Core Insights - The Heartland Small Cap Value Strategy achieved a return of 2.98% in Q4 2025, underperforming the Russell 2000® Value Index, which returned 3.26% [2] Performance Summary - The performance of the Heartland Small Cap Value Strategy in Q4 2025 was a gain of 2.98% [2] - The Russell 2000® Value Index outperformed the strategy with a return of 3.26% during the same period [2]

Core Viewpoint - Columbus McKinnon Corporation (CMCO) shares are perceived to be overvalued following a significant $2.7 billion acquisition of Kito Crosby planned for early 2025 [1]. Group 1: Company Overview - Columbus McKinnon Corporation is involved in a large and debt-heavy acquisition, indicating a strategic move to expand its market presence [1]. Group 2: Market Context - The acquisition of Kito Crosby is expected to impact CMCO's financial structure significantly, raising concerns about the sustainability of its stock performance post-deal [1].

Core Viewpoint - Columbus McKinnon (CMCO) has made a significant strategic move by acquiring Kito Crosby to expand its market presence [1] Group 1: Acquisition Details - The acquisition of Kito Crosby represents a "go big or go home" strategy aimed at enhancing Columbus McKinnon's footprint in the industry [1]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Financial Data and Key Metrics Changes - Columbus McKinnon reported net sales of $258.7 million, an increase of 10.5% year-over-year, driven by higher volume, pricing, and favorable currency translation [10] - Adjusted EBITDA was $40 million, with an adjusted EBITDA margin of 15.4%, flat compared to the prior quarter [6][12] - Adjusted EPS improved 11% from the prior year to $0.62, reflecting higher net income from increased sales volume and pricing [6][13] Business Line Data and Key Metrics Changes - Short cycle sales increased by 13%, with strong performance in the U.S. benefiting from both pricing and volume growth [10] - Project-related sales increased by 8% as backlog was converted to revenue globally [10] - Gross profit rose to $89.2 million, an increase of 8.6% year-over-year, despite negative tariff-related impacts [11] Market Data and Key Metrics Changes - Orders in the U.S. grew by 15%, driven by strength in lifting, automation, and precision conveyance [8] - EMEA orders grew by 3%, although this was largely influenced by favorable foreign exchange rates [8][24] - The backlog increased by 15% year-over-year to $342 million, reflecting growth across all platforms [9] Company Strategy and Development Direction - The company closed the Kito Crosby acquisition, which is expected to be transformative and enhance the value proposition for customers [4][65] - Columbus McKinnon aims to achieve $70 million in net run rate cost synergies from the acquisition, with 20% expected in year one and full realization by year three [21][66] - The primary capital allocation priority will be debt repayment, with expectations to reduce the net leverage ratio to below 4x by the end of fiscal 2028 [15][67] Management's Comments on Operating Environment and Future Outlook - Management noted stabilization in U.S. short cycle order activity and a healthy global funnel of opportunities [5][8] - The company expects U.S. demand to remain strong due to lower interest rates and favorable tax legislation, while EMEA may experience continued challenges [8][24] - Management expressed confidence in achieving tariff cost neutrality by the end of the fiscal year and margin neutrality in fiscal 2027 [7][41] Other Important Information - The company withdrew its prior standalone guidance for fiscal year 2026 due to the recent acquisition and pending divestiture [16] - Significant transaction-related expenses and early integration costs are anticipated to impact GAAP earnings per share in the fourth quarter [16] Q&A Session Summary Question: Can you discuss the seasonality in the Kito Crosby business compared to the core business? - Management indicated that both Columbus McKinnon and Kito Crosby typically see their strongest quarters in the fourth quarter, aligning with seasonal trends [20] Question: What is the expected timing for realizing the $70 million in cost-related synergies? - Management expects to realize approximately 20% of the synergies in year one, increasing to 60% in year two, and 100% in year three [21] Question: How are both businesses trending relative to initial assumptions made during the acquisition? - Management provided pro forma guidance indicating revenue expectations between $2 billion and $2.1 billion, with EBITDA in the $440 million-$460 million range, factoring in synergies [31] Question: Were there any material pull-ins or pushouts in the quarter? - Management stated that there were no material pull-ins or pushouts affecting the quarter [57] Question: How much of the strength in orders is from the U.S. chain hoist business, which is set to be divested? - Management noted that the chain hoist orders did not materially influence the overall order numbers for the quarter [58] Question: Are underlying trends stronger compared to previous guidance? - Management affirmed robust trends in the U.S. market, while noting continued softness in Europe, but overall execution remains strong with a significant backlog [60]

