Accessibility StatementSkip Navigation CHARLOTTE, N.C., Sept. 12, 2025 /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company"), today announced that it will present at the September 2025 Sidoti Investor Small-Cap Conference on September 17, 2025, at approximately 8:30 a.m. Eastern Time. 440k+Newsrooms &Influencers 9k+Digital MediaOutlets 270k+JournalistsOpted In GET STARTED Also from this source Columbus McKinnon Reports Q1 FY26 Results and Reaffirms Guidance Th ...

General Information [FORM 10-Q Filing Details](index=1&type=section&id=FORM%2010-Q) Columbus McKinnon Corporation filed its Quarterly Report on Form 10-Q for the period ended June 30, 2025, as a large accelerated filer - Columbus McKinnon Corporation filed its Quarterly Report on Form 10-Q for the period ended June 30, 2025[2](index=2&type=chunk) - The company is classified as a **large accelerated filer**[4](index=4&type=chunk) Common Stock Outstanding (as of July 28, 2025) | Metric | Value | | :--- | :--- | | Common Stock Outstanding (as of July 28, 2025) | 28,725,329 shares | [FORM 10-Q Index](index=3&type=section&id=FORM%2010-Q%20INDEX) The report index details its structure, including Part I (Financial Information) and Part II (Other Information), with corresponding page numbers - The report is structured into two main parts: **Part I. Financial Information** and **Part II. Other Information**, with detailed items listed under each[6](index=6&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section cautions that forward-looking statements regarding financial condition and future performance are subject to risks, including economic conditions, competition, and acquisition integration - The report contains forward-looking statements about financial condition, operations, and future performance, identifiable by words like 'anticipate,' 'expect,' and 'project'[7](index=7&type=chunk) - Actual results may differ materially due to risks such as industrial economic conditions, increased competition, acquisition integration challenges (e.g., Kito), raw material price fluctuations, and global operational risks[8](index=8&type=chunk)[9](index=9&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statement except as required by law[11](index=11&type=chunk) Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited).) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, shareholders' equity, and cash flows, with explanatory notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20consolidated%20balance%20sheets%20-%20June%2030%2C%202025%20and%20March%2031%2C%202025) Total assets and shareholders' equity increased from March 31, 2025, to June 30, 2025, driven by receivables, inventories, and intangibles, despite a decrease in cash Metric (in thousands) | Metric (In thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $28,722 | $53,683 | | Total current assets | $478,476 | $465,769 | | Total assets | $1,779,192 | $1,738,788 | | Total current liabilities | $259,239 | $257,919 | | Total liabilities | $868,309 | $856,693 | | Total shareholders' equity | $910,883 | $882,095 | - Cash and cash equivalents decreased by **$24,961 thousand** from March 31, 2025, to June 30, 2025[15](index=15&type=chunk) - Total assets increased by **$40,404 thousand**, and total shareholders' equity increased by **$28,788 thousand**[15](index=15&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20consolidated%20statements%20of%20operations%20-%20Three%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) The company reported a **net loss of $1.9 million** for the three months ended June 30, 2025, a significant decline from prior year's net income, due to decreased sales, lower margins, and increased expenses Metric (in thousands, except per share data) | Metric (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net sales | $235,920 | $239,726 | (1.6%) | | Gross profit | $77,222 | $89,030 | (13.3%) | | Income from operations | $5,492 | $21,147 | (74.0%) | | Net income (loss) | $(1,898) | $8,629 | (122.0%) | | Basic income (loss) per share | $(0.07) | $0.30 | (123.3%) | | Diluted income (loss) per share | $(0.07) | $0.30 | (123.3%) | - Net sales decreased by **$3,806 thousand (1.6%)** year-over-year[16](index=16&type=chunk) - Gross profit margin declined from **37.1% to 32.7%**[16](index=16&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20consolidated%20statements%20of%20comprehensive%20income%20(loss)%20-%20Three%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Despite a net loss, the company reported a **comprehensive income of $27.7 million** for the three months ended June 30, 2025, primarily due to a significant positive foreign currency translation adjustment Metric (in thousands) | Metric (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income (loss) | $(1,898) | $8,629 | | Foreign currency translation adjustments | $29,786 | $(3,420) | | Total other comprehensive income (loss) | $29,597 | $(4,336) | | Comprehensive income (loss) | $27,699 | $4,293 | - Foreign currency translation adjustments significantly contributed to other comprehensive income, moving from a **loss of $3,420 thousand** in 2024 to a **gain of $29,786 thousand** in 