Crane NXT, Co. 10-Q

ITEM 1: FINANCIAL STATEMENTS CRANE NXT, CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, (in millions, except per share data) 2026 2025 2026 2025 Net sales $ 493.2 $ 404.4 $ 880.9 $ 734.7 Operating costs and expenses: Cost of sales 284.6 235.6 516.4 425.7 Selling, general and administrative 136.3 113.6 266.9 216.5 Restructuring charges 3.4 7.3 6.5 7.3 Operating profit 68.9 47.9 91.1 85.2 Other (expense) income: Interest expense ( 21.0 ) ( 16.4 ) ( 38.8 ) ( 27.9 ) Equity investment income 0.1 0.3 4.8 0.4 Miscellaneous (expense) income, net ( 0.1 ) 1.0 — 3.2 Total other expense, net ( 21.0 ) ( 15.1 ) ( 34.0 ) ( 24.3 ) Income before income taxes 47.9 32.8 57.1 60.9 Provision for income taxes 11.7 7.8 14.1 14.2 Net income before allocation to noncontrolling interest 36.2 25.0 43.0 46.7 Less: Noncontrolling interest in subsidiaries’ earnings 0.8 0.1 1.2 0.1 Net income attributable to common shareholders $ 35.4 $ 24.9 $ 41.8 $ 46.6 Earnings per share: Basic $ 0.61 $ 0.43 $ 0.73 $ 0.81 Diluted $ 0.61 $ 0.43 $ 0.72 $ 0.80 Average shares outstanding: Basic 57.5 57.4 57.5 57.3 Diluted 58.0 57.9 58.0 57.9 Dividends per share $ 0.18 $ 0.17 $ 0.36 $ 0.34 See Notes to Unaudited Condensed Consolidated Financial Statements. 3 CRANE NXT, CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, (in millions) 2026 2025 2026 2025 Net income before allocation to noncontrolling interest $ 36.2 $ 25.0 $ 43.0 $ 46.7 Components of other comprehensive (loss) income, net of tax Currency translation adjustment ( 1.5 ) 50.0 ( 12.3 ) 81.1 Changes in pension and postretirement plan assets and benefit obligation, net of tax ( 0.2 ) ( 0.3 ) ( 0.4 ) ( 0.5 ) Other comprehensive (loss) income, net of tax ( 1.7 ) 49.7 ( 12.7 ) 80.6 Comprehensive income before allocation to noncontrolling interest $ 34.5 $ 74.7 $ 30.3 $ 127.3 Less: Noncontrolling interest in comprehensive income 0.8 0.1 1.2 0.1 Comprehensive income attributable to common shareholders $ 33.7 $ 74.6 $ 29.1 $ 127.2 See Notes to Unaudited Condensed Consolidated Financial Statements. 4 CRANE NXT, CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions) June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 231.4 $ 233.8 Accounts receivable, net of allowance for credit losses of $ 11.2 as of June 30, 2026 and $ 8.9 as of December 31, 2025 406.9 351.8 U.S. and foreign taxes on income 18.9 12.7 Inventories, net: Finished goods 65.8 26.6 Finished parts and subassemblies 30.5 23.8 Work in process 31.6 29.4 Raw materials 110.6 89.7 Inventories, net 238.5 169.5 Other current assets 84.8 85.1 Total current assets 980.5 852.9 Property, plant and equipment: Cost 716.9 688.9 Less: accumulated depreciation 398.5 385.1 Property, plant and equipment, net 318.4 303.8 Long-term deferred tax assets 13.0 2.5 Investment in equity affiliates and joint ventures 8.2 139.4 Intangible assets, net 745.7 557.2 Goodwill 1,436.0 1,164.0 Other assets 93.3 96.6 Total assets $ 3,595.1 $ 3,116.4 See Notes to Unaudited Condensed Consolidated Financial Statements. 5 CRANE NXT, CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions, except per share and share data) June 30, 2026 December 31, 2025 Liabilities and equity Current liabilities: Short-term borrowings $ 193.9 $ 135.1 Accounts payable 118.8 132.3 Contract liabilities 158.7 87.3 Accrued liabilities 199.5 185.7 U.S. and foreign taxes on income 21.9 28.7 Total current liabilities 692.8 569.1 Long-term debt 1,260.0 1,004.4 Accrued pension and postretirement benefits 28.7 19.1 Long-term deferred tax liability 204.8 151.0 Other liabilities 123.0 116.0 Total liabilities 2,309.3 1,859.6 Commitments and contingencies (Note 11) Redeemable noncontrolling Interests 20.7 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 72.4 72.4 Capital surplus 1,712.1 1,716.5 Retained earnings 395.6 374.5 Accumulated other comprehensive loss ( 112.6 ) ( 99.9 ) Treasury stock ( 801.2 ) ( 810.5 ) Total shareholders’ equity 1,266.3 1,253.0 Nonredeemable noncontrolling interests ( 1.2 ) ( 3.1 ) Total equity 1,265.1 1,249.9 Total liabilities, redeemable noncontrolling interests, and equity $ 3,595.1 $ 3,116.4 Share data: Common shares issued 72,441,647 72,441,647 Less: Common shares held in treasury 14,884,688 15,000,106 Common shares outstanding 57,556,959 57,441,541 See Notes to Unaudited Condensed Consolidated Financial Statements. 6 CRANE NXT, CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, (in millions) 2026 2025 Operating activities: Net income before allocation to noncontrolling interest $ 43.0 $ 46.7 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation and amortization 68.5 48.7 Stock-based compensation expense 1 19.2 6.0 Income from equity investments ( 4.8 ) ( 0.4 ) Deferred income taxes ( 5.4 ) ( 12.8 ) Cash used for operating working capital ( 55.8 ) ( 48.1 ) Long-term contract liabilities 8.6 ( 0.2 ) Other ( 0.6 ) 3.8 Total provided by operating activities 72.7 43.7 Investing activities: Proceeds from disposition of assets 5.1 — Payment for acquisitions, net of cash acquired ( 225.4 ) ( 394.0 ) Capital expenditures ( 23.4 ) ( 20.1 ) Settlement of forward contracts ( 0.4 ) 1.5 Total used for investing activities ( 244.1 ) ( 412.6 ) Financing activities: Dividends paid ( 20.7 ) ( 19.5 ) Proceeds from stock options exercised 0.3 1.3 Purchase of noncontrolling interest ( 0.2 ) — Payment of tax withholding on equity awards vested ( 3.0 ) ( 5.8 ) Debt issuance costs ( 2.0 ) ( 0.8 ) Repayment of short-term debt ( 115.1 ) — Proceeds from revolving credit facility 159.4 348.0 Repayments of revolving credit facility ( 101.0 ) ( 342.0 ) Proceeds from term loan 366.9 400.4 Repayment of term loan ( 112.4 ) ( 36.8 ) Finance lease repayments ( 1.9 ) — Total provided by financing activities 170.3 344.8 Effect of exchange rates on cash, cash equivalents and restricted cash ( 4.0 ) 15.2 (Decrease) increase in cash, cash equivalents and restricted cash ( 5.1 ) ( 8.9 ) Cash, cash equivalents and restricted cash at beginning of period 2 246.2 173.4 Cash, cash equivalents and restricted cash at end of period 3 $ 241.1 $ 164.5 1 Includes $10.7 million liability-classified stock-based compensation issued to senior management of Antares Vision. See Note 2, “Acquisitions” for further details. 