Crane NXT Reports 9.1% Net Sales Increase in Q2 2025, Driven by Acquisitions

Crane NXT, Co. reported a net sales increase of 9.1% for the second quarter of 2025, reaching $404.4 million compared to $370.6 million in the same period last year. The growth was attributed to contributions from recent acquisitions, specifically De La Rue Authentication Solutions (DLR) and OpSec Security, which collectively added $26.7 million to sales. However, core sales experienced a decline of $3.0 million, or 0.8%, primarily due to lower volumes in the Crane Payment Innovations (CPI) segment. The company's operating profit for the quarter fell to $47.9 million, a decrease of 29.1% from $67.6 million in the prior year, largely driven by increased costs and restructuring charges.

In the first half of 2025, Crane NXT's net sales totaled $734.7 million, up from $684.2 million in the same period of 2024, marking a 7.4% increase. This growth was similarly supported by the acquisitions, which contributed $59.8 million, while core sales declined by $15.9 million, or 2.3%. The company's operating profit for the six months ended June 30, 2025, was $85.2 million, down 30.7% from $123.0 million in the previous year, reflecting the impact of lower volumes in CPI and the dilutive effects of acquisitions.

Crane NXT has made significant strategic moves, including the acquisition of DLR for approximately $394 million, which was finalized on May 1, 2025. This acquisition is expected to enhance the company's portfolio in security and authentication technologies. Additionally, the company acquired OpSec Security in May 2024 for $268.4 million. These acquisitions have been integrated into the Security and Authentication Technologies segment, which reported a 32.0% increase in sales for the second quarter of 2025, driven by both core growth and contributions from the new acquisitions.

Operationally, Crane NXT's workforce has seen changes due to restructuring efforts, with $7.3 million in restructuring charges recorded in the second quarter of 2025. The company anticipates completing these restructuring initiatives by the end of the year, with total costs expected to range between $10 million and $15 million. As of June 30, 2025, the company reported total assets of $2.9 billion, up from $2.4 billion at the end of 2024, reflecting the impact of acquisitions and growth in working capital.

Looking ahead, Crane NXT expects to recognize approximately 70% of its remaining performance obligations, valued at $591.6 million, as revenue in 2025. The company remains focused on integrating its recent acquisitions and optimizing its operations to enhance profitability. However, it also acknowledges potential risks, including market conditions and the integration of new businesses, which could impact future performance.