Columbus McKinnon 2025 Q4 Earnings Misses Targets as Net Income Drops 122.7%

Columbus McKinnon (CMCO) reported its fiscal 2025 Q4 earnings on May 28th, 2025. Columbus McKinnon missed expectations in its fiscal 2025 Q4 results, with revenue and net income both declining from the previous year. The company's guidance for fiscal 2026 is projected to be flat to slightly up in terms of net sales and adjusted EPS. Despite the challenging quarter, the company remains optimistic about its future, fueled by strong order momentum and backlog. Management aims to achieve gross profit dollar neutrality on tariffs by the second half of fiscal 2026.

Revenue

Columbus McKinnon reported a decrease in total revenue by 7.0%, totaling $246.89 million in 2025 Q4, compared to $265.50 million in the same quarter of the previous year.

Earnings/Net Income

Columbus McKinnon swung to a net loss of $0.09 per share in 2025 Q4 from a profit of $0.41 per share in 2024 Q4, marking a notable deterioration. The company recorded a net loss of $-2.68 million, down from a net income of $11.81 million in the prior year, indicating a weak EPS performance.

Price Action

The stock price of Columbus McKinnon plummeted 17.43% during the latest trading day, fell 11.16% during the most recent full trading week, and rose 5.09% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Columbus McKinnon stock when revenue beats expectations and holding for 30 days resulted in disappointing performance, yielding a return of -52.46%, which fell significantly short of the benchmark return of 86.09%. With a Sharpe ratio of -0.34 and a maximum drawdown of -79.91%, the strategy exemplified high risk, underscoring the necessity for improved risk management or a reevaluation of the strategy itself. The poor performance highlighted the volatile nature of investing based on earnings surprises and the need for investors to consider broader market conditions and company fundamentals.

CEO Commentary

David Wilson, President and Chief Executive Officer, remarked on Columbus McKinnon's fiscal year performance, stating, "we delivered record orders, which increased 4% versus prior year on a constant currency basis," driven by growth in project-related orders and precision conveyance. He acknowledged challenges from short-cycle orders, which were flat due to policy uncertainty and inventory reductions. Wilson emphasized the company's commitment to operational excellence, noting improvements in safety and customer experience. He expressed optimism for fiscal '26, citing strong order momentum and backlog, while remaining cautious about macroeconomic uncertainties and tariff impacts.

Guidance

For fiscal '26, management expects net sales growth to be flat to slightly up year-over-year and adjusted EPS growth to also be flat to slightly up. The guidance reflects a $0.20 to $0.30 headwind to adjusted EPS in the first half due to tariffs, with a targeted EBITDA impact of approximately $40 million. The company aims for gross profit dollar neutrality on tariffs by the second half of fiscal '26, while anticipating margin neutrality will occur in fiscal '27.

Additional News

Columbus McKinnon has announced a definitive agreement to acquire Kito Crosby in an all-cash transaction valued at $2.7 billion, with the deal expected to close later this year. The acquisition is anticipated to enhance Columbus McKinnon's position in material handling solutions by expanding its presence in key verticals and geographies. The transaction is projected to generate $70 million in annual net cost synergies, improving Adjusted EBITDA margins to over 23%. The merger will be funded by $2.6 billion in debt financing and an $0.8 billion perpetual convertible preferred equity investment from CD&R. Additionally, Columbus McKinnon plans to continue its track record of consistent dividend payment while prioritizing debt repayment to deleverage its balance sheet.