2 Includes both current and non-current balances of restricted cash. Current restricted cash, included within “Other current assets” in our Unaudited Condensed 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 Unaudited Condensed Consolidated Balance Sheets, was $ 7.2 million and $ 6.8 million as of December 31, 2025, and 2024, respectively. 3 Includes both current and non-current balances of restricted cash. Current restricted cash, included within “Other current assets” in our Unaudited Condensed Consolidated Balance Sheets, was $ 2.7 million and $ 0.9 million as of June 30, 2026, and 2025, respectively. Non-current restricted cash, included within “Other assets” in our Unaudited Condensed Consolidated Balance Sheets, was $ 7.0 million and $ 11.1 million as of June 30, 2026, and 2025, respectively. See Notes to Unaudited Condensed Consolidated Financial Statements. 7 CRANE NXT, CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, (in millions) 2026 2025 Detail of cash used for operating working capital: Accounts receivable $ ( 8.3 ) $ 0.9 Inventories ( 24.5 ) ( 7.9 ) Other current assets 2.7 ( 9.9 ) Accounts payable ( 35.7 ) ( 23.8 ) Accrued liabilities 23.7 11.9 U.S. and foreign taxes on income ( 13.7 ) ( 19.3 ) Total $ ( 55.8 ) $ ( 48.1 ) Supplemental disclosure of cash flow information: Interest paid $ 35.0 $ 25.7 Income taxes paid, net $ 33.1 $ 42.2 Unpaid capital expenditures $ 2.0 $ 2.4 See Notes to Unaudited Condensed Consolidated Financial Statements. 8 CRANE NXT, CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (in millions, except share data) Common Shares Issued at Par Value Capital Surplus Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Share-holders’ Equity Non-controlling Interest Total Balance as of December 31, 2025 $ 72.4 $ 1,716.5 $ 374.5 $ ( 99.9 ) $ ( 810.5 ) $ 1,253.0 $ ( 3.1 ) $ 1,249.9 Noncontrolling interest of acquired entity — — — — — — 0.9 0.9 Net income — — 6.4 — — 6.4 0.4 6.8 Cash dividends ($ 0.18 per share) — — ( 10.3 ) — — ( 10.3 ) — ( 10.3 ) Redeemable noncontrolling interest adjustment — ( 0.2 ) — — — ( 0.2 ) 0.2 — Exercise of stock options of 2,032 shares — — — — — — — — Impact from settlement of stock-based awards, net of shares acquired — ( 11.1 ) — — 8.2 ( 2.9 ) — ( 2.9 ) Stock-based compensation expense — 4.1 — — — 4.1 — 4.1 Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — ( 0.2 ) — ( 0.2 ) — ( 0.2 ) Currency translation adjustment — — — ( 10.8 ) — ( 10.8 ) — ( 10.8 ) Balance as of March 31, 2026 $ 72.4 $ 1,709.3 $ 370.6 $ ( 110.9 ) $ ( 802.3 ) $ 1,239.1 $ ( 1.6 ) $ 1,237.5 Noncontrolling interest of acquired entity — — — — — — ( 1.1 ) ( 1.1 ) Purchase of noncontrolling interest — ( 0.2 ) — — — ( 0.2 ) — ( 0.2 ) Net income — — 35.4 — — 35.4 0.8 36.2 Cash dividends ($ 0.18 per share) — — ( 10.4 ) — — ( 10.4 ) — ( 10.4 ) Redeemable noncontrolling interest adjustment — ( 0.2 ) — — — ( 0.2 ) 0.2 — Exercise of stock options of 11,361 shares — — — — 0.3 0.3 — 0.3 Impact from settlement of stock-based awards, net of shares acquired — ( 0.8 ) — — 0.8 — — — Stock-based compensation expense — 4.0 — — — 4.0 — 4.0 Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — ( 0.2 ) — ( 0.2 ) — ( 0.2 ) Currency translation adjustment — — — ( 1.5 ) — ( 1.5 ) 0.5 ( 1.0 ) Balance as of June 30, 2026 $ 72.4 $ 1,712.1 $ 395.6 $ ( 112.6 ) $ ( 801.2 ) $ 1,266.3 $ ( 1.2 ) $ 1,265.1 See Notes to Unaudited Condensed Consolidated Financial Statements. 9 CRANE NXT, CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (in millions, except share data) Common Shares Issued at Par Value Capital Surplus Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Shareholders’ Equity Non-controlling Interest Total Balance as of December 31, 2024 $ 72.4 $ 1,719.9 $ 268.4 $ ( 172.6 ) $ ( 823.2 ) $ 1,064.9 $ — $ 1,064.9 Net income — — 21.7 — — $ 21.7 — 21.7 Cash dividends ($ 0.17 per share) — — ( 9.7 ) — — $ ( 9.7 ) — ( 9.7 ) Exercise of stock options of 21,879 shares — — — — 0.6 $ 0.6 — 0.6 Impact from settlement of stock-based awards, net of shares acquired — ( 11.7 ) — — 7.2 $ ( 4.5 ) — ( 4.5 ) Stock-based compensation expense — 2.7 — — — $ 2.7 — 2.7 Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — ( 0.2 ) — $ ( 0.2 ) — ( 0.2 ) Currency translation adjustment — — — 31.1 — $ 31.1 — 31.1 Balance as of March 31, 2025 $ 72.4 $ 1,710.9 $ 280.4 $ ( 141.7 ) $ ( 815.4 ) $ 1,106.6 $ — $ 1,106.6 Noncontrolling interest of acquired entity — — — — — — 1.7 1.7 Net income — — 24.9 — — 24.9 0.1 25.0 Cash dividends ($ 0.17 per share) — — ( 9.8 ) — — ( 9.8 ) — ( 9.8 ) Exercise of stock options of 21,180 shares — — — — 0.7 0.7 — 0.7 Impact from settlement of stock-based awards, net of shares acquired — ( 1.2 ) — — 1.0 ( 0.2 ) — ( 0.2 ) Stock-based compensation expense — 3.0 — — — 3.0 — 3.0 Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — ( 0.3 ) — ( 0.3 ) — ( 0.3 ) Currency translation adjustment — — — 50.0 — 50.0 — 50.0 Balance as of June 30, 2025 $ 72.4 $ 1,712.7 $ 295.5 $ ( 92.0 ) $ ( 813.7 ) $ 1,174.9 $ 1.8 $ 1,176.7 See Notes to Unaudited Condensed Consolidated Financial Statements. 