COLUMBUS MCKINNON CORP (CMCO)
SIC breadcrumb: Manufacturing > Industrial And Commercial Machinery And Computer Equipment > SIC 3531 Construction Machinery & Equip
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1005229. Latest filing source: 0001005229-26-000022.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 1,193,451,000 | USD | 2026 | 2026-06-08 |
| Net income | -229,535,000 | USD | 2026 | 2026-06-08 |
| Assets | 4,784,703,000 | USD | 2026 | 2026-06-08 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-06-08. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001005229.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 637,123,000 | 839,419,000 | 876,282,000 | 809,162,000 | 649,642,000 | 906,555,000 | 936,240,000 | 1,013,540,000 | 963,027,000 | 1,193,451,000 |
| Net income | 29,660,000 | 48,429,000 | 46,625,000 | -5,138,000 | -229,535,000 | |||||
| Operating income | 23,725,000 | 68,331,000 | 69,442,000 | 89,824,000 | 42,255,000 | 73,781,000 | 97,841,000 | 107,148,000 | 54,573,000 | -119,333,000 |
| Gross profit | 192,885,000 | 285,061,000 | 304,997,000 | 283,186,000 | 220,225,000 | 315,730,000 | 342,099,000 | 374,838,000 | 325,680,000 | 359,431,000 |
| Diluted EPS | 0.43 | 0.95 | 1.80 | 2.50 | 0.38 | 1.04 | 1.68 | 1.61 | -0.18 | -7.40 |
| Operating cash flow | 60,450,000 | 69,661,000 | 79,499,000 | 106,795,000 | 98,890,000 | 48,881,000 | 83,636,000 | 67,198,000 | 45,612,000 | -146,211,000 |
| Capital expenditures | 13,104,000 | 12,632,000 | 24,813,000 | 21,411,000 | 17,859,000 | |||||
| Dividends paid | 3,326,000 | 3,658,000 | 4,652,000 | 5,670,000 | 5,733,000 | 6,562,000 | 8,008,000 | 8,044,000 | 8,042,000 | 8,037,000 |
| Share buybacks | 0.00 | 0.00 | 0.00 | 0.00 | 1,001,000 | 0.00 | 10,000,000 | 0.00 | ||
| Assets | 1,113,843,000 | 1,142,446,000 | 1,061,571,000 | 1,093,272,000 | 1,150,432,000 | 1,685,707,000 | 1,698,455,000 | 1,825,945,000 | 1,738,788,000 | 4,784,703,000 |
| Liabilities | 772,493,000 | 734,217,000 | 630,412,000 | 629,687,000 | 620,283,000 | 912,904,000 | 864,658,000 | 943,882,000 | 856,693,000 | 3,336,074,000 |
| Stockholders' equity | 530,149,000 | 772,803,000 | 833,797,000 | 882,063,000 | 882,095,000 | 1,448,727,000 | ||||
| Cash and cash equivalents | 77,591,000 | 63,021,000 | 71,093,000 | 114,450,000 | 202,127,000 | 115,390,000 | 133,176,000 | 114,126,000 | 53,683,000 | 96,562,000 |
| Free cash flow | 35,777,000 | 71,004,000 | 42,385,000 | 24,201,000 | -164,070,000 |
Ratios
| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 3.27% | 5.17% | 4.60% | -0.53% | -19.23% | |||||
| Operating margin | 3.72% | 8.14% | 7.92% | 11.10% | 6.50% | 8.14% | 10.45% | 10.57% | 5.67% | -10.00% |
| Return on equity | 3.84% | 5.81% | 5.29% | -0.58% | -15.84% | |||||
| Return on assets | 1.76% | 2.85% | 2.55% | -0.30% | -4.80% | |||||
| Liabilities / equity | 1.17 | 1.18 | 1.04 | 1.07 | 0.97 | 2.30 | ||||
| Current ratio | 1.79 | 1.74 | 1.72 | 2.46 | 2.40 | 1.87 | 2.05 | 1.96 | 1.81 | 2.02 |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-06-08. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001005229.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q1 | 2021-06-30 | -0.27 | reported discrete quarter | ||
| 2022-Q2 | 2021-09-30 | 0.53 | reported discrete quarter | ||
| 2022-Q3 | 2022-12-31 | 0.42 | reported discrete quarter | ||
| 2023-Q1 | 2023-06-30 | 235,492,000 | 0.32 | reported discrete quarter | |
| 2023-Q2 | 2023-09-30 | 258,400,000 | 0.55 | reported discrete quarter | |
| 2024-Q3 | 2023-09-30 | 15,813,000 | reported discrete quarter | ||
| 2024-Q3 | 2023-12-31 | 254,143,000 | 0.34 | reported discrete quarter | |
| 2024-Q4 | 2024-03-31 | 265,504,000 | 11,809,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2024-06-30 | 239,726,000 | 8,629,000 | 0.30 | reported discrete quarter |
| 2025-Q2 | 2024-06-30 | 8,629,000 | reported discrete quarter | ||
| 2025-Q2 | 2024-09-30 | 242,274,000 | -0.52 | reported discrete quarter | |
| 2025-Q3 | 2024-09-30 | -15,043,000 | reported discrete quarter | ||
| 2025-Q3 | 2024-12-31 | 234,138,000 | 0.14 | reported discrete quarter | |
| 2025-Q4 | 2025-03-31 | 246,889,000 | -2,684,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2025-06-30 | 235,920,000 | -1,898,000 | -0.07 | reported discrete quarter |
| 2026-Q2 | 2025-06-30 | -1,898,000 | reported discrete quarter | ||
| 2026-Q2 | 2025-09-30 | 261,047,000 | 0.16 | reported discrete quarter | |
| 2026-Q3 | 2025-09-30 | 4,595,000 | reported discrete quarter | ||
| 2026-Q3 | 2025-12-31 | 258,655,000 | 0.21 | reported discrete quarter | |
| 2026-Q4 | 2026-03-31 | 437,829,000 | -238,230,000 | derived Q4 = FY annual - nine-month YTD |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0001005229-26-000011.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Executive Overview
The Company is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions, including motion control products, technologies, automated systems and services, that efficiently and ergonomically move, lift, position and secure materials. Our key products include hoists, crane components, precision conveyors, actuators, rigging tools, light rail workstations, and digital power and motion control systems. These are highly relevant, professional-grade solutions that solve customers’ critical material handling requirements.
