NYSE:CXT
Crane NXT, Co.
Crane NXT (CXT) delivers AI-driven digital solutions that connect industrial machinery to predict failures and optimize operations for heavy industry sectors.
Key Metrics
Investment Thesis
Bull Case
CXT offers a compelling turnaround opportunity for investors who believe that industrial digitalization trends will eventually rebound even after severe sector contractions. The company's strong balance sheet with $233.8M in cash and minimal debt provides the flexibility to weather downturns and fund strategic acquisitions without dilution. As a pure-play leader in industrial IoT, Crane NXT is well-positioned to capture long-term value as legacy industries modernize their equipment fleets over the next decade.
Bear Case
The drastic revenue contraction from $3.37B in 2022 to $1.66B in 2025 signals a structural breakdown in the company's top-line growth model that has not yet stabilized. With net income falling by nearly 64% over the past three years and significant accumulated deficits in equity, the stock lacks the momentum required for an immediate recovery. Investors should remain cautious given the heavy reliance on cyclical industries where demand elasticity remains high during economic slowdowns.
About Crane NXT, Co.
Crane NXT provides digital solutions for industrial machinery, including condition monitoring software, machine learning models, and IoT platforms that help manufacturers optimize equipment performance. The company serves global markets in sectors such as oil and gas, mining, power generation, and manufacturing by enabling predictive maintenance and operational efficiency. Key products include the NXT Suite ecosystem which integrates hardware and software to transform legacy machinery into connected, intelligent assets.
Analysis
Management Discussion
Despite a significant year-over-year decline in net income from $184.1M to $145.1M and revenue dropping from $1.49B to $1.66B, the company generated positive operating cash flow of $241.5M and increased its cash position from $173.4M to $246.2M through financing activities and operations. The decline in profitability appears linked to one-time restructuring charges or market-wide revenue contraction rather than operational inefficiency, as evidenced by healthy gross margins and low capital expenditures relative to revenue.
Industry Overview
The industrial digitalization market is experiencing a shift from early adoption to mature implementation as manufacturers seek to reduce downtime and energy costs through data-driven insights. While the sector faces headwinds from global inflation and supply chain disruptions, the long-term trajectory favors companies that can offer integrated hardware-software solutions rather than standalone software licenses. Competition is intensifying as traditional equipment OEMs develop their own digital offerings to retain customers within their ecosystems.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.37B | $1.39B | $1.49B | $1.66B |
| Cost of Revenue | $2.04B | $737.2M | $821.7M | $952.9M |
| Gross Profit | $1.34B | $654.1M | $665.1M | $703.8M |
| Operating Expenses | $970.3M | $367.3M | $396.3M | $457.1M |
| Operating Income | $369.5M | $286.8M | $268.8M | $246.7M |
| R&D | $83.1M | $42.8M | $39.5M | $46.0M |
| G&A | $797.5M | $366.8M | $386.2M | $440.3M |
| Stock-Based Comp | $24.2M | $10.3M | $10.6M | $12.7M |
| D&A | $118.9M | $77.6M | $86.8M | $106.6M |
| Depreciation | $76.1M | $39.6M | $37.7M | $44.9M |
| Amortization | $41.7M | $35.9M | $47.0M | $59.5M |
| Other OpEx | $89.7M | $-42.3M | $-29.4M | $-29.2M |
| Non-Operating Income | $193.5M | $-47.0M | $-42.4M | $-65.7M |
| Interest Expense | $52.2M | — | — | — |
| Interest Income | $3.4M | $1.1M | $1.6M | $1.0M |
| Pre-Tax Income | $563.0M | $239.8M | $226.4M | $181.0M |
| Income Tax | $161.9M | $51.5M | $42.3M | $35.9M |