2025[18](index=18&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=9&type=section&id=Condensed%20consolidated%20statements%20of%20shareholders'%20equity%20-%20Three%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Shareholders' equity increased to **$910.9 million** as of June 30, 2025, primarily due to a substantial positive change in accumulated other comprehensive income from foreign currency translation adjustments Metric (in thousands) | Metric (In thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total Shareholders' Equity | $910,883 | $882,095 | | Accumulated Other Comprehensive Income (Loss) | $8,496 | $(21,101) | | Retained Earnings | $380,262 | $382,160 | - Accumulated other comprehensive income (loss) saw a significant positive change of **$29,597 thousand**, primarily from foreign currency translation adjustments[20](index=20&type=chunk) - Retained earnings decreased by **$1,898 thousand**, reflecting the net loss for the period[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20consolidated%20statements%20of%20cash%20flows%20-%20Three%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) The company experienced a **net decrease in cash and cash equivalents of $25.0 million** for the three months ended June 30, 2025, primarily due to cash used in operating and investing activities Metric (in thousands) | Metric (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $(18,153) | $(10,758) | | Net cash provided by (used for) investing activities | $(3,217) | $(4,041) | | Net cash provided by (used for) financing activities | $(977) | $(30,583) | | Net change in cash and cash equivalents | $(24,961) | $(45,753) | | Cash, cash equivalents, and restricted cash at end of period | $28,972 | $68,623 | - Operating activities used more cash in 2025 (**$18.2 million**) compared to 2024 (**$10.8 million**), driven by changes in working capital[25](index=25&type=chunk) - Financing activities used significantly less cash in 2025 (**$1.0 million**) compared to 2024 (**$30.6 million**), mainly due to lower debt repayments[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20condensed%20consolidated%20financial%20statements%20-%20June%2030%2C%202025) These notes provide detailed disclosures on the company's business, significant transactions, revenue recognition, financial instruments, and other key accounting areas, offering crucial context to the financial statements [1. Description of Business](index=12&type=section&id=1.%20Description%20of%20Business) Columbus McKinnon Corporation designs, manufactures, and markets intelligent motion solutions globally, with approximately **57% of net sales** to U.S. customers for the quarter - The Company designs, manufactures, and markets intelligent motion solutions for material handling, including hoists, crane components, and precision conveyor systems[28](index=28&type=chunk) - Sales to U.S. customers accounted for approximately **57% of total net sales** for the three months ended June 30, 2025[29](index=29&type=chunk) [2. Acquisitions & Disposals](index=12&type=section&id=2.%20Acquisitions%20%26%20Disposals) The company announced the **$2.7 billion acquisition of Kito Crosby Limited**, expected to close in fiscal 2026, funded by committed debt and preferred equity, incurring **$8.1 million** in related costs this quarter - The Company announced the acquisition of Kito Crosby Limited for **$2.7 billion**, expected to close in fiscal 2026, aiming to become a leader in material handling solutions[30](index=30&type=chunk)[31](index=31&type=chunk) - The acquisition will be funded by **$3.05 billion** in committed debt financing and an **$800 million** perpetual convertible preferred equity investment from Clayton, Dubliner & Rice (CD&R)[31](index=31&type=chunk) Metric | Metric | Amount (in thousands) | | :--- | :--- | | Kito Acquisition Value | $2,700,000 | | Acquisition, integration planning, and deal-related costs (Q1 FY26) | $8,103 | | Committed Debt Financing | $3,050,000 | | CD&R Preferred Equity Investment | $800,000 | [3. Revenue & Receivables](index=13&type=section&id=3.%20Revenue%20%26%20Receivables) Revenue is recognized at shipment for standard products and generally upon project completion for custom engineered products, with **net sales of $235.9 million** for the quarter - Revenue from standard products is recognized at shipment, while custom engineered products are generally recognized upon project completion[34](index=34&type=chunk)[35](index=35&type=chunk) Net Sales by Product Grouping (Three Months Ended) | Net Sales by Product Grouping (Three Months Ended) | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Industrial Products | $83,202 | $83,779 | | Crane Solutions | $95,167 | $97,547 | | Engineered Products | $21,663 | $22,264 | | Precision Conveyor Products | $35,863 | $36,086 | | Total Net Sales | $235,920 | $239,726 | Contract Balances (in thousands) | Contract Balances (in thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Customer advances (contract liabilities), ending balance | $21,747 | $16,842 | | Allowance for doubtful accounts, ending balance | $4,426 | $3,778 | [4. Fair Value Measurements](index=15&type=section&id=4.