Q3 2026 Columbus McKinnon Corp Earnings Call Transcript
Key Points
- Columbus McKinnon Corp (CMCO) successfully closed the Kito Crosby acquisition, which is expected to be transformative and enhance their value proposition.
- The company reported double-digit growth in sales, orders, EPS, and backlog year over year, indicating strong financial performance.
- Adjusted EBITDA was $40 million with a margin of 15.4%, reflecting effective tariff mitigation actions.
- The US market showed robust growth with a 15% increase in orders, driven by strength in lifting, automation, and precision conveyance.
- The company has a strong backlog, up 15% year over year to $342 million, positioning them well for future growth.
- The company experienced a contraction in adjusted gross margin by 170 basis points year over year due to unfavorable product mix and tariff impacts.
- There is ongoing uncertainty in the EMEA region, with slower order conversion expected due to a challenging demand environment.
- The integration of Kito Crosby is expected to incur significant transaction and deal-related costs, impacting free cash flow negatively.
- Higher interest expenses related to the acquisition financing are expected to be dilutive to GAAP earnings per share in the fourth quarter and for the full fiscal year of 2026.
- The company withdrew its prior guidance for fiscal year 2026 due to the acquisition and pending divestiture, creating uncertainty about future performance expectations.
Good afternoon, and welcome to Columbus McKinnon's third quarter-fiscal 2026 earnings conference call. My name is Constantine and I will be your conference operator today. As a reminder, this call is being recorded.
And I would now like to turn the conference over to Kristy Moser, Vice President of Investor Relations and Treasurer.
Thank you, and welcome, everyone, to our call. On today's call, we will be covering our third-quarter fiscal 2026 financial and operational results. On the call with me today are David Wilson, our President and Chief Executive Officer; and Greg Rustowicz, our Chief Financial Officer. In a moment, David and Greg will walk you through our financial and operational performance for the quarter. The earnings release and presentation to supplement today's call are available for download on our Investor Relations website at investors.cmco.com.
Before we begin our remarks, please let me remind you that we have our safe harbor statement on slide 2.
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