Columbus McKinnon (CMCO) Q3 2026 earnings summary

Executive summary

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

• Delivered double-digit year-over-year growth in sales, orders, EPS, and backlog, with strong performance across all regions and business segments.

• Net income rose 51% year-over-year to $6.0 million ($0.21 per diluted share); adjusted net income increased 11% to $18 million ($0.62 per share).

• Integration activities underway, targeting $70 million in net run rate cost synergies over three years.

• Pending divestiture of U.S. power chain hoist and chain operations expected to close by quarter-end, introducing near-term uncertainty.

Financial highlights

• Net sales reached $258.7 million, up 10.5% year-over-year, driven by higher volume, pricing, and FX.

• Adjusted EBITDA was $39.8 million (15.4% margin); adjusted EPS rose 11% to $0.62.

• Gross profit increased 8.6% to $89.2 million; adjusted gross margin contracted 170 bps to 35.1%.

• Free cash flow was $16.5 million, aided by higher earnings and favorable working capital.

• Orders up 11% to $247 million; backlog up 15% to $342 million year-over-year.

Outlook and guidance

• Withdrew standalone FY26 guidance due to the Kito Crosby acquisition and pending divestiture; updated FY27 guidance to be provided with Q4 FY26 results.

• Q4 FY26 GAAP EPS expected to be diluted by transaction-related expenses, purchase accounting, integration costs, and higher interest expense.

• U.S. demand expected to remain healthy, supported by lower rates, tax incentives, and onshoring trends, while EMEA demand remains choppy with slower order conversion.

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