Executive Summary

Q3 delivered 10% sales growth to $445.1M, Adjusted EPS of $1.28, and adjusted operating margin expansion to 24.7% driven by SAT strength and productivity; management characterized results as in line with expectations and raised FY25 sales growth to 9–11% while narrowing Adjusted EPS to $4.00–$4.10 .
SAT outperformed with 28% sales growth and 250 bps expansion in adjusted operating margin to 24.4%; CPI remained resilient at a 31.1% adjusted operating margin despite volume softness, with double-digit gaming growth offset by vending headwinds tied to tariffs .
Free cash flow execution was strong (Adj. FCF $85.3M; 115% conversion), net leverage improved to 2.3x; management sees 2026 tailwinds from U.S. currency ($10 bill launch; higher mix of high-denomination notes) and an expanded portfolio with Antares Vision (closing expected 1H26) .
Estimate context: S&P Global consensus for CXT this quarter was not reliably available/consistent; comparisons vs. Street are therefore not presented. When available, we default to S&P Global consensus (“Values retrieved from S&P Global”).

What Went Well and What Went Wrong

What Went Well
- SAT momentum: “accelerating growth in our SAT segment” with YoY sales +28% and adjusted OP margin +250 bps to 24.4% on stronger international currency volumes and mix .
- Cash conversion and deleveraging: Q3 operating cash flow $92.0M; Adj. FCF $85.3M (115% conversion); net leverage improved to 2.3x .
- Strategic narrative: CEO: “excited to add Antares Vision… further positioning Crane NXT to accelerate growth as a market leader in detection, inspection, and authentication technologies” and confirmed high single-digit growth outlook for U.S. Currency in 2026 with $10 note launch and favorable mix .
What Went Wrong
- CPI volume softness: CPI revenue -3.8% YoY; vending orders remain pressured by tariff-driven price increases and macro uncertainty; adjusted OP -4.0% YoY, albeit margins held at 31.1% .
- 2025 margin guidance nudged down: adjusted segment OP margin updated to ~25% from ~25.5–26.5% on lower CPI volumes and added costs to scale international currency production .
- FY25 EPS range narrowed: $4.00–$4.10 (from $4.00–$4.30) reflecting prudence on CPI demand despite raising sales growth to 9–11% .

Financial Results

Headline financials and cash conversion

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	$403.5	$330.3	$404.4	$445.1
GAAP EPS	$0.81	$0.38	$0.43	$0.87
Adjusted EPS	$1.16	$0.54	$0.97	$1.28
Operating Margin % (GAAP)	18.6%	11.3%	11.8%	18.4%
Adjusted Operating Margin %	23.9%	14.9%	21.2%	24.7%
Adjusted EBITDA ($M)	$107.2	$61.1	$97.9	$122.4
Adjusted EBITDA Margin %	26.6%	18.5%	24.2%	27.5%
Cash from Operations ($M)	$66.7	$(19.1)	$62.8	$92.0
Adjusted Free Cash Flow ($M)	$59.0	$(30.5)	$67.4	$85.3
Adj. FCF Conversion %	88.5%	(97.4)%	120.1%	115.1%

Segment performance and margins

Segment Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
CPI Net Sales ($M)	$224.9	$202.9	$211.4	$216.3
CPI Adjusted OP Margin %	31.1%	27.1%	27.0%	31.1%
SAT Net Sales ($M)	$178.6	$127.4	$193.0	$228.8
SAT Adjusted OP Margin %	21.9%	6.6%	20.6%	24.4%

Key balance sheet and backlog KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Total Backlog ($M)	$547.8	$591.6	$557.0
CPI Backlog ($M)	$146.6	$144.4	$109.4
SAT Backlog ($M)	$401.2	$447.2	$447.6
Net Leverage (x)	1.7x	2.6x	2.3x
Cash & Equivalents ($M)	$173.8	$152.5	$182.4
Total Debt ($M)	$804.6	$1,129.2	$1,081.9

Narrative notes: Q3 revenue rose 10.3% YoY to $445.1M (core +1.4%; acquisitions +7.0%; FX +1.9%). Adjusted operating margin expanded 80 bps YoY to 24.7% on SAT mix and productivity, offsetting CPI volume drag and acquisition dilution . CPI sales declined 3.8% YoY on lower volumes, but adjusted margins held at 31.1%; SAT sales rose 28.1% with adjusted margin +250 bps to 24.4% .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Crane NXT Sales Growth	FY 2025	+6% to +8%	+9% to +11%	Raised
CPI Sales Growth	FY 2025	-2% to 0%	-4% to -2%	Lowered
SAT Sales Growth	FY 2025	+19% to +21%	+27% to +29%	Raised
Adjusted Segment Operating Margin	FY 2025	~25.5% to ~26.5%	~25%	Lowered
Corporate Expense	FY 2025	~$55M	~$55M	Maintained
Non-Operating Expense, Net	FY 2025	~$54M	~$54M	Maintained
Adjusted Tax Rate	FY 2025	~21.5%	~21.5%	Maintained
Adjusted EPS	FY 2025	$4.00 to $4.30	$4.00 to $4.10	Narrowed
Adjusted FCF Conversion	FY 2025	~90% to ~110%	~90% to ~110%	Maintained
Diluted Shares	FY 2025	~58M	~58M	Maintained
Dividend	Q4 2025	—	$0.17 per share; payable 12/10/25 (record 11/28/25)	Declared

