Summary of Columbus McKinnon Conference Call Company Overview - Columbus McKinnon is a global leader in intelligent motion solutions for material handling with over 150 years of history and public since 1996 [2][3] - The company generates approximately $1 billion in sales with a 16% EBITDA margin, with 60% of business in North America and 30% in EMEA [4] Business Segments - The company operates in four main platforms: - Lifting (60% of revenue) providing hoists and rigging materials [5] - Precision conveyance, enhanced through acquisitions like Dorner and Garvey [6] - Automation, stemming from the Magnetek acquisition [6] - Linear motion, representing 9% of the company [7] Growth Strategy - Columbus McKinnon is focused on growth and margin expansion through strategic acquisitions and entering secular growth categories [3][12] - Recent acquisitions include: - Keto Crosby for $2.7 billion, expected to close by the end of the calendar year [10][19] - Dorner Corporation for $485 million, enhancing precision conveyance capabilities [12] - Garvey Corporation and Montrotech, expanding automation and precision handling [16][18] Financial Performance and Projections - The acquisition of Keto Crosby is expected to double the company's size and triple EBITDA, with a projected EBITDA margin of 23% [27] - Anticipated net synergies of $70 million from the acquisition, with significant free cash flow generation expected [28][39] - The company aims to reduce net leverage to about 3x within two years [40] Market Dynamics - The company is experiencing strong demand in sectors such as battery production, e-commerce, life sciences, food and beverage, and aerospace [58][61][63] - Challenges include tariff impacts, with a potential $10 million headwind expected in the current fiscal year [43][45] - Short cycle orders have been weaker, but project business is growing, indicating a shift in demand profiles [50][54] Competitive Landscape - The industry has shown rational pricing behavior in response to inflation and tariffs, with Columbus McKinnon implementing pricing actions to mitigate tariff impacts [47][49] - The company is well-positioned to leverage its global presence and expertise in various markets, including defense and energy [68] Conclusion - The Keto Crosby acquisition is viewed as a transformative opportunity, enhancing scale and operational capabilities while allowing Columbus McKinnon to continue its strategic focus on intelligent motion solutions [70][71]

CHARLOTTE, N.C., June 9, 2025 /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company"), today announced that it will present at the 2025 Wells Fargo Industrials & Materials Conference on June 12, 2025, at approximately 1:45 p.m. Eastern Time.The live audio webcast will be available via the Columbus McKinnon Investor Relations webpage at investors.cmco.com. A replay of the webcast will be available on the Company's Investor Relations page shortly following the prese ...

