Columbus McKinnon Reports Record Orders in Fiscal 2025

By PR Newswire | May 28, 2025, 6:30 AM

CHARLOTTE, N.C., May 28, 2025 /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company"), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its full year and fourth quarter fiscal 2025, which ended March 31, 2025.

Fiscal Year 2025 Highlights (compared with prior year period)

  • Record orders of $1.0 billion, up 3%, inclusive of a negative 1% foreign exchange impact, driven by 8% growth in project-related business and 19% in precision conveyance
  • Backlog of $322.5 million increased $41.7 million, or 15%
  • Net sales of $963.0 million, down 5%, inclusive of a negative 1% foreign exchange impact, driven by short cycle order softness and higher project-related orders with a longer delivery timeframe
  • Net loss of $5.1 million with a net margin of (0.5%) includes $22.1 million non-cash pension settlement costs, $16.4 million factory consolidation costs, $12.8 million Monterrey, MX start-up costs and $10.3 million of costs related to the pending acquisition of Kito Crosby2
  • Adjusted EBITDA1 of $150.5 million with Adjusted EBITDA Margin1 of 15.6%
  • Repaid $60.7 million of debt in FY25

Fourth Quarter 2025 Highlights (compared with prior year period)

  • Orders increased 2%, inclusive of a negative 2% foreign exchange impact, led by precision conveyance and automation, both up 14%
  • Delivered $246.9 million of net sales, down 7%, inclusive of a negative 2% foreign exchange impact, driven by short cycle demand softness
  • Net loss of $2.7 million with a net margin of (1.1%) includes $8.5 million costs related to the pending acquisition of Kito Crosby, $3.8 million factory consolidation costs and $2.4 million Monterrey, MX start-up costs2
  • Adjusted EBITDA1 of $36.1 million with Adjusted EBITDA Margin1 of 14.6%

"We enter fiscal 2026 with a strong backlog and continued order growth as our commercial initiatives gain traction.  Our conviction in Columbus McKinnon's strategy and business model remains strong as we continue to anticipate tailwinds from industry megatrends like on-shoring, scarcity of labor and global infrastructure investments over time," said David Wilson, President and Chief Executive Officer. "We have a strong track record of navigating through uncertain environments and managing performance through volatility. Accordingly, we are actively working to mitigate the impact of tariff policies with supply chain adjustments, surcharges and price. I want to thank our Columbus McKinnon team for their relentless efforts to continuously improve customer service and advance our strategic initiatives as we execute on fiscal 2026 and work toward the closing of the Kito Crosby acquisition."

Fourth Quarter Fiscal 2025 Sales

($ in millions)

Q4 FY 25



Q4 FY 24



Change



% Change

Net sales

$        246.9



$        265.5



$            (18.6)



(7.0) %

U.S. sales

$        139.4



$        155.0



$            (15.6)



(10.1) %

     % of total

56 %



58 %









Non-U.S. sales

$        107.5



$        110.5



$              (3.0)



(2.7) %

     % of total

44 %



42 %









For the quarter, net sales decreased $18.6 million, or 7.0%. In the U.S., sales were down $15.6 million, or 10.1%, driven by unfavorable sales volume of $16.2 million slightly offset by price improvement of $0.6 million. Sales outside the U.S. decreased $3.0 million, or 2.7%, driven by $1.1 million of lower sales volume offset by $2.3 million of price improvement. Unfavorable foreign currency translation was $4.2 million.

Fourth Quarter Fiscal 2025 Operating Results

($ in millions)

Q4 FY 25



Q4 FY 24



Change



% Change

Gross profit

$          79.8



$          94.3



$            (14.5)



(15.4) %

     Gross margin

32.3 %



35.5 %



(320) bps





Adjusted Gross Profit1

$          87.0



$          97.1



$            (10.1)



(10.4) %

     Adjusted Gross Margin1

35.2 %



36.6 %



(140) bps





Income from operations

$            4.9



$          25.4



$            (20.5)



(80.6) %

Operating margin

2.0 %



9.6 %



(760) bps





Adjusted Operating Income1

$          24.1



$          31.1



$              (7.0)



(22.4) %

     Adjusted Operating Margin1

9.8 %



11.7 %



(190) bps





Net income (loss)

$           (2.7)



$          11.8



$            (14.5)



NM

     Net income (loss) margin

(1.1) %



4.4 %



(550) bps





GAAP EPS

$         (0.09)



$          0.41



$            (0.50)



NM

Adjusted EPS1

$          0.60



$          0.75



$            (0.15)



(20.0) %

Adjusted EBITDA1

$          36.1



$          43.0



$              (6.9)



(16.1) %

     Adjusted EBITDA margin1

14.6 %



16.2 %



(160) bps





Adjusted EPS1 excludes, among other adjustments, amortization of intangible assets. The Company believes this better represents its inherent earnings power and cash generation capability.

