Payment technology company Crane NXT (NYSE: CXT) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 10.3% year on year to $445.1 million. Its non-GAAP profit of $1.28 per share was 1.8% above analysts’ consensus estimates.

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StockStory’s Take

Crane NXT delivered third quarter results that surpassed Wall Street’s revenue and non-GAAP profit expectations, yet the market reacted negatively. Management attributed the quarter’s performance to sustained momentum in its international currency business, where strong order activity and new customer wins—particularly in Latin America—drove growth. CEO Aaron Saak emphasized that the company’s micro-optics technology was specified in nine new currency denominations year-to-date, highlighting ongoing demand for advanced anti-counterfeiting features. Despite robust performance in currency, management noted continued softness in CPI’s vending segment, citing customer delays after recent price increases driven by tariffs.

Looking ahead, Crane NXT’s revised full-year outlook reflects confidence in strategic growth areas but also caution around ongoing headwinds. Management lowered its full-year adjusted EPS guidance, citing ongoing weakness in vending and higher costs to support increased international production. CEO Aaron Saak stated, “We’re taking a very prudent approach to the outlook, particularly in Q4 and as we look ahead to next year.” The company’s focus remains on expanding its authentication technologies, integrating recent acquisitions, and capitalizing on favorable developments in U.S. currency redesigns, such as the upcoming launch of the new $10 bill.

Key Insights from Management’s Remarks

Management pointed to diverging trends across its segments, with international currency and authentication technologies offsetting ongoing weakness in vending and other CPI markets.

• International currency strength: Demand for anti-counterfeiting technology drove strong growth, with emerging market customers accelerating currency redesigns and specifying Crane NXT’s micro-optics products. The company’s backlog for international currency remains near record highs, and management is investing in production capacity to meet robust order flow.

• Vending and CPI softness: CPI segment revenue declined due to persistent order delays in vending, attributed to customers postponing purchases following tariff-related price increases. Management does not expect a near-term recovery in this segment and is maintaining a cautious outlook.

• Service business expansion: The CPI service business expanded through new wins in kiosk installation and maintenance, driving mid-single-digit annual recurring revenue growth. These service contracts are becoming a larger and more profitable part of the CPI portfolio.

• Authentication integration progress: The integration of De La Rue’s authentication business is ahead of schedule, with customers transitioning from legacy holographic products to proprietary micro-optics, resulting in higher margins and improved customer retention.

• Portfolio diversification via M&A: The planned acquisition of Antares Vision marks a shift toward non-cash-related markets such as life sciences and food & beverage, aligning the company’s portfolio with long-term industry tailwinds and reducing exposure to cash-centric end markets.

Drivers of Future Performance

Crane NXT’s forward guidance is shaped by strong international demand, U.S. currency redesigns, and ongoing challenges in vending and hardware.

• Continued international demand: Management expects robust international currency orders to persist, supported by high backlog levels and ongoing investments in production. The company is responding to rising customer needs for advanced security features and faster delivery timelines, especially in emerging markets.

• U.S. currency redesign tailwinds: The upcoming launch of the redesigned $10 bill and higher volumes of high-denomination notes—driven by Federal Reserve orders—are expected to support high single-digit growth in the U.S. currency business next year. Additional future redesigns, like the $50 note, are in early planning stages and could provide multi-year growth opportunities.

• Vending and CPI headwinds: Ongoing softness in vending, partly due to tariffs and macroeconomic uncertainty, is expected to weigh on the CPI segment. Management is taking a conservative outlook, anticipating flat to low single-digit growth, but sees continued margin support from the expanding service business.

Catalysts in Upcoming Quarters

Over the next few quarters, the StockStory team will closely watch (1) the pace at which Crane NXT ramps production and delivery of international currency orders, (2) the integration progress and initial financial contributions from the Antares Vision acquisition, and (3) whether vending demand in CPI stabilizes or remains under pressure. The successful launch of the new $10 bill and continued margin expansion in services will also serve as important signposts.

Crane NXT currently trades at $61.35, down from $64.12 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).

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