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 intended to support high mid-single-digit growth in international currency over the next several years and eventually double the company’s micro-optics capabilities.
Crane NXT now expects high-single-digit to low-double-digit SAT sales growth for the full year, supported by international currency backlog and customer demand. The company also renewed its U.S. passport paper contract with the U.S. Government Publishing Office, extending the relationship for another 10 years.
Within authentication, management expects to end 2026 with a mid-teens EBITDA margin. Cristiano said the company expects mid-single-digit revenue growth in authentication during the second half and approximately 100 basis points of margin expansion for the SAT segment for the full year.
Antares Integration Supports DTT Results
DTT sales increased 26% year over year to $267 million, reflecting a full-quarter contribution from Antares Vision. The company expects Antares to contribute approximately $200 million to $210 million of sales in 2026, with the fourth quarter representing its largest quarterly contribution because of historical seasonality.
Management said Antares had been part of Crane NXT for about 150 days at the time of the call and that integration efforts were progressing. Saak said the company has implemented the Crane Business System, including training and Kaizen events, to pursue productivity and margin-improvement opportunities.
Antares backlog was approximately $125 million within DTT’s total segment backlog of $257 million. Crane NXT expects to deliver that Antares backlog over the next 12 months.
Saak said the company expects Antares to generate adjusted EBITDA margins in the teens for 2026 and to increase those margins into the low 20% range over the next several years. He also cited potential longer-term opportunities to apply authentication technology in pharmaceutical markets and leverage currency-business relationships in emerging markets for pharmaceutical traceability initiatives.
CPI Hardware Softness Offset by Margin Actions
Crane Payment Innovations, or CPI, faced softer hardware demand, particularly in retail-related custom projects, while services continued to grow in the mid-single digits. CPI backlog was approximately $132 million at quarter-end, up about 10% sequentially, and the business reported a book-to-bill ratio of approximately 1.1 times.
Despite softer hardware demand, DTT expanded organic EBITDA margin by approximately 240 basis points through pricing discipline and productivity actions. Management expects CPI sales to decline in the low single digits in the third quarter before improving to low-single-digit growth in the fourth quarter.
For the full year, Crane NXT expects CPI sales to be slightly down, including mid-single-digit services growth, low-single-digit vending growth and a mid-single-digit decline in hardware sales.
Crane NXT ended the quarter with net leverage of approximately 2.7 times. The company plans to direct free cash flow toward debt reduction and expects to end 2026 with net leverage of about 2.3 times. Management maintained its expectation for full-year free-cash-flow conversion of 90% to 110%.
About Crane NXT (NYSE:CXT)
Crane NXT, 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.
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