Columbus McKinnon (CMCO) Q2 2027 earnings summary

Executive summary

• Q2 FY27 net sales were $539.3 million, up 106.6% YoY; orders were $562.6 million, up 13% pro forma and 122% reported, with growth from Kito Crosby and legacy operations.

• Kito Crosby integration remained on track, with synergy realization ahead of plan and strong customer response to the combined portfolio.

• FY27 net sales, Adjusted EBITDA and Adjusted EPS guidance increased.

Financial highlights

• Q2 net sales were $539.3 million versus $261.0 million YoY; Adjusted EBITDA was $111.2 million, with a 20.6% margin.

• Adjusted net income was $31.1 million and Adjusted EPS was $0.61; GAAP net loss was $25.5 million, or $0.76 per diluted share.

• Adjusted gross margin was 36.5%, up 120 bps YoY; reported gross margin was 34.8%, up 30 bps.

• H1 net sales rose 115.5% to $1.071 billion; net loss attributable to shareholders was $114.3 million and Adjusted EBITDA was $222.6 million.

• H1 operating cash flow was $21.1 million, CapEx was $16.5 million and free cash flow was $4.6 million.

Outlook and guidance

• FY27 net sales guidance increased to $2.13–$2.17 billion from $2.09–$2.15 billion; Adjusted EBITDA guidance rose to $425–$440 million from $405–$420 million.

• FY27 Adjusted EPS guidance increased to $2.00–$2.15 from $1.90–$2.10.

• Updated assumptions include interest expense of $185–$190 million, CapEx of $45–$55 million, a 25% normalized tax rate and 52 million adjusted diluted shares.

• Working capital invested to support sales growth is expected to convert to cash in H2, with free cash flow expected to accelerate.