Financial Performance - Net sales reached $261 million, an increase of 8% year-over-year[6] - Adjusted EBITDA was $37 million, with an Adjusted EBITDA Margin of 14.3%, a sequential increase of 130 bps[6] - GAAP EPS was $0.16, and Adjusted EPS was $0.62, up sequentially from $0.50[6] - Free Cash Flow was $15.1 million, reflecting a notable improvement from the prior year[29, 32] Orders and Backlog - Orders totaled $254 million, a decrease of 3%, impacted by a weaker macroeconomic landscape in EMEA[9] - U S orders grew by 11%[9, 16] - Backlog increased by $34 million or 11% year-over-year to $352 million[9] Profitability - Gross profit increased by $15.4 million or 21% to $90.2 million[25] - Operating income increased 13% to $12.2 million, with an operating margin of 4.7%, expanded 20 bps[26] - Adjusted Operating Income was $25.2 million, with an Adjusted Operating Margin of 9.7%, contracted 140 bps[26] FY2026 Guidance - Net sales are expected to be up low-to-mid single digits[35] - Adjusted EPS is expected to be flat to slightly up[35] - The company expects approximately $35 million of interest expense and $30 million of amortization[35]

Core Viewpoint - Columbus McKinnon (CMCO) reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, but down from $0.7 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +14.81%, with the company having surpassed consensus EPS estimates three times over the last four quarters [2] - Revenues for the quarter ended September 2025 were $261.05 million, surpassing the Zacks Consensus Estimate by 8.81% and up from $242.27 million year-over-year [3] Stock Performance - Columbus McKinnon shares have declined approximately 59.6% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.62 on revenues of $236.41 million, and for the current fiscal year, it is $2.45 on revenues of $971.41 million [8] - The outlook for the Manufacturing - Material Handling industry is currently in the bottom 6% of over 250 Zacks industries, which may impact stock performance [9]

Financial Performance - Net sales for Q2 FY26 reached $261.0 million, an increase of 8% compared to the prior year, driven by growth across all platforms, particularly in lifting and linear motion [3]. - U.S. sales grew by 11.5% to $147.5 million, while non-U.S. sales increased by 3.2% to $113.5 million, impacted by a weaker macroeconomic landscape in EMEA [4]. - Net income for the quarter was $4.6 million, with a net income margin of 1.8%, a significant recovery from a net loss of $15.0 million in the prior year [5]. - Adjusted EBITDA rose to $37.4 million, a 22% sequential increase, with an adjusted EBITDA margin of 14.3% [3]. - Net sales for the six months ended September 30, 2025, were $496.967 million, representing a 3.1% increase from $482.0 million in the same period of 2024 [17]. - Gross profit for the same period was $167.382 million, with a gross profit margin of 33.7%, down from 34.0% in the prior year [17]. - Net income for the six months was $2.697 million, a turnaround from a loss of $6.414 million in the same period last year [17]. - Gross profit for Q3 2025 was $90,160,000, compared to $74,743,000 in Q3 2024, representing a 20.5% increase [33]. - Net sales for Q3 2025 reached $261,047,000, up from $242,274,000 in Q3 2024, indicating a growth of 7.7% [33]. - Net income for Q3 2025 was $4,595,000, a significant recovery from a net loss of $15,043,000 in Q3 2024 [38]. Backlog and Future Outlook - The backlog increased by 11% to $351.6 million, indicating a healthy opportunity funnel [3]. - The company reported a backlog of $351.6 million as of September 30, 2025, with long-term backlog representing 60.4% of total backlog [28]. - Fiscal Year 2026 guidance includes an increase in net sales outlook to low-to-mid single digits and adjusted EPS expected to be flat to slightly up [7]. Costs and Expenses - Research and development expenses decreased by 21.6% to $4.8 million, representing 1.8% of net sales [15]. - Research and development expenses decreased by 21.7% to $9.602 million, accounting for 1.9% of net sales [17]. - Income from operations fell significantly by 44.7% to $17.680 million, resulting in an operating margin of 3.6% compared to 6.6% in the previous year [17]. - The company incurred $9,996,000 in acquisition deal and integration costs during Q3 2025 [35]. - Business realignment costs for Q3 2025 totaled $1,131,000, compared to $281,000 in Q3 2024 [35]. Capital Allocation and Cash Flow - Capital allocation priorities focus on debt repayment and consistent dividend payments, with expectations of significant free cash flow generation [6]. - Cash and cash equivalents decreased to $28.039 million from $53.683 million at the beginning of the year [19]. - Capital expenditures for the period were $6.523 million, down from $10.068 million in the previous year [21]. - The company declared dividends of $0.07 per common share, consistent with the previous year [17]. Operational Developments - The company is preparing for the acquisition of Kito Crosby, with integration readiness and synergy achievement plans in progress [2]. - The company is focused on expanding its operations, including the start-up costs for a new factory in Monterrey, MX, amounting to $1,530,000 in Q3 2025 [40]. Efficiency Metrics - Days sales outstanding improved to 62.5 days from 64.1 days year-over-year, indicating better collection efficiency [28]. - Adjusted Gross Profit for Q3 2025 was $92,106,000, with an Adjusted Gross Margin of 35.3%, compared to 36.3% in Q3 2024 [33]. - Adjusted Operating Income for Q3 2025 was $25,214,000, with an Adjusted Operating Margin of 9.7%, compared to 11.1% in Q3 2024 [35]. - Adjusted Net Income for Q3 2025 was $17,894,000, with Adjusted EPS of $0.62, compared to $0.70 in Q3 2024 [38]. - Adjusted EBITDA for Q3 2025 was $37,433,000, with an Adjusted EBITDA Margin of 14.3%, compared to 13.0% in Q3 2024 [40].

