Columbus McKinnon Corporation (NASDAQ:CMCO) has increased its full-year fiscal 2027 revenue and earnings guidance after reporting a 107% increase in second-quarter net sales to $539.3 million, supported by its acquisition of Kito Crosby and continued growth across its existing operations.
The industrial lifting and motion control equipment manufacturer reported orders of $562.6 million, up 122% year over year, while adjusted EBITDA increased to $111.2 million from $40.2 million. Adjusted EBITDA margin improved by 520 basis points to 20.6%.
Despite the stronger underlying operating performance, Columbus McKinnon recorded a net loss attributable to the company of $25.5 million, or $0.76 per diluted share, reflecting acquisition and integration expenses and other costs.
The company said integration of Kito Crosby, acquired in February 2026, remains on schedule, with cost synergies being realised ahead of expectations.
Management raised its fiscal 2027 revenue forecast to between $2.13 billion and $2.17 billion and increased its adjusted EBITDA outlook to $425 million-$440 million.
What Drove Columbus McKinnon’s 107% Revenue Growth?
Columbus McKinnon reported second-quarter fiscal 2027 net sales of $539.3 million, an increase of $278.2 million, or 106.6%, from $261.0 million in the corresponding period last year.
The substantial increase was primarily attributable to the acquisition of Kito Crosby Limited, completed on February 3, 2026.
The acquisition significantly expanded Columbus McKinnon’s operations and product portfolio, contributing to the sharp increase in consolidated revenue.
However, the company’s existing business also recorded growth.
Legacy Columbus McKinnon sales increased 5.3%, supported by higher volumes and positive pricing.
The legacy growth measure excludes the effects of the Kito Crosby acquisition and a related divestiture to provide a more comparable view of the existing business.
The divestiture involved certain US power chain hoist and chain manufacturing operations and was completed on March 4, 2026.
Chief Executive Officer David J. Wilson said the second-quarter performance exceeded management’s expectations.
“Building on record orders and sales in the first quarter, our team delivered strong second quarter performance that exceeded expectations,” Wilson said.
He attributed sequential revenue growth to sustained strength in the Americas and better-than-anticipated demand in Asia and the Europe, Middle East and Africa region.
How Did US and International Sales Perform?
Columbus McKinnon reported strong revenue growth across both domestic and international markets.
US net sales reached $292.0 million, compared with $147.5 million in the prior-year quarter, representing an increase of 98.0%.
The United States accounted for approximately 54% of total quarterly revenue, compared with 57% a year earlier.
International sales increased 117.9% to $247.3 million from $113.5 million.
Non-US operations represented approximately 46% of total revenue, up from 43% in the corresponding period last year.
The stronger international contribution reflected the expanded scale of the combined Columbus McKinnon and Kito Crosby businesses.
Management also reported stronger-than-expected demand in Asia and EMEA during the quarter.
The results indicated that growth was not confined to the US market, although the acquisition accounted for most of the year-over-year increase in consolidated revenue.
Why Did Orders Increase 122% in the Second Quarter?
Columbus McKinnon reported second-quarter orders of $562.6 million, representing a 122% increase compared with the prior-year period.
The increase reflected the addition of Kito Crosby alongside demand across the company’s existing operations.
Management highlighted increased activity from both project-based customers and shorter-cycle business.
The company reported a book-to-bill ratio of approximately 1.0 times, indicating that new orders were broadly in line with revenue recognised during the quarter.
This measure provides an indication of the relationship between incoming customer orders and current sales.
Wilson said improvements in operational execution and customer experience contributed to demand.
“Our continued focus on improving operational execution and customer experience led to increased demand from both project and short-cycle business,” he said.
The company believes its order performance supports continued progress during the second half of fiscal 2027.
How Is the Kito Crosby Integration Progressing?
Columbus McKinnon said integration of Kito Crosby remains on track, with synergy realisation ahead of its original plan.
The acquisition, completed in February 2026, combined two businesses operating in lifting, material handling and related industrial equipment markets.
Management has been focused on integrating operations, aligning commercial activities and identifying opportunities to improve efficiency across the combined organisation.
Wilson said the integration had progressed beyond its initial priorities, allowing management to increase its attention on longer-term initiatives.
“Our integration of Kito Crosby is progressing well, supported by agile execution and strong collaboration across the combined organization,” he said.
The company also reported positive customer responses to its expanded product portfolio.
