0000025445-26-000009
SEC filingCrane NXT's 2025 revenue grew 11.4% to $1.66B driven by acquisitions, but operating profit declined 8.2% due to dilutive acquisitions and CPI headwinds.
Crane NXT, Co. describes itself as a premier industrial technology company that provides proprietary and trusted technology solutions to secure, detect, and authenticate what matters most to its customers. The company was separated from Crane Company (SpinCo) on April 3, 2023, via a pro-rata distribution, and now operates as an independent publicly-traded company under the ticker CXT. The separation involved retaining the Payment and Merchandising Technologies business, which became Crane NXT.
Crane NXT operates through two reportable segments: Crane Payment Innovations (CPI) and Security and Authentication Technologies (SAT). CPI provides electronic equipment and associated software leveraging detection and sensing technologies for payment transaction verification and authentication, along with advanced automation solutions and remote diagnostics. SAT provides advanced security solutions based on proprietary micro-optics technology for securing physical products such as banknotes and consumer goods, as well as digital authentication and brand protection services. The SAT segment also includes the acquired OpSec and De La Rue businesses. Key facilities for CPI are located in the United States, United Kingdom, Mexico, Japan, and Germany; for SAT, in the United States, United Kingdom, Sweden, and Malta.
The company highlights several proprietary technologies and platforms: micro-optics technology for anti-counterfeiting, digital authentication solutions, detection and sensing technologies, payment automation solutions, banknote design and production, brand protection, digital content protection, and image recognition software built on advanced algorithms. The Crane Business System (CBS) is a core operational framework driving excellence.
Crane NXT sells its products globally through direct sales offices and service networks. The SAT segment has government contracts, which impose specific regulatory requirements. No specific customer concentration is disclosed; however, the company notes that revenues depend on unpredictable factors including market demand and customer capital spending.
The company operates in highly competitive markets across diverse product areas and geographies. Crane NXT believes it is a principal competitor in most of its markets, with leadership in anti-counterfeiting materials and surface technology, detection systems, digital content protection, and authentication software. No specific competitors are named, but the company emphasizes competing on quality, technological differentiation, price, service, and delivery.
The company's stated strategic priorities include focusing on proprietary and differentiated technology, investing in core businesses to drive organic growth, maintaining financial flexibility for strategic acquisitions in higher-growth adjacencies, continuously evaluating the portfolio for potential divestitures, and fostering a performance-based culture leveraging the Crane Business System to achieve operational excellence and profitable growth.
As of December 31, 2025, Crane NXT employed approximately 4,800 persons worldwide, substantially all full-time. In the United States, roughly 2,200 employees work across 32 locations. The company emphasizes attracting, developing, and retaining talent through its Intellectual Capital process, and is committed to diversity, inclusion, and health and safety. Employee relations are considered good, with some foreign employees represented by works councils or unions.
In 2025, Crane NXT reported total net sales of $1,656.7 million, an increase of 11.4% from $1,486.8 million in 2024. Acquisitions contributed 8.9% ($133.0 million), core sales growth added 0.7% ($10.1 million), and foreign exchange provided a 1.8% tailwind ($26.8 million). Cost of sales rose 16.0% to $952.9 million, driven by acquisition costs, higher material costs, and unfavorable mix, partially offset by productivity gains. Selling, general and administrative expenses increased 14.0% to $440.3 million, primarily from acquisitions. Operating profit decreased 8.2% to $246.7 million, with operating margin contracting 320 basis points to 14.9%. Net income fell to $145.1 million from $184.1 million in 2024, impacted by higher interest expense and an equity investment loss.
Crane Payment Innovations (CPI): Segment sales decreased 3.0% to $846.6 million, driven by a 3.6% core sales decline (mainly lower vending volumes), partially offset by favorable FX. Payment Acceptance and Dispensing Products fell 4.1%, while Services grew 2.9% on pricing. Operating profit declined 3.0% to $221.6 million, with margin flat at 26.2%. Lower volumes ($27.8 million headwind) and unfavorable mix ($16.4 million) were largely offset by pricing, productivity, and cost savings ($32.0 million benefit).