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].

Core Insights - Columbus McKinnon Corporation will release its second quarter fiscal 2026 results on October 30, 2025, before market opens [1] - A conference call will be held at 10:00 a.m. Eastern Time to discuss financial results and corporate strategy [2] - The company specializes in intelligent motion solutions for material handling, focusing on safety and quality in commercial and industrial applications [2] Company Overview - Columbus McKinnon is a leading designer, manufacturer, and marketer of intelligent motion solutions [2] - Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations, and digital power and motion control systems [2] - The company aims to improve lives by efficiently moving, lifting, positioning, and securing materials [2]

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing their offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing significant output and growth in their coverage [1] - There is an ongoing effort to expand transcript-related developments, suggesting a strategic initiative to improve service and reach [1]

Columbus McKinnon Conference Call Summary Company Overview - Columbus McKinnon (NasdaqGS:CMCO) is a global leader in intelligent motion solutions, celebrating its 150th anniversary in 2025 [2][3] - The company has approximately $1 billion in annual sales with an adjusted EBITDA margin of 15% to 16% [3] Industry Insights - The total addressable market for Columbus McKinnon is estimated at $20 billion, which is growing and remains highly fragmented [3] - The company operates across four product categories, with a focus on lifting solutions, precision conveyance, linear motion, and specialty actuation products [4][5] Strategic Growth Initiatives - Columbus McKinnon has a disciplined approach to strategic planning, focusing on scaling its business and enhancing its core platforms [6] - The company has a proven track record of successful M&A transactions and aims to maintain a targeted leverage ratio of approximately two times [3][11] Recent Acquisition - Columbus McKinnon announced the acquisition of Kito Crosby, which is expected to enhance scale and market position, delivering top-tier financial performance [7][9] - The acquisition is anticipated to create significant cash flow and $70 million in net cost synergies, with Kito Crosby already performing at a 23% adjusted EBITDA [11][12] Market Trends and Demand - The company has seen a record backlog of $360 million, up 23% year-over-year, driven by growth in project business despite economic uncertainty [19] - Key growth areas include e-commerce, food and beverage, aerospace, oil and gas, and defense markets [21] Economic Environment and Tariffs - Columbus McKinnon expects to mitigate tariff impacts of approximately $10 million in the first half of the fiscal year, aiming for margin neutrality [25] - The company has successfully implemented price increases and maintains pricing power despite economic challenges [27] Future Outlook - The company is optimistic about demand driven by reshoring and infrastructure investments, particularly in the U.S. [30] - Columbus McKinnon is focused on leveraging synergies from the Kito Crosby acquisition to enhance its financial profile and cash flow generation [44][48] Conclusion - Columbus McKinnon remains committed to delivering long-term value to shareholders and is well-positioned to navigate macroeconomic uncertainties while capitalizing on growth opportunities [50]

Company Overview - Columbus McKinnon (CMCO) has a total addressable market of $20 billion[7] - CMCO's net sales are approximately $1 billion[7] - CMCO's 5-year sales growth CAGR is approximately 4%[7] - CMCO's adjusted EBITDA margin is approximately 15-16%[7] Kito Crosby Acquisition - Kito Crosby's 2024 revenue was $1.1 billion[35] - Kito Crosby's revenue CAGR from 2021 to 2024 was 7%[35] - Kito Crosby serves over 600,000 end-users[35] Financial Performance - In FY24, CMCO's net income was $46.625 million, with an adjusted EBITDA of $166.653 million and an adjusted EBITDA margin of 16.4%[52] - In FY25, CMCO's net loss was $5.138 million, with an adjusted EBITDA of $150.495 million and an adjusted EBITDA margin of 15.6%[52] - In Q2 FY26, CMCO's net loss was $15.665 million, with an adjusted EBITDA of $143.765 million and an adjusted EBITDA margin of 15.0%[52]

Core Viewpoint - Columbus McKinnon Corporation will present at the Sidoti Investor Small-Cap Conference on September 17, 2025, at 8:30 a.m. Eastern Time [1] Company Overview - Columbus McKinnon is a leading designer, manufacturer, and marketer of intelligent motion solutions, focusing on efficiently moving, lifting, positioning, and securing materials [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 in commercial and industrial applications [3] Investor Relations - A live audio webcast of the presentation will be available on the Columbus McKinnon Investor Relations webpage, with a replay accessible until September 24, 2025 [2]