%20Fair%20Value%20Measurements) The company measures financial assets and liabilities using a three-level fair value hierarchy, classifying marketable securities and terminated pension plan assets as Level 1, and derivative instruments and certain debt as Level 2 - Fair value measurements are categorized into **Level 1** (quoted prices in active markets), **Level 2** (significant observable inputs), and **Level 3** (significant unobservable inputs)[49](index=49&type=chunk)[50](index=50&type=chunk) - Marketable securities and terminated pension plan assets are valued using **Level 1** inputs[53](index=53&type=chunk) Financial Instrument (in thousands) | Financial Instrument (in thousands) | June 30, 2025 Fair Value | Level | | :--- | :--- | :--- | | Marketable securities | $10,325 | 1 | | Annuity contract | $1,233 | 2 | | Terminated pension plan assets | $5,633 | 1 | | Foreign exchange contracts (asset) | $49 | 2 | | Interest rate swap (liability) | $(3,019) | 2 | | Cross currency swap (liability) | $(7,352) | 2 | | Term Loan B (disclosed) | $(432,290) | 2 | | AR Securitization Facility (disclosed) | $(32,400) | 2 | [5. Inventories](index=18&type=section&id=5.%20Inventories) Net inventories increased to **$216.2 million** at June 30, 2025, from **$198.6 million** at March 31, 2025, with raw materials as the largest component, and interim LIFO calculations are estimates Inventory Component (in thousands) | Inventory Component (in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Raw materials | $176,551 | $163,053 | | Work-in-process | $33,786 | $30,349 | | Finished goods | $39,283 | $37,197 | | Total at cost - FIFO basis | $249,620 | $230,599 | | LIFO cost less than FIFO cost | $(33,417) | $(32,001) | | Net inventories | $216,203 | $198,598 | - Net inventories increased by **$17,605 thousand** from March 31, 2025, to June 30, 2025[58](index=58&type=chunk) - Interim LIFO calculations are estimates and subject to change at year-end[58](index=58&type=chunk) [6. Marketable Securities and Other Investments](index=19&type=section&id=6.%20Marketable%20Securities%20and%20Other%20Investments) Marketable securities, held for liability claims, are recorded at fair value, resulting in a **$198 thousand gain** for the quarter, and the company holds a **49% equity interest in EMC**, contributing **$653 thousand** to investment income - Marketable securities are held for the settlement of general and product liability insurance claims and are recorded at fair value[61](index=61&type=chunk) Investment Metric (in thousands) | Investment Metric (in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Marketable securities | $10,325 | $10,112 | | Unrealized gains/losses on marketable securities (Q1 FY26) | $198 (gain) | Immaterial (gain) | | Equity investment in EMC | $5,359 | $4,318 | | EMC income contribution (Q1 FY26) | $653 | $121 | [7. Goodwill and Intangible Assets](index=19&type=section&id=7.%20Goodwill%20and%20Intangible%20Assets) Goodwill increased to **$732.4 million** at June 30, 2025, primarily due to currency translation, with no impairment indicators, and identifiable intangible assets totaled **$361.0 million** with **$7.6 million** amortization expense for the quarter - Goodwill is tested for impairment at least annually; no impairment indicators were present in Q1 FY26[63](index=63&type=chunk)[64](index=64&type=chunk) Goodwill (in thousands) | Goodwill (in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Balance at period end | $732,413 | $710,807 | | Change due to currency translation | $21,606 | N/A | | Linear Motion Products reporting unit | $9,699 | $9,699 | | Rest of Products reporting unit | $320,697 | $305,110 | | Precision Conveyance reporting unit | $402,017 | $395,998 | Identifiable Intangible Assets (Net, in thousands) | Identifiable Intangible Assets (Net, in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total Net | $360,986 | $356,562 | | Amortization expense (Q1 FY26) | $7,635 | $7,500 | | Estimated annual amortization (next 5 years) | ~$31,000 | N/A | [8. Derivative Instruments](index=20&type=section&id=8.%20Derivative%20Instruments) The company uses derivative instruments, including cross currency swaps and foreign currency forward agreements, to manage foreign currency and interest rate exposures, designating them as cash flow hedges, with **$355 million** notional amount of interest rate swaps - Derivative instruments are used to manage foreign currency and interest rate exposures, not for speculative trading[68](index=68&type=chunk) - Cross currency swaps hedge intercompany loans, foreign currency forward agreements hedge forecasted inventory purchases, and interest rate swaps hedge variable interest rate debt[71](index=71&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) Derivative Instrument (in thousands) | Derivative Instrument (in thousands) | Notional Amount (June 30, 2025) | Fair Value (June 30, 2025) | | :--- | :--- | :--- | | Cross currency swap | $66,573 | $(7,352) | | Foreign exchange contracts | $5,626 | $49 | | Interest rate swaps | $355,000 | $(3,019) | [9. Debt](index=23&type=section&id=9.%20Debt) The company's debt includes a Term Loan B with **$432.6 million** outstanding and an AR Securitization Facility with **$32.4 million** outstanding, with plans to repay approximately **$50 million** in debt over the next 12 months - The Term Loan B has an outstanding principal balance of **$432,560 thousand** as of June 30, 2025[79](index=79&type=chunk) - The AR Securitization Facility had **$32,400 thousand** borrowings outstanding as of June 30, 2025[83](index=83&type=chunk) - The Company plans to repay approximately **$50,000 thousand** in debt over the next 12 months[79](index=79&type=chunk)[84](index=84&type=chunk) [10. Net Periodic Benefit Cost](index=24&type=section&id=10.