Columbus McKinnon Corp. (CMCO) is making some serious portfolio moves, and investors seem to like what they're seeing. Shares climbed more than 5% Wednesday after the company dropped preliminary fiscal third-quarter numbers and announced a major asset sale designed to clear the deck for its upcoming Kito Crosby acquisition.
The preliminary read looks solid. Columbus McKinnon expects fiscal third-quarter net sales between $250 million and $260 million, adjusted EBITDA of $38 million to $40 million, and adjusted EPS of 58 cents to 63 cents. For the nine-month period, the company projects sales of $747 million to $757 million, adjusted EBITDA of $115 million to $117 million, and adjusted EPS of $1.70 to $1.75.
What the Order Book Says
Orders are projected at $245 million to $250 million for the quarter, which is slightly below the prior quarter's $253.7 million. That sounds like a dip, but the backlog tells a more nuanced story. It's expected to land between $335 million and $345 million, down modestly from last quarter at the midpoint but still above where it stood at the end of fiscal 2025. Translation: demand is holding steadier than a quick glance at orders might suggest.
The company was careful to note these figures are unaudited and could shift as the quarter-end close wraps up. It also hasn't provided GAAP reconciliations for the adjusted metrics yet, and the auditor hasn't weighed in on these preliminary ranges. Additionally, Columbus McKinnon updated its adjusted EBITDA definition to include stock-based compensation add-backs, aligning with how peers typically report.
Clearing the Portfolio for Kito Crosby
Now for the big strategic news: Columbus McKinnon has signed a definitive agreement to sell its U.S. power chain hoist and chain manufacturing operations to an affiliate of Pacific Avenue Capital Partners for $210 million in cash, plus up to $25 million in potential earn-out payments. The move is all about reducing portfolio overlap and smoothing the path for integrating Kito Crosby once that deal closes.
Speaking of which, management reiterated that the Kito Crosby Limited acquisition remains on track to close in the first quarter of 2026, pending DOJ review. The company is still targeting $70 million in annual net run-rate cost synergies from the combination. Post-close, management expects strong cash generation to drive deleveraging, with a goal of bringing net leverage below 4.0x by the end of fiscal 2028.
Columbus McKinnon will release its full fiscal third-quarter results before the market opens on Monday, February 9, 2026, followed by a conference call later that day.
CMCO Price Action: Columbus McKinnon shares were up 5.19% at $21.07 at the time of publication on Wednesday.
