CXT Q2 2026 - Preliminary Earnings Alert
Event: Quartr Q2 2026 event Retrieved: 2026-08-05T23:25:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available | financials=earnings release only | transcript=not yet available (call 2026-08-06 14:00Z)
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue / total net sales | $493.2m | $475.617m | Beat +$17.583m | +3.7% |
| EPS / adjusted diluted | $1.10 | $1.04 | Beat +$0.06 | +5.8% |
Reported results and guidance
| Metric (GAAP unless noted, $m) | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net sales, Security and Authentication Technologies | $226.7 | $193.0 | +17.5% |
| Net sales, Detection and Traceability Technologies | $266.5 | $211.4 | +26.1% |
| Total net sales | $493.2 | $404.4 | +22.0% |
| Operating profit, Security and Authentication Technologies | $38.9 | $18.0 | +116.1% |
| Operating profit, Detection and Traceability Technologies | $44.0 | $49.0 | −10.2% |
| Corporate | $(14.0) | $(19.1) | −26.7% |
| Total operating profit | $68.9 | $47.9 | +43.8% |
| Operating profit margin | 14.0% | 11.8% | +2.2 pts |
| Interest expense | $(21.0) | $(16.4) | +28.0% |
| Equity investment income | $0.1 | $0.3 | −66.7% |
| Miscellaneous (expense) income, net | $(0.1) | $1.0 | to an expense |
| Income before income taxes | $47.9 | $32.8 | +46.0% |
| Provision for income taxes | $11.7 | $7.8 | +50.0% |
| Net income before allocation to noncontrolling interest | $36.2 | $25.0 | +44.8% |
| Less: noncontrolling interest in subsidiaries' earnings | $0.8 | $0.1 | +$0.7 |
| Net income attributable to common shareholders | $35.4 | $24.9 | +42.2% |
| Net income margin | 7.2% | 6.2% | +100 bps |
| EPS, diluted | $0.61 | $0.43 | +41.9% |
| Adjusted net income (non-GAAP) | $63.9 | $56.1 | +13.9% |
| Adjusted EPS (non-GAAP, per diluted share) | $1.10 | $0.97 | +13.4% |
| Adjusted EBITDA (non-GAAP) | $115.5 | $97.9 | +18.0% |
| Adjusted EBITDA margin (non-GAAP) | 23.4% | 24.2% | −80 bps |
| Total provided by operating activities | $86.7 | $62.8 | +38.1% |
| Average diluted shares outstanding (millions) | 57.9 | 58.0 | −0.2% |
| Average basic shares outstanding (millions) | 57.5 | 57.4 | +0.2% |
| Six-month item (GAAP unless noted, $m) | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|
| Net sales, Security and Authentication Technologies | $419.5 | $320.4 | +30.9% |
| Net sales, Detection and Traceability Technologies | $461.4 | $414.3 | +11.4% |
| Total net sales | $880.9 | $734.7 | +19.9% |
| Operating profit, Security and Authentication Technologies | $54.0 | $20.4 | +165% |
| Operating profit, Detection and Traceability Technologies | $75.4 | $98.7 | −23.6% |
| Corporate | $(38.3) | $(33.9) | +13.0% |
| Total operating profit | $91.1 | $85.2 | +6.9% |
| Interest expense | $(38.8) | $(27.9) | +39.1% |
| Equity investment income | $4.8 | $0.4 | +1,100% |
| Income before income taxes | $57.1 | $60.9 | −6.2% |
| Provision for income taxes | $14.1 | $14.2 | −0.7% |
| Net income before allocation to noncontrolling interest | $43.0 | $46.7 | −7.9% |
| Net income attributable to common shareholders | $41.8 | $46.6 | −10.3% |
| EPS, diluted | $0.72 | $0.80 | −10.0% |
| Total provided by operating activities | $72.7 | $43.7 | +66.4% |
| Total used for investing activities | $(244.1) | $(412.6) | −40.8% |