Financial Performance - In fiscal 2025, the company's sales were $537,549,000 (56%) from the U.S. and $425,478,000 (44%) from non-U.S. markets[33]. - The company's product sales breakdown for fiscal 2025 included 50% from hoists, 16% from high-precision conveying systems, and 11% from digital power control systems[33]. - The company's backlog of orders as of March 31, 2025, was approximately $322.5 million, an increase from $280.8 million on March 31, 2024, reflecting a growth of about 14.9% year-over-year[49]. - Raw material and component purchases totaled approximately $375 million in fiscal 2025, representing 59% of the cost of products sold[58]. - The overall safety incident rate for fiscal 2025 was 0.54, down from 0.71 in fiscal 2024, indicating improved workplace safety[59]. Market Position and Strategy - The company achieved a market leadership position in hoists, material handling digital power control systems, and precision conveyors in the U.S. and Europe[19]. - The precision conveyance acquisitions of Dorner, Garvey, and montratec expanded the company's product offerings and established a platform for growth in a highly fragmented industry[23][24]. - The Kito Acquisition is expected to close during fiscal 2026 and will enhance the company's geographic reach and expand its lifting securement and consumables portfolio[26]. - The company plans to fund the Kito Acquisition through $3,050,000,000 in committed debt financing and $800,000,000 of preferred equity investment[27]. - The company's Total Addressable Market (TAM) increased by approximately $5 billion with the acquisition of conveyor businesses, with the specialty conveying microsegment growing at an estimated 6% to 8% annually[22]. - The company is focused on expanding its market share through product localization, new product development, and advancements in automation[21]. - The company has a strategic growth framework that includes strengthening, growing, expanding, and reimagining its core business[21]. - The company is committed to maintaining positive perceptions of its brands and successfully integrating acquisitions to enhance its competitive position[13]. Global Operations - The company operates in 25 countries and had 3,478 employees globally as of March 31, 2025[55]. - In fiscal 2025, 44% of net sales were generated from foreign manufacturing plants and sales offices, indicating significant international exposure[207]. Risk Management - The company is exposed to market risks including commodity prices for raw materials and foreign currency exchange rates, which may impact financial performance[205]. - The company has a cross currency swap agreement with a notional amount of $72,040,000, maturing on March 31, 2028, to hedge against foreign exchange rate changes[208]. - The company has foreign currency forward agreements with a notional amount of $36,528,000 to hedge forecasted inventory purchases in foreign currencies[209]. - A 10% change in the value of the U.S. dollar against significant foreign currencies would impact income from operations by approximately $2,407,000[207]. - The company actively monitors trade tariffs and implements pricing strategies, including tariff surcharges, to mitigate their impact[206]. Financial Obligations - As of March 31, 2025, the company had $437.6 million outstanding under Term Loan B and $25.0 million under the AR Securitization Facility, both subject to variable interest rates[210]. - The company expects to reclassify approximately $376,000 from accumulated other comprehensive loss (AOCL) to interest expense over the next 12 months due to interest rate swaps[212]. - A 100 basis point increase in variable rates would increase annual cash interest by approximately $1.1 million[213]. - The company expects to reclassify approximately $36,000 from AOCL to foreign currency exchange loss (gain) in the next 12 months related to an intercompany loan[208]. Employee Engagement and Culture - The company emphasizes a people-first culture, focusing on employee engagement, training, and development opportunities to drive strategic progress[60]. - The principal competitive factors include customer service, product availability, and brand reputation, which are critical for maintaining market position[51]. - The company has established a network of 17 chain repair service stations and over 229 certified hoist service and repair stations globally to enhance service access[47].

Columbus McKinnon (CMCO) Q4 2025 Earnings Call May 28, 2025 10:00 AM ET Company Participants Kristine Moser - VP of Investor Relations & TreasurerDavid Wilson - President, Chief Executive Officer & DirectorGregory Rustowicz - SVP Finance, Chief Financial Officer & TreasurerJames Kirby - Vice PresidentJon Tanwanteng - Managing Director Conference Call Participants Steve Ferazani - Senior Equity Analyst - Diversified Industrials & Energy Operator Good morning, and welcome to Columbus McKinnon's Full Year and ...

Financial Data and Key Metrics Changes - Columbus McKinnon reported fiscal year 2025 net sales of $963 million, down 4% year over year on a constant currency basis, reflecting lower volume due to short cycle order softness [14] - In the fourth quarter, sales were $246.9 million, a decrease of 5% from the prior year on a constant currency basis, primarily due to a 9% decrease in short cycle sales [14] - Gross profit for the quarter was $79.8 million, down $14.5 million year over year, impacted by factory closure costs and lower sales volume [15] - Adjusted earnings per diluted share decreased by $0.15 versus the prior year, driven by lower volume and unfavorable mix [16] Business Line Data and Key Metrics Changes - Record orders increased by 4% year over year on a constant currency basis, driven by 8% growth in project-related orders and strength in precision conveyance [5] - Short cycle orders were flat on a constant currency basis in the quarter, with improved comparison trends from the third quarter [6] - Backlog increased by 15% year over year to $322.5 million, reflecting strength in project-related orders, particularly in precision conveyance [14] Market Data and Key Metrics Changes - Demand remains strong in vertical end markets such as battery production, life sciences, e-commerce, food and beverage, and aerospace [8] - The company is seeing potential early benefits from industries impacted by tariffs, particularly in steel and heavy equipment [9] - Order activity through mid-May remains encouraging, with orders up year over year and continued overperformance in precision conveyance [8] Company Strategy and Development Direction - The company is focused on operational execution, managing costs, and executing its strategic plan while navigating a challenging macroeconomic environment [12] - Columbus McKinnon is excited about the pending acquisition of Keto Crosby, which is expected to scale the business and enhance customer capabilities [11] - The company aims to achieve tariff cost neutrality by the second half of fiscal 2026 and margin neutrality over time, likely in fiscal 2027 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about order performance and quotation activity despite macro uncertainty [9] - The company anticipates that the current project versus short cycle mix dynamics will continue to impact sales and margins in the first quarter [9] - Management remains focused on meeting customer needs and delivering long-term value to shareholders despite geopolitical and trade policy uncertainties [56] Other Important Information - The company paid down $60 million of debt in fiscal 2025, including $15 million in the fourth quarter, and continues to prioritize debt repayment [17] - Adjusted EBITDA for the fourth quarter was $36.1 million, with an adjusted EBITDA margin of 14.6% [17] - The company expects a $40 million EBITDA impact from unmitigated tariff exposure based on current knowledge [18] Q&A Session Summary Question: What is the tariff rate embedded for China and EU for the $0.20 to $0.30 headwind in the first half of the year? - The company is factoring in 14.5% on China tariffs and 10% on EU tariffs [25] Question: Can you discuss the near-term outlook and how short cycle sales have trended? - Short cycle sales improved in the latter portion of Q4, with flat year-over-year performance, and growth in order demand is expected [27] Question: Can you elaborate on the tariff situation and the expected net mitigation? - The company anticipates that demand remains uncertain, with potential positive impacts from surcharges and tariffs, but volume reductions may occur due to price increases [32] Question: Where is the strength in precision conveyance orders coming from? - Precision conveyance orders have seen robust demand, particularly from Montrotech and Dorner businesses, with strength in end markets like battery production and e-commerce [35] Question: How does the mix impact margins given the strong precision conveyance orders? - While precision conveyance orders were up, sales were down, leading to a negative impact on margins due to lower volume and mix [41]

