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]

Core Insights - Columbus McKinnon Corporation has been selected as the preferred supplier for stacking and intralogistics technology for PowerCo, a subsidiary of Volkswagen Group, to support its gigafactory projects in Canada and Spain [1][2] - The company will provide its advanced montrac® precision conveyance technology for battery cell stacking and transportation within the new gigafactories, indicating a significant growth opportunity with over $100 million in potential orders in the coming years [2][4] Company Overview - Columbus McKinnon is a leading designer and manufacturer of intelligent motion solutions, focusing on efficient material handling technologies [3] - The company’s product offerings include hoists, crane components, precision conveyor systems, and digital power and motion control systems, emphasizing safety and quality through superior design [3] Technology and Innovation - The montrac® system, acquired from montratec GmbH, is designed for fully automated and energy-efficient material flow, suitable for various industrial applications including cleanroom production [4][5] - The technology features a standardized IO-Link control interface, enhancing its adaptability to customer-specific applications and process expansions [4] Market Position - Columbus McKinnon is reinforcing its leadership in the rapidly growing electrification and battery production sectors, evidenced by a fourth consecutive quarter of significant orders related to battery production [7]

Group 1 - Columbus McKinnon Corporation will present at the Sidoti Small Cap Virtual Investor Conference on March 20, 2025, at approximately 1:45 p.m. Eastern Time [1] - A live audio webcast of the presentation will be available on the Columbus McKinnon Investor Relations webpage, with a replay accessible until April 3, 2025 [2] - Columbus McKinnon is a leading designer, manufacturer, and marketer of intelligent motion solutions, focusing on commercial and industrial applications [3] Group 2 - Key products of Columbus McKinnon 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]

Financial Performance - Net sales for Q3 FY25 were $234.1 million, a decrease of $20.0 million or 7.9% compared to Q3 FY24[3] - GAAP EPS for Q3 FY25 was $0.14, a decrease of 58.8% from $0.34 in Q3 FY24[5] - Net sales for the nine months ended December 31, 2024, were $716.1 million, a decrease of 4.3% compared to $748.0 million for the same period in 2023[18] - Gross profit for the nine months ended December 31, 2024, was $245.9 million, down 12.4% from $280.5 million in 2023, resulting in a gross profit margin of 34.3%[18] - Income from operations decreased by 39.2% to $49.6 million for the nine months ended December 31, 2024, compared to $81.7 million in 2023[18] - Net loss for the nine months ended December 31, 2024, was $2.5 million, a significant decline from a net income of $34.8 million in 2023[18] - Net income for the three months ended December 31, 2024, is $4.0 million, compared to $9.7 million in the same period last year[40] - Net income for the three months ended December 31, 2024, was $3.96 million, compared to $9.73 million for the same period in 2023, reflecting a decrease of 59.3%[42] Operating Metrics - Operating margin for Q3 FY25 was 7.6%, down from 10.6% in the prior year, reflecting a decline of 300 basis points[5] - Orders decreased by 4%, driven by a 6% decrease in short-cycle orders, while EMEA orders increased by 1%[3] - The backlog remains healthy at $296.5 million, indicating continued demand normalization[3] - Total backlog as of December 31, 2024, is $296.5 million, a decrease of 6.9% from $317.6 million on September 30, 2024[29] - Long-term backlog represents 56.0% of total backlog, up from 54.3% in the previous quarter[29] Cash Flow and Debt - The company repaid $15 million of debt in Q3 FY25 and anticipates total debt repayment of $60 million for FY25[3] - Cash and cash equivalents decreased significantly to $41.2 million as of December 31, 2024, from $114.1 million at the beginning of the year[20] - The company reported a net cash used for operating activities of $10.0 million for the nine months ended December 31, 2024, down from $28.6 million in 2023[22] - Net cash provided by operating activities for the three months ended December 31, 2024, is $11.4 million, compared to $9.4 million in the prior quarter[29] - Free Cash Flow for the three months ended December 31, 2024, is $6.2 million, an increase from $4.0 million in the previous quarter[29] - Total debt as of December 31, 2024, was $485.80 million, down from $550.04 million in 2023[44] - The net leverage ratio increased to 3.00x as of December 31, 2024, compared to 2.58x in the previous year[44] Research and Development - Research and development expenses decreased by 20.4% to $5.3 million, representing 2.3% of net sales[15] - Research and development expenses for the nine months ended December 31, 2024, were $17.6 million, representing 2.5% of net sales, down from $19.1 million or 2.6% in 2023[18] Factory and Operational Changes - A consolidation of two additional factories was initiated as part of the ongoing 80/20 footprint simplification plan[2] - The company incurred $14.32 million in new factory start-up costs in Monterrey, Mexico, during the twelve months ended December 31, 2024[44] Dividends and Shareholder Returns - The company declared dividends of $0.14 per common share, consistent with the previous year[18]

February 10, 2025 Q3 Fiscal 2025 Earnings & Kito Crosby Deal Announcement 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 b ...

