The earnings release and presentation to supplement today's call are available for download on our investor relations website at investors.cmco.com. Please see our earnings release and our filings to the Securities and Exchange Commission for more information. Last week, we were very pleased to announce that we closed the Kito Crosby acquisition. This will be the final step in aligning the combined company towards our next phase of growth.
We delivered double-digit growth in sales, orders, EPS, and backlog year-over-year, as we saw continued stabilization in U.S. We continue to see an attractive global funnel of opportunities, and our backlog remains at healthy levels, positioning us well for the future. Adjusted EBITDA was $40 million, with an adjusted EBITDA margin of 15.4%. This margin was flat to the prior quarter as our tariff mitigation actions offset normal seasonality.
We continue to expect that we will achieve tariff cost neutrality by the end of the year and margin neutrality in fiscal 2027. grew 15%, driven by strength in lifting, automation, and precision conveyance, and EMEA grew 3%, despite the continuation of a weaker economic landscape that is causing slower order conversion. Globally, growth was balanced across both short cycle and project orders, reflecting stabilization of short cycle demand, traction on our commercial initiatives, and implementation of tariff-related price increases. Our pipeline of quotation activity remains encouraging, and we continue to see a strong funnel of new business opportunities.
| Metric | Period | Current guidance |
|---|---|---|
| FY2026 standalone guidance | FY2026 | Withdrawn following the Kito Crosby close and pending divestiture |
| Cost synergies | Post-close (3-year) | $70M net run-rate confirmed – ~20% realized in year one, ~60% in year two, 100% in year three |
| Net leverage | By end of FY2028 | Reduce net leverage ratio to below 4x by end of fiscal 2028 |
| Pro forma combined scale | Full-year pro forma (per Jan 14 8-K) | Revenue ~$2.0–$2.1B and EBITDA ~$440–$460M (inclusive of $70M synergies) |
| Kito Crosby standalone (CY2025) | Calendar 2025 | $1.14–$1.15B revenue and $273–$283M adjusted EBITDA |
| Metric | YoY | Note |
|---|---|---|
| Net sales | +10.5% to $258.7M | Higher volume, pricing and favorable FX; particular strength in lifting, linear motion and automation, led by North America. |
| Adjusted EPS | $0.62 (+11%) | Higher net income from volume and pricing plus lower FX losses versus the prior year. |
| GAAP EPS | $0.21 (+50%) | Higher operating income despite $6.3M of acquisition/divestiture costs. |
| Adjusted EBITDA | $39.8M; 15.4% margin | Flat sequential margin as tariff mitigation offset seasonality; definition now adds back stock comp per the credit agreement. |
| Adjusted gross margin | 35.1% (-170 bps) | Unfavorable mix (precision-conveyance timing, U.S. lifting, more rail shipments) and tariffs. |
| Orders | $247M (+11%) | U.S. up 15% on lifting/automation/precision conveyance; EMEA up 3% (largely FX). |
| Backlog | $342M (+15%) | Growth across all platforms in both short-cycle and project businesses. |
| Free cash flow | $16.5M | Higher earnings, favorable working capital, customer deposits and lower cash taxes, net of $6.7M transaction cash payments. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Kito Crosby close and integration | Pending, targeting end of fiscal year | Closed early in the quarter (announced Feb 3, 2026); integration underway with a $70M net cost-synergy target (20/60/100% over three years) and a dedicated IMO working since October. | — |
| Capital structure and deleveraging | Committed bridge financing | Permanent financing completed below the ~8% estimate ($1.65B TLB, $900M 7.125% notes, $800M perpetual convertible preferred, $500M revolver); debt repayment is the primary priority, targeting sub-4x net leverage by end of FY2028. | — |
| Portfolio realignment | — | Pending divestiture of the U.S. power-chain-hoist and chain operations expected to close later in the quarter for ~$160M net, with proceeds directed to Term Loan B paydown. | — |
| Regional demand split | U.S. stabilizing, EMEA soft | U.S. short-cycle robust (orders +15%, favorable tax/CapEx deduction rules and onshoring tailwinds); EMEA choppy with slower conversion expected to persist. | — |
| Synergy cadence and pro forma economics | $70M identified | Combined business framed at ~$2.0–$2.1B revenue and ~$440–$460M pro forma EBITDA; Kito Crosby seen at a 22–23% EBITDA margin, with synergies back-end loaded. | — |