Management believes the combined business offers opportunities to strengthen customer relationships and increase sales across its broader range of industrial solutions.
Although the company said synergy realisation was ahead of plan, the announcement did not provide a revised dollar target for total expected synergies.
Why Did Adjusted EBITDA Rise 176.5%?
Columbus McKinnon reported adjusted EBITDA of $111.2 million for the second quarter, compared with $40.2 million a year earlier.
The increase of $71.0 million represented growth of 176.5%.
Adjusted EBITDA margin improved to 20.6% from 15.4%, an increase of 520 basis points.
The improvement reflected the expanded earnings contribution from Kito Crosby and performance across the combined business.
Gross profit also increased substantially, reaching $187.9 million compared with $90.2 million in the prior-year period.
Reported gross margin improved to 34.8% from 34.5%.
On an adjusted basis, gross profit increased to $196.8 million from $92.1 million, while adjusted gross margin rose to 36.5% from 35.3%.
The 120-basis-point improvement in adjusted gross margin indicated stronger profitability before certain accounting adjustments.
These results supported management’s decision to increase its full-year adjusted EBITDA forecast.
Why Did Columbus McKinnon Report a Net Loss Despite Higher Revenue?
Despite the sharp increase in revenue and adjusted operating profitability, Columbus McKinnon reported a consolidated net loss of $25.2 million for the quarter.
That compared with net income of $4.6 million in the corresponding period last year.
The net loss attributable to Columbus McKinnon was $25.5 million, equivalent to $0.76 per diluted share.
In the prior-year quarter, the company reported earnings of $0.16 per diluted share.
The latest results included $12.5 million in acquisition and integration-related expenses.
The company’s adjusted earnings figures also exclude certain other items, including amortisation of intangible assets.
Higher interest expenses associated with the enlarged business and financing structure contributed to pressure on per-share profitability.
The difference between reported and adjusted results highlights the financial effects of the Kito Crosby transaction.
While the acquisition substantially increased revenue and adjusted EBITDA, associated costs continued to affect reported net income.
How Did Adjusted Earnings Compare With Last Year?
Columbus McKinnon reported adjusted net income of $31.1 million, representing a 73.6% increase from $17.9 million in the previous year’s second quarter.
However, adjusted earnings per share declined slightly to $0.61 from $0.62.
The decrease of $0.01 per share represented a 1.6% year-over-year decline.
Management attributed the difference primarily to a higher share count and increased interest expenses.
The results demonstrated that growth in total adjusted earnings did not translate into equivalent growth on a per-share basis.
The company’s adjusted earnings measures exclude certain acquisition-related and accounting expenses that affect reported results.
Investors will be monitoring whether continued operating growth and integration synergies can support improvements in adjusted earnings per share during the remainder of fiscal 2027.
How Strong Is Columbus McKinnon’s Financial Position?
Columbus McKinnon ended its second fiscal quarter with total liquidity of $532.0 million.
This comprised $110.9 million in cash and cash equivalents and $421.1 million in available borrowing capacity under its revolving credit facility.
The company reported a credit agreement net leverage ratio of 4.9 times.
During the first six months of fiscal 2027, operating activities generated $21.1 million in cash.
Capital expenditures totalled $16.5 million, resulting in free cash flow of $4.6 million.
The company also incurred $24.3 million in cash costs related to the Kito Crosby acquisition during the year-to-date period.
Management said debt reduction remains a near-term capital allocation priority as the company works to reduce leverage following the acquisition.
Columbus McKinnon also intends to maintain its established practice of paying dividends.
The balance between debt repayment, integration expenditure and shareholder distributions will remain important to its financial strategy.
How Much Has Columbus McKinnon Raised Its FY2027 Revenue Guidance?
Columbus McKinnon increased its fiscal 2027 net sales forecast to between $2.13 billion and $2.17 billion.
The previous guidance range was $2.09 billion to $2.15 billion.
The updated outlook raises the lower end of the forecast by $40 million and the upper end by $20 million.
At the midpoint, expected annual revenue increases from $2.12 billion to $2.15 billion.
The revision reflects stronger-than-anticipated first-half performance and management’s expectations for the remaining six months of the financial year, which ends March 31, 2027.
Chief Financial Officer John Linker said the increase reflected confidence in the company’s operational performance.
“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,” Linker said.
The updated forecast incorporates the contribution from Kito Crosby and the company’s latest operating assumptions.