Financial Data and Key Metrics Changes - Columbus McKinnon reported net sales of $258.7 million, an increase of 10.5% year-over-year, driven by higher volume, pricing, and favorable currency translation [10] - Adjusted EBITDA was $40 million, with an adjusted EBITDA margin of 15.4%, flat compared to the prior quarter [6][12] - Adjusted EPS improved 11% from the prior year to $0.62, reflecting higher net income from increased sales volume and pricing [6][13] Business Line Data and Key Metrics Changes - Orders increased by 11% to $247 million, with the U.S. growing 15% and EMEA growing 3% [7][8] - Short cycle sales increased by 13%, while project-related sales rose by 8% as backlog was converted to revenue [10] - Gross profit increased by $7.1 million, or 8.6%, year-over-year, with a GAAP gross margin of 34.5% [11] Market Data and Key Metrics Changes - U.S. demand remains healthy, driven by lower interest rates and favorable CapEx deduction rules [8] - EMEA continues to experience a weaker economic landscape, leading to slower order conversion [8][9] - The backlog is strong, up 15% year-over-year to $342 million, indicating healthy future demand [9] Company Strategy and Development Direction - The company closed the Kito Crosby acquisition, which is expected to enhance operational capabilities and customer value [4] - Columbus McKinnon plans to focus on debt repayment as a primary capital allocation priority following the acquisition [15] - The company aims to achieve $70 million in net run rate cost synergies from the acquisition, with a structured realization plan over three years [21][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving tariff cost neutrality by the end of the fiscal year and margin neutrality in fiscal 2027 [7][49] - The company anticipates continued robust demand in the U.S. while acknowledging challenges in the European market [36][62] - Management highlighted a strong backlog and healthy demand funnel, indicating optimism for future performance [9][36] Other Important Information - The company withdrew its prior standalone guidance for fiscal year 2026 due to the acquisition and divestiture timing [16] - Significant transaction-related expenses and early integration costs are expected to impact GAAP earnings per share in the fourth quarter [16] Q&A Session Summary Question: Can you discuss the seasonality in the Kito Crosby business compared to the core business? - Management noted that both businesses typically see their strongest quarters in the fourth quarter, aligning with seasonal trends [20] Question: What is the expected timing for realizing the $70 million in cost-related synergies? - Management expects to realize approximately 20% of the synergies in year one, 60% in year two, and 100% in year three [21] Question: How are both businesses trending relative to initial assumptions made during the acquisition announcement? - Management indicated that the combined businesses are performing well, with Kito Crosby's revenue and EBITDA trending positively compared to initial estimates [37] Question: What is the confidence level in achieving tariff margin neutrality by fiscal 2027? - Management expressed confidence in achieving cost neutrality by the end of the fiscal year and margin neutrality in the following year [49] Question: Did the company experience any material pull-ins or pushouts in the quarter? - Management confirmed that there were no material pull-ins or pushouts affecting the quarter's performance [60] Question: How much of the strength in orders is attributed to the U.S. chain hoist business, which is set to be divested? - Management stated that the chain hoist business did not materially influence the order numbers for the quarter [61] Question: Are the underlying trends stronger compared to previous guidance? - Management acknowledged robust trends in the U.S. market but noted ongoing softness in Europe, indicating a mixed outlook [62]