Founded in 1875, we have grown to our current size and leadership position through organic growth and acquisitions. We developed our leading market position over our 150-year history by emphasizing technological innovation, manufacturing excellence and superior customer service. In accordance with our strategic framework, we are building out our business system (CMBS) and growth framework to be market-led, customer-centric, and operationally excellent with our people and values at the core. We believe this will transform Columbus McKinnon into a top-tier Intelligent Motion Solutions company. We expect our strategy will enhance shareholder value by expanding EBITDA margins and return on invested capital ("ROIC").
Our revenue base is geographically diverse with approximately 43% of net sales derived from customers outside the U.S. for the nine months ended December 31, 2025. We believe this diversity balances the impact of changes that occur in local economies, as well as benefits the Company by providing access to growing emerging markets. We monitor both U.S. and Eurozone Industrial Capacity Utilization statistics as well as the ISM Production Index as indicators of anticipated demand for our products. In addition, we continue to monitor the potential impact of other global and U.S. trends including, industrial production, trade tariffs, raw material cost inflation, interest rates, foreign currency exchange rates, and activity of end-user markets around the globe.
From a strategic perspective, we are investing in new products and channels as we focus on our greatest opportunities for growth. We have leading market positions in hoists, lifting and sling chain, forged attachments, actuators, precision conveyors and digital power and motion control systems for the material handling industry. We are focusing our sales and marketing activities toward select North American and global market sectors including general industrial, energy, automotive, heavy OEM, entertainment, construction and infrastructure, life sciences food and beverage, e-commerce and consumer products.
In fiscal 2024, the Company completed its acquisition of montratec GmbH ("montratec"), a leading automation solutions company that designs and develops intelligent automation and transport systems for interlinking industrial production and logistics processes. montratec product offerings compliment the previous acquisitions of both Dorner and Garvey, and these acquisitions are collectively expected to accelerate the Company’s shift to intelligent motion solutions and serve as a platform to expand capabilities in advanced, higher technology automation solutions.
Regardless of the economic climate and point in the economic cycle, we constantly explore ways to increase operating margins as well as further improve our productivity and competitiveness. We have specific initiatives to reduce lead-times, improve on-time deliveries, reduce warranty costs, and improve material and factory productivity. The initiatives are being driven by the implementation of our business operating system, CMBS. We are working to achieve these strategic initiatives through business simplification, operational excellence, and profitable growth initiatives. We believe these initiatives will enhance future operating margins.
Our principal raw materials and components purchases were approximately $375 million in fiscal 2025 (or 59% of Cost of products sold) and include steel, consisting of rod, wire, bar, structural, and other forms of steel; electric motors; bearings; gear reducers; castings; steel and aluminum enclosures and wire harnesses; electro-mechanical components; and standard variable drives and controls. These commodities are all available from multiple sources. We purchase most of these raw materials and components from a limited number of strategic and preferred suppliers under agreements which are negotiated on a company-wide basis through our global purchasing group. Currently, as a result of global inflation and tariffs, we are experiencing higher raw material costs and availability issues for select raw materials and components. To date, we have raised prices to our customers to cover these increased raw material costs and are working with our supply base to prioritize shipments and improve availability of key components.
We operate in a highly competitive and global business environment. We see a variety of opportunities in our markets and geographies, including trends toward automation and increasing labor productivity and the expansion of market opportunities in Asia and other emerging markets. While we execute our long-term growth strategy, we are supported by our strong free cash flow as well as our liquidity position and flexible debt structure.
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On February 10, 2025, the Company announced that it had entered into a definitive agreement to acquire all of the issued and outstanding equity of Kito Crosby. The Kito Crosby Acquisition is expected to meaningfully improve the Company's scale, enhance our collective geographic reach, significantly expand our lifting securement and consumables portfolio and enhance our customer value proposition.
