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 reported a decrease in net sales for both the fourth quarter and the full fiscal year 2025, with a net loss attributed to various non-cash costs and operational challenges [1][5][10]. Fiscal Year 2025 Highlights - Net sales for fiscal year 2025 were $963.0 million, down 5% from $1,013.5 million in fiscal year 2024 [5][16]. - The company experienced a net loss of $5.1 million for the year, which included significant non-cash pension settlement costs and factory consolidation costs [5][16]. - Adjusted EBITDA for the year was $150.5 million, with an adjusted EBITDA margin of 15.6% [5]. Fourth Quarter 2025 Highlights - Fourth quarter net sales were $246.9 million, a decrease of 7% compared to $265.5 million in the same quarter of the previous year [3][17]. - U.S. sales fell by 10.1%, while non-U.S. sales decreased by 2.7% [3][4]. - Gross profit for the fourth quarter was $79.8 million, down 15.4% from $94.3 million in the prior year, resulting in a gross margin of 32.3% [4][17]. Orders and Backlog - The company reported record orders of $1.0 billion, up 3%, driven by growth in project-related business and precision conveyance [5][26]. - The backlog increased to $322.5 million, reflecting a 15% rise compared to the previous year [5][26]. Kito Crosby Acquisition - Columbus McKinnon is progressing towards the acquisition of Kito Crosby, which is expected to enhance its product offerings and geographic reach [7][8]. - The acquisition is subject to regulatory clearance and is anticipated to close later in the calendar year [8]. Fiscal Year 2026 Guidance - The company expects net sales and adjusted EPS to be flat to slightly up for fiscal 2026, not accounting for the Kito Crosby acquisition [10][11]. - The guidance reflects ongoing challenges from tariff policies impacting supply chain costs [10][11]. Capital Allocation - Columbus McKinnon plans to prioritize debt repayment to strengthen its balance sheet while maintaining consistent dividend payments [9].