Crane | 10-Q: FY2025 Q2 Revenue Misses Estimate at USD 404.4 M

Revenue: As of FY2025 Q2, the actual value is USD 404.4 M, missing the estimate of USD 567.85 M.

EPS: As of FY2025 Q2, the actual value is USD 0.43.

EBIT: As of FY2025 Q2, the actual value is USD 47.9 M.

Crane Payment Innovations (CPI)

• Net Sales: Decreased by $13.0 million, or 5.8%, to $211.4 million in Q2 2025, driven by lower core sales of $16.3 million, or 7.3%, partially offset by favorable foreign currency translation of $3.3 million, or 1.5%.
  
• Operating Profit: Decreased by $12.4 million, or 20.2%, to $49.0 million in Q2 2025, primarily due to lower volumes and unfavorable mix, partially offset by productivity gains and cost-saving actions.
  
• Operating Margin: 23.2% in Q2 2025, down from 27.4% in Q2 2024.
  

Security and Authentication Technologies (SAT)

• Net Sales: Increased by $46.8 million, or 32.0%, to $193.0 million in Q2 2025, driven by acquisitions, core sales growth, and favorable foreign currency translation.
  
• Operating Profit: Decreased by $6.0 million, or 25.0%, to $18.0 million in Q2 2025, reflecting the dilutive impact of acquisitions and higher restructuring charges, partially offset by higher volumes and productivity gains.
  
• Operating Margin: 9.3% in Q2 2025, down from 16.4% in Q2 2024.
  

Cash Flow

• Operating Cash Flow: $43.7 million for the first six months of 2025, compared to $66.3 million in the same period of 2024, primarily due to lower net income.
  
• Investing Activities: Cash used was $412.6 million in the first six months of 2025, driven by the acquisition of DLR.
  
• Financing Activities: Cash provided was $344.8 million during the first six months of 2025, primarily due to proceeds from the Term Loan used to fund the DLR acquisition.
  

Outlook and Strategy

• Core Business Focus: The company plans to continue integrating recent acquisitions, such as De La Rue Authentication Solutions and OpSec Security, to enhance its portfolio in the Security and Authentication Technologies segment. The restructuring program is expected to be completed in 2025, with total costs ranging from $10 million to $15 million.
  
• Non-Core Business: No specific plans related to divestitures or emerging segments were mentioned in the report.