Management rationale: Updated sales/margin outlook reflects “continued momentum in SAT” and a “reduced sales outlook for CPI,” plus added costs to scale international currency production .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1–Q2 2025)	Current Period (Q3 2025)	Trend
International currency demand/backlog	Record high int’l currency backlog; book-to-bill 2.4 in Q1 ; continued record backlog in Q2	Q3 sales stronger than forecast; backlog near record; customers pulling forward shipments; investing to increase production	Strengthening; capacity actions underway
U.S. currency redesign and mix	Q1: executing equipment upgrades for new U.S. series	$10 bill production mid-2026; BEP mix favoring high-denomination notes; U.S. Currency expected to grow high single digits in 2026; $50 design work underway (2028 target)	Building 2026 tailwind
CPI end-markets	Q1: gaming softness drove CPI -2.9% YoY ; Q2: gaming momentum positive	Q3 gaming up double digits; vending weak (tariff-driven; customers deferring buys); retail/financial services mixed; service ARR mid-single digits	Mixed; services/gaming offset vending
Authentication (OpSec/DLR integration)	Q1: completed DLR acquisition; integration underway	Upgrading legacy DLR holography to micro‑optics; ahead of synergy plan; margin accretive; stickier customers	Executing; margin accretive
M&A strategy	—	Signed to acquire Antares Vision (30% initial stake; tender to take private; EV ~€445M; 1H26 close)	Portfolio expansion; secular tailwinds
Tariffs/macro	Q1: mitigating tariffs via pricing/CBS	Ongoing macro/tariff uncertainty weighing on CPI short-cycle (esp. vending)	Persistent headwind

Management Commentary

CEO framing: “Our third quarter results continue to show progress… with accelerating growth in our SAT segment, strong margins in CPI, and robust free cash flow… we are raising our full year sales guidance” .
Strategic M&A: “Excited to add Antares Vision… positioning Crane NXT to accelerate growth as a market leader in detection, inspection, and authentication technologies” and detailed structure/timing to reach control in 2026 .
Currency capacity and demand: “Some customers are wanting orders now shipped into 2027… taking actions to increase production… partners for substrate and printing” .
CPI portfolio mix: “Service business continues to expand… two significant wins with customers for installation and ongoing service of Kiosk… contributing to mid‑single‑digit ARR growth” .
FY25 outlook cadence: “Updating adjusted segment operating margin to ~25%… narrowing adjusted EPS to $4.00–$4.10” to reflect lower CPI volumes and costs to scale currency output .

Q&A Highlights

Currency capacity/backlog: Not “sold out” for 2026 but backlog positions CXT well; actions to expand capacity include internal optimization and external partners for substrate/printing .
CPI dynamics: Vending orders weak (tariffs; customers “sweating the asset”); gaming orders up double digits; services mid‑single‑digit ARR growth; retail/financial services mixed .
DLR→micro‑optics upgrade: Integration slightly ahead of schedule; materially margin accretive; minimal revenue attrition; authentication OP expected high teens in Q4 and approaching 20% exiting 2026 .
U.S. currency roadmap: $10 note on track for mid‑2026 production; $50 note design milestones progressing; 2026 revenue uplift primarily driven by favorable mix and timing .
Antares Vision and guidance: Initial 2026 guidance will not include Antares until after close; regulatory/tender process to drive timing .

Estimates Context

Street consensus: S&P Global consensus for CXT this quarter was not reliably available/consistent; as such, we do not present beat/miss vs. consensus to avoid misinterpretation. Management characterized Q3 performance as “in line with expectations” and raised FY25 sales outlook while narrowing EPS guidance .
Note: When consensus is available, we default to S&P Global data. Values retrieved from S&P Global.

Key Takeaways for Investors

SAT is the structural growth engine (international currency, authentication upgrades), driving sales/margin mix improvement; this underpins the raised FY25 sales outlook and sets up for 2026 growth as U.S. currency ramps .
CPI remains a high‑margin cash generator despite vending pressure; double‑digit gaming and growing service ARR provide resilience; FY25 CPI margins guided to 29–30% with further discipline into 2026 .
Cash conversion is a differentiator (115% in Q3); net leverage improved to 2.3x; balance sheet capacity plus FCF support organic investments, debt paydown, and integration .
Guidance signals prudence: EPS narrowed on CPI/macros and scaling costs; watch vending order inflection and currency production ramp as key drivers of FY25 exit rates .
Strategic M&A broadens TAM: Antares Vision adds life sciences/food & beverage inspection/traceability with software/services; accretive to adjusted EPS in first full year post‑close; closing expected 1H26 (regulatory/tender) .
2026 catalysts: U.S. $10 bill launch and higher high‑denomination mix, ongoing international currency strength, authentication synergy/margin accretion; Investor Day set for Feb 25 to detail multi‑year plan .

Additional Documents Reviewed (Q3 2025)

Q3 2025 8‑K and earnings press release with financial tables (Item 2.02) .
Q3 2025 earnings call transcript (full) –.
Antares Vision acquisition 8‑K/press release (Sept 12/18, 2025) .
Prior quarter 8‑Ks and press releases for Q2 and Q1 2025 – –.

Notes on non-GAAP: Adjusted metrics exclude “special items” (intangible amortization, restructuring, acquisition step‑ups, transaction costs, discrete tax items, etc.). See company reconciliations in the 8‑K exhibits .

Crane NXT, Co. (CXT)·Q3 2025 Earnings Summary