With global engineering, manufacturing, distribution, and operations, Kito Crosby provides a broad range of products and solutions for the most demanding applications. Kito Crosby’s people, products, solutions, and service have innovated the lifting and securement industry throughout its long history. Kito Crosby's iconic brands include Kito, Crosby, Harrington, Gunnebo Industries, and Peerless. We expect that the Kito Crosby Acquisition will strengthen our core lifting business and further the Company's position as 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. The Kito Crosby Acquisition closed on February 3, 2026, which was subsequent to the quarter ended December 31, 2025.
Results of Operations
Three months ended December 31, 2025 and December 31, 2024
Net sales in the three months ended December 31, 2025 were $258,655,000, an increase of $24,517,000 or 10.5% from the three months ended December 31, 2024 net sales of $234,138,000. Net sales were positively impacted by $11,733,000 of sales volume and $6,076,000 due to price increases. Foreign currency translation favorably impacted sales by $6,708,000 for the three months ended December 31, 2025.
Gross profit in the three months ended December 31, 2025 was $89,157,000, an increase of $7,060,000 or 8.6% from the three months ended December 31, 2024 gross profit of $82,097,000. Gross profit margin was 34.5% in the fiscal 2026 third quarter compared to 35.1% in the fiscal 2025 third quarter. Higher sales volume increased gross profit by $1,673,000. In addition, gross profit was increased compared to the prior year by $1,555,000 due to lower start-up costs related to the Monterrey, Mexico facility, $460,000 of lower business realignment costs, $409,000 of lower factory consolidation activities and by $261,000 of lower product liability expense in the quarter. Price increases net of material inflation and other manufacturing cost changes contributed to an increase in gross profit of $317,000. The translation of foreign currencies had a favorable impact on gross profit of $2,385,000 during the three months ended December 31, 2025.
Selling expenses were $28,777,000 and $27,348,000, or 11.1% and 11.7% of net sales, in the fiscal 2026 and 2025 third quarters, respectively. Foreign currency translation had a $956,000 unfavorable impact on selling expenses in the three months ended December 31, 2025 with the remaining increase attributable to overall increase in sales during the period.
General and administrative expenses were $32,148,000 and $24,233,000, or 12.4% and 10.3% of net sales, for the three months ended December 31, 2025 and December 31, 2024, respectively. General and administrative expenses increased $6,342,000 as a result of the Kito Crosby Acquisition and higher employee related costs of $3,188,000. These increases were offset by $1,299,000 of expense in fiscal 2025 to record a reserve against an accounts receivable balance for a customer who declared bankruptcy in January of 2025 which did not recur in fiscal 2026. Foreign currency translation had an unfavorable impact of $407,000 on general and administrative expenses in the three months ended December 31, 2025.
Research and development expenses were $4,442,000 and $5,325,000, or 1.7% and 2.3% of net sales, in both the fiscal 2026 and 2025 third quarter, respectively. The reduction in research and development expenses is primarily related to reduced labor and benefit costs.
Amortization of intangibles was $7,622,000 and $7,501,000 in the fiscal 2026 and 2025 third quarters, respectively, with the fluctuations related to foreign currency during the respective periods.
Interest and debt expense was $8,312,000 in the third quarter ended December 31, 2025 compared to $7,698,000 in the third quarter ended December 31, 2024. The increase is the result of increasing variable interest rates year over year due to the expiration of a favorable interest rate swap in February 2025.
Investment income was $395,000 in the third quarter ended December 31, 2025 compared to $54,000 in the third quarter ended December 31, 2024. Investment income relates to the mark-to-market adjustments on the marketable securities held in the Company’s wholly owned captive insurance subsidiary and the Company's equity method investment in EMC, described in Note 6 of the financial statements.
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Income tax expense as a percentage of the pre-tax income was 23% was 33% in the three months ended December 31, 2025 and December 31, 2024, respectively. Typically, these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.
Nine months ended December 31, 2025 and December 31, 2024
Net sales in the nine months ended December 31, 2025 were $755,622,000, an increase of $39,484,000 or 5.5% from the nine months ended December 31, 2024 net sales of $716,138,000. Net sales were positively impacted by $13,474,000 due to price increases, and $11,391,000 of favorable sales volume. Foreign currency translation favorably impacted sales by $14,619,000 for the nine months ended December 31, 2025.
Gross profit in the nine months ended December 31, 2025 was $256,539,000, an increase of $10,669,000 or 4.3% from the nine months ended December 31, 2024 gross profit of $245,870,000. Gross profit margin was 34.0% in the nine months ended December 31, 2025 compared to 34.3% in the nine months ended December 31, 2024. Gross profit compared to the prior year increased by $10,464,000 due to lower factory consolidation activities, $1,934,000 due to lower start-up costs related to the Monterrey, Mexico facility, $261,000 of lower product liability expense and $171,000 of costs due to Hurricane Helene recognized in the prior year. In addition, gross profit was reduced by $522,000 of net business realignment costs, and current year acquisition and i
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This section should be read in conjunction with our consolidated financial statements included in Item 8, Financial Statements and Supplementary Data of this Form 10-K.