Financial Data and Key Metrics Changes - Columbus McKinnon reported net sales of $258.7 million, an increase of 10.5% year-over-year, driven by higher volume, pricing, and favorable currency translation [9] - Adjusted EBITDA was $40 million, with an adjusted EBITDA margin of 15.4%, flat compared to the prior quarter [5][11] - Adjusted EPS improved 11% from the prior year to $0.62, reflecting higher net income from increased sales volume and pricing [5][12] - Free cash flow for the quarter was $16.5 million, supported by higher earnings and favorable working capital [12] Business Line Data and Key Metrics Changes - Short cycle sales increased by 13%, with strong performance in the U.S. benefiting from both pricing and volume growth [9] - Project-related sales increased by 8% as backlog was converted to revenue globally [9] - Gross profit increased by $7.1 million, or 8.6%, year-over-year, with a GAAP gross margin of 34.5% [10] Market Data and Key Metrics Changes - Orders in the U.S. grew by 15%, driven by strength in lifting, automation, and precision conveyance [7] - EMEA orders grew by 3%, although this was largely influenced by favorable foreign exchange rates [7][24] - The backlog increased by 15% year-over-year to $342 million, reflecting growth across all platforms [8] Company Strategy and Development Direction - The company closed the Kito Crosby acquisition, which is expected to enhance its value proposition and operational excellence [4] - Columbus McKinnon plans to focus on vertical end markets with tailwinds, such as metal processing, government and defense, and heavy equipment [8] - The company aims to achieve $70 million in net run rate cost synergies from the Kito Crosby acquisition, with 20% expected in year one [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving tariff cost neutrality by the end of the fiscal year and margin neutrality in fiscal 2027 [6][46] - The U.S. market is expected to remain healthy, supported by lower interest rates and favorable tax legislation [7] - Management acknowledged challenges in the EMEA region, anticipating continued slower decision-making and demand [24] Other Important Information - The company withdrew its prior standalone guidance for fiscal year 2026 due to the recent acquisition and pending divestiture [16] - Significant transaction-related expenses and early integration costs are expected to impact GAAP earnings per share in the fourth quarter [16] Q&A Session Summary Question: Can you discuss the seasonality in the Kito Crosby business compared to the core business? - Columbus McKinnon expects Kito Crosby to have a similar seasonal pattern, with both businesses seeing stronger performance in their respective fourth quarters [20] Question: Can you provide a deeper dive into major end markets and geographic performance? - Management noted strength in general industrial space, automation, e-commerce, construction, aerospace, and government, while demand in Europe remains slower than anticipated [23][24] Question: How did the strength in orders relate to the U.S. chain hoist business, which is being divested? - There was no material impact from the chain hoist orders on the overall order numbers, indicating typical performance relative to prior periods [56]

