Columbus McKinnon Reports Q1 FY26 Results and Reaffirms Guidance

, /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 first quarter, which ended June 30, 2025. First Quarter 2026 Highlights (compared with prior-year period, except where otherwise noted) Orders of $258.6 million increased 2% driven by an 8% increase in project-related orders Backlog of $360.1 million increased $67.3 million or 23% and a Book-to-Bill Ratio of 1.1x Net sales of $235.9 million with 2.3% operating margin or 7.8% on an adjusted basis1 includes a tariff impact of $4.2 million to operating profit Net loss of $1.9 million with a net loss margin of (0.8%) includes $8.1 million of Kito Crosby acquisition-related expenses, $4.2 million tariff impact and $2.5 million of business realignment costs on a pre-tax basis Adjusted EBITDA1 of $30.8 million with an Adjusted EBITDA Margin1 of 13.0% GAAP EPS of ($0.07) and Adjusted EPS1,2 of $0.50 includes an $0.11 per share unfavorable tariff impact3 "The first quarter largely played out as expected as we delivered sustained order growth in an environment where global tariff policies pressured near-term results," said David J. Wilson, President and Chief Executive Officer. "While the geographic distribution of tariffs has evolved, we continue to anticipate approximately $10 million of net tariff impact in the first half of fiscal 2026, consistent with our prior guidance." "The demand environment remains healthy and our optimism for the business remains unchanged. This was underscored by a book-to-bill ratio of 1.1x in the first quarter and a 23% increase in our backlog year-over-year," continued Wilson. "We have a history of successfully navigating uncertain environments and we remain focused on controlling what we can control, while emphasizing strong operational execution, cost management and advancing our strategic plan." Wilson concluded "We continue to progress towards the closing of the Kito Crosby acquisition and believe with the benefits of scale, improved solutions, the realization of synergies and strong free cash flow, we will be positioned to grow profitably and deliver long-term value for our shareholders." First Quarter Fiscal 2026 Sales ($ in millions) Q1 FY26 Q1 FY25 Change % Change Net sales $ 235.9 $ 239.7 $ (3.8) (1.6) % U.S. sales $ 135.3 $ 136.3 $ (1.0) (0.7) % % of total 57 % 57 % Non-U.S. sales $ 100.6 $ 103.4 $ (2.8) (2.7) % % of total 43 % 43 % For the quarter, net sales decreased $3.8 million, or 1.6%. In the U.S., sales were down $1.0 million, or 0.7%, driven by lower volume. Sales outside the U.S. decreased $2.8 million, or 2.7%. Price improvement of $2.0 million and favorable foreign currency translation of $3.1 million partially offset $7.9 million of lower volume. First Quarter Fiscal 2026 Operating Results ($ in millions, except per share figures) Q1 FY26 Q1 FY25 Change % Change Gross profit $ 77.2 $ 89.0 $ (11.8) (13.3) % Gross margin 32.7 % 37.1 % (440) bps Adjusted Gross Profit1 $ 80.9 $ 91.0 $ (10.1) (11.1) % Adjusted Gross Margin1 34.3 % 38.0 % (370) bps Income from operations $ 5.5 $ 21.1 $ (15.7) (74.0) % Operating margin 2.3 % 8.8 % (650) bps Adjusted Operating Income1 $ 18.5 $ 25.7 $ (7.2) (27.9) % Adjusted Operating Margin1 7.8 % 10.7 % (290) bps Net income (loss) $ (1.9) $ 8.6 $ (10.5) NM Net income (loss) margin (0.8) % 3.6 % (440) bps GAAP EPS $ (0.07) $ 0.30 $ (0.37) NM Adjusted EPS1,2 $ 0.50 $ 0.62 $ (0.12) (19.4) % Adjusted EBITDA1 $ 30.8 $ 37.5 $ (6.7) (17.9) % Adjusted EBITDA Margin1 13.0 % 15.6 % (260) bps Capital Allocation Priorities The Company plans to continue to allocate capital to pay down debt to deleverage its balance sheet in the near term while continuing its track record of a consistent dividend payment. Over time, the Company believes it will be positioned to utilize its expected significant free cash flow generation to advance its Intelligent Motion strategy across the fragmented marketplace. Fiscal