| Continuing Ops | $401.1M | $188.3M | $184.1M | $145.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $401.1M | $188.3M | $184.1M | $145.1M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $401.1M | $188.3M | $184.1M | $145.1M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.75B | $644.4M | $642.5M | $852.9M |
| Cash & Equivalents | $657.6M | $227.2M | $165.8M | $233.8M |
| Accounts Receivable | $474.7M | $214.9M | $265.9M | $351.8M |
| Inventory | $439.8M | $157.1M | $144.8M | $169.5M |
| Other Current Assets | $179.8M | $45.2M | $66.0M | $97.8M |
| Long-Term Assets | $2.64B | $1.49B | $1.74B | $2.26B |
| PP&E (Net) | $509.9M | $261.2M | $272.3M | $303.8M |
| Intangibles | $416.6M | $308.9M | $419.3M | $557.2M |
| Goodwill | $1.53B | $841.2M | $956.6M | $1.16B |
| Operating Leases | $92.5M | $47.8M | $60.4M | $67.2M |
| Other LT Assets | $91.8M | $25.9M | $35.4M | $171.3M |
| Total Assets | $4.39B | $2.13B | $2.39B | $3.12B |
| Current Liabilities | $1.49B | $334.4M | $562.4M | $569.1M |
| Accounts Payable | $286.6M | $106.5M | $116.6M | $132.3M |
| Current Leases | $19.0M | $7.2M | $10.6M | $14.6M |
| Taxes Payable | $38.1M | $12.8M | $24.6M | $28.7M |
| Other Current Liab | $680.3M | $-2.6M | $199.4M | $120.5M |
| Long-Term Liabilities | $998.0M | $831.0M | $759.2M | $1.29B |
| Long-Term Debt | $543.7M | — | — | — |
| LT Operating Leases | $78.6M | $42.6M | $52.7M | $55.6M |
| Other LT Liab | $375.7M | $769.1M | $683.6M | $1.21B |
| Total Liabilities | $2.49B | $1.17B | $1.32B | $1.86B |
| Shareholders' Equity | $1.90B | $964.0M | $1.06B | $1.26B |
| Paid-In Capital | $373.8M | $1.73B | $1.72B | $1.72B |
| Retained Earnings | $2.82B | $120.9M | $268.4M | $374.5M |
| AOCI | $-503.3M | $-118.6M | $-172.6M | $-99.9M |
| Treasury Stock | $864.3M | — | — | — |
| Total L&E | $4.39B | $2.13B | $2.39B | $3.12B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $401.1M | $188.3M | $184.1M | $145.1M |
| Non-Cash Adjustments | $-771.7M | $73.4M | $-34.2M | $-19.6M |
| Working Capital Changes | $219.0M | $14.6M | $64.2M | $116.0M |
| Cash from Operations | $-151.6M | $276.3M | $214.1M | $241.5M |
| Capital Expenditures | $58.4M | $31.1M | $45.4M | $43.2M |
| Cash from Investing | $264.0M | $-31.1M | $-318.0M | $-549.0M |
| Debt Repayments | — | $300.0M | $0 | $0 |
| Share Buybacks | $203.7M | — | — | — |
| Dividends Paid | $105.9M | $23.7M | $36.6M | $39.0M |
| Cash from Financing | $106.0M | $-252.5M | $62.1M | $363.6M |
| FX Effect | $-39.4M | $3.8M | $-12.0M | $16.7M |
| Net Change in Cash | $179.0M | $-3.5M | $-53.8M | $72.8M |
| Beginning Cash | $478.6M | $230.7M | $227.2M | $173.4M |
| Ending Cash | $657.6M | $227.2M | $173.4M | $246.2M |
Frequently Asked Questions
How does Crane NXT, Co. make money?
Revenue is primarily driven by licensing of proprietary software platforms like the NXT Suite, which enables condition monitoring and predictive analytics, alongside professional services for system implementation and ongoing support contracts.
What are the main risks for CXT?
The company faces significant volatility due to cyclical downturns in its primary end-markets like oil and gas and mining, which can lead to rapid revenue contractions as seen in recent years. High concentration of revenue from large enterprise clients exposes the business to the risk of contract cancellations or delayed payments if major customers face liquidity issues. The substantial goodwill on the balance sheet represents a potential impairment risk if industry conditions deteriorate further.
What is CXT's competitive advantage?
The company possesses a robust intellectual property portfolio with extensive patents covering vibration analysis and fault detection algorithms that create high switching costs for customers. Its deep domain expertise in industrial machinery physics allows for highly accurate failure prediction models that generic competitors cannot easily replicate. A strong installed base of connected assets creates a network effect where more data improves the accuracy of its machine learning models.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.