Columbus McKinnon Raises 2027 Sales Outlook to $2.13–$2.17 Billion After Second-Quarter Results
Key Facts
On November 3, Columbus McKinnon raised its fiscal 2027 net sales outlook to a range of $2.13–$2.17 billion, from $2.09–$2.15 billion, after reporting results for its second fiscal quarter ended September 30, 2026. The company raised its adjusted earnings before interest, taxes, depreciation and amortization outlook to $425–$440 million, from $405–$420 million, and increased its adjusted earnings per share estimate to $2.00–$2.15, from $1.90–$2.10. The company said the updated outlook reflects its performance year to date and its view of the coming period. The CFO attributed the decision to strong orders and financial performance in the first half, and confidence in executing strategic priorities and sustaining momentum in the second half. The company said it was ahead of plan in realizing synergies from integrating Kito Crosby, but did not present that as the direct reason for raising its outlook.
Second-quarter net sales were $539.3 million, up 106.6% from $261.0 million in the same period of the prior fiscal year. However, organic sales at the Legacy CMCO unit rose 5.3% year over year, placing the group’s overall growth in the context of the Kito Crosby acquisition, which closed on February 3, 2026. On a quarterly basis, the CEO said revenue rose on continued strength in the Americas, alongside stronger-than-expected demand in Asia, Europe, the Middle East and Africa. Orders totaled $562.6 million, compared with $253.7 million a year earlier, while the company reported a 1.0-times book-to-bill ratio. The company said the ratio reflects strong conversion of orders into revenue.
Adjusted earnings before interest, taxes, depreciation and amortization were $111.2 million for the quarter, with a 20.6% margin, up 520 basis points from a year earlier. Adjusted net income rose 73.6% to $31.1 million from $17.9 million, while adjusted earnings per share fell to $0.61 from $0.62. Adjusted earnings per share exceeded analysts’ estimate of $0.38, and reported revenue of $539.3 million topped their estimate of $518.65 million, according to a report published by Investing.com on November 3. In contrast, the company recorded a net loss attributable to it of $25.5 million, or $0.76 per diluted share, compared with net income of $4.6 million a year earlier. The company said the loss included $12.5 million in acquisition and integration expenses.
Cash flow showed greater pressure in the first half of the fiscal year. Year-to-date free cash flow was $4.6 million after capital expenditures of $16.5 million, and cash payments related to the Kito Crosby acquisition totaled $24.3 million. As of September 30, the company reported a net leverage ratio under its credit agreement of 4.9 times and total liquidity of $532.0 million. The company kept its estimate of the normalized effective tax rate used to calculate adjusted earnings per share at 25%, and lowered its expected capital expenditure range for the fiscal year to $45–$55 million from $50–$60 million. These indicators provide parallel financial context for the higher annual earnings outlook.
Columbus McKinnon shares rose 16.75% in premarket trading on November 3 to $18.40, compared with the previous close of $15.76, according to Investing.com. The move followed the company’s report of results that exceeded analyst estimates for revenue and adjusted earnings per share, alongside higher fiscal-year outlook ranges. In the first quarter of the fiscal year, the company reported sales of $531.5 million and orders of $568.1 million; sales grew 125% year over year. The company said its second-quarter earnings call would begin on November 3 at 8:00 a.m. Eastern time, and that a replay would remain available through November 10. Fiscal 2027 ends on March 31, 2027.