Columbus McKinnon Q3 Earnings Call Highlights

Core Insights - Columbus McKinnon reported strong fiscal Q3 results with double-digit year-over-year growth in sales, orders, adjusted EPS, and backlog, indicating robust operational performance and market demand [1][5][6] Financial Performance - Net sales reached $258.7 million, a 10.5% increase from the previous year, driven by higher volume, pricing, and favorable currency translation [1][5] - Orders increased by 11% to $247 million, with notable growth in the U.S. (up 15%) and modest growth in EMEA (up 3%) [6][14] - Adjusted EBITDA was approximately $39.8 million, reflecting a margin of 15.4%, with GAAP income per diluted share at $0.21, up $0.07 year-over-year [7][10] Strategic Initiatives - The company closed the acquisition of Kito Crosby, which is viewed as a transformational move, and is now focusing on integration and synergy capture [2][3][6] - Columbus McKinnon has set a target for $70 million in net run-rate cost synergies, with a realization cadence of 20% in year one, 60% in year two, and 100% in year three [1][6] Financing and Debt Management - A significant financing package was completed, including a $1.65 billion Term Loan B and $900 million in senior notes, with plans to use approximately $160 million from divestiture proceeds for debt repayment [4][19] - The company aims to reduce net leverage to below 4x by FY2028, prioritizing deleveraging as a key capital allocation strategy [4][13] Market Outlook and Demand - U.S. demand is expected to remain stable, supported by lower interest rates and favorable tax legislation, while EMEA is anticipated to experience choppiness in demand [14][15] - Management highlighted strength in various end markets, including general industrial, automation, and construction, while noting slower demand in certain sectors like energy and utilities [15] Guidance and Future Plans - Due to the acquisition and divestiture uncertainties, the company has withdrawn its standalone FY2026 guidance and plans to provide FY2027 guidance in May 2026 [16] - The combined company is expected to double its revenue base and enhance its position as a global provider of intelligent motion solutions for material handling [17]