Columbus McKinnon shares have lost about 52.3% since the beginning of the year versus the S&P 500's gain of 0.7%. Columbus McKinnon (CMCO) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 3.45%. A quarter ago, it was expected that this maker of materials handling products and systems ...

May 28, 2025 Q4 and Fiscal Year 2025 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 t ...

Financial Performance - Net sales totaled $963.0 million, down 5%, impacted by short cycle order softness and longer delivery times for project-related orders [3]. - Net loss of $5.1 million with a net margin of (0.5%), including $22.1 million in non-cash pension settlement costs and $10.3 million related to the pending acquisition of Kito Crosby [3]. - Adjusted EPS for Q4 FY 25 was $0.60, down 20% from the previous year [5]. - Net sales for the year ended March 31, 2025, decreased by 5.0% to $963.0 million from $1,013.5 million in the previous year [18]. - Gross profit margin declined to 33.8% from 37.0%, with gross profit falling by 13.1% to $325.7 million [18]. - Income from operations dropped significantly by 49.1% to $54.6 million, resulting in an operating margin of 5.7% compared to 10.6% in the prior year [18]. - Net loss for the year was $5.1 million, a stark contrast to the net income of $46.6 million reported for the previous year [18]. - For the three months ended March 31, 2025, net sales were $246.9 million, down 7.0% from $265.5 million in the same period last year [20]. - The company reported a significant decline in income from operations for the quarter, down 80.6% to $4.9 million, with an operating margin of 2.0% [20]. - Average basic shares outstanding remained relatively stable at 28.7 million, with basic loss per share reported at $(0.09) compared to earnings of $0.41 in the prior year [20]. - Net income for the three months ended March 31, 2025, was $(2.684) million, compared to $11.809 million for the same period in 2024, indicating a significant decline [44]. - Adjusted EBITDA for the three months ended March 31, 2025, was $36.069 million, down from $42.977 million in the prior year, reflecting a decrease of approximately 16.5% [44]. - Net sales for the three months ended March 31, 2025, were $246.889 million, a decrease of 7% from $265.504 million in the same period of 2024 [44]. - The net income margin for Q1 2025 was (1.1)%, compared to a positive margin of 4.4% in Q1 2024, highlighting a shift to a loss position [44]. - Adjusted EBITDA margin for Q1 2025 was 14.6%, down from 16.2% in Q1 2024, indicating a decline in operational efficiency [44]. Orders and Backlog - Record orders reached $1.0 billion, an increase of 3%, with an 8% growth in project-related business and a 19% increase in precision conveyance [3]. - Backlog increased to $322.5 million, up $41.7 million or 15% [3]. - Backlog increased to $322.5 million as of March 31, 2025, up from $296.5 million at December 31, 2024, representing an increase of 8.4% [31]. - Long-term backlog as a percentage of total backlog rose to 59.0% from 56.0% year-over-year [31]. Cash Flow and Assets - Net cash provided by operating activities was $35.6 million for the three months ended March 31, 2025, compared to $11.4 million in the previous quarter [31]. - Free Cash Flow for the three months ended March 31, 2025, was $29.5 million, significantly higher than $6.2 million in the previous quarter [31]. - Total assets decreased to $1.74 billion from $1.83 billion, while total liabilities also declined to $856.7 million from $943.9 million [22][23]. Expenses and Costs - Research and development expenses decreased by 8.9% to $23.9 million, representing 2.5% of net sales [18]. - Acquisition deal and integration costs amounted to $11.014 million for the three months ended March 31, 2025, compared to only $3,000 in the same period last year [44]. - The company incurred $3.161 million in costs related to the startup of a new factory in Monterrey, MX, for the three months ended March 31, 2025 [44]. - Interest and debt expense for Q1 2025 was $8.141 million, slightly down from $9.169 million in Q1 2024 [44]. Strategic Initiatives - The acquisition of Kito Crosby is anticipated to enhance the company's product offerings and geographic reach, with closing expected later in the calendar year [6][7]. - The company plans to allocate capital to pay down debt while maintaining consistent dividend payments [8]. - The company is actively working to mitigate tariff impacts through supply chain adjustments and pricing strategies [2]. Dividends - The company declared dividends of $0.28 per common share, consistent with the previous year [18].