General Information [FORM 10-Q Filing Details](index=1&type=section&id=FORM%2010-Q) Columbus McKinnon Corporation filed its Quarterly Report on Form 10-Q for the period ended June 30, 2025, as a large accelerated filer - Columbus McKinnon Corporation filed its Quarterly Report on Form 10-Q for the period ended June 30, 2025[2](index=2&type=chunk) - The company is classified as a **large accelerated filer**[4](index=4&type=chunk) Common Stock Outstanding (as of July 28, 2025) | Metric | Value | | :--- | :--- | | Common Stock Outstanding (as of July 28, 2025) | 28,725,329 shares | [FORM 10-Q Index](index=3&type=section&id=FORM%2010-Q%20INDEX) The report index details its structure, including Part I (Financial Information) and Part II (Other Information), with corresponding page numbers - The report is structured into two main parts: **Part I. Financial Information** and **Part II. Other Information**, with detailed items listed under each[6](index=6&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section cautions that forward-looking statements regarding financial condition and future performance are subject to risks, including economic conditions, competition, and acquisition integration - The report contains forward-looking statements about financial condition, operations, and future performance, identifiable by words like 'anticipate,' 'expect,' and 'project'[7](index=7&type=chunk) - Actual results may differ materially due to risks such as industrial economic conditions, increased competition, acquisition integration challenges (e.g., Kito), raw material price fluctuations, and global operational risks[8](index=8&type=chunk)[9](index=9&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statement except as required by law[11](index=11&type=chunk) Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited).) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, shareholders' equity, and cash flows, with explanatory notes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20consolidated%20balance%20sheets%20-%20June%2030%2C%202025%20and%20March%2031%2C%202025) Total assets and shareholders' equity increased from March 31, 2025, to June 30, 2025, driven by receivables, inventories, and intangibles, despite a decrease in cash Metric (in thousands) | Metric (In thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $28,722 | $53,683 | | Total current assets | $478,476 | $465,769 | | Total assets | $1,779,192 | $1,738,788 | | Total current liabilities | $259,239 | $257,919 | | Total liabilities | $868,309 | $856,693 | | Total shareholders' equity | $910,883 | $882,095 | - Cash and cash equivalents decreased by **$24,961 thousand** from March 31, 2025, to June 30, 2025[15](index=15&type=chunk) - Total assets increased by **$40,404 thousand**, and total shareholders' equity increased by **$28,788 thousand**[15](index=15&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20consolidated%20statements%20of%20operations%20-%20Three%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) The company reported a **net loss of $1.9 million** for the three months ended June 30, 2025, a significant decline from prior year's net income, due to decreased sales, lower margins, and increased expenses Metric (in thousands, except per share data) | Metric (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net sales | $235,920 | $239,726 | (1.6%) | | Gross profit | $77,222 | $89,030 | (13.3%) | | Income from operations | $5,492 | $21,147 | (74.0%) | | Net income (loss) | $(1,898) | $8,629 | (122.0%) | | Basic income (loss) per share | $(0.07) | $0.30 | (123.3%) | | Diluted income (loss) per share | $(0.07) | $0.30 | (123.3%) | - Net sales decreased by **$3,806 thousand (1.6%)** year-over-year[16](index=16&type=chunk) - Gross profit margin declined from **37.1% to 32.7%**[16](index=16&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20consolidated%20statements%20of%20comprehensive%20income%20(loss)%20-%20Three%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Despite a net loss, the company reported a **comprehensive income of $27.7 million** for the three months ended June 30, 2025, primarily due to a significant positive foreign currency translation adjustment Metric (in thousands) | Metric (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income (loss) | $(1,898) | $8,629 | | Foreign currency translation adjustments | $29,786 | $(3,420) | | Total other comprehensive income (loss) | $29,597 | $(4,336) | | Comprehensive income (loss) | $27,699 | $4,293 | - Foreign currency translation adjustments significantly contributed to other comprehensive income, moving from a **loss of $3,420 thousand** in 2024 to a **gain of $29,786 thousand** in 2025[18](index=18&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=9&type=section&id=Condensed%20consolidated%20statements%20of%20shareholders'%20equity%20-%20Three%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) Shareholders' equity increased to **$910.9 million** as of June 30, 2025, primarily due to a substantial positive change in accumulated other comprehensive income from foreign currency translation adjustments Metric (in thousands) | Metric (In thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total Shareholders' Equity | $910,883 | $882,095 | | Accumulated Other Comprehensive Income (Loss) | $8,496 | $(21,101) | | Retained Earnings | $380,262 | $382,160 | - Accumulated other comprehensive income (loss) saw