Columbus McKinnon Reports 10% Sales Growth in Q3 FY26

CHARLOTTE, N.C., Feb. 9, 2026 /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company"), a leading designer, manufacturer and marketer of intelligent motion solutions for material handling, today announced financial results for its fiscal year 2026 third quarter, which ended December 31, 2025.

Third Quarter 2026 Highlights (compared with prior-year period, except where otherwise noted)

"Our team delivered double-digit sales, order and EPS growth in the quarter, ahead of our expectations as we executed on commercial initiatives and continued to benefit from U.S. demand stabilization," said David J. Wilson, President and Chief Executive Officer. "While I am encouraged by our active, global funnel of opportunities, we remain cautious on the macroeconomic environment in EMEA where order conversion rates have remained slow."

"Having now closed on the acquisition of Kito Crosby, we are well positioned to deliver for our customers and shareholders as we begin executing on value creation initiatives," continued Wilson. "I have never been more excited about the opportunities that lie ahead for Columbus McKinnon. In combination with Kito Crosby, we will provide the market with a superior customer value proposition by bringing together the best of our collective talent and capabilities. Our new Executive Leadership Team brings together leaders with deep expertise across our brands and applications with a customer-centricity that will ensure business continuity while we remain laser-focused on synergy realization and debt reduction to unlock value for all stakeholders."

Third Quarter Fiscal 2026 Sales

($ in millions)

Q3 FY26

Q3 FY25

Change

% Change

Net sales

$ 258.7

$ 234.1

$ 24.5

10.5 %

U.S. sales 4

$ 147.2

$ 129.5

$ 17.7

13.7 %

% of total

57 %

55 %

Non-U.S. sales 4

$ 111.5

$ 104.6

$ 6.9

6.6 %

% of total

43 %

45 %

For the quarter, net sales increased $24.5 million, or 10.5% driven by $11.7 million of higher volume, $6.1 million of price improvement and $6.7 million of favorable currency translation. In the U.S., sales were up $17.7 million, or 13.7%, driven by $13.5 million of higher volume and $4.2 million of price improvement. Sales outside the U.S. increased $6.9 million, or 6.6%, driven by $6.7 million of favorable currency translation and $1.9 million of price improvement, partially offset by $1.7 million of lower volume.

Third Quarter Fiscal 2026 Operating Results

($ in millions, except per share figures)

Q3 FY26

Q3 FY25

Change

% Change

Gross profit

$ 89.2

$ 82.1

$ 7.1

8.6 %

Gross margin

34.5 %

35.1 %

(60) bps

Adjusted Gross Profit 1

$ 90.9

$ 86.2

$ 4.6

5.4 %

Adjusted Gross Margin 1

35.1 %

36.8 %

(170) bps

Income from operations

$ 16.2

$ 17.7

$ (1.5)

(8.6) %

Operating margin

6.3 %

7.6 %

(130) bps

Adjusted Operating Income 1

$ 24.5

$ 25.6

$ (1.0)

(4.1) %

Adjusted Operating Margin 1

9.5 %

10.9 %

(140) bps

Net income (loss)

$ 6.0

$ 4.0

$ 2.0

51.5 %

Net income (loss) margin

2.3 %

1.7 %

60 bps

Adjusted Net Income 1

$ 17.8

$ 16.3

$ 1.5

9.5 %

GAAP EPS

$ 0.21

$ 0.14

$ 0.07

50.0 %

Adjusted EPS 1,3

$ 0.62

$ 0.56

$ 0.06

10.7 %

Adjusted EBITDA 1,2

$ 39.8

$ 40.3

$ (0.5)

(1.2) %

Adjusted EBITDA Margin 1,2

15.4 %

17.2 %

(180) bps

Capital Allocation Priorities

The Company remains committed to allocating capital to pay down debt to deleverage its balance sheet in the near term while continuing its track record of a consistent dividend payment. Over time, the Company believes it will be positioned to utilize its expected significant free cash flow generation to advance its Intelligent Motion strategy across the fragmented marketplace.

Fiscal Year 2026 Guidance

Given the recently completed Kito Crosby acquisition and the pending divestiture of our U.S. power chain hoist and chain operations, the Company is withdrawing our Columbus McKinnon standalone fiscal year 2026 guidance previously presented as part of our second quarter fiscal 2026 earnings release due to a higher degree of uncertainty in expected results for the fourth quarter of fiscal 2026 resulting from the timing of the pending divestiture, regulatory limitations on information sharing with or from Kito Crosby prior to closing and the integration of our financial processes within Kito Crosby.