Kito Crosby Transaction

As it announced on February 10, 2025, Columbus McKinnon believes that the acquisition of Kito Crosby Limited ("Kito Crosby") will scale its business and accelerate the realization of the Company's Intelligent Motion strategy. Through this complementary combination, Columbus McKinnon believes it will be better positioned to deliver a superior customer value proposition through an expanded product offering across a broader set of geographies, generating enhanced financial results and long-term value for shareholders.

The acquisition is conditioned on the receipt of regulatory clearance and satisfactory completion of customary closing conditions. The Company continues to make progress towards completing the proposed acquisition and work collaboratively with the Department of Justice on regulatory clearance matters with regards to the transaction through the date of this release. The Company continues to anticipate the closing of the transaction later this calendar year.

Capital Allocation Priorities

The Company plans to continue to allocate capital to pay down debt to deleverage its balance sheet in the near term while continuing its track record of consistent dividend payment. Over time, the Company believes it will be positioned to utilize its expected significant free cash flow generation to advance its Intelligent Motion strategy across the fragmented marketplace.

Fiscal Year 2026 Guidance

The Company's outlook for fiscal 2026 does not contemplate the impact of the pending Kito Crosby acquisition. Additionally, the guidance only reflects what is known as of the date of this release about the tariff policy environment, which has remained volatile to date and may impact supply chain costs and product availability. This forecast assumes tariffs will be a headwind to Adjusted EPS in the first half of fiscal 2026 due to the timing of supply chain adjustments, pricing increases and surcharge implementation lagging tariff costs and tariff cost neutrality expected by the second half of fiscal 2026.

The Company is issuing the following guidance for fiscal 2026, ending March 31, 2026:

Metric

FY26



Net sales

Flat to slightly up



Adjusted EPS3

Flat to slightly up



Fiscal 2026 guidance assumes approximately $35 million of interest expense, $30 million of amortization, an effective tax rate of 25% and 29.0 million diluted average shares outstanding.

Teleconference and Webcast

Columbus McKinnon will host a conference call today at 10:00 AM Eastern Time to discuss the Company's financial results and strategy.  The conference call, earnings release and earnings presentation will be accessible through live webcast on the Company's investor relations website at investors.cmco.com. A replay of the webcast will also be archived on the Company's investor relations website through June 4, 2025.

__________________________

1 

Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP financial measures.  See accompanying discussion and reconciliation tables provided in this release for reconciliations of these non-GAAP financial measures to the closest corresponding GAAP financial measures.

2 

Each expense listed is being presented in a tax effected manner using a 6.7% tax rate for fiscal 2025 and 23.2% tax rate for Q4 fiscal 2025

3 

The Company has not reconciled the Adjusted EPS guidance for fiscal 2026 to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide guidance for the comparable GAAP financial measure. Forward-looking guidance regarding Adjusted EPS is made in a manner consistent with the relevant definitions and assumptions noted herein.

About Columbus McKinnon

Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning, and securing materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how.  Comprehensive information on Columbus McKinnon is available at www.cmco.com.

Safe Harbor Statement

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "illustrative," "intend," "likely," "may," "opportunity," "plan," "possible," "potential," "predict," "project," "shall," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this release, including, but are not limited to, statements relating to: (i) our strategy, outlook and growth prospects, including the Company's full year fiscal 2026 guidance as the associated assumed inputs for fiscal 2026 regarding interest expense, amortization, effective tax rate and diluted shares outstanding; (ii) our operational and financial targets and capital distribution policy; (iii) general economic trend and trends in the industry and markets; (iv) the the timing for the closing of the Kito Crosby acquisition and expected benefits of the Kito Crosby acquisition; (v) the repayment of indebtedness; and (vi) the competitive environment in which we operate are forward looking statements. Forward-looking statements are not based on historical facts but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made. Columbus McKinnon undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

Contacts:

Gregory P. Rustowicz



Kristine Moser

EVP Finance and CFO



VP IR and Treasurer

Columbus McKinnon Corporation



Columbus McKinnon Corporation

716-689-5442



704-322-2488

[email protected] 



[email protected] 

Financial tables follow.