EXECUTIVE OVERVIEW
Columbus McKinnon Corporation ("Columbus McKinnon" or the "Company") 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. These are highly relevant, professional-grade solutions that solve our customers’ critical material handling requirements.
Founded in 1875, we have grown to our current size and leadership position through organic growth and acquisitions. We developed our leading market position over our 150-year history by emphasizing technological innovation, manufacturing excellence and superior customer service. In accordance with our strategic framework, we are building out our business system ("CMBS") and growth framework to be market-led, customer-centric, and operationally excellent with our people and values at the core. We believe this will transform Columbus McKinnon into a top-tier intelligent motion solutions company. We expect our strategy will enhance shareholder value by growing sales and expanding EBITDA margins.
Our revenue base is geographically diverse with approximately 44% derived from customers outside the U.S. for the year ended March 31, 2026. We believe this diversity balances the impact of changes that occur in local economies, as well as benefits the Company by providing access to growing emerging markets. We monitor both U.S. and Eurozone Industrial Capacity Utilization statistics as well as the ISM Production Index as indicators of anticipated demand for our products. In addition, we continue to monitor the potential impact of other global and U.S. trends including, industrial production, trade tariffs, raw material cost inflation, interest rates, foreign currency exchange rates, and activity of end-user markets around the globe.
From a strategic perspective, we are investing in new products and channels as we focus on our greatest opportunities for growth. We have leading market positions in hoists, lifting and sling chain, forged attachments, actuators, precision conveyors and digital power and motion control systems for the material handling industry. We are focusing our sales and marketing activities toward select North American and global market sectors including general industrial, energy, automotive, heavy OEM, entertainment, construction and infrastructure, life sciences food and beverage, e-commerce and consumer products.
We operate in a highly competitive and global business environment. We see a variety of opportunities in our markets and geographies, including trends toward automation and increasing labor productivity and the expansion of market opportunities in Asia and other emerging markets. While we execute our long-term growth strategy, we are supported by our strong free cash flow as well as our liquidity position and flexible debt structure.
On May 31, 2023, the Company completed its acquisition of montratec GmbH ("montratec"), a leading automation solutions company that designs and develops intelligent automation and transport systems for interlinking industrial production and logistics processes. montratec product offerings compliment the previous acquisitions of both Dorner and Garvey, and these acquisitions are collectively helped to accelerate the Company’s shift to intelligent motion solutions and serve as a platform to expand capabilities in advanced, higher technology automation solutions.
On February 3, 2026, the Company completed its acquisition of Kito Crosby for $2,811,907,000, including acquired cash of $184,307,000. The Kito Crosby Acquisition has meaningfully improved the Company's scale, enhanced our collective geographic reach, significantly expanded our lifting securement and consumables portfolio and enhanced our customer value proposition.
With global engineering, manufacturing, distribution, and operations, Kito Crosby provides a broad range of products and solutions for the most demanding applications. Kito Crosby's people, products, solutions, and service have innovated the lifting and securement industry throughout its long history. Kito Crosby's iconic brands include Kito, Crosby, Harrington, Gunnebo Industries, and Peerless. The Kito Crosby Acquisition has already started to strengthen our core lifting business and enhance the Company's position as 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. We expect this to continue as we further integrate our two companies together in fiscal 2027.
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Table of Contents
Regardless of the economic climate and point in the economic cycle, we constantly explore ways to increase operating margins as well as further improve our productivity and competitiveness. We have specific initiatives to reduce lead-times, improve on-time deliveries, reduce warranty costs, and improve material and factory productivity. The initiatives are being driven by the implementation of our business operating system, CMBS. We are working to achieve these strategic initiatives through business simplification, operational excellence, and profitable growth initiatives. We believe these initiatives will enhance future operating margins.
Our principal raw materials and components purchases were approximately $428.2 million in fiscal 2026 (or 51% of Cost of products sold) and include steel, consisting of rod, wire, bar, structural, and other forms of steel; electric motors; bearings; gear reducers; castings; steel and aluminum enclosures and wire harnesses; electro-mechanical components; and standard variable drives and controls. These commodities are all available from multiple sources. We purchase most of these raw materials and components from a limited number of strategic and preferred suppliers under agreements which are negotiated on a Company-wide basis through our global purchasing group. Currently, as a result of global inflation and tariffs, we are experiencing higher raw material costs and availability issues for select raw materials and components. To date, we have raised prices to our customers to cover these increased raw material costs and are working with our supply base to prioritize shipments and improve availability of key components.
RESULTS OF OPERATIONS
The following discussion is a comparison between fiscal 2026 and fiscal 2025 results. For a discussion of our results of operations for fiscal 2025 compared to fiscal 2024, please refer to Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025, which was filed with the SEC on May 29, 2025.
