Columbus McKinnon 2026 Q1 Earnings Misses Targets as Net Income Declines 122%

Columbus McKinnon (CMCO) reported its fiscal 2026 Q1 earnings on Jul 30th, 2025. The company experienced a decrease in revenue and net income, missing market expectations. Despite challenges, CMCO reaffirmed its fiscal 2026 guidance, projecting net sales and adjusted EPS growth to be flat or slightly up year-over-year. The company’s outlook reflects ongoing tariff impacts and the pending Kito Crosby acquisition. CMCO remains committed to operational execution and cost management to navigate macroeconomic uncertainties. Analysts will watch for further developments regarding tariff mitigation and acquisition integration.

Revenue
Columbus McKinnon saw a slight decrease in total revenue in fiscal Q1 2026, amounting to $235.92 million, down 1.6% from $239.73 million in fiscal Q1 2025. The Industrial Products segment generated $83.20 million, while Crane Solutions contributed $95.17 million. The Engineered Products division recorded $21.66 million, and Precision Conveyor Products added $35.86 million. Miscellaneous categories accounted for $25,000, culminating in the overall revenue figure.

Earnings/Net Income
Columbus McKinnon reported a net loss of $1.90 million in fiscal Q1 2026, compared to a net income of $8.63 million in the same period a year ago, resulting in a negative EPS of $0.07 per share. This represents a substantial decline compared to the prior year's positive EPS of $0.30, indicating challenging financial performance.

Price Action
The stock price of Columbus McKinnon has plummeted 16.97% during the latest trading day, has tumbled 10.51% during the most recent full trading week, and has dropped 6.16% month-to-date.

Post-Earnings Price Action Review
The strategy of investing in Columbus McKinnon shares following a quarter-over-quarter revenue drop has proven ineffective over the last three years. This approach resulted in a cumulative return of -6.91%, significantly trailing the benchmark return of 86.38%. The strategy demonstrated a high-risk profile, with a Sharpe ratio of -0.06, despite a relatively low volatility rate of 26.75%. Although the maximum drawdown was zero, there was no significant upside potential. Investors who employed this strategy faced considerable risk without the prospect of substantial gains, highlighting the need for reassessment of investment approaches following earnings reports.

CEO Commentary
David J. Wilson, President, CEO & Director, stated that Columbus McKinnon delivered results in line with expectations, with orders up 2% year-over-year to $259 million, driven by project-related orders and strength in EMEA. He acknowledged challenges with short-cycle orders, which decreased by 4% due to surcharges and tariffs, but highlighted a 23% increase in backlog to $360 million as longer-cycle orders offset short-cycle softness. Wilson expressed optimism about industry trends such as nearshoring and infrastructure investments, emphasizing the company's focus on operational execution and cost management amid macroeconomic uncertainties.

Guidance
Columbus McKinnon reaffirms its guidance for fiscal 2026, targeting net sales growth to be flat to slightly up year-over-year and adjusted EPS growth also flat to slightly up year-over-year. The CEO noted that tariffs would negatively impact earnings in the first half, with an expected adjusted EPS impact of $0.20 to $0.30. The company aims for tariff cost neutrality by the second half of fiscal 2026 and anticipates achieving margin neutrality in fiscal 2027. CapEx is projected in the $20 million to $25 million range.

Additional News
In recent non-earnings news, Columbus McKinnon Corporation announced a definitive agreement to acquire Kito Crosby Ltd for $2.7 billion, an all-cash deal with funds managed by KKR & Co. Inc. The acquisition, expected to close by the end of the year, aims to achieve $70 million in annual net cost synergies within three years. Additionally, Columbus McKinnon declared a quarterly dividend of $0.07 per share, payable on August 18, 2025, to shareholders of record as of August 8, 2025. This acquisition and dividend declaration reflect the company’s strategic focus on growth and shareholder returns.