Consistent with prior years' convention, we will provide an updated financial outlook and issue financial guidance for fiscal 2027 in conjunction with our fourth quarter fiscal 2026 earnings release in late May of 2026.

Certain transaction-related expenses, purchase accounting adjustments and early integration costs will be incurred in the fourth quarter of fiscal 2026. The impact of these costs as well as higher interest expense are expected to be dilutive to GAAP earnings per share in the fourth quarter of fiscal 2026.

Following the closing of the transactions, the Company's primary allocation of capital is expected to be debt reduction. We expect significant cashflow generation from the combined business leading to a Net Leverage Ratio 5 below 4.0x by the end of fiscal 2028.

Teleconference and Webcast

Columbus McKinnon will host a conference call today at 5:00 PM Eastern Time to discuss the Company's financial results and strategy. The conference call, earnings release and earnings presentation will be accessible through live webcast on the Company's investor relations website at investors.cmco.com. A replay of the webcast will also be archived on the Company's investor relations website through February 16, 2026.

______________________

Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, and Free Cash Flow are non-GAAP financial measures. See accompanying discussion and reconciliation tables provided in this release for reconciliations of these non-GAAP financial measures to the closest corresponding GAAP financial measures.

In connection with the preparation of this release, the Company has used its updated definition of Adjusted EBITDA, which includes an addback of Company's stock-based compensation expense. This revised definition of Adjusted EBITDA was used to calculate Adjusted EBITDA set forth above and will be used by the Company on a go-forward basis for purposes of all future Adjusted EBITDA disclosures. This definitional change was driven by the Company's belief that adding back the expense associated with stock-based compensation for purposes of the computation of Adjusted EBITDA will provide the Company's investors with a better understanding of our underlying performance from period to period and enable them to better compare our performance against that of our peer companies, many of which also include an addback of stock-based compensation expense in computing Adjusted EBITDA.

Adjusted EPS excludes, among other adjustments, amortization of intangible assets. The Company believes this better represents its inherent earnings power and cash generation capability.

Components may not add due to rounding.

The Company has not reconciled the Net Leverage Ratio guidance to the most comparable GAAP financial measure outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide guidance for the comparable GAAP financial measure. Forward-looking guidance regarding Net Leverage Ratio is made in a manner consistent with previous filings with the Securities and Exchange Commission.

About Columbus McKinnon

Columbus McKinnon is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning, and securing materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations, and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how. Comprehensive information on Columbus McKinnon is available at www.cmco.com.

Safe Harbor Statement

This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "illustrative," "intend," "likely," "may," "opportunity," "plan," "possible," "potential," "predict," "project," "shall," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this document, including, but are not limited to, statements relating to: (i) our strategy, outlook and growth prospects, including the impact of certain transaction-related expenses, purchase accounting adjustments, early integration costs and higher interests expense on GAAP earnings per share for the fourth quarter of fiscal 2026; (ii) our ability to de-leverage the Company to a Net Leverage Ratio to below 4.0x by the end of fiscal 2028; (iii) our operational and financial targets and capital allocation priorities including our ability to generate significant free cash flow to fund these capital allocation priorities and our ability to advance our Intelligent Motion strategy; (iv) general economic trends and trends in our industry and markets; (v) expected timing for the closing of the divestiture of the Company's U.S. power chain hoist and chain operations; (vi) the benefits expected to be achieved from the Kito Crosby acquisition and the Company's ability to realize expected synergies; and (vii) the competitive environment in which we operate, are forward looking statements. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made. Columbus McKinnon undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

Contacts:

Gregory P. Rustowicz

Kristine Moser

EVP Finance and CFO

VP IR and Treasurer

Columbus McKinnon Corporation

716-689-5442

704-322-2488

[email protected]

Financial tables follow.

