Columbus McKinnon Corporation

Fiscal 2026 net sales were $1.2 billion, up 24% year over year, driven by organic growth, favorable foreign exchange, and $188 million of revenue from Kito Crosby, partially offset by a $14 million divestiture impact. Fourth-quarter net sales were $438 million, up 77% from the prior year. Fourth-quarter GAAP gross profit was $103 million, up 29%; adjusted gross profit was $143 million and adjusted gross margin was 32.7%. Fourth-quarter adjusted EBITDA was $69 million, up 93%, with adjusted EBITDA margin of 15.7%. GAAP loss per share was $5.78 in the quarter and $7.40 for the full year; adjusted EPS was $0.24 in the quarter and $1.87 for the year. For fiscal 2027, the company guided to net sales of $2.05 billion to $2.12 billion, adjusted EBITDA of $390 million to $410 million, and adjusted EPS of $1.70 to $1.90. Guidance assumes $185 million to $190 million of interest expense, $135 million to $140 million of amortization, $75 million to $80 million of depreciation, a 25% tax rate, and 52 million adjusted diluted shares outstanding.

David Wilson framed fiscal 2026 as a defining, transformational year, emphasizing strategic progress, disciplined execution, and the early value of the Kito Crosby combination. He said the integration is off to a strong start, that the company is seeing early synergy wins from organizational realignment and third-party spend savings, and that management is confident in achieving the $70 million annualized net cost synergy target in year 3. His tone was constructive and optimistic, but he also acknowledged macro uncertainty in Europe and the Middle East and said the company is focused on what it can control: pricing, execution, integration, and debt reduction.

Gregory Rustowicz highlighted record fiscal 2026 net sales of $1.2 billion, fourth-quarter net sales of $438 million, and fourth-quarter adjusted EBITDA of $69 million with a 15.7% margin. He explained that fourth-quarter adjusted gross margin was 32.7% and that gross margin was pressured by divestiture dilution, tariffs, unfavorable mix, delayed shipments in EMEA, and U.S. sales-force distractions related to the divestiture. On cash and capital allocation, he said year-to-date operating cash flow used was $146 million, free cash flow excluding acquisition/divestiture cash costs was $68 million, net leverage was 5.1x, liquidity was $561 million, and the priority is debt reduction; he also said the company believes it can get to 4x or inside of 4x net leverage within 2 years.

Analysts focused on how to think about sales guidance, free cash flow, leverage, and margin progression. Management said there are no revenue synergies in guidance, pro forma growth is expected at 1%-4%, and pricing is expected to be a little more than half of organic growth; they also cited strong U.S. demand but more uncertainty in Europe and the Middle East. On cash flow and leverage, management said it expects substantial free cash flow to go toward debt repayment and reiterated a goal of getting to 4x or below leverage within 2 years. They also said most margin headwinds seen in the quarter are transient, though some effects from the Middle East conflict and mix may persist for a short time.