a significant positive change of **$29,597 thousand**, primarily from foreign currency translation adjustments[20](index=20&type=chunk) - Retained earnings decreased by **$1,898 thousand**, reflecting the net loss for the period[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20consolidated%20statements%20of%20cash%20flows%20-%20Three%20months%20ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) The company experienced a **net decrease in cash and cash equivalents of $25.0 million** for the three months ended June 30, 2025, primarily due to cash used in operating and investing activities Metric (in thousands) | Metric (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $(18,153) | $(10,758) | | Net cash provided by (used for) investing activities | $(3,217) | $(4,041) | | Net cash provided by (used for) financing activities | $(977) | $(30,583) | | Net change in cash and cash equivalents | $(24,961) | $(45,753) | | Cash, cash equivalents, and restricted cash at end of period | $28,972 | $68,623 | - Operating activities used more cash in 2025 (**$18.2 million**) compared to 2024 (**$10.8 million**), driven by changes in working capital[25](index=25&type=chunk) - Financing activities used significantly less cash in 2025 (**$1.0 million**) compared to 2024 (**$30.6 million**), mainly due to lower debt repayments[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20condensed%20consolidated%20financial%20statements%20-%20June%2030%2C%202025) These notes provide detailed disclosures on the company's business, significant transactions, revenue recognition, financial instruments, and other key accounting areas, offering crucial context to the financial statements [1. Description of Business](index=12&type=section&id=1.%20Description%20of%20Business) Columbus McKinnon Corporation designs, manufactures, and markets intelligent motion solutions globally, with approximately **57% of net sales** to U.S. customers for the quarter - The Company designs, manufactures, and markets intelligent motion solutions for material handling, including hoists, crane components, and precision conveyor systems[28](index=28&type=chunk) - Sales to U.S. customers accounted for approximately **57% of total net sales** for the three months ended June 30, 2025[29](index=29&type=chunk) [2. Acquisitions & Disposals](index=12&type=section&id=2.%20Acquisitions%20%26%20Disposals) The company announced the **$2.7 billion acquisition of Kito Crosby Limited**, expected to close in fiscal 2026, funded by committed debt and preferred equity, incurring **$8.1 million** in related costs this quarter - The Company announced the acquisition of Kito Crosby Limited for **$2.7 billion**, expected to close in fiscal 2026, aiming to become a leader in material handling solutions[30](index=30&type=chunk)[31](index=31&type=chunk) - The acquisition will be funded by **$3.05 billion** in committed debt financing and an **$800 million** perpetual convertible preferred equity investment from Clayton, Dubliner & Rice (CD&R)[31](index=31&type=chunk) Metric | Metric | Amount (in thousands) | | :--- | :--- | | Kito Acquisition Value | $2,700,000 | | Acquisition, integration planning, and deal-related costs (Q1 FY26) | $8,103 | | Committed Debt Financing | $3,050,000 | | CD&R Preferred Equity Investment | $800,000 | [3. Revenue & Receivables](index=13&type=section&id=3.%20Revenue%20%26%20Receivables) Revenue is recognized at shipment for standard products and generally upon project completion for custom engineered products, with **net sales of $235.9 million** for the quarter - Revenue from standard products is recognized at shipment, while custom engineered products are generally recognized upon project completion[34](index=34&type=chunk)[35](index=35&type=chunk) Net Sales by Product Grouping (Three Months Ended) | Net Sales by Product Grouping (Three Months Ended) | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Industrial Products | $83,202 | $83,779 | | Crane Solutions | $95,167 | $97,547 | | Engineered Products | $21,663 | $22,264 | | Precision Conveyor Products | $35,863 | $36,086 | | Total Net Sales | $235,920 | $239,726 | Contract Balances (in thousands) | Contract Balances (in thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Customer advances (contract liabilities), ending balance | $21,747 | $16,842 | | Allowance for doubtful accounts, ending balance | $4,426 | $3,778 | [4. Fair Value Measurements](index=15&type=section&id=4.%20Fair%20Value%20Measurements) The company measures financial assets and liabilities using a three-level fair value hierarchy, classifying marketable securities and terminated pension plan assets as Level 1, and derivative instruments and certain debt as Level 2 - Fair value measurements are categorized into **Level 1** (quoted prices in active markets), **Level 2** (significant observable inputs), and **Level 3** (significant unobservable inputs)[49](index=49&type=chunk)[50](index=50&type=chunk) - Marketable securities and terminated pension plan assets are valued using **Level 1** inputs[53](index=53&type=chunk) Financial Instrument (in thousands) | Financial Instrument (in thousands) | June 30, 2025 Fair Value | Level | | :--- | :--- | :--- | | Marketable securities | $10,325 | 1 | | Annuity contract | $1,233 | 2 | | Terminated pension plan assets | $5,633 | 1 | | Foreign exchange contracts (asset) | $49 | 2 | | Interest rate swap (liability) | $(3,019) | 2 | | Cross currency swap (liability) | $(7,352) | 2 | | Term Loan B (disclosed) | $(432,290) | 2 | | AR Securitization Facility (disclosed) | $(32,400) | 2 | [5. Inventories](index=18&type=section&id=5.