Columbus McKinnon Reports 8% Sales Growth in Q2 FY26 and Reaffirms Guidance

Core Insights - Columbus McKinnon Corporation reported a solid second quarter for fiscal year 2026, with net sales reaching $261.0 million, an increase of 7.7% compared to the prior year [3][5]. - The company is experiencing a recovery in the U.S. short-cycle market, while order conversion rates in EMEA have slowed due to weaker macroeconomic sentiment [2][5]. - The company anticipates a $10 million tariff-related impact for the full year but expects to achieve tariff cost neutrality by the end of the fiscal year [2][8]. Financial Performance - Net sales increased by $18.7 million, driven by higher volume, price improvements, and favorable currency translation [3][5]. - U.S. sales rose by $15.2 million, or 11.5%, while non-U.S. sales increased by $3.5 million, or 3.2% [3][5]. - Gross profit for the quarter was $90.2 million, reflecting a gross margin of 34.5%, up from 30.9% in the prior year [4][17]. Operating Results - Adjusted EBITDA for the quarter was $37.4 million, a sequential increase of 22%, with an adjusted EBITDA margin of 14.3% [5][6]. - Net income was reported at $4.6 million, with a net income margin of 1.8%, which includes $10 million in acquisition-related expenses [5][6]. - The company’s operating margin improved to 4.7%, compared to 4.5% in the previous year [6][17]. Capital Allocation and Guidance - The company remains committed to debt repayment and consistent dividend payments while planning to utilize significant free cash flow for its Intelligent Motion strategy [7][8]. - Fiscal year 2026 guidance includes an increase in net sales outlook and reaffirmation of adjusted EPS, excluding the impact of the pending Kito Crosby acquisition [8][9]. - The guidance assumes tariff cost neutrality by the end of fiscal 2026, benefiting from price increases and supply chain adjustments [8][9].