| Q2 2026 sales growth bridge | Total Crane NXT | Security and Authentication Technologies | Detection and Traceability Technologies |
|---|---|---|---|
| Net sales change ($m) | +$88.8 | +$33.7 | +$55.1 |
| Net sales change (%) | +22.0% | +17.5% | +26.1% |
| Organic ($m / %) | +$11.3 / +2.8% | +$18.5 / +9.6% | $(7.2) / (3.4)% |
| Acquisitions ($m / %) | +$74.6 / +18.4% | +$10.9 / +5.6% | +$63.7 / +30.1% |
| Foreign exchange ($m / %) | +$2.9 / +0.8% | +$4.3 / +2.2% | $(1.4) / (0.6)% |
| Segment detail, Q2 | SAT 2026 | SAT 2025 | DTT 2026 | DTT 2025 |
|---|---|---|---|---|
| Net sales ($m) | $226.7 | $193.0 | $266.5 | $211.4 |
| Operating profit ($m) | $38.9 | $18.0 | $44.0 | $49.0 |
| Operating profit margin | 17.2% | 9.3% | 16.5% | 23.2% |
| Adjusted EBITDA ($m) | $58.8 | $49.4 | $70.4 | $59.3 |
| Adjusted EBITDA margin | 25.9% | 25.6% | 26.4% | 28.1% |
| Order backlog ($m) | 30 Jun 2026 | 31 Mar 2026 | 31 Dec 2025 | 30 Sep 2025 | 30 Jun 2025 |
|---|---|---|---|---|---|
| Security and Authentication Technologies | $498.1 | $428.5 | $379.4 | $447.6 | $447.2 |
| Detection and Traceability Technologies | $257.4 | $220.8 | $113.4 | $109.4 | $144.4 |
| Total backlog | $755.5 | $649.3 | $492.8 | $557.0 | $591.6 |
| Balance sheet item ($m) | 30 Jun 2026 | 31 Dec 2025 | Change |
|---|---|---|---|
| Cash and cash equivalents | $231.4 | $233.8 | −1.0% |
| Accounts receivable, net | $406.9 | $351.8 | +15.7% |
| U.S. and foreign taxes on income (current asset) | $18.9 | $12.7 | +48.8% |
| Inventories, net | $238.5 | $169.5 | +40.7% |
| Other current assets | $84.8 | $85.1 | −0.4% |
| Total current assets | $980.5 | $852.9 | +15.0% |
| Property, plant and equipment, net | $318.4 | $303.8 | +4.8% |
| Long-term deferred tax assets | $13.0 | $2.5 | +420% |
| Investment in equity affiliates and joint ventures | $8.2 | $139.4 | −94.1% |
| Other assets | $93.3 | $96.6 | −3.4% |
| Intangible assets, net | $745.7 | $557.2 | +33.8% |
| Goodwill | $1,436.0 | $1,164.0 | +23.4% |
| Total assets | $3,595.1 | $3,116.4 | +15.4% |
| Short-term borrowings | $193.9 | $135.1 | +43.5% |
| Accounts payable | $118.8 | $132.3 | −10.2% |
| Contract liabilities | $158.7 | $87.3 | +81.8% |
| Accrued liabilities | $199.5 | $185.7 | +7.4% |
| U.S. and foreign taxes on income (current liability) | $21.9 | $28.7 | −23.7% |
| Total current liabilities | $692.8 | $569.1 | +21.7% |
| Long-term debt | $1,260.0 | $1,004.4 | +25.4% |
| Accrued pension and postretirement benefits | $28.7 | $19.1 | +50.3% |
| Long-term deferred tax liability | $204.8 | $151.0 | +35.6% |
| Other liabilities | $123.0 | $116.0 | +6.0% |
| Redeemable noncontrolling interest | $20.7 | $9.9 | +109% |
| Total equity | $1,265.1 | $1,246.9 | +1.5% |
Guidance (full-year 2026, updated from the guidance issued in May 2026):
| Metric | Updated FY2026 guide | Prior FY2026 guide | Change |
|---|---|---|---|
| Crane NXT sales growth | +15% to +17% | +15% to +17% | unchanged |
| SAT segment sales growth | ~HSD to ~LDD | ~HSD | raised at the top end |
| DTT segment sales growth | Low 20's% | Low 20's% | unchanged |
| Adjusted segment EBITDA margin | ~27% | ~27% | unchanged |
| Adjusted EBITDA margin | ~24% | ~24% | unchanged |
| Adjusted EPS | $4.22 to $4.42 | $4.10 to $4.40 | raised $0.12 at the low end, $0.02 at the high end |
| Corporate expense | ~$58m | ~$58m | unchanged |
| Non-operating expense, net | ~$80m | ~$85m | lowered $5m |