Please note that the Kito Crosby Acquisition closed on February 3, 2026 so fiscal 2026 includes approximately two months of Kito Crosby financial performance. Similarly, the sale of our U.S. power chain hoist and chain manufacturing operations based out of facilities located in Damascus, Virginia and Lexington, Tennessee and certain other assets (the “Divestiture Business”) to Star Hoist (the “Divestiture”) were divested on March 4, 2026, so approximately one month of the financial performance for the Divestiture Business would not be included in the fiscal 2026 results.
Fiscal 2026 Compared to Fiscal 2025
Fiscal 2026 sales were $1,193,451,000, an increase of 23.9%, or $230,424,000 compared with fiscal 2025 sales of $963,027,000. The Kito Crosby Acquisition added $188,089,000 to fiscal 2026 sales. In addition, price increases of $21,535,000 and higher sales volume of $10,151,000 further increased our fiscal 2026 sales. Offsetting these increases were lower sales volumes from our Divested Business of $13,986,000. The translation of foreign currencies had a favorable impact of $24,635,000.
Gross profit was $359,431,000 and $325,680,000 or 30.1% and 33.8% of net sales in fiscal 2026 and 2025, respectively. The fiscal 2026 increase in gross profit was $33,751,000 or 10.4%. The Kito Crosby Acquisition contributed $29,159,000 to gross profit after being reduced by $36,798,000 for inventory step up amortization expense. In addition compared to the prior year, net factory consolidation costs were lower by $14,457,000, net start-up costs for our Monterrey Mexico facility were lower by $3,426,000, product liability expense was lower by $261,000 and $171,000 of costs due to Hurricane Helene which occured in the prior year. These increases were offset by $5,875,000 of material inflation, tariffs and other manufacturing cost changes net of price increases, $6,692,000 related to the lost gross profit from the divested businesses, $7,913,000 of unfavorable sales mix, $934,000 of net business realignment costs, and $723,000 of acquisition and integration costs. The translation of foreign currencies had a $8,414,000 favorable impact on gross profit for the year ended March 31, 2026.
Selling expenses were $133,579,000 and $110,043,000, or 11.2% and 11.4% of net sales in fiscal 2026 and 2025, respectively. Selling expenses increased primarily by $17,144,000 as a result of the Kito Crosby Acquisition. Foreign currency translation had a $3,890,000 unfavorable impact on selling expenses in fiscal 2026
General and administrative expenses were $178,325,000 and $107,249,000 or 14.9% and 11.1% of net sales in fiscal 2026 and 2025, respectively. The increase includes $55,243,000 of net deal and integration costs primarily attributable to the Kito Crosby Acquisition and $12,868,000 of incremental expense incurred at Kito Crosby for the period. Foreign currency translation had a $1,578,000 unfavorable impact on general and administrative expenses for fiscal 2026.
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Research and development expenses were $21,409,000 and $23,869,000 in fiscal 2026 and 2025, respectively. As a percentage of consolidated net sales, research and development expenses were 1.8% and 2.5% in fiscal 2026 and 2025, respectively.
Fiscal 2026 net gain on the sale of businesses of $103,306,000 relates to the Divestiture, as described in Note 3.
The Company recorded an impairment of $200,000,000 for the Precision Conveyance reporting unit in fiscal 2026. The sustained reduction in the Company's stock price and market capitalization resulted in the aggregate equity value of the combined company exceeding its market capitalization at its annual assessment date. Given these facts, the Company recorded an impairment during the year as described in Note 9.
Amortization of intangibles were $48,757,000 and $29,946,000 in fiscal 2026 and 2025, respectively, with the increase related to amortization of new intangible assets acquired in the Kito Crosby Acquisition.
Interest and debt expense was $61,145,000 and $32,426,000 in fiscal 2026 and 2025, respectively. The increase is related to higher interest rates, as well as increased borrowings to finance the Kito Crosby Acquisition.
Fiscal 2026 Cost of debt refinancing and debt issuance of $24,185,000 relates to the Company's financing of the Kito Crosby Acquisition described in Note 3.
Investment income of $2,182,000 and $1,302,000, in fiscal 2026 and 2025, respectively, related to earnings on marketable securities held in the Company’s wholly owned captive insurance subsidiary and the Company's equity method investment in EMC, described in Note 7.
Other expense was $1,525,000 and $25,775,000 in fiscal 2026 and fiscal 2025, respectively. The decrease primarily relates to the non-cash settlement charge of $23,634,000 associated with the termination of one of the Company's U.S. pension plans in the prior year ending March 31, 2025 described in Note 13. No such termination occurred in fiscal 2026.
Income tax expense as a percentage of income from continuing operations before income tax expense was (11.1)% and 6.7% in fiscal 2026 and 2025, respectively. Typically these percentages vary from the U.S. statutory rate of 21% due to varying effective tax rates at the Company's foreign subsidiaries and the jurisdictional mix of income for these subsidiaries. In fiscal 2026 the rate was decreased by 25 percentage points as the result of the Precision Conveyance reporting unit goodwill impairment which is not deductible (see Note 9). Additionally, nondeductible Kito Crosby acquisition-related costs decreased the rate by 5 percentage points.
