Crane NXT — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the quarter ended September 30, 2026, were $497.1 million, an 11.7% increase year-over-year from $445.1 million.
• Organic sales growth was 1.1% year-over-year.
• GAAP net income was $38.4 million, a 24.0% decrease from $50.5 million in the prior year period; GAAP net income margin was 7.7% compared to 11.3% previously.
• GAAP earnings per diluted share (EPS) were $0.66, down from $0.87 in the prior year.
• Adjusted EPS was $1.28.
• Adjusted EBITDA was $127.2 million, a 3.9% increase from $122.4 million; Adjusted EBITDA margin was 25.6%, down 190 basis points from 27.5%.
• Cash provided by operating activities was $111.8 million.
• Free cash flow was $90.2 million.
• Adjusted free cash flow was $97.7 million, with an adjusted free cash flow conversion of 131.8% (132% rounded).
• Total debt was $1,412.6 million (excluding deferred financing costs); net debt was $1,161.5 million.
• Net leverage ratio was 2.5x based on trailing twelve-month Adjusted EBITDA of $460.3 million.
• For the nine months ended September 30, 2026, GAAP net income was $80.2 million (down from $97.1 million), and Adjusted EPS was $2.97 (up from $2.79).

Guidance and Future Outlook:

• Updated full-year 2026 sales growth guidance to approximately 14%, revised down from the prior range of +15% to +17%.
• Updated full-year 2026 Adjusted EPS guidance to $4.32 to $4.42, raising the midpoint from the prior range of $4.22 to $4.42.
• Updated full-year 2026 DTT segment sales growth guidance to the high-teens, revised down from the low 20s.
• Updated full-year 2026 SAT segment sales growth guidance to approximately 11%, revised down from the high-single digits to low-double digits.
• Maintained full-year 2026 Adjusted EBITDA margin guidance at approximately 24%.
• Maintained full-year 2026 Adjusted segment EBITDA margin guidance at approximately 27%.
• Maintained full-year 2026 corporate expense guidance at approximately $58 million.
• Updated full-year 2026 non-operating expense, net guidance to $75-$80 million, revised down from approximately $80 million.
• Maintained full-year 2026 adjusted tax rate guidance at approximately 21.5%.
• Maintained full-year 2026 adjusted free cash flow conversion guidance at 90% to 110%.
• Maintained full-year 2026 diluted shares guidance at approximately 58 million.
• Management stated the company remains on track to achieve its year-end deleveraging target.

Business Segments and Product Lines:

• Security and Authentication Technologies (SAT):
  • Net sales were $243.5 million, up 6.4% year-over-year.
  • Organic sales growth was 7.2%.
  • GAAP operating profit was $46.1 million, up 17.3% from $39.3 million; operating profit margin was 18.9%.
  • Adjusted EBITDA was $71.0 million, up 8.6% from $65.4 million; Adjusted EBITDA margin was 29.2%.
• Detection and Traceability Technologies (DTT):
  • Net sales were $253.6 million, up 17.2% year-over-year.
  • Organic sales were down 5.3%.
  • GAAP operating profit was $35.7 million, down 41.2% from $60.7 million; operating profit margin was 14.1%.
  • Adjusted EBITDA was $71.1 million, up 1.9% from $69.8 million; Adjusted EBITDA margin was 28.0%.
• The DTT segment includes approximately $125 million of backlog as of September 30, 2026, pertaining to the Antares Vision business acquired in March 2026.
• Total order backlog was $715.5 million as of September 30, 2026, down from $755.5 million as of June 30, 2026.

Market and Competitive Landscape:

• Management noted securing meaningful long-term customer wins that enhance visibility into future revenue.
• The company delivered on synergy commitments.
• Management highlighted the strength of its portfolio and the confidence customers place in its differentiated technologies and solutions.
• The company operates in the authentication and traceability technologies market, focusing on preventing counterfeiting and ensuring product quality and traceability.

Risks and Challenges:

• Risks include the impact of tariffs and other trade measures, changes in global economic conditions, inflationary pressures, and geopolitical risks.
• Demand for products is variable and subject to factors beyond the company's control.
• Risks associated with conducting business outside the U.S., including potential tariffs.
• Risks related to information systems failures, data security breaches, and non-compliance with data obligations.
• Risks associated with identifying, completing, or integrating acquisitions.
• Fluctuation in prices or disruption in sourcing components and raw materials.
• Risks related to the separation from Crane Company in 2023, including tax treatment and transaction agreement performance.
• Significant competition in the company's markets.
• Risks related to litigation, claims, investigations, and regulatory compliance.

Management Commentary and Tone:

• Aaron W. Saak, President and CEO, stated the company continued to make progress against strategic priorities.
• Management expressed confidence in the strength of the portfolio, disciplined execution, and customer confidence.
• Management emphasized that robust free cash flow generation supports deleveraging targets and financial flexibility.
• The tone regarding capital deployment was focused on discipline to support growth and create long-term shareholder value.

Other Key Points:

• Crane NXT announced a quarterly dividend of $0.18 per share for the fourth quarter of 2026, payable on December 9, 2026, to shareholders of record as of November 30, 2026.
• The company acquired the Antares Vision business in March 2026, which contributed to sales growth and backlog.
• A conference call to discuss results was scheduled for November 5, 2026, at 10:00 A.M. Eastern.
• The company has approximately 6,000 employees.