10 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1 - Organization and Basis of Presentation Crane NXT is a global leader in authentication and traceability technologies that secure, detect, and authenticate what matters most to its customers. Through its two market-leading reporting segments: Security and Authentication Technologies (“SAT”) and Detection and Traceability Technologies (“DTT”), Crane NXT provides innovative solutions that prevent the counterfeiting of products and identities and ensure the quality, authenticity, and traceability of products across the supply chain. See Note 3, “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,” “the Company”, “we,” “us” and “our” refer to Crane NXT, Co. and its subsidiaries. Basis of Presentation The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting and, therefore, reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Crane NXT Consolidated and Combined Financial Statements and Notes to Consolidated and Combined Financial Statements for the year ended December 31, 2025, previously filed on Form 10-K on February 26, 2026. 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. Certain prior period comparative amounts have been reclassified to conform to the current period presentation. Such reclassifications were not material and did not affect the unaudited Condensed Consolidated Financial Statements. Recent Accounting Pronouncements 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 and amortization) 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. Note 2 - Acquisitions Antares Vision Acquisition 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. 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. Following the initial investment and in accordance with the Investor and Shareholder Agreement (“ISA”), Crane NXT launched a mandatory tender offer and subsequent squeeze-out (collectively the second phase) under applicable Italian law to acquire the remaining shares of Antares Vision as of March 31, 2026 (the “Acquisition Date”) for € 244.2 million (approximately $ 281.9 million). The total consideration for phase one and phase two was $ 417.1 million. Antares Vision has been delisted from the Euronext Milan stock exchange and is a wholly owned subsidiary of the Company as of March 31, 2026. 11 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the period prior to obtaining control, the Company recognized its proportionate share of Antares Vision’s results of operations under the equity method of accounting. Upon obtaining control, the Company remeasured its previously held equity interest in Antares Vision to its acquisition‑date fair value of $ 135.4 million in accordance with ASC 805, “Business Combinations” (“ASC 805”) and recognized a remeasurement gain of $ 4.7 million, which is included in "Equity investment income” in the Unaudited Condensed Consolidated Statements of Operations for the six months ended June 30, 2026. The acquisition-date fair value of the previously held interest was determined using Level 1 inputs under ASC 820, “Fair Value Measurement”, using the quoted price of Antares Vision’s publicly traded shares as of the acquisition date, which was € 5.00 per share. The acquisition was funded through the Term Loan B, as described in Note 12, “Financing.” In connection with the acquisition, the Company had issued 3,635,104 ordinary shares and 3,635,104 Class B shares of ITT to certain Antares Vision personnel at € 5.00 per share. Following the acquisition and delisting of Antares Vision, the fair value of the ordinary shares and Class B shares was estimated using a market approach based on a calibrated transaction multiple methodology, which classifies these measurements within Level 3 of the fair value hierarchy. The valuation incorporates the purchase price paid for Antares Vision in the acquisition, the change in operating performance and the change in valuation multiples derived from selected guideline public companies. As of June 30, 2026, the fair value of the ordinary shares was $ 20.7 million and the fair value of the Class B shares was $ 36.3 million. The ordinary shares are classified as a redeemable noncontrolling interest and are presented in temporary equity in the Unaudited Condensed Consolidated Balance Sheet as “Redeemable noncontrolling interests.” The Class B shares are accounted for as stock‑based compensation granted to employees under ASC 718 “Compensation - Stock Compensation” (“ASC 718”). Under the ISA, the Class B shares convert into ordinary shares of ITT based on a multiplier dependent on ITT’s 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 each reporting period. Compensation expense is determined by applying the fair value of the Class B shares to the number of Class B shares expected to be issued based on management’s best estimate of the expected performance outcome under the awards’ performance‑based conversion features. These estimates, including the expected conversion outcome of the Class B shares and the related fair value determination, 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. During the three-and-six months ended June 30, 2026, the Company recognized a $ 0.0 million and $ 6.8 million benefit from the remeasurement of these liability‑classified stock‑based compensation awards. Because the first tranche of Class B shares was granted while Antares Vision was an equity method investee, this change in the stock-based compensation liability prior to the date control was obtained was recognized in “Equity investment income” in the