%20Inventories) Net inventories increased to **$216.2 million** at June 30, 2025, from **$198.6 million** at March 31, 2025, with raw materials as the largest component, and interim LIFO calculations are estimates Inventory Component (in thousands) | Inventory Component (in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Raw materials | $176,551 | $163,053 | | Work-in-process | $33,786 | $30,349 | | Finished goods | $39,283 | $37,197 | | Total at cost - FIFO basis | $249,620 | $230,599 | | LIFO cost less than FIFO cost | $(33,417) | $(32,001) | | Net inventories | $216,203 | $198,598 | - Net inventories increased by **$17,605 thousand** from March 31, 2025, to June 30, 2025[58](index=58&type=chunk) - Interim LIFO calculations are estimates and subject to change at year-end[58](index=58&type=chunk) [6. Marketable Securities and Other Investments](index=19&type=section&id=6.%20Marketable%20Securities%20and%20Other%20Investments) Marketable securities, held for liability claims, are recorded at fair value, resulting in a **$198 thousand gain** for the quarter, and the company holds a **49% equity interest in EMC**, contributing **$653 thousand** to investment income - Marketable securities are held for the settlement of general and product liability insurance claims and are recorded at fair value[61](index=61&type=chunk) Investment Metric (in thousands) | Investment Metric (in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Marketable securities | $10,325 | $10,112 | | Unrealized gains/losses on marketable securities (Q1 FY26) | $198 (gain) | Immaterial (gain) | | Equity investment in EMC | $5,359 | $4,318 | | EMC income contribution (Q1 FY26) | $653 | $121 | [7. Goodwill and Intangible Assets](index=19&type=section&id=7.%20Goodwill%20and%20Intangible%20Assets) Goodwill increased to **$732.4 million** at June 30, 2025, primarily due to currency translation, with no impairment indicators, and identifiable intangible assets totaled **$361.0 million** with **$7.6 million** amortization expense for the quarter - Goodwill is tested for impairment at least annually; no impairment indicators were present in Q1 FY26[63](index=63&type=chunk)[64](index=64&type=chunk) Goodwill (in thousands) | Goodwill (in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Balance at period end | $732,413 | $710,807 | | Change due to currency translation | $21,606 | N/A | | Linear Motion Products reporting unit | $9,699 | $9,699 | | Rest of Products reporting unit | $320,697 | $305,110 | | Precision Conveyance reporting unit | $402,017 | $395,998 | Identifiable Intangible Assets (Net, in thousands) | Identifiable Intangible Assets (Net, in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total Net | $360,986 | $356,562 | | Amortization expense (Q1 FY26) | $7,635 | $7,500 | | Estimated annual amortization (next 5 years) | ~$31,000 | N/A | [8. Derivative Instruments](index=20&type=section&id=8.%20Derivative%20Instruments) The company uses derivative instruments, including cross currency swaps and foreign currency forward agreements, to manage foreign currency and interest rate exposures, designating them as cash flow hedges, with **$355 million** notional amount of interest rate swaps - Derivative instruments are used to manage foreign currency and interest rate exposures, not for speculative trading[68](index=68&type=chunk) - Cross currency swaps hedge intercompany loans, foreign currency forward agreements hedge forecasted inventory purchases, and interest rate swaps hedge variable interest rate debt[71](index=71&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) Derivative Instrument (in thousands) | Derivative Instrument (in thousands) | Notional Amount (June 30, 2025) | Fair Value (June 30, 2025) | | :--- | :--- | :--- | | Cross currency swap | $66,573 | $(7,352) | | Foreign exchange contracts | $5,626 | $49 | | Interest rate swaps | $355,000 | $(3,019) | [9. Debt](index=23&type=section&id=9.%20Debt) The company's debt includes a Term Loan B with **$432.6 million** outstanding and an AR Securitization Facility with **$32.4 million** outstanding, with plans to repay approximately **$50 million** in debt over the next 12 months - The Term Loan B has an outstanding principal balance of **$432,560 thousand** as of June 30, 2025[79](index=79&type=chunk) - The AR Securitization Facility had **$32,400 thousand** borrowings outstanding as of June 30, 2025[83](index=83&type=chunk) - The Company plans to repay approximately **$50,000 thousand** in debt over the next 12 months[79](index=79&type=chunk)[84](index=84&type=chunk) [10. Net Periodic Benefit Cost](index=24&type=section&id=10.