Q2 FY2027
Filed Nov 3, 2026Columbus McKinnon Q2 FY27 net sales rose 106.6% to $539.3 million on the Kito Crosby Acquisition; FY27 guidance raised, Legacy CMCO net sales up 5.3%
Reported net sales, orders and adjusted EBITDA rose sharply, and the company raised FY27 net sales, adjusted EBITDA and adjusted EPS guidance. Growth is mostly acquired: Legacy CMCO net sales grew 5.3%. Q2 GAAP net loss attributable to the Company was $(25,533) thousand, adjusted EPS fell $0.01 year over year, free cash flow for the quarter was $(15,355) thousand, and the Credit Agreement Net Leverage Ratio is 4.9x.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales (Q2 FY27)GAAP | $539.3M | – | 106.6% |
| Orders (Q2 FY27)other | $562.6M | – | 122% |
| Book-to-bill (Q2 FY27)other | 1.0x | – | – |
| Legacy CMCO net sales (Q2 FY27)non-GAAP | $239.1M | – | 5.3% |
| Kito Crosby Acquisition net sales (Q2 FY27)non-GAAP | $300.2M | – | – |
| Cost of products sold (Q2 FY27)GAAP | $351.4M | – | 105.6% |
| Gross profit (Q2 FY27)GAAP | $187.9M | – | 108.4% |
| Gross profit margin (Q2 FY27)GAAP | 34.8% | – | 30 bps |
| Adjusted Gross Profit (Q2 FY27)non-GAAP | $196.8M | – | 113.6% |
| Adjusted Gross Margin (Q2 FY27)non-GAAP | 36.5% | – | 120 bps |
| Selling expenses (Q2 FY27)GAAP | $52.38M | – | 79.8% |
| General and administrative expenses (Q2 FY27)GAAP | $61.75M | – | 69.7% |
| Research and development expenses (Q2 FY27)GAAP | $8.07M | – | 68.8% |
| Net loss on sales of businesses (Q2 FY27)GAAP | $709K | – | NM |
| Amortization of other intangibles (Q2 FY27)GAAP | $29.96M | – | 290.0% |
| Income from operations (Q2 FY27)GAAP | $35.04M | – | 187.5% |
| Operating margin (Q2 FY27)GAAP | 6.5% | – | – |
| Interest and debt expense (Q2 FY27)GAAP | $48.05M | – | 449.3% |
| Income (loss) before income tax (Q2 FY27)GAAP | −$9.88M | – | NM |
| Income tax expense (benefit) (Q2 FY27)GAAP | $15.31M | – | NM |
| Net income (loss) (Q2 FY27)GAAP | −$25.19M | – | NM |
| Net income (loss) attributable to the Company (Q2 FY27)GAAP | −$25.53M | – | NM |
| Net income (loss) margin (Q2 FY27)GAAP | (4.7)% | – | (650) bps |
| Diluted income (loss) per share (Q2 FY27)GAAP | $(0.76) | – | NM |
| Adjusted Net Income (Q2 FY27)non-GAAP | $31.07M | – | 73.6% |
| Adjusted EPS (Q2 FY27)non-GAAP | $0.61 | – | (1.6)% |
| Adjusted EBITDA (Q2 FY27)non-GAAP | $111.2M | – | 176.5% |
| Adjusted EBITDA Margin (Q2 FY27)non-GAAP | 20.6% | – | 520 bps |
| Net cash provided by (used for) operating activities (Q2 FY27)GAAP | −$4.56M | – | – |
| Capital expenditures (Q2 FY27)GAAP | −$10.80M | – | – |
| Free Cash Flow (Q2 FY27)non-GAAP | −$15.36M | – | – |
| Net sales (six months FY27)GAAP | $1.07B | – | 115.5% |
| Cost of products sold (six months FY27)GAAP | $736.6M | – | 123.5% |
| Gross profit (six months FY27)GAAP | $334.2M | – | 99.6% |
| Gross profit margin (six months FY27)GAAP | 31.2% | – | – |
| Adjusted Gross Profit (six months FY27)non-GAAP | $399.3M | – | – |
| Adjusted Gross Margin (six months FY27)non-GAAP | 37.3% | – | – |
| Selling expenses (six months FY27)GAAP | $107.1M | – | 85.7% |
| General and administrative expenses (six months FY27)GAAP | $127.1M | – | 89.4% |
| Research and development expenses (six months FY27)GAAP | $16.61M | – | 73.0% |
| Amortization of other intangibles (six months FY27)GAAP | $64.77M | – | 322.8% |
| Income from operations (six months FY27)GAAP | $17.35M | – | (1.9)% |
| Operating margin (six months FY27)GAAP | 1.6% | – | – |
| Interest and debt expense (six months FY27)GAAP | $95.66M | – | 448.4% |
| Income (loss) before income tax (six months FY27)GAAP | −$77.27M | – | NM |
| Income tax expense (benefit) (six months FY27)GAAP | $36.36M | – | NM |
| Net income (loss) attributable to the Company (six months FY27)GAAP | −$114.3M | – | NM |
| Diluted income (loss) per share (six months FY27)GAAP | $(2.80) | – | NM |
| Adjusted Net Income (six months FY27)non-GAAP | $61.58M | – | – |
| Adjusted EPS (six months FY27)non-GAAP | $1.21 | – | – |
| Adjusted EBITDA (six months FY27)non-GAAP | $222.6M | – | – |
| Adjusted EBITDA Margin (six months FY27)non-GAAP | 20.8% | – | – |
| Net cash provided by operating activities (six months FY27)GAAP | $21.07M | – | – |
| Capital expenditures (six months FY27)GAAP | −$16.46M | – | – |
| Free Cash Flow (six months FY27)non-GAAP | $4.60M | – | – |
| Credit Agreement Net Leverage Ratio (Sept 30, 2026)non-GAAP | 4.9x | – | – |
