Columbus McKinnon Corporation

What they do

Founded in 1875, the company designs, manufactures and markets hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems. Products serve mission-critical lifting, positioning and securing applications across manufacturing, transportation including EV and aerospace, energy, construction, food and beverage, e-commerce and warehousing. Prior to the Kito Crosby deal it had nearly 3,500 employees and 63 principal manufacturing, sales, distribution and warehouse facilities, with roughly 44-45% of revenue outside the U.S.

Revenue drivers

• Hoists and lifting products — Hoists, crane components, lifting and sling chain and forged attachments are the company's core lines, where it claims leading market positions in the U.S. and, in Europe, in manual hoists. Kito Crosby added precision engineered hoists, chains and accessories with a leading position in Japan and brands including Kito, Crosby, Harrington, Gunnebo Industries and Peerless.
• Precision conveyors and automation — Precision conveyor systems and digital power and motion control systems, built partly through the Dorner, Garvey and montratec acquisitions, target industrial automation, e-commerce and logistics applications.
• Actuators — The company reports a strong U.S. position in actuator products and leadership in Europe in linear actuators for heavy load, rail and niche custom applications.
• Geographic split — In Q1 FY27, U.S. sales were $292.7 million (55% of total) and non-U.S. sales $238.8 million (45%). For fiscal 2026 the 10-K cites approximately 44% of revenue from customers outside the U.S.

Recent performance

Q1 FY27 net sales were $531.5 million, up 125.3% year over year, driven by the Kito Crosby Acquisition, with legacy CMCO net sales growth of 12.7%. Orders were $568.1 million, up 120%, for a book-to-bill of 1.1x, which the company called record orders and sales. Gross margin fell 520 basis points to 27.5%, but adjusted gross margin rose 380 basis points to 38.1% and adjusted EBITDA margin rose 720 basis points to 21.0%. The quarter produced a GAAP net loss of $88.4 million, or $2.05 per diluted share, including $70.3 million of acquisition and integration expenses, versus adjusted net income of $30.5 million and adjusted EPS of $0.61. Full fiscal 2026 results included revenue of $1.19 billion and a net loss of $229.5 million.

Strategy

The company is integrating Kito Crosby, which closed February 3, 2026 for $2,811.9 million including $184.3 million of acquired cash, and expects to complete integration in fiscal 2027. Management cites synergy capture and margin expansion, and says it intends to drive organic growth, improve margins, deliver free cash flow and de-lever the balance sheet. It is building out its Columbus McKinnon Business System (CMBS) around market-led, customer-centric and operationally excellent principles, with initiatives to cut lead times, improve on-time delivery, reduce warranty costs and improve material and factory productivity. It also continues to invest in new products and channels and points to automation and emerging market expansion in Asia.

Risks

• Leverage and balance sheet risk — The company ended Q1 FY27 with a Credit Agreement net leverage ratio of 4.9x and $2.22 billion of long-term debt against $1.37 billion of shareholder equity, so deleveraging depends on cash generation.
• Integration and acquisition expense — Q1 FY27 GAAP results included $70.3 million of acquisition and integration expenses tied to Kito Crosby, and fiscal 2026 swung to a $229.5 million net loss, contributing to operating cash flow of negative $146.2 million.
• Cyclical end markets — The 10-K states end users in manufacturing, power generation, commercial construction, oil and gas, transportation, agriculture, logging and mining are sensitive to macro conditions, and that higher interest rates have reduced demand in the past.
• Raw material and tariff cost inflation — The company spent roughly $428.2 million on principal raw materials and components, or 51% of cost of products sold, in fiscal 2026, and says it is currently experiencing higher raw material costs and availability issues due to global inflation and tariffs, which it has offset with price increases.

Outlook

Management increased fiscal 2027 guidance and said a book-to-bill of 1.1x with strong order growth positions the company well for the second half of fiscal 2027. The CEO cited robust U.S. short-cycle demand and confidence in driving organic growth, margin improvement, free cash flow and deleveraging. Kito Crosby integration is described as on track with continued progress on synergy capture.