TLDR
- Crane NXT CEO Aaron Saak says gaming remains a key market for the company’s payment hardware business.
- The company holds a strong market share in gaming payment hardware through its CPI segment.
- Saak described the payment hardware industry as an oligopoly with only one or two competitors.
- A redesigned US$20 bill could drive an equipment upgrade cycle across cash handling industries.
- Crane NXT reported second quarter net sales of $493.2 million, up 22% year over year.
Crane NXT chief executive Aaron Saak says the gaming sector remains one of the most important markets for the company’s payment hardware business. He made the comments during a fireside chat at the Jefferies Global Industrials Conference.
Saak was joined by Crane NXT chief financial officer Christina Cristiano at the event. The two discussed several parts of the company’s operations.
Saak said Crane NXT holds a strong share of the gaming payment hardware market. This business is run through the company’s Crane Payment Innovations segment.
This is not the first time Saak has made this point. During the company’s second quarter earnings call, he said Crane NXT was the leading global player in gaming payment hardware.
The payment hardware unit is one of several businesses inside Crane NXT. It builds equipment that processes, validates, and authenticates cash, including machines used by casino operators.
Limited Competition in Payment Hardware
Saak called the payment hardware market an oligopoly. He said Crane NXT faces only one or two natural competitors, and those rivals are also mature businesses.
He said the segment carries higher margins than other parts of the company. It also produces free cash flow conversion above 100 percent.
Crane NXT’s latest investor presentation shows payment hardware made up about 25 percent of total sales over the 12 months ending June 30, 2026. Group sales for that period were about $1.8 billion.
The company reported an adjusted EBITDA margin near 24 percent for the same period. The CPI business remains the main link between Crane NXT and the casino industry.
New Banknote May Drive Equipment Upgrades
Saak pointed to a coming change in U.S. currency as a possible growth driver. A redesigned $20 bill is set to be introduced.
He said the new note will require upgrades to hardware and software that read and authenticate currency. This applies to machines across several industries.
Gaming is one of the sectors that could be affected. Casino payment systems and cash handling equipment will need updates to recognize the new bill.
Crane NXT provides much of the technology used for this kind of cash processing. That position could allow the company to benefit as businesses upgrade their systems.
Crane NXT reported second quarter net sales of $493.2 million in August. That figure was 22 percent higher than the same period last year.
Income from continuing operations attributable to common shareholders rose 42.2 percent to $63.0 million during the quarter.
Last month, the company named Jason Lund president of both the CPI business and its Detection and Traceability Technologies segment. The move comes as Crane NXT works to grow its authentication and traceability offerings.
The company’s most recent investor presentation set a target of about $2.5 billion in annual revenue by 2028. That figure includes potential contributions from future acquisitions.