In fiscal 2025, the tax effect of the pension termination described in Note 13 reduced the effective tax rate by 17 percentage points.
LIQUIDITY AND CAPITAL RESOURCES
Cash, cash equivalents, and restricted cash totaled $97,023,000 and $53,933,000, at March 31, 2026 and 2025, respectively.
Liquidity
Our primary sources of liquidity are funds generated by operating activities, cash and cash equivalents, available capacity for borrowings on our New Revolving Facility and available capacity for borrowings on our AR Securitization Facility. Our ability to fund our operations, to make planned capital investments, to make scheduled debt payments and to repay or refinance indebtedness depends on our future operating performance and cash flows, which are subject to prevailing economic conditions and financial, business, and other factors, some of which are beyond our control.
Our liquidity as of March 31, 2026 was $561,216,000 comprised of cash and cash equivalents of $96,562,000, $458,933,000 of availability on the 2026 Revolving Credit Facility and $5,721,000 of availability on the AR Securitization Facility. Our liquidity as of March 31, 2025 was $240,155,000 comprised of cash and cash equivalents of $53,683,000, $159,583,000 of availability on the prior revolving credit facility and $26,889,000 of availability on the AR Securitization Facility.
We believe that our current resources, together with anticipated cash flows from operations and borrowing capacity under the 2026 Revolving Credit Facility and AR Securitization facilities, will be sufficient to finance our operations, meet our current cash requirements, and fund anticipated capital investments for at least the next 12 months. We may, however, seek additional financing to fund future growth or refinance our existing indebtedness through the debt capital markets, but we cannot be assured that such financing will be available on favorable terms, or at all.
Cash flow from operating activities
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Net cash used for operating activities was $146,211,000 and net cash provided by operating activities was $45,612,000 in fiscal 2026 and 2025, respectively. In fiscal 2026, the net loss of $229,535,000 and non-cash adjustments to net loss of $209,471,000 contributed to cash provided by operations. The non-cash adjustments primarily included a $200,000,000 goodwill impairment charge (refer to Critical Accounting Estimates and Note 9), $103,306,000 related to gain on sale of our Divested Business (refer to Note 3) and $10,711,000 of deferred income taxes and related valuation allowance offset by $77,038,000 of depreciation and amortization, $24,185,000 related to debt extinguishment costs, $9,978,000 of non-cash lease expense, $9,569,000 of stock-based compensation, and $3,549,000 of amortization of deferred financing costs. Changes in working capital reduced cash from operations by $117,989,000 primarily driven by a $129,800,000 decrease in accrued liabilities due to the payment of integration and deal costs for the Kito Crosby Acquisition as well as payment of certain Kito Crosby employee related deal success fees shortly after the closing of the Kito Crosby Acquisition of $140,801,000. In addition trade accounts receivable increase by $10,675,000 and trade payables decreased by $2,646,000. These changes in working capital were offset by decreases in inventories of $15,268,000 and prepaid expenses of $9,864,000. Cash provided by operations also included a decrease of $10,161,000 in other non-current liabilities primarily due to lease payments for fiscal 2026 and a decrease of other assets for $2,003,000.
Cash flow from investing activities
Net cash used for investing activities was $2,457,654,000 and $19,891,000 in fiscal 2026 and 2025, respectively. The use of cash in fiscal 2026 primarily consisted of $2,627,389,000 related to the Kito Crosby Acquisition and $17,859,000 in capital expenditures. The Company saw a cash inflow from investing activities related to net Divestiture proceeds of $183,976,000 and proceeds of $3,257,000 received from sale of two previously closed manufacturing facilities.
Cash flow from financing activities
Net cash provided for financing activities was $2,653,414,000 in fiscal 2026 compared to net cash used for financing activities of $86,747,000 in fiscal 2025. The most significant source of cash was $2,590,000,000 in gross proceeds from the issuance of long-term debt and $780,978,000 from the issuance of preferred stock, which was used to fund the Kito Crosby Acquisition as well as to refinance the Company's prior outstanding indebtedness. This was offset by $616,177,000 in debt repayments, $91,004,000 in fees paid to secure the new debt borrowing and $8,037,000 in dividend payments. Associated cash flows from hedging activities are classified as financing activities in the statement of cash flows, which resulted in a net cash inflow of $1,644,000.
We believe that our cash on hand, cash flows, and borrowing capacity under our New Revolving Facility will be sufficient to fund our ongoing operations and debt obligations, and capital expenditures for at least the next twelve months. This belief is dependent upon successful execution of our current business plan and effective working capital utilization. No material restrictions exist in accessing cash held by our non-U.S. subsidiaries. We expect to meet our funding needs with cash provided by our U.S. operations, as well as by repatriating non-U.S. cash. We do not expect to incur significant incremental U.S. taxes as we repatriate funds. As of March 31, 2026, $93,054,000 of cash and cash equivalents were held by foreign subsidiaries.
