Crane NXT Narrows 2026 EPS Outlook as SAT Strength Offsets DTT Softness

Crane NXT, Co. (NYSE: CXT) narrowed its 2026 adjusted earnings guidance and raised the midpoint after third-quarter results showed continued strength in Security and Authentication Technologies, robust cash generation and lower expected borrowing costs. Those benefits were partly offset by softer markets and project timing in Detection and Traceability Technologies.

The company now expects full-year adjusted earnings per share of $4.32 to $4.42, compared with its previous range of $4.22 to $4.42. It maintained expectations for an adjusted EBITDA margin of about 24%, an adjusted segment EBITDA margin of roughly 27%, and adjusted free cash flow conversion of approximately 90% to 110%.

Third-quarter sales increased 12% year over year to $497 million from $445 million. Organic sales rose 1%, while foreign exchange reduced growth by 1 percentage point, indicating that acquisitions accounted for most of the reported increase.

Adjusted EBITDA rose 4% to $127 million from $122 million, but the adjusted EBITDA margin declined to 25.6% from 27.5%. Margin expansion in the Security and Authentication Technologies segment was outweighed by the expected dilution associated with Antares Vision in Detection and Traceability Technologies. Adjusted EPS was unchanged at $1.28 as operational performance was offset by higher below-the-line items.

Security and Authentication Technologies expands margin

Security and Authentication Technologies, or SAT, reported sales of $244 million, up 6% from $229 million. Organic growth was 7%, partially offset by a 1% currency headwind. Crane NXT attributed the performance to growth in Authentication and sustained international demand for Currency products.

Adjusted EBITDA for the segment increased 9% to $71 million from $65 million, while the margin expanded 60 basis points to 29.2%. The company said Authentication synergies, volume leverage and favorable business mix supported the improvement.

SAT backlog rose 8% to $482 million from $448 million and remained near record levels, with Currency orders extending into the second half of 2028. Crane NXT also said it secured multiple long-term commercial wins across its two segments, supporting future revenue visibility.

Antares Vision lifts DTT sales but dilutes margin

Detection and Traceability Technologies, or DTT, generated sales of $254 million, an increase of 17% from $216 million. Organic sales declined 5%, and currency reduced growth by another 1%. Growth in CPI Service partially offset weakness in Vending and Hardware, while Antares Vision was affected by project timing.

DTT adjusted EBITDA edged up 2% to $71 million from $70 million. Its adjusted EBITDA margin fell 430 basis points to 28.0%, reflecting lower organic volume and the expected margin dilution from Antares Vision, partly mitigated by productivity improvements.

Segment backlog more than doubled to $234 million from $109 million, with Antares Vision contributing about $125 million. The presentation indicated that CPI backlog remained stable.

Cash flow supports deleveraging and investment

Adjusted free cash flow increased 15% to $98 million from $85 million, representing conversion of approximately 132% for the quarter. Crane NXT said the cash generation supported both debt reduction and accelerated spending on high-return capital projects.

Net leverage declined to 2.5 times at the end of September from 2.7 times in June, after rising to 2.9 times in March following the Antares Vision acquisition. The company estimates that net leverage will reach about 2.3 times by year-end. It also said it has no fixed-rate debt maturities until 2036.

For 2026, Crane NXT expects total sales growth of approximately 14%. SAT sales are projected to increase about 11%, supported by roughly 5% organic growth, a 1% currency contribution and 4% to 5% growth from acquisitions. DTT sales are expected to grow in the high teens, with an acquisition contribution of about 22% offset in part by an approximately 5% organic decline.

The company expects net non-operating expense of $75 million to $80 million, compared with its prior estimate of about $80 million, citing lower borrowing costs. Corporate expense is projected at approximately $58 million.

Crane NXT cautioned that its outlook remains subject to risks including tariffs and other trade measures, global economic and geopolitical conditions, variable demand, acquisition integration, component and raw-material disruptions, technology and data-security failures, regulatory requirements, competition and the company’s ability to manage costs and manufacturing capacity. The presentation also noted that forward-looking non-GAAP measures may be affected by acquisition-related, restructuring and other special items whose size and timing are difficult to predict.