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $0.56 on sales of $234 million, reflecting an $0.08 impact from unfavorable foreign exchange movements [10][24] - Net sales decreased by 8% year-over-year, primarily due to a 9% decline in short-cycle sales [19][20] - Gross profit decreased by $11.8 million, with a GAAP gross margin of 35.1% and an adjusted gross margin of 36.8% [21][22] - Adjusted EBITDA was $37.8 million with an adjusted EBITDA margin of 16.1% [25] - Free cash flow was $6.2 million, a decrease of $16.9 million compared to the prior year [25][26] Business Line Data and Key Metrics Changes - Short-cycle orders were down 6% year-over-year, while project-related orders remained flat [16] - Precision conveyance grew by 16% and linear motion was up 8% from the prior year [17] - Project-related backlog increased by 3%, driven by strength in precision conveyance and linear motion [18] Market Data and Key Metrics Changes - U.S. customers exhibited cautious behavior due to evolving policy environments, particularly regarding tariffs [11] - Demand in Europe, especially in Germany and France, was subdued [11] Company Strategy and Development Direction - The company is consolidating two smaller precision conveyance factories into its largest U.S. facility as part of its footprint simplification plan [13][14] - The acquisition of Kito Crosby is expected to enhance scale, market position, and financial performance, creating a combined entity with over $2 billion in sales [31][32] - The strategic combination aims to leverage industry megatrends such as nearshoring and labor scarcity [41][42] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about medium to long-term business prospects despite short-term challenges [12][20] - The company anticipates a mid-single-digit sales decrease year-over-year for fiscal 2025, resulting in a low teens decline in adjusted EPS [28][29] - Management is confident in generating over $200 million of free cash flow annually post-acquisition [68] Other Important Information - The company expects to achieve $70 million in net cost synergies by the end of year 3 post-acquisition [32][45] - The acquisition is expected to be accretive to adjusted earnings per share in the first year [34] Q&A Session Summary Question: Early prioritizations for the $70 million in cost savings - Management outlined categories including supply chain optimization and operational efficiency as primary focus areas for cost savings [56] Question: Longer-term margin profile differences between the two businesses - Kito Crosby's portfolio includes critical lifting and securement consumables, which have a more resilient revenue profile [60][62] Question: Concerns about leveraging up in a global uncertainty environment - Management expressed confidence in the free cash flow generation of the combined businesses and expects EBITDA to grow [68][70] Question: Overview of Kito's facilities and tariff implications - Kito's facilities are generally regionally located, with Japan supplying products to the U.S., which poses a moderate risk regarding tariffs [73] Question: Impact of the acquisition on current consolidation efforts - The acquisition fits well within the company's existing growth framework and will not pause current consolidation plans [78][84] Question: Confidence in synergy numbers amid trade war uncertainties - Management believes the synergy targets are achievable and has conducted thorough assessments to validate these numbers [86] Question: Price multiple for Kito Crosby - The acquisition price multiple is 8 times post-synergy leverage and just over 10 pre-synergy [96][98] Question: Kito Crosby's sales and gross margin - Kito Crosby reported $1.1 billion in sales with a gross margin in the high 30s to 40% range [100][102]

Group 1: Earnings Performance - Columbus McKinnon reported quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.74 per share, and down from $0.74 per share a year ago [1] - The earnings surprise was -24.32%, with the company having surpassed consensus EPS estimates only once in the last four quarters [2] - The company posted revenues of $234.14 million for the quarter, missing the Zacks Consensus Estimate by 6.52%, and down from $254.14 million year-over-year [3] Group 2: Stock Performance and Outlook - Columbus McKinnon shares have declined approximately 8% since the beginning of the year, while the S&P 500 has gained 2.5% [4] - The company's earnings outlook is mixed, with current consensus EPS estimates for the coming quarter at $0.93 on revenues of $278.66 million, and $2.98 on revenues of $1.01 billion for the current fiscal year [8] Group 3: Industry Context - The Manufacturing - Material Handling industry, to which Columbus McKinnon belongs, is currently in the bottom 16% of over 250 Zacks industries, indicating potential challenges for stock performance [9]