Crane NXT Q2 2026 Earnings Report

Crane NXT EPS Results

• Actual EPS: $1.10
• Consensus EPS: $1.04
• Beat/Miss: Beat by +$0.06
• One Year Ago EPS: $0.97

Crane NXT Revenue Results

• Actual Revenue: $493.20 million
• Expected Revenue: $475.62 million
• Beat/Miss: Beat by +$17.58 million
• YoY Revenue Growth: +22.10%

Crane NXT Announcement Details

• Quarter: Q2 2026
• Date: 8/5/2026
• Time: After Market Closes
• Conference Call Date: Thursday, August 6, 2026
• Conference Call Time: 10:00AM ET

Crane NXT (NYSE:CXT), Co. operates as an industrial technology company that provides technology solutions to secure, detect, and authenticate customers' important assets. The company operates through Crane Payment Innovations and Crane Currency segments. The Crane Payment Innovations segment offers electronic equipment and associated software, as well as advanced automation solutions, processing systems, field service solutions, remote diagnostics, and productivity software solutions. The Crane Currency segment provides advanced security solutions based on proprietary technology for securing physical products, including banknotes, consumer goods, and industrial products. Crane NXT, Co. was incorporated in 2021 and is based in Waltham, Massachusetts.

Crane NXT Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Second-quarter results exceeded expectations, with sales up 22% to $493 million, adjusted EPS up 13% to $1.10, 150 basis points of organic EBITDA margin expansion, and free-cash-flow conversion of 124%.
• Positive Sentiment: Crane NXT raised its 2026 adjusted EPS guidance to $4.22-$4.42, citing strong first-half performance, higher Security and Authentication Technologies sales expectations, and lower anticipated non-operating expenses.
• Positive Sentiment: Security and Authentication Technologies delivered 10% organic sales growth and reached a record $500 million backlog; international currency demand remains strong, while the company renewed its U.S. passport-paper contract for another 10 years.
• Neutral Sentiment: Antares Vision integration is progressing ahead of management’s expectations, with $125 million of backlog and planned margin expansion, while CPI hardware demand remains soft; CPI backlog improved sequentially and management expects low-single-digit growth by the fourth quarter.

Presentation

[Operator]

Day, thank you for standing by. Welcome to the Crane NXT Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to your speaker today, Matt Roache, Vice President, Investor Relations. Please go ahead.

[Matt Roache, VP of Investor Relations at Crane NXT]

Thank you, operator, good morning, everyone. Welcome to Crane NXT's Second Quarter 2026 Earnings Conference Call. Before we begin, I'd like to remind you that the presentation slides we will reference today are available in the Investor Relations section of our website at cranenxt.com. A replay of today's call will also be available on our website following the conclusion of our remarks. Before we discuss our results, I encourage all participants to review the legal notice on slide two regarding forward-looking statements, which are subject to risks, uncertainties, and other important factors that may cause actual results to differ materially. Additionally, please see the note on slide two on the use of non-GAAP financial measures. We also refer you to the cautionary language included in our earnings release for Form 10-K in subsequent SEC filings. During today's call, we'll discuss certain non-GAAP financial measures.

[Matt Roache, VP of Investor Relations at Crane NXT]

Reconciliations of these measures to the most directly comparable GAAP measures can be found in the table accompanying our earnings release and slide presentation, both of which are available in the Investor Relations section of our website. Joining me today are Aaron Saak, our President and Chief Executive Officer, and Christina Cristiano, our Senior Vice President and Chief Financial Officer. During the call, we will review our Second Quarter highlights, discuss our financial and operational performance, and provide an update on our 2026 financial guidance. After our prepared remarks, we'll open the call for questions. With that, I'll turn the call over to Aaron.

[Aaron Saak, President and CEO at Crane NXT]

Thank you, Matt, good morning to everyone joining us today to discuss our Second Quarter results. I'd like to begin by thanking our Crane NXT team members around the world for their strong operating performance throughout the quarter. The key message I want to reinforce today is that 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. You can see that progress reflected in our Second Quarter results on slide three. Organic sales grew by approximately 3% and total sales increased approximately 22% year-over-year, reflecting both continued strong performance in our SAT segment and the contribution from Antares Vision in our DTT segment. I'm very pleased with the progress we've made in Q2 with the integration of Antares.

