Crane NXT (CXT) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales grew 9.1% year-over-year to $404.4M, driven by acquisitions and favorable FX, despite a slight core sales decline.

• Adjusted EPS was $0.97, with adjusted operating profit margin at 21.2% and free cash flow conversion at 120%.

• Integration of De La Rue Authentication and OpSec formed Crane Authentication, accelerating synergy realization and positioning as a leader in authentication.

• Record backlog in international currency and SAT segments supports growth outlook.

• M&A pipeline remains active, with a strong balance sheet providing strategic flexibility.

Financial highlights

• Q2 2025 net sales were $404.4M, up 9.1% year-over-year; adjusted segment operating profit margin was 23.9%-24%.

• Adjusted net income was $56.1M; adjusted EBITDA for Q2 was $97.9M (24.2% margin).

• Free cash flow conversion reached 120% in Q2; adjusted free cash flow was $67.4M.

• Net leverage at quarter-end was 2.6x, expected to decrease to 2x by year-end.

• Total debt at $1,140M, cash at $153M, net debt at $987M as of June 30, 2025.

Outlook and guidance

• Full-year adjusted EPS guidance reaffirmed at $4.00–$4.30.

• 2025 sales growth expected at 6–8%; SAT segment growth 19–21%, CPI segment -2% to 0%.

• Adjusted segment operating margin anticipated at 25.5%–26.5%; SAT margins around 21%.

• Free cash flow conversion expected at 90%–110% for the year.

• Q4 expected to be slightly stronger than Q3 in both revenue and operating profit.