%20Net%20Periodic%20Benefit%20Cost) Net periodic pension cost for the three months ended June 30, 2025, was **$493 thousand**, a decrease from the prior year, following the termination of one U.S. pension plan, with **$4.1 million** expected contributions in fiscal 2026 Pension Cost Component (in thousands) | Pension Cost Component (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Service costs | $110 | $120 | | Interest cost | $1,839 | $3,090 | | Expected return on plan assets | $(1,213) | $(2,497) | | Net amortization | $(243) | $241 | | Net periodic pension (benefit) cost | $493 | $954 | - The Company terminated one of its U.S. pension plans in fiscal 2025, settling remaining liabilities with annuity contracts[90](index=90&type=chunk) - The Company plans to contribute approximately **$4,118 thousand** to its pension plans in fiscal 2026[91](index=91&type=chunk) [11. Earnings Per Share](index=24&type=section&id=11.%20Earnings%20Per%20Share) Basic and diluted loss per share was **$(0.07)** for the three months ended June 30, 2025, compared to income per share of **$0.30** in the prior year, with antidilutive awards excluded from diluted EPS EPS Metric (in thousands, except per share data) | EPS Metric (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income (loss) | $(1,898) | $8,629 | | Weighted-average common stock outstanding – basic EPS | 28,658 | 28,834 | | Basic income (loss) per share | $(0.07) | $0.30 | | Diluted income (loss) per share | $(0.07) | $0.30 | - Stock options, restricted stock units, and performance shares for **2,438,000 common shares** were antidilutive and excluded from diluted EPS calculation for Q1 FY26[93](index=93&type=chunk) - The Board of Directors declared a dividend of **$0.07 per common share**, payable on August 18, 2025[96](index=96&type=chunk) [12. Loss Contingencies](index=25&type=section&id=12.%20Loss%20Contingencies) The company faces various legal actions, including asbestos-related and product liability claims, with an estimated net asbestos liability of **$5.9 million** and product liability claims of **$4.9 million**, while vigorously defending against an Italian tax matter - Accrued general and product liability costs are **$18,804 thousand** (gross of **$6,887 thousand** estimated insurance recoveries) as of June 30, 2025[98](index=98&type=chunk)[100](index=100&type=chunk) - The estimated net asbestos-related aggregate liability is approximately **$5,889 thousand**, with **$2,600 thousand** expected to be incurred in the next 12 months[102](index=102&type=chunk) - The company is appealing a **$3,000 thousand** jury verdict for a product liability claim, believing payment is not probable[107](index=107&type=chunk) [13. Income Taxes](index=29&type=section&id=13.%20Income%20Taxes) The company recorded an income tax expense of **$260 thousand** for the quarter on a pre-tax loss, resulting in an effective tax rate of **(16%)**, with a fiscal 2026 estimate of **25%** and expected impacts from new U.S. tax legislation Income Tax Metric (in thousands) | Income Tax Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Income tax expense (benefit) | $260 | $3,421 | | Income tax as a percentage of pre-tax income (loss) | (16)% | 28% | - The effective tax rate for fiscal 2026 is estimated to be approximately **25%**[127](index=127&type=chunk) - New U.S. tax legislation (OBBBA) is expected to impact interest limitation and R&D capitalization in fiscal 2026, but not materially affect the tax rate[128](index=128&type=chunk) [14. Changes in Accumulated Other Comprehensive Loss](index=30&type=section&id=14.%20Changes%20in%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated Other Comprehensive Loss (AOCL) shifted from **$(21.1) million** to **$8.5 million**, primarily driven by a significant positive foreign currency translation adjustment of **$29.8 million**, partially offset by changes in derivatives AOCL Component (in thousands) | AOCL Component (in thousands) | Beginning Balance (March 31, 2025) | Net Current Period Other Comprehensive Income (Loss) | Ending Balance (June 30, 2025) | | :--- | :--- | :--- | | Retirement Obligations | $14,760 | $725 | $15,485 | | Foreign Currency | $(33,942) | $29,786 | $(4,156) | | Change in Derivatives Qualifying as Hedges | $(1,919) | $(914) | $(2,833) | | Total AOCL | $(21,101) | $29,597 | $8,496 | - A significant positive foreign currency translation adjustment of **$29,786 thousand** was the primary driver of the change in AOCL[130](index=130&type=chunk) [15. Leases](index=30&type=section&id=15.%20Leases) The company recognizes operating and finance leases with terms greater than one year on its balance sheet, with operating lease liabilities totaling **$68.9 million** and finance lease liabilities totaling **$12.1 million** as of June 30, 2025 - Leases with terms greater than one year are recognized on the Consolidated Balance Sheet[131](index=131&type=chunk) Lease Type (in thousands) | Lease Type (in thousands) | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total operating liabilities | $68,869 | $69,696 | | Total finance liabilities | $12,092 | $12,267 | | Cash paid for operating lease liabilities (Q1 FY26) | $3,657 | $3,023 | | Cash paid for finance lease liabilities (Q1 FY26) | $311 | $302 | [16. Business Segment Information](index=31&type=section&id=16.