[Aaron Saak, President and CEO at Crane NXT]

We're quickly implementing the Crane Business System, including training and holding Kaizen events to improve productivity and drive growth. We're off to a strong start in our first 100 days and remain confident in our ability to achieve our full year estimates. Importantly, given the strong first half performance and confidence in our continued momentum, we're increasing our full year adjusted EPS guidance to a range of $4.22-$4.42. With that, let me now hand the call over to Christina to review our second quarter performance in more detail and our updated guidance. Christina?

[Christina Cristiano, SVP and CFO at Crane NXT]

Thank you, Aaron, and good morning, everyone. I'd also like to express my appreciation to our associates around the world for their hard work in the second quarter. Turning to slide four, sales were $493 million, an increase of 22% year-over-year. Organic sales grew 3%, driven by continued strong performance in SAT. Adjusted EBITDA was $115 million, with adjusted EBITDA margin of approximately 23%, representing 150 basis points of organic margin expansion. For the full year, we continue to expect adjusted EBITDA margin of approximately 24%. We delivered adjusted EPS of $1.10, an increase of 13% year-over-year and ahead of our prior expectations. Finally, adjusted free cash flow was $79 million, resulting in a conversion ratio of approximately 124%. We continue to expect full year free cash flow conversion of 90%-110%, supported by our robust backlog and operating discipline.

[Christina Cristiano, SVP and CFO at Crane NXT]

Moving to our segments and starting with Security and Authentication Technologies on slide five. Second quarter sales were $227 million, an increase of approximately 17% year-over-year, including one month of inorganic contribution from the De La Rue Authentication acquisition, which closed in May 2025. Organic sales increased approximately 10%, driven by sustained demand in international currency. In the second quarter, we celebrated the 225th anniversary of Crane Currency, which was founded in 1801 and has been the sole source provider of secure currency paper to the U.S. federal government since 1879. We marked the occasion at a celebration in Dalton, Massachusetts, with the Director of the Bureau of Engraving and Printing, whose remarks highlighted our partnership on the development of the new U.S. currency utilizing the next generation of micro-optics security technology.

[Christina Cristiano, SVP and CFO at Crane NXT]

This event also highlighted our more than 75-year relationship with the U.S. Government Publishing Office, with whom we partnered to make the U.S. passport paper. In Q2, we renewed our contract, extending our relationship for the U.S. passport for another 10 years. We are incredibly proud to serve as the trusted partner to the U.S. government on these important programs. Returning to our results, adjusted EBITDA was $59 million in the second quarter, with adjusted EBITDA margin of 26%, an increase of 30 basis points over the prior year. On an organic basis, adjusted EBITDA margin increased approximately 200 basis points year-over-year, reflecting the positive impact of productivity programs in the currency business and the execution of synergies in authentication as planned. Finally, SAT backlog of approximately $500 million reflects a new record high.

[Christina Cristiano, SVP and CFO at Crane NXT]

This backlog provides meaningful visibility into customer demand and supports our confidence in the updated SAT sales outlook. We have a healthy pipeline of opportunities and are investing in future growth. Turning to Detection and Traceability Technologies on slide six. Second quarter sales were $267 million, an increase of 26% year-over-year, reflecting a full quarter contribution from Antares Vision. Despite softer hardware demand in CPI, DTT expanded organic EBITDA margin by approximately 240 basis points through pricing discipline and productivity actions. We expect to see further margin accretion in DTT as the year progresses and are on track to end the year with adjusted EBITDA margin of approximately 27%. Segment backlog was $257 million, including $125 million of Antares Vision backlog, which we expect to deliver over the next 12 months.

[Christina Cristiano, SVP and CFO at Crane NXT]

As we integrate Antares, we are focused on converting this backlog, deploying CBS, and realizing the margin expansion opportunities that supported the strategic rationale for the transaction. CPI backlog of approximately $132 million reflects sequential growth of approximately 10%, driven by order timing with a book-to-bill ratio of approximately 1.1 times. Turning to our balance sheet on slide seven, we ended the second quarter with net leverage of approximately 2.7 times. Looking ahead, we anticipate deploying free cash flow toward debt reduction and expect to end 2026 with net leverage of approximately 2.3 times. As we further strengthen our balance sheet, we will continue to evaluate capital allocation through a disciplined framework focused on the highest return uses of cash and long-term shareholder value creation. Moving now to slide eight. We are updating our 2026 guidance to reflect increased SAT sales and an improvement in non-operating expense.

