Columbus McKinnon Reports 5% Decline in Fiscal Year 2025 Net Sales, Adjusted Operating Income Drops 22.5% in Q4

Reuters
28 May
Columbus McKinnon Reports 5% Decline in Fiscal Year 2025 Net Sales, Adjusted Operating Income Drops 22.5% in Q4

Columbus McKinnon Corporation reported a decrease in net sales to $246.9 million for the fourth quarter of fiscal 2025, marking a 7% decline compared to the same period last year. The decline in sales was attributed to a 2% negative impact from foreign exchange rates and reduced short cycle demand. However, orders increased by 2%, driven by a 14% rise in precision conveyance and automation. The company posted a net loss of $2.7 million for the quarter, translating to a net margin of -1.1%. This was influenced by significant costs related to the pending acquisition of Kito Crosby, amounting to $8.5 million, alongside $3.8 million in factory consolidation costs and $2.4 million in Monterrey, MX start-up costs. Columbus McKinnon's gross profit declined by 15.4% to $79.8 million, with a gross margin of 32.3%, down from 35.5% in the previous year. Adjusted Gross Profit also decreased by 10.4% to $87.0 million. The company reported an adjusted operating income of $24.1 million, a reduction from $31.1 million in the previous year, and an adjusted EBITDA of $36.1 million, down 16.1%. In the fiscal year 2025, the company repaid $60.7 million of debt. Additionally, Columbus McKinnon is continuing with its strategic initiatives, including the pending acquisition of Kito Crosby, which involved costs of $10.3 million. The company remains focused on enhancing its earnings power and cash generation capability.

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