Columbus McKinnon Corporation — Q2 FY27 Earnings Summary

Financial Performance:

• Net sales for Q2 FY27 reached $539.3 million, a 107% year-over-year increase driven by the Kito Crosby Acquisition, with legacy CMCO net sales growth of 5.3%.
• Orders totaled $562.6 million, representing a 122% year-over-year increase, resulting in a book-to-bill ratio of 1.0x.
• GAAP net loss attributable to the company was $25.5 million ($0.76 per diluted share), which included $12.5 million in acquisition and integration-related expenses.
• Adjusted Net Income was $31.1 million, a 74% increase year-over-year; Adjusted EPS was $0.61, a $0.01 decline largely due to higher share count and increased interest expense.
• Adjusted EBITDA was $111.2 million with an Adjusted EBITDA Margin of 20.6%, an increase of 520 basis points year-over-year.
• Gross profit was $187.9 million with a gross margin of 34.8% (up 30 basis points); Adjusted Gross Profit was $196.8 million with an Adjusted Gross Margin of 36.5%.
• Cash provided by operating activities year-to-date was $21.1 million, with capital expenditures of $16.5 million resulting in Free Cash Flow of $4.6 million.
• The Company ended the quarter with a Credit Agreement Net Leverage Ratio of 4.9x and total liquidity of $532.0 million ($110.9 million cash and $421.1 million availability on the revolving credit facility).
• Year-to-date cash costs related to the Kito Crosby Acquisition were $24.3 million.

Guidance and Future Outlook:

• The Company increased its full-year FY27 guidance for Net Sales to $2.13 billion–$2.17 billion (prior: $2.09 billion–$2.15 billion).
• FY27 Adjusted EBITDA guidance was raised to $425 million–$440 million (prior: $405 million–$420 million).
• FY27 Adjusted EPS guidance was raised to $2.00–$2.15 (prior: $1.90–$2.10).
• Updated FY27 expense assumptions include Interest expense of $185 million–$190 million, Amortization expense of $130 million–$135 million, and Depreciation expense of $80 million–$85 million.
• FY27 Capital expenditures guidance was lowered to $45 million–$55 million (prior: $50 million–$60 million).
• Management expects to sustain momentum through the second half of fiscal 2027 based on strong first-half orders and financial performance.

Business Segments and Product Lines:

• The Kito Crosby Acquisition, which closed on February 3, 2026, is a primary driver of growth, contributing $300.2 million in Q2 FY27 net sales.
• As part of the acquisition, the Company divested its U.S. power chain hoist (excluding Little Mule products) and chain manufacturing operations on March 4, 2026.
• Sequential revenue growth was supported by sustained strength in the Americas and stronger-than-anticipated demand in Asia and EMEA.
• Legacy CMCO benefited from positive pricing and volume growth.
• The combined portfolio has generated increased demand from both project and short-cycle business.

Market and Competitive Landscape:

• The book-to-bill ratio of 1.0x reflects strong conversion of orders to revenue.
• The Company operates across five key platforms: lifting hardware consumables, hoists and cranes, precision conveyance, automation, and linear motion.
• The integration of Kito Crosby remains on track with synergy realization ahead of plan.

Risks and Challenges:

• The Company recorded a $200 million goodwill impairment for the Precision Conveyance reporting unit due to a sustained reduction in stock price and market capitalization.
• Significant non-cash expenses related to acquisition integration, amortization of intangibles, and inventory step-up impacts GAAP earnings.
• Increased interest expense and higher share count have negatively impacted Adjusted EPS.
• Forward-looking statements involve risks regarding the ability to successfully integrate Kito Crosby, achieve targeted net cost synergies, and leverage reduction targets.

Management Commentary and Tone:

• CEO David J. Wilson stated the team delivered a second-quarter performance that exceeded expectations, citing strong customer response to the combined portfolio.
• Wilson expressed confidence in growth opportunities created by the merger and noted that teams are working effectively as one.
• CFO John Linker indicated the increased full-year outlook reflects confidence in executing strategic priorities and sustaining momentum.
• The tone is confident regarding the integration progress and future value creation objectives.

Other Key Points:

• The Company remains committed to paying down debt to de-lever its balance sheet in the near term while maintaining consistent dividend payments.
• Dividends declared per common share were $0.07 for the quarter.
• The Company has 800,000 Series A Cumulative Convertible Participating Preferred Shares outstanding.
• The Company elected to accrue, accumulate, and compound dividends payable on Preferred Shares rather than paying them in cash during fiscal 2027.
• A conference call and webcast were held on November 3, 2026, to discuss results.