Crane NXT, Co. 10-K

Item 8. Financial Statements and Supplementary Data MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING The accompanying consolidated and combined financial statements of Crane NXT, Co. and subsidiaries have been prepared by management in conformity with accounting principles generally accepted in the United States of America and, in the judgment of management, present fairly and consistently the Company’s financial position and results of operations and cash flows. These statements by necessity include amounts that are based on management’s best estimates and judgments and give due consideration to materiality. Management is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control system was designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025. In making its assessment, management has utilized the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in its Internal Control—Integrated Framework, released in 2013. Based on our assessment we believe that, as of December 31, 2025, the Company’s internal control over financial reporting is effective based on those criteria. The Company completed the acquisition of De La Rue Authentication Solutions (“DRL”) on May 1, 2025. The Company has not yet fully incorporated DLR’s internal controls and procedures into the Company’s internal control over financial reporting and will be completed within the time provided by the applicable rules and regulations of the SEC for a recently acquired business. As such, management excluded DLR from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025. DLR constituted approximately 4% of the Company’s total assets, excluding the preliminary value of goodwill and purchased intangible assets, and approximately 5% of the Company’s total net sales as of and for the year ended December 31, 2025. Deloitte & Touche LLP, the independent registered public accounting firm that also audited the Company’s consolidated and combined financial statements included in this Annual Report on Form 10-K, audited the internal control over financial reporting as of December 31, 2025, and issued their related attestation report which is included herein. /s/ Aaron W. Saak Aaron W. Saak President and Chief Executive Officer (Principal Executive Officer) /s/ Christina Cristiano Christina Cristiano Senior Vice President and Chief Financial Officer (Principal Financial Officer) The Section 302 certifications of the Company’s Chief Executive Officer and its Chief Financial Officer have been filed as Exhibit 31 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. 37 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of Crane NXT, Co. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Crane NXT, Co. and subsidiaries (the "Company") as of December 31, 2025, and 2024, the related consolidated and combined statements of operations, comprehensive income, cash flows, and changes in equity, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 26, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Emphasis of Matter As described in Note 1 to the financial statements, the financial statements have been prepared on a stand-alone basis and prior to April 3, 2023 are derived from the consolidated financial statements and accounting records of Crane Holdings, Co. (“Holdings”). Prior to April 3, 2023, the financial statements include expense allocations for certain corporate functions and services historically provided by Holdings. These allocated costs could differ from the actual expense that would have been incurred had the Company operated as an independent, publicly traded company. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 38 Revenue Recognition – Over Time Basis — Refer to Note 1 to the financial statements Critical Audit Matter Description The Company recognizes revenue as they fulfill their performance obligations and transfer control of products to their customers. The Company has certain revenue contracts with the U.S. government. The clauses of those contracts stipulate that any amounts included in work-in-progress are the property of the U.S. government as they own any work-in progress as the contracted product is being built. The Company uses the cost-to-cost method of determining their progress, measuring progress by comparing costs incurred to date to the total estimated costs to provide the performance obligation. We identified revenue recognized over time on U.S. government contracts as a critical audit matter because of the judgments necessary for management to determine the estimated margin used to recognize over time revenue. This required a high degree of auditor judgment when performing audit procedures to audit management’s estimated margin at completion and evaluating the results of those procedures. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures performed related to the recognition of revenue recognized over time included the following, among others: • We tested the effectiveness of controls related to the revenue recognized over time, including management’s controls over costs incurred to date and estimates of margin at completion, as well as the accurate classification of contracts in the system during the order entry process. • We selected a sample of revenue transactions that were recognized over time and performed the following: • Evaluated whether the contracts were properly included in management’s calculation of over time revenue based on the terms and conditions of each contract, including whether continuous transfer of control to the customer occurred as progress was made toward fulfilling the performance obligation. • Evaluated the appropriateness and consistency of the methods of calculation and assumptions used by management to develop the margin at completion applied to determine the revenue recognized. • We tested the mathematical accuracy and completeness of management’s calculation of revenue recognized. • We observed the Company’s physical inventory counts to test the existence of inventory related to the U.S. government. • We evaluated management’s ability to estimate future costs and margins at completion accurately by comparing actual costs and margins at completion for similar contracts that were previously completed to management’s historical estimates for such contracts. /s/ Deloitte & Touche LLP Stamford, Connecticut February 26, 2026 We have served as the Company's auditor since 2022. 39 CRANE NXT, CO. AND SUBSIDIARIES CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS For the Years Ended December 31, (in millions, except per share data) 2025 2024 2023 Net sales $ 1,656.7 $ 1,486.8 $ 1,391.3 Operating costs and expenses: Cost of sales 952.9 821.7 737.2 Selling, general and administrative 440.3 386.2 366.8 Restructuring charges 16.8 10.1 0.5 Operating profit 246.7 268.8 286.8 Other income (expense): Interest income 1.0 1.6 1.1 Interest expense ( 60.3 ) ( 47.8 ) ( 48.1 ) Related party interest expense — — ( 2.5 ) Equity investment (loss) gain ( 11.5 ) 0.8 — Miscellaneous income, net 5.1 3.0 2.5 Total other expense, net ( 65.7 ) ( 42.4 ) ( 47.0 ) Income before income taxes 181.0 226.4 239.8 Provision for income taxes 35.9 42.3 51.5 Net income before allocation to noncontrolling interest $ 145.1 $ 184.1 $ 188.3 Less: Noncontrolling interest in subsidiaries’ earnings $ — $ — $ — Net income attributable to common shareholders $ 145.1 $ 184.1 $ 188.3 Earnings per share: Basic $ 2.53 $ 3.22 $ 3.31 Diluted $ 2.50 $ 3.19 $ 3.28 Average shares outstanding: Basic 57.4 57.1 56.8 Diluted 58.0 57.8 57.5 See Notes to Consolidated and Combined Financial Statements. 40 CRANE NXT, CO. AND SUBSIDIARIES CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME For the Years Ended December 31, (in millions) 2025 2024 2023 Net income before allocation to noncontrolling interest $ 145.1 $ 184.1 $ 188.3 Components of other comprehensive income (loss), net of tax Currency translation adjustment 72.2 ( 50.9 ) 18.1 Changes in pension and postretirement plan assets and benefit obligation, net of tax 0.5 ( 3.1 ) ( 5.2 ) Other comprehensive income (loss), net of tax 72.7 ( 54.0 ) 12.9 Comprehensive income before allocation to noncontrolling interest $ 217.8 $ 130.1 $ 201.2 Less: Noncontrolling interest in comprehensive income — — — Comprehensive income attributable to common shareholders $ 217.8 $ 130.1 $ 201.2 See Notes to Consolidated and Combined Financial Statements. 41 CRANE NXT, CO. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Balance as of December 31, (in millions, except shares and per share data) 2025 2024 Assets Current assets: Cash and cash equivalents $ 233.8 $ 165.8 Accounts receivable, net 351.8 265.9 U.S. and foreign taxes on income 12.7 8.6 Inventories, net 169.5 144.8 Other current assets 85.1 57.4 Total current assets 852.9 642.5 Property, plant and equipment, net 303.8 272.3 Long-term deferred tax assets 2.5 2.2 Investment in equity affiliates and joint ventures 139.4 1.3 Intangible assets, net 557.2 419.3 Goodwill 1,164.0 956.6 Other assets 96.6 92.3 Total assets $ 3,116.4 $ 2,386.5 Liabilities and equity Current liabilities: Short-term borrowings $ 135.1 $ 210.0 Accounts payable 132.3 116.6 Accrued liabilities 273.0 211.2 U.S. and foreign taxes on income 28.7 24.6 Total current liabilities 569.1 562.4 Long-term debt 1,004.4 540.6 Accrued pension and postretirement benefits 19.1 19.4 Long-term deferred tax liability 151.0 119.0 Other liabilities 116.0 80.2 Total liabilities 1,859.6 1,321.6 Commitments and contingencies (Note 13) Redeemable noncontrolling Interests 6.9 — Equity: Preferred shares, par value 0.01 ; 5,000,000 shares authorized — — Common shares, par value $ 1.00 ; 200,000,000 shares authorized; 72,441,647 shares issued; 57,441,541 shares and 57,197,147 shares outstanding as of December 31, 2025 and 2024, respectively 72.4 72.4 Capital surplus 1,716.5 1,719.9 Retained earnings 374.5 268.4 Accumulated other comprehensive loss ( 99.9 ) ( 172.6 ) Treasury stock; 15,000,106 and 15,244,500 treasury shares as of December 31, 2025 and 2024, respectively ( 810.5 ) ( 823.2 ) Total shareholders’ equity 1,253.0 1,064.9 Nonredeemable noncontrolling interests ( 3.1 ) — Total equity 1,249.9 1,064.9 Total liabilities, redeemable noncontrolling interests, and equity $ 3,116.4 $ 2,386.5 See Notes to Consolidated and Combined Financial Statements. 42 CRANE NXT, CO. AND SUBSIDIARIES CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS For the Years Ended December 31, (in millions) 2025 2024 2023 Operating activities: Net income before allocation to noncontrolling interest $ 145.1 $ 184.1 $ 188.3 Adjustments to reconcile net income to net cash flows provided by operating activities: Loss (income) from equity investments 11.5 ( 0.8 ) — Depreciation and amortization 106.6 86.8 77.6 Stock-based compensation expense 12.7 10.6 10.3 (Gain) loss on forward contracts ( 4.7 ) 3.0 — Defined benefit plans and postretirement credit ( 0.8 ) ( 2.1 ) ( 1.1 ) Deferred income taxes ( 14.8 ) ( 17.6 ) 7.6 Cash used for operating working capital ( 17.0 ) ( 50.6 ) — Other 2.9 0.7 ( 6.4 ) Total provided by operating activities $ 241.5 $ 214.1 $ 276.3 Investing activities: Payment for acquisitions, net of cash acquired $ ( 391.1 ) $ ( 269.9 ) $ — Purchase of investments 1 ( 116.5 ) — — Capital expenditures ( 43.2 ) ( 45.4 ) ( 31.1 ) Settlement of forward contracts 1.7 ( 2.7 ) — Proceeds from disposition of assets 0.1 — — Total used for investing activities $ ( 549.0 ) $ ( 318.0 ) $ ( 31.1 ) Financing activities: Dividends paid $ ( 39.0 ) $ ( 36.6 ) $ ( 23.7 ) Proceeds from share subscriptions 21.4 — — Proceeds from stock options exercised 2.6 3.3 5.0 Payment of tax withholding on equity awards vested ( 6.2 ) ( 6.9 ) ( 0.6 ) Debt issuance costs ( 22.3 ) ( 2.7 ) ( 5.7 ) Repayment of long-term debt — — ( 300.0 ) Proceeds from revolving credit facility 406.5 448.5 20.0 Repayment of revolving credit facility ( 490.5 ) ( 238.5 ) ( 20.0 ) Proceeds from term loans 532.0 — 350.0 Repayment of term loan ( 40.9 ) ( 105.0 ) ( 245.0 ) Net transfers to Crane — — ( 32.5 ) Total provided by (used for) financing activities $ 363.6 $ 62.1 $ ( 252.5 ) Effect of exchange rates on cash, cash equivalents and restricted cash 16.7 ( 12.0 ) 3.8 Increase (decrease) in cash, cash equivalents and restricted cash 72.8 ( 53.8 ) ( 3.5 ) Cash, cash equivalents and restricted cash at beginning of period 173.4 227.2 230.7 Cash, cash equivalents and restricted cash at end of period $ 246.2 $ 173.4 $ 227.2 See Notes to Consolidated and Combined Financial Statements. 43 CRANE NXT, CO. AND SUBSIDIARIES CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2025 2024 2023 Detail of cash (used for) provided by operating working capital Accounts receivable $ ( 46.8 ) $ ( 44.4 ) $ ( 6.3 ) Inventories 5.2 21.3 ( 1.0 ) Other current assets ( 16.4 ) ( 9.0 ) — Accounts payable 5.9 5.7 ( 6.8 ) Accrued liabilities 37.0 ( 28.4 ) ( 2.5 ) U.S. and foreign taxes on income ( 1.9 ) 4.2 16.6 Total $ ( 17.0 ) $ ( 50.6 ) $ — Supplemental disclosure of cash flow information: Interest paid $ 55.6 $ 44.1 $ 45.1 Income taxes paid, net $ 50.9 $ 63.8 $ 46.0 Unpaid capital expenditures $ 2.5 $ 7.2 $ 7.1 1 Non-cash investing activities (see Note 1) $ 21.3 $ — $ — See Notes to Consolidated and Combined Financial Statements. 44 CRANE NXT, CO. AND SUBSIDIARIES CONSOLIDATED AND COMBINED STATEMENTS OF CHANGES IN EQUITY (in millions, except share data) Common Shares Issued at Par Value Capital Surplus Retained Earnings Accumulated Other Comprehen- sive Loss Treasury Stock Crane Net Investment Total Share-holders’ Equity Non-controlling Interest Total Equity BALANCE DECEMBER 31, 2022 $ — $ — $ — $ ( 131.5 ) $ — $ 915.3 $ 783.8 $ — $ 783.8 Net income — — 144.6 — — 43.7 188.3 — 188.3 Cash dividends ($ 0.42 per share) — — ( 23.7 ) — — — ( 23.7 ) — ( 23.7 ) Dividend from Crane — — — — — 275.0 275.0 — 275.0 Net Transfers to Crane — — — — — ( 285.2 ) ( 285.2 ) — ( 285.2 ) Reclassification of Crane Net Investment to Common Stock, Treasury Stock and Capital Surplus 72.4 1,726.8 — — ( 848.1 ) ( 951.1 ) — — — Exercise of stock options, net of shares reacquired of 158,132 shares — — — — 5.0 — 5.0 — 5.0 Stock-based compensation — 6.5 — — — 2.3 8.8 — 8.8 Stock-based compensation reclassification a — ( 0.3 ) — — — — ( 0.3 ) — ( 0.3 ) Impact from settlement of share-based awards, net of shares acquired — ( 4.9 ) — — 4.3 — ( 0.6 ) — ( 0.6 ) Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — ( 5.2 ) — — ( 5.2 ) — ( 5.2 ) Currency translation adjustment — — — 18.1 — — 18.1 — 18.1 BALANCE DECEMBER 31, 2023 $ 72.4 $ 1,728.1 $ 120.9 $ ( 118.6 ) $ ( 838.8 ) $ — $ 964.0 $ — $ 964.0 Net income — — 184.1 — — — 184.1 — 184.1 Cash dividends ($ 0.64 per share) — — ( 36.6 ) — — — ( 36.6 ) — ( 36.6 ) Exercise of stock options, net of shares reacquired of 118,896 shares — — — — 3.3 — 3.3 — 3.3 Stock-based compensation — 9.8 — — — — 9.8 — 9.8 Impact from settlement of share-based awards, net of shares acquired — ( 18.0 ) — — 12.3 — ( 5.7 ) — ( 5.7 ) Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — ( 3.1 ) — — ( 3.1 ) — ( 3.1 ) Currency translation adjustment — — — ( 50.9 ) — — ( 50.9 ) — ( 50.9 ) BALANCE DECEMBER 31, 2024 $ 72.4 $ 1,719.9 $ 268.4 $ ( 172.6 ) $ ( 823.2 ) $ — $ 1,064.9 $ — $ 1,064.9 Noncontrolling interest of acquired entity — — — — — — — ( 3.6 ) ( 3.6 ) Net income — — 145.1 — — — 145.1 — 145.1 Cash dividends ($ 0.68 per share) — — ( 39.0 ) — — — ( 39.0 ) — ( 39.0 ) Redeemable noncontrolling interest adjustment ( 0.5 ) — — — — ( 0.5 ) 0.5 — Exercise of stock options, net of shares reacquired of 86,634 shares — — — — 2.6 — 2.6 — 2.6 Stock-based compensation — 12.2 — — — — 12.2 — 12.2 Impact from settlement of share-based awards, net of shares acquired — ( 15.1 ) — — 10.1 — ( 5.0 ) — ( 5.0 ) Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — 0.5 — — 0.5 — 0.5 Currency translation adjustment — — — 72.2 — — 72.2 — 72.2 BALANCE DECEMBER 31, 2025 $ 72.4 $ 1,716.5 $ 374.5 $ ( 99.9 ) $ ( 810.5 ) $ — $ 1,253.0 $ ( 3.1 ) $ 1,249.9 (a) Reclassification of stock-based compensation due to modification resulting from equity award conversions. See Note 8, “Stock-Based Compensation Plans” for additional information. See Notes to Consolidated and Combined Financial Statements. 45 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Note 1 – Nature of Operations and Significant Accounting Policies Nature of Operations Crane NXT, Co. is a leading provider of trusted technology solutions to secure, detect, and authenticate our customers’ most valuable assets. We are comprised of two reporting segments: Crane Payment Innovations (“CPI”) and Security and Authentication Technologies (“SAT”). Our primary end markets include governments, brands, financial insti tutions and a wide range of consumer related end markets including convenience merchandising (vending), retail and gaming. See Note 4, “Segment Results” for the relative size of these segments in relation to the total company (both net sales and total assets). References herein to “Crane NXT,” “we,” “us” and “our” refer to Crane NXT, Co. and its subsidiaries, including when Crane NXT, Co. was named “Crane Holdings, Co.” unless the context implies otherwise. References to the “Business” refer to our business, including prior to the Separation (as defined below) when it was a business of Crane Holdings, Co. References herein to “Holdings” refer to Crane Holdings, Co. and its subsidiaries prior to the consummation of the Separation unless the context implies otherwise. Separation On April 3, 2023, Holdings was separated (the “Separation”) into two independent, publicly-traded companies, Crane NXT, Co. and Crane Company (“SpinCo”), through a pro-rata distribution (the “Distribution”) of all the issued and outstanding common stock of SpinCo to the stockholders of Holdings. As part of the Separation, the Aerospace & Electronics, Process Flow Technologies and Engineered Materials businesses of Holdings were spun off to SpinCo. Also, as part of the Separation, Holdings retained the Payment and Merchandising Technologies business and was renamed “Crane NXT, Co.” on April 3, 2023. Following the consummation of the Separation, our common stock is listed under the symbol “CXT” on the New York Stock Exchange. Due to SpinCo’s larger operations, greater tangible assets, greater fair value and greater net sales, in each case, relative to ours, among other factors, SpinCo was considered to be the “accounting spinnor” and therefore is the “accounting successor” to Holdings for accounting purposes, notwithstanding the legal form of the Separation. As such, our financial statements for periods prior to the Separation are comprised of combined carve-out financial statements representing only our operations, assets, liabilities and equity on a stand-alone basis derived from the consolidated financial statements and accounting records of Holdings. The primary source of the cash on hand as of the date of Separation was due to a transfer from Holdings to us as part of the Separation. Separation Agreements On April 3, 2023, we entered into definitive agreements with SpinCo in connection with the Separation. The agreements set forth the terms and conditions of the Separation and provide a framework for our relationship with SpinCo following the Separation, including the allocation between us and SpinCo of our and SpinCo’s assets, liabilities and obligations attributable to periods prior to, at and after the Separation. These agreements include the Separation and Distribution Agreement, which contains certain key provisions related to the Separation, as well as a Transition Services Agreement, a Tax Matters Agreement, an Employee Matters Agreement and an Intellectual Property Matters Agreement. As of December 31, 2024, the term of the Transition Services Agreement has expired. Significant Accounting Policies Accounting Principles. Our Consolidated and Combined Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and, therefore, reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the years presented. All such adjustments are of a normal recurring nature. The Consolidated and Combined Financial Statements include the accounts of Crane NXT, Co. and our subsidiaries. Basis of presentation. The Business' financial statements for periods prior to the Separation are prepared on a "carve-out" basis, as described below. Prior to the Separation, the Business operated as Holdings’ Payment & Merchandising Technologies (“P&MT”) segment; consequently, stand-alone financial statements for periods prior to the Separation were not prepared for the Business. 