What Is the New Adjusted EBITDA and Earnings Outlook?
Columbus McKinnon raised its full-year adjusted EBITDA guidance to between $425 million and $440 million.
The previous range was $405 million to $420 million.
Both ends of the forecast increased by $20 million, raising the midpoint from $412.5 million to $432.5 million.
The company also increased its adjusted earnings per share forecast.
Adjusted EPS is now expected to range from $2.00 to $2.15, compared with the previous guidance of $1.90 to $2.10.
The revised outlook reflects management’s confidence in the combined company’s earnings performance and the progress of integration initiatives.
The guidance is based on non-GAAP financial measures, which exclude certain items affecting reported results.
Columbus McKinnon did not provide directly comparable GAAP guidance, citing uncertainty surrounding future adjustments.
What Other Financial Assumptions Have Changed for FY2027?
Alongside its higher revenue and earnings forecasts, Columbus McKinnon updated several financial assumptions following the finalisation of purchase price accounting associated with the Kito Crosby acquisition.
Full-year interest expense is expected to remain between $185 million and $190 million, unchanged from the previous forecast.
Expected amortisation expense has been reduced to between $130 million and $135 million, compared with the earlier range of $135 million to $140 million.
Depreciation expense is now projected at $80 million to $85 million, up from $75 million to $80 million.
The company also lowered its capital expenditure forecast to between $45 million and $55 million, compared with the previous range of $50 million to $60 million.
The normalised effective tax rate used to calculate adjusted earnings per share remains at 25%.
Adjusted diluted shares outstanding are expected to total approximately 52 million, also unchanged.
These assumptions form part of the company’s updated financial outlook for the year ending March 31, 2027.
Can Columbus McKinnon Sustain Growth in the Second Half of FY2027?
Columbus McKinnon’s second-quarter performance provides a basis for management’s expectations of continued progress during the remainder of fiscal 2027.
The company reported order growth of 122% and revenue growth of 107%, supported by the Kito Crosby acquisition and positive performance across its legacy operations.
Management highlighted sustained strength in the Americas and improving demand in Asia and EMEA.
The company also reported increased activity across project-based and shorter-cycle orders.
Integration of Kito Crosby remains a central priority, with synergy realisation progressing ahead of plan.
However, Columbus McKinnon continues to face financial considerations associated with the acquisition, including higher interest expenses and leverage.
The company’s ability to maintain operating momentum while reducing debt will be important to its performance.
Further improvements in integration efficiency and adjusted profitability could support the achievement of its increased full-year guidance.
Outlook: What Should Investors Watch Next?
Columbus McKinnon’s fiscal second-quarter results demonstrated the significant impact of its Kito Crosby acquisition on the scale and earnings capacity of the business.
Net sales increased 106.6% to $539.3 million, while orders rose 122% to $562.6 million.
Adjusted EBITDA climbed 176.5% to $111.2 million, with the adjusted margin improving by 520 basis points to 20.6%.
However, the company reported a net loss attributable to shareholders of $25.5 million, or $0.76 per diluted share, reflecting acquisition-related and other expenses.
Adjusted net income increased to $31.1 million, although adjusted earnings per share declined slightly to $0.61.
The company raised its fiscal 2027 revenue outlook to $2.13 billion-$2.17 billion, adjusted EBITDA guidance to $425 million-$440 million and adjusted EPS forecast to $2.00-$2.15.
Looking ahead, investors will be monitoring continued integration progress, synergy realisation, order trends and the company’s ability to reduce leverage.
With the Kito Crosby integration progressing ahead of its synergy schedule, the focus will increasingly shift towards whether Columbus McKinnon can translate its expanded operations into sustained earnings growth and stronger cash generation.
More About Columbus McKinnon Corporation
Columbus McKinnon Corporation is a global provider of intelligent motion and material handling solutions used across industrial and commercial markets.
The company develops products and technologies designed to support the lifting, positioning, securing and movement of materials.
Its portfolio includes lifting hardware consumables, hoists and cranes, precision conveyance systems, automation technologies and linear motion solutions.
Columbus McKinnon serves customers across a range of industries requiring equipment for material movement, manufacturing operations and intralogistics.
The acquisition of Kito Crosby in February 2026 significantly expanded the company’s product portfolio and international operations.
The combined business focuses on providing lifting and motion solutions intended to improve industrial productivity, operational efficiency and workplace safety.