[Christina Cristiano, SVP and CFO at Crane NXT]

For the full year, we continue to expect total sales growth of 15%-17%. In SAT, we now expect high single digit to low double-digit sales growth based on the strength of international currency backlog and continued strong demand. In DTT, we continue to expect sales growth in the low 20s% range, with Antares Vision contributing approximately $200 million-$210 million, and with the fourth quarter representing the largest contribution of the year, in line with their historic seasonality. In CPI, we expect sales to be slightly down for the full year, reflecting mid-single-digit growth in services, low single-digit growth in vending, and a mid-single-digit decline in hardware. We are also updating our forecast for non-operating expense to approximately $80 million from $85 million, reflecting the favorable impact of expected debt paydown and lower borrowing costs.

[Christina Cristiano, SVP and CFO at Crane NXT]

As a result of these updates, we are raising our full-year EPS guidance range to $4.22-$4.42 per share. Looking ahead to the third quarter, we expect low double-digit sales growth. In SAT, we expect sales to be flat to slightly down year-over-year, given the very strong comparison to Q3 2025. In DTT, we expect sales growth in the mid 20s% range, with Antares Vision contributing approximately $55 million-$60 million of sales, while CPI sales are expected to decline in the low single-digits year-over-year. Now I'll turn it back to Aaron to provide closing remarks.

[Aaron Saak, President and CEO at Crane NXT]

Thank you, Christina. To wrap up, we delivered a solid second quarter and continue to execute against our key value creation priorities of accelerating organic growth, building on our leadership positions, and driving operational excellence. Based on our continued momentum, I'm pleased that we're in a position to raise our full year adjusted EPS guidance. We're confident in our ability to deliver against the commitments we've laid out, strengthening the portfolio and converting our competitive advantages into sustainable growth, margin expansion, and strong free cash flow. Thank you again for your time this morning, and I'd also like to again thank our Crane NXT team members around the world for their commitment to our customers, our communities, and all of our stakeholders. With that operator, we'll take our first question.

[Operator]

Thank you. At this time, we will conduct a question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please note that speakers will accept one question and one follow-up question on today's call. Please stand by while we compile the Q&A roster. Our first question comes from the line of Matt Summerville of D.A. Davidson. Your line is now open.

[Matt Summerville, Analyst at D.A. Davidson]

Thanks. Morning.

[Aaron Saak, President and CEO at Crane NXT]

Hey, good morning.

[Matt Summerville, Analyst at D.A. Davidson]

A couple quick questions. How much capacity is being added either organically through your own footprint or through partners for security, substrate, and printing as it pertains to the currency business? Can you give a little bit more granularity as to what we should read through the fact that you're now booking out into 2028? I have a follow-up.

[Aaron Saak, President and CEO at Crane NXT]

Yeah. Hey, thanks for that, Matt. We just feel incredibly bullish about this currency business, both domestically and internationally. You see that in the backlog, again, reaching another all-time high this quarter. We're adding capacity very quickly, both as you alluded to, and we've mentioned in the past, through some partnerships here this year, and that's going very well. As well as the build-out, particularly of our micro-optics facilities, both here in the U.S. and in Europe. That's already going on and is going to continue for the next several years as we see the volume both coming into our backlog and what we see getting tendered that we feel we have a very high probability of winning. That being said, we're in a place to sustain high, mid-single-digit growth in the international currency business for the next few years.

[Aaron Saak, President and CEO at Crane NXT]

That'll ultimately lead to doubling, over the next several years, the size, particularly of our micro-optics capabilities. I think that puts us in a very good position, both for obviously the rest of 2026, but into 2027, 2028, and beyond. That's what we're investing for.

[Matt Summerville, Analyst at D.A. Davidson]

Thank you. Maybe just as a follow-up, can you give a little bit more granularity and detail around how we should expect third and fourth quarter revenue and earnings cadence to look across the two reportable business segments? Obviously, there's a little bit of volatility in demand impacting CPI.

[Christina Cristiano, SVP and CFO at Crane NXT]

Yeah. I'll start there, Matt. I think it's just worth noting that we had a strong first half of the year, and that gives us the confidence to raise our full-year guidance. In the third quarter, we'll see a low double-digit sales growth overall, with a mid-20% EBITDA margin. Now, in SAT, we'll see a low single-digit decline, and that's largely driven by the comparative to 2025 in currency. As you know, we had a very strong end of the year last year. Authentication will perform as expected in Q3, which is a mid-single-digit revenue grower. In DTT, we'll see a mid-20s% growth. Antares will contribute $55 million-$60 million of sales. In CPI, we'll be down in the low single digits, which is continued softness in our hardware end markets.