Unaudited Condensed Consolidated Statements of Operations during the first quarter. Subsequent changes in stock-based compensation liability are recognized as stock‑based compensation expense through “Selling, general and administrative” in the Unaudited Condensed Consolidated Statements of Operations. The Class B shares issued in connection with the second phase of the acquisition occurred when the recipients were employees of the Company. Under ASC 718, the initial recognition and subsequent remeasurement of the Class B share liability represent compensation for future services without a service condition. Accordingly, for the three-and-six months ended June 30, 2026, the Company recognized $ 0.0 million and $ 10.7 million, respectively, of stock-based compensation expense in “Selling, general and administrative” expense in the Unaudited Condensed Consolidated Statements of Operations, with a corresponding increase to the liability recorded in “Other liabilities” in the Unaudited Condensed Consolidated Balance Sheets. As of June 30, 2026, the stock-based compensation liability associated with Class B shares was $ 36.3 million. 12 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Allocation of Consideration Transferred to Net Assets Acquired The amounts below represent the preliminary estimation of the fair value of identifiable assets acquired and liabilities assumed from the acquisition of Antares Vision, 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”). Net assets acquired (in millions) Cash and cash equivalents $ 57.1 Accounts receivable, net 54.1 Inventories, net 47.9 Other current assets 20.3 Property, plant and equipment 32.7 Other non-current assets 11.4 Intangible assets 230.6 Goodwill 277.1 Total assets acquired $ 731.2 Short-term borrowings $ 126.3 Contract liabilities 44.8 Other current liabilities 63.5 Long-term debt 5.8 Other liabilities 73.7 Total assumed liabilities $ 314.1 Net assets acquired $ 417.1 The following is a summary of the purchase consideration transferred: Fair value of previously held equity investment $ 135.4 Cash consideration transferred to acquire control 281.9 Fair value of nonredeemable noncontrolling interest ( 0.2 ) Total consideration of Antares Vision acquisition $ 417.1 The amount allocated to goodwill reflects expected sales and operational 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 $ 146.6 12.3 Trade names 17.3 6.0 Developed technology 46.2 5.0 Backlog 20.5 2.5 Total acquired intangible assets $ 230.6 13 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The fair values of the customer relationships and backlog intangible assets were determined by using the multi-period excess earnings method under the income approach, which is a commonly accepted valuation method. Under this method, the net earnings attributable to the asset being measured are isolated from the projected cash flows of the consolidated business over the remaining economic life of the intangible asset 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 relationships are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated remaining weighted average useful life of 12.3 years and the backlog asset is being amortized over 2.5 years. The fair values of the developed technology and trade name intangible assets were determined by the relief-from-royalty method under the income approach. This method is based on the assumption that in lieu of ownership of the asset, a company would be willing to pay a royalty in order to exploit the related benefits of the asset. Therefore, the cost savings 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 of the asset. The technology assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated remaining useful life of 5 years and the trade names are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 6 years. De La Rue Acquisition On May 1, 2025, we acquired De La Rue Authentication Solutions (“DLR”) for a final purchase price of $ 391.1 million, net of cash acquired and working capital adjustments. We utilized the Term Loan A (as defined in Note 12, “Financing”) to fund the acquisition. 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. 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 DLR. The fair value of certain assets and liabilities has been completed as required by ASC 805. Net assets acquired (in millions) Accounts receivable, net $ 19.9 Inventories, net 20.0 Other current assets 6.5 Property, plant and equipment 24.2 Other non-current assets 5.5 Intangible assets 184.9 Goodwill 192.2 Total assets acquired $ 453.2 Total current liabilities $ 16.3 Other liabilities 45.8 Total assumed liabilities $ 62.1 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. 14 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 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 $ 141.5 18.2 Developed technology 40.7 5.0 Backlog 2.7 0.9 Total acquired intangible assets $ 184.9 Supplemental Pro Forma Data The Company’s consolidated results of operations include the results of acquired businesses from their respective acquisition dates. During the period since acquisition, Antares Vision contributed net sales of $ 63.7 million and had an operating loss of $ 5.4 million for the three months ended June 30, 2026. The operating loss was driven by acquisition related amortization and transaction costs. The following unaudited pro forma consolidated and combined information assumes that the Antares Vision acquisition was completed on January 1, 2025 and the DLR acquisition was completed on January 1, 2024. The unaudited pro forma information is provided for illustrative purposes only and does not purport to represent the Company’s actual consolidated results of operations or financial position had the business combinations occurred on such dates, nor is it necessarily indicative of future results. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Net sales $ 493.2 $ 464.7 $ 922.8 $ 865.9 Net income attributable to common shareholders $ 43.8 19.9 41.7 17.0 Acquisition Related Costs For the three-and-six months ended June 30, 2026, we recorded $ 4.4 million and $ 14.7 million respectively, of acquisition related costs. For the three-and-six months ended June 30, 2025, we recorded $ 12.4 million and $ 13.1 million, respectively, of acquisition related costs. Acquisition related costs are recorded within “Selling, general and administrative” in our Unaudited Condensed Consolidated Statements of Operations. Note 3 - Segment Results In connection with the acquisition of Antares Vision in Q1, 2026, we created a new segment called “Detection and Traceability Technologies,” which consists of the CPI business and the acquired Antares Vision business. This updated structure is how the Chief Operating Decision Maker evaluates performance and allocates resources. Since March 31, 2026, we have had two reportable segments: Security and Authentication Technologies and Detection and Traceability Technologies. Assets of the reportable segments exclude general corporate assets which principally consist of cash and tax-related balances. Corporate consists of corporate office expenses including compensation and benefits for corporate employees, occupancy, professional services and other administrative costs. A brief description of each of our segments as of June 30, 2026 is as follows: Security and Authentication Technologies (“SAT”) SAT provides advanced security solutions based on proprietary technology for securing physical products, including banknotes, consumer goods, government tax stamps 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. 15 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Detection and Traceability Technologies (“DTT”) DTT provides electronic equipment and associated software that leverage extensive proprietary capabilities across detection and inspection technologies for applications including the verification and authentication of payment transactions. DTT also delivers innovative solutions that ensure the quality, authenticity, and traceability of products across the supply chain, as well as advanced automation and processing systems, field service offerings, and remote diagnostics and productivity software solutions. Key research and development and manufacturing facilities are located in the United States, Italy, the United Kingdom, Mexico, India, Japan, and Germany, with additional sales offices worldwide. Financial information by reportable segment is set forth below: (in millions) Three months ended June 30, 2026 SAT DTT Total Net Sales $ 226.7 $ 266.5 $ 493.2 Less: Cost of operations 119.2 105.2 Selling and administrative expense 38.5 65.5 Engineering expense 7.4 14.2 Other segment items 1 22.7 37.5 Segment operating profit $ 38.9 $ 44.0 $ 82.9 Corporate costs ( 14.0 ) Operating profit 68.9 Interest expense ( 21.0 ) Equity investment income 0.1 Miscellaneous income, net ( 0.1 ) Income before income taxes $ 47.9 (in millions) Three months ended June 30, 2025 SAT DTT Total Net Sales $ 193.0 $ 211.4 $ 404.4 Less: Cost of operations 95.5 97.5 Selling and administrative expense 41.9 41.4 Engineering expense 9.2 9.3 Other segment items 1 28.4 14.2 Segment operating profit $ 18.0 $ 49.0 $ 67.0 Corporate costs ( 19.1 ) Operating profit 47.9 Interest expense ( 16.4 ) Equity investment income 0.3 Miscellaneous income, net 1.0 Income before income taxes $ 32.8 16 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions) Six months ended June 30, 2026 SAT DTT Total Net Sales $ 419.5 $ 461.4 $ 880.9 Less: Cost of operations 216.7 196.5 Selling and administrative expense 78.3 118.6 Engineering expense 16.2 22.0 Other segment items 1 54.3 48.9 Segment operating profit $ 54.0 $ 75.4 $ 129.4 Corporate costs ( 38.3 ) Operating profit 91.1 Interest expense ( 38.8 ) Equity investment income 4.8 Miscellaneous income, net — Income before income taxes $ 57.1 (in millions) Six months ended June 30, 2025 SAT DTT Total Net Sales $ 320.4 $ 414.3 $ 734.7 Less: Cost of operations 154.6 189.8 Selling and administrative expense 71.4 81.2 Engineering expense 18.4 18.9 Other segment items 1 55.6 25.7 Segment operating profit $ 20.4 $ 98.7 $ 119.1 Corporate costs ( 33.9 ) Operating profit 85.2 Interest expense ( 27.9 ) Equity investment income 0.4 Miscellaneous income, net 3.2 Income before income taxes $ 60.9 1 Includes other cost of operations such as manufacturing costs, amortization expenses, shipping and handling costs, and certain overhead expenses, as well as corporate allocations. Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Depreciation and amortization: Security and Authentication Technologies $ 19.9 $ 19.2 $ 41.1 $ 33.1 Detection and Traceability Technologies 17.6 7.3 24.8 14.4 Corporate 1.3 0.6 2.6 1.2 Total $ 38.8 $ 27.1 $ 68.5 $ 48.7 Six months ended June 30, (in millions) 2026 2025 Capital expenditures: Security and Authentication Technologies $ 18.4 $ 13.1 Detection and Traceability Technologies 4.4 1.9 Corporate 0.1 0.3 Total $ 22.9 $ 15.3 17 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions) June 30, 2026 December 31, 2025 Assets: Security and Authentication Technologies $ 1,708.7 $ 1,734.9 Detection and Traceability Technologies 1,842.5 1,183.0 Corporate and other 43.9 198.5 Total $ 3,595.1 $ 3,116.4 (in millions) June 30, 2026 December 31, 2025 Goodwill: Security and Authentication Technologies $ 540.6 $ 539.8 Detection and Traceability Technologies 895.4 624.2 Total $ 1,436.0 $ 1,164.0 Note 4 - Revenue Disaggregation of Revenues The following table presents net sales disaggregated by product line for each segment: Three Months Ended Six Months Ended June 30, June 30, (in millions) 2026 2025 2026 2025 Security and Authentication Technologies Banknotes and Security Products $ 165.5 $ 143.5 $ 305.9 $ 236.9 Authentication Products and Solutions 61.2 49.5 113.6 83.5 Total Security and Authentication Technologies $ 226.7 $ 193.0 $ 419.5 $ 320.4 Detection and Traceability Technologies Detection and Inspection Products and Solutions $ 215.3 $ 177.1 $ 375.4 $ 347.0 Services 51.2 34.3 86.0 67.3 Total Detection and Traceability Technologies $ 266.5 $ 211.4 $ 461.4 $ 414.3 Net sales $ 493.2 $ 404.4 $ 880.9 $ 734.7 Remaining Performance Obligations The transaction price allocated to remaining performance obligations represents the transaction price of firm orders which have not yet been fulfilled. As of June 30, 2026, our performance obligations were $ 755.5 million. We expect to recognize approximately 59 % of our remaining performance obligations as revenue in 2026, approximately 40 % in 2027 and substantially all the remaining obligations in 2028. 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 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. We report contract assets, which are included within “Other current assets”, current contract liabilities, which are presented separately as “Contract liabilities” and long-term contract liabilities, which are included within “Other liabilities” on our Unaudited Condensed 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: 18 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in millions) June 30, 2026 December 31, 2025 Contract assets $ 54.8 $ 56.1 Current contract liabilities $ 158.7 $ 87.3 Long-term contract liabilities $ 24.9 $ 17.0 We recognized revenue of $ 25.7 million and $ 54.2 million during the three-and-six months ended June 30, 2026, related to contract liabilities as of December 31, 2025. Note 5 - Earnings Per Share Our basic earnings per share calculations are based on the weighted average number of common shares outstanding during the period. Potentially dilutive securities include outstanding stock options, restricted share units, deferred stock units and performance-based restricted share units. 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 period. Three Months Ended Six Months Ended June 30, June 30, (in millions, except per share data) 2026 2025 2026 2025 Net income attributable to common shareholders $ 35.4 $ 24.9 $ 41.8 $ 46.6 Average basic shares outstanding 57.5 57.4 57.5 57.3 Effect of dilutive stock-based awards 0.5 0.5 0.5 0.6 Average diluted shares outstanding 58.0 57.9 58.0 57.9 Earnings per basic share $ 0.61 $ 0.43 $ 0.73 $ 0.81 Earnings per diluted share $ 0.61 $ 0.43 $ 0.72 $ 0.80 Stock options, restricted share units, deferred stock units and performance-based restricted share units that were excluded from the calculation of diluted earnings per share because their effect is anti‑dilutive were 1.0 million and 0.7 million respectively, for the three-and-six-months ended June 30, 2026, and 0.5 million and 0.4 million respectively, for the three-and-six months ended June 30, 2025. Note 6 - Changes in Accumulated Other Comprehensive Loss The table below provides the accumulated balances for each classification of accumulated other comprehensive income (loss), as reflected on our Unaudited Condensed Consolidated Balance Sheets. (in millions) Pension and Postretirement Benefits 1 Currency Translation Adjustment Total Balance as of December 31, 2025 $ 1.2 $ ( 101.1 ) $ ( 99.9 ) Other comprehensive loss before reclassifications — ( 12.3 ) ( 12.3 ) Amounts reclassified from accumulated other comprehensive income ( 0.4 ) — ( 0.4 ) Net period other comprehensive loss ( 0.4 ) ( 12.3 ) ( 12.7 ) Balance as of June 30, 2026 $ 0.8 $ ( 113.4 ) $ ( 112.6 ) 1 Net of tax detriment of $ 0.9 million and $ 1.1 million as of June 30, 2026 and December 31, 2025, respectively. 19 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 7 - Pension and Postretirement Benefits For all plans, the components of net periodic expense for the three months ended June 30, 2026, and 2025 are as follows: Pension Postretirement (in millions) 2026 2025 2026 2025 Service cost $ 0.5 $ 0.5 $ — $ — Interest cost 0.4 0.4 0.2 0.2 Expected return on plan assets ( 0.6 ) ( 0.7 ) — — Amortization of prior service cost ( 0.2 ) ( 0.2 ) — — Amortization of net loss (gain) 0.1 0.1 ( 0.1 ) ( 0.2 ) Settlement gain — ( 0.1 ) — — Net periodic expense $ 0.2 $ — $ 0.1 $ — For all plans, the components of net periodic expense for the six months ended June 30, 2026, and 2025 are as follows: Pension Postretirement (in millions) 2026 2025 2026 2025 Service cost $ 0.9 $ 1.0 $ — $ — Interest cost 0.9 0.8 0.3 0.3 Expected return on plan assets ( 1.3 ) ( 1.3 ) — — Amortization of prior service cost ( 0.3 ) ( 0.4 ) — — Amortization of net loss (gain) 0.1 0.1 ( 0.3 ) ( 0.3 ) Settlement gain — ( 0.1 ) — — Net periodic expense $ 0.3 $ 0.1 $ — $ — The components of net periodic benefit, other than the service cost component, are included in “Miscellaneous income, net” in our Unaudited Condensed Consolidated Statements of Operations. Service cost is recorded within “Cost of sales” and “Selling, general and administrative” in our Unaudited Condensed Consolidated Statements of Operations. We expect to contribute the