46 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS The Consolidated and Combined Financial Statements of Operations include all revenues and costs directly attributable to the Business, including costs for facilities, functions and services used by the Business. Prior to the Separation, costs for certain functions and services performed by centralized Holdings organizations were directly charged to the Business based on specific identification when possible or reasonable allocation methods such as net sales, headcount, usage or other allocation methods. The results of operations include allocations of costs for administrative functions and services performed on behalf of the Business by centralized groups within Holdings (see Note 2, “Related Parties” for a description of the allocation methodologies). All charges and allocations for facilities, functions and services performed by Holdings have been deemed settled in cash by the Business to Holdings in the period in which the cost was recorded in the Consolidated and Combined Statements of Operations. As more fully described in Note 10, “Income Taxes”, current and deferred income taxes have been determined based on the stand-alone results of the Business. However, because the Business filed group tax returns as part of Holdings in certain jurisdictions, the Business’ actual tax balances may differ from those reported. The Business’ portion of income taxes for certain jurisdictions is deemed to have been settled in the period the related tax expense was recorded. Prior to the Separation, Holdings used a centralized approach to cash management and financing its operations. Accordingly, none of the cash of Holdings has been allocated to the Business in the Consolidated and Combined Financial Statements. However, cash balances primarily associated with certain of our foreign entities that did not participate in Holdings’ cash management program have been included in the Consolidated and Combined Financial Statements. Transactions between Holdings and the Business were deemed to have been settled immediately through “Crane Net Investment.” The net effect of the deemed settled transactions is reflected in the Consolidated and Combined Statements of Cash Flows as “Net transfers to Crane” within financing activities. All intercompany accounts and transactions within the Business were eliminated in the preparation of the Consolidated and Combined Financial Statements. The Consolidated and Combined Financial Statements of the Business include assets and liabilities that have been determined to be specifically identifiable or otherwise attributable to the Business. All allocations and estimates in the Consolidated and Combined Financial Statements are based on assumptions that management believes are reasonable. However, for the periods prior to the Separation, the Consolidated and Combined Financial Statements included herein may not be indicative of the financial position, results of operations and cash flows of the Business in the future, or if the Business had been a separate, stand-alone entity during the periods presented. Due to rounding, numbers presented throughout this report may not add up precisely to totals we provide, and percentages may not precisely reflect the absolute figures. Use of Estimates. Our accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results may differ from those estimated. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the financial statements in the period in which they are determined to be necessary. Estimates are used when accounting for such items as asset valuations, allowance for doubtful accounts, depreciation and amortization, impairment assessments, reserve for excess and obsolete inventory, reserve for warranty provision, restructuring provisions, employee benefits, revenue recognition, taxes and contingencies. Currency Translation. Assets and liabilities of subsidiaries that prepare financial statements in currencies other than the U.S. dollar are translated at the rate of exchange in effect on the balance sheet date; results of operations are translated at the monthly average rates of exchange prevailing during the year. The related translation adjustments are included in accumulated other comprehensive loss in a separate component of equity. Non-cash Investing Activities. Total consideration for the Company’s acquisition of a 32.3 % equity interest in Antares Vision was $ 137.8 million, consisting of $ 116.5 million in cash and $ 21.3 million of non‑cash consideration. The non‑cash consideration included $ 6.9 million of ordinary shares issued to Regolo S.p.A. at closing of the first phase and a $ 14.4 million obligation to issue additional ordinary shares to Regolo S.p.A. upon completion of the mandatory tender offer. See Note 3, “Acquisitions” for further details. The $ 21.3 million non‑cash component represents a non‑cash investing activity and is excluded from the Consolidated Statements of Cash Flows. 47 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Revenue Recognition. In accordance with Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers,” we recognize revenue when control of the promised goods or services in a contract transfers to the customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We account for a contract when both parties have approved and committed to the terms, each party’s rights and payment obligations under the contract are identifiable, the contract has commercial substance, and it is probable that we will collect substantially all of the consideration. When shipping and handling activities are performed after the customer obtains control of product, we elect to account for shipping and handling as activities to fulfill the promise to transfer the product. In determining the transaction price of a contract, we exercise judgment to determine the total transaction price when it includes estimates of variable consideration, such as rebates and milestone payments. We generally estimate variable consideration using the expected value method and consider all available information (historical, current, and forecasted) in estimating these amounts. Variable consideration is only included in the transaction price to the extent that it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. We elect to exclude from the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer. We primarily generate revenue through the manufacture and sale of technology solutions including advanced detection and sensing systems, software to authenticate and manage transactions, micro-optics materials technology, and anti-counterfeiting technology including micro-optics and micro lithography. Each product within a contract generally represents a separate performance obligation, as we do not provide a significant service of integrating or installing the products, the products do not customize each other, and the products can function independently of each other. Control of products generally transfers to the customer at a point in time, as the customer does not control the products as they are manufactured. We exercise judgment and consider the timing of right to payment, transfer of risk and rewards, transfer of title, transfer of physical possession, and customer acceptance when determining when control transfers to the customer. As a result, revenue from the sale of products is generally recognized at a point in time - either upon shipment or delivery - based on the specific shipping terms in the contract. When products are customized or products are sold directly to the U.S. government and certain foreign governments, revenue is recognized over time because control is transferred continuously to customers, as the contract progresses. We exercise judgment to determine whether the products have an alternative use to us. When an alternative use does not exist for these products and we are entitled to payment for performance completed to date which includes a reasonable profit margin, revenue is recognized over time. When a contract contains clauses indicating that the customer owns any work-in-progress as the contracted product is being built, revenue is recognized over time. The measure of progress applied by us is the cost-to-cost method as this provides the most faithful depiction of the pattern of transfer of control. Under this method, we measure progress by comparing costs incurred to date to the total estimated costs to provide the performance obligation. This method effectively reflects our progress toward completion, as this methodology includes any work-in-process amounts as part of the measure of progress. Costs incurred represent work performed, which corresponds with, and thereby depicts, the transfer of control to the customer. Total revenue recognized and cost estimates are updated monthly. In 2025, the Company recognized approximately $ 225 million in revenue over time related to products. When there are multiple performance obligations in a single contract, the total transaction price is allocated to each performance obligation based on their relative standalone selling prices. We maximize the use of observable data inputs and consider all information (including market conditions, segment-specific factors, and information about the customer or class of customer) that is reasonably available. The standalone selling price for our products and services is generally determined using an observable list price, which differs by class of customer. Revenue recognized from performance obligations satisfied in previous periods (for example, due to changes in the transaction price or estimates), was not material in any period. Payment for most products is due within a limited time period after shipment or delivery, typically within 30-90 calendar days of the respective invoice dates. Customers generally do not make large upfront payments. Any advanced payments received do not provide us with a significant benefit of financing, as the payments are meant to secure materials used to fulfill the contract, as opposed to providing us with a significant financing benefit. When an unconditional right to consideration exists, we record these amounts as receivables. When amounts are dependent on factors other than the passage of time for payment from a customer to become due, we record a contract asset. Contract assets represent unbilled amounts that typically arise from contracts for customized products or contracts for products sold directly to the U.S. government. Contract assets are assessed for impairment and recorded at their net realizable value. Contract liabilities represent advance payments from customers. Revenue related to contract liabilities is recognized when control is transferred to the customer. 48 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS We pay sales commissions related to certain contracts, which qualify as incremental costs of obtaining a contract. However, the sales commissions generally relate to contracts for products or services satisfied at a point in time or over a period of time less than one year. As a result, we apply the practical expedient that allows an entity to recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would have been recognized is one year or less. See Note 5, “Revenue” for further details. Cost of Sales. Cost of sales includes the costs of inventory sold and the related purchase and distribution costs. In addition to material, labor and direct overhead and inventoried cost, cost of sales includes allocations of other expenses that are part of the production process, such as inbound freight charges, purchasing and receiving costs, inspection costs, warehousing costs, amortization of production related intangible assets and depreciation expense. We also include costs directly associated with products sold, such as warranty provisions. We accrue warranty liabilities when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Selling, General and Administrative Expenses. Selling, general and administrative expenses are recognized as incurred, or as allocated based on methodologies further discussed in Note 2, “Related Parties.” Such expenses include the costs of promoting and selling products and include such items as compensation, advertising, sales commissions and travel. Also included are costs related to compensation for other operating activities such as executive office administrative and engineering functions, as well as general operating expenses such as office supplies, non-income taxes, insurance and office equipment rentals. Income Taxes. We account for income taxes in accordance with ASC Topic 740 “Income Taxes” (“ASC 740”) which requires an asset and liability approach for the financial accounting and reporting of income taxes. Under this method, deferred income taxes are recognized for the expected future tax consequences of differences between the tax bases of assets and liabilities and their reported amounts in the financial statements. These balances are measured using the enacted tax rates expected to apply in the year(s) in which these temporary differences are expected to reverse. The effect of a change in tax rates on deferred income taxes is recognized in income in the period when the change is enacted. Based on consideration of all available evidence regarding their utilization, we record net deferred tax assets to the extent that it is more likely than not that they will be realized. Where, based on the weight of all available evidence, it is more likely than not that some amount of a deferred tax asset will not be realized, we establish a valuation allowance for the amount that, in management's judgment, is sufficient to reduce the deferred tax asset to an amount that is more likely than not to be realized. The evidence we consider in reaching such conclusions includes, but is not limited to, (1) future reversals of existing taxable temporary differences, (2) future taxable income exclusive of reversing taxable temporary differences, (3) taxable income in prior carryback year(s) if carryback is permitted under the tax law, (4) cumulative losses in recent years, (5) a history of tax losses or credit carryforwards expiring unused, (6) a carryback or carryforward period that is so brief it limits realization of tax benefits, and (7) a strong earnings history exclusive of the loss that created the carryforward and support showing that the loss is an aberration rather than a continuing condition. We account for unrecognized tax benefits in accordance with ASC 740, which prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation, based solely on the technical merits of the position. The tax benefit recognized is the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. We recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes line of our Consolidated and Combined Statements of Operations, while accrued interest and penalties are included within the related tax liability line of our Consolidated Balance Sheets. Income taxes as presented herein, for periods prior to the Separation, attribute current and deferred income taxes of Holdings to the Business’ stand-alone financial statements in a manner that is systematic, rational and consistent with the asset and liability method prescribed by ASC 740. Accordingly, the Business’ income tax provision was prepared following the separate return method. The separate return method applies ASC 740 to the stand-alone financial statements of each member of the consolidated group as if the group members were separate taxpayers. As a result, actual transactions included in the consolidated financial statements of Holdings may not be included in the separate Consolidated and Combined Financial Statements of the Business. Similarly, the tax treatment of certain items reflected in the Consolidated and Combined Financial Statements of the Business may not be reflected in the consolidated financial statements and tax returns of Holdings. Therefore, such items as net operating losses, credit carry forwards and valuation allowances may exist in the stand-alone financial statements that may or may not exist in Holdings’ consolidated financial statements. As such, the income taxes of the Business as presented in the Consolidated and Combined Financial Statements may not be indicative of the income taxes that the Business will generate in the future. 