Columbus McKinnon (CMCO) Small-Cap Virtual Conference summary

Strategic Overview and Market Positioning

• Recent transformative acquisition doubled revenue to $2 billion, expanded global reach, and focused on intelligent motion solutions for material handling across diversified end markets, including lifting, automation, and linear motion sectors.

• Expansion into secular growth categories aims to capitalize on industry megatrends and enhance strategic positioning.

• The acquisition brought together businesses with minimal customer overlap, enabling significant cross-selling and revenue synergy opportunities.

• Approximately 30-35% of sales are now recurring consumables, enhancing business resilience through cycles.

• Integration of customer-facing e-commerce portals and world-class service organization is improving customer experience.

Financial Performance and Synergy Realization

• Trailing twelve months net sales reached $2.0B, with adjusted gross margin around 36% and adjusted EBITDA margin at 22%.

• Publicly committed to $70 million in cost synergies from the acquisition, targeting 20% realization in fiscal 2027, with high confidence in meeting or exceeding year-one targets.

• Free cash flow conversion exceeded 100% for the trailing twelve months ended September 30, 2025.

• Early synergy gains are primarily from SG&A reductions, with further savings expected from consolidating facilities and optimizing material costs.

• Margin expansion is expected through ongoing productivity initiatives and strategic pricing to offset inflation.

Operational Initiatives and Integration

• Integration of recent acquisition is on track, targeting net cost synergies and leverage reduction.

• Margin improvement initiatives include optimizing product portfolio, leveraging scale, and eliminating overlapping costs.

• Continuous improvement is driven by the Columbus McKinnon Business System and 80/20 process.

• Focus on maximizing asset efficiency, minimizing cash taxes, and optimizing net working capital.

• Estimated annual net run rate cost synergies are included in pro forma financials.