%20Net%20Periodic%20Benefit%20Cost) Net periodic pension cost for the three months ended June 30, 2025, was **$493 thousand**, a decrease from the prior year, following the termination of one U.S. pension plan, with **$4.1 million** expected contributions in fiscal 2026 Pension Cost Component (in thousands) | Pension Cost Component (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Service costs | $110 | $120 | | Interest cost | $1,839 | $3,090 | | Expected return on plan assets | $(1,213) | $(2,497) | | Net amortization | $(243) | $241 | | Net periodic pension (benefit) cost | $493 | $954 | - The Company terminated one of its U.S. pension plans in fiscal 2025, settling remaining liabilities with annuity contracts[90](index=90&type=chunk) - The Company plans to contribute approximately **$4,118 thousand** to its pension plans in fiscal 2026[91](index=91&type=chunk) [11. Earnings Per Share](index=24&type=section&id=11.%20Earnings%20Per%20Share) Basic and diluted loss per share was **$(0.07)** for the three months ended June 30, 2025, compared to income per share of **$0.30** in the prior year, with antidilutive awards excluded from diluted EPS EPS Metric (in thousands, except per share data) | EPS Metric (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income (loss) | $(1,898) | $8,629 | | Weighted-average common stock outstanding – basic EPS | 28,658 | 28,834 | | Basic income (loss) per share | $(0.07) | $0.30 | | Diluted income (loss) per share | $(0.07) | $0.30 | - Stock options, restricted stock units, and performance shares for **2,438,000 common shares** were antidilutive and excluded from diluted EPS calculation for Q1 FY26[93](index=93&type=chunk) - The Board of Directors declared a dividend of **$0.07 per common share**, payable on August 18, 2025[96](index=96&type=chunk) [12. Loss Contingencies](index=25&type=section&id=12.%20Loss%20Contingencies) The company faces various legal actions, including asbestos-related and product liability claims, with an estimated net asbestos liability of **$5.9 million** and product liability claims of **$4.9 million**, while vigorously defending against an Italian tax matter - Accrued general and product liability costs are **$18,804 thousand** (gross of **$6,887 thousand** estimated insurance recoveries) as of June 30, 2025[98](index=98&type=chunk)[100](index=100&type=chunk) - The estimated net asbestos-related aggregate liability is approximately **$5,889 thousand**, with **$2,600 thousand** expected to be incurred in the next 12 months[102](index=102&type=chunk) - The company is appealing a **$3,000 thousand** jury verdict for a product liability claim, believing payment is not probable[107](index=107&type=chunk) [13. Income Taxes](index=29&type=section&id=13.%20Income%20Taxes) The company recorded an income tax expense of **$260 thousand** for the quarter on a pre-tax loss, resulting in an effective tax rate of **(16%)**, with a fiscal 2026 estimate of **25%** and expected impacts from new U.S. tax legislation Income Tax Metric (in thousands) | Income Tax Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Income tax expense (benefit) | $260 | $3,421 | | Income tax as a percentage of pre-tax income (loss) | (16)% | 28% | - The effective tax rate for fiscal 2026 is estimated to be approximately **25%**[127](index=127&type=chunk) - New U.S. tax legislation (OBBBA) is expected to impact interest limitation and R&D capitalization in fiscal 2026, but not materially affect the tax rate[128](index=128&type=chunk) [14. Changes in Accumulated Other Comprehensive Loss](index=30&type=section&id=14.%20Changes%20in%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated Other Comprehensive Loss (AOCL) shifted from **$(21.1) million** to **$8.5 million**, primarily driven by a significant positive foreign currency translation adjustment of **$29.8 million**, partially offset by changes in derivatives AOCL Component (in thousands) | AOCL Component (in thousands) | Beginning Balance (March 31, 2025) | Net Current Period Other Comprehensive Income (Loss) | Ending Balance (June 30, 2025) | | :--- | :--- | :--- | | Retirement Obligations | $14,760 | $725 | $15,485 | | Foreign Currency | $(33,942) | $29,786 | $(4,156) | | Change in Derivatives Qualifying as Hedges | $(1,919) | $(914) | $(2,833) | | Total AOCL | $(21,101) | $29,597 | $8,496 | - A significant positive foreign currency translation adjustment of **$29,786 thousand** was the primary driver of the change in AOCL[130](index=130&type=chunk) [15. Leases](index=30&type=section&id=15.%20Leases) The company recognizes operating and finance leases with terms greater than one year on its balance sheet, with operating lease liabilities totaling **$68.9 million** and finance lease liabilities totaling **$12.1 million** as of June 30, 2025 - Leases with terms greater than one year are recognized on the Consolidated Balance Sheet[131](index=131&type=chunk) Lease Type (in thousands) | Lease Type (in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total operating liabilities | $68,869 | $69,696 | | Total finance liabilities | $12,092 | $12,267 | | Cash paid for operating lease liabilities (Q1 FY26) | $3,657 | $3,023 | | Cash paid for finance lease liabilities (Q1 FY26) | $311 | $302 | [16. Business Segment Information](index=31&type=section&id=16.