[Christina Cristiano, SVP and CFO at Crane NXT]

I do just want to point out the phasing of the revenue in the back half of the year will be a little more skewed toward Q4, which is aligned with our normal seasonality. Overall, if you look ahead to the full year, we're expecting a mid-teen sales growth with an adjusted EBITDA margin of about 24%, and that's 100 basis points of organic margin expansion year-over-year.

[Matt Summerville, Analyst at D.A. Davidson]

Understood. Thank you.

[Operator]

Thank you. One moment for our next question. Thank you. Our next question comes from the line of Michael Halloran of Baird. Your line is now open.

[Analyst at Baird]

Hey, guys. Good morning. This is Trent on for Mike.

[Aaron Saak, President and CEO at Crane NXT]

Morning, Trent.

[Analyst at Baird]

Hey. Quick question on the first one here. Just good to see Antares moving higher, right out of the gates. Just any color on the confidence there and what you saw to raise expectations into this year?

[Aaron Saak, President and CEO at Crane NXT]

Yeah. Hey, thanks for that, Trent. Bottom line is my confidence is very high in how we're executing Antares. It is 150 days in now, post the close of the acquisition. As I mentioned in the prepared remarks, we've really had a lot of good early success in implementing and driving CBS to get after our synergies. That's going very well. As you know, it opens up for us here at Crane NXT, these new exciting markets in pharmaceutical track and trace technology and food and beverage inspection and detection. More confident than ever that's going to play out for us very well over the long term. Couldn't be more pleased with how the team is integrating into the company, how we're executing, and again, gives us really high confidence as we look at the second half of the year.

[Analyst at Baird]

That's great. As a follow-up, kind of on the flip side of DTT here, it's not terribly surprising to see some pressure as it relates to the core CPI hardware and vending business. Just any thoughts as a state of the union, where we are by end market, and what gives you kind of confidence in the outlook there based on the backlog or anything else you're seeing? I know book-to-bill was kind of flattening out, and you're starting to see sequential backlog growth. Just any help there would be helpful.

[Aaron Saak, President and CEO at Crane NXT]

Yeah. Thanks for that, Trent. You're right. A little bit softer in the top line of CPI in Q2, driven by vending and hardware, and really in hardware that was in retail, where we've just seen a little slowness in some of our larger projects. I think the key point here, and you mentioned a few of these that I want to reiterate are, one, sequential build in the backlog book-to-bill well above one. Excellent execution by our team to drive organic margin expansion. Over 200 basis points of margin expansion in the quarter. I think that's really best-in-class execution when you look at where we're at on the top line, and over 100% free cash flow conversion.

[Aaron Saak, President and CEO at Crane NXT]

CPI for us in this portfolio is driving this great free cash flow and high margins, and we are continuing to invest in areas we see growth, like services, which continues to grow in mid-single digits. When you put that together, we've adjusted the forecast, you saw that, for the rest of the year and have high confidence in the outlook, and again, why we're overall raising guidance for the full year.

[Analyst at Baird]

Great. Thanks, guys. I'll pass it on.

[Aaron Saak, President and CEO at Crane NXT]

Thanks, Trent.

[Operator]

Thank you. One moment for our next question. Thank you. Our next question comes from the line of Bob Labick of CJS Securities. Your line is now open.

[Bob Labick, Analyst at CJS Securities]

Great. Good morning. Thanks for taking our questions, and congratulations on strong execution.

[Aaron Saak, President and CEO at Crane NXT]

Good morning, Bob. Thanks for that.

[Bob Labick, Analyst at CJS Securities]

The portfolio's really taking shape here, and one of the benefits of Crane NXT is the Crane Business System, CBS, and you've alluded to it, but can you maybe elaborate a little bit more on some of the CBS actions taken in OpSec and De La Rue to date and some of your intentions for Antares?