Core Insights - Columbus McKinnon Corporation reported a decrease in net sales for both the fourth quarter and the full fiscal year 2025, with a net loss attributed to various non-cash costs and operational challenges [1][5][10]. Fiscal Year 2025 Highlights - Net sales for fiscal year 2025 were $963.0 million, down 5% from $1,013.5 million in fiscal year 2024 [5][16]. - The company experienced a net loss of $5.1 million for the year, which included significant non-cash pension settlement costs and factory consolidation costs [5][16]. - Adjusted EBITDA for the year was $150.5 million, with an adjusted EBITDA margin of 15.6% [5]. Fourth Quarter 2025 Highlights - Fourth quarter net sales were $246.9 million, a decrease of 7% compared to $265.5 million in the same quarter of the previous year [3][17]. - U.S. sales fell by 10.1%, while non-U.S. sales decreased by 2.7% [3][4]. - Gross profit for the fourth quarter was $79.8 million, down 15.4% from $94.3 million in the prior year, resulting in a gross margin of 32.3% [4][17]. Orders and Backlog - The company reported record orders of $1.0 billion, up 3%, driven by growth in project-related business and precision conveyance [5][26]. - The backlog increased to $322.5 million, reflecting a 15% rise compared to the previous year [5][26]. Kito Crosby Acquisition - Columbus McKinnon is progressing towards the acquisition of Kito Crosby, which is expected to enhance its product offerings and geographic reach [7][8]. - The acquisition is subject to regulatory clearance and is anticipated to close later in the calendar year [8]. Fiscal Year 2026 Guidance - The company expects net sales and adjusted EPS to be flat to slightly up for fiscal 2026, not accounting for the Kito Crosby acquisition [10][11]. - The guidance reflects ongoing challenges from tariff policies impacting supply chain costs [10][11]. Capital Allocation - Columbus McKinnon plans to prioritize debt repayment to strengthen its balance sheet while maintaining consistent dividend payments [9].

Group 1 - Columbus McKinnon Corporation will release its fourth quarter and full year fiscal 2025 results on May 28, 2025, before the market opens [1] - A conference call will be held on the same day at 10:00 a.m. Eastern Time to discuss the financial and operating results, as well as corporate strategy and outlook [2] - The conference call will be available via live webcast and a replay will be accessible for two weeks after the call [2] Group 2 - Columbus McKinnon is a leading designer, manufacturer, and marketer of intelligent motion solutions for material handling, focusing on commercial and industrial applications [3] - Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations, and digital power and motion control systems [3] - The company emphasizes safety and quality through superior design and engineering know-how [3]