CAPITAL EXPENDITURES
In addition to keeping our current equipment and plants properly maintained, we are committed to replacing, enhancing and upgrading our property, plant and equipment to support new product development, improve productivity and customer responsiveness, reduce production costs, increase flexibility to respond effectively to market fluctuations and changes, meet environmental requirements, enhance safety and promote ergonomically correct work stations. Our capital expenditures for fiscal 2026 and 2025 were $17,859,000 and $21,411,000, respectively. Excluded from capital expenditures is $2,398,000 and $318,000, in property, plant and equipment purchases included in accounts payable at March 31, 2026 and 2025, respectively. We expect capital expenditure spending in fiscal 2027 to range from $50,000,000 to $60,000,000 inclusive of the Kito Crosby business.
INFLATION AND OTHER MARKET CONDITIONS
Our costs are affected by inflation and tariffs in the U.S. economy and, to a lesser extent, in non-U.S. economies including those of Europe, Canada, Mexico, South America, and Asia-Pacific. We do not believe that general inflation and tariffs have had a material effect on our results of operations over the periods presented despite rising inflation due to our ability to pass on rising costs through price increases. We are currently experiencing higher raw material, freight, and logistics costs as well as tariffs than we have seen in recent years, which we have been able to recover with pricing actions. In the future, we may not be able to pass on these cost increases to our customers.
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SEASONALITY AND QUARTERLY RESULTS
Quarterly results may be materially affected by the timing of large customer orders, periods of high vacation and holiday concentrations, legal settlements, gains or losses in our portfolio of marketable securities, restructuring charges, favorable or unfavorable foreign currency translation, divestitures and acquisitions. Therefore, the operating results for any particular fiscal quarter are not necessarily indicative of results for any subsequent fiscal quarter or for the full fiscal year.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. We continually evaluate the estimates and their underlying assumptions, which form the basis for making judgments about the carrying value of our assets and liabilities. Actual results inevitably will differ from those estimates. If interpreted differently under different conditions or circumstances, changes in our estimates could result in material changes to our reported results. We have identified below the accounting policies involving estimates that are critical to our financial statements. Other accounting policies are more fully described in Note 2 of our consolidated financial statements.
Insurance Reserves. Our accrued general and product liability reserves as described in Note 16 to consolidated financial statements involve actuarial techniques including the methods selected to estimate ultimate claims, and assumptions including emergence patterns, payment patterns, initial expected losses, and increased limit factors. These actuarial estimates are subject to a high degree of uncertainty due to a variety of factors, including extended lag time in the reporting and resolution of claims, trends or changes in claim settlement patterns, insurance industry practices, and legal interpretations. Changes to these estimates could result in material changes to the amount of expense and liabilities recorded in our financial statements. Further, actual costs could differ significantly from the estimated amounts. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. Other insurance reserves such as workers compensation and group health insurance are based on actual historical and current claim data provided by third party administrators or internally maintained.
Goodwill and indefinite-lived intangible asset impairment testing. Our goodwill balance of $1,408,640,000 as of March 31, 2026, is subject to impairment testing. We test goodwill for impairment at least annually, as of the end of February, and more frequently whenever events occur or circumstances change that indicate there may be impairment. These events or circumstances could include a significant long-term adverse change in the business climate, poor indicators of operating performance, or a sale or disposition of a significant portion of a reporting unit.
We test goodwill at the reporting unit level, which is one level below our operating segment. We identify our reporting units by assessing whether the components of our operating segment constitute businesses for which discrete financial information is available and segment management regularly reviews the operating results of those components. We also aggregate components that have similar economic characteristics into single reporting units (for example, similar products and / or services, similar long-term financial results, product processes, classes of customers, or in circumstances where the components share assets or other resources and have other economic interdependencies). Historically, we have had three reporting units, Linear Motion Products (formerly referred to as Duff-Norton), Rest of Products and Precision Conveyance, and have goodwill totaling $9,699,000, $265,708,000, and $201,359,000, respectively, at March 31, 2026. The Kito Crosby Acquisition completed in February of fiscal 2026 represents a reporting unit holding the remaining balance of the goodwill recorded at March 31, 2026. Kito Crosby goodwill has been evaluated for impairment separately in fiscal 2026 as part of our procedures to calculate the fair value of its opening balance sheet. We will evaluate the impact of the Kito Crosby on our reporting units in fiscal 2027 as we continue to integrate its operations.
Annual Goodwill Impairment Test
The Company may first elect to perform a qualitative evaluation to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The qualitative assessment considers, among other factors, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or strategy, and other entity specific events. If, based on the qualitative assessment, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative assessment, the Company performs a quantitative impairment test. The quantitative test compares the estimated fair value of our reporting units with the carrying amount, including goodwill. The Company recognizes an impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. To perform the quantitative impairment test, the Company uses the discounted cash flow method to estimate the fair value of the reporting units. The discounted cash flow method incorporates various assumptions, the most significant being projected revenue growth rates, EBITDA margins and cash flows, the terminal growth rate, and the discount rate. The Company projects discounted cash flows based on each reporting unit's current business, expected developments, and operational strategies over a seven-year period. In estimating the terminal growth rates, the Company considers its historical and projected results, as well as the
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economic environment in which its reporting units operate. The discount rate rates utilized for each reporting unit reflect the Company's assumptions of marketplace participants' cost of capital and risk assumptions, both specific to the reporting unit and overall in the economy. For its fiscal year 2026 annual goodwill impairment test, the Company elected to bypass the qualitative assessment and performed a quantitative impairment test comparing the carrying amount of each reporting unit with its estimated fair value, except for the Kito Crosby reporting unit due to the proximity of the acquisition date to our annual impairment assessment date..