[Aaron Saak, President and CEO at Crane NXT]

Absolutely, Bob, I appreciate you mentioning that because sometimes it can get lost. What really matters with CBS, not as just saying that we have tools and resources, but it's got to drive outcomes, and that's got to drive quality, delivery, cost, and productivity in the P&L. That's what you're seeing in the authentication business, where we had organic margin expansion in authentication over 300 basis points in the quarter. That's CBS in action. It's coming from how we're doing 80/20 on the product lines to reduce those at lower margins and move up to higher gross margins. We're seeing that come through. We're also seeing it in consolidation of the footprint of the business. That's very tangible when you go to the business.

[Aaron Saak, President and CEO at Crane NXT]

In fact, Christina and I were just there earlier this week to our facility in the U.S. I would say it's a transformation that's occurred in how we're running the business day to day. As you walk through those factories, the optimization that's occurred on the factory floor, you see it in our CBS daily management boards and the Kaizen schedule that's being run. Case in point, in our facility here in the U.S., we're going to run about one Kaizen a month for the next several months all around driving productivity. That's what's driving the hundreds of basis points margin improvement in authentication. The exact same thing is happening in Antares Vision.

[Aaron Saak, President and CEO at Crane NXT]

I was there two weeks ago, again with Christina. We toured the floor, and you already see the transformation occurring in the operation. That's what gives us high confidence in the margin expansion we're going to see through the balance of 2026 and onwards, through the implementation of Kaizens in that business. Feel very good about it. It's tangible, it's real, it's not hypothetical, and you see it in our outcomes.

[Bob Labick, Analyst at CJS Securities]

Okay. Yeah, that's wonderful. I think in the past you've given us a sense of the authentication assets margins. It sounds like you may be even a little ahead of schedule, but could you remind us where they started the year, where you expect them to finish in authentication and how that sounds like it should be a tailwind to next year's margins as well, if that's the case.

[Christina Cristiano, SVP and CFO at Crane NXT]

Yeah, I'll take that one to start here, Bob, and just want to repeat what Aaron said, which is that we're on track, and we're executing as planned. The 80/20 initiatives that we're doing in the first half will drive margin expansion to the end of the year. We expect to end the year as a mid-teens EBITDA margin for authentication, and we'll have a MSD revenue growth in the back half of the year to support that. I think for the full year in SAT, what's important here is you'll see at the segment level, 100 basis points of margin expansion, which is driven by the synergies that we're realizing in authentication.

[Bob Labick, Analyst at CJS Securities]

Great. Thank you.

[Operator]

Thank you. One moment for our next question. Thank you. Our next question comes from the line of Bobby Brooks of Northland Capital Markets. Your line is now open.

[Bobby Brooks, Analyst at Northland Capital Markets]

Hey, good morning, team. Thank you for taking my question.

[Aaron Saak, President and CEO at Crane NXT]

Good morning.

[Christina Cristiano, SVP and CFO at Crane NXT]

Good morning.

[Bobby Brooks, Analyst at Northland Capital Markets]

With DTT, just wanted to unpack that a little bit. The hardware and vending kind of continues to be a bit of a drag. Just wanted to kind of get your sense of comfort or the level of visibility you have to that inflecting back to positive growth. Is it something with the year-over-year comps? Just trying to get a better sense of that.

[Aaron Saak, President and CEO at Crane NXT]

I appreciate the question. I think as you look at the back half of the year, and as Christina mentioned, in Q3 for CPI inside of the DTT segment, you'll see kind of a low single-digit decline in Q3, and then building and accelerating to a low single-digit growth in the Q4 period. Feel very good about that. That's why we made the adjustment. We see it in the fact we're seeing sequential backlog growth. Book-to-bills are above one. We have the line of sight to some of the projects that typically take a quarter or two to deliver. Again, feel very confident there, and the team's executing really in a brilliant way with driving the margin expansion, which gives us high confidence in great flow-through into the EBITDA line and very strong free cash flow, which is the hallmark of this business.

[Aaron Saak, President and CEO at Crane NXT]

I think we feel very good about where we're going to go in the second half.

[Bobby Brooks, Analyst at Northland Capital Markets]

Got it. Is it fair to think that that backlog gives you pretty good visibility over the next three quarters, or is it just really over the next two? Just stop there.

[Aaron Saak, President and CEO at Crane NXT]

It's short, Bobby. CPI is a little bit more of a book and bill business. Backlog's in a normal level. Has been for the last few quarters. I think a key point is it's sequentially higher, it's building, coming out of Q2, and that feels good.