Financial Performance - Net sales for the three months ended December 31, 2025, were $258.655 million, an increase of 10.5% compared to $234.138 million for the same period in 2024[15] - Gross profit for the nine months ended December 31, 2025, was $256.539 million, up from $245.870 million in 2024, reflecting a growth of 4.4%[15] - Net income for the three months ended December 31, 2025, was $5.998 million, compared to $3.960 million in 2024, representing a year-over-year increase of 51.5%[16] - Basic income per share for the three months ended December 31, 2025, was $0.21, up from $0.14 in the same period last year, marking a 50% increase[15] - Comprehensive income for the nine months ended December 31, 2025, was $37.799 million, compared to a loss of $1.660 million in 2024, showing a significant turnaround[16] - Net income for the nine months ended December 31, 2025, was $8,695,000, compared to a net loss of $2,454,000 for the same period in 2024, representing a significant turnaround[22] Assets and Liabilities - Total assets as of December 31, 2025, were $1.762 billion, compared to $1.739 billion as of March 31, 2025, indicating a growth of 1.3%[13] - Total liabilities decreased to $839.669 million as of December 31, 2025, from $856.693 million as of March 31, 2025, a reduction of 2%[13] - The total shareholders' equity as of December 31, 2025, is $922,851,000, reflecting an increase from $882,095,000 as of March 31, 2025[18] - Cash and cash equivalents decreased to $35.484 million as of December 31, 2025, from $53.683 million as of March 31, 2025, a decline of 33.9%[13] Dividends and Shareholder Returns - The company declared dividends of $0.07 per common share for both the three months ended December 31, 2025, and 2024, maintaining consistency[15] - Dividends declared for the quarter ending September 30, 2025, amount to $2,011,000, slightly down from $2,015,000 in the previous quarter[18] Research and Development - Research and development expenses for the nine months ended December 31, 2025, were $14.044 million, down from $17.593 million in 2024, a decrease of 20.5%[15] Cash Flow and Investments - Cash provided by operating activities increased to $20,595,000 for the nine months ended December 31, 2025, up from $10,000,000 in the prior year[22] - The company reported a net cash used in investing activities of $(6,830,000) for the nine months ended December 31, 2025, compared to $(14,222,000) in the prior year[22] - The company completed the acquisition of Kito Crosby Limited for $2,700,000,000, which is expected to enhance its scale and geographic reach in the lifting solutions market[27] Customer and Revenue Insights - Total revenue from U.S. customers accounted for approximately 57% of total net sales during the three and nine months ended December 31, 2025[26] - Revenue recognized from customer advances for the nine months ended December 31, 2025, included $51,004,000, compared to $14,989,000 for the same period in 2024, indicating a significant increase[45] - The company’s total revenue for the nine months ended December 31, 2025, was $755,622,000, compared to $716,138,000 in 2024, indicating an overall increase of approximately 5.5%[47] Inventory and Performance Obligations - As of December 31, 2025, net inventories totaled $222,377,000, an increase from $198,598,000 as of March 31, 2025, reflecting a growth of approximately 11.9%[62] - The aggregate amount of unsatisfied performance obligations as of December 31, 2025, was approximately $37,538,000, with an expectation to recognize about 30% of this amount in the next twelve months[46] Tax and Compliance - The Company recorded an income tax expense of $1,781,000 for the three months ended December 31, 2025, compared to $1,929,000 for the same period in 2024, reflecting a decrease in tax expense[140] - The effective tax rate for the nine months ended December 31, 2025, is estimated to be approximately 15%, influenced by a favorable 16% impact from the New German Tax Law[142] Legal and Environmental Matters - The Company is engaged in litigation with Monsanto regarding indemnification claims, with ongoing legal defenses in place[131] - The District Court ruled that Travelers is obligated to defend the Company in its litigation against Monsanto, affirming coverage under existing insurance policies[133] Other Comprehensive Income - The ending balance of Accumulated Other Comprehensive Income (Loss) as of December 31, 2025, is $8,003,000, reflecting a change from a beginning balance of $(21,101,000) for the nine months ended[145] - For the three months ended December 31, 2025, the net current period other comprehensive income (loss) is $1,136,000, compared to a beginning balance of $6,867,000[145] Debt and Financing - The outstanding principal balance of Term Loan B was $426,316,000 as of December 31, 2025, with $11,244,000 in principal payments made during the nine months ended December 31, 2025[87] - The company plans to pay down approximately $50,000,000 in debt payments over the next 12 months, including principal payments on Term Loan B and payments on its AR Securitization Facility[87] Shareholder Equity and Stock Options - The company increased the number of authorized shares from 51,000,000 to 101,000,000, allowing for future equity issuances[110] - Stock options for 1,566,000 common shares were excluded from diluted EPS calculations for the three months ended December 31, 2025, due to being antidilutive[102]

President & Chief Executive Officer David Wilson Gregory Rustowicz Kristine Moser February 9, 2026 Q3 Fiscal 2026 Financial Results Conference Call Executive Vice President Finance & Chief Financial Officer Vice President, Investor Relations & Treasurer Safe Harbor Statement This presentation and the accompanying oral discussion contains "forward-looking statements" within the meaning of the Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as ame ...

CHARLOTTE, N.C., Feb. 9, 2026 /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company"), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2026 third quarter, which ended December 31, 2025. Third Quarter 2026 Highlights (compared with prior-year period, except where otherwise noted) "Our team delivered double-digit sales, order and EPS growth in the quarter, ahea ...