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - UNAUDITED

(In thousands, except per share and percentage data)

Three Months Ended

December 31,

2025

December 31,

2024

Change

Net sales

$ 258,655

$ 234,138

10.5 %

Cost of products sold

169,498

152,041

11.5 %

Gross profit

89,157

82,097

8.6 %

Gross profit margin

34.5 %

35.1 %

Selling expenses

28,777

27,348

5.2 %

% of net sales

11.1 %

11.7 %

General and administrative expenses

32,148

24,233

32.7 %

% of net sales

12.4 %

10.3 %

Research and development expenses

4,442

5,325

(16.6) %

% of net sales

1.7 %

2.3 %

Amortization of intangibles

7,622

7,501

1.6 %

Income from operations

16,168

17,690

(8.6) %

Operating margin

6.3 %

7.6 %

Interest and debt expense

8,312

7,698

8.0 %

Investment (income) loss

(395)

(54)

631.5 %

Foreign currency exchange (gain) loss

492

3,128

(84.3) %

Other (income) expense, net

(20)

1,029

Income (loss) before income tax expense (benefit)

7,779

5,889

32.1 %

Income tax expense (benefit)

1,781

1,929

(7.7) %

Net income (loss)

$ 5,998

$ 3,960

51.5 %

Average basic shares outstanding

28,729

28,631

0.3 %

Basic income (loss) per share

$ 0.21

$ 0.14

50.0 %

Average diluted shares outstanding

28,941

28,888

0.2 %

Diluted income (loss) per share

$ 0.21

$ 0.14

50.0 %

Dividends declared per common share

$ 0.07

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - UNAUDITED

(In thousands, except per share and percentage data)

Nine Months Ended

December 31,

2025

December 31,

2024

Change

Net sales

$ 755,622

$ 716,138

5.5 %

Cost of products sold

499,083

470,268

6.1 %

Gross profit

256,539

245,870

4.3 %

Gross profit margin

34.0 %

34.3 %

Selling expenses

86,430

82,044

5.3 %

% of net sales

11.4 %

11.5 %

General and administrative expenses

99,277

74,043

34.1 %

% of net sales

13.1 %

10.3 %

Research and development expenses

14,044

17,593

(20.2) %

% of net sales

1.9 %

2.5 %

Amortization of intangibles

22,940

22,548

1.7 %

Income from operations

33,848

49,642

(31.8) %

Operating margin

4.5 %

6.9 %

Interest and debt expense

25,757

24,285

6.1 %

Investment (income) loss

(1,965)

(873)

125.1 %

Foreign currency exchange (gain) loss

904

2,730

(66.9) %

Other (income) expense, net

(138)

25,512

Income (loss) before income tax expense (benefit)

9,290

(2,012)

Income tax expense (benefit)

595

442

34.6 %

Net income (loss)

$ 8,695

$ (2,454)

Average basic shares outstanding

28,704

28,778

(0.3) %

Basic income (loss) per share

$ 0.30

$ (0.09)

Average diluted shares outstanding

28,906

28,778

0.4 %

Diluted income (loss) per share

$ 0.30

$ (0.09)

Dividends declared per common share

$ 0.14

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

December 31,

2025

March 31,

2025

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$ 35,484

$ 53,683

Trade accounts receivable

174,326

165,481

Inventories

222,377

198,598

Prepaid expenses and other

49,726

48,007

Total current assets

481,913

465,769

Property, plant, and equipment, net

102,384

106,164

Goodwill

731,546

710,807

Other intangibles, net

345,746

356,562

Marketable securities

10,465

10,112

Deferred taxes on income

10,158

2,904

Other assets

80,308

86,470

Total assets

$ 1,762,520

$ 1,738,788

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Trade accounts payable

$ 90,822

$ 93,273

Accrued liabilities

121,475

113,907

Current portion of long-term debt and finance lease obligations

50,829

50,739

Total current liabilities

263,126

257,919

Term loan, AR securitization facility and finance lease obligations

399,439

420,236

Other non current liabilities

177,104

178,538

Total liabilities

$ 839,669

$ 856,693

Shareholders' equity:

Common stock

287

286

Treasury stock

(11,000)

Additional paid in capital

538,732

531,750

Retained earnings

386,829

382,160

Accumulated other comprehensive income (loss)

8,003

(21,101)

Total shareholders' equity

$ 922,851

$ 882,095

Total liabilities and shareholders' equity

$ 1,762,520

$ 1,738,788

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows - UNAUDITED

(In thousands)

Nine Months Ended

December 31,

2025

December 31,

2024

Operating activities:

Net income (loss)

$ 8,695

$ (2,454)

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:

Depreciation and amortization

36,620

36,230

Deferred income taxes and related valuation allowance

(11,472)

(15,089)

Net loss (gain) on sale of investments and other

(1,503)

(617)