Security and Authentication Technologies (SAT): Sales surged 32.0% to $810.1 million, reflecting $133.0 million from acquisitions and 6.8% core growth. Authentication Products & Solutions more than doubled, while Banknotes grew 13.5%. Despite top-line strength, operating profit declined 12.2% to $97.4 million, and margin dropped to 12.0% from 18.1%. The decline was driven by higher material costs, restructuring charges ($12.1 million), and the dilutive impact of acquisitions ($15.0 million), partially offset by productivity gains.
Management highlighted strategic priorities including the Antares Vision acquisition (multi-phase, expected to close final phase in 2026) and integration of DLR/OpSec under Crane Authentication. Restructuring programs are expected to continue, with total SAT program costs of $15–$17 million. Capital expenditures for 2026 are guided in the range of $75–$80 million. Regarding trade policies, the company expects to mitigate the majority of tariff impacts on operating profit through pricing and productivity initiatives, though lower demand in CPI vending persists. No explicit revenue or margin guidance was provided.
Cash and cash equivalents increased to $233.8M as of December 31, 2025 (from $165.8M in 2024). Total debt rose significantly to $1,139.5M (short-term borrowings $135.1M + long-term debt $1,004.4M, net of deferred financing costs) from $750.6M in 2024, driven by borrowings of $532.0M in term loans to fund acquisitions. Shareholders' equity grew to $1,253.0M from $1,064.9M, supported by net income and favorable currency translation. Inventory stood at $169.5M, up from $144.8M, reflecting acquisition and growth. The company reported backlog (remaining performance obligations) of $492.8M, expected to be recognized 98% in 2026.
Purchase commitments are limited to operating lease obligations. Future minimum operating lease payments total $102.6M, with $17.7M due in 2026. No other material purchase commitments or supply agreements were disclosed. The company has a contingent liability of $1.5M from the OpSec acquisition, capped at $2.2M, dependent on revenue targets through October 2027.
Dividends totaled $39.0M for the year, up from $36.6M in 2024, with a quarterly per-share dividend of $0.17 ($0.68 annual). Capital expenditures were $38.5M, representing 2.32% of sales, with the majority in Security and Authentication Technologies ($30.7M). No share repurchases were executed; the company did not disclose a buyback program. Debt increased by $388.9M net, primarily from term loans used to fund the De La Rue and Antares Vision acquisitions.
Crane Payment Innovations (CPI) generated $846.6M in net sales (-3% YoY) with operating profit of $221.6M and a 26.2% margin. Security and Authentication Technologies (SAT) posted $810.1M (+32% YoY) with operating profit of $97.4M and 12.0% margin. The SAT segment's growth was driven by the OpSec and De La Rue acquisitions. Geographically, North America contributed $829.3M (50.1%), Western Europe $190.2M (11.5%), and Rest of World $637.2M (38.5%). The Rest of World share increased notably from 34.9% in 2023 to 38.5% in 2025.
Crane NXT's business is exposed to global economic conditions, including inflation, trade policies, and geopolitical instability. The company notes that tariffs, particularly under the Mexican Maquiladora program, could increase costs and reduce demand. Foreign exchange fluctuations (JPY, GBP, EUR, SEK) also pose translation risk given 50% of sales are outside the U.S.
Demand volatility is driven by cash usage trends and end-market conditions in gaming, retail, and banking. Supply chain risks include reliance on single/sole-source suppliers for critical materials (steel, copper, cotton), which can cause production delays or cost increases. The company also faces challenges in aligning manufacturing capacity with demand, as evidenced by recent restructuring charges.
Cybersecurity threats are a material risk, with the company acknowledging prior attacks and expecting future incidents. A breach could disrupt operations, expose sensitive data, and result in legal liability. Additionally, product development cycles face risks of delays, customer acceptance issues, and counterfeit products.
Impairment of goodwill and intangibles (55% of total assets) is a key financial risk. Tax exposures arise from changing laws and audit outcomes. The separation from Crane Company introduces tax uncertainty: the IRS could challenge the tax-free status of the distribution, leading to significant liabilities. Internal control deficiencies in a decentralized environment could also affect financial reporting.
Competition is intense across all markets, with potential for price erosion and market share loss. Talent retention is challenging in a tight labor market, which could hinder innovation and growth.
Overall, the risk factors reflect a complex operating environment with multiple external and internal vulnerabilities. The company has not identified any risk as having a material impact to date, but these factors could significantly affect future results.