickly implementing the Crane Business System to drive growth and margin expansion. As our performance shows, we are executing on our strategic priorities and are well positioned to deliver meaningful long-term value creation for our shareholders.
Aaron W. Saak, President and Chief Executive Officer
Not in the filing
stated, not guessed- The filing excerpt does not provide a gross profit or gross margin line item.
- The filing excerpt does not provide GAAP free cash flow or a free cash flow amount.
- The filing excerpt does not provide debt, total liabilities, equity, or other balance-sheet liability figures because the balance-sheet text is truncated after the heading 'Liabilities and equity Current'.
- The filing excerpt does not provide share repurchases or repurchase authorization activity.
- The filing excerpt does not provide the prior-year Adjusted EPS amount, only the 13% year-over-year increase.
- The filing excerpt does not provide a quarterly prior-period comparison for reported metrics.
- The filing excerpt does not provide an actual adjusted tax rate for the second quarter.
- The filing excerpt does not provide a Q2 figure directly comparable with full-year Corporate Expense or Non-Operating Expense, Net guidance.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.