Columbus McKinnon (CMCO) Q3 2026 earnings summary

Executive summary

• Achieved double-digit year-over-year growth in net sales, orders, EPS, and backlog, with Q3 FY26 net sales reaching $258.7 million and net income up 51% to $6.0 million; robust performance was driven by strength in lifting, automation, and precision conveyance, especially in North America.

• Closed the transformative $2.7 billion Kito Crosby acquisition, doubling the revenue base, expanding global reach, and integrating new leadership.

• U.S. demand remains robust, while EMEA faces slower order conversion and macroeconomic headwinds.

• Strong backlog up 15% year-over-year to $342 million, positioning for continued growth.

Financial highlights

• Net sales reached $258.7 million, up 10.5% year-over-year, with gross profit up 8.6% to $89.2 million and gross margin at 34.5%.

• Adjusted EBITDA was $39.8 million (15.4% margin); adjusted EPS rose 11% to $0.62; GAAP EPS was $0.21, including acquisition-related expenses.

• Free cash flow for the quarter was $16.5 million, with year-to-date cash from operations up 106% to $20.6 million.

• Operating income was $16.2 million (6.3% margin); adjusted operating income was $24.5 million (9.5% margin).

Outlook and guidance

• Standalone FY26 guidance was withdrawn due to the Kito Crosby acquisition and pending divestiture; updated FY27 guidance will be provided with Q4 FY26 results.

• Combined business targets $2.0–$2.1 billion in revenue and $440–$460 million EBITDA, including $70 million in synergies over three years.

• Expect cost neutrality on tariffs by year-end and margin neutrality in FY27; Q4 FY26 GAAP EPS expected to be diluted by transaction-related expenses and higher interest.

• Capital allocation will prioritize debt reduction, targeting net leverage below 4.0x by end of FY28.