Non-cash pension settlement

—

23,634

Stock-based compensation

7,779

6,677

Amortization of deferred financing costs

1,666

1,865

Impairment of operating lease

—

3,268

Loss (gain) on hedging instruments

1,360

(321)

(Gain) loss on sales, disposals, and impairments of fixed assets

(913)

394

Non-cash lease expense

7,321

7,657

Changes in operating assets and liabilities:

Trade accounts receivable

(3,480)

10,255

Inventories

(15,997)

(18,894)

Prepaid expenses and other

(403)

(14,565)

Other assets

2,603

486

Trade accounts payable

(3,616)

(8,061)

Accrued liabilities

810

(15,240)

Non current liabilities

(8,875)

(5,225)

Net cash provided by (used for) operating activities

20,595

10,000

Investing activities:

Proceeds from sales of marketable securities

2,781

4,301

Purchases of marketable securities

(2,521)

(3,257)

Capital expenditures

(10,347)

(15,266)

Proceeds from sale of building, net of transaction costs

3,257

—

Net cash provided by (used for) investing activities

(6,830)

(14,222)

Financing activities:

Proceeds from the issuance of common stock

—

364

Purchases of treasury stock

—

(9,945)

Borrowings / (Repayments) of debt

(21,821)

(45,495)

Payment to former owners of montratec

—

(6,711)

Fees paid for debt repricing

(577)

(169)

Cash inflows from hedging activities

17,419

17,753

Cash outflows from hedging activities

(18,720)

(17,360)

Payment of dividends

(6,025)

(6,039)

Other

(796)

(1,897)

Net cash provided by (used for) financing activities

(30,520)

(69,499)

Effect of exchange rate changes on cash and cash equivalents

(1,444)

819

Net change in cash and cash equivalents

(18,199)

(72,902)

Cash, cash equivalents, and restricted cash at beginning of year

$ 53,933

$ 114,376

Cash, cash equivalents, and restricted cash at end of period

$ 35,734

$ 41,474

COLUMBUS McKINNON CORPORATION

Q3 FY 2026 Net Sales Bridge

Quarter

Year To Date

($ in millions)

$ Change

% Change

$ Change

% Change

Fiscal 2025 Net Sales

$ 234.1

$ 716.1

Pricing

6.1

2.6 %

13.5

1.9 %

Volume

11.7

5.0 %

11.4

1.6 %

Foreign currency translation

6.7

2.9 %

14.6

2.0 %

Total change 1

$ 24.6

10.5 %

$ 39.5

5.5 %

Fiscal 2026 Net Sales

$ 258.7

$ 755.6

COLUMBUS McKINNON CORPORATION

Q3 FY 2026 Gross Profit Bridge

($ in millions)

Quarter

Year To Date

Fiscal 2025 Gross Profit

$ 82.1

$ 245.9

Price, net of manufacturing costs changes (incl. inflation)

0.3

(6.4)

Product liability

0.3

Monterrey, MX new factory start-up costs

1.6

1.9

Factory and warehouse consolidation costs

0.4

10.5

Sales volume and mix

1.7

(0.4)

Other

0.5

(0.4)

Foreign currency translation

2.4

5.2

Total change 1

7.1

10.6

Fiscal 2026 Gross Profit

$ 89.2

$ 256.5

U.S. Shipping Days by Quarter

Total

FY26

249

FY25

251

______________________

1 Components may not add due to rounding.

COLUMBUS McKINNON CORPORATION

Additional Data 1

(Unaudited)

Period Ended

December

31, 2025

September

30, 2025

March 31,

2025

December

31, 2024

($ in millions)

Backlog

$ 341.6

$ 351.6

$ 322.5

$ 296.5

Long-term backlog

Expected to ship beyond 3 months

$ 209.8

$ 212.4

$ 190.3

$ 166.1

Long-term backlog as % of total backlog

61.4

60.4

59.0

56.0

Debt to total capitalization percentage

32.8

33.4

34.8

35.8

Debt, net of cash, to net total capitalization

31.0

32.0

32.1

33.8

Working capital as a % of sales

23.4

24.3

21.3

23.7

Three Months Ended

December

31, 2025

September

30, 2025

March 31,

2025

December

31, 2024

($ in millions)

Trade accounts receivable

Days sales outstanding

61.3

days

62.5

days

61.0

days

61.0

days

Inventory turns per year

(based on cost of products sold)

3.0

turns

3.1

turns

3.4

turns

3.0

turns

Days' inventory

121.7

days

117.7

days

107.4

days

121.7

days

Trade accounts payable

Days payables outstanding

56.2

days

58.1

days

54.9

days

50.5

days

Net cash provided by (used for) operating

activities

$ 20.3

$ 18.4

$ 35.6

$ 11.4

Capital expenditures

$ 3.8

$ 3.3

$ 6.1

$ 5.2

Free Cash Flow 2

$ 16.5

$ 15.1

$ 29.5

$ 6.2

______________________

Additional Data: This data is provided to help investors understand financial and operational metrics that management uses to measure the Company's financial performance and identify trends affecting the business. These measures may not be comparable with or defined in the same manner as other companies. Components may not add due to rounding.

Free Cash Flow is a non-GAAP financial measure. Free Cash Flow is defined as GAAP net cash provided by (used for) operating activities less capital expenditures included in the investing activities section of the consolidated statement of cash flows. See the table above for the calculation of Free Cash Flow.

NON-GAAP FINANCIAL MEASURES

The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.

COLUMBUS McKINNON CORPORATION

Reconciliation of Gross Profit to Adjusted Gross Profit

($ in thousands)

Three Months Ended

Nine Months Ended

December

31, 2025

December

31, 2024

December

31, 2025

December

31, 2024

Gross profit

$ 89,157

$ 82,097

$ 256,539

$ 245,870

Add back (deduct):

Business realignment costs

526

1,516

994

Acquisition integration costs

—

Hurricane Helene cost impact

—

171

Factory and warehouse consolidation costs

147

556

855

11,319

Monterrey, MX new factory start-up costs

1,483

3,038

4,914

6,848

Adjusted Gross Profit

$ 90,853

$ 86,217

$ 263,892

$ 265,202

Net sales

$ 258,655

$ 234,138

$ 755,622

$ 716,138

Gross margin

34.5 %

35.1 %

34.0 %

34.3 %

Adjusted Gross Margin

35.1 %

36.8 %

34.9 %

37.0 %

Adjusted Gross Profit is defined as gross profit as reported, adjusted for certain items. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net sales. Adjusted Gross Profit and Adjusted Gross Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Gross Profit and Adjusted Gross Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Gross Profit and Adjusted Gross Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's gross profit and gross margin to the historical periods' gross profit, as well as facilitates a more meaningful comparison of the Company's gross profit and gross margin to that of other companies.

COLUMBUS McKINNON CORPORATION

Reconciliation of Income from Operations to Adjusted Operating Income

($ in thousands)

Three Months Ended

Nine Months Ended

December

31, 2025

December

31, 2024

December

31, 2025

December

31, 2024

Income from operations

$ 16,168

$ 17,690

$ 33,848

$ 49,642

Add back (deduct):

Acquisition deal and integration costs

6,342

—

24,441

—

Business realignment costs

241

987

3,897

2,118

Factory and warehouse consolidation costs

147

653

927

12,557

Headquarter relocation costs

145

175

216

322

Hurricane Helene cost impact

—

171

Mexico customs duty assessment

—

1,500

—

1,500

Customer bad debt 1

—

1,299

—

1,299

Monterrey, MX new factory start-up costs

1,483

3,270

4,914

10,587

Adjusted Operating Income

$ 24,526

$ 25,574

$ 68,243

$ 78,196

Net sales

$ 258,655

$ 234,138

$ 755,622

$ 716,138

Operating margin

6.3 %

7.6 %

4.5 %

6.9 %

Adjusted Operating Margin

9.5 %

10.9 %

9.0 %

10.9 %

Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January 2025.

Adjusted Operating Income is defined as income from operations as reported, adjusted for certain items. Adjusted Operating Margin is defined as Adjusted Operating Income divided by net sales. Adjusted Operating Income and Adjusted Operating Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Operating Income and Adjusted Operating Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Operating Income and Adjusted Operating Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's income from operations to the historical periods' income from operations and operating margin, as well as facilitates a more meaningful comparison of the Company's income from operations and operating margin to that of other companies.

COLUMBUS McKINNON CORPORATION

Reconciliation of Net Income and Diluted Earnings per Share to

Adjusted Net Income and Adjusted Earnings per Share

($ in thousands, except per share data)

Three Months Ended

Nine Months Ended

December

31, 2025

December

31, 2024

December

31, 2025

December

31, 2024

Net income (loss)

$ 5,998

$ 3,960

$ 8,695

$ (2,454)

Add back (deduct):

Amortization of intangibles

7,622

7,501

22,940

22,548

Acquisition deal and integration costs

6,342

—

24,441

—

Business realignment costs

241

987

3,897

2,118

Factory and warehouse consolidation costs

147

653

927

12,557

Headquarter relocation costs

145

175

216

322

Hurricane Helene cost impact

—

171

Mexico customs duty assessment

—

1,500

—

1,500

Customer bad debt 1

—

1,299

—

1,299

Monterrey, MX new factory start-up costs

1,483

3,270

4,914

10,587

Non-cash pension settlement expense

—

433

—

23,634

Normalize tax rate 2

(4,159)

(3,498)

(16,061)

(17,739)

Adjusted Net Income

$ 17,819

$ 16,280

$ 49,969

$ 54,543

GAAP average diluted shares outstanding

28,941

28,888

28,906

28,778

Add back:

Effect of dilutive share-based awards

—

268

Adjusted Diluted Shares Outstanding

$ 28,941

$ 28,888

$ 28,906

$ 29,046

GAAP EPS

$ 0.21

$ 0.14

$ 0.30

$ (0.09)

Adjusted EPS

$ 0.62

$ 0.56

$ 1.73

$ 1.88

Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January 2025.

Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.

Adjusted Net Income is defined as net income (loss) and GAAP EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Diluted Shares Outstanding is defined as average diluted shares outstanding adjusted for the effect of dilutive share-based awards. Adjusted EPS is defined as Adjusted Net Income per Adjusted Diluted Shares Outstanding. Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of current periods' net income (loss), average diluted shares outstanding and GAAP EPS to the historical periods' net income (loss), average diluted shares outstanding and GAAP EPS, as well as facilitates a more meaningful comparison of the Company's net income (loss) and GAAP EPS to that of other companies. The Company believes that presenting Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company's strategy to grow through acquisitions as well as organically.

COLUMBUS McKINNON CORPORATION

Reconciliation of Net Income to Adjusted EBITDA 1

($ in thousands)

Three Months Ended

Nine Months Ended

December

31, 2025

December

31, 2024

December

31, 2025

December

31, 2024

Net income (loss)

$ 5,998

$ 3,960

$ 8,695

$ (2,454)

Add back (deduct):

Income tax expense (benefit)

1,781

1,929

595

442

Interest and debt expense

8,312

7,698

25,757

24,285

Investment (income) loss

(395)

(54)

(1,965)

(873)

Foreign currency exchange (gain) loss

492

3,128

904

2,730

Other (income) expense, net

(20)

1,029

(138)

25,512

Stock-based compensation 1

3,153

2,502

7,779

6,677

Depreciation and amortization expense

12,135

12,202

36,620

36,230

Acquisition deal and integration costs

6,342

—

24,441

—

Business realignment costs

241

987

3,897

2,118

Factory and warehouse consolidation costs

147

653

927

12,557

Headquarter relocation costs

145

175

216

322

Hurricane Helene cost impact

—

171

Mexico customs duty assessment

—

1,500

—

1,500

Customer bad debt 2

—

1,299

—

1,299

Monterrey, MX new factory start-up costs

1,483

3,270

4,914

10,587

Adjusted EBITDA 1

$ 39,814

$ 40,278

$ 112,642

$ 121,103

Net sales

$ 258,655

$ 234,138

$ 755,622

$ 716,138

Net income margin

2.3 %

1.7 %

1.2 %

(0.3) %

Adjusted EBITDA Margin 1

15.4 %

17.2 %

14.9 %

16.9 %

In connection with the preparation of this release, the Company has used its updated definition of Adjusted EBITDA, which includes an addback of Company's stock-based compensation expense. This revised definition of Adjusted EBITDA was used to calculate Adjusted EBITDA set forth above, both for current periods and recast historical periods, and will be used by the Company on a go-forward basis for purposes of all future Adjusted EBITDA disclosures. This definitional change was driven by the Company's belief that adding back the expense associated with stock-based compensation for purposes of the computation of Adjusted EBITDA will provide the Company's investors with a better understanding of our underlying performance from period to period and enable them to better compare our performance against that of our peer companies, many of which also include an addback of stock-based compensation expense in computing Adjusted EBITDA.

Customer bad debt represents a reserve of $1,299,000 against an accounts receivable balance for a customer who declared bankruptcy in January 2025.

Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, amortization, and other adjustments, including stock-based compensation. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company's financial statements.

SOURCE Columbus McKinnon Corporation