Crane NXT Q2 2026 Earnings: Acquisitions Drive 22% Sales Growth

Crane NXT (NYSE: CXT) reported Q2 2026 net sales of $493.2 million, up 22.0% from $404.4 million a year earlier, while GAAP diluted EPS increased to $0.61 from $0.43. For the quarter ended June 30, acquisitions contributed 18.4 percentage points of sales growth, compared with organic growth of 2.8%, while net income and operating cash flow both increased.

Core Earnings Data

Reported revenue growth was primarily acquisition-driven, with acquisitions adding $74.6 million, organic sales contributing $11.3 million, and foreign exchange adding $2.9 million. GAAP profitability improved faster than revenue, although adjusted EBITDA margin declined by 80 basis points.

Cash generation also increased. Operating cash flow reached $86.7 million, and free cash flow rose to $73.4 million after $13.3 million of capital expenditures.

Adjusted net income was $63.9 million. The reconciliation from GAAP net income included $24.2 million of acquired intangible asset amortization, $3.3 million of restructuring costs, $4.4 million of transaction expenses, $2.9 million of acquisition-related adjustments, and a $6.3 million tax adjustment.

Business and Segment Performance

The two segments produced sharply different underlying results. Security and Authentication Technologies, or SAT, generated organic growth and wider margins, while Detection and Traceability Technologies, or DTT, relied on acquisitions to offset an organic sales decline.

SAT benefited from continued demand in the Currency business and cost-saving actions in Crane Authentication. Its GAAP operating margin expanded by 790 basis points, while adjusted EBITDA margin increased by 30 basis points.

DTT’s 26.1% reported sales increase included a 30.1% contribution from acquisitions, which more than offset a 3.4% organic decline and a 0.6% foreign-exchange headwind. Lower volumes in CPI weighed on performance. DTT’s GAAP operating margin contracted by 670 basis points, and adjusted EBITDA margin fell by 170 basis points.

Total backlog was $755.5 million at June 30, up from $591.6 million a year earlier. DTT backlog included $124.7 million associated with Antares Vision, which Crane NXT acquired in March 2026.

Profitability, Cash Flow, and Balance Sheet

GAAP operating margin expanded even as adjusted EBITDA margin declined. The segment results identify DTT as the main source of adjusted margin pressure, while SAT’s operating improvement and lower restructuring and transaction expenses supported GAAP operating profit. Acquired intangible amortization, however, increased to $24.2 million from $15.2 million.

Adjusted free cash flow was $79.4 million, representing conversion of 124.3% of adjusted net income. Cash flow improved despite a $4.5 million use of operating working capital, compared with a $13.3 million working-capital contribution in the prior-year quarter.

Crane NXT ended the quarter with $231.4 million of cash and cash equivalents. Reported total debt was $1.484 billion, producing net debt of $1.253 billion and a net leverage ratio of 2.7 times trailing adjusted EBITDA. The debt calculation includes debt acquired with Antares Vision, while the trailing EBITDA measure includes Antares results for periods before the acquisition.

Inventories increased to $238.5 million from $169.5 million at December 31, 2025, and accounts receivable rose to $406.9 million from $351.8 million. Cash and cash equivalents were nearly unchanged from $233.8 million at year-end.

Full-Year 2026 Guidance

Crane NXT raised its full-year adjusted EPS range and broadened the SAT sales-growth outlook. The company otherwise maintained its overall sales growth and adjusted margin expectations. Management attributed the EPS increase to first-half performance and expected continued momentum.

The revised EPS range raises the lower end by $0.12 and the upper end by $0.02. The company continues to assume an adjusted tax rate of approximately 21.5% and about 58 million diluted shares.

Management Commentary

CEO Aaron W. Saak highlighted demand in the company’s core businesses, cost execution, and acquisition integration. He said Crane NXT had completed its first 90 days of integrating Antares Vision and was applying the Crane Business System with the aim of supporting growth and margin expansion.

Recent Insider Transactions

Reported activity for the preceding six months included purchases of 87,561 shares across 40 transactions and sales of 2,693 shares in one transaction, resulting in net purchases of 84,868 shares. The following purchases had clear dates, insiders, transaction directions, prices, and reported values; the transactions do not by themselves establish insiders’ views on the company’s prospects.

Risks Investors Should Watch

• Dependence on acquisitions for growth: Acquisitions contributed 18.4 percentage points of the company’s 22.0% sales increase, while organic growth was 2.8%. Integration execution will therefore be important to maintaining growth and expanding margins.
• DTT’s underlying contraction: DTT organic sales declined 3.4%, and lower CPI volumes contributed to weaker profitability. Continued volume pressure could offset the segment’s acquisition-driven revenue growth.
• Margin pressure: Companywide adjusted EBITDA margin declined by 80 basis points, while DTT’s adjusted EBITDA margin fell by 170 basis points. This creates a gap between reported revenue growth and underlying margin performance.
• Leverage following acquisition activity: Net debt stood at $1.253 billion and net leverage was 2.7 times. The pace of cash generation and successful Antares integration will affect the company’s ability to reduce leverage.
• Working-capital and cash-conversion normalization: Inventories and receivables were above year-end levels. In addition, full-year adjusted free cash flow conversion guidance remains at 90% to 110%, below Q2’s 124.3%, so the quarterly conversion rate should not be extrapolated directly.

Summary

Crane NXT’s Q2 2026 results combined acquisition-led revenue growth with higher GAAP earnings and improved cash generation. SAT produced organic growth and margin expansion, but DTT’s reported growth masked lower organic sales and contracting margins. The main items to monitor are Antares Vision integration, CPI volumes, DTT profitability, cash conversion, and progress against the raised adjusted EPS guidance.