%20Business%20Segment%20Information) The company operates as a single operating and reportable segment, with its CEO evaluating performance based on Income from operations to allocate resources - The Company has one operating and reportable segment[136](index=136&type=chunk) - The CEO evaluates segment performance based on Income from operations, reviewing budget-to-actual variances and year-over-year performance[137](index=137&type=chunk) [17. Effects of New Accounting Pronouncements](index=32&type=section&id=17.%20Effects%20of%20New%20Accounting%20Pronouncements) The company is evaluating new FASB ASUs, including ASU 2024-03 and ASU 2023-09, which are expected to result in additional disclosures but not materially impact financial statements - ASU 2024-03 (Expense Disaggregation Disclosures) is effective for annual periods beginning after **December 15, 2026**[140](index=140&type=chunk) - ASU 2023-09 (Improvements to Income Tax Disclosures) is effective for annual periods beginning after **December 15, 2023** (Fiscal 2026 10K)[141](index=141&type=chunk) - Both new ASUs are expected to result in additional disclosures but not have a material impact on the financial statements[140](index=140&type=chunk)[141](index=141&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) This section provides management's perspective on the company's financial performance, condition, and future outlook, covering business strategy, operational results, liquidity, and market conditions [Executive Overview](index=33&type=section&id=Executive%20Overview) Columbus McKinnon is a global leader in intelligent motion solutions, focused on innovation and operational excellence, with **43% of net sales** from outside the U.S., and the pending Kito Acquisition is expected to enhance its market position - The Company is a leading worldwide designer, manufacturer, and marketer of intelligent motion solutions, emphasizing technological innovation and customer service[143](index=143&type=chunk)[144](index=144&type=chunk) - Approximately **43% of net sales** for the three months ended June 30, 2025, were derived from customers outside the U.S[145](index=145&type=chunk) - The pending Kito Acquisition is expected to significantly improve the Company's scale, geographic reach, and product portfolio, strengthening its position in lifting securement and consumables[151](index=151&type=chunk)[152](index=152&type=chunk) [Results of Operations (Three months ended June 30, 2025 and June 30, 2024)](index=35&type=section&id=Results%20of%20Operations) Net sales decreased by **1.6%** to **$235.9 million**, and gross profit declined by **13.3%** to **$77.2 million**, resulting in a **net loss of $1.9 million** due to lower sales volume, unfavorable mix, and increased expenses Metric (in thousands) | Metric (in thousands) | Q1 FY26 (June 30, 2025) | Q1 FY25 (June 30, 2024) | Change (YoY) | | :--- | :--- | :--- | :--- | | Net sales | $235,920 | $239,726 | (1.6%) | | Gross profit | $77,222 | $89,030 | (13.3%) | | Gross profit margin | 32.7% | 37.1% | (4.4 ppts) | | Income from operations | $5,492 | $21,147 | (74.0%) | | Net income (loss) | $(1,898) | $8,629 | (122.0%) | - Net sales were negatively impacted by **$9,375 thousand** from unfavorable sales volume, partially offset by **$2,443 thousand** from price increases and **$3,126 thousand** from favorable foreign currency translation[154](index=154&type=chunk) - Gross profit was reduced by **$5,437 thousand** due to lower sales volume and unfavorable mix, **$993 thousand** by business realignment costs, and **$5,709 thousand** by material inflation and other manufacturing cost changes[155](index=155&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased by **$25.0 million** to **$29.0 million**, with **$18.2 million** used in operating activities, primarily due to working capital changes, though the company expects sufficient liquidity for the next twelve months Cash Flow Metric (in thousands) | Cash Flow Metric (in thousands) | Q1 FY26 (June 30, 2025) | Q1 FY25 (June 30, 2024) | | :--- | :--- | :--- | | Cash, cash equivalents, and restricted cash at end of period | $28,972 | $68,623 | | Net change in cash and cash equivalents | $(24,961) | $(45,753) | | Net cash used for operating activities | $(18,153) | $(10,758) | | Net cash used for financing activities | $(977) | $(30,583) | - Working capital changes, including a **$9,661 thousand** increase in inventories and an **$8,726 thousand** increase in trade accounts receivable, contributed to cash used in operations[163](index=163&type=chunk) - The company expects its cash on hand, cash flows, and borrowing capacity to be sufficient for ongoing operations and debt obligations for at least the next twelve months[166](index=166&type=chunk) [Capital Expenditures](index=36&type=section&id=Capital%20Expenditures) Consolidated capital expenditures for the quarter were **$3.2 million**, a decrease from the prior year, with fiscal 2026 spending projected to range from **$20 million to $25 million** for maintenance, new products, and productivity Capital Expenditures (in thousands) | Capital Expenditures (in thousands) | Q1 FY26 (June 30, 2025) | Q1 FY25 (June 30, 2024) | | :--- | :--- | :--- | | Consolidated capital expenditures | $3,202 | $4,629 | - Expected capital expenditure spending for fiscal 2026 is projected to