Year 2026 Guidance The Company is reaffirming guidance for fiscal 2026. Please note that the Company's outlook does not contemplate the impact of the pending Kito Crosby acquisition. Additionally, the guidance only reflects what is known as of the date of this release about the tariff policy environment, which has remained volatile to date and may impact supply chain costs and product availability. This forecast assumes tariffs will be a headwind to Adjusted EPS in the first half of fiscal 2026 due to the timing of supply chain adjustments, pricing increases and surcharge implementation lagging tariff costs and tariff cost neutrality expected by the second half of fiscal 2026. Metric FY26 Net sales Flat to slightly up Adjusted EPS4 Flat to slightly up Fiscal 2026 guidance assumes approximately $35 million of interest expense, $30 million of amortization, an effective tax rate of 25% and 29.0 million diluted average shares outstanding. Teleconference and Webcast Columbus McKinnon will host a conference call today at 10:00 AM Eastern Time to discuss the Company's financial results and strategy. The conference call, earnings release and earnings presentation will be accessible through live webcast on the Company's investor relations website at investors.cmco.com. A replay of the webcast will also be archived on the Company's investor relations website through August 6, 2025. ______________________ 1 Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS are non-GAAP financial measures. See accompanying discussion and reconciliation tables provided in this release for reconciliations of these non-GAAP financial measures to the closest corresponding GAAP financial measures. 2 Adjusted EPS excludes, among other adjustments, amortization of intangible assets. The Company believes this better represents its inherent earnings power and cash generation capability. 3 Tariff impact is being presented in a tax effected manner using a 25% normalized tax rate. 4 The Company has not reconciled the Adjusted EPS guidance to the most comparable GAAP financial measure outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide guidance for the comparable GAAP financial measure. Forward-looking guidance regarding Adjusted EPS is made in a manner consistent with the relevant definitions and assumptions noted herein. About Columbus McKinnon Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning, and securing materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations, and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how. Comprehensive information on Columbus McKinnon is available at www.cmco.com. Safe Harbor Statement This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "illustrative," "intend," "likely," "may," "opportunity," "plan," "possible," "potential," "predict," "project," "shall," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this document, including, but are not limited to, statements relating to: (i) our strategy, outlook and growth prospects, including our fiscal year 2026 guidance as well as the associated assumed inputs for our fiscal 2026 guidance regarding interest expense, amortization, effective tax rate and diluted shares outstanding; (ii) our operational and financial targets and capital allocation priorities; (iii) general economic trends and trends in our industry and markets; (iv) expected benefits of the Kito Crosby acquisition; (v) plans for the repayment of indebtedness; and (vi) the competitive environment in which we operate, are forward looking statements. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made. Columbus McKinnon undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority. Contacts: Gregory P. Rustowicz Kristine Moser EVP Finance and CFO VP IR and Treasurer Columbus McKinnon Corporation Columbus McKinnon Corporation 716-689-5442 704-322-2488 [email protected] [email protected] Financial tables follow. COLUMBUS McKINNON CORPORATION Condensed Consolidated Income Statements - UNAUDITED (In thousands, except per share and percentage data) Three Months Ended June 30,2025 June 30,2024 Change Net sales $ 235,920 $ 239,726 (1.6) % Cost of products sold 158,698 150,696 5.3 % Gross profit 77,222 89,030 (13.3) % Gross profit margin 32.7 % 37.1 % Selling expenses 28,531 27,770 2.7 % % of net sales 12.1 % 11.6 % General and administrative expenses 30,743 26,447 16.2 % % of net sales 13.0 % 11.0 % Research and development expenses 4,821 6,166 (21.8) % % of net sales 2.0 % 2.6 % Amortization of intangibles 7,635 7,500 1.8 % Income from operations 5,492 21,147 (74.0) % Operating margin 2.3 % 8.8 % Interest and debt expense 8,698 8,235 5.6 % Investment (income) loss (1,049) (209) 401.9 % Foreign currency exchange (gain) loss (342) 395 NM Other (income) expense, net (177) 676 NM Income (loss) before income tax expense (benefit) (1,638) 12,050 NM Income tax expense (benefit) 260 3,421 (92.4) % Net income (loss) $ (1,898) $ 8,629 NM Average basic shares outstanding 28,658 28,834 (0.6) % Basic income (loss) per share $ (0.07) $ 0.30 NM Average diluted shares outstanding 28,658 29,127 (1.6) % Diluted income (loss) per share $ (0.07) $ 0.30 NM COLUMBUS McKINNON CORPORATION Condensed Consolidated Balance Sheets (In thousands) June 30,2025 March 31,2025 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 28,722 $ 53,683 Trade accounts receivable 180,127 165,481 Inventories 216,203 198,598 Prepaid expenses and other 53,424 48,007 Total current assets 478,476 465,769 Property, plant, and equipment, net 106,735 106,164 Goodwill 732,413 710,807 Other intangibles, net 360,986 356,562 Marketable securities 10,325 10,112 Deferred taxes on income 4,373 2,904 Other assets 85,884 86,470 Total assets $ 1,779,192 $ 1,738,788 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 86,713 $ 93,273 Accrued liabilities 121,769 113,907 Current portion of long-term debt and finance lease obligations 50,757 50,739 Total current liabilities 259,239 257,919 Term loan, AR securitization facility and finance lease obligations 422,795 420,236 Other non current liabilities 186,275 178,538 Total liabilities $ 868,309 $ 856,693 Shareholders' equity: Common stock 287 286 Treasury stock (11,000) (11,000) Additional paid in capital 532,838 531,750 Retained earnings 380,262 382,160 Accumulated other comprehensive income (loss) 8,496 (21,101) Total shareholders' equity $ 910,883 $ 882,095 Total liabilities and shareholders' equity $ 1,779,192 $ 1,738,788 COLUMBUS McKINNON CORPORATION Condensed Consolidated Statements of Cash Flows - UNAUDITED (In thousands) Three Months Ended June 30,2025 June 30,2024 Operating activities: Net income (loss) $ (1,898) $ 8,629 Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization 12,266 11,840 Deferred income taxes and related valuation allowance (4,669) 942 Net loss (gain) on sale of real estate, investments and other (835) (124) Stock-based compensation 1,842 1,101 Amortization of deferred financing costs 622 622 Loss (gain) on hedging instruments 465 (97) Non-cash lease expense 2,412 2,584 Changes in operating assets and liabilities: Trade accounts receivable (8,726) 3,346 Inventories (9,661) (15,613) Prepaid expenses and other (3,015) (2,222) Other assets 758 (127) Trade accounts payable (8,203) (8,640) Accrued liabilities 2,902 (11,600) Non-current liabilities (2,413) (1,399) Net cash provided by (used for) operating activities (18,153) (10,758) Investing activities: Proceeds from sales of marketable securities 1,284 1,500 Purchases of marketable securities (1,299) (912) Capital expenditures (3,202) (4,629) Net cash provided by (used for) investing activities (3,217) (4,041) Financing activities: Proceeds from the issuance of common stock — 64 Borrowing / (Repayment) of debt 2,225 (20,158) Payment to former owners of montratec — (6,711) Fees paid for debt repricing — (169) Cash inflows from hedging activities 