| Total liquidity (Sept 30, 2026)other | $532M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. sales (Q2 FY27)Filing prints 54% of total net sales for Q2 FY27 versus 57% in Q2 FY26 ($147.5 million). No driver for U.S. sales is stated beyond the Kito Crosby Acquisition, partially offset by the Divestiture, which the release cites for total net sales. | $292M | – | 98.0% |
| Non-U.S. sales (Q2 FY27)Filing prints 46% of total net sales for Q2 FY27 versus 43% in Q2 FY26 ($113.5 million). Release states that demand in Asia and EMEA was stronger than anticipated, without a separate figure for each region. | $247.3M | – | 117.9% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
FY2027 (fiscal year ending March 31, 2027), updated outlook outlook
- Revenue$2.13 billion to $2.17 billion (prior outlook $2.09 billion to $2.15 billion)
- Tax rate25% normalized effective tax rate used in calculation of Adjusted EPS (unchanged)
- NoteAdjusted EBITDA (non-GAAP): $425 million to $440 million (prior $405 million to $420 million); company has not reconciled to GAAP outlook
- NoteAdjusted EPS (non-GAAP): $2.00 to $2.15 (prior $1.90 to $2.10); company has not reconciled to GAAP outlook
- NoteAdjusted Diluted Shares Outstanding: 52 million (unchanged)
- NoteInterest expense: $185 million to $190 million (unchanged)
- NoteAmortization expense: $130 million to $135 million (prior $135 million to $140 million)
- NoteDepreciation expense: $80 million to $85 million (prior $75 million to $80 million)
- NoteCapital expenditures: $45 million to $55 million (prior $50 million to $60 million)
- NoteCompany states the guidance update reflects final purchase price accounting linked to the Kito Crosby Acquisition, and that the increase reflects strong first-half orders and financial performance
Capital returns
- Dividends declared per common share: $0.07 in Q2 FY27 and $0.07 in Q2 FY26; six months FY27 $0.07 and six months FY26 $0.07
- Payment of dividends in cash flow statement: $(4,036) thousand for six months FY27 versus $(4,014) thousand for six months FY26
- Company's forward-looking statements state its expectation that dividends payable on the Preferred Shares will be accrued, accumulated and compounded, rather than paid in cash, during fiscal 2027
- Preferred stock on balance sheet: $818,403 thousand at Sept 30, 2026 versus $789,845 thousand at March 31, 2026
- Company states it remains committed to allocating capital to pay down debt to de-lever its balance sheet in the near term while continuing its track record of consistent dividend payments
What drove it
- Net sales bridge (Q2 FY27, $ in millions): Q2 FY26 net sales $261.0; Divestiture $(33.9); Kito Crosby Acquisition $300.2; Pricing $10.1; Volume $2.3; Foreign currency translation $(0.5); Q2 FY27 net sales $539.3
- Six-month net sales bridge (FY27, $ in millions): Q2 FY26 six-month net sales $497.0; Divestiture $(68.7); Kito Crosby Acquisition $605.0; Pricing $17.2; Volume $18.4; Foreign currency translation $2.0; six-month FY27 net sales $1,070.7
- Company explains that net sales growth of 106.6% was driven by the Kito Crosby Acquisition, partially offset by the Divestiture
- Company states Legacy CMCO net sales growth of 5.3% benefited from both positive pricing and volume growth
- Company states that gross profit growth and the 30 bps gross margin increase reflect the acquisition; the release prints acquisition inventory step-up expense of $7,445 thousand in Q2 FY27 and $62,643 thousand for six months FY27
- Company explains that Adjusted EPS of $0.61 declined $0.01 largely due to a higher share count and increased interest expense
- Company states Q2 GAAP net loss of $(25,533) thousand reflects $12.5 million of acquisition and integration related expenses
- Company states that increased demand came from both project and short-cycle business
- Company states that the Kito Crosby integration is progressing and that synergy realization is ahead of plan
- Company states the Divestiture of the U.S. power chain hoist and chain manufacturing operations closed on March 4, 2026, as required as part of the Kito Crosby Acquisition
Concerns
- GAAP net loss attributable to the Company of $(25,533) thousand in Q2 FY27 versus $4,595 thousand in Q2 FY26, and $(114,262) thousand for six months FY27
- Legacy CMCO net sales growth of 5.3% in Q2 FY27 is well below the 106.6% reported growth, which is driven by the acquisition