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - Unaudited

(In thousands, except per share and percentage data)

 





Year Ended









March 31, 2025



March 31, 2024



Change

Net sales



$          963,027



$       1,013,540



(5.0) %

Cost of products sold



637,347



638,702



(0.2) %

Gross profit



325,680



374,838



(13.1) %

Gross profit margin



33.8 %



37.0 %





Selling expenses



110,043



105,341



4.5 %

% of net sales



11.4 %



10.4 %





General and administrative expenses



107,249



106,760



0.5 %

% of net sales



11.1 %



10.5 %





Research and development expenses



23,869



26,193



(8.9) %

% of net sales



2.5 %



2.6 %





Amortization of intangibles



29,946



29,396



1.9 %

Income from operations



54,573



107,148



(49.1) %

Operating margin



5.7 %



10.6 %





Interest and debt expense



32,426



37,957



(14.6) %

Investment (income) loss, net



(1,302)



(1,759)



(26.0) %

Foreign currency exchange loss (gain), net



3,179



1,826



74.1 %

Other (income) expense, net



25,775



7,597



239.3 %

Income before income tax expense



(5,505)



61,527



NM

Income tax (benefit) expense



(367)



14,902



NM

Net income (loss)



$            (5,138)



$            46,625



NM















Average basic shares outstanding



28,738



28,728



— %

Basic income (loss) per share



$              (0.18)



$                1.62



NM















Average diluted shares outstanding



28,738



29,026



(1.0) %

Diluted income (loss) per share



$              (0.18)



$                1.61



NM















Dividends declared per common share



$                0.28



$                0.28





 

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - Unaudited

(In thousands, except per share and percentage data)

 





Three Months Ended









March 31, 2025



March 31, 2024



Change

Net sales



$          246,889



$          265,504



(7.0) %

Cost of products sold



167,079



171,189



(2.4) %

Gross profit



79,810



94,315



(15.4) %

Gross profit margin



32.3 %



35.5 %





Selling expenses



27,999



26,941



3.9 %

% of net sales



11.3 %



10.1 %





General and administrative expenses



33,206



27,353



21.4 %

% of net sales



13.4 %



10.3 %





Research and development expenses



6,276



7,059



(11.1) %

% of net sales



2.5 %



2.7 %





Amortization of intangibles



7,398



7,525



(1.7) %

Income from operations



4,931



25,437



(80.6) %

Operating margin



2.0 %



9.6 %





Interest and debt expense



8,141



9,169



(11.2) %

Investment (income) loss, net



(429)



(547)



(21.6) %

Foreign currency exchange loss (gain), net



449



752



(40.3) %

Other (income) expense, net



263



1,757



(85.0) %

Income before income tax expense



(3,493)



14,306



NM

Income tax (benefit) expense



(809)



2,497



NM

Net income (loss)



$            (2,684)



$            11,809



NM















Average basic shares outstanding



28,615



28,780



(0.6) %

Basic income (loss) per share



$              (0.09)



$                0.41



NM















Average diluted shares outstanding



28,615



29,129



(1.8) %

Diluted income (loss) per share



$              (0.09)



$                0.41



NM















Dividends declared per common share



$                0.14



$                0.14





 

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets - Unaudited

(In thousands)

 





March 31, 2025



March 31, 2024

ASSETS









Current assets:









Cash and cash equivalents



$                53,683



$              114,126

Trade accounts receivable



165,481



171,186

Inventories



198,598



186,091

Prepaid expenses and other



48,007



42,752

Total current assets



465,769



514,155











Net property, plant, and equipment



106,164



106,395

Goodwill



710,807



710,334

Other intangibles, net



356,562



385,634

Marketable securities



10,112



11,447

Deferred taxes on income



2,904



1,797

Other assets



86,470



96,183

Total assets



$           1,738,788



$           1,825,945











LIABILITIES AND SHAREHOLDERS' EQUITY









Current liabilities:









Trade accounts payable



$                93,273



$                83,118

Accrued liabilities



113,907



127,973

Current portion of long-term debt and finance lease obligations



50,739



50,670

Total current liabilities



257,919



261,761











Term loan, AR securitization facility and finance lease obligations



420,236



479,566

Other non-current liabilities



178,538



202,555

Total liabilities



856,693



943,882











Shareholders' equity:









Common stock



286



288

Treasury stock



(11,000)



(1,001)