5,832 5,942 Cash outflows from hedging activities (6,275) (5,820) Payment of dividends (2,003) (2,016) Other (756) (1,715) Net cash provided by (used for) financing activities (977) (30,583) Effect of exchange rate changes on cash (2,614) (371) Net change in cash and cash equivalents (24,961) (45,753) Cash, cash equivalents, and restricted cash at beginning of year $ 53,933 $ 114,376 Cash, cash equivalents, and restricted cash at end of period $ 28,972 $ 68,623 COLUMBUS McKINNON CORPORATION Q1 FY 2026 Net Sales Bridge Quarter ($ in millions) $ Change % Change Fiscal 2025 Net Sales $ 239.7 Pricing 2.4 1.0 % Volume (9.4) (3.9) % Foreign currency translation 3.1 1.3 % Total change1 $ (3.8) (1.6) % Fiscal 2026 Net Sales $ 235.9 COLUMBUS McKINNON CORPORATION Q1 FY 2026 Gross Profit Bridge ($ in millions) Quarter Fiscal 2025 Gross Profit $ 89.0 Price, net of manufacturing costs changes (incl. inflation) (5.7) Monterrey, MX new factory start-up costs (0.3) Factory and warehouse consolidation costs (0.4) Sales volume and mix (5.4) Other (1.0) Foreign currency translation 1.0 Total change1 (11.8) Fiscal 2026 Gross Profit $ 77.2 U.S. Shipping Days by Quarter Q1 Q2 Q3 Q4 Total FY26 63 63 62 61 249 FY25 64 63 62 62 251 ______________________ 1 Components may not add due to rounding. COLUMBUS McKINNON CORPORATION Additional Data1 (Unaudited) Period Ended June 30, 2025 March 31, 2025 June 30, 2024 ($ in millions) Backlog $ 360.1 $ 322.5 $ 292.8 Long-term backlog Expected to ship beyond 3 months $ 223.4 $ 190.3 $ 156.0 Long-term backlog as % of total backlog 62.0 % 59.0 % 53.3 % Debt to total capitalization percentage 34.2 % 34.8 % 36.6 % Debt, net of cash, to net total capitalization 32.8 % 32.1 % 33.3 % Working capital as a % of sales 25.2 % 21.3 % 22.5 % Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024 ($ in millions) Trade accounts receivable Days sales outstanding 69.5 days 61.0 days 63.3 days Inventory turns per year (based on cost of products sold) 2.9 turns 3.4 turns 3.0 turns Days' inventory 125.9 days 107.4 days 121.7 days Trade accounts payable Days payables outstanding 56.1 days 54.9 days 50.6 days Net cash provided by (used for) operating activities $ (18.2) $ 35.6 $ (10.8) Capital expenditures $ 3.2 $ 6.1 $ 4.6 Free Cash Flow 2 $ (21.4) $ 29.5 $ (15.4) ______________________ 1 Additional Data: This data is provided to help investors understand financial and operational metrics that management uses to measure the Company's financial performance and identify trends affecting the business. These measures may not be comparable with or defined in the same manner as other companies. Components may not add due to rounding. 2 Free Cash Flow is a non-GAAP financial measure. Free Cash Flow is defined as GAAP net cash provided by (used for) operating activities less capital expenditures included in the investing activities section of the consolidated statement of cash flows. See the table above for the calculation of Free Cash Flow. NON-GAAP FINANCIAL MEASURES The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies. COLUMBUS McKINNON CORPORATION Reconciliation of Gross Profit to Adjusted Gross Profit ($ in thousands) Three Months Ended June 30, 2025 June 30, 2024 Gross profit $ 77,222 $ 89,030 Add back (deduct): Business realignment costs 1,385 392 Factory and warehouse consolidation costs 425 — Monterrey, MX new factory start-up costs 1,901 1,625 Adjusted Gross Profit $ 80,933 $ 91,047 Net sales $ 235,920 $ 239,726 Gross margin 32.7 % 37.1 % Adjusted Gross Margin 34.3 % 38.0 % Adjusted Gross Profit is defined as gross profit as reported, adjusted for certain items. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net sales. Adjusted Gross Profit and Adjusted Gross Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Gross Profit and Adjusted Gross Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Gross Profit and Adjusted Gross Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's gross profit and gross margin to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company's gross profit and gross margin to that of other companies. COLUMBUS McKINNON CORPORATION Reconciliation of Income from Operations to Adjusted Operating Income ($ in thousands) Three Months Ended June 30, 2025 June 30, 2024 Income from operations $ 5,492 $ 21,147 Add back (deduct): Acquisition deal and integration costs 8,103 — Business realignment costs 2,525 850 Factory and warehouse consolidation costs 482 — Headquarter relocation costs — 96 Monterrey, MX new factory start-up costs 1,901 3,566 Adjusted Operating Income $ 18,503 $ 25,659 Net sales $ 235,920 $ 239,726 Operating margin 2.3 % 8.8 % Adjusted Operating Margin 7.8 % 10.7 % Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by net sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's income from operations to the historical periods' income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company's income from operations and operating margin to that of other companies. COLUMBUS McKINNON CORPORATION Reconciliation of Net Income and Diluted Earnings per Share to Adjusted Net Income and Adjusted Earnings per Share ($ in thousands, except per share data) Three Months Ended June 30, 2025 June 30, 2024 Net income (loss) $ (1,898) $ 8,629 Add back (deduct): Amortization of intangibles 7,635 7,500 Acquisition deal and integration costs 8,103 — Business realignment costs 2,525 850 Factory and warehouse consolidation costs 482 — Headquarter relocation costs — 96 Monterrey, MX new factory start-up costs 1,901 3,566 Normalize tax rate1 (4,492) (2,595) Adjusted Net Income $ 14,256 $ 18,046 GAAP average diluted shares outstanding 28,658 29,127 Add back: Effect of dilutive share-based awards 120 — Adjusted Diluted Shares Outstanding $ 28,778 $ 29,127 GAAP EPS $ (0.07) $ 0.30 Adjusted EPS $ 0.50 $ 0.62 1 Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax. Adjusted Net Income is defined as net income (loss) and GAAP EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Diluted Shares Outstanding is defined as average diluted shares outstanding adjusted for the effect of dilutive share-based awards. Adjusted EPS is defined as Adjusted Net Income per Adjusted Diluted Shares Outstanding. Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of current periods' net income (loss), average diluted shares outstanding and GAAP EPS to the historical periods' net income (loss), average diluted shares outstanding and GAAP EPS, as well as facilitates a more meaningful comparison of the Company's net income (loss) and GAAP EPS to that of other companies. The Company believes that presenting Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company's strategy to grow through acquisitions as well as organically. COLUMBUS McKINNON CORPORATION Reconciliation of Net Income to Adjusted EBITDA ($ in thousands) Three Months Ended June 30, 2025 June 30, 2024 Net income (loss) $ (1,898) $ 8,629 Add back (deduct): Income tax expense (benefit) 260 3,421 Interest and debt expense 8,698 8,235 Investment (income) loss (1,049) (209) Foreign currency exchange (gain) loss (342) 395 Other (income) expense, net (177) 676 Depreciation and amortization expense 12,266 11,840 Acquisition deal and integration costs 8,103 — Business realignment costs 2,525 850 Factory and warehouse consolidation costs 482 — Headquarter relocation costs — 96 Monterrey, MX new factory start-up costs 1,901 3,566 Adjusted EBITDA $ 30,769 $ 37,499 Net sales $ 235,920 $ 239,726 Net income margin (0.8) % 3.6 % Adjusted EBITDA Margin 13.0 % 15.6 % Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not a measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company's financial statements. SOURCE Columbus McKinnon Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Columbus McKinnon Reports Q1 FY26 Results and Reaffirms Guidance

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