[Bobby Brooks, Analyst at Northland Capital Markets]

Got it. Just on Antares Vision, seems like things really going well there. Could you maybe just touch on any early signs of benefits that might have not initially been expected, whether that's like cross-selling opportunities haven't occurred yet.

[Aaron Saak, President and CEO at Crane NXT]

Yeah.

[Bobby Brooks, Analyst at Northland Capital Markets]

Just whether it's synergies on the cost side or maybe some cross-selling opportunities that you didn't necessarily maybe appreciate enough, but now having it under your belt for 150 days, those have popped up. Just wanted to hear more there.

[Aaron Saak, President and CEO at Crane NXT]

Yeah. Thanks for that, Bobby. Let me start first kind of with what's easier in our control. It goes back to Bob Labick's question around CBS. I think culturally, the work that's been done here to execute CBS and get at the operational synergies has gone as well as we could have ever expected, and in parts, the best I've seen. That's really a testament to the culture of the team at Antares Vision of really embracing with open arms the culture of continuous improvement with CBS and seeing the opportunity we saw and why we got so excited about the acquisition over the last two years. That's gone very well. We've inserted talent from Crane NXT into the business to get at those synergies and get at them early. Again, going well.

[Aaron Saak, President and CEO at Crane NXT]

The second part of your question is a really good one because we are seeing opportunities both between our Authentication business of using and importing technology from Authentication in particular to the pharmaceutical end markets, that we knew was possible. We're really working very diligently on that between both businesses. As well as using some of the contacts we have in our Currency business in emerging markets to foster access into governments as they look at better ways to do the track and tracing of their pharmaceuticals in the markets where we also supply those governments currency. Those take longer to play out, but directionally they're correct. That sales motion and product development motion is occurring. Those are dividends that are going to play out in 2027 and beyond.

[Bobby Brooks, Analyst at Northland Capital Markets]

Really appreciate the color. Congrats on a strong quarter.

[Aaron Saak, President and CEO at Crane NXT]

Thanks, Bobby.

[Operator]

Thank you. One moment for our next question. Thank you. Our next question comes from the line of Ian Zaffino of Oppenheimer. Your line is now open.

[Ian Zaffino, Analyst at Oppenheimer]

Hi, thank you. Question would be again on DTT. How are we thinking about the rest of the business? I know you kind of called out vending, but maybe give us a sense as far as the other parts of the legacy CPI business I'm talking about specifically.

[Aaron Saak, President and CEO at Crane NXT]

Yeah.

[Ian Zaffino, Analyst at Oppenheimer]

How we expect margins to kind of move, right? Because different margin profiles of each component of legacy CPI. Thank you.

[Aaron Saak, President and CEO at Crane NXT]

Sure thing, Ian. Thanks for the question. The way we run CPI and talk about it are in three components. There's our vending business, which is, call it a flat to low single-digit grower for the year. No real change in the outlook that we see long term for that or over the course of the next two quarters in vending. It's a little bit below the fleet average in terms of EBITDA margins. You have our hardware business, which is providing components into gaming, financial services, and retail. That's where, again, the slowness came this quarter, really in the retail segment from some of the custom projects, just taking a little bit longer. We have visibility into that backlog. That's where we're seeing the sequential backlog growth.

[Aaron Saak, President and CEO at Crane NXT]

Brings with it a very high margin, particularly on gaming, where we're by far the number one player in the world in a very small market of competitors. A fantastic franchise of high margin, high free cash flow from that business. Finally, services. Services growing in mid-single-digits. It's where we've made investments to expand outside of our servicing of our own components into third-party components. That's going as expected. We're doing upgrades in our software and ways we're driving efficiency in that market, and we'll see margin expansion. When you put that all together, to your last point, we expect again to see continued margin expansion in CPI, and ultimately in DTT this year, both organically from the CPI business and through some of the work that I alluded to in the other questions inside of Antares.

[Aaron Saak, President and CEO at Crane NXT]

Hence you saw this quarter really strong over 200 basis points of margin expansion in the quarter. We're going to continue to see healthy margin expansion as we exit this year in DTT.

[Ian Zaffino, Analyst at Oppenheimer]

Okay, thanks. Then, just kind of staying on legacy CPI, how are you thinking about just that business and how it fits in your portfolio going forward? I just look at some of the recent acquisitions you've done have been in a different kind of direction, that they're performing well, but yet you still have kind of some of this legacy stuff. How are you thinking about it as far as where do you want to be in this business, going forward? How do you think the portfolio is going to look? Any other color you could give us there. Thanks.

