CMCO Sales Jump 77% on Kito Crosby Deal, But Margin Squeeze Hits Earnings

Columbus McKinnon (NASDAQ:CMCO) reported fiscal first-quarter results on June 5, with revenue soaring 77.3% year-over-year to $437.8 million, significantly exceeding Wall Street forecasts. The surge was driven by the completed acquisition of Kito Crosby and robust short-cycle demand in the Americas. However, adjusted earnings per share of $0.24 fell 33.9% below consensus, triggering a stock decline from $15.51 to $14.30. CEO David Wilson cited transitional integration costs, disruption in the U.S. sales force, an unfavorable product mix, input-cost inflation, and tariff-related margin dilution. The divestiture of legacy U.S. hoist operations also weighed on profitability. Despite the miss, management expects margin expansion in coming quarters through cost synergies and price adjustments. The company projects steady sales growth, supported by a healthy backlog and strong quotation activity, though it flagged macroeconomic uncertainty in Europe and the Middle East. CFO Gregory Rustowicz emphasized debt reduction and free cash flow generation as near-term priorities.