- Free Cash Flow of $(15,355) thousand in Q2 FY27 versus $15,080 thousand in Q2 FY26; operating cash flow was $(4,559) thousand in the quarter
- Interest and debt expense of $48,050 thousand in Q2 FY27 versus $8,747 thousand in Q2 FY26; company cites increased interest expense as a reason adjusted EPS declined
- Adjusted EPS of $0.61 declined 1.6% year over year, with the company citing higher share count; Adjusted Diluted Shares Outstanding is 50,955 thousand in Q2 FY27 versus 28,874 thousand GAAP average diluted shares in Q2 FY26
- Credit Agreement Net Leverage Ratio of 4.9x at Sept 30, 2026
- Footnote discloses a partial goodwill impairment of $200,000,000 for the Precision Conveyance reporting unit in the fiscal 2026 annual test, which the filing says resulted from a sustained reduction in the stock price and market capitalization
- Amortization of other intangibles of $29,964 thousand in Q2 FY27 versus $7,683 thousand in Q2 FY26, and company guidance for FY27 amortization of $130 million to $135 million
- Gross margin of 34.8% in Q2 FY27 is 30 bps higher, but six-month gross profit margin of 31.2% is below the 33.7% printed for six months FY26
What to watch
- Progress against the updated FY27 net sales range of $2.13 billion to $2.17 billion and adjusted EBITDA range of $425 million to $440 million
- Free cash flow in the second half, given the Q2 FY27 negative figure and six-month free cash flow of $4,601 thousand
- Net leverage trajectory from 4.9x, and the pace of debt paydown the company describes as its near-term priority
- Realization of Kito Crosby integration and net cost synergies, which the company describes as ahead of plan
- Legacy CMCO net sales growth, which was 5.3% in Q2 FY27 and 8.8% for six months FY27 as printed
- Interest expense guidance of $185 million to $190 million and whether the preferred dividend accrual described in the filing continues during fiscal 2027
- Whether Adjusted Gross Margin continues to improve from 36.5% in Q2 FY27 as the acquisition inventory step-up expense falls
Balance sheet and cash flow
- Cash and cash equivalents: $110,900 thousand at Sept 30, 2026 versus $96,562 thousand at March 31, 2026
- Total liquidity of $532.0 million, consisting of $110.9 million of cash and cash equivalents and $421.1 million of availability on the revolving credit facility
- Total debt: $2,412,308 thousand at Sept 30, 2026 versus $2,393,007 thousand at March 31, 2026 (as printed in Credit Agreement reconciliation)
- Credit Agreement Net Leverage Ratio: 4.9x at Sept 30, 2026 versus 5.1x at March 31, 2026 (as printed in Credit Agreement reconciliation)
- Total assets: $4,678,559 thousand at Sept 30, 2026 versus $4,784,703 thousand at March 31, 2026
- Other intangibles, net: $1,442,987 thousand at Sept 30, 2026 versus $1,609,662 thousand at March 31, 2026
- Goodwill: $1,378,126 thousand at Sept 30, 2026 versus $1,408,640 thousand at March 31, 2026
- Inventories: $567,549 thousand at Sept 30, 2026 versus $609,030 thousand at March 31, 2026
- Total liabilities: $3,340,637 thousand at Sept 30, 2026 versus $3,336,074 thousand at March 31, 2026
- Total shareholders' equity: $1,337,922 thousand at Sept 30, 2026 versus $1,448,629 thousand at March 31, 2026
- Six months FY27 borrowing of debt: $15,443 thousand; six months FY26 repayment of debt: $(12,482) thousand
- Year-to-date cash costs related to the Kito Crosby Acquisition: $24.3 million (company figure)
- Credit Agreement Net Debt: $2,277,922 thousand at Sept 30, 2026 versus $2,259,385 thousand at March 31, 2026
Analysis
Columbus McKinnon reported fiscal Q2 2027 (quarter ended September 30, 2026) net sales of $539.3 million, up 106.6% from $261.0 million, and orders of $562.6 million, up 122%, with a book-to-bill of 1.0x. The company's bridge attributes $300.2 million of the quarter's sales to the Kito Crosby Acquisition, which closed February 3, 2026, and $33.9 million of prior-year sales to the Divestiture. Pricing contributed $10.1 million and volume $2.3 million on the bridge, with a $(0.5) million foreign currency translation effect. Legacy CMCO net sales, the company's non-GAAP measure that removes the acquisition and the Divestiture, grew 5.3% to $239,080 thousand. The gap between the headline growth and the legacy growth is the central fact of the period: reported scale now comes mainly from the acquisition, and the underlying business is growing at a single-digit rate.