%20Business%20Segment%20Information) The company operates as a single operating and reportable segment, with its CEO evaluating performance based on Income from operations to allocate resources - The Company has one operating and reportable segment[136](index=136&type=chunk) - The CEO evaluates segment performance based on Income from operations, reviewing budget-to-actual variances and year-over-year performance[137](index=137&type=chunk) [17. Effects of New Accounting Pronouncements](index=32&type=section&id=17.%20Effects%20of%20New%20Accounting%20Pronouncements) The company is evaluating new FASB ASUs, including ASU 2024-03 and ASU 2023-09, which are expected to result in additional disclosures but not materially impact financial statements - ASU 2024-03 (Expense Disaggregation Disclosures) is effective for annual periods beginning after **December 15, 2026**[140](index=140&type=chunk) - ASU 2023-09 (Improvements to Income Tax Disclosures) is effective for annual periods beginning after **December 15, 2023** (Fiscal 2026 10K)[141](index=141&type=chunk) - Both new ASUs are expected to result in additional disclosures but not have a material impact on the financial statements[140](index=140&type=chunk)[141](index=141&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) This section provides management's perspective on the company's financial performance, condition, and future outlook, covering business strategy, operational results, liquidity, and market conditions [Executive Overview](index=33&type=section&id=Executive%20Overview) Columbus McKinnon is a global leader in intelligent motion solutions, focused on innovation and operational excellence, with **43% of net sales** from outside the U.S., and the pending Kito Acquisition is expected to enhance its market position - The Company is a leading worldwide designer, manufacturer, and marketer of intelligent motion solutions, emphasizing technological innovation and customer service[143](index=143&type=chunk)[144](index=144&type=chunk) - Approximately **43% of net sales** for the three months ended June 30, 2025, were derived from customers outside the U.S[145](index=145&type=chunk) - The pending Kito Acquisition is expected to significantly improve the Company's scale, geographic reach, and product portfolio, strengthening its position in lifting securement and consumables[151](index=151&type=chunk)[152](index=152&type=chunk) [Results of Operations (Three months ended June 30, 2025 and June 30, 2024)](index=35&type=section&id=Results%20of%20Operations) Net sales decreased by **1.6%** to **$235.9 million**, and gross profit declined by **13.3%** to **$77.2 million**, resulting in a **net loss of $1.9 million** due to lower sales volume, unfavorable mix, and increased expenses Metric (in thousands) | Metric (in thousands) | Q1 FY26 (June 30, 2025) | Q1 FY25 (June 30, 2024) | Change (YoY) | | :--- | :--- | :--- | :--- | | Net sales | $235,920 | $239,726 | (1.6%) | | Gross profit | $77,222 | $89,030 | (13.3%) | | Gross profit margin | 32.7% | 37.1% | (4.4 ppts) | | Income from operations | $5,492 | $21,147 | (74.0%) | | Net income (loss) | $(1,898) | $8,629 | (122.0%) | - Net sales were negatively impacted by **$9,375 thousand** from unfavorable sales volume, partially offset by **$2,443 thousand** from price increases and **$3,126 thousand** from favorable foreign currency translation[154](index=154&type=chunk) - Gross profit was reduced by **$5,437 thousand** due to lower sales volume and unfavorable mix, **$993 thousand** by business realignment costs, and **$5,709 thousand** by material inflation and other manufacturing cost changes[155](index=155&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased by **$25.0 million** to **$29.0 million**, with **$18.2 million** used in operating activities, primarily due to working capital changes, though the company expects sufficient liquidity for the next twelve months Cash Flow Metric (in thousands) | Cash Flow Metric (in thousands) | Q1 FY26 (June 30, 2025) | Q1 FY25 (June 30, 2024) | | :--- | :--- | :--- | | Cash, cash equivalents, and restricted cash at end of period | $28,972 | $68,623 | | Net change in cash and cash equivalents | $(24,961) | $(45,753) | | Net cash used for operating activities | $(18,153) | $(10,758) | | Net cash used for financing activities | $(977) | $(30,583) | - Working capital changes, including a **$9,661 thousand** increase in inventories and an **$8,726 thousand** increase in trade accounts receivable, contributed to cash used in operations[163](index=163&type=chunk) - The company expects its cash on hand, cash flows, and borrowing capacity to be sufficient for ongoing operations and debt obligations for at least the next twelve months[166](index=166&type=chunk) [Capital Expenditures](index=36&type=section&id=Capital%20Expenditures) Consolidated capital expenditures for the quarter were **$3.2 million**, a decrease from the prior year, with fiscal 2026 spending projected to range from **$20 million to $25 