| Adjusted tax rate | ~21.5% | ~21.5% | unchanged |
| Adjusted free cash flow conversion | ~90% to ~110% | ~90% to ~110% | unchanged |
| Diluted shares | ~58 million | ~58 million | unchanged |
| Dividend | Amount | Detail |
|---|---|---|
| Q3 2026 quarterly dividend | $0.18 per share | payable 9 September 2026 to holders of record 31 August 2026 |
- Scorecard recap: total net sales of $493.2m beat consensus by 3.7% and adjusted EPS of $1.10 beat the $1.04 estimate by 5.8%.
- Sales grew 22.0% year over year, but only 2.8% organically; acquisitions contributed 18.4 points and foreign exchange 0.8 point.
- Adjusted free cash flow conversion was 124% in the quarter, against a full-year guide of ~90% to ~110%.
- CEO Aaron W. Saak attributed the quarter to "strong operational performance," citing continued strong demand in the Currency business and cost saving actions in Crane Authentication, partially offset by lower volumes in CPI.
- Saak said the company is "pleased with the progress we've made during our first 90 days with the integration of Antares Vision" and is "quickly implementing the Crane Business System to drive growth and margin expansion."
- Total order backlog of $755.5m at 30 June 2026 is up 27.7% from 30 June 2025 and up 16.4% sequentially; $124.7m of the Detection and Traceability backlog relates to the Antares Vision business acquired in March 2026.
- Adjusted EPS excludes acquired intangible asset amortization ($0.42 per share), restructuring and related costs ($0.06), transaction related expenses ($0.07), acquisition related adjustments ($0.05), and tax adjustments ($(0.11)).
Key bullish aspects
- Both scorecard metrics beat, and the company raised full-year adjusted EPS guidance to $4.22-$4.42 from $4.10-$4.40, lifting the low end by $0.12.
- SAT segment sales growth guidance was raised at the top end, from approximately high single digits to approximately high single digits through low double digits.
- Total net sales grew 22.0% to $493.2m and total operating profit grew 43.8% to $68.9m, expanding GAAP operating margin 2.2 points to 14.0%.
- The Security and Authentication Technologies segment nearly tripled operating profit to $38.9m from $18.0m, expanding segment operating margin 790 basis points to 17.2%, and grew organically 9.6%.
- Total order backlog rose to $755.5m from $591.6m a year ago (+27.7%) and $649.3m at 31 March 2026 (+16.4%); SAT backlog of $498.1m is up 11.4% year over year even excluding acquisitions.
- Adjusted EBITDA rose 18.0% to $115.5m and adjusted net income rose 13.9% to $63.9m.
- Operating cash flow of $86.7m in the quarter rose 38.1% year over year, and adjusted free cash flow conversion of 124% ran above the full-year guide.
- Corporate expense fell 26.7% year over year to $14.0m.
- Non-operating expense guidance was lowered by $5m to approximately $80m for the full year.
- Contract liabilities rose 81.8% over six months to $158.7m, consistent with the backlog build.
- Six-month operating cash flow rose 66.4% to $72.7m.
- The quarterly dividend of $0.18 per share was maintained.
- Diluted share count fell slightly year over year to 57.9m, and full-year diluted share guidance of approximately 58 million is unchanged.
Key bearish aspects
- Organic sales growth was only 2.8%; the 22.0% headline is 18.4 points acquisition and 0.8 point currency.
