Columbus McKinnon Reports Q1 FY26 Results and Reaffirms Guidance

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]