be between **$20,000 thousand** and **$25,000 thousand**[167](index=167&type=chunk) [Inflation and Other Market Conditions](index=37&type=section&id=Inflation%20and%20Other%20Market%20Conditions) The company's costs are affected by inflation, historically mitigated by price increases, and current higher raw material costs due to tariffs are expected to be recovered through pricing actions - The Company's costs are affected by inflation in the U.S. and non-U.S. economies[168](index=168&type=chunk) - Historically, the Company has been able to pass on rising costs through price increases, mitigating the material effect of general inflation[168](index=168&type=chunk) - Currently experiencing higher raw material costs due to tariffs, which are expected to be recovered with pricing actions[168](index=168&type=chunk) [Goodwill Impairment Testing](index=37&type=section&id=Goodwill%20Impairment%20Testing) Goodwill is tested for impairment annually at the reporting unit level, and as of June 30, 2025, no impairment indicators were identified for any of the three reporting units - Goodwill is tested for impairment at least annually at the reporting unit level[169](index=169&type=chunk)[170](index=170&type=chunk) - The Company has three reporting units: Linear Motion Products, Rest of Products, and Precision Conveyance[170](index=170&type=chunk) - As of June 30, 2025, there are no significant impairment indicators, and the fair value of reporting units is not believed to be less than their carrying value[171](index=171&type=chunk) [Seasonality and Quarterly Results](index=37&type=section&id=Seasonality%20and%20Quarterly%20Results) Quarterly results can be materially affected by factors such as large customer orders, vacation concentrations, legal settlements, and foreign currency translation, making them not necessarily indicative of future performance - Quarterly results can be materially affected by factors including large customer orders, vacation/holiday concentrations, legal settlements, and foreign currency translation[173](index=173&type=chunk) - Operating results for any particular fiscal quarter are not necessarily indicative of results for any subsequent fiscal quarter or the full fiscal year[173](index=173&type=chunk) [Effects of New Accounting Pronouncements](index=37&type=section&id=Effects%20of%20New%20Accounting%20Pronouncements) Information regarding the effects of new accounting pronouncements is detailed in Note 16 to the accompanying consolidated financial statements - Details on new accounting pronouncements are provided in Note 16 of the financial statements[174](index=174&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) No material changes in market risks have occurred since the disclosures in the company's 2025 Form 10-K - No material changes in market risks have occurred since the disclosures in the 2025 Form 10-K[176](index=176&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures.) As of June 30, 2025, the company's management concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - The Company's disclosure controls and procedures were effective as of **June 30, 2025**[178](index=178&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent quarter[179](index=179&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings.) No material developments in legal proceedings have occurred since those disclosed in the 2025 Form 10-K and its accompanying financial statement notes - No material developments in legal proceedings have occurred since the 2025 Form 10-K[181](index=181&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to the risk factors have occurred since those previously disclosed in the 2025 Form 10-K - No material changes to the risk factors have occurred since the 2025 Form 10-K[182](index=182&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company did not purchase any shares of its common stock during the three months ended June 30, 2025, with approximately **$9 million** remaining available under the share repurchase authorization Period | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 - 30, 2025 | — | $— | | May 1 - 31, 2025 | — | $— | | June 1 - 30, 2025 | — | $— | | Total | — | $— | - Approximately **$9,055 thousand** remains available for share repurchases under the existing authorization[183](index=183&type=chunk) [Item 3. Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) No defaults upon senior securities occurred during the reporting period - No defaults upon senior securities occurred[184](index=184&type=chunk) [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - Mine Safety Disclosures are not applicable to the Company[184](index=184&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information.) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[184](index=184&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the Form 10-Q, including certifications from principal executive and financial officers, and Inline XBRL financial statements and taxonomy documents - Exhibits include certifications from the principal executive and financial officers (31.1, 31.2, 32)[185](index=185&type=chunk) - The financial statements are provided in Inline XBRL format (101.* and 104)[185](index=185&type=chunk)