Additional paid-in capital



531,750



527,125

Retained earnings



382,160



395,328

Accumulated other comprehensive loss



(21,101)



(39,677)

Total shareholders' equity



882,095



882,063

Total liabilities and shareholders' equity



$           1,738,788



$           1,825,945

 

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows - Unaudited

(In thousands)

 





Year Ended





March 31, 2025



March 31, 2024

Operating activities:









Net income (loss)



$                       (5,138)



$                       46,625

Adjustments to reconcile net income to net cash provided by (used for) operating activities:





Depreciation and amortization



48,187



45,945

Deferred income taxes and related valuation allowance



(20,256)



(15,285)

Net loss (gain) on sale of real estate, investments and other



(972)



(1,431)

Stock-based compensation



6,256



12,039

Amortization of deferred financing costs



2,487



2,349

Loss (gain) on hedging instruments



(382)



(1,366)

Cost of debt repricing





958

Impairment of operating lease



3,911



Loss on disposals and impairments of fixed assets



2,533



Non-cash pension settlement expense



23,634



4,984

Non-cash lease expense



10,105



9,735

Changes in operating assets and liabilities, net of effects of business acquisitions:





Trade accounts receivable



4,482



(14,428)

Inventories



(13,042)



(1,314)

Prepaid expenses and other



(20,998)



(8,555)

Other assets



3,498



537

Trade accounts payable



11,144



4,748

Accrued liabilities



(250)



(9,583)

Non-current liabilities



(9,587)



(8,760)

Net cash provided by (used for) operating activities



45,612



67,198











Investing activities:









Proceeds from sales of marketable securities



5,057



3,526

Purchases of marketable securities



(3,676)



(4,076)

Capital expenditures



(21,411)



(24,813)

Purchases of businesses, net of cash acquired





(108,145)

Dividend received from equity method investment





144

Proceeds from sale of fixed assets



139



Net cash provided by (used for) investing activities



(19,891)



(133,364)











Financing activities:









Proceeds from issuance of common stock



371



1,600

chases of treasury stock



(10,000)



Fees paid for debt repricing



(169)



(958)

Repayment of debt



(60,670)



(60,604)

Payment to former owners of montratec



(6,711)



Proceeds from issuance of long-term debt





120,000

Cash inflows from hedging activities



23,608



24,057

Cash outflows from hedging activities



(23,134)



(22,687)

Fees paid for borrowing on long-term debt





(2,859)

Payment of dividends



(8,042)



(8,044)

Other



(2,000)



(2,304)

Net cash provided by (used for) financing activities



(86,747)



48,201











Effect of exchange rate changes on cash



583



(1,085)











Net change in cash and cash equivalents



(60,443)



(19,050)

Cash, cash equivalents, and restricted cash at beginning of year



114,376



133,426

Cash, cash equivalents, and restricted cash at end of year



$                       53,933



$                     114,376

 

COLUMBUS McKINNON CORPORATION

Q4 FY 2025 Sales Bridge

 





Quarter



Year

($ in millions)



$ Change



% Change



$ Change



% Change

Fiscal 2024 Net Sales



$          265.5







$        1,013.5





Acquisition





— %



2.7



0.3 %

Volume



(17.3)



(6.5) %



(60.2)



(5.9) %

Pricing



2.9



1.1 %



12.5



1.2 %

Foreign currency translation



(4.2)



(1.6) %



(5.5)



(0.5) %

Total change2



$           (18.6)



(7.0) %



$           (50.5)



(5.0) %

Fiscal 2025 Net Sales



$          246.9







$          963.0





 

COLUMBUS McKINNON CORPORATION

Q4 FY 2025 Gross Profit Bridge

 

($ in millions)

Quarter



Year

Fiscal 2024 Gross Profit

$                    94.3



$                  374.8

Acquisition



0.8

Price, net of manufacturing cost changes (incl. inflation)

2.0



9.5

Foreign currency translation

(1.1)



(1.5)

Monterrey, MX new factory start-up costs

(0.5)



(6.9)

Factory and warehouse consolidation costs

(3.9)



(15.2)

Sales volume & mix

(11.0)



(33.0)

Other



(0.8)

Product liability1



(2.0)

Total change2

(14.5)



(49.1)

Fiscal 2025 Gross Profit

$                    79.8



$                  325.7

 

U.S. Shipping Days by Quarter 





Q1



Q2



Q3



Q4



Total

FY 26



63



63



62



61



249























FY 25



64



63



62



62



251























FY 24



63



62



61



62



248

__________________________

1   

Product liability represents a year-over-year difference between the current year adjustment increasing the Company's product liability reserve and the prior year's adjustment decreasing the Company's product liability reserve. For more details please see the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

2 

Components may not add due to rounding.

