Columbus McKinnon Reports 8% Sales Growth in Q2 FY26 and Reaffirms Guidance

CHARLOTTE, N.C., Oct. 30, 2025 /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 second quarter, which ended September 30, 2025.

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

"Our team delivered a solid second quarter as the U.S. short-cycle market recovered and we executed on our record backlog," said David J. Wilson, President and Chief Executive Officer. "Our funnel of quotation activity remains healthy, driven by attractive global opportunities and an improving demand environment in the United States. While the funnel of activity in EMEA remains attractive, order conversion rates there have slowed recently given a weaker macroeconomic sentiment."

"We are pleased with our tariff mitigation actions to date, which delivered a lower impact in the first half than we previously expected. We continue to anticipate an approximately $10 million tariff-related impact for the full year and that we will absorb the remaining impact in our third quarter. We remain focused on our mitigation actions and expect to achieve tariff cost neutrality by the end of the current fiscal year," continued Wilson. "Additionally, we are advancing our integration readiness and synergy achievement plans ahead of the pending acquisition of Kito Crosby. Our team continues to prepare for the closing of the acquisition as quickly as the regulatory process will allow."

Second Quarter Fiscal 2026 Sales

($ in millions)

Q2 FY26

Q2 FY25

Change

% Change

Net sales

$ 261.0

$ 242.3

$ 18.7

7.7 %

U.S. sales

$ 147.5

$ 132.3

$ 15.2

11.5 %

% of total

57 %

55 %

Non-U.S. sales

$ 113.5

$ 110.0

$ 3.5

3.2 %

% of total

43 %

45 %

For the quarter, net sales increased $18.7 million, or 7.7% driven by $9.0 million of higher volume supported by a recovery in short-cycle demand, $4.9 million of price improvement and $4.8 million of favorable currency translation. In the U.S., sales were up $15.2 million, or 11.5% driven by $11.7 million of higher volume and $3.5 million of price improvement. Sales outside the U.S. increased $3.5 million, or 3.2% driven by $4.8 million of favorable currency translation and $1.4 million of price improvement, partially offset by $2.7 million of lower volume.

Second Quarter Fiscal 2026 Operating Results

($ in millions, except per share figures)

Q2 FY26

Q2 FY25

Change

% Change

Gross profit

$ 90.2

$ 74.7

$ 15.4

20.6 %

Gross margin

34.5 %

30.9 %

360 bps

Adjusted Gross Profit 1

$ 92.1

$ 87.9

$ 4.2

4.7 %

Adjusted Gross Margin 1

35.3 %

36.3 %

(100) bps

Income from operations

$ 12.2

$ 10.8

$ 1.4

12.8 %

Operating margin

4.7 %

4.5 %

20 bps

Adjusted Operating Income 1

$ 25.2

$ 27.0

$ (1.7)

(6.5) %

Adjusted Operating Margin 1

9.7 %

11.1 %

(140) bps

Net income (loss)

$ 4.6

$ (15.0)

$ 19.6

Net income (loss) margin

1.8 %

(6.2) %

800 bps

GAAP EPS

$ 0.16

$ (0.52)

$ 0.68

Adjusted EPS 1,2

$ 0.62

$ 0.70

$ (0.08)

(11.4) %

Adjusted EBITDA 1

$ 37.4

$ 39.2

$ (1.7)

(4.4) %

Adjusted EBITDA Margin 1

14.3 %

16.2 %

(190) 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

The Company is increasing its outlook for net sales and reaffirming guidance for Adjusted EPS 1 in fiscal 2026. The Company's guidance does not include the impact of the pending Kito Crosby acquisition, which is now expected to close by the end of the fiscal year. Additionally, the guidance reflects the current tariff environment as of the date of this release, which has remained volatile to date and may impact future supply chain costs and product availability. The guidance assumes tariff cost neutrality by the end of fiscal 2026 benefiting from price increases, tariff surcharges, and supply chain adjustments.

Metric

FY26

Net sales

Up low-to-mid single digits

Adjusted EPS 3

Flat to slightly up

Fiscal 2026 guidance assumes approximately $35 million of interest expense, $30 million of amortization, an effective tax rate of 25% and 29.0 million diluted average shares outstanding.

Teleconference and Webcast

Columbus McKinnon will host a conference call today at 10:00 AM 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 November 6, 2025.

Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS 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.

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

The Company has not reconciled the Adjusted EPS 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 Adjusted EPS is made in a manner consistent with the relevant definitions and assumptions noted herein.

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 our fiscal year 2026 guidance as well as the associated assumed inputs for our fiscal 2026 guidance regarding interest expense, amortization, effective tax rate and diluted average shares outstanding and our ability to achieve tariff cost neutrality in fiscal 2026 and the expected amount of tariff-related impact to fiscal 2026 results; (ii) 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; (iii) general economic trends and trends in our industry and markets; (iv) expected timing for the closing of the Kito Crosby acquisition; and (v) 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

greg.rustowicz@cmco.com

kristy.moser@cmco.com

Financial tables follow.

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - UNAUDITED

(In thousands, except per share and percentage data)

Three Months Ended

September 30,

2025

September 30,

2024

Change

Net sales

$ 261,047

$ 242,274

7.7 %

Cost of products sold

170,887

167,531

2.0 %

Gross profit

90,160

74,743

20.6 %

Gross profit margin

34.5 %

30.9 %

Selling expenses

29,122

26,926

8.2 %

% of net sales

11.2 %

11.1 %

General and administrative expenses

36,386

23,363

55.7 %

% of net sales

13.9 %

9.6 %

Research and development expenses

4,781

6,102

(21.6) %

% of net sales

1.8 %

2.5 %

Amortization of intangibles

7,683

7,547

1.8 %

Income from operations

12,188

10,805

12.8 %

Operating margin

4.7 %

4.5 %

Interest and debt expense

8,747

8,352

4.7 %

Investment (income) loss

(521)

(610)

(14.6) %

Foreign currency exchange (gain) loss

754

(792)

Other (income) expense, net

23,806

(99.8) %

Income (loss) before income tax expense (benefit)

3,149

(19,951)

Income tax expense (benefit)

(1,446)

(4,908)

(70.5) %

Net income (loss)

$ 4,595

$ (15,043)

Average basic shares outstanding

28,726

28,869

(0.5) %

Basic income (loss) per share

$ 0.16

$ (0.52)

Average diluted shares outstanding

28,874

28,869

— %

Diluted income (loss) per share

$ 0.16

$ (0.52)

Dividends declared per common share

$ 0.07

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Income Statements - UNAUDITED

(In thousands, except per share and percentage data)

Six Months Ended

September 30,

2025

September 30,

2024

Change

Net sales

$ 496,967

$ 482,000

3.1 %

Cost of products sold

329,585

318,227

3.6 %

Gross profit

167,382

163,773

2.2 %

Gross profit margin

33.7 %

34.0 %

Selling expenses

57,653

54,696

5.4 %

% of net sales

11.6 %

11.3 %

General and administrative expenses

67,129

49,810

34.8 %

% of net sales

13.5 %

10.3 %

Research and development expenses

9,602

12,268

(21.7) %

% of net sales

1.9 %

2.5 %

Amortization of intangibles

15,318

15,047

1.8 %

Income from operations

17,680

31,952

(44.7) %

Operating margin

3.6 %

6.6 %

Interest and debt expense

17,445

16,587

5.2 %

Investment (income) loss

(1,570)

(819)

91.7 %

Foreign currency exchange (gain) loss

412

(398)

Other (income) expense, net

(118)

24,484

Income (loss) before income tax expense (benefit)

1,511

(7,902)

Income tax expense (benefit)

(1,186)

(1,488)

(20.3) %

Net income (loss)

$ 2,697

$ (6,414)

Average basic shares outstanding

28,692

28,852

(0.6) %

Basic income (loss) per share

$ 0.09

$ (0.22)

Average diluted shares outstanding

28,841

28,852

— %

Diluted income (loss) per share

$ 0.09

$ (0.22)

Dividends declared per common share

$ 0.07

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

September 30,

2025

March 31,

2025

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$ 28,039

$ 53,683

Trade accounts receivable

179,267

165,481

Inventories

217,337

198,598

Prepaid expenses and other

55,852

48,007

Total current assets

480,495

465,769

Property, plant, and equipment, net

104,995

106,164

Goodwill

731,218

710,807

Other intangibles, net

352,749

356,562

Marketable securities

10,443

10,112

Deferred taxes on income

6,665

2,904

Other assets

83,287

86,470

Total assets

$ 1,769,852

$ 1,738,788

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Trade accounts payable

$ 96,036

$ 93,273

Accrued liabilities

119,085

113,907

Current portion of long-term debt and finance lease obligations

50,810

50,739

Total current liabilities

265,931

257,919

Term loan, AR securitization facility and finance lease obligations

408,467

420,236

Other non current liabilities

180,866

178,538

Total liabilities

$ 855,264

$ 856,693

Shareholders' equity:

Common stock

287

286

Treasury stock

(11,000)

Additional paid in capital

535,592

531,750

Retained earnings

382,842

382,160

Accumulated other comprehensive income (loss)

6,867

(21,101)

Total shareholders' equity

$ 914,588

$ 882,095

Total liabilities and shareholders' equity

$ 1,769,852

$ 1,738,788

COLUMBUS McKINNON CORPORATION

Condensed Consolidated Statements of Cash Flows - UNAUDITED

(In thousands)

Six Months Ended

September 30,

2025

September 30,

2024

Operating activities:

Net income (loss)

$ 2,697

$ (6,414)

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

Depreciation and amortization

24,485

24,028

Deferred income taxes and related valuation allowance

(7,940)

(13,662)

Net loss (gain) on sale of investments and other

(1,232)

(650)

Non-cash pension settlement

—

23,201

Stock-based compensation

4,626

4,175

Amortization of deferred financing costs

1,222

1,244

Impairment of operating lease

—

3,268

Loss (gain) on hedging instruments

906

(2)

Loss on disposals and impairments of fixed assets

207

418

Non-cash lease expense

4,820

5,202

Changes in operating assets and liabilities:

Trade accounts receivable

(8,570)

2,384

Inventories

(11,256)

(12,277)

Prepaid expenses and other

(6,077)

(11,714)

Other assets

1,431

183

Trade accounts payable

1,415

(10,711)

Accrued liabilities

(127)

(6,154)

Non current liabilities

(6,359)

(3,889)

Net cash provided by (used for) operating activities

248

(1,370)

Investing activities:

Proceeds from sales of marketable securities

2,139

3,153

Purchases of marketable securities

(1,961)

(1,993)

Capital expenditures

(6,523)

(10,068)

Net cash provided by (used for) investing activities

(6,345)

(8,908)

Financing activities:

Proceeds from the issuance of common stock

—

Purchases of treasury stock

—

(4,945)

Borrowings / (Repayments) of debt

(12,482)

(30,326)

Fees paid for debt amendments

(577)

—

Payment to former owners of montratec

—

(6,711)

Fees paid for debt repricing

—

(169)

Cash inflows from hedging activities

11,639

11,862

Cash outflows from hedging activities

(12,505)

(11,809)

Payment of dividends

(4,014)

(4,038)

Other

(783)

(1,789)

Net cash provided by (used for) financing activities

(18,722)

(47,839)

Effect of exchange rate changes on cash

(825)

(326)

Net change in cash and cash equivalents

(25,644)

(58,443)

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

$ 53,933

$ 114,376

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

$ 28,289

$ 55,933

COLUMBUS McKINNON CORPORATION

Q2 FY 2026 Net Sales Bridge

Quarter

Year To Date

($ in millions)

$ Change

% Change

$ Change

% Change

Fiscal 2025 Net Sales

$ 242.3

$ 482.0

Pricing

4.9

2.0 %

7.4

1.5 %

Volume

9.0

3.7 %

(0.3)

0.0 %

Foreign currency translation

4.8

2.0 %

7.9

1.6 %

Total change 1

$ 18.7

7.7 %

$ 15.0

3.1 %

Fiscal 2026 Net Sales

$ 261.0

$ 497.0

COLUMBUS McKINNON CORPORATION

Q2 FY 2026 Gross Profit Bridge

($ in millions)

Quarter

Year To Date

Fiscal 2025 Gross Profit

$ 74.7

$ 163.8

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

(1.0)

(6.7)

Monterrey, MX new factory start-up costs

0.7

0.4

Factory and warehouse consolidation costs

10.5

10.1

Sales volume and mix

3.4

(2.0)

Other

0.1

(0.8)

Foreign currency translation

1.8

2.8

Total change 1

15.4

3.8

Fiscal 2026 Gross Profit

$ 90.2

$ 167.4

U.S. Shipping Days by Quarter

Total

FY26

249

FY25

251

Components may not add due to rounding.

COLUMBUS McKINNON CORPORATION

Additional Data 1

(Unaudited)

Period Ended

September 30,

2025

June 30,

2025

March 31,

2025

September 30,

2024

($ in millions)

Backlog

$ 351.6

$ 360.1

$ 322.5

$ 317.6

Long-term backlog

Expected to ship beyond 3 months

$ 212.4

$ 223.4

$ 190.3

$ 172.5

Long-term backlog as % of total backlog

60.4

62.0

59.0

54.3

Debt to total capitalization percentage

33.4

34.2

34.8

35.8

Debt, net of cash, to net total capitalization

32.0

32.8

32.1

33.2

Working capital as a % of sales

24.3

25.2

21.3

23.3

Three Months Ended

September 30,

2025

June 30,

2025

March 31,

2025

September 30,

2024

($ in millions)

Trade accounts receivable

Days sales outstanding

62.5

days

69.5

days

61.0

days

64.1

days

Inventory turns per year

(based on cost of products sold)

3.1

turns

2.9

turns

3.4

turns

3.3

turns

Days' inventory

117.7

days

125.9

days

107.4

days

110.6

days

Trade accounts payable

Days payables outstanding

58.1

days

56.1

days

54.9

days

46.3

days

Net cash provided by (used for) operating

activities

$ 18.4

$ (18.2)

$ 35.6

$ 9.4

Capital expenditures

$ 3.3

$ 3.2

$ 6.1

$ 5.4

Free Cash Flow 2

$ 15.1

$ (21.4)

$ 29.5

$ 4.0

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

Six Months Ended

September

30, 2025

September

30, 2024

September

30, 2025

September

30, 2024

Gross profit

$ 90,160

$ 74,743

$ 167,382

$ 163,773

Add back (deduct):

Business realignment costs

1,450

468

Acquisition integration costs

—

Hurricane Helene cost impact

—

171

—

171

Factory and warehouse consolidation costs

283

10,763

708

10,763

Monterrey, MX new factory start-up costs

1,530

2,185

3,431

3,810

Adjusted Gross Profit

$ 92,106

$ 87,938

$ 173,039

$ 178,985

Net sales

$ 261,047

$ 242,274

$ 496,967

$ 482,000

Gross margin

34.5 %

30.9 %

33.7 %

34.0 %

Adjusted Gross Margin

35.3 %

36.3 %

34.8 %

37.1 %

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

Six Months Ended

September

30, 2025

September

30, 2024

September

30, 2025

September

30, 2024

Income from operations

$ 12,188

$ 10,805

$ 17,680

$ 31,952

Add back (deduct):

Acquisition deal and integration costs

9,996

—

18,099

—

Business realignment costs

1,131

281

3,656

1,131

Factory and warehouse consolidation costs

298

11,904

780

11,904

Headquarter relocation costs

147

Hurricane Helene cost impact

—

171

—

171

Monterrey, MX new factory start-up costs

1,530

3,751

3,431

7,317

Adjusted Operating Income

$ 25,214

$ 26,963

$ 43,717

$ 52,622

Net sales

$ 261,047

$ 242,274

$ 496,967

$ 482,000

Operating margin

4.7 %

4.5 %

3.6 %

6.6 %

Adjusted Operating Margin

9.7 %

11.1 %

8.8 %

10.9 %

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

Six Months Ended

September

30, 2025

September

30, 2024

September

30, 2025

September

30, 2024

Net income (loss)

$ 4,595

$ (15,043)

$ 2,697

$ (6,414)

Add back (deduct):

Amortization of intangibles

7,683

7,547

15,318

15,047

Acquisition deal and integration costs

9,996

—

18,099

—

Business realignment costs

1,131

281

3,656

1,131

Factory and warehouse consolidation costs

298

11,904

780

11,904

Headquarter relocation costs

147

Hurricane Helene cost impact

—

171

—

171

Monterrey, MX new factory start-up costs

1,530

3,751

3,431

7,317

Non-cash pension settlement expense

—

23,201

—

23,201

Normalize tax rate 1

(7,410)

(11,647)

(11,902)

(14,242)

Adjusted Net Income

$ 17,894

$ 20,216

$ 32,150

$ 38,262

GAAP average diluted shares outstanding

28,874

28,869

28,841

28,852

Add back:

Effect of dilutive share-based awards

—

205

—

253

Adjusted Diluted Shares Outstanding

$ 28,874

$ 29,074

$ 28,841

$ 29,105

GAAP EPS

$ 0.16

$ (0.52)

$ 0.09

$ (0.22)

Adjusted EPS

$ 0.62

$ 0.70

$ 1.11

$ 1.31

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

($ in thousands)

Three Months Ended

Six Months Ended

September 30,

2025

June 30,

2025

September 30,

2024

September 30,

2025

September 30,

2024

Net income (loss)

$ 4,595

$ (1,898)

$ (15,043)

$ 2,697

$ (6,414)

Add back (deduct):

Income tax expense (benefit)

(1,446)

260

(4,908)

(1,186)

(1,488)

Interest and debt expense

8,747

8,698

8,352

17,445

16,587

Investment (income) loss

(521)

(1,049)

(610)

(1,570)

(819)

Foreign currency exchange (gain) loss

754

(342)

(792)

412

(398)

Other (income) expense, net

(177)

23,806

(118)

24,484

Depreciation and amortization expense

12,219

12,266

12,188

24,485

24,028

Acquisition deal and integration costs

9,996

8,103

—

18,099

—

Business realignment costs

1,131

2,525

281

3,656

1,131

Factory and warehouse consolidation costs

298

482

11,904

780

11,904

Headquarter relocation costs

—

147

Hurricane Helene cost impact

—

171

—

171

Monterrey, MX new factory start-up costs

1,530

1,901

3,751

3,431

7,317

Adjusted EBITDA

$ 37,433

$ 30,769

$ 39,151

$ 68,202

$ 76,650

Net sales

$ 261,047

$ 235,920

$ 242,274

$ 496,967

$ 482,000

Net income margin

1.8 %

(0.8) %

(6.2) %

0.5 %

(1.3) %

Adjusted EBITDA Margin

14.3 %

13.0 %

16.2 %

13.7 %

15.9 %

Adjusted EBITDA is defined as net income (loss) before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not a 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