following to our pension and postretirement plans: (in millions) Pension Postretirement Expected contributions in 2026 $ 1.2 $ 1.2 Amounts contributed during the six months ended June 30, 2026 $ 0.9 $ 1.1 Note 8 - Income Taxes Effective Tax Rates Our quarterly provision for income taxes is measured using an annual effective tax rate, adjusted for discrete items within the periods presented. Our effective tax rates are as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Effective Tax Rate 24.5 % 24.0 % 24.7 % 23.4 % Our effective tax rate for the three-and-six months ended June 30, 2026 is higher than the prior year’s comparable period primarily due to the mix of non-U.S. earnings. Our effective tax rate for the three-and-six months ended June 30, 2026 is higher than the statutory U.S. federal tax rate of 21% primarily due to the mix of non-U.S. earnings. 20 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The Organization for Economic Co-operation and Development (“OECD”) has proposed a global minimum tax of 15% of reported profits (“Pillar 2”) 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. We have adopted Pillar 2 and the impact of this adoption on our business for the fiscal year ending December 31, 2026 is approximately $ 2.5 million. On April 3, 2023, Crane Holdings, Co. was separated into two independent, publicly-traded companies, Crane NXT, Co. and Crane Company. 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 Crane Company will bear responsibility, and we and Crane Company agreed to indemnify each other against any amounts for which they are not responsible. As of June 30, 2026, we had gross unrecognized tax benefits of $ 7.1 million included in “Other liabilities” in our Unaudited Condensed Consolidate d Balance Sheets. Note 9 - Goodwill and Intangible Assets Changes to goodwill are as follows: (in millions) SAT DTT Total Balance as of December 31, 2025 $ 539.8 $ 624.2 $ 1,164.0 Additions (see Note 2) — 277.1 277.1 Currency translation and other 0.8 ( 5.9 ) ( 5.1 ) Balance as of June 30, 2026 $ 540.6 $ 895.4 $ 1,436.0 Changes to intangible assets are as follows: (in millions) Six Months Ended June 30, 2026 Year Ended December 31, 2025 Balance at beginning of period, net of accumulated amortization $ 557.2 $ 419.3 Additions (see Note 2) 233.5 191.1 Amortization expense ( 41.0 ) ( 59.5 ) Currency translation and other ( 4.0 ) 6.3 Balance at end of period, net of accumulated amortization 1 $ 745.7 $ 557.2 1 Includes $ 45.5 million intangibles with indefinite useful lives. A summary of intangible assets are as follows: Weighted Average Amortization Period of Finite Lived Assets (in years) June 30, 2026 December 31, 2025 (in millions) Gross Asset Accumulated Amortization Net Gross Asset Accumulated Amortization Net Customer relationships and backlog 18.0 $ 928.8 $ 364.1 $ 564.7 $ 767.9 $ 339.2 $ 428.7 Intellectual property rights 6.1 83.1 19.3 63.8 66.0 18.4 47.6 Developed Technology 6.0 161.2 52.2 109.0 113.2 42.2 71.0 Other 12.2 74.1 65.9 8.2 75.0 65.1 9.9 Total 17.4 $ 1,247.2 $ 501.5 $ 745.7 $ 1,022.1 $ 464.9 $ 557.2 Future amortization expense associated with intangible assets is expected to be: (in millions) Remainder of 2026 $ 51.1 2027 $ 91.3 2028 $ 83.2 2029 $ 80.5 2030 $ 56.5 2031 and after $ 337.6 21 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 10 - Accrued Liabilities Accrued liabilities consist of: (in millions) June 30, 2026 December 31, 2025 Employee related expenses 71.8 58.5 Current lease liabilities 13.2 14.6 Accrued interest 8.3 7.6 Warranty 12.0 10.9 Share deposit liabilities 1 — 14.4 Other 94.2 79.7 Total $ 199.5 $ 185.7 1 Share deposit liabilities represent ordinary shares that the Company was obligated to issue related to the acquisition of Antares Vision as of Dec 31, 2025. The shares were subsequently issued during first quarter of 2026. See Note 2, “Acquisitions” for further details. Note 11 - 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 June 30, 2026, there was no reasonable possibility that a material loss, or any additional material losses, may have been incurred for such matters. Note 12 - Financing Our debt consisted of the following: (in millions) June 30, 2026 December 31, 2025 Term Loan A $ — $ 9.1 Revolving Facility 184.4 126.0 Other 1 9.5 — Total short-term borrowings 2 $ 193.9 $ 135.1 Term Loan A $ 242.7 $ 351.4 Term Loan B 478.9 120.7 6.55 % notes due November 2036 198.8 198.8 4.20 % notes due March 2048 347.0 346.9 Other 1 4.7 — Other deferred financing costs associated with credit facilities ( 12.1 ) ( 13.4 ) Total long-term debt 2 $ 1,260.0 $ 1,004.4 1 Includes debt assumed in connection with the Antares Vision acquisition including finance lease liabilities. 2 Debt discounts and debt issuance costs totaled $ 30.0 million and $ 30.7 million as of June 30, 2026, and December 31, 2025, respectively, and have been netted against the aggregate principal amounts of the related debt in the components of the debt table above, where applicable. 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 B 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 senior secured term loan A facility (the “Term Loan A”) and revolving credit facility (the “Revolving Facility”) to December 15, 2030 and increased the Revolving Facility to $ 800.0 million. 