Latest news with #ColumbusMcKinnon
Yahoo
5 days ago
- Business
- Yahoo
Columbus McKinnon Full Year 2025 Earnings: EPS Misses Expectations
Revenue: US$963.0m (down 5.0% from FY 2024). Net loss: US$5.14m (down by 111% from US$46.6m profit in FY 2024). US$0.18 loss per share (down from US$1.62 profit in FY 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Looking ahead, revenue is forecast to grow 2.6% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Machinery industry in the US. Performance of the American Machinery industry. The company's shares are down 11% from a week ago. Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Columbus McKinnon (1 is significant) you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
5 days ago
- Business
- Business Insider
Columbus McKinnon says DOJ requests more information on Kito deal
In a regulatory filing, Columbus McKinnon (CMCO) stated, 'As previously disclosed, on February 10, 2025, Columbus McKinnon entered into a Stock Purchase Agreement with Kito Crosby Limited, the equityholders of Kito, and Ascend Overseas Limited, pursuant to which Columbus McKinnon agreed to acquire all of the issued and outstanding equity of Kito. In connection with the Acquisition, Columbus McKinnon and KKR (KKR) North America Fund XI L.P., the ultimate parent entity of Kito, each filed the required notification and report forms under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, with the Antitrust Division of the U.S. Department of Justice and the Federal Trade Commission. On May 28, 2025, Columbus McKinnon and KKR each received a request for additional information and documentary material from the Antitrust Division in connection with the Antitrust Division's review of the Acquisition. The issuance of the Second Request extends the waiting period under the HSR Act until 30 days after both Columbus McKinnon and KKR have substantially complied with the Second Request, unless the waiting period is voluntarily extended by the parties or terminated earlier by the Antitrust Division. The parties have been working collaboratively with the Antitrust Division to bring its review of the Acquisition to a close as expeditiously as possible and will continue to do so. Completion of the Acquisition remains subject to the expiration or termination of the waiting period under the HSR Act and the satisfaction or waiver of the other customary closing conditions set forth in the Purchase Agreement.'
Yahoo
29-05-2025
- Business
- Yahoo
CMCO Q1 Earnings Call: Tariff Pressures, Backlog Growth, and Pending Acquisition Shape Outlook
Material handling equipment manufacturer Columbus McKinnon (NASDAQ:CMCO) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 7% year on year to $246.9 million. Its non-GAAP EPS of $0.60 per share was 3.4% above analysts' consensus estimates. Is now the time to buy CMCO? Find out in our full research report (it's free). Revenue: $246.9 million (7% year-on-year decline) Adjusted EPS: $0.60 vs analyst estimates of $0.58 (3.4% beat) Adjusted EBITDA Margin: 14.6% Backlog: $322.5 million at quarter end Market Capitalization: $448.6 million Columbus McKinnon's first quarter results reflected the effects of shifting demand patterns and operational changes across its business. Management attributed the year-over-year sales decline to softer short-cycle order activity, which CEO David Wilson linked to 'near-term policy uncertainty and channel consolidation that has led to channel inventory reductions.' The company also saw a higher mix of longer-cycle project-related business, particularly in its precision conveyance segment, which contributed to a 15% increase in backlog but limited near-term revenue conversion. Operational execution improvements, such as ramping up the Monterrey, Mexico facility and consolidating North American production, also played a role in shaping the quarter's margin profile. Looking forward, Columbus McKinnon's guidance is shaped by ongoing macroeconomic and policy uncertainty, especially regarding tariff impacts and demand volatility. Management's outlook includes the expectation that tariff-related costs will weigh on margins and adjusted earnings in the first half of the year, with mitigation efforts such as pricing actions, supply chain adjustments, and surcharges planned to offset these headwinds over time. CEO David Wilson emphasized that 'we expect tariffs to be a headwind to margin and adjusted EPS in the first half of the year and are targeting the achievement of tariff cost neutrality by the second half.' Additionally, the company's pending acquisition of Kito Crosby, expected to close by year-end, is seen as a key lever for scaling operations and accelerating strategic priorities, though its financial impact is not yet included in guidance. Management attributed the quarter's results to weaker short-cycle sales, a shift toward longer-cycle project orders, and continued cost management efforts amid tariff uncertainty. Short-cycle demand softness: Orders for short-cycle products remained flat year-over-year, with continued pressure from policy and macroeconomic uncertainty. This led to reduced sales volume, as inventory reductions continued across distribution channels. Project-related order growth: Orders for project-related and precision conveyance solutions saw notable strength. Management highlighted robust demand in end markets such as battery production, life sciences, e-commerce, and aerospace, helping drive a 15% increase in backlog. Operational changes in manufacturing: The transition of production to the Monterrey, Mexico facility and the closure of two smaller North American plants impacted gross margins. Management noted underutilization during the ramp-up period but expects improved efficiency as volumes increase. Tariff headwinds and mitigation efforts: Tariffs on imports from China and the EU contributed to margin compression. Management outlined a mitigation plan involving price increases, surcharges, and supply chain adjustments, acknowledging a lag before these actions fully offset higher input costs. Pending Kito Crosby acquisition: The company continued to advance integration planning for the Kito Crosby deal, with most regulatory approvals received. Management expects the combination to enable cost synergies, expand geographic reach, and strengthen its position in key industrial segments. Management expects ongoing tariff impacts and the mix of project versus short-cycle orders to be the main themes shaping results through the rest of the year. Tariff mitigation and pricing actions: Columbus McKinnon plans to address tariff-related cost pressures through a combination of surcharges, selective price increases, and supply chain shifts. Management warned that while these measures are underway, there will be a timing gap before cost neutrality is achieved, potentially affecting volume if higher prices impact competitiveness. Backlog conversion and project execution: A strong backlog, driven by precision conveyance and long-cycle project orders, is expected to support revenue as these orders convert over the coming quarters. Management anticipates some lumpiness in project delivery timing but believes ongoing demand in targeted end markets like automation and defense will provide additional support. Integration of Kito Crosby: The pending acquisition is expected to generate operational synergies, expand the product portfolio, and accelerate the company's intelligent motion strategy. However, management emphasized that financial benefits from the acquisition will not be realized until after closing, which is anticipated by year-end. In the next few quarters, the StockStory team will be watching (1) the pace and effectiveness of tariff mitigation strategies, (2) the conversion of backlog—especially in precision conveyance and project-related segments—into revenue, and (3) progress toward closing and integrating the Kito Crosby acquisition. We will also monitor how adjustments in pricing and supply chain management influence both volume and profitability as macro conditions evolve. Columbus McKinnon currently trades at a forward P/E ratio of 5.8×. Should you double down or take your chips? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
29-05-2025
- Business
- Yahoo
Columbus McKinnon Corp (CMCO) Q4 2025 Earnings Call Highlights: Navigating Challenges with ...
Net Sales: $963 million for fiscal 2025, down 4% year over year on a constant currency basis. Fourth Quarter Sales: $246.9 million, down 5% from the prior year on a constant currency basis. Backlog: $322.5 million, a 15% increase versus the prior year. Gross Profit: $79.8 million in the fourth quarter, decreased by $14.5 million year over year. Gross Margin: 32.3% on a GAAP basis; 35.2% on an adjusted basis. Adjusted Operating Income: $24.1 million in the fourth quarter. Adjusted Operating Margin: 9.8% in the fourth quarter. Adjusted EPS: $0.60 for the fourth quarter. Adjusted EBITDA: $36.1 million in the fourth quarter, with a margin of 14.6%. Free Cash Flow: $29.5 million in the fourth quarter. Debt Repayment: $60 million paid down in fiscal 2025, including $15 million in the fourth quarter. Net Leverage Ratio: 3.1 times on a financial covenant basis. Fiscal 2026 Guidance: Net sales growth flat to slightly up; adjusted EPS growth flat to slightly up. Warning! GuruFocus has detected 3 Warning Sign with CMCO. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Columbus McKinnon Corp (NASDAQ:CMCO) delivered record orders in fiscal '25, with a 4% increase versus the prior year on a constant currency basis. The company saw strong growth in project-related orders, particularly in precision conveyance, which was up 19% year over year. Backlog increased by 15% to $322.5 million, positioning the company well for fiscal '26. Operational execution improved, with a top-tier TRIR of 0.54 and a 10-point improvement in net promoter score in the EMEA region. The pending acquisition of Keto Crosby is expected to scale the business, expand customer capabilities, and accelerate the intelligent motion strategy. Net sales were down 4% year over year on a constant currency basis, reflecting lower volume due to short cycle order softness. Gross profit decreased by $14.5 million due to lower sales volume, mix, and factory closure costs. Tariffs are expected to be a headwind, with a $0.20 to $0.30 impact on adjusted EPS in the first half of fiscal 2026. The company faces macroeconomic uncertainty and volatility related to the evolving US policy landscape. Short cycle orders remain sensitive to channel dynamics, impacted by policy uncertainty and channel consolidation. Q: What is the tariff rate embedded for China and the EU, and how might the Keto Crosby acquisition impact tariff mitigation? A: David Wilson, President and CEO, explained that the tariff rates considered are 145% for China and 10% for the EU. The company is advancing integration planning for Keto Crosby, which could potentially help mitigate tariff impacts quicker or more effectively than currently guided. Q: How has the short cycle order trend been through April and early June, and what is expected for Keto Crosby? A: David Wilson noted that short cycle sales improved in the latter part of Q4, showing a flat year-over-year performance, which was a significant improvement from Q3. While he couldn't comment on Keto Crosby's results, similar activity levels are anticipated. Q: Can you elaborate on the tariff situation and the expected mitigation measures? A: David Wilson stated that the company expects a $40 million tariff headwind, with mitigation through surcharges, pricing, and supply chain management. The guidance assumes flat to slightly up revenue, with potential volume reductions due to price increases. Q: What is driving the strength in precision conveyance orders, and how are margins in this area? A: David Wilson highlighted robust demand in precision conveyance, with a 19% year-over-year order growth. This demand is driven by sectors like battery production, life sciences, and e-commerce, with contributions from Mantra Tech and Dorner businesses. Q: Why was the mix negative to margin despite strong precision conveyance orders? A: David Wilson explained that while orders were strong, sales were down, impacting margins due to lower volume and mix. The company expects improvements in fiscal '26 as volume ramps up, particularly in precision conveyance and North American linear motion businesses. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Columbus McKinnon (NASDAQ:CMCO) Reports Sales Below Analyst Estimates In Q1 Earnings
Material handling equipment manufacturer Columbus McKinnon (NASDAQ:CMCO) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 7% year on year to $246.9 million. Its non-GAAP profit of $0.60 per share was 3.4% above analysts' consensus estimates. Is now the time to buy Columbus McKinnon? Find out in our full research report. Revenue: $246.9 million vs analyst estimates of $250.1 million (7% year-on-year decline, 1.3% miss) Adjusted EPS: $0.60 vs analyst estimates of $0.58 (3.4% beat) Adjusted EBITDA: $36.07 million vs analyst estimates of $35.04 million (14.6% margin, 3% beat) Operating Margin: 2%, down from 10.1% in the same quarter last year Free Cash Flow Margin: 11.9%, similar to the same quarter last year Backlog: $322.5 million at quarter end Market Capitalization: $508.7 million "We enter fiscal 2026 with a strong backlog and continued order growth as our commercial initiatives gain traction. Our conviction in Columbus McKinnon's strategy and business model remains strong as we continue to anticipate tailwinds from industry megatrends like on-shoring, scarcity of labor and global infrastructure investments over time," said David Wilson, President and Chief Executive Officer. With 19 different brands across the globe, Columbus McKinnon (NASDAQ:CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Columbus McKinnon's sales grew at a sluggish 3.5% compounded annual growth rate over the last five years. This was below our standard for the industrials sector and is a tough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Columbus McKinnon's recent performance shows its demand has slowed as its annualized revenue growth of 1.4% over the last two years was below its five-year trend. This quarter, Columbus McKinnon missed Wall Street's estimates and reported a rather uninspiring 7% year-on-year revenue decline, generating $246.9 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 3.1% over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Columbus McKinnon has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 8.4%, higher than the broader industrials sector. Analyzing the trend in its profitability, Columbus McKinnon's operating margin decreased by 3.2 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q1, Columbus McKinnon generated an operating profit margin of 2%, down 8.1 percentage points year on year. Since Columbus McKinnon's operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Columbus McKinnon, its EPS declined by 2.2% annually over the last five years while its revenue grew by 3.5%. This tells us the company became less profitable on a per-share basis as it expanded. We can take a deeper look into Columbus McKinnon's earnings to better understand the drivers of its performance. As we mentioned earlier, Columbus McKinnon's operating margin declined by 3.2 percentage points over the last five years. Its share count also grew by 19.5%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Columbus McKinnon, its two-year annual EPS declines of 8.2% show it's continued to underperform. These results were bad no matter how you slice the data. In Q1, Columbus McKinnon reported EPS at $0.60, down from $0.75 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 3.4%. Over the next 12 months, Wall Street expects Columbus McKinnon's full-year EPS of $2.48 to grow 8.3%. It was encouraging to see Columbus McKinnon beat analysts' EBITDA expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its revenue slightly missed. Overall, this was a softer quarter. The stock traded down 1.1% to $17.55 immediately following the results. Big picture, is Columbus McKinnon a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