million** for maintenance, new products, and productivity Capital Expenditures (in thousands) | Capital Expenditures (in thousands) | Q1 FY26 (June 30, 2025) | Q1 FY25 (June 30, 2024) | | :--- | :--- | :--- | | Consolidated capital expenditures | $3,202 | $4,629 | - Expected capital expenditure spending for fiscal 2026 is projected to be between **$20,000 thousand** and **$25,000 thousand**[167](index=167&type=chunk) [Inflation and Other Market Conditions](index=37&type=section&id=Inflation%20and%20Other%20Market%20Conditions) The company's costs are affected by inflation, historically mitigated by price increases, and current higher raw material costs due to tariffs are expected to be recovered through pricing actions - The Company's costs are affected by inflation in the U.S. and non-U.S. economies[168](index=168&type=chunk) - Historically, the Company has been able to pass on rising costs through price increases, mitigating the material effect of general inflation[168](index=168&type=chunk) - Currently experiencing higher raw material costs due to tariffs, which are expected to be recovered with pricing actions[168](index=168&type=chunk) [Goodwill Impairment Testing](index=37&type=section&id=Goodwill%20Impairment%20Testing) Goodwill is tested for impairment annually at the reporting unit level, and as of June 30, 2025, no impairment indicators were identified for any of the three reporting units - Goodwill is tested for impairment at least annually at the reporting unit level[169](index=169&type=chunk)[170](index=170&type=chunk) - The Company has three reporting units: Linear Motion Products, Rest of Products, and Precision Conveyance[170](index=170&type=chunk) - As of June 30, 2025, there are no significant impairment indicators, and the fair value of reporting units is not believed to be less than their carrying value[171](index=171&type=chunk) [Seasonality and Quarterly Results](index=37&type=section&id=Seasonality%20and%20Quarterly%20Results) Quarterly results can be materially affected by factors such as large customer orders, vacation concentrations, legal settlements, and foreign currency translation, making them not necessarily indicative of future performance - Quarterly results can be materially affected by factors including large customer orders, vacation/holiday concentrations, legal settlements, and foreign currency translation[173](index=173&type=chunk) - Operating results for any particular fiscal quarter are not necessarily indicative of results for any subsequent fiscal quarter or the full fiscal year[173](index=173&type=chunk) [Effects of New Accounting Pronouncements](index=37&type=section&id=Effects%20of%20New%20Accounting%20Pronouncements) Information regarding the effects of new accounting pronouncements is detailed in Note 16 to the accompanying consolidated financial statements - Details on new accounting pronouncements are provided in Note 16 of the financial statements[174](index=174&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) No material changes in market risks have occurred since the disclosures in the company's 2025 Form 10-K - No material changes in market risks have occurred since the disclosures in the 2025 Form 10-K[176](index=176&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures.) As of June 30, 2025, the company's management concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - The Company's disclosure controls and procedures were effective as of **June 30, 2025**[178](index=178&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent quarter[179](index=179&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings.) No material developments in legal proceedings have occurred since those disclosed in the 2025 Form 10-K and its accompanying financial statement notes - No material developments in legal proceedings have occurred since the 2025 Form 10-K[181](index=181&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to the risk factors have occurred since those previously disclosed in the 2025 Form 10-K - No material changes to the risk factors have occurred since the 2025 Form 10-K[182](index=182&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company did not purchase any shares of its common stock during the three months ended June 30, 2025, with approximately **$9 million** remaining available under the share repurchase authorization Period | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 - 30, 2025 | — | $— | | May 1 - 31, 2025 | — | $— | | June 1 - 30, 2025 | — | $— | | Total | — | $— | - Approximately **$9,055 thousand** remains available for share repurchases under the existing authorization[183](index=183&type=chunk) [Item 3. Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) No defaults upon senior securities occurred during the reporting period - No defaults upon senior securities occurred[184](index=184&type=chunk) [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - Mine Safety Disclosures are not applicable to the Company[184](index=184&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information.) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[184](index=184&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the Form 10-Q, including certifications from principal executive and financial officers, and Inline XBRL financial statements and taxonomy documents - Exhibits include certifications from the principal executive and financial officers (31.1, 31.2, 32)[185](index=185&type=chunk) - The financial statements are provided in Inline XBRL format (101.* and 104)[185](index=185&type=chunk)