22 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS In the fourth quarter of 2025, we designated the Term Loan B as a net investment hedge of certain foreign subsidiaries to mitigate the impact of foreign currency exchange rate fluctuations on the Company’s net investments in those subsidiaries. We recorded gains of $ 5.5 million and $ 7.7 million for the three-and-six months period ended June 30, 2026, respectively in Currency Translation Adjustment (“CTA”), a component of Accumulated Other Comprehensive Income (“AOCI”). In the six months ended June 30, 2026, we performed the following debt related activity: • Borrowed € 317.9 million, or $ 366.9 million, under the Term Loan B to fund the acquisition of Antares Vision. • Assumed $ 123.5 million of Antares Vision debt, of which $ 115.1 million was repaid during the second quarter of 2026. The remaining balance was repaid subsequent to the quarter-end. • Borrowed $ 159.4 million and repaid $ 101.0 million on our Revolving Facility to fund the repayment of Antares Vision debt and support the Company’s working capital needs. • Repaid $ 112.4 million of Term Loan A. Note 13 - Fair Value Measurements The following tables provide information regarding the Company’s assets and liabilities measured at fair value as of June 30, 2026, and December 31, 2025. June 30, 2026 (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 1 Accounts Receivable $ — $ 0.2 $ — $ 0.2 Interest rate swap agreement not designated as hedging instrument 2 Accounts Receivable $ — $ 0.9 $ — $ 0.9 Liabilities Foreign exchange contract not designated as hedging instrument 1 Accrued Liabilities $ — $ — $ — $ — Long-term debt 3 Long-term debt $ — $ 1,145.5 $ — $ 1,145.5 Contingent Liability Other Liabilities $ — $ — $ 1.3 $ 1.3 1 Notional value of $ 18.1 million 2 Assumed in connection with the Antares Vision acquisition. To reduce exposure to fluctuations in future interest payments, Antares Vision utilized interest rate swap agreements that economically converted a portion of its variable-rate obligations to fixed rates. These derivative instruments have not been designated as hedging instruments for accounting purposes under ASC 815. Accordingly, changes in the fair value of the interest rate swaps are recognized in earnings as incurred. These interest rate swaps had a notional value of $ 36.2 million at June 30, 2026. 3 Includes variable-rate term loan borrowings of $ 721.6 million. The estimated fair value of the term loan approximated its carrying value as of June 30, 2026. 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 2 Long-term debt $ — $ 912.4 $ — $ 912.4 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 2 Includes the long-term portion of variable-rate term loan borrowings of $ 472.1 million. The estimated fair value of the term loan approximated its carrying value as of December 31, 2025. 23 NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 14 - Restructuring 2025 Restructuring - In 2025, we initiated restructuring actions as follows: • During the three-and-six months ended June 30, 2026, we recorded restructuring charges of $ 0.9 million and $ 3.1 million, respectively, related to severance and facility exit activities associated with the integration of the DLR and OpSec businesses. As of June 30, 2026, cumulative restructuring charges associated with this initiative were $ 15.3 million. Total program costs are expected to be approximately $25 million. • For the three-and-six months ended June 30, 2026, we recorded severance costs of $ 2.5 million and $ 3.1 million to better align CPI’s cost structure with current economic conditions. As of June 30, 2026, cumulative restructuring charges associated with this initiative were $ 7.8 million. We continue to evaluate and align CPI’s cost structure with existing economic conditions which could result in further 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 $ 10.4 million of cumulative severance charges, net through June 30, 2026. We have substantially completed the restructuring program and do not expect to incur material additional costs. Restructuring Charges We recorded restructuring charges which are reflected in the Unaudited Condensed Consolidated Statements of Operations, as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Security and Authentication Technologies $ 0.9 $ 6.1 $ 3.1 $ 6.1 Detection and Traceability Technologies 2.5 1.2 3.4 1.2 Total restructuring charges $ 3.4 $ 7.3 $ 6.5 $ 7.3 Restructuring Liability The following table summarizes the accrual balances related to these restructuring charges by program: (in millions) 2025 Restructuring 2024 Restructuring Total Severance: Balance as of December 31, 2025 1 $ 7.2 $ 0.8 $ 8.0 Expense 2 4.3 0.3 4.6 Utilization ( 7.2 ) ( 1.0 ) ( 8.2 ) Balance as of June 30, 2026 1 $ 4.3 $ 0.1 $ 4.4 1 Included within Accrued Liabilities in the Unaudited Condensed Consolidated Balance Sheets. 2 Included within “Restructuring charges” in the Unaudited Condensed Consolidated Statements of Operations. Note 15 - Subsequent Events On July 2, 2026, the Company repriced and increased its existing € 430.0 million Term Loan B through an amendment to its Credit Agreement (the “Sixth Amendment”). Under the Sixth Amendment, the Company entered into a new € 480.0 million senior secured term loan B (hereafter referred to as the “Term Loan B”) and used the proceeds from the new Term Loan B, together with cash on hand, to repay the previously outstanding Term Loan B, accrued interest, and related transaction costs. The remaining proceeds were used to repay a portion of Term Loan A. The new Term Loan B interest rate is determined as an adjusted term Euro Interbank Offered Rate for the applicable interest period plus a margin ranging from 2.0 % to 2.25 % with such margin determined based on our first lien net leverage ratio. There is no change to the maturity date of December 15, 2032. 24 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS