Columbus McKinnon Reports Strong Q3 2026 Earnings Amid Kito Crosby Acquisition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy CMCO?
Source: seekingalpha
- Acquisition Completed: Columbus McKinnon has finalized the acquisition of Kito Crosby, which management describes as a 'transformational acquisition,' expected to drive future growth by integrating the technical expertise and customer-centric cultures of both companies.
- Significant Sales Growth: The company reported net sales of $258.7 million, a 10.5% year-over-year increase, primarily driven by higher volumes, price increases, and favorable currency translation, indicating strong demand in the North American market.
- Cost Synergy Goals: Management anticipates achieving $70 million in annual cost synergies over the next three years, with approximately 20% expected in the first year, increasing to 60% in the second year, and reaching 100% in the third year, which will significantly enhance the company's profitability.
- Financial Outlook Adjustment: Due to the acquisition and the impending divestiture, management has withdrawn the standalone fiscal 2026 guidance, indicating a near-term dilutive impact on GAAP earnings per share, while still aiming for margin neutrality by fiscal 2027.
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Analyst Views on CMCO
Wall Street analysts forecast CMCO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMCO is 15.00 USD with a low forecast of 15.00 USD and a high forecast of 15.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 22.760
Low
15.00
Averages
15.00
High
15.00
Current: 22.760
Low
15.00
Averages
15.00
High
15.00
About CMCO
Columbus McKinnon Corporation is a designer, manufacturer and marketer of intelligent motion solutions for material handling. Its key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems. The Company focuses on commercial and industrial applications that require the safety and quality provided by its design and engineering know-how. Its products include a wide variety of electric, air-powered, lever, and hand hoists, hoist trolleys, explosion-protected hoists, winches, and aluminum work stations; alloy and carbon steel chain; forged attachments, such as hooks, shackles, textile