- Detection and Traceability Technologies — the larger segment by sales this quarter — shrank 3.4% organically, and its operating profit fell 10.2% to $44.0m with segment operating margin down 670 basis points to 16.5%.
- DTT adjusted EBITDA margin fell 170 basis points to 26.4% despite 26.1% reported sales growth, so the acquired revenue is dilutive to segment margin.
- Consolidated adjusted EBITDA margin fell 80 basis points to 23.4%, and the full-year adjusted EBITDA margin guide of approximately 24% was left unchanged rather than raised.
- The company cites the impact of lower volumes in CPI as a partial offset to the quarter's gains, without quantifying it.
- Interest expense rose 28.0% year over year to $21.0m in the quarter and 39.1% to $38.8m over six months, following the Antares Vision acquisition.
- Long-term debt rose 25.4% over six months to $1,260.0m and short-term borrowings rose 43.5% to $193.9m, so total borrowings rose to $1,453.9m from $1,139.5m.
- Six-month net income attributable to common shareholders fell 10.3% to $41.8m and six-month diluted EPS fell 10.0% to $0.72, so the year-to-date GAAP picture is down despite the strong quarter.
- Six-month DTT operating profit fell 23.6% to $75.4m.
- Inventories rose 40.7% over six months to $238.5m and accounts receivable rose 15.7% to $406.9m, while accounts payable fell 10.2%.
- Adjusted EPS of $1.10 excludes $28.5m of pre-tax items — acquired intangible amortization, restructuring, transaction expenses and acquisition adjustments — equal to $0.60 per share, which is essentially the entire GAAP result of $0.61.
- Goodwill rose 23.4% over six months to $1,436.0m and intangible assets rose 33.8% to $745.7m; together they are 60.7% of total assets against a total equity base of $1,265.1m.
- The full-year sales growth, segment EBITDA margin, adjusted EBITDA margin, adjusted tax rate, free cash flow conversion, and diluted share guidance were all left unchanged; the adjusted EPS raise is accompanied by a $5m reduction in guided non-operating expense.
- Redeemable noncontrolling interest more than doubled over six months to $20.7m, and noncontrolling interest in subsidiaries' earnings rose to $0.8m from $0.1m.
Key uncertainties
- The release does not quantify the CPI volume decline that it names as an offset, so the underlying performance of the Currency, Authentication and CPI businesses within SAT cannot be separated.
- DTT organic sales declined 3.4% while acquisitions added 30.1%; the release does not indicate whether the organic decline reflects end-market softness, comparison effects, or integration disruption.
- Antares Vision is described as being in its "first 90 days" of integration, and the $124.7m of acquired backlog inside DTT is disclosed, but no acquired revenue, margin, or purchase accounting detail is given for the quarter.
- Investment in equity affiliates and joint ventures fell 94.1% to $8.2m over six months while goodwill and intangibles rose $460.5m; the release does not describe the accounting transition, and six-month equity investment income of $4.8m against $0.1m in the quarter suggests a one-time item in Q1 that is not explained.
- The updated adjusted EPS range of $4.22-$4.42 narrows the spread to $0.20 from $0.30 while the midpoint rises $0.07; the release does not bridge the raise between operational performance and the $5m reduction in guided non-operating expense.
- Full-year adjusted EBITDA margin guidance of approximately 24% is unchanged against 23.4% delivered this quarter and a first-half that included a lower-margin acquisition, so the implied second-half margin is not stated.
- Adjusted free cash flow conversion of 124% in the quarter sits above the full-year ~90%-110% guide; the release does not indicate whether the quarter benefited from working capital timing.
- Restructuring and related costs of $3.3m in the quarter and $7.3m a year ago are not tied to a named program, scope, or completion date.
- The release states that adjusted EPS excludes "acquisition related expenses and restructuring actions" but does not disclose the total remaining expected charge for either.
- Tax adjustments of $(6.3)m reduce adjusted net income; the nature of the adjustment is not described, and the guided adjusted tax rate of approximately 21.5% is unchanged against an effective GAAP rate of 24.4% this quarter.
