Columbus McKinnon Reports $1.9 Million Net Loss and Decline in Revenue for Q1 Fiscal 2026

Columbus McKinnon Corporation reported a net loss of $1.9 million for the first quarter of fiscal 2026, a significant decline from a net income of $8.6 million in the same period last year. The company's revenue for the quarter ended June 30, 2025, was $235.9 million, down 1.6% from $239.7 million in the prior year. The decrease in revenue was attributed to a $9.4 million decline in sales volume, although this was partially offset by a $2.4 million increase from price adjustments and a favorable foreign currency translation impact of $3.1 million.

The company's gross profit also fell to $77.2 million, a decrease of 13.3% from $89 million in the previous year, resulting in a gross profit margin of 32.7%, down from 37.1%. Factors contributing to this decline included lower sales volume, unfavorable product mix, and increased costs associated with material inflation and business realignment efforts. Selling expenses rose to $28.5 million, while general and administrative expenses increased to $30.7 million, largely due to costs related to the pending acquisition of Kito Crosby Limited, which is expected to close in fiscal 2026.

Columbus McKinnon is in the process of acquiring Kito Crosby for approximately $2.7 billion, a move aimed at enhancing its scale and product offerings in the material handling sector. The acquisition is anticipated to significantly expand the company's geographic reach and product portfolio, particularly in lifting and securement solutions. The company incurred $8.1 million in acquisition-related expenses during the quarter, reflecting its commitment to integrating Kito Crosby into its operations.

Operationally, Columbus McKinnon reported an increase in inventories to $216.2 million, up from $198.6 million, as the company prepared for future demand amid ongoing supply chain challenges. The company’s cash and cash equivalents decreased to $28.9 million, down from $53.9 million at the end of the previous fiscal year, primarily due to cash used in operating activities. The company expects to continue managing its working capital effectively while navigating the impacts of inflation and market conditions.

Looking ahead, Columbus McKinnon remains focused on executing its strategic initiatives, including enhancing operational efficiency and expanding its product offerings. The company anticipates that the Kito acquisition will bolster its market position and drive future growth. However, it also acknowledges the potential risks associated with market fluctuations, competition, and integration challenges as it moves forward with its plans.