Columbus McKinnon (CMCO) Q2 2026 earnings summary

Executive summary

• Q2 FY26 net sales reached $261 million, up 8% year-over-year, with growth across all platforms, especially Lifting and Linear Motion, and strong U.S. order growth offsetting weaker EMEA demand.

• Net income was $4.6 million (net margin 1.8%), including $10 million in acquisition-related expenses; adjusted EBITDA grew 22% sequentially to $37.4 million (14.3% margin).

• Adjusted EPS was $0.62, up from $0.50 in the prior quarter and $(0.52) in the prior year; GAAP EPS was $0.16.

• Progress continued on operational improvement, tariff mitigation, and integration preparedness for the pending Kito Crosby acquisition, expected to close by fiscal year-end.

• Backlog increased 11% year-over-year to $352 million, reflecting a healthy opportunity funnel despite macroeconomic headwinds in EMEA.

Financial highlights

• Net sales for Q2 FY26 were $261 million (+8% YoY); gross profit rose 21% to $90.2 million, with gross margin at 34.5% and adjusted gross margin at 35.3%.

• Adjusted operating income was $25.2 million (9.7% margin); operating income was $12.2 million (4.7% margin).

• Adjusted EBITDA reached $37.4 million (14.3% margin); free cash flow was $15.1 million, reflecting earnings growth and working capital improvement.

• Adjusted EPS was $0.62, down $0.08 year-over-year due to tariffs; GAAP EPS was $0.16.

• Debt repayments in Q2 FY26 totaled $14.7 million; cash and equivalents at quarter-end were $28.3 million.

Outlook and guidance

• FY26 net sales growth guidance raised to low- to mid-single digits; adjusted EPS guidance reaffirmed as flat to slightly up, excluding the pending Kito Crosby acquisition.

• Tariff-related cost impacts estimated at $10 million for FY26, with profit neutrality targeted by year-end.

• Guidance assumes $35 million interest expense, $30 million amortization, 25% effective tax rate, and 29 million diluted shares.

• Fiscal Q3 expected to be seasonally low for sales and margins due to holidays.

• Capital expenditures for FY26 projected at $15–$20 million.