Columbus McKinnon Bets Big On Kito Crosby, Dumps Non-Core Units

Columbus McKinnon Corp. (NASDAQ:CMCO) stock rose after the company announced on Wednesday that it is providing a preliminary read on its fiscal third quarter and advancing major deal-related moves. The company expects fiscal third-quarter net sales of $250 million to $260 million, adjusted EBITDA of $38 million to $40 million and adjusted EPS of 58 cents to 63 cents, with nine-month sales projected at $747 million to $757 million, adjusted EBITDA of $115 million to $117 million, and adjusted EPS of $1.70 to $1.75. Orders And Backlog Trends Orders, a key forward indicator, are estimated at $245 million to $250 million for the quarter, slightly below the prior quarter's $253.7 million. The backlog is expected to be between $335 million and $345 million, down modestly from the prior quarter at the midpoint but above the level reported at the end of fiscal 2025, indicating steadier demand than the orders line alone suggests. Columbus McKinnon said the early figures are unaudited and could change as the quarter-end close wraps up. It also said it is not yet providing GAAP reconciliations for adjusted metrics, and its auditor has not issued any assurance on the preliminary ranges. The company also updated its definition of adjusted EBITDA, adding back stock-based compensation expense to enhance period-to-period comparability and align more closely with common peer reporting practices. Portfolio Streamlining And Asset Sale On the deal front, Columbus McKinnon announced that it 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, plus up to $25 million in potential earn-out payments. In a related update, a separate company announcement stated that the divestiture is intended to reduce portfolio overlap and support the planned integration of Kito Crosby. The company reiterated it expects the Kito Crosby Limited acquisition to close in the first quarter of 2026 as it works through DOJ review, and it maintained its $70 million annual net run-rate cost synergy outlook. Management expects post-close cash generation to drive deleveraging, targeting a net leverage ratio below 4.0x by the end of fiscal 2028. Columbus McKinnon said it 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, according to Benzinga Pro data. Photo via Shutterstock