49 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Obligations for income taxes in jurisdictions where the Business files a combined tax return with Holdings were deemed settled with Holdings and are reflected within “Net transfers to Crane” as a financing activity in the Consolidated and Combined Statements of Cash Flows. Research and Development. We conduct research and development activities for the purpose of developing new products and enhancing existing products. Research and development costs are expensed as incurred. See Note 6, “Research and Development” for further details. Capitalized Software Development Costs. We sell and market software that is integral to the functionality we provide to customers. Internal and external costs incurred for developing this software are charged to research and development expense until technological feasibility has been established, at which point the development costs are capitalized. Capitalized software development costs primarily include payroll, benefits and other headcount related expenses. Once the services are available for general release to customers, no additional costs are capitalized. Capitalized software development costs, net of impairment and accumulated amortization, were $ 7.0 million and $ 3.7 million as of December 31, 2025, and December 31, 2024, respectively, and are included in “Intangible assets, net” in the Consolidated Balance Sheets. Stock-Based Compensation. We provide long-term incentive compensation through stock options, restricted share units, performance-based restricted share units and deferred stock units. The Company recognizes stock-based compensation expense at the grant date based on the fair value of the award and recognizes the fair value on a straight-line basis over the vesting period, or as performance goals are achieved. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options, with model assumptions including dividend yield, expected volatility, the risk-free interest rate and the expected life of the awards. See Note 8, “Stock-Based Compensation Plans” for further details. Earnings Per Share. Our basic earnings per share calculations are based on the weighted average number of common shares outstanding during the year. Potentially dilutive securities include outstanding stock options, restricted share units, deferred stock units and performance-based restricted share units that were issued to Crane NXT and SpinCo employees and directors. The effect of potentially dilutive securities is reflected in diluted earnings per common share by application of the treasury method. Diluted earnings per share gives effect to all potentially dilutive common shares outstanding during the year. The weighted average number of common shares outstanding for the year ended December 31, 2025, 2024 and 2023, were based on the weighted average number of common shares after the Separation. (in millions, except per share data) For the year ended December 31, 2025 2024 2023 Net income attributable to common shareholders $ 145.1 $ 184.1 $ 188.3 Average basic shares outstanding 57.4 57.1 56.8 Effect of dilutive share-based awards 0.6 0.7 0.7 Average diluted shares outstanding 58.0 57.8 57.5 Basic earnings per share $ 2.53 $ 3.22 $ 3.31 Diluted earnings per share $ 2.50 $ 3.19 $ 3.28 The computation of diluted earnings per share excludes the effect of the potential exercise of stock options when the average market price of the common stock is lower than the exercise price of the related stock options. During 2025, 2024 and 2023, the number of stock options excluded from the computation was 0.3 million, 0.2 million and 0.4 million, respectively. 50 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Business Combinations. Acquisitions are accounted for in accordance with ASC Topic 805, “Business Combinations” (“ASC 805”). Accordingly, we make an initial allocation of the purchase price at the date of acquisition based upon our understanding of the fair value of the acquired assets and assumed liabilities. We obtain this information during due diligence and through other sources. In the months after closing, as we obtain additional information about these assets and liabilities, including through tangible and intangible asset appraisals, we refine estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment to the purchase price allocation. We will make appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required. To allocate the consideration transferred for our acquisitions, the fair values of all identifiable assets and liabilities must be established. For accounting and financial reporting purposes, fair value is defined under ASC Topic 820, “Fair Value Measurement and Disclosure” as the price that would be received upon sale of an asset or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. Use of different estimates and judgments could yield different results. See Note 3, “Acquisitions” for further details. Equity Method Investments. The Company accounts for investments in joint ventures or other entities over which it has significant influence but does not have voting control using the equity method. Investments in entities over which the Company does not have significant influence or control are not material and are carried at cost. Fair Value Measurements. Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are to be considered from the perspective of a market participant that holds the asset or owes the liability. The standards also establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standards describe three levels of inputs that may be used to measure fair value: Level 1 : Quoted prices in active markets for identical or similar assets and liabilities. Level 2 : Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities. Level 2 assets and liabilities include over-the-counter derivatives, principally forward foreign exchange contracts, whose value is determined using pricing models with inputs that are generally based on published foreign exchange rates and exchange traded prices, adjusted for other specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data. Level 3 : Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Valuation Technique The carrying value of our financial assets and liabilities, including cash and cash equivalents, accounts receivable and accounts payable approximate fair value, without being discounted, due to the short periods during which these amounts are outstanding. We are exposed to certain risks related to our ongoing business operations, including market risks related to fluctuation in currency exchange. We use foreign exchange contracts to manage the risk of certain cross-currency business relationships to minimize the impact of currency exchange fluctuations on our earnings and cash flows. We do not hold or issue derivative financial instruments for trading or speculative purposes. We have foreign exchange contracts not designated as hedging instruments that are measured at fair value using internal models based on observable market inputs such as forward rates and interest rates. Based on these inputs, the derivatives are classified within Level 2 of the valuation hierarchy. As a result of the Separation, all outstanding stock-based compensation awards of Holdings were exchanged for similarly valued stock-based compensation awards of either SpinCo, Crane NXT or both. The modification of the performance-based restricted share units resulted in a liability recorded upon Separation for awards that will be settled in SpinCo’s shares. The amount of the liability is measured at fair value using Level 1 inputs such as the quoted market price of the underlying company’s stock. Long-term debt rates currently available to us for debt with similar terms and remaining maturities are used to estimate the fair value for debt issues that are not quoted on an exchange. The estimated fair value of long-term debt is measured using Level 2 inputs. 51 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS As a result of the OpSec acquisition, we assumed a contingent liability related to a prior OpSec acquisition. The amount of the liability is measured at fair value using Level 3 inputs as the fair value is determined by estimating the net present value of the expected cash flows based on the probability of the achievement of the contingent revenue targets. See Note 3, “Acquisitions” for further details. See Note 15, “Fair Value Measurements” for further details. Net Investment Hedges. In December 2025, the Company designated its euro‑denominated Term Loan B debt as a net investment hedge of certain foreign operations. The objective of this designation is to mitigate the impact of foreign currency exchange rate fluctuations on the Company’s net investments in those subsidiaries. For hedges that qualify for net investment hedge accounting, the effective portion of changes in the carrying amount of the designated debt is recorded in Currency Translation Adjustment (“CTA”), a component of Accumulated Other Comprehensive Income (“AOCI”), until the related net investment is sold or substantially liquidated. We recorded $ 0.2 million gain in CTA for the year ended December 31, 2025. Cash and Cash Equivalents. Cash and cash equivalents include highly liquid investments with original maturities of three months or less that are readily convertible to cash and are not subject to significant risk from fluctuations in interest rates. As a result, the carrying amount of cash and cash equivalents approximates fair value. Prior to the Separation, the Business participated in Holdings’ centralized cash management and financing programs (see Note 2, “Related Parties” for additional information). The cash reflected on the Consolidated Balance Sheets represents cash on hand at certain foreign entities that did not participate in the centralized cash management program and are specifically identifiable to the Business. Restricted Cash. Cash that is legally restricted as to its withdrawal or usage is classified as restricted cash. For the years ended December 31, 2025 and 2024, restricted cash is primarily related to guarantees on future obligations. Current restricted cash, included within “Other current assets” in our Consolidated Balance Sheets, was $ 5.3 million and 0.8 million as of December 31, 2025, and 2024, respectively. Non-current restricted cash, included within “Other assets” in our Consolidated Balance Sheets, was $ 7.2 million and 6.8 million as of December 31, 2025, and 2024, respectively. Accounts Receivable, Net. Accounts receivable are carried at net realizable value. The allowance for credit losses was $ 8.9 million and $ 7.7 million as of December 31, 2025, and 2024, respectively. The allowance for credit losses activity was no t material to our financial results for the years ended December 31, 2025, and 2024. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers, the nature of our customers, their credit worthiness, their relatively small account balances within our customer base and their dispersion across different businesses. We periodically evaluate the financial strength of our customers and believe that our credit risk exposure is limited. Inventories, net. Inventories consist of the following: (in millions) December 31, 2025 2024 Finished goods $ 26.6 $ 19.2 Finished parts and subassemblies 23.8 24.3 Work in process 29.4 14.3 Raw materials 89.7 87.0 Total inventories, net $ 169.5 $ 144.8 Inventories, net include the costs of material, labor and overhead and are stated at the lower of cost or net realizable value. The cost for certain inventories in the U.S. is determined using the last-in, first-out (“LIFO”) method and the first-in, first-out (“FIFO”) method is primarily used for all other inventories. If inventories that were valued using the LIFO method had been valued under the FIFO method, they would have been higher by $ 11.0 million and $ 12.2 million as of December 31, 2025, and 2024, respectively. The liquidation of LIFO inventory did not have a significant impact on our financial results for the years ended December 31, 2025, and 2024. The reserve for excess and obsolete inventory was $ 25.3 million and $ 31.5 million as of December 31, 2025, and 2024, respectively. The reserve for excess and obsolete inventory activity was no t material to our financial results for the years ended December 31, 2025, and 2024. 52 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Valuation of Long-Lived Assets. We review our long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability is based upon projections of anticipated future undiscounted cash flows associated with the use and eventual disposal of the long-lived asset (or asset group), as well as specific appraisal in certain instances. Reviews occur at the lowest level for which identifiable cash flows are largely independent of cash flows associated with other long-lived assets or asset groups. If the future undiscounted cash flows are less than the carrying value, then the long-lived asset is considered impaired, and a loss is recognized based on the amount by which the carrying amount exceeds the estimated fair value. For the years ended December 31, 2025, 2024 and 2023, there were no significant impairment charges identified. Property, Plant and Equipment, net. Property, plant and equipment, net consists of the following: (in millions) December 31, 2025 2024 Land $ 35.1 $ 33.6 Buildings and improvements 146.4 121.4 Machinery and equipment 507.4 444.8 Gross property, plant and equipment 688.9 599.8 Less: accumulated depreciation 385.1 327.5 Property, plant and equipment, net $ 303.8 $ 272.3 Property, plant and equipment is stated at cost and depreciation is calculated by the straight-line method over the estimated useful lives of the respective assets, which range from 10 to 25 years for buildings and improvements and 3 to 10 years for machinery and equipment. Depreciation expense was $ 44.9 million, $ 37.7 million and $ 39.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. Goodwill and Other Intangible Assets. Our business acquisitions have typically resulted in the recognition of goodwill and other intangible assets. We follow the provisions under ASC Topic 350, “Intangibles – Goodwill and Other” (“ASC 350”) and assess the carrying value of goodwill annually during the fourth quarter. Impairment testing takes place more often than annually if events or circumstances indicate a change in status that would indicate a potential impairment. We determine the fair value of each reporting unit for our goodwill impairment testing. A reporting unit is an operating segment unless discrete financial information is prepared and reviewed by segment management for businesses one level below that operating segment (a “component”), in which case the component would be the reporting unit. As of December 31, 2025, we had three reporting units. The fair value of each reporting unit is determined using a combination of the income approach, using discounted cash flows, and the market approach using comparable public company multiples. Assumptions are reviewed to ensure that the income approach and the market approach do not result in significantly different fair value calculations. Based on the results of our most recent annual impairment test in the fourth quarter of 2025, the reporting unit fair values were higher than their carrying values. No impairment charges have been required during 2025, 2024 and 2023. Furthermore, to evaluate the sensitivity of the fair value calculations on the goodwill impairment test, we applied a hypothetical, reasonably possible 10% decrease to the fair values of each reporting unit. The effects of this hypothetical 10% decrease would still result in a fair value calculation significantly exceeding our carrying value for each of our reporting units, except for the Crane Authentication reporting unit, which is composed OpSec and De La Rue, acquired in 2024 and 2025, respectively. Goodwill associated with Crane Authentication represents 27.9% of the Company’s total goodwill. While we believe we have made reasonable estimates and assumptions to calculate the fair value of all our reporting units, it is possible a material change could occur. If actual results are not consistent with management’s estimates and assumptions, or if factors outside management control, such as interest rates or other market conditions change, goodwill and other intangible assets may then be determined to be impaired and a charge would need to be taken against net earnings. The determination of discounted cash flows is based on the businesses’ strategic plans and long-range planning forecasts, which change from year to year. The revenue growth rates included in the forecasts represent best estimates based on current and forecasted market conditions. Profit margin assumptions are projected by each reporting unit based on the current cost structure and anticipated net cost increases/reductions. There are inherent uncertainties related to these assumptions, including changes in factors outside management control such as market conditions, and management judgment is necessary in applying them to the analysis of impairment. The estimated cost of capital used in the discounted cash flow analysis varies for each reporting unit and ranged between 11.0 % and 12.0 % (a weighted average of 11.5 %), at our most recent annual goodwill impairment assessment. 