Columbus McKinnon Shares Plummet 14.4% After Reporting Net Loss and Missing Earnings Expectations

Columbus McKinnon reported a net loss of $1.9 million, or 7 cents per share, for its fiscal first quarter, missing earnings per share expectations. The company's revenue of $235.9 million came in ahead of expectations, but the swing to a net loss weighed heavily on investor sentiment. The stock fell 14.4%. The acquisition of Kito Crosby for $2.7 billion is expected to be funded with debt and a perpetual convertible preferred equity investment from CD&R, raising concerns about the company's debt profile.

Columbus McKinnon Corporation (NASDAQ: CMCO) reported a net loss of $1.9 million, or 7 cents per share, for its fiscal first quarter, missing earnings per share expectations. The company's revenue of $235.9 million came in ahead of expectations, but the swing to a net loss weighed heavily on investor sentiment. The stock fell 14.4% [2].

The company's results were significantly impacted by several one-time and ongoing costs, including $8.1 million in expenses tied to its Kito Crosby acquisition, a $4.2 million negative impact from tariffs, and $2.5 million in business realignment costs. Even on an adjusted basis, earnings per share of $0.50 fell from $0.62 in the prior year [2].

Despite the challenges, Columbus McKinnon maintains a strong order momentum, with orders reaching $259 million, up 2% year-over-year. The company achieved a book-to-bill ratio of 1.1x and built a record backlog of $360 million, representing a 23% increase from the prior year [1].

The acquisition of Kito Crosby for $2.7 billion is expected to be funded with $2.6 billion in committed debt financing and a $0.8 billion perpetual convertible preferred equity investment from CD&R, raising concerns about the company's debt profile [2].

Columbus McKinnon continues to advance its pending acquisition of Kito Crosby, which is expected to close by late 2025. The company highlighted the strategic rationale for the acquisition, including enhanced scale and competitiveness, growth supported by industry megatrends, an attractive financial profile, and value creation through significant synergies [1].

To address tariff challenges, the company implemented additional price increases in the U.S. effective July 10, 2025. Management indicated that these increases are expected to benefit the second half of fiscal 2026, helping to offset the tariff-related headwinds experienced in the first half [1].

Despite the challenges in Q1, Columbus McKinnon reaffirmed its full-year guidance for fiscal 2026, expecting net sales and adjusted EPS to be flat to slightly up. This guidance excludes the impact of the pending Kito Crosby acquisition and reflects what is known about the current tariff policy environment [1].

References:
[1] https://www.investing.com/news/company-news/columbus-mckinnon-q1-fy26-slides-net-loss-amid-record-backlog-tariff-headwinds-93CH-4159541
[2] https://finance.yahoo.com/news/why-columbus-mckinnon-cmco-stock-174059740.html