[Aaron Saak, President and CEO at Crane NXT]

Yeah. Well, I appreciate that question, Ian. I'm going to go back to what we've been talking about now for the better part of a few years, we really honed in on that at our investor day in February, of we are building the market leader in authentication and traceability technologies in TAMs that are big and growing with market tailwinds, we are positioned as the number one or number two provider of that technology into the end markets we're playing in. That's fundamentally the strategy, we're building on those leadership positions we already had in the legacy businesses with now Crane Authentication and Antares Vision, double the TAM of the company. As you go on that journey, as you would expect, we're always assessing what's in our portfolio and how to best optimize that to drive shareholder value creation.

[Aaron Saak, President and CEO at Crane NXT]

You can be assured that's something very topical and something we're always thinking about. Our focus today, and for the next few, certainly quarters, is making sure that we're executing well, that we're always assessing that portfolio to maximize value, and that we're cultivating, and continuing to cultivate, a very healthy list of M&A targets, which we have in place. Again, looking maybe more into 2027, most likely for a next type of transaction for us to extend on some of our verticals. It's a very active conversation and one where we're focused again on execution here.

[Ian Zaffino, Analyst at Oppenheimer]

All right. Thank you very much.

[Aaron Saak, President and CEO at Crane NXT]

Thanks, Ian.

[Operator]

Thank you. One moment for our final question. Our final question comes from the line of Zach Walljasper of UBS. Your line is now open.

[Zach Walljasper, Analyst at UBS]

Thank you. I just had one quick question, SAT in the quarter. It performed well organically despite the tough comps. Can you just talk a little bit of strength there? Just trying to understand also the Q2 strength versus the full year was like any pull ahead. Just my other question is around Antares Vision. EBITDA margins seem to come in like in that low doubles, mid-teens range. Is there like an expectation out there for what it could be by year-end or so? Thank you.

[Christina Cristiano, SVP and CFO at Crane NXT]

Yeah. I'll start on that one, Zach. Just in terms of Q2 performance, another strong quarter in SAT, with 10% organic sales growth and, as Aaron said earlier, approximately 200 basis points of organic margin expansion. We expect the full year organic sales growth to be about 3%-4% in this segment, with an EBITDA margin of about 25%. The one thing to point out here, again, is the phasing in the back half, which is a little more skewed toward Q4. Just keep that in mind for the full year. We continue to see strong demand, and most notably, we're on track to achieve the planned synergies that we outlined for authentication, and that's what's driving the margin improvement. I don't know, Aaron, on Antares Vision.

[Aaron Saak, President and CEO at Crane NXT]

I'm happy to take that, Zach. Antares, again, really executing as expected, perhaps a little bit better there to your point on the margins. Just to correct maybe one point there, we expect this to be in kind of the teens adjusted EBITDA for the year, and over the next several years, we're going to grow that into the low 20s. That was always the investment case, and that's how it's playing out for us as it relates to Antares. I just wanted to make sure that that's how you're seeing adjusted EBITDA margins.

[Zach Walljasper, Analyst at UBS]

Got it. That's perfectly good and was expecting for, appreciate it. Thank you.

[Aaron Saak, President and CEO at Crane NXT]

Yeah.

[Operator]

Thank you. This concludes the question-and-answer session. I would now like to turn it back to Andrew Saak for closing remarks.

[Aaron Saak, President and CEO at Crane NXT]

Thank you very much, operator, and thank you for all the questions today. I'd like to end the call where I started with, again, thanking all of our Crane NXT team members around the world for the results they achieved in Q2. It was their hard work and dedication that made it possible, and why I have high confidence in raising our guidance for the full year. I think Q2 was another important proof point in delivering on our value creation priorities, and I look forward to giving you an update next quarter on our progress. Thank you again, and have a great day.

[Operator]

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Participants

Executives

• Matt Roache, VP of Investor Relations
• Aaron Saak, President and CEO
• Christina Cristiano, SVP and CFO

Analysts

• Matt Summerville, Analyst at D.A. Davidson
• Analyst at Baird
• Bob Labick, Analyst at CJS Securities
• Bobby Brooks, Analyst at Northland Capital Markets
• Ian Zaffino, Analyst at Oppenheimer
• Zach Walljasper, Analyst at UBS