Quantitative Tests
In order to perform the quantitative impairment test for each of the reporting units, we used the discounted cash flow method to estimate fair value. The discounted cash flow method incorporates various assumptions as outlined above. Management projects discounted cash flows based on the reporting unit's current business, expected developments and operational strategies over a seven-year period. In estimating the terminal growth rate, we consider our historical and projected results, as well as the economic environment in which the reporting unit operates. The discount rate utilized for the reporting unit reflects management’s assumptions of marketplace participants’ cost of capital and risk assumptions, both specific to the reporting unit and overall in the economy.
Testing goodwill for impairment under the quantitative method described above requires us to estimate fair value of the reporting unit using significant estimates and judgmental factors. The key assumptions used in the analysis are as follows:
Precision Conveyance
Rest of Products
Linear Motion
Compound annual growth rate
5.1%
3.3%
4.5%
Terminal growth rate
3.6%
3.6%
3.5%
Discount rate
11.8%
10.7%
12.5%
Each reporting units' compound annual growth rate reflects the growth rate for the markets which they serve. The terminal growth rate reflects our estimate of long-term growth into perpetuity in each reporting unit's vertical market and as well as expected increases in the consumer price index. The estimated discount rate was based upon an analysis of similar companies and their debt to equity mix, their related volatility and the size of their market capitalization. We also consider any additional risk in the reporting unit achieving its forecast, and adjust the discount rate applied when determining the reporting unit’s estimated fair value.
While the individual reporting units initially had fair values in excess of their book value, the reduction in the Company's stock price and market capitalization resulted in the aggregate equity value of the combined company exceeding its market capitalization at its annual measurement date. The Company reevaluated the fair value of its reporting units and this resulted in a partial impairment of the goodwill in the amount of $200,000,000 for the Precision Conveyance reporting unit.
Holding all other assumptions constant, a reduction in the compound annual growth rate for revenue in the first seven years of the model by one percentage point would reduce fair value by $37,600,000 for Precision Conveyance, $72,077,000 for Rest of Products, and $4,945,000 for Linear Motion. Similarly, a 50 basis point increase in the discount rate would reduce fair value for the Precision Conveyance reporting unit by $25,000,000, the Rest of Products reporting unit by $25,879,000 and the Linear Motion reporting unit by $5,805,000. A 50 basis point reduction in the terminal growth rate would reduce fair value for the Precision Conveyance reporting unit by $13,300,000, the Rest of Products Group by $15,202,000 and the Linear Motion Group by $1,612,000.
We further test our indefinite-lived intangible asset balance of $47,554,000 consisting of trademarks for acquisitions prior to fiscal 2026. Similar to goodwill, the Company may first elect to perform a qualitative evaluation to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, based on the qualitative assessment, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative assessment, the Company performs a quantitative impairment test. For its annual impairment test, the Company elected to bypass the qualitative assessment and performed a quantitative impairment test. The methodology used to quantitatively value trademarks is the relief from royalty method. The recorded book value of these trademarks in excess of the calculated fair value triggers an impairment. The key estimate used in this calculation consists of an overall royalty rate applied to the sales covered by the trademark. After performing a quantitative assessment as of February 28, 2026, we determined that the trademarks were not impaired.
Purchase Price Allocations for Business Combinations.
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During the fiscal 2026, we completed the Kito Crosby Acquisition for a purchase price of $2,811,907,000. Under purchase accounting, we preliminarily recorded assets acquired and liabilities assumed at fair value as of the acquisition date. We identified and assigned value to trademarks and trade names, customer relationships, favorable supply agreements, backlog, inventory, pension obligations and technology. We estimated the useful lives over which these intangible assets would be amortized. Valuations of these assets were performed largely using discounted cash flow models and estimates of replacement cost. These valuations support the conclusion that identifiable intangible assets had a preliminary value of $1,290,000,000. The resulting goodwill has been preliminarily calculated to be $931,874,000.
Assigning value to certain tangible and intangible assets requires estimates used in projecting relevant future cash flows and estimates of replacement costs, in addition to estimating useful lives of such assets. Further estimates include an attrition rate for customer relationships, royalty rates for trademarks and trade names, and a weighted average cost of capital assumption.
Effects of New Accounting Pronouncements
Information regarding the effects of new accounting pronouncements is included in Note 21 to the accompanying consolidated financial statements included in Item 8, Financial Statements and Supplementary Data, of this Form 10-K.
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