Crane NXT, Co.

Sales were $493 million, up 22% year over year. Organic sales grew 3%, adjusted EBITDA was $115 million with ~23% margin, and adjusted EPS was $1.10, up 13% year over year. Adjusted free cash flow was $79 million with ~124% conversion. By segment, SAT sales were $227 million, up ~17% with 26% adjusted EBITDA margin; DTT sales were $267 million, up 26% with ~240 basis points of organic EBITDA margin expansion mentioned; and SAT backlog was about $500 million. Full-year guidance calls for total sales growth of 15% to 17%, adjusted EBITDA margin of ~24%, free cash flow conversion of 90% to 110%, and adjusted EPS of $4.22 to $4.42. For Q3, management expects low double-digit sales growth overall, with SAT flat to slightly down, DTT up mid-20s percent, and CPI down low single digits.

Aaron Saak emphasized execution against value-creation priorities: organic growth, leadership-position expansion, operational excellence, margin expansion, and strong free cash flow. He was notably upbeat on currency demand and backlog, saying the business is 'incredibly bullish' and capacity is being added quickly through partnerships and micro-optics buildout in the U.S. and Europe. On Antares Vision, he said integration is progressing well, CBS is being implemented, and the acquisition opens attractive markets in pharma and track-and-trace with longer-term cross-selling potential.

Christina Cristiano highlighted the quarter's financial outperformance: $493 million in sales, $115 million of adjusted EBITDA, ~23% margin, $1.10 adjusted EPS, and $79 million of adjusted free cash flow. She said organic margin expansion was 150 basis points overall, with SAT margin at 26% and DTT improving ~240 basis points organically due to pricing and productivity actions. She also noted net leverage of ~2.7x at quarter end, expects to end 2026 at ~2.3x, and lowered full-year non-operating expense to about $80 million from $85 million due to debt paydown and lower borrowing costs.

Analysts focused on three areas: currency capacity and backlog into 2028, the persistence of CPI hardware and vending weakness, and the expected margin trajectory at Antares Vision/authentication. Management said currency capacity is being expanded quickly and the business can sustain high mid-single-digit international currency growth for several years, while backlog visibility is stronger in SAT than in the more book-and-bill CPI business. On CPI, they pointed to sequential backlog growth, book-to-bill above 1, and strong free cash flow, and on Antares they said integration is ahead of expectations operationally, with EBITDA margins expected to be in the teens this year and to grow into the low twenties over time.