Crane NXT Q2 Results: Revenue Exceeds Expectations, Operating Margin Down.

Crane NXT (CXT) Q2 CY2025 highlights: revenue up 9.1% YoY to $404.4 million, beating estimates by 5.9%; non-GAAP profit of $0.97 per share, 2.5% above consensus; adjusted EBITDA at $97.9 million, with a 24.2% margin and 4.2% beat. Management reiterated full-year adjusted EPS guidance of $4.15 at the midpoint.

Payment technology company Crane NXT (NYSE:CXT) reported strong financial performance for the second quarter of 2025, with revenue up 9.1% year-over-year to $404.4 million, exceeding Wall Street estimates by 5.9%. The company's non-GAAP profit per share of $0.97 was 2.5% above consensus estimates, while adjusted EBITDA reached $97.9 million, with a margin of 24.2% and a 4.2% beat. Management reiterated its full-year adjusted EPS guidance of $4.15 at the midpoint [2].

The company's currency business achieved a record high backlog of $591.6 million, driven by robust demand and project timing. This segment is positioned for ongoing growth, with mid-single-digit full-year growth expected [1]. The integration of the De La Rue Authentication acquisition and the launch of new products like Fortress and JetScan Ultra contributed significantly to the company's performance. Fortress, a proprietary materials-based security feature for product authentication, and JetScan Ultra, a high-speed currency scanner with advanced counterfeit detection, are aimed at expanding market share [2].

Crane NXT's operational efficiency remains a key strength, with 120% free cash flow conversion in Q2 and anticipated operating profit margins of approximately 20% by the end of 2026. The company's strategic focus on acquisitions aligns with its disciplined approach, targeting technology leadership positions, wide moats, and significant value creation opportunities [1].

Looking ahead, Crane NXT expects growth to be shaped by product launches, operational synergies from recent acquisitions, and ongoing pricing and supply chain strategies to mitigate external pressures. The gaming end-market is expected to drive double-digit growth in the second half, while improved product mix and disciplined cost management should support CPI's full-year operating margin target. The company is actively managing the impact of tariffs and broader macroeconomic uncertainties through pricing actions and supply chain adjustments [2].

References:
[1] https://www.ainvest.com/news/crane-nxt-2025-q2-earnings-call-key-contradictions-gaming-recovery-manufacturing-margins-cpi-growth-2508/
[2] https://stockstory.org/us/stocks/nyse/cxt/news/earnings-call/cxt-q2-deep-dive-product-launches-and-integration-offset-margin-pressures