Columbus McKinnon's Q4 2025: Examining Key Contradictions in Tariff Strategies, Sales Trends, and Market Performance

Tariff mitigation strategy, short-cycle sales improvement, short-cycle business performance, EMEA market conditions, strength in precision conveyance orders are the key contradictions discussed in Columbus McKinnon's latest 2025Q4 earnings call.



Record Orders and Precision Conveyance Growth:
- Columbus McKinnon Corporation reported record orders, increasing 4% versus the prior year on a constant currency basis, driven primarily by 8% growth in project-related orders, especially in precision conveyance.
- This growth is attributed to strong demand in various end markets like battery production, life sciences, e-commerce, and aerospace, as well as potential benefits from industries impacted by tariffs and increased US Defense orders.

Tariff Impacts and Mitigation Strategy:
- The company anticipates tariffs to be a headwind to margin and adjusted EPS in the first half of fiscal 2026, with an unmitigated EBITDA impact of approximately $40 million.
- Mitigation strategies include adjusting supply chains, implementing pricing increases and surcharges, and evaluating additional cost-saving measures, aiming to achieve tariff cost neutrality by the second half of fiscal 2026 and margin neutrality in fiscal 2027.

Short-Cycle Sales Dynamics and Demand Funnel:
- Short-cycle sales remained flat year-over-year, but improved significantly compared to Q3, with orders up year-over-year through mid-May.
- The company expects short-cycle orders to stabilize over time, influenced by policy uncertainties and evolving macroeconomic conditions, while attractive opportunities from megatrends like near-shoring and infrastructure investments are anticipated to emerge.

Backlog Strength and Project-Based Growth:
- Columbus McKinnon experienced a 15% increase in backlog to $322.5 million, reflecting strong project-related orders, particularly in precision conveyance.
- This increase is driven by a higher mix of longer-cycle project-related business, positioning the company well for fiscal 2026 despite the near-term challenges in short-cycle orders.