Columbus McKinnon (CMCO) Q1 2027 earnings summary

Executive summary

• Q1 FY27 delivered record net sales of $531.5 million, up 125% year-over-year, driven by the Kito Crosby acquisition and strong growth in both legacy and acquired businesses, partially offset by the divestiture of the U.S. Power Chain Hoist and Chain Manufacturing Operations.

• Orders rose 120% to $568.1 million, with a book-to-bill ratio of 1.1x and backlog up 50% to $541 million, positioning the company well for the second half of FY27.

• Integration of Kito Crosby is progressing as planned, with early synergy wins and confidence in exceeding the $70 million annual cost synergy target.

• Net loss attributable to the company was $88.7 million, or $(2.05) per share, including $70.3 million in acquisition and integration expenses.

• Strength observed in defense, infrastructure, energy, e-commerce, data center, shipbuilding, electrification, pharma, and automation markets, especially in the Americas and Asia Pacific; EMEA remained soft.

Financial highlights

• Net sales were $531.5 million, up 125% year-over-year; Legacy CMCO net sales grew 13%, and Kito Crosby contributed $305 million.

• Orders reached $568.1 million, up 120% year-over-year, with pro forma orders up 9%; backlog reached $541 million, up 50% year-over-year.

• Adjusted EBITDA was $111.5 million (21% margin), up 242%, with margin expanding 720 basis points year-over-year.

• Adjusted EPS grew $0.11 to $0.61; adjusted net income was $30.5 million.

• Free cash flow (excluding deal costs) was $32.4 million, up $49.7 million year-over-year.

• Net loss of $88.7 million on a GAAP basis due to non-cash inventory step-up, interest, and integration costs.

Outlook and guidance

• FY27 net sales guidance raised to $2.09–$2.15 billion (from $2.05–$2.12 billion).

• Adjusted EBITDA guidance increased to $405–$420 million (from $390–$410 million); adjusted EPS guidance raised to $1.90–$2.10 (from $1.70–$1.90).

• Q2 expected to be the low point for sales and adjusted EBITDA; margins to improve in the second half as synergies and pricing actions take effect.

• Guidance assumes $185–$190 million interest expense, $135–$140 million amortization, $75–$80 million depreciation, and a 25% normalized tax rate.

• Deleveraging target reaffirmed: net leverage below 4x by fiscal 2028.