Profitability is mixed by measure. GAAP gross margin was 34.8%, up 30 bps, and adjusted gross margin was 36.5%, up 120 bps. Income from operations rose to $35,043 thousand from $12,188 thousand, and adjusted EBITDA rose to $111,205 thousand from $40,217 thousand, with an adjusted EBITDA margin of 20.6%. Against that, interest and debt expense rose to $48,050 thousand from $8,747 thousand, amortization of other intangibles rose to $29,964 thousand from $7,683 thousand, and the company recorded a GAAP net loss attributable to the Company of $(25,533) thousand, or $(0.76) per diluted share. Adjusted EPS of $0.61 was down $0.01 year over year, which the company attributes largely to a higher share count and increased interest expense.
Cash generation weakened in the quarter. Operating cash flow was $(4,559) thousand and free cash flow was $(15,355) thousand, compared with $18,401 thousand and $15,080 thousand a year earlier. For the six months, operating cash flow was $21,065 thousand and free cash flow was $4,601 thousand. The balance sheet shows total debt of $2,412,308 thousand and a Credit Agreement Net Leverage Ratio of 4.9x, down from 5.1x at March 31, 2026, with total liquidity of $532.0 million. Shareholders' equity fell to $1,337,922 thousand from $1,448,629 thousand, and preferred stock on the balance sheet increased to $818,403 thousand. The company restated the fiscal 2026 goodwill impairment of $200,000,000 in its Precision Conveyance unit as a footnote item without further comment in this release.
Guidance was raised. FY27 net sales are now $2.13 billion to $2.17 billion (previously $2.09 billion to $2.15 billion), adjusted EBITDA $425 million to $440 million (previously $405 million to $420 million), and adjusted EPS $2.00 to $2.15 (previously $1.90 to $2.10). The company ties the update to strong first-half orders and performance and to final purchase price accounting. Its interest expense guidance is unchanged at $185 million to $190 million, while amortization and depreciation guidance and capital expenditure guidance were revised. Adjusted EBITDA and adjusted EPS are non-GAAP and are not reconciled to GAAP outlook. Because the prior-year comparison column and the Q1 FY27 figures are not printed for every line, sequential comparisons are left null in this read.
Management, verbatim
Building on record orders and sales in the first quarter, our team delivered strong second quarter performance that exceeded expectations. Sequential revenue growth was supported by sustained strength in the Americas and bolstered by stronger than anticipated demand in both Asia and EMEA
David J. Wilson, President and Chief Executive Officer
Our increased full-year outlook reflects strong first-half orders and financial performance, as well as confidence in the execution of our strategic priorities and our ability to sustain this momentum through the second half of fiscal 2027
John Linker, Executive Vice President and Chief Financial Officer
Our teams are working effectively as one, and the meaningful progress we are making provides higher confidence in achieving our targeted value creation objectives.
David J. Wilson, President and Chief Executive Officer
Not in the filing
stated, not guessed- Consensus estimates and analyst expectations were not provided, so no comparison to expectations is made
- Share price reaction was not provided
- Sequential (Q1 FY27) figures for individual quarterly lines are not printed separately; qoq_change fields are null
- Prior-year and prior-quarter figures for orders and book-to-bill are not printed in dollars for Q2 FY26
- Prior-year Q2 operating margin change, Adjusted Gross Profit six-month change, and Adjusted EPS six-month change are not printed as percentages
- Quarter-level guidance for Q3 FY27 is not provided; guidance is for full fiscal year 2027 only
- Gross margin and operating expense guidance were not provided
- Prior-year Credit Agreement Net Leverage Ratio is printed at March 31, 2026 rather than a prior quarter, so no prior-quarter value is shown
- Regional breakdown of Asia and EMEA sales is not printed
- Operating cash flow and free cash flow guidance were not provided
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.