 

COLUMBUS McKINNON CORPORATION

Additional Data1

(Unaudited)

 





Period Ended





March 31, 2025



December 31, 2024



March 31, 2024

($ in millions)



















Backlog



$         322.5





$           296.5





$         280.8



Long-term backlog



















  Expected to ship beyond 3 months



$         190.3





$           166.1





$         144.6



Long-term backlog as % of total backlog



59.0

%



56.0

%



51.5

%





















Debt to total capitalization percentage



34.8

%



35.8

%



37.5

%





















Debt, net of cash, to net total capitalization



32.1

%



33.8

%



32.0

%





















Working capital as a % of sales 2



21.3

%



23.7

%



19.1

%

 





Three Months Ended





March 31, 2025



December 31, 2024



March 31, 2024

($ in millions)



















Trade accounts receivable



















Days sales outstanding



61.0

days



61.0

days



58.7

days





















Inventory turns per year



















(based on cost of products sold)



3.4

turns



3.0

turns



3.7

turns

Days' inventory



107.4

days



121.7

days



98.6

days





















Trade accounts payable



















Days payables outstanding



54.9

days



50.5

days



50.9

days





















Net cash provided by (used for) operating

 activities



$           35.6





$             11.4





$           38.6



Capital expenditures



$             6.1





$               5.2





$             8.5



Free Cash Flow 3



$           29.5





$               6.2





$           30.1



__________________________

1   

Additional Data: This data is provided to help investors understand financial and operational metrics that management uses to measure the Company's financial performance and identify trends affecting the business. These measures may not be comparable with or defined in the same manner as other companies. Components may not add due to rounding.

2 

March 31, 2024 figure excludes the impact of the acquisition of montratec.

3 

Free Cash Flow is a non-GAAP financial measure.  Free Cash Flow is defined as GAAP net cash provided by (used for) operating activities less capital expenditures included in the investing activities section of the consolidated statement of cash flows.  See the table above for the calculation of Free Cash Flow.

NON-GAAP FINANCIAL MEASURES

The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.

COLUMBUS McKINNON CORPORATION

Reconciliation of Gross Profit to Adjusted Gross Profit

($ in thousands)

 



Three Months Ended

March 31,



Year Ended

March 31,



2025



2024



2025



2024

Gross profit

$     79,810



$     94,315



$   325,680



$   374,838

Add back (deduct):















Business realignment costs





994



346

Hurricane Helene cost impact





171



Factory and warehouse consolidation costs

4,120



262



15,439



262

Monterrey, MX new factory start-up costs

3,058



2,552



9,906



2,987

Adjusted Gross Profit

$     86,988



$     97,129



$   352,190



$   378,433

















Net sales

$   246,889



$   265,504



$   963,027



$ 1,013,540

















Gross margin

32.3 %



35.5 %



33.8 %



37.0 %

Adjusted Gross Margin

35.2 %



36.6 %



36.6 %



37.3 %

Adjusted Gross Profit is defined as gross profit as reported, adjusted for certain items. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net sales. Adjusted Gross Profit and Adjusted Gross Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Gross Profit and Adjusted Gross Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Gross Profit and Adjusted Gross Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's and current year's gross profit and gross margin to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company's gross profit and gross margin to that of other companies.

COLUMBUS McKINNON CORPORATION

Reconciliation of Income from Operations to Adjusted Operating Income

($ in thousands)

 



Three Months

Ended March 31,



Year Ended

March 31,



2025



2024



2025



2024

Income from operations

$       4,931



$     25,437



$     54,573



$   107,148

Add back (deduct):















Acquisition deal and integration costs

11,014



3



11,014



3,211

Business realignment costs

399





2,517



1,867

Factory and warehouse consolidation costs

4,989



545



17,546



744

Headquarter relocation costs

51



175



373



2,059

Hurricane Helene cost impact





171



Mexico customs duty assessment

(433)





1,067



Customer bad debt1





1,299



Monterrey, MX new factory start-up costs

3,161



3,734



13,748



4,489

Cost of debt repricing



1,190





1,190

Adjusted Operating Income

$     24,112



$     31,084



$   102,308



$   120,708

















Net sales

$   246,889



$   265,504



$   963,027



$ 1,013,540

















Operating margin

2.0 %



9.6 %



5.7 %



10.6 %

Adjusted Operating Margin

9.8 %



11.7 %



10.6 %



11.9 %

Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January of 2025.

Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by net sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's and current year's income from operations to the historical periods' income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company's income from operations and operating margin to that of other companies.

COLUMBUS McKINNON CORPORATION

Reconciliation of Net Income and Diluted Earnings per Share to

Adjusted Net Income and Adjusted Earnings per Diluted Share

($ in thousands, except per share data)

 



Three Months

Ended March 31,



Year Ended

March 31,



2025



2024



2025



2024

Net income (loss)

$        (2,684)



$        11,809



$        (5,138)



$        46,625

Add back (deduct):















Amortization of intangibles

7,398



7,525



29,946



29,396

Acquisition deal and integration costs

11,014



3



11,014



3,211

Business realignment costs

399





2,517



1,867

Factory and warehouse consolidation costs

4,989



545



17,546



744

Headquarter relocation costs

51



175



373



2,059

Hurricane Helene cost impact





171



Mexico customs duty assessment

(433)





1,067



Customer bad debt1





1,299



Monterrey, MX new factory start-up costs

3,161



3,734



13,748



4,489

Cost of debt repricing



1,190





1,190

Non-cash pension settlement expense



385



23,634



4,984

Tax indemnification payment owed2



1,192





1,192

     Normalize tax rate3

(6,580)



(4,767)



(24,319)



(12,763)

Adjusted Net Income

$        17,315



$        21,791



$        71,858



$        82,994

















GAAP average diluted shares outstanding

28,615



29,129



28,738



29,026

Add back:















Effect of dilutive share-based awards

174





250



Adjusted Diluted Shares Outstanding

28,789



29,129



28,988



29,026

















GAAP EPS

$          (0.09)



$           0.41



$          (0.18)



$           1.61

















Adjusted EPS

$           0.60



$           0.75



$           2.48



$           2.86

1  

Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January of 2025.

2   

Represents tax indemnification payment owed to the former owner of STAHL for a tax refund received by the Company in the quarter ended March 31, 2024 for periods prior to the acquisition of STAHL by the Company.

3  

Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.

Adjusted Net Income and Adjusted EPS are defined as net income (loss) and GAAP EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Diluted Shares Outstanding is defined as GAAP average diluted shares outstanding adjusted for the effect of dilutive share-based awards. Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current periods' net income (loss), average diluted shares outstanding and GAAP EPS to the historical periods' net income (loss), average diluted shares outstanding and GAAP EPS, as well as facilitates a more meaningful comparison of the Company's net income (loss) and GAAP EPS to that of other companies. The Company believes that presenting Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company's strategy to grow through acquisitions as well as organically.

COLUMBUS McKINNON CORPORATION

Reconciliation of Net Income to Adjusted EBITDA

($ in thousands)

 



Three Months

Ended March 31,



Year Ended

March 31,



2025



2024



2025



2024

Net income (loss)

$     (2,684)



$     11,809



$     (5,138)



$     46,625

Add back (deduct):















Income tax (benefit) expense

(809)



2,497



(367)



14,902

Interest and debt expense

8,141



9,169



32,426



37,957

Investment (income) loss, net

(429)



(547)



(1,302)



(1,759)

Foreign currency exchange loss (gain), net

449



752



3,179



1,826

Other (income) expense, net

263



1,757



25,775



7,597

Depreciation and amortization expense

11,957



11,893



48,187



45,945

Acquisition deal and integration costs

11,014



3



11,014



3,211

Business realignment costs

399





2,517



1,867

Factory and warehouse consolidation costs

4,989



545



17,546



744

Headquarter relocation costs

51



175



373



2,059

Hurricane Helene cost impact





171



Mexico customs duty assessment

(433)





1,067



Customer bad debt1





1,299



Monterrey, MX new factory start-up costs

3,161



3,734



13,748



4,489

Cost of debt repricing



1,190





1,190

Adjusted EBITDA

$     36,069



$     42,977



$   150,495



$   166,653

















Net sales

$   246,889



$   265,504



$   963,027



$ 1,013,540

















Net income margin

(1.1) %



4.4 %



(0.5) %



4.6 %

Adjusted EBITDA Margin

14.6 %



16.2 %



15.6 %



16.4 %

1   

Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January of 2025.

Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company's financial statements.

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SOURCE Columbus McKinnon Corporation

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