Columbus McKinnon (CMCO) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 featured strategic transformation with the Kito Crosby acquisition and divestiture of U.S. power chain hoist and chain operations, driving record orders and sales growth.

• Orders grew 20% to $1.2 billion and net sales rose 24% to $1.2 billion, primarily due to the acquisition.

• Integration of Kito Crosby delivered early synergies and operational improvements.

• Net loss attributable to the company was $230 million, impacted by a $200 million non-cash goodwill impairment, deal-related costs, and inventory step-up amortization.

• Strong U.S. demand and robust backlog position entering fiscal 2027.

Financial highlights

• Record FY26 net sales of $1.2 billion, up 24% year-over-year, with $188 million from Kito Crosby; Q4 net sales were $438 million, up 77%.

• Q4 adjusted gross profit was $143 million with a margin of 32.7%.

• Adjusted EBITDA for FY26 was $181 million (margin 15.2%); Q4 adjusted EBITDA was $69 million (margin 15.7%).

• Adjusted EPS for FY26 was $1.87, down from $2.48 in FY25, impacted by higher share count and interest expense.

• GAAP net loss in Q4 was $238 million, including $200 million goodwill impairment, $24 million debt extinguishment, and $27 million higher interest expense, partially offset by a $103 million gain on divestiture.

Outlook and guidance

• FY27 guidance: net sales $2.05–$2.12 billion, adjusted EBITDA $390–$410 million, adjusted EPS $1.70–$1.90.

• Assumptions include $185–$190 million interest expense, $135–$140 million amortization, $75–$80 million depreciation, 25% tax rate, and 52 million adjusted diluted shares.

• $14 million in-year cost synergies expected from Kito Crosby integration; business expected to be back-half weighted due to synergy realization and growth initiatives.

• Free cash flow (excluding acquisition/divestiture costs) was $68 million, up $43 million year-over-year.

• Targeting net leverage below 4x within two years.