53 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Changes to goodwill are as follows: (in millions) Crane Payment Innovations Security and Authentication Technologies Total Balance as of December 31, 2023 $ 626.7 $ 214.5 $ 841.2 Additions (see Note 3) — 133.7 $ 133.7 Currency translation ( 17.6 ) ( 0.7 ) ( 18.3 ) Balance as of December 31, 2024 $ 609.1 $ 347.5 $ 956.6 Additions (see Note 3) — 188.5 $ 188.5 Currency translation and other 15.1 3.8 18.9 Balance as of December 31, 2025 $ 624.2 $ 539.8 $ 1,164.0 Intangibles with indefinite useful lives, consist of trademarks and tradenames. If the carrying amount of an indefinite lived intangible asset exceeds its fair value, the intangible asset is written down to its fair value. Fair value is calculated using the relief from royalty method. We amortize the cost of definite-lived intangibles over their estimated useful lives. In addition to an annual assessment for impairment of indefinite-lived intangible assets, we review all our definite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. No significant impairment charges have been required during 2025, 2024 and 2023. As of December 31, 2025, we had $ 557.2 million of net intangible assets, of which $ 45.5 million were intangibles with indefinite useful lives included within intellectual property rights. As of December 31, 2024, we had $ 419.3 million of net intangible assets, of which $ 45.5 million were intangibles with indefinite useful lives included within intellectual property rights. Changes to intangible assets are as follows: (in millions) December 31, 2025 2024 2023 Balance at beginning of period, net of accumulated amortization $ 419.3 $ 308.9 $ 344.9 Additions 191.1 161.8 — Amortization expense ( 59.5 ) ( 47.0 ) ( 35.9 ) Currency translation and other 6.3 ( 4.4 ) ( 0.1 ) Balance at end of period, net of accumulated amortization $ 557.2 $ 419.3 $ 308.9 A summary of intangible assets follows: (in millions) Weighted Average Amortization Period of Finite Lived Assets (in years) December 31, 2025 December 31, 2024 Gross Asset Accumulated Amortization Net Gross Asset Accumulated Amortization Net Intellectual property rights 6.3 $ 66.0 $ 18.4 $ 47.6 $ 65.5 $ 15.4 $ 50.1 Customer relationships and backlog 18.9 767.9 339.2 428.7 610.5 293.9 316.6 Developed Technology 6.0 113.2 42.2 71.0 66.4 26.8 39.6 Other 12.3 75.0 65.1 9.9 71.8 58.8 13.0 Total 18.1 $ 1,022.1 $ 464.9 $ 557.2 $ 814.2 $ 394.9 $ 419.3 Future amortization expense associated with intangibles is expected to be: Year (in millions) 2026 $ 65.2 2027 $ 61.0 2028 $ 55.9 2029 $ 53.7 2030 $ 32.0 2031 and after $ 243.9 54 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Crane Net Investment. Prior to the Separation, the Consolidated and Combined Statements of Changes in Equity include net cash transfers between Holdings and the Business as well as related party receivables and payables between the Business and other Holdings affiliates. Redeemable Noncontrolling Interests. Noncontrolling interests with redemption features that are not solely within the control of the Company are classified as redeemable noncontrolling interests and presented as temporary equity between total liabilities and total equity in our Consolidated Balance Sheet. The redeemable noncontrolling interest was initially measured at fair value at the date of the acquisition of the 32.3 % equity interest in Antares Vision (see Note 3 Acquisitions). At each reporting date after initial recognition, the redeemable noncontrolling interest is subsequently measured to the higher of i) the initial carrying amount, adjusted for the noncontrolling interest’s share of accumulated earnings or losses, contributions and distributions, or ii) the redemption value, assuming it was redeemable at the reporting date. Changes in fair value of redeemable noncontrolling interest are recognized as an adjustment to capital surplus. The following table presents the reconciliation of changes in the Company’s redeemable noncontrolling interest: (in millions) Balance as of December 31, 2024 $ — Redeemable noncontrolling interest (See Note 3 “Acquisitions”) 6.9 Net loss attributable to redeemable noncontrolling interest ( 0.5 ) Redeemable noncontrolling interest redemption value* 0.5 Foreign currency translation — Balance as of December 31, 2025 $ 6.9 *Adjustment of the carrying value of redeemable noncontrolling interest to the estimated redemption value was recognized in capital surplus. Accumulated Other Comprehensive Loss. The tables below provide the accumulated balances for each classification of accumulated other comprehensive loss, as reflected on the Consolidated Balance Sheets. (in millions) Defined Benefit Pension and Other Postretirement Items Currency Translation Adjustment Total (a) Balance as of December 31, 2022 $ 9.0 $ ( 140.5 ) $ ( 131.5 ) Other comprehensive (loss) income before reclassifications ( 3.2 ) 18.1 14.9 Amounts reclassified from accumulated other comprehensive income ( 2.0 ) — ( 2.0 ) Net period other comprehensive (loss) income ( 5.2 ) 18.1 12.9 Balance as of December 31, 2023 3.8 ( 122.4 ) ( 118.6 ) Other comprehensive loss before reclassifications — ( 50.9 ) ( 50.9 ) Amounts reclassified from accumulated other comprehensive income ( 3.1 ) — ( 3.1 ) Net period other comprehensive loss ( 3.1 ) ( 50.9 ) ( 54.0 ) Balance as of December 31, 2024 0.7 ( 173.3 ) ( 172.6 ) Other comprehensive income before reclassifications 1.6 72.2 73.8 Amounts reclassified from accumulated other comprehensive income ( 1.1 ) — ( 1.1 ) Net period other comprehensive income 0.5 72.2 72.7 Balance as of December 31, 2025 $ 1.2 $ ( 101.1 ) $ ( 99.9 ) (a) Net of tax detriment of $ 1.1 million, $ 1.3 million and $ 1.5 million for December 31, 2025, 2024 and 2023, respectively. 55 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS The table below illustrates the amounts reclassified out of each component of accumulated other comprehensive loss for the years ended December 31, 2025, 2024 and 2023. Amortization of pension and postretirement components have been recorded within “Miscellaneous income, net” on the Consolidated and Combined Statements of Operations. (in millions) Amount Reclassified from Accumulated Other Comprehensive Loss December 31, 2025 2024 2023 Amortization of pension items: Prior service costs $ ( 0.7 ) $ ( 0.8 ) $ ( 0.7 ) Net loss 0.2 0.3 — Amortization of postretirement items: Prior service costs — ( 0.9 ) ( 1.1 ) Net gain ( 0.8 ) ( 0.9 ) ( 0.7 ) Other — ( 1.4 ) — Total before tax $ ( 1.3 ) $ ( 3.7 ) $ ( 2.5 ) Tax impact ( 0.2 ) ( 0.6 ) ( 0.5 ) Total reclassifications for the period $ ( 1.1 ) $ ( 3.1 ) $ ( 2.0 ) Recent Accounting Pronouncements Recently Adopted Accounting Standards In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which intends to improve the transparency of income tax disclosures. The new standard requires public entities to provide greater disaggregation in their rate reconciliation, including new requirements to present reconciling items on a gross basis within specified categories, to disclose both percentages and dollar amounts, and to disaggregate individual reconciling items by jurisdiction and nature when the effect of the items meets a quantitative threshold. The guidance also includes new requirements to provide users of the financial statements with better information on future cash flow prospects. The standard is effective for all public entities for annual periods beginning after December 15, 2024, on a prospective basis, with a retrospective option, and early adoption permitted for annual financial statements that have not yet been issued. The Company adopted the standard on a prospective basis for the year ended December 31, 2025. See Note 10, “Income Taxes” reflecting the Company’s adoption of this standard. Recently Issued Accounting Standards In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses which intends to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development). The standard requires disclosure of these expenses on an interim and annual basis in the notes to the financial statements. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the potential impact of this standard on its Financial Statements and Disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Improvements to the Accounting for Internal-Use Software . The update eliminates the previous project stage model and introduces a “probable-to-complete” threshold for capitalization. It also consolidates guidance for website development costs under Subtopic 350-40. The ASU is effective for fiscal years beginning after December 15, 2027. The Company is currently evaluating the potential impact of this standard on its Financial Statements and Disclosures. The Company considered the applicability and impact of other Accounting Standards Updates issued by the Financial Accounting Standards Board (FASB) and determined them to be either not applicable or are not expected to have a material impact on the Company's Consolidated and Combined Statements of Operations, Consolidated Balance Sheets and Consolidated and Combined Cash Flows. 56 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Note 2 - Related Parties Prior to the Separation, the Business was managed and operated in the normal course of business with other affiliates of Holdings. Accordingly, certain shared costs were allocated to the Business and are reflected as expenses in the Consolidated and Combined Financial Statements. Allocated Centralized Costs The Consolidated and Combined Financial Statements were prepared on a stand-alone basis and were derived from the consolidated financial statements and accounting records of Holdings for the periods prior to the Separation. Prior to the Separation, Holdings incurred corporate costs for services provided to the Business as well as other Holdings businesses. These services included treasury, tax, accounting, human resources, audit, legal, purchasing, information technology and other such services. The costs associated with these services generally included all payroll and benefit costs, as well as overhead costs related to the support functions. Holdings also allocated costs associated with corporate insurance coverage and medical, pension, post-retirement and other health plan costs for employees participating in Holdings sponsored plans. Allocations were based on several utilization measures including headcount, proportionate usage and relative net sales. All such amounts were deemed incurred and settled by the Business in the period in which the costs were recorded. The allocated centralized costs for the Business were $ 13.5 million for the year ended December 31, 2023. These costs are included in “Selling, general and administrative” in the Consolidated and Combined Statements of Operations. In the opinion of our management, the expense and cost allocations have been determined on a basis considered to be a reasonable reflection of the utilization of services provided to or for the benefit received by the Business during periods prior to the Separation. The amounts that would have been or will be incurred on a stand-alone basis could differ from the amounts allocated due to economies of scale, difference in management judgment, a requirement for more or fewer employees or other factors. Management does not believe, however, that it is practicable to estimate what these expenses would have been had the Business operated as an independent entity, including any expenses associated with obtaining any of these services from unaffiliated entities. In addition, the future results of operations, financial position and cash flows could differ materially from the historical results presented herein. Separation Costs In connection with the Separation, we have incurred expenses of $ 0.6 million and $ 20.9 million for the years ended December 31, 2024, and 2023, respectively, recorded in “Selling, general and administrative” in the Consolidated and Combined Statements of Operations. Expenses primarily consisted of professional service fees. There were no significant Separation related expenses for the year ended December 31, 2025. Cash Management and Financing. Prior to the Separation, the Business participated in Holdings’ centralized cash management and daily cash sweeps. Disbursements were made through centralized accounts payable systems which were operated by Holdings. Cash receipts were transferred to centralized accounts, which were also maintained by Holdings. As cash was received and disbursed by Holdings, it was accounted for by the Business through “Crane Net Investment.” Historically, Holdings had centrally managed and swept cash for most domestic and certain European entities. However, certain legal entities did not participate in Holdings’ centralized cash management program for a variety of reasons. As a result of the Separation, a one-time cash dividend of $ 275 million was issued on April 3, 2023, prior to the Separation, from SpinCo to Holdings, as well as a cash transfer of $ 84 million from Holdings to us. These contributions of net assets are recorded on the Consolidated and Combined Statements of Changes in Equity through “Crane Net Investment.” Accounts Receivable and Payable. Certain related party transactions between the Business and Holdings have been included within “Crane Net Investment” in the Consolidated and Combined Statement of Changes in Equity in the historical periods presented when the related party transactions were not settled in cash. We recorded related party interest expense related to the loan activity with Holdings and its affiliates of $ 2.5 million for the year ended December 31, 2023, which are included in the Business’ results as “Related party interest expense” in the Consolidated and Combined Statements of Operations. The total effect of the settlement of these related party transactions is reflected with “Net transfers to Crane” as a financing activity in the Consolidated and Combined Statements of Cash Flows. There was no related party interest expense for the years ended December 31, 2025 and 2024. Additionally, after the Separation, SpinCo and its subsidiaries were identified as related parties. As of December 31, 2025, and 2024, we have net outstanding receivables from SpinCo and its subsidiaries of $ 1.9 million and $ 0.7 million, respectively, related to indemnification under the tax matters agreement. 57 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Note 3 – Acquisitions Antares Vision Acquisition On December 16, 2025, Crane NXT, through a newly formed Italian joint stock company (“ITT”), initiated a multi-phase acquisition of Antares Vision S.p.A. (“Antares Vision”). In the first phase, Crane NXT acquired a 32.3 % equity interest in Antares Vision for € 117.3 million (approximately $ 137.8 million), at a purchase price of € 5.00 per share. Antares Vision is a global provider of inspection and detection systems that ensure product safety and quality control. Antares Vision also provides track and trace software solutions that help prevent counterfeiting and provides visibility of products throughout the supply chain. The transaction advances Crane NXT’s strategy to provide trusted technology solutions that secure, detect and authenticate its customers’ most valuable assets, and expands the Company’s portfolio in growing end markets, including Life Sciences and Food and Beverage. The Company accounts for its investment in Antares Vision in the first phase under equity method accounting since it exercises significant influence over Antares Vision, but does not have a controlling financial interest. The Company recorded its investment at cost of $ 137.8 million in the Consolidated Balance Sheet at December 31, 2025. Following the initial investment, Crane NXT will launch a mandatory tender offer under applicable Italian law to acquire the remaining publicly traded shares at the same per-share price. Upon completion of the mandatory tender offer, Crane NXT will implement steps aimed at delisting Antares Vision and acquire the remaining stake owned by Regolo S.p.A. As a result of the transaction, Antares Vision will become a subsidiary of Crane NXT. The final phase of the transaction is anticipated to finalize in 2026. The acquisition is funded through the Term Loan B (as described in Note 14, “Financing”). Under the terms of the Investor and Shareholders’ Agreement (“ISA”), the Company is required to issue ordinary shares and grant Class B shares of ITT to certain Antares Vision personnel at € 5.00 per share in multiple tranches aligned with the acquisition steps (the “Reinvestment”). In connection with the first phase, the Company issued 1,173,379 ordinary shares and granted 1,173,379 Class B shares of ITT for $ 6.9 million each, or $ 13.8 million in total. The ordinary shares are classified as a redeemable noncontrolling interest and are presented in temporary equity in the Consolidated Balance Sheet as “Redeemable noncontrolling interest”. The Class B shares are accounted for as stock‑based compensation granted to employees of an equity‑method investee under ASC Topic 718 “Compensation - Stock Compensation” (“ASC 718”) and under ASC Topic 323, “Investments - Equity Method and Joint Ventures” (“ASC 323”). Under the ISA, the Class B shares convert into ordinary shares of ITT based on a multiplier dependent on revenue and EBIT target achievement for the year ended December 31, 2028. The multiplier ranges from zero to three depending on the achievement of these targets as of the specified conversion date. Once converted to ordinary shares, the Class B shares are subject to immediately exercisable call and put features and as such, they are liability-classified instruments. Since Class B shares are subject to performance conditions with no service conditions, they are expensed, when the performance conditions are deemed probable of being achieved and are based on the fair value of the Class B shares at that time. The fair value of Class B shares are based on the estimated fair value of ITT using a market approach and management’s best estimate of the expected performance outcome under the awards’ performance‑based conversion features. Because the number of ordinary shares issuable upon conversion varies based on performance, the estimated fair value incorporates expected performance against these targets. These estimates involve significant judgment and are subject to inherent uncertainty, and actual results may differ from current expectations, which could result in adjustments to compensation expense in future periods. The liability is remeasured each reporting period until settlement. As of December 31, 2025, the performance condition was considered probable of achievement, and the Company recognized $ 12.0 million of stock-based compensation expense within “Equity investment (loss) gain” in the Consolidated and Combined Statements of Operations. 