Financial Data and Key Metrics Changes - Orders increased by 2% year over year to $259 million, driven by an 8% growth in project-related orders, particularly in EMEA [5][6] - Sales for Q1 were $235.9 million, down 2% from the prior year, attributed to a 3% decline in short cycle sales [12][16] - Gross profit decreased by $11.8 million year over year to $77.2 million, impacted by lower sales volume and tariff-related costs [14][16] - Adjusted earnings per diluted share were $0.50, a decrease of $0.12 compared to the prior year, primarily due to a $0.11 tariff-related impact [16][17] Business Line Data and Key Metrics Changes - Short cycle orders were down 4% due to surcharges and price increases, while project-related sales remained unchanged from the prior year despite order growth [5][12] - SG&A expenses decreased by 5% excluding acquisition-related costs, resulting in an adjusted SG&A of $54.8 million [10][15] - Adjusted operating income was $18.5 million with an adjusted operating margin of 7.8% [15] Market Data and Key Metrics Changes - The backlog increased by $67 million or 23% year over year to $360 million, driven by longer cycle project orders [6][12] - Strength was noted in vertical end markets such as battery production, e-commerce, food and beverage, aerospace, oil and gas, and rail projects [6][7] - Tariffs were identified as a headwind, with an expected $10 million impact on operating profit in the first half of the year [9][17] Company Strategy and Development Direction - The company is focused on operational execution, cost control, and advancing its strategic plan, particularly in targeted end markets [18][58] - The pending acquisition of Keto Crosby is expected to scale the business, expand customer capabilities, and enable synergies [10][18] - The company anticipates achieving tariff cost neutrality by 2026 and margin neutrality by fiscal 2027 [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the order backlog and the potential for growth in targeted industries despite macroeconomic uncertainties [6][57] - The company expects the next few quarters to remain volatile but anticipates stabilization in demand over time [6][18] - Management remains focused on mitigating tariff impacts and is implementing price adjustments to offset these costs [9][17] Other Important Information - The company is preparing for the integration of Keto Crosby and expects to close the acquisition by the end of the calendar year [10][36] - Free cash flow was a use of cash of $21.4 million in the quarter, reflecting normal working capital seasonality [16][46] Q&A Session Summary Question: Can you help parse out the gross margin performance in the quarter? - Management noted a 180 basis point erosion in gross margin tied to tariffs and a mix of lower volume of higher margin products [20][22] Question: How should we think about gross margins moving forward? - Management expressed confidence in expanding margins, anticipating improvements as the year progresses and production ramps up [24][25] Question: Can you provide more detail on order backlog in areas like EV battery and e-commerce? - Management highlighted a strong funnel of opportunities in battery production, e-commerce, and defense industries, with positive trends in steel and heavy equipment [27][28] Question: Can you provide an update on the Keto Crosby acquisition? - Management confirmed that the acquisition is advancing and expects to close by the end of the year, with preparations for integration underway [34][36] Question: How much of the backlog is actionable this year? - Management indicated that 70-80% of the current backlog is actionable within the fiscal year, with the remainder extending beyond that timeframe [40][41] Question: What are the expectations for cash flow this year? - Management noted that cash flow predictions are challenging due to deal costs and timing of the acquisition closure, but improvements in working capital are expected [46][47]

July 30, 2025 Q1 Fiscal 2026 Financial Results Conference Call David Wilson President & Chief Executive Officer Gregory Rustowicz Executive Vice President Finance & Chief Financial Officer Kristine Moser Vice President, Investor Relations & Treasurer Safe Harbor Statement This presentation and the accompanying oral discussion contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the use of ...

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Columbus McKinnon (CMCO) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted fo ...

"The first quarter largely played out as expected as we delivered sustained order growth in an environment where global tariff policies pressured near-term results," said David J. Wilson, President and Chief Executive Officer. "While the geographic distribution of tariffs has evolved, we continue to anticipate approximately $10 million of net tariff impact in the first half of fiscal 2026, consistent with our prior guidance." "The demand environment remains healthy and our optimism for the business remains ...