- Contract liabilities rose 81.8% over six months; how much is Antares Vision balance-sheet acquisition versus organic advance payments is not disclosed.
- Backlog is reported without a conversion period, so the 27.7% year-over-year increase cannot be mapped to a revenue timeframe.
- Order backlog at 31 December 2025 of $492.8m was below both 30 September 2025 and 30 June 2025; the release does not explain the trough, and the subsequent recovery includes acquired backlog.
- The 10:00 a.m. Eastern call on 6 August 2026 has not occurred and no Quartr transcript exists, so management's account of CPI volumes, DTT organic softness, and Antares Vision integration economics is not assessed at this stage.
Market context
- API Ninjas snapshot: CXT $52.37 on NYSE, volume 828,370, quote timestamped 2026-08-05T22:43:39Z, retrieved 2026-08-05T23:25:00Z. The release was published after the U.S. close on 2026-08-05; this is a single quote of unstated session basis captured after the close, not a measured reaction to the release.
Source limitations
- Every actual above comes from the Quartr Q2 2026 earnings release document (3667888). Quartr standardized financials for this event are not yet populated, and the quarterly report (3667889) and slide deck (3969461) attached to this event were not read for this preliminary.
- API Ninjas supplied no actual or difference fields for this event, so each beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter and is dated 2026-08-05 against the Quartr event date of 2026-08-06; the release itself published on 2026-08-05, and maximal mode accepts this one-day drift on an exact ticker match.
- This document's text extraction is materially degraded: the digit "6" and the letter "x" are systematically separated from the words and numbers containing them, so many figures arrive incomplete. Every figure reproduced above was reconstructed only where an arithmetic check makes the missing digit unambiguous, and each reconstruction was verified: the two segment sales figures sum to total net sales in all four periods; segment operating profits less corporate equal total operating profit in all four periods; operating profit less interest plus equity income and miscellaneous income equals income before income taxes in all four periods; income before taxes less the tax provision equals net income before noncontrolling interest, and less noncontrolling interest equals net income attributable to common shareholders, in all four periods; every per-share figure equals its net income divided by the stated share count; both non-GAAP reconciliations foot to the stated adjusted net income, adjusted EPS and adjusted EBITDA; the sales growth bridge components sum to the stated change in every column; the backlog segments sum to total backlog at all five dates; and the balance sheet current-asset, current-liability, and total-asset lines foot to their stated totals in both periods. Any figure that could not be resolved by such a check is omitted rather than estimated.
- For that reason the following are omitted: the quarter's individual cash flow reconciliation lines, capital expenditures, the acquisition payment line, total liabilities as a printed subtotal, and the six-month and prior-year adjusted EBITDA and adjusted EPS bridges beyond the two quarters shown.
- Adjusted net income, adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, organic sales, adjusted segment EBITDA margin, and adjusted free cash flow conversion are non-GAAP measures as defined by the company.
- Year-over-year percentage changes, margin-point changes, and the derived ratios in the bearish and uncertainty sections are calculated from the release's own figures; where the release prints a percentage, basis-point change or margin itself, the calculated value agrees.
- The company states that totals may not sum due to rounding.
- Balance sheet comparatives are to 31 December 2025, the fiscal year end, not to the prior-year quarter.
- Full-year guidance is stated by the company in qualitative form for several lines (approximately high single digits, low double digits, low 20's percent), and those descriptions are reproduced as written.
- The condensed consolidated statements in this release are unaudited.
- The effective GAAP tax rate of 24.4% cited under uncertainties is calculated as the $11.7m provision divided by $47.9m of income before income taxes; the company does not state it.
Source links
- Quartr Q2 2026 earnings release
- Quartr release highlights page
- Quartr release results summary and segment page
- Quartr release full year guidance page
- Quartr release statements of operations page
- Quartr release balance sheet page
- Quartr release cash flow page
- Quartr release backlog and sales growth page
- Quartr release non-GAAP reconciliation page