Columbus McKinnon Signals Strong Q3 Ahead of Major Transformation

CHARLOTTE, N.C. – January 14, 2026 – Columbus McKinnon Corporation (Nasdaq: CMCO) today offered a positive preliminary glimpse into its third-quarter financial performance, releasing estimated results that suggest a solid operational footing and appear to surpass consensus analyst expectations. The announcement comes at a pivotal moment for the material handling solutions provider, as it stands on the cusp of a significant corporate transformation.

For the quarter ending December 31, 2025, the company projects net sales to fall between $250 million and $260 million. This range comfortably brackets the analyst consensus estimate of $241.60 million. Similarly, estimated Adjusted Earnings Per Share (EPS) are forecast between $0.58 and $0.63, ahead of the market's expectation of $0.57. Adjusted EBITDA is expected to land between $38 million and $40 million for the quarter.

While these figures paint a picture of a healthy core business, they represent only a snapshot in time. The company explicitly noted that these preliminary numbers do not yet account for the massive strategic shifts on its immediate horizon: the pending acquisition of Kito Crosby Limited and the related divestiture of its U.S. power chain hoist operations. The full, audited results and formal guidance are anticipated in early February.

A Business in Transition

The strong preliminary results provide a stable foundation as Columbus McKinnon prepares for its most significant strategic evolution in recent history. The company is in the final stages of acquiring Kito Crosby Limited in a deal valued at approximately $2.7 billion. This transformative merger is poised to effectively double the size of Columbus McKinnon, creating a global powerhouse in the intelligent motion and material handling industry with projected annual revenues of around $2.1 billion.

The strategic rationale behind the acquisition is clear: to expand geographic reach, particularly in Asia where Kito Crosby has a strong presence, and to create a comprehensive product portfolio that serves a wider array of end markets. The company is targeting approximately $70 million in annual cost synergies by the third year post-merger, a key factor for investors tracking the deal's long-term value creation.

To facilitate this massive undertaking and streamline the combined entity, Columbus McKinnon is simultaneously divesting a portion of its legacy business. The company has a definitive agreement to sell its U.S. power chain hoist and chain manufacturing facilities in Damascus, Virginia, and Lexington, Tennessee, to an affiliate of Pacific Avenue Capital Partners, LLC for $210 million. The net proceeds, estimated at $160 million after taxes and costs, are earmarked to pay down debt incurred from the Kito Crosby acquisition. This move not only aids in deleveraging the balance sheet but also proactively addresses potential product redundancies between the two merging companies.

Both the acquisition and the divestiture are expected to close within the first quarter of the 2026 calendar year, meaning the next earnings report will likely be the last to reflect Columbus McKinnon in its current form.

Performance in a Dynamic Market

While the headline numbers are positive, a closer look at the operational metrics reveals a nuanced performance landscape. Estimated orders for the third quarter range from $245 million to $250 million, a slight moderation from the $253.7 million in orders recorded in the second fiscal quarter. Likewise, the company's backlog is projected to be between $335 million and $345 million, representing a 3% sequential decrease at the midpoint from the prior quarter's $351.6 million.

However, this backlog remains robust and is up approximately 5% from the end of fiscal 2025, indicating sustained demand over a longer timeframe. This performance is set against the backdrop of a booming global material handling market, which is being propelled by the relentless growth of e-commerce, widespread investment in warehouse and distribution center automation, and a secular shift toward electric and robotic solutions to offset rising labor costs.

Competitors like Terex Corporation and Konecranes have also reported strong results and growing order books, confirming the sector's overall health. Columbus McKinnon's strategic pivot appears timed to capitalize on these powerful tailwinds, positioning the enlarged company to compete more effectively for larger, more complex automation projects worldwide.

The Fine Print: A Change in Reporting

Alongside its financial estimates, Columbus McKinnon announced a technical but important change to its financial reporting. The company has updated its definition of Adjusted EBITDA, a key non-GAAP metric used by investors to gauge operational profitability. The new definition will include an addback for stock-based compensation expense.

In its press release, the company explained the change was "driven by the Company's belief that adding back the expense associated with stock-based compensation...will provide the Company's investors with a better understanding of our underlying performance from period to period and enable them to better compare our performance against that of our peer companies."

Stock-based compensation is a non-cash expense, and excluding it from adjusted earnings metrics is a common practice in many industries. This change aligns Columbus McKinnon's reporting more closely with many of its peers, theoretically allowing for a more direct, apples-to-apples comparison of operational efficiency. The company confirmed that full reconciliations of all non-GAAP figures to their nearest GAAP equivalents will be provided with the final earnings release.

For now, the preliminary report serves its purpose: it signals to the market that the company's existing operations are performing well, even as management executes a complex and ambitious strategic realignment. The market will be watching closely as the company navigates this complex integration, a process that will ultimately determine the success of its ambitious transformation.