58 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS De La Rue Acquisition On May 1, 2025, we acquired De La Rue Authentication Solutions (“DLR”) for a base purchase price of £ 300 million on a cash-free and debt-free basis, subject to customary purchase price adjustments. The amount paid, net of cash acquired and working capital adjustments, was $ 394.0 million. We utilized the Term Loan A to fund the acquisition (as described in Note 14, “Financing”). In September 2025, we received $ 2.9 million related to the final working capital adjustment of the DLR acquisition, resulting in net cash paid of $ 391.1 million. DLR is a leading global provider of digital and physical security and authentication technologies to governments and brands, and expands our portfolio of authentication solutions. DLR is part of a joint venture (the “Joint Venture”) that manufactures and sells tax stamps for the government of Ghana. DLR owns 49% of the share capital but maintains control of the Joint Venture through board governance rights. As such, we have consolidated the Joint Venture and recorded a noncontrolling interest in our Consolidated and Combined Financial Statements. Allocation of Consideration Transferred to Net Assets Acquired The following amounts represent the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed from our acquisition of DLR, pending the finalization of certain tangible assets and liabilities to be completed within the measurement period as required by ASC Topic 805 “Business Combination” (“ASC 805”). Potential adjustments are not expected to be material in relation to the preliminary values presented below: Net assets acquired (in millions) Accounts receivable, net $ 19.9 Inventories, net 20.8 Other current assets 6.7 Property, plant and equipment 27.5 Other non-current assets 5.3 Intangible assets 184.4 Goodwill 188.5 Total assets acquired $ 453.1 Total current liabilities $ 16.3 Other liabilities 45.7 Total assumed liabilities $ 62.0 Net assets acquired $ 391.1 The amount allocated to goodwill reflects expected sales synergies, manufacturing efficiency and research and development. Goodwill from this acquisition is not deductible for tax purposes. Th e amounts allocated to acquired intangible assets, and their associated weighted-average useful lives which were determined based on the period in which the assets are expected to contribute directly or indirectly to our future cash flows, consist of the following: Intangible Assets (in millions) Intangible Fair Value Weighted Average Life (in years) Customer relationships $ 141.0 18.2 Developed technology 40.7 5.0 Backlog 2.7 0.9 Total acquired intangible assets $ 184.4 59 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS The fair values of the customer relationships and backlog intangible assets were determined by using an “income approach”, which is a commonly accepted valuation approach. Under this approach, the net earnings attributable to the asset or liability being measured are isolated using the discounted projected net cash flows. These projected cash flows are isolated from the projected cash flows of the combined asset group over the remaining economic life of the intangible asset or liability being measured. Both the amount and the duration of the cash flows are considered from a market participant perspective. The Company’s estimates of market participant net cash flows considered historical and projected pricing, operational performance including market participant synergies, aftermarket retention, product life cycles, material and labor pricing, and other relevant customer, contractual and market factors. Where appropriate, the net cash flows were adjusted to reflect the potential attrition of existing customers in the future, as existing customers are expected to decline over time. The attrition-adjusted future cash flows are then discounted to present value using an appropriate discount rate. The customer relationship is being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 12 to 21 years. The fair values of the developed technology intangible assets were determined by the relief-from-royalty approach. Similarly, this approach is based on the assumption that in lieu of ownership, a company would be willing to pay a royalty in order to exploit the related benefits of the technology. Therefore, a portion of DLR’s earnings, equal to the after-tax royalty that would have been paid for the use of the technology, can be attributed to the Company’s ownership of the technology. The technology assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 5 years. OpSec Acquisition On May 3, 2024, we acquired OpSec Security (“OpSec”), for a base purchase price of $ 270 million on a cash-free and debt-free basis. The amount paid, net of cash acquired, was $ 268.4 million. We utilized $ 210.0 million from our Revolving Facility (as defined in Note 14, “Financing”) and cash on hand to fund the acquisition. OpSec provides authentication solutions, brand and digital content protection serving various commercial brands, government agencies and financial institutions. In connection with the acquisition of OpSec, we renamed our “Crane Currency” reportable segment to “Security and Authentication Technologies,” which consists of the Crane Currency business and the acquired Crane Authentication business comprised of the acquired OpSec and De La Rue businesses. Allocation of Consideration Transferred to Net Assets Acquired The following amounts represent the determination of the fair value of identifiable assets acquired and liabilities assumed from our acquisition of OpSec. The fair value of certain assets and liabilities has been completed as required by ASC 805. Net assets acquired (in millions) Total current assets $ 33.5 Property, plant and equipment 17.3 Other assets 6.9 Intangible assets 155.5 Goodwill 134.3 Total assets acquired $ 347.5 Total current liabilities $ 37.9 Other liabilities 41.2 Total assumed liabilities $ 79.1 Net assets acquired $ 268.4 The amount allocated to other assumed liabilities includes a contingent liability of $ 1.5 million related to a prior OpSec acquisition. The amount payable is contingent upon achievement of specific revenue targets and is capped at $ 2.2 million. The contingency conditions expire at the end of October 2027, an extension from the original expiry date at the end of 2026, at which point if the contingency conditions have not been met, no payment will occur. The contingent liability is measured at fair value. See Note 15, “Fair Value Measurements” for further details. 60 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS The amount allocated to goodwill reflects expected sales synergies, manufacturing efficiency and research and development. Goodwill from this acquisition is not deductible for tax purposes. Th e amounts allocated to acquired intangible assets, and their associated weighted-average useful lives which were determined based on the period in which the assets are expected to contribute directly or indirectly to our future cash flows, consist of the following: Intangible Assets (dollars in millions) Intangible Fair Value Weighted Average Life Customer relationships $ 115.5 19.3 Developed technology 36.5 5.7 Backlog 2.0 0.7 Intellectual property rights 1.5 5.0 Total acquired intangible assets $ 155.5 The intellectual property rights intangible asset category consists of trade names. The fair values of the trade names were determined by using an “income approach,” specifically the relief-from-royalty approach, which is a commonly accepted valuation approach. This approach assumes that in lieu of ownership, a company would be willing to pay a royalty to exploit the related benefits of this asset. Therefore, a portion of OpSec’s earnings, equal to the after-tax royalty that would have been paid for the use of the asset, can be attributed to the Company’s ownership. The trade names are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 5 years. The fair values of the developed technology intangible assets were also determined by the relief-from-royalty approach. Similarly, this approach assumes that in lieu of ownership, a company would be willing to pay a royalty to exploit the related benefits of the technology. Therefore, a portion of OpSec’s earnings, equal to the after-tax royalty that would have been paid for the use of the technology, can be attributed to the Company’s ownership of the technology. The technology assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 3 to 6 years. The fair values of the customer relationships and backlog intangible assets were determined by using an “income approach,” which is a commonly accepted valuation approach. Under this approach, the net earnings attributable to the asset or liability being measured are isolated using the discounted projected net cash flows. These projected cash flows are isolated from the projected cash flows of the combined asset group over the remaining economic life of the intangible asset or liability being measured. Both the amount and the duration of the cash flows are considered from a market participant perspective. The Company’s estimates of market participant net cash flows considered historical and projected pricing, operational performance including market participant synergies, after market retention, product life cycles, material and labor pricing, and other relevant customer, contractual and market factors. Where appropriate, the net cash flows were adjusted to reflect the potential attrition of existing customers in the future, as existing customers are expected to decline over time. The attrition-adjusted future cash flows are then discounted to present value using an appropriate discount rate. The customer relationship is being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 16 to 20 years. Supplemental and Pro Forma Data DLR results of operations have been included in our financial statements for the period subsequent to the completion of the acquisition on May 1, 2025. OpSec results of operations have been included in our financial statements for the period subsequent to the completion of the acquisition on May 3, 2024. During the period since acquisition, DLR contributed net sales of $ 89.4 million, resulting in operating loss of $ 7.9 million for the year ended December 31, 2025. The operating loss was driven by acquisition related amortization, fair value step-up and transaction costs. The following unaudited pro forma consolidated and combined information assumes that the DLR acquisition was completed on January 1, 2024 and the OpSec acquisition was completed on January 1, 2023. The unaudited pro forma consolidated and combined information for both acquisitions is provided for illustrative purposes only and is not indicative of our actual consolidated and combined results of operations or consolidated financial position. (in millions) For the year ended December 31, 2025 2024 2023 Net sales $ 1,699.6 $ 1,667.2 $ 1,507.7 Net income attributable to common shareholders $ 160.3 $ 164.4 $ 161.1 61 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Acquisition-Related Costs For the year ended December 31, 2025 and 2024, we recorded $ 24.1 million and $ 17.9 million, respectively, of acquisition-related costs within “Selling, general and administrative” in our Consolidated and Combined Statements of Operations. Note 4 – Segment Information In accordance with ASC Topic 280, “Segment Reporting,” for purposes of segment performance measurement, we do not allocate to the business segments items that are of a non-operating nature; or corporate organizational and functional expenses of a governance nature. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We had two reportable segments: Crane Payment Innovations and Security and Authentication Technologies. Assets of the reportable segments exclude general corporate assets, which principally consist of cash, deferred tax assets, certain property, plant and equipment, and certain other assets. Corporate consists of corporate office expenses including compensation and benefits for corporate employees, occupancy, depreciation, and other administrative costs. A brief description of each of our segments is as follows: Crane Payment Innovations CPI provides electronic equipment and associated software leveraging extensive and proprietary core capabilities with various detection and sensing technologies for applications including verification and authentication of payment transactions. CPI also provides advanced automation solutions, and processing systems, field service solutions, and remote diagnostics and productivity software solutions. Key research and development and manufacturing facilities are located in the United States, the United Kingdom, Mexico, Japan, and Germany, with additional sales offices across the world. Security and Authentication Technologies SAT provides advanced security solutions based on proprietary technology for securing physical products, including banknotes, consumer goods, and industrial products. SAT also provides brand protection, authentication solutions, and digital content protection across online marketplaces, social media platforms, and websites. These solutions serve various brands, as well as government agencies and financial insti tutions. Key research and development and manufacturing facilities are located in the United States, United Kingdom, Sweden and Malta. The chief operating decision maker is our Chief Executive Officer (“CEO”). The CEO assesses the segments’ performance by using each segments’ net sales and operating profit. The CEO uses net sales and operating profit for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a monthly, quarterly and annual basis for net sales and operating profit when making decisions about the allocation of operating and capital resources to each segment. The CEO also uses segment net sales and operating profit for assessing the performance of each segment by comparing the results of each segment with one another and with prior year’s performance, and in determining the compensation of certain employees directly responsible for segment performance. 62 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Financial information by reportable segment is set forth below: (in millions) Year ended December 31, 2025 Crane Payment Innovations Security and Authentication Technologies Total Net Sales $ 846.6 $ 810.1 $ 1,656.7 Less: Cost of operations 379.1 401.1 Selling and administrative expense 157.8 154.0 Engineering expense 34.9 38.1 Other segment items (a) 53.2 119.5 Segment operating profit 221.6 97.4 319.0 Corporate costs ( 72.3 ) Operating profit 246.7 Interest income 1.0 Interest expense ( 60.3 ) Equity investment loss ( 11.5 ) Miscellaneous income, net 5.1 Income before income taxes $ 181.0 (in millions) Year ended December 31, 2024 Crane Payment Innovations Security and Authentication Technologies Total Net Sales $ 873.2 $ 613.6 $ 1,486.8 Less: Cost of operations 394.2 323.6 Selling and administrative expense 160.6 94.2 Engineering expense 43.8 27.2 Other segment items (a) 46.2 57.7 Segment operating profit 228.4 110.9 339.3 Corporate costs ( 70.5 ) Operating profit 268.8 Interest income 1.6 Interest expense ( 47.8 ) Equity investment gain 0.8 Miscellaneous income, net 3.0 Income before income taxes $ 226.4 63 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (in millions) Year ended December 31, 2023 Crane Payment Innovations Security and Authentication Technologies Total Net Sales $ 886.4 $ 504.9 $ 1,391.3 Less: Cost of operations 373.3 297.6 Selling and administrative expense 152.9 72.1 Engineering expense 51.5 18.7 Other segment items (a) 65.9 0.2 Segment operating profit 242.8 116.3 359.1 Corporate costs ( 72.3 ) Operating profit 286.8 Interest income 1.1 Interest expense ( 48.1 ) Related party interest expense ( 2.5 ) Miscellaneous income, net 2.5 Income before income taxes $ 239.8 (a) Includes other cost of operations such as manufacturing costs, amortization expenses, shipping and handling costs, and certain overhead expenses, as well as corporate allocations. (in millions) December 31, 2025 2024 2023 Depreciation and amortization: Crane Payment Innovations $ 29.1 $ 29.3 $ 31.2 Security and Authentication Technologies 74.9 55.1 44.2 Corporate 2.6 2.4 2.2 Total $ 106.6 $ 86.8 $ 77.6 (in millions) December 31, 2025 2024 2023 Capital expenditures Crane Payment Innovations $ 7.7 $ 7.9 $ 7.6 Security and Authentication Technologies 30.7 37.5 25.9 Corporate 0.1 0.1 1.6 Total $ 38.5 $ 45.5 $ 35.1 Net sales by geographic region: (in millions) December 31, 2025 2024 2023 Net sales (a) North America $ 829.3 $ 804.8 $ 787.1 Western Europe 190.2 162.1 196.3 Rest of the World 637.2 519.9 407.9 Total net sales $ 1,656.7 $ 1,486.8 $ 1,391.3 (a) Net sales by geographic region are based on the destination of the sale. 64 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Balance sheet items by reportable segment is set forth below: (in millions) December 31, 2025 2024 Goodwill: Crane Payment Innovations $ 624.2 $ 609.1 Security and Authentication Technologies 539.8 347.5 Total goodwill $ 1,164.0 $ 956.6 Assets: Crane Payment Innovations $ 1,183.0 $ 1,187.1 Security and Authentication Technologies 1,734.9 1,178.2 Corporate 198.5 21.2 Total assets $ 3,116.4 $ 2,386.5 Long-lived assets by geographic region: (in millions) December 31, 2025 2024 Long-lived assets (a) North America $ 186.8 $ 187.3 Western Europe 165.9 129.1 Rest of the World 18.4 16.3 Total long-lived assets $ 371.1 $ 332.7 (a) Long-lived assets, net by geographic region are based on the location of the business unit and consist of property, plant and equipment and operating lease assets. Note 5 - Revenue Disaggregation of Revenues The following table presents net sales disaggregated by product line for each segment: (in millions) December 31, 2025 2024 2023 Crane Payment Innovations Products $ 709.4 $ 739.9 $ 758.7 Services 137.2 133.3 127.7 Total Crane Payment Innovations $ 846.6 $ 873.2 $ 886.4 Security and Authentication Technologies Banknotes and Security Products $ 592.4 $ 521.9 $ 500.4 Authentication Products and Solutions 217.7 91.7 4.5 Total Security and Authentication Technologies $ 810.1 $ 613.6 $ 504.9 Total Net Sales $ 1,656.7 $ 1,486.8 $ 1,391.3 Remaining Performance Obligations The transaction price allocated to remaining performance obligations represents the transaction price of firm orders which have not yet been fulfilled, which we also refer to as total backlog. As of December 31, 2025, backlog was $ 492.8 million. We expect to recognize approximately 98 % of our remaining performance obligations as revenue in 2026 and 2 % in 2027. Contract Assets and Contract Liabilities Contract assets represent unbilled amounts that typically arise from contracts for customized products or contracts for products sold directly to the U.S. government or indirectly to the U.S. government through subcontracts, and certain international government contracts, where revenue recognized using the cost-to-cost method exceeds the amount billed to the customer. Contract assets are assessed for impairment and recorded at their net realizable value. Contract liabilities represent advance payments from customers. Revenue related to contract liabilities is recognized when control is transferred to the customer. 65 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS We report contract assets, which are included within “Other current assets”, current contract liabilities, which are included within “Accrued liabilities” and long-term contract liabilities, which are included within “Other liabilities” on our Consolidated Balance Sheets, on a contract-by-contract net basis at the end of each reporting period. Net contract assets and contract liabilities consisted of the following: (in millions) December 31, 2025 2024 Contract assets $ 56.1 $ 37.8 Contract liabilities $ 87.3 $ 71.4 Long-term contract liabilities $ 17.0 $ 13.5 During 2025 we recognized revenue of $ 66.6 million related to contract liabilities as of December 31, 2024. The business had one individually significant customer within the Security and Authentication Technologies segment with net sales of $ 210.7 million, $ 209.2 million and $ 213.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. Note 6 – Research and Development Research and development costs are expensed when incurred and are included in “Selling, general and administrative” in our Consolidated and Combined Statements of Operations. (in millions) December 31, 2025 2024 2023 Research and Development Costs $ 46.0 $ 39.5 $ 42.8 Note 7 – Pension and Postretirement Benefits Pension Plan A number of our non-U.S. subsidiaries sponsor defined benefit pension plans that provide ongoing benefits for approximately 5 % of all non-U.S. employees as of December 31, 2025. The benefits are typically based upon years of service and compensation. Most of these plans are funded by company contributions to pension funds, which are held for the sole benefit of plan participants and beneficiaries. Additionally, in the United States, we sponsor a defined benefit pension plan that covers less than 1 % of U.S. employees as of December 31, 2025. The benefits are based on years of service and compensation. Charges to expense are based upon costs computed by an independent actuary. The plan is funded on a pay-as-you-go basis. Postretirement Plans Postretirement health care benefits are provided for certain employees hired before July 1, 2013, who meet minimum age and service requirements. A summary of the projected benefit obligations, fair value of plan assets and funded status for the plans is as follows: 66 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Pension Benefits Postretirement Benefits (in millions) December 31, 2025 2024 2025 2024 Change in benefit obligation: Benefit obligation at beginning of year $ 69.1 $ 77.6 $ 11.5 $ 12.7 Service cost 2.2 2.0 0.1 0.1 Interest cost 1.7 1.9 0.6 0.6 Plan participants’ contributions 0.3 0.4 — — Actuarial (gain) loss ( 1.6 ) ( 1.0 ) 0.3 ( 0.4 ) Settlements ( 10.6 ) ( 2.3 ) — — Curtailments ( 2.3 ) — — — Benefits paid ( 2.5 ) ( 5.5 ) ( 1.4 ) ( 1.5 ) Foreign currency exchange and other 9.1 ( 3.9 ) — — Administrative expenses paid ( 0.3 ) ( 0.1 ) — — Benefit obligation at end of year $ 65.1 $ 69.1 $ 11.1 $ 11.5 Change in plan assets: Fair value of plan assets at beginning of year $ 76.5 $ 83.5 $ — $ — Actual return on plan assets 2.9 3.8 — — Employer contributions 1.2 1.6 1.4 1.5 Plan participants’ contributions 0.3 0.4 — — Settlements ( 10.6 ) ( 2.3 ) — — Benefits paid ( 2.5 ) ( 5.5 ) ( 1.4 ) ( 1.5 ) Foreign currency exchange and other 9.0 ( 4.2 ) — — Administrative expenses paid ( 0.6 ) ( 0.8 ) — — Fair value of plan assets at end of year $ 76.2 $ 76.5 $ — $ — Funded status $ 11.1 $ 7.4 $ ( 11.1 ) $ ( 11.5 ) In the U.S., 2025 actuarial gains in the projected benefit obligation were primarily the result of a decrease in the discount rate. Other sources of gains or losses such as plan experience, updated census data and minor adjustments to actuarial assumptions generated combined losses of less than 1 % of expected year end obligations. In the non-U.S., countries, 2025 actuarial gains in the projected benefit obligation were primarily the result of increases in discount rates, decreases in UK inflation, and updates to Switzerland withdrawal and lump sum take rates. Other sources of gains or losses such as plan experience, updated census data, and minor adjustments to other actuarial assumptions generated combined losses well under 1 % of expected year end obligations. In the U.S., 2024 actuarial gains in the projected benefit obligation were primarily the result of the loss of one of the participants who had the largest benefit and an increase in the discount rate. Other sources of gains or losses such as plan experience, updated census data and minor adjustments to actuarial assumptions generated combined losses of less than 1 % of expected year end obligations. In the non-U.S. countries, 2024 actuarial gains in the projected benefit obligation were primarily the result of decreases in interest crediting rates and the mortality update for a United Kingdom entity, offset by the overall decrease in discount rates and increase in United Kingdom inflation. Other sources of gains or losses such as plan experience, updated census data, and minor adjustments to other actuarial assumptions generated combined losses well under 1 % of expected year end obligations. Amounts recognized on our Consolidated Balance Sheets consist of: Pension Benefits Postretirement Benefits (in millions) December 31, 2025 2024 2025 2024 Other assets $ 15.2 $ 13.6 $ — $ — Accrued liabilities ( 0.2 ) ( 0.4 ) ( 1.2 ) ( 1.3 ) Accrued pension and postretirement benefits ( 3.9 ) ( 5.8 ) ( 9.9 ) ( 10.2 ) Funded status $ 11.1 $ 7.4 $ ( 11.1 ) $ ( 11.5 ) 67 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Amounts recognized in accumulated other comprehensive loss consist of: Pension Benefits Postretirement Benefits (in millions) December 31, 2025 2024 2025 2024 Net actuarial loss (gain) $ 9.0 $ 12.2 $ ( 6.3 ) $ ( 7.4 ) Prior service credit ( 3.5 ) ( 5.3 ) — — Total recognized in accumulated other comprehensive loss (gain) $ 5.5 $ 6.9 $ ( 6.3 ) $ ( 7.4 ) The projected benefit obligation, accumulated benefit obligation and fair value of plan assets are as follows: Pension Obligations/Assets U.S. Non-U.S. Total (in millions) December 31, 2025 2024 2025 2024 2025 2024 Projected benefit obligation $ 0.3 $ 0.5 $ 64.8 $ 68.6 $ 65.1 $ 69.1 Accumulated benefit obligation $ 0.3 $ 0.5 $ 64.0 $ 67.1 $ 64.3 $ 67.6 Fair value of plan assets $ — $ — $ 76.2 $ 76.5 $ 76.2 $ 76.5 Information for pension plans with benefit obligation in excess of plan assets is as follows: (in millions) December 31, 2025 2024 Projected benefit obligation $ 4.1 $ 44.0 Accumulated benefit obligation $ 4.1 $ 42.5 Components of net periodic (benefit) cost are as follows: Pension Benefits Postretirement Benefits (in millions) For the year ended December 31, 2025 2024 2023 2025 2024 2023 Net Periodic (Benefit) Cost: Service cost $ 2.2 $ 2.0 $ 1.9 $ 0.1 $ 0.1 $ 0.1 Interest cost 1.7 1.9 2.1 0.6 0.6 0.8 Expected return on plan assets ( 2.9 ) ( 3.0 ) ( 3.2 ) — — — Amortization of prior service cost ( 0.7 ) ( 0.8 ) ( 0.7 ) — ( 0.9 ) ( 1.1 ) Amortization of net loss (gain) 0.2 0.3 — ( 0.8 ) ( 0.9 ) ( 0.7 ) Recognized curtailment loss (gain) ( 1.7 ) — ( 0.1 ) — — — Settlement loss (gain) 0.5 — ( 0.3 ) — — — Other — ( 1.4 ) — — — — Net periodic cost (benefit) $ ( 0.7 ) $ ( 1.0 ) $ ( 0.3 ) $ ( 0.1 ) $ ( 1.1 ) $ ( 0.9 ) The weighted average assumptions used to determine benefit obligations are as follows: Pension Benefits Postretirement Benefits For the year ended December 31, 2025 2024 2023 2025 2024 2023 U.S. Plans: Discount rate 4.14 % 4.39 % 4.02 % 5.20 % 5.50 % 5.00 % Rate of compensation increase N/A N/A N/A N/A N/A N/A Interest credit rate 4.14 % 4.39 % 4.02 % N/A N/A N/A Non-U.S. Plans: Discount rate 2.99 % 2.52 % 2.57 % N/A N/A N/A Rate of compensation increase 1.99 % 2.01 % 2.03 % N/A N/A N/A Interest credit rate 1.89 % 0.97 % 1.75 % N/A N/A N/A 68 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS The weighted-average assumptions used to determine net periodic benefit cost are as follows: Pension Benefits Postretirement Benefits For the year ended December 31, 2025 2024 2023 2025 2024 2023 U.S. Plans: Discount rate 4.39 % 4.02 % 5.43 % 5.50 % 5.40 % 5.40 % Expected rate of return on plan assets N/A N/A N/A N/A N/A N/A Rate of compensation increase N/A N/A N/A N/A N/A N/A Interest credit rate 4.39 % 4.02 % 3.62 % N/A N/A N/A Non-U.S. Plans: Discount rate 2.52 % 2.57 % 3.17 % N/A N/A N/A Expected rate of return on plan assets 3.62 % 4.19 % 4.07 % N/A N/A N/A Rate of compensation increase 2.01 % 2.03 % 2.17 % N/A N/A N/A Interest credit rate 0.97 % 1.86 % 1.81 % N/A N/A N/A The long-term expected rate of return on plan assets assumptions were determined with input from independent investment consultants and plan actuaries, utilizing asset pricing models and considering historical returns. The discount rates used by us for valuing pension liabilities are based on a review of high-quality corporate bond yields with maturities approximating the remaining life of the projected benefit obligations. For the non-U.S. plans, the 3.62 % expected rate of return on assets assumption for 2025 reflected a weighted average of the long-term asset allocation targets for our various non-U.S. plans. As of December 31, 2025, the actual weighted average asset allocation for the non-U.S. plans was 8 % equity securities, 35 % fixed income securities, 56 % alternative assets/other and 1 % cash and cash equivalents. The assumed health care cost trend rates are as follows: December 31, 2025 2024 Health care cost trend rate assumed for next year 8.50 % 7.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2039 2035 Assumed health care cost trend rates have a significant effect on the amounts reported for our health care plans. Plan Assets Our pension plan target allocations and weighted-average asset allocations by asset category are as follows, along with the actual allocation related to the Dedicated Plans: Target Allocation Actual Allocation Asset Category December 31, 2025 2024 Equity securities 5 % - 75 % 8 % 9 % Fixed income securities 15 % - 75 % 35 % 33 % Alternative assets/Other 0 % - 75 % 56 % 58 % Cash and money market 0 % - 10 % 1 % — % Independent investment consultants are retained to assist in executing the plans’ investment strategies. Several factors are evaluated in determining if an investment strategy will be implemented in our pension trusts. These factors include, but are not limited to, investment style, investment risk, investment manager performance and costs. We periodically review investment managers and their performance in relation to our plans’ investment objectives. The primary investment objective of our various plan assets is to ensure that there are sufficient assets to pay benefits when they are due while mitigating associated risk and minimizing employer contributions. The plans’ assets are typically invested in a broad range of equity securities, fixed income securities, insurance contracts, alternative assets and cash instruments. Equity securities include investments in large, mid, and small-capitalization companies located in both developed countries and emerging markets around the world. Fixed income securities include government bonds of various countries, corporate bonds that are primarily investment-grade, and mortgage-backed securities. Alternative assets include investments in real estate, insurance contracts and hedge funds employing a wide variety of strategies. 69 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS The fair value of our pension plan assets as of December 31, 2025, by asset category, are as follows: (in millions) Active Markets for Identical Assets Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Net Asset Value ("NAV") Practical Expedient (a) Total Fair Value Cash Equivalents and Money Markets $ 0.4 $ — $ — $ — $ 0.4 Commingled and Mutual Funds Non-U.S. Equity Funds — — — 6.5 6.5 Collective Trust — — 20.8 13.5 34.3 Non-U.S. Fixed Income, Government and Corporate — — — 26.9 26.9 Alternative Investments Insurance / Annuity Contract(s) — 8.1 — — 8.1 Total Fair Value $ 0.4 $ 8.1 $ 20.8 $ 46.9 76.2 (a) Investments are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy. In 2025, the pension plan's asset classified as Level 3 constitutes an insurance contract valued annually on an actuarial basis. The fair value of our pension plan assets as of December 31, 2024, by asset category, are as follows: (in millions) Active Markets for Identical Assets Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Net Asset Value ("NAV") Practical Expedient (a) Total Fair Value Cash Equivalents and Money Markets $ 0.2 $ — $ — $ — $ 0.2 Commingled and Mutual Funds Non-U.S. Equity Funds — — — 6.6 6.6 Collective Trust — — 19.5 18.2 37.7 Non-U.S. Fixed Income, Government and Corporate — — — 25.1 25.1 Alternative Investments Insurance / Annuity Contract(s) — 6.9 — — 6.9 Total Fair Value $ 0.2 $ 6.9 $ 19.5 $ 49.9 $ 76.5 (a) Investments are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy. In 2024, the pension plan's asset classified as Level 3 constitutes an insurance contract valued annually on an actuarial basis. Cash Flows We expect, based on current actuarial calculations, to contribute cash of approximately $ 1.2 million to our defined benefit pension plans during 2026. Cash contributions in subsequent years will depend on several factors including the investment performance of plan assets for funded plans. 70 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Estimated future payments (in millions) Pension Benefits Postretirement Benefits 2026 $ 3.7 $ 1.2 2027 3.8 1.2 2028 4.0 1.0 2029 3.9 1.0 2030 4.2 1.0 2031 to 2035 21.0 4.2 Total payments $ 40.6 $ 9.6 Supplemental Executive Retirement Plan We also have a non-qualified Supplemental Executive Retirement Plan (“SERP”). The SERP, which is not funded, is intended to provide retirement benefits for certain executive officers who were formerly employees of Security and Authentication Technologies prior to the acquisition of Crane Currency in 2018. Benefit amounts are based upon years of service and compensation of the participating employees. We recorded no pre-tax settlement gain or loss in 2025 and 2024. We recorded minimal pre-tax settlement gain and loss in 2023. Accrued SERP benefits, which were recorded in Accrued liabilities and Accrued pension and postretirement benefits in the Consolidated Balance Sheets, were $ 1.3 million and $ 1.3 million as of December 31, 2025, and 2024, respectively. Employer contributions made to the SERP were $ 0.1 million, $ 0.1 million and $ 0.7 million in 2025, 2024 and 2023, respectively. Defined Contribution Plans We sponsor savings and investment plans that are available to our eligible employees including employees of our subsidiaries. We made contributions to the plans of $ 5.4 million, $ 5.1 million and $ 4.5 million in 2025, 2024 and 2023, respectively. In addition to participant deferral contributions and company matching contributions on those deferrals, we provide a 3 % non-matching contribution to eligible participants. We made non-matching contributions to these plans of $ 6.3 million, $ 5.8 million and $ 5.5 million in 2025, 2024 and 2023, respectively. Note 8 – Stock-Based Compensation Plans As a result of the Separation, all outstanding stock-based compensation awards of Holdings were exchanged for similarly valued stock-based compensation awards of either SpinCo, Crane NXT or both. The exchanged awards are subject to the same service vesting requirements as the original awards. Upon the exchange, there were 0.5 million options outstanding related to Crane NXT associates and 0.6 million options outstanding related to SpinCo associates. The modification of the performance-based restricted share units resulted in a liability recorded upon Separation. The amount of the liability was $ 1.0 million and $ 1.6 million as of December 31, 2025, and 2024, respectively. At December 31, 2025, we had stock-based compensation awards outstanding under the following shareholder-approved plans: the 2013 Stock Incentive Plan (the "2013 Plan"), 2018 Stock Incentive Plan (the "2018 Plan") and 2018 Amended and Restated Stock Incentive Plan (the “2018 Amended & Restated Plan”), applicable to employees and non-employee directors. The 2013 Plan was approved by the Board of Directors and stockholders at the annual meeting in 2013. The 2013 Plan originally authorized the issuance of up to 9,500,000 shares of stock pursuant to awards under the plan. In 2018, in view of the limited number of shares remaining available under the 2013 Plan, the Board of Directors and stockholders approved the adoption of the 2018 Plan which authorized the issuance of up to 6,500,000 shares of Crane Holdings, Co. stock. In 2021, the Board of Directors and stockholders approved the adoption of the 2018 Amended and Restated Stock Incentive Plan which authorized the issuance of up to 4,710,000 shares of Crane Holdings, Co. stock. No further awards will be made under the 2013 Plan or 2018 Plan. The stock incentive plans are used to provide long-term incentive compensation through stock options, restricted share units, performance-based restricted share units and deferred stock units. 71 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Stock Options Options are granted under the Stock Incentive Plan to officers and other key employees at an exercise price equal to the closing price on the date of grant. Unless otherwise determined by the Compensation Committee which administers the plan, options vest in four installments of 25 % per year over four years beginning on the first anniversary of the grant date. All options granted to officers and employees after 2014 expire 10 years after the date of grant. We determine the fair value of each grant using the Black-Scholes option pricing model. The weighted-average assumptions for grants during the years ended December 31, 2025, 2024 and 2023 are as follows: 2025 2024 2023 Dividend yield 1.17 % 1.10 % 1.57 % Volatility 35.23 % 36.00 % 32.33 % Risk-free interest rate 4.11 % 4.23 % 3.67 % Expected lives in years 7.7 7.7 7.7 For 2025 and 2024, expected dividend yield was based on our dividend rate. For 2023, expected dividend yield was based on Holdings’ dividend rate. For 2025 and 2024, expected stock volatility was based on a weighted blend of our available stock price history and the median historical volatility of members of a volatility peer group. For 2023, expected stock volatility was determined based upon Holdings’ historical volatility for the four-year period preceding the date of grant. The risk-free interest rate was based on the yield curve in effect at the time the options were granted, using U.S. constant maturities over the expected life of the option. The expected lives of the awards represented the period of time that options granted are expected to be outstanding. Activity in Crane NXT’s stock option plans for the year ended December 31, 2025 were as follows: Option Activity Number of Shares (in 000’s) Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value (in millions) (a) Options outstanding as of January 1, 2025 464 $ 40.82 Granted 106 58.25 Exercised ( 39 ) 26.74 Canceled ( 15 ) 54.78 Options outstanding as of December 31, 2025 516 $ 45.06 6.73 $ 3.0 Options exercisable as of December 31, 2025 256 $ 37.02 5.26 $ 2.8 (a) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the estimated fair value of the common stock for in the money options at December 31, 2025. Included in our stock-based compensation was expense recognized for our stock option awards of $ 1.7 million, $ 1.4 million and $ 4.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. During 2025, the weighted-average fair value of options granted was $ 23.82 , the total fair value of shares vested was $ 1.5 million, and the total intrinsic value of options exercised was $ 1.2 million. The total cash received from these option exercises during 2025, 2024 and 2023 was $ 2.6 million, $ 3.3 million and $ 5.0 million, respectively, and is reflected in the Consolidated and Combined Statement of Cash Flows as “Proceeds from stock options exercised” within financing activities. The tax benefit realized for the tax deductions from these option exercises was $ 0.1 million, $ 0.4 million and $ 0.4 million as of December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, there was $ 3.8 million of total future compensation cost related to unvested share-based awards to be recognized over a weighted-average period of 2.07 years. 72 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Restricted Share Units and Performance-Based Restricted Share Units Restricted share units vest in four installments of 25 % per year over four years beginning on the first anniversary of the grant date and are subject to forfeiture restrictions which lapse over time. The vesting of performance-based restricted share units is determined based on relative total shareholder return for Crane NXT, Co. compared to the S&P Midcap 400 Capital Goods Group over a three-year period, with payout potential ranging from 0 % to 200 % but capped at 100 % if our three-year total shareholder return is negative. The fair value of performance-based restricted share units is calculated using a Monte Carlo pricing model on the date of grant. Included in our stock-based compensation was expense recognized for our restricted share unit and performance-based restricted share unit awards of $ 11.0 million, $ 9.2 million and $ 5.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. The tax benefit for the vesting of the restricted share units was $ 0.6 million, $ 0.8 million and $ 0.5 million as of December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, there was $ 17.7 million of total future compensation cost related to restricted share unit and performance-based restricted share unit awards, to be recognized over a weighted-average period of 1.79 years. Changes in our restricted share units for the year ended December 31, 2025 were as follows: Restricted Share Unit Activity Restricted Share Units (in 000’s) Weighted Average Grant-Date Fair Value Restricted share units as of January 1, 2025 461 $ 51.07 Restricted share units granted 180 56.96 Restricted share units vested ( 159 ) 46.22 Restricted share units forfeited ( 42 ) 51.07 Performance-based restricted share units granted 89 63.61 Performance-based restricted share units vested ( 14 ) 48.63 Performance-based restricted share units forfeited ( 13 ) 62.08 Restricted share units as of December 31, 2025 502 $ 56.73 Note 9 - Leases Arrangements that explicitly or implicitly relate to property, plant and equipment are assessed at inception to determine if the arrangement is or contains a lease. Generally, we enter operating leases as the lessee and recognize right-of-use assets and lease liabilities based on the present value of future lease payments over the lease term. We lease certain vehicles, equipment, manufacturing and non-manufacturing facilities. We have leases with both lease components and non-lease components, such as common area maintenance, utilities, or other repairs and maintenance. For all asset classes, we applied the practical expedient to account for each separate lease component and its associated non-lease component(s) as a single lease component. We identify variable lease payments, such as maintenance payments based on actual activities performed or costs incurred, at lease commencement by assessing the nature of the payment provisions, including whether the payments are subject to a minimum. Certain leases include options to renew for an additional term or company-controlled options to terminate. We generally determine it is not reasonably certain to assume the exercise of renewal options because there is no economic incentive to renew. As termination options often include penalties, we generally determine it is reasonably certain that termination options will not be exercised because there is an economic incentive not to terminate. Therefore, these options generally do not impact the lease term or the determination or classification of the right-of-use asset and lease liability. We do not enter arrangements where restrictions or covenants are imposed by the lessor that, for example, relate to incurring additional financial obligations. Furthermore, we also have not entered any significant sublease arrangements. We use our collateralized incremental borrowing rate based on the information available at commencement date to determine the present value of future payments and the appropriate lease classification. The rate implicit in the lease is generally unknown, as we generally operate in the capacity of the lessee. 73 NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS Our Consolidated Balance Sheets include the following related to leases: (in millions) December 31, Classification 2025 2024 Assets Operating right-of-use assets Other assets $ 67.2 $ 60.4 Liabilities Current lease liabilities Accrued liabilities $ 14.6 $ 10.6 Long-term lease liabilities Other liabilities 55.6 52.7 Total lease liabilities $ 70.2 $ 63.3 The components of lease cost were as follows: (in millions) December 31, 2025 2024 2023 Operating lease cost $ 18.2 $ 15.4 $ 11.0 Variable lease cost 2.8 2.4 1.8 Total lease cost $ 21.0 $ 17.8 $ 12.8 The weighted average remaining lease terms and discount rates for our operating leases were as follows: December 31, 2025 2024 Weighted-average remaining lease term (in years) - operating leases 13.3 13.5 Weighted-average discount rate - operating leases 5.7 % 5.6 % Supplemental cash flow information related to our operating leases were as follows: (in millions) December 31, 2025 2024 2023 Cash paid for amounts included in measurement of operating lease liabilities - operating cash flows $ 12.6 $ 9.8 $ 8.2 Right-of-use assets obtained in exchange for new operating lease liabilities $ 6.8 $ 5.3 $ 16.5 Future minimum operating lease payments are as follows: (in millions) December 31, 2025 2026 $ 17.7 2027 14.1 2028 9.1 2029 7.6 2030 6.2 Thereafter 47.9 Total future minimum operating lease payments $ 102.6 Imputed interest 32.4 Present value of lease liabilities reported $ 70.2 Note 10 – Income Taxes Provision for Income Taxes Our income before taxes is as follows: (in millions) December 31, 2025 2024 2023 U.S. operations $ 91.5 $ 78.2 $ 97.4 Non-U.S. operations 89.5 148.2 142.4 Total income before tax $ 181.0 $ 226.4 $ 239.8 74 Our provision (benefit) for income taxes consists of: (in millions) December 31, 2025 2024 2023 Current Tax: U.S. federal $ 27.8 $ 29.2 $ 31.3 U.S. state and local 3.7 ( 0.1 ) 1.7 Non-U.S. 18.9 28.1 20.6 Total current tax 50.4 57.2 53.6 Deferred Tax: U.S. federal ( 9.2 ) ( 13.4 ) ( 2.8 ) U.S. state and local ( 0.9 ) 1.3 ( 0.4 ) Non-U.S. ( 4.4 ) ( 2.8 ) 1.1 Total deferred tax ( 14.5 ) ( 14.9 ) ( 2.1 ) Total provision for income taxes (a) $ 35.9 $ 42.3 $ 51.5 (a) Included in the above amounts are excess tax benefits from share-based compensation of $ 0.7 million, $ 1.2 million and $ 0.9 million in 2025, 2024 and 2023, respectively, which were reflected as reductions in our provision for income taxes in 2025, 2024 and 2023. A reconciliation of the statutory U.S. federal tax rate to our effective tax rate is as follows: (in millions, except %) December 31, 2025 In USD Percent of Pre-tax Income U.S. Federal Statutory Tax Rate $ 38.0 21.0 % State and Local Income Taxes, Net of Federal Income Tax Effect (a) 3.3 1.8 % Foreign Tax Effects Italy Change in Valuation Allowances 3.1 1.7 % Other ( 0.4 ) ( 0.2 ) % Malta Statutory tax rate difference between Malta and United States ( 2.8 ) ( 1.5 ) % Notional Interest Deduction ( 4.5 ) ( 2.5 ) % Other 0.6 0.3 % United Kingdom ( 2.3 ) ( 1.2 ) % Other foreign jurisdictions 2.4 1.3 % Effects of Changes in Tax Laws or Rates Enacted in the Current Period — — % Effects of Cross-Border Tax Laws Global intangible low-taxed income, net of FTC 1.5 0.8 % Foreign-derived intangible income ( 3.8 ) ( 2.1 ) % Subpart F income, net of FTC 4.2 2.3 % U.S. tax on foreign branches, net of FTC ( 4.1 ) ( 2.3 ) % Tax Credits Research and development tax credits ( 1.6 ) ( 0.9 ) % Change in Valuation Allowances 1.7 0.9 % Nontaxable or Nondeductible Items 3.7 2.0 % Changes in Unrecognized Tax Benefits ( 2.5 ) ( 1.4 ) % Other Adjustments ( 0.6 ) ( 0.2 ) % Effective tax rate $ 35.9 19.8 % (a) As of December 31, 2025, state taxes in Illinois, Massachusetts, Maryland, Texas and Utah made up the majority (greater than 50 percent) of the tax effect in this category. 75 December 31, 2024 2023 Statutory U.S. federal tax rate 21.0 % 21.0 % Increase (reduction) from: Income taxed at non-U.S. rates ( 1.4 ) % ( 2.0 ) % Non-U.S. income inclusion, net of tax credits 0.5 % 2.0 % State and local taxes, net of federal benefit 0.2 % 1.0 % Changes in reserves for uncertain tax positions ( 2.7 ) % ( 1.3 ) % U.S. deduction for foreign - derived intangible income ( 1.0 ) % ( 0.8 ) % Other 2.1 % 1.6 % Effective tax rate 18.7 % 21.5 % On July 4, 2025, the U.S. government enacted The One Big Beautiful Bill Act of 2025 which includes various changes to the U.S. corporate income tax system including, but not limited to, the immediate expensing of qualifying research and development expenses and the permanent extension of certain provisions initially enacted within the Tax Cuts and Jobs Act. Based on the Company’s evaluation of the provisions, these tax law changes did not have a material impact on the Company’s financial statements. The Organization for Economic Co-operation and Development (“OECD”) has proposed a global minimum tax of 15% of reported profits (“Pillar 2 tax ”) that has been agreed upon by over 140 member jurisdictions including the United States. Pillar 2 addresses the risks associated with profit shifting to entities in low tax jurisdictions. The Pillar 2 tax liability for the Company in 2025 was approximately $ 1.3 million. On January 5, 2026, the US Treasury Department and OECD have agreed in principle to adopt a side-by-side tax system that will exempt US parented companies from Pillar 2 taxes starting in 2026. As of December 31, 2025, we have made the following determinations regarding our non-U.S. earnings: (in millions) Permanently reinvested Not permanently reinvested Amount of earnings $ 679.6 $ 107.9 Associated tax N/A (a) $ 0.1 (a) Determination of U.S. income taxes and non-U.S. withholding taxes due upon repatriation of this $ 679.6 million of earnings is not practicable because the amount of such taxes depends upon circumstances existing in numerous taxing jurisdictions at the time the remittance occurs. Tax Related to Comprehensive Income During 2025, 2024 and 2023, tax provisions of $ 0.6 million, $ 0.5 million and $ 0.5 million, respectively, related to changes in pension and post-retirement plan assets and benefit obligations, were recorded to accumulated other comprehensive loss. 76 Deferred Taxes and Valuation Allowances The components of deferred tax assets and liabilities included in our Consolidated Balance Sheets are as follows: (in millions) December 31, 2025 2024 Deferred tax assets: Tax loss and credit carryforwards $ 53.3 $ 46.1 Interest Deduction carryforward 1.5 — Inventories 5.6 7.6 Capitalized Research and Development 16.9 16.1 Accruals and Reserves 9.0 9.5 Pension and Post Retirement Benefits 1.0 3.3 Other 6.2 5.8 Total $ 93.5 $ 88.4 Less: valuation allowance 51.3 43.6 Total deferred tax assets, net of valuation allowance $ 42.2 $ 44.8 Deferred tax liabilities: Basis difference in intangible assets $ ( 160.9 ) $ ( 131.1 ) Basis difference in fixed assets ( 29.7 ) ( 29.7 ) Other ( 0.1 ) ( 0.8 ) Total deferred tax liabilities $ ( 190.7 ) $ ( 161.6 ) Net deferred tax liability $ ( 148.5 ) $ ( 116.8 ) Balance sheet classification: Long-term deferred tax assets $ 2.5 $ 2.2 Long-term deferred tax liability ( 151.0 ) ( 119.0 ) Net deferred tax liability $ ( 148.5 ) $ ( 116.8 ) As of December 31, 2025, we had U.S. federal, U.S. state and non-U.S. tax loss and credit carryforwards that will expire, if unused, as follows: (in millions) Year of expiration U.S. Federal Tax Credits U.S. Federal Tax Losses U.S. State Tax Credits U.S. State Tax Losses Non-U.S. Tax Credits Non- U.S. Tax Losses Total 2026-2030 $ — $ — $ 0.4 $ 141.2 $ — $ — After 2030 10.0 0.5 0.7 368.8 — — Indefinite — — — 6.5 — 52.1 Total tax carryforwards $ 10.0 $ 0.5 $ 1.1 $ 516.5 $ — $ 52.1 Deferred tax asset on tax carryforwards $ 10.0 $ 0.1 $ 0.8 $ 28.5 $ 0.8 $ 13.1 $ 53.3 Valuation allowance on tax carryforwards ( 10.0 ) ( 0.1 ) ( 0.4 ) ( 27.8 ) — ( 13.0 ) ( 51.3 ) Net deferred tax asset on tax carryforwards $ — $ — $ 0.4 $ 0.7 $ 0.8 $ 0.1 $ 2.0 As of December 31, 2025, and 2024, we determined that it was more likely than not that $ 51.3 million and $ 43.6 million, respectively, of our deferred tax assets related to tax loss and credit carryforwards will not be realized. 77 Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of our gross unrecognized tax benefits, excluding interest and penalties, is as follows: (in millions) 2025 2024 2023 Balance of liability as of January 1, $ 8.1 $ 16.5 $ 7.6 Increase (decrease) as a result of: Tax positions taken during a prior year ( 0.5 ) ( 1.0 ) ( 0.2 ) Tax positions taken during the current year 0.5 0.4 0.5 Settlements with taxing authorities — — ( 0.1 ) Lapse of the statute of limitations ( 2.6 ) ( 7.8 ) ( 5.2 ) Other — — 13.9 Balance of liability as of December 31, $ 5.5 $ 8.1 $ 16.5 As of December 31, 2025, 2024 and 2023, the amount of our unrecognized tax benefits that, if recognized, would affect our effective tax rate was $ 6.1 million, $ 8.6 million and $ 18.4 million, respectively. The difference between these amounts and those reflected in the table above relates to (1) offsetting tax effects from other tax jurisdictions, and (2) interest expense, net of deferred taxes. As of December 31, 2025, and 2024, we had gross unrecognized benefits, including interest and penalties of $ 6.6 million, and $ 9.4 million, respectively, included in “Other liabilities” in our Consolidated Balance Sheets. As of December 31, 2023, the Company has recorded a gross unrecognized tax benefit of $ 13.9 million due to the Separation from SpinCo which is included in the above table as “Other.” As of December 31, 2025, and 2024, the Company had an indemnification receivable of $ 1.9 million, and $ 3.1 million, respectively, from SpinCo per the terms of the Tax Matters Agreement described below. The Tax Matters Agreement specifies the rights, responsibilities, and obligations after the Separation with respect to tax liabilities and benefits. The agreement specifies the portion, if any, of this tax liability for which we and SpinCo will bear responsibility, and we and SpinCo agreed to indemnify each other against any amounts for which they are not responsible. We recognize interest and penalties related to unrecognized tax benefits as a component of our income tax expense. During the years ended December 31, 2025, 2024 and 2023, we recognized interest and penalty income of $ 0.2 million, $ 1.0 million and $ 0.1 million, respectively, in our Consolidated and Combined Statements of Operations. As of December 31, 2025, and 2024, we had accrued $ 1.1 million and $ 1.3 million, respectively, of interest and penalties related to unrecognized tax benefits on our Consolidated Balance Sheets. Income Taxes Paid (in millions) December 31, 2025 A breakdown of income taxes paid (net of refunds) is as follows: U.S. Federal $ 26.2 U.S. State 4.8 Non-U.S. 19.9 Total income taxes paid, net $ 50.9 Income taxes paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions: U.S. Federal $ 26.2 Foreign Japan $ 13.7 United Kingdom $ 4.2 78 Income Tax Examinations Our income tax returns are subject to examination by the U.S. federal, U.S. state and local, and non-U.S. tax authorities. With few exceptions, the years open to examinations are as follows: Jurisdiction Year U.S. federal 2022 - 2024 U.S. state and local 2019 - 2024 Non-U.S. 2018 - 2024 Currently, we and our subsidiaries are under examination in various jurisdictions. Note 11 – Accrued Liabilities Accrued liabilities consist of: (in millions) December 31, 2025 2024 Employee related expenses $ 58.5 $ 53.4 Contract liabilities 87.3 71.4 Current lease liabilities 14.6 10.6 Accrued interest 7.6 6.6 Warranty 10.9 6.2 Share deposit liabilities 1 14.4 — Other 79.7 63.0 Total $ 273.0 $ 211.2 1 Share deposit liabilities represent ordinary shares that the Company is obligated to issue related to the acquisition of Antares Vision. See Note 3, “Acquisitions” for further details. Note 12 – Other Liabilities A summary of the other liabilities is as follows: (in millions) December 31, 2025 2024 Long-term lease liabilities $ 55.6 $ 52.7 Long-term contract liabilities 17.0 13.5 Accrued taxes 6.6 9.4 Share deposit liabilities 1 21.4 — Stock-based compensation liabilities 1 12.0 — Other 3.4 4.6 Total $ 116.0 $ 80.2 1 Share deposit liabilities represent Class B shares that the Company is obligated to issue related to the acquisition of Antares Vision. The Class B shares that have been granted are accounted for as stock‑based compensation under ASC Topic 718 “Compensation - Stock Compensation” (“ASC 718”). See Note 3, “Acquisitions” for further details. 79 Note 13 - Commitments and Contingencies We regularly review the status of lawsuits, claims and proceedings that have been or may be asserted against us relating to the conduct of our business, including those pertaining to product liability, patent infringement, commercial, employment, employee benefits, environmental and stockholder matters. We record a provision for a liability for such matters when it is considered probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions, if any, are reviewed quarterly and adjusted as additional information becomes available. If either or both criteria are not met, we assess whether there is at least a reasonable possibility that a loss, or additional losses, may have been incurred. If there is a reasonable possibility that a loss or additional loss may have been incurred for such matters, we disclose the estimate of the amount of loss or range of loss, disclose that the amount is immaterial, or disclose that an estimate of loss cannot be made, as applicable. We believe that as of December 31, 2025, there was no reasonable possibility that a material loss, or any additional material losses, may have been incurred for such matters, and that adequate provision has been made in our Consolidated and Combined Financial Statements for the potential impact of all such matters. Note 14 – Financing Our debt as of December 31, 2025, and 2024 consisted of the following: (in millions) December 31, 2025 2024 Term Loan A $ 9.1 $ — Revolving Facility 126.0 210.0 Total short-term borrowings (a) $ 135.1 $ 210.0 Term Loan A $ 351.4 $ — Term Loan B 120.7 — 6.55 % notes due November 2036 198.8 198.7 4.20 % notes due March 2048 346.9 346.8 Other deferred financing costs associated with credit facilities ( 13.4 ) ( 4.9 ) Total long-term debt (a) $ 1,004.4 $ 540.6 (a ) Debt discounts and debt issuance costs totaled $ 30.7 million and $ 9.4 million as of December 31, 2025, and 2024, respectively, and have been netted against the aggregate principal amounts of the related debt in the components of the debt table above, where applicable. Credit Faciliti es - On March 17, 2023, we became party to a senior secured credit agreement (the “Credit Agreement”) which originally provided for a $ 500 million, five-year revolving credit facility (the “Revolving Facility”) and we entered into a $ 350 million, three -year term loan facility (the “Term Facility”). Funding for both facilities became available in connection with the Separation. On December 9, 2024, we entered into an amendment to the Credit Agreement which increased the Revolving Facility by $ 200 million to an aggregate $ 700 million and provided a delayed draw term loan (the “Term Loan A”) of £ 300 million. On the same day, proceeds from the Revolving Facility were used to repay the outstanding Term Facility. On December 15, 2025, in connection with the closing of the first phase of the Antares Vision acquisition, we amended our Credit Agreement (the “Fifth Amendment”) to provide for a new € 430 million senior secured delayed draw term loan facility (the “Term Loan B”) with a maturity date of December 15, 2032. In addition, the Fifth Amendment provides for maturity extensions on our existing Term Loan A and Revolving Facility to December 15, 2030 and increased the Revolving Facility to $ 800.0 million. 80 During the year ended December 31, 2025, we borrowed: • $ 406.5 million and repaid $ 490.5 million on the Revolving Facility to fund working capital requirements. • £ 300.0 million, or $ 400.4 million, on the Term Loan A to fund the DLR acquisition and repaid $ 40.9 million. • € 112.1 million, or $ 131.6 million, on the Term Loan B to fund the Antares Vision acquisition. The Revolving Facility allows us to borrow, repay and re-borrow funds from time to time prior to the maturity of the Revolving Facility without any premium or penalty, subject to customary borrowing conditions for facilities of this type and the reimbursement of breakage costs. Borrowings under the Term Loan A are prepayable without premium or penalty, subject to customary breakage costs. Borrowings under the Term Loan B are prepayable (i) prior to June 15, 2026, subject to certain customary exceptions, subject to a 1.00 % premium if such prepayment is made in connection with a repricing transaction and (ii) on and after June 15, 2026, without premium or penalty, and, in each case, subject to customary reimbursement of breakage costs. Under the Credit Agreement, variable interest rates apply with respect to (i) the Term Loan B, for which the interest rate is determined as an adjusted term Euro Interbank Offered Rate (“EURIBOR”) for the applicable interest period plus a margin ranging from 2.25 % to 2.75 %, with such margin determined based on our first lien net leverage ratio, (ii) with respect to the Term Loan A, for which the interest rate is determined as, at our election, either (a) a Sterling Overnight Index Average (“SONIA”) for the applicable interest period plus a margin ranging from 1.50 % to 2.25 % or (2) a base rate plus a margin ranging from 0.50 % to 1.25 %, in each case, with such margin as determined by the lower of ratings issued by Moody’s and S&P of senior, unsecured, long-term indebtedness (the “Ratings”) and our total net leverage ratio and (iii) with respect to the Revolving Facility, for which the interest rate is determined as, at our election, either (a) subject to the elected currency, an adjusted Secured Overnight Financing Rate (“SOFR”), EURIBOR or SONIA for the applicable interest period plus a margin ranging from 1.50 % to 2.25 % or (b) a base rate plus a margin ranging from 0.50 % to 1.25 %, in each case, with such margin determined based on the lower of the Ratings and our total net leverage ratio, and (iii) with respect to the Revolving Facility, for which the interest rate is determined as, at our election, either (a) subject to the elected currency, an adjusted Secured Overnight Financing Rate (“SOFR”), EURIBOR or SONIA for the applicable interest period plus a margin ranging from 1.50 % to 2.25 % or (b) a base rate plus a margin ranging from 0.50 % to 1.25 %, in each case, with such margin determined based on the lower of the Ratings and our total net leverage ratio. We are required to pay a fee on undrawn commitments under the Revolving Facility at a rate per annum that ranges from 0.20 % to 0.35 %, based on the lower of the Ratings and our total net leverage ratio. The Credit Agreement contains customary affirmative and negative covenants for credit facilities of this type, including limitations on our and our subsidiaries with respect to indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of all or substantially all assets, transactions with affiliates, investments, hedging arrangements and amendments to our organizational documents or to certain subordinated debt agreements. As of the last day of each fiscal quarter, our total net leverage ratio cannot exceed (i) prior to the completion of the Antares Vision acquisition, 3.50 to 1.00 (provided that, at our election, such maximum ratio may be increased to 4.00 to 1.00 for specified periods following our consummation of certain material acquisitions) and (ii) after the completion of the Antares Vision acquisition, for the (1) fiscal quarter in which the Antares Vision acquisition is completed, 5.50 to 1.00, (2) for the first fiscal quarter thereafter, 5.25 to 1.00, (3) for the second fiscal quarter thereafter, 5.00 to 1.00, (4) for the third fiscal quarter thereafter, 4.75 to 1.00, (5) for the fourth fiscal quarter thereafter, 4.50 to 1.00 and (6) for any subsequent fiscal quarter, 4.25 to 1.00 (provided that, at our election, for any period in which the completion of the Antares Vision acquisition occurs or any subsequent period, such maximum ratio may be increased by 0.75 to 1.00, but not in excess of 5.50 to 1.00, for specified periods following our consummation of certain material acquisitions). Prior to the completion of the Antares Vision acquisition, as of the last day of each fiscal quarter, our minimum interest coverage ratio must be at least 3.00 to 1.00. The Credit Agreement also includes customary events of default, including failure to pay principal, interest or fees when due, failure to comply with covenants, any representation or warranty made by us or any of our material subsidiaries being false in any material respect, default under certain other material indebtedness, certain insolvency or receivership events affecting us and our material subsidiaries, certain ERISA events, material judgments and a change in control, in each case, subject to cure periods and thresholds where customary. 81 Bridge Facility - In connection with the Antares Vision acquisition (see note 3 “Acquisition”), on September 15, 2025, the Company entered into a commitment for a senior secured 364-day Bridge Facility (“Bridge Facility”) of $ 602 million and a backstop facility (the “Backstop Facility”) of $ 831 million. The Backstop Facility was in place until October 7, 2025 when the amendment to the Credit Agreement was ratified. The Bridge Facility was automatically terminated upon securing the Term Loan B, described above. 6.55 % notes due November 2036 - In November 2006, we issued 30-year notes having an aggregate principal amount of $ 200 million. The notes are secured, senior obligations of us that mature on November 15, 2036, and bear interest at 6.55 % per annum, payable semi-annually on May 15 and November 15 of each year. The notes have no sinking fund requirement, but may be redeemed, in whole or in part, at our option. These notes do not contain any material debt covenants or cross default provisions. If there is a change in control of the Company, and if consequently, the notes are rated below investment grade by both Moody’s Investors Service and Standard & Poor’s, then holders of the notes may require us to repurchase them, in whole or in part, for 101 % of the principal amount plus accrued and unpaid interest. Debt issuance costs are deferred and included in long-term debt and are amortized as a component of interest expense over the term of the notes. Including debt issuance cost amortization, these notes have an effective annualized interest rate of 6.67 %. The notes were issued under an indenture dated as of April 1, 1991. The indentures contain certain restrictions, including a limitation that restricts our ability and the ability of certain of our subsidiaries to create or incur secured indebtedness, enter certain sale and leaseback transactions, and consolidate, merge or transfer all or substantially all of our assets and the assets of our subsidiaries. 4.20 % notes due March 2048 - On February 5, 2018, we completed a public offering of $ 350 million aggregate principal amount of 4.20 % Senior Notes due 2048 (the "2048 Notes"). The 2048 Notes bear interest at a rate of 4.20 % per annum and mature on March 15, 2048. Interest on the 2048 Notes is payable on March 15 and September 15 of each year, commencing on September 15, 2018. These notes do not contain any material debt covenants or cross default provisions. If there is a change in control of the Company, and if consequently, the notes are rated below investment grade by both Moody’s Investors Service and Standard & Poor’s, then holders of the notes may require us to repurchase them, in whole or in part, for 101 % of the principal amount plus accrued and unpaid interest. Debt issuance costs are deferred and included in long-term debt and are amortized as a component of interest expense over the term of the notes. Including debt issuance cost amortization, these notes have an effective annualized interest rate of 4.29 %. The notes were issued under an indenture dated as of February 5, 2018. The indentures contain certain restrictions, including a limitation that restricts our ability and the ability of certain of our subsidiaries to create or incur secured indebtedness, enter certain sale and leaseback transactions, and consolidate, merge or transfer all or substantially all of our assets and the assets of our subsidiaries. Other – As of December 31, 2025, we had open standby letters of credit on our behalf of $ 97.5 million issued pursuant to a $ 224.2 million uncommitted Letter of Credit Reimbursement Agreement, and certain other credit lines. As of December 31, 2024, we had open standby letters of credit on our behalf of $ 38.8 million issued pursuant to a $ 176.1 million uncommitted Letter of Credit Reimbursement Agreement, and certain other credit lines. As of December 31, 2025, our total debt to total capitalization ratio was 47.7 %, computed as follows: (in millions) Short-term borrowings $ 135.1 Long-term debt 1,004.4 Total debt $ 1,139.5 Equity $ 1,249.9 Capitalization $ 2,389.4 Total indebtedness to capitalization 47.7 % 82 Note 15 – Fair Value Measurements The following tables provide information regarding the Company’s assets and liabilities measured at fair value as of December 31, 2025, and 2024. December 31, 2025 (in millions) Location on Consolidated Balance Sheets Active Markets for Identical Assets and Liabilities Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Total Fair Value Liabilities Foreign exchange contract not designated as hedging instrument 1 Accrued Liabilities $ — $ — $ — $ — Long-term debt Long-term debt $ — $ 440.3 $ — $ 440.3 Performance-based restricted share units Other Liabilities $ 1.0 $ — $ — $ 1.0 Contingent Liability Other Liabilities $ — $ — $ 1.3 $ 1.3 1 Notional value of $ 11.7 million December 31, 2024 (in millions) Location on Consolidated Balance Sheets Active Markets for Identical Assets and Liabilities Level 1 Other Observable Inputs Level 2 Unobservable Inputs Level 3 Total Fair Value Assets Foreign exchange contract not designated as hedging instrument Accounts Receivable $ — $ 0.1 $ — $ 0.1 Liabilities Foreign exchange contract not designated as hedging instrument 1 Accrued Liabilities $ — $ 3.1 $ — $ 3.1 Long-term debt Long-term debt $ — $ 430.1 $ — $ 430.1 Performance-based restricted share units Other Liabilities $ 1.6 $ — $ — $ 1.6 Contingent Liability Other Liabilities $ — $ — $ 1.5 $ 1.5 1 Notional value of $ 65.0 million Note 16 – Restructuring Overview 2025 Restructuring - In 2025, we initiated restructuring actions as follows: • We recorded $ 12.1 million of restructuring expense in the SAT segment, predominantly related to severance charges, associated with the integration of the DLR and OpSec businesses. Certain remaining actions, including completion of facility‑related exit activities are expected to continue into 2026. Total program costs are expected to be in the range of $15 million to $17 million. • We recorded $ 4.7 million of restructuring expense in the CPI segment, predominantly related to severance charges. We continue to evaluate and align CPI’s cost structure with existing economic conditions which could result in additional actions in 2026. 2024 Restructuring - In the first and fourth quarters of 2024, in response to challenging industry conditions, we initiated workforce reductions in CPI, incurring $ 10.1 million of cumulative severance charges, net through December 31, 2025. We do not expect to incur significant additional costs to complete these actions. We have substantially completed the restructuring program in 2025. 2022 Restructuring - In the fourth quarter of 2022, in response to economic uncertainty, we initiated workforce reductions in CPI, incurring $ 0.5 million of severance charges and other costs for the year ended December 31, 2023. The program was completed in 2025. 83 Restructuring Charges We recorded restructuring charges which are reflected in the Consolidated and Combined Statements of Operations, as follows: (in millions) For the year ended December 31, 2025 2024 2023 Crane Payment Innovations $ 4.7 $ 10.1 $ 0.5 Security and Authentication Technologies 12.1 — — Total restructuring charges $ 16.8 $ 10.1 $ 0.5 The following table summarizes our restructuring charges by program, cost type and segment for the years ended December 31, 2025, 2024 and 2023: For the years ended December 31, 2025 2024 2023 (in millions) Severance Other Total Severance Other Total Severance Other Total Crane Payment Innovations $ 4.4 $ 0.3 $ 4.7 $ — $ — $ — $ — $ — $ — Security and Authentication Technologies 10.4 1.7 12.1 — — — — — — 2025 Restructuring 14.8 2.0 16.8 — — — — — — Crane Payment Innovations $ — $ — $ — $ 10.1 $ — $ 10.1 $ — $ — $ — 2024 Restructuring — — — 10.1 — 10.1 — — — Crane Payment Innovations $ — $ — $ — $ — $ — $ — $ 0.1 $ 0.4 $ 0.5 2022 Restructuring — — — — — — 0.1 0.4 0.5 Total $ 14.8 $ 2.0 $ 16.8 $ 10.1 $ — $ 10.1 $ 0.1 $ 0.4 $ 0.5 The following table summarizes the cumulative restructuring charges incurred through December 31, 2025. Cumulative Restructuring Charges (in millions) Severance Other Total Crane Payment Innovations $ 4.4 $ 0.3 $ 4.7 Security and Authentication Technologies 10.4 1.7 12.1 2025 Restructuring $ 14.8 $ 2.0 $ 16.8 Crane Payment Innovations $ 10.1 $ — $ 10.1 2024 Restructuring $ 10.1 $ — $ 10.1 Crane Payment Innovations $ 5.8 $ 0.9 $ 6.7 2022 Restructuring $ 5.8 $ 0.9 $ 6.7 84 Restructuring Liability The following table summarizes the accrual balances related to these restructuring charges by program: (in millions) 2025 Restructuring 2024 Restructuring 2022 Restructuring Total Severance: Balance as of December 31, 2023 (a) $ — $ — $ 0.6 $ 0.6 Expense (b) — 10.1 — 10.1 Utilization — ( 2.9 ) ( 0.4 ) ( 3.3 ) Balance as of December 31, 2024 (a) $ — $ 7.2 $ 0.2 $ 7.4 Expense (b) 14.8 — — 14.8 Utilization ( 7.6 ) ( 6.4 ) ( 0.2 ) ( 14.2 ) Balance as of December 31, 2025 (a) $ 7.2 $ 0.8 $ — $ 8.0 (a) Included within Accrued Liabilities in the Consolidated Balance Sheets. (b) Included within “Restructuring charges” in the Consolidated and Combined Statements of Operations. 85 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None