Core Insights - Columbus McKinnon Corporation reported a net sales decrease of $3.8 million, or 1.6%, for the first quarter of fiscal year 2026 compared to the prior year, with net sales totaling $235.9 million [2][4] - The company experienced a net loss of $1.9 million, reflecting a net loss margin of (0.8%), which includes $8.1 million in acquisition-related expenses and $4.2 million in tariff impacts [4][5] - The backlog increased by 23% year-over-year to $360.1 million, indicating a healthy demand environment with a book-to-bill ratio of 1.1x [4][26] Financial Performance - Net sales for Q1 FY26 were $235.9 million, down from $239.7 million in Q1 FY25, with U.S. sales slightly declining by 0.7% and non-U.S. sales decreasing by 2.7% [2][4] - Gross profit fell to $77.2 million, a decrease of 13.3% from $89.0 million in the prior year, resulting in a gross margin of 32.7% [3][4] - Adjusted EBITDA for the quarter was $30.8 million, down 17.9% from $37.5 million in the previous year, with an adjusted EBITDA margin of 13.0% [5][39] Operational Highlights - The company anticipates a net tariff impact of approximately $10 million in the first half of fiscal 2026, consistent with prior guidance [1][4] - Columbus McKinnon is progressing towards the acquisition of Kito Crosby, expecting benefits from scale, improved solutions, and realization of synergies [1][4] - Capital allocation priorities include paying down debt while maintaining consistent dividend payments, with a focus on advancing the Intelligent Motion strategy [6][8] Guidance and Outlook - The company reaffirms its fiscal year 2026 guidance, expecting net sales and adjusted EPS to be flat to slightly up, while factoring in approximately $35 million of interest expense and $30 million of amortization [7][8] - The guidance does not account for the pending Kito Crosby acquisition and reflects the current understanding of the volatile tariff policy environment [7][8]

Company Overview - Columbus McKinnon Corporation is a leading designer, manufacturer, and marketer of intelligent motion solutions for material handling [3] - The company focuses on commercial and industrial applications that require safety and quality through superior design and engineering [3] Upcoming Financial Results - Columbus McKinnon will release its first quarter fiscal 2026 results before the market opens on July 30, 2025 [1] - Management will host a conference call at 10:00 a.m. Eastern Time to review financial and operating results and discuss corporate strategy and outlook [2] Conference Call Details - The conference call will be available via live webcast on the company's Investor Relations webpage [2] - A replay of the call will be accessible approximately two hours after the call, available until August 13, 2025 [2]

Core Insights - Columbus McKinnon Corporation published its fifth annual Corporate Sustainability Report, emphasizing its commitment to environmental stewardship, social responsibility, and governance [1][2] - The company aims to strengthen its business through a focused sustainability strategy that aligns with its operational goals, enhancing financial results and long-term value while reducing environmental impacts [2] Sustainability Achievements - Significant progress in emissions reduction, particularly in Scope 1 and Scope 2 emissions intensity [5] - Ongoing initiatives in recycling and waste reduction [5] - Enhanced role of global Green Teams in educating employees and implementing carbon footprint mitigation strategies [5] Employee Engagement and Development - Increased focus on professional development and employee engagement to support growth strategies [5] Regulatory Preparedness - Proactive measures taken in anticipation of the European Union Corporate Sustainability Reporting Directive [5]

Company Overview - Columbus McKinnon (CMCO) is a global leader in intelligent motion solutions for material handling, with a 150-year history[9] - The company estimates a total addressable market of $20 billion[9, 23] - CMCO's net sales are approximately $1 billion, with a 5-year sales growth CAGR of around 4%[9] - Adjusted EBITDA margin is approximately 16%, and free cash flow conversion is greater than 100%[9] - Revenue mix: Lifting Solutions accounts for 62%, Specialty Conveying 16%, Automation 13%, and Linear Motion 9%[7] Kito Crosby Acquisition - CMCO announced the acquisition of Kito Crosby for $2.7 billion[28] - Kito Crosby has approximately $1.1 billion in 2024 revenue, with a 7% revenue CAGR from 2021-2024[31] - Kito Crosby's revenue mix: Lifting & Securement Consumables 54%, Installed Lifting Solutions 32%, and Technology & Specialty Solutions 14%[34] - The acquisition is expected to more than double the size of the company, with a 23% Adjusted EBITDA Margin[43] - The company expects to close the acquisition in late 2025[45] Synergies and Financials - The company anticipates approximately $80 million in pre-tax run-rate cost synergies from the Kito Crosby acquisition[48] - The company expects to offset approximately $40 million EBITDA impact from tariffs through mitigation actions by H2 FY26[58]