Columbus McKinnon Corp (STU:VC3)
€ 13.2 +0.40 (+3.12%) Market Cap: 382.71 Mil Enterprise Value: 799.15 Mil PE Ratio: 0 PB Ratio: 0.51 GF Score: 51/100

Q3 2025 Columbus McKinnon Corp Earnings Call Transcript

Feb 10, 2025 / 10:00PM GMT
Release Date Price: €34.2 (+3.64%)

Key Points

Positve
  • Columbus McKinnon Corp (CMCO) announced a transformational acquisition of Kito Crosby, expected to enhance scale and market position.
  • The acquisition is projected to deliver $70 million in net cost synergies by the end of year three.
  • The combined entity is expected to generate over $200 million in free cash flow annually, facilitating significant debt reduction.
  • The acquisition is anticipated to be accretive to adjusted earnings per share in the first year on a pro forma basis.
  • The combination is expected to result in a top-tier financial profile with a pro forma adjusted EBITDA margin of 23%.
Negative
  • Columbus McKinnon Corp (CMCO) reported an 8% decrease in net sales for the third quarter compared to the prior year.
  • Short-cycle sales decreased by 9%, largely due to US policy uncertainty and economic softness in Europe.
  • The company experienced a $3.1 million impact from factory closure activities and ramp-up costs in Monterrey, Mexico.
  • There was a $2 million increase in product liability expenses compared to the prior year.
  • The company's net leverage ratio increased to 3 times, with expectations to remain at this level by the end of fiscal '25.
Operator

Good afternoon, ladies and gentlemen, and welcome to the Columbus McKinnon Corporation third quarter 2025 earnings conference call. (Operator Instructions) This call is being recorded on Monday, February 10, 2025.

And I would now like to turn the conference over to Ms. Kristine Moser. Thank you. Please go ahead.

Kristine Moser
Columbus McKinnon Corp - Vice President - Investor Relations, Treasurer

Thank you, and welcome, everyone, to our call. On today's call, we'll be covering both our third quarter fiscal 2025 financial results as well as the recently announced combination of Kito Crosby with Columbus McKinnon. This is an exciting evolution in our strategic journey that combines two complementary businesses with scale advantages and strong value creation for all of our stakeholders.

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, Dave and Greg will walk you through our financial and operating performance for the quarter before sharing more

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