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Yahoo
3 days ago
- 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
24-05-2025
- Business
- Yahoo
Vermilion Energy to sell Saskatchewan, Manitoba assets for $415M
Vermilion Energy (VET) announced that it has entered into a definitive agreement for the sale of its Saskatchewan and Manitoba assets for cash proceeds of $415M. Net proceeds from the transaction will be directed towards debt repayment to accelerate deleveraging efforts and strengthen Vermilion's balance sheet. Based on current strip commodity pricing and operational plans, the company expects to exit 2025 with net debt of $1.5B, with a trailing net debt to FFO ratio of 1.4 times. The assets are currently producing approximately 10,500 boe/d and are forecast to generate approximately $110M of annual net operating income at current strip commodity prices. The assets had proved developed producing reserves of 30 mmboe at December 31, 2024, and approximately $250M of undiscounted future abandonment liabilities. The transaction has an effective date of May 1 and is anticipated to close in Q3, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions. Assuming a mid-Q3 2025 close, Vermilion expects full year 2025 production to average between 120,000 to 125,000 boe/d with capital expenditures in the range of $680M to $710M, reflecting an approximately $50M reduction associated with the divested assets post-closing. Vermilion will continue to evaluate capital investment levels during this period of increased volatility and will adjust capital if necessary to prioritize free cash flow over production growth during 2025 and 2026. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on VET: Disclaimer & DisclosureReport an Issue Vermilion Energy's Earnings Call: Growth Amid Challenges Vermilion Energy Announces AGM Voting Results and Board Changes Vermilion Energy price target lowered to C$14 from C$16 at RBC Capital Vermilion Energy price target lowered to C$10 from C$14 at BMO Capital Vermilion Energy Reports Strong Q1 2025 Performance 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
Bloomberg
20-05-2025
- Business
- Bloomberg
Take-Two Dips as Video-Game Maker Preps $1 Billion Stock Sale
Take-Two Interactive Software Inc. shares fell as much as 5% in extended trading after the company announced plans to sell $1 billion of new stock to investors. The New York-based video-game maker plans to use the proceeds for general corporate purposes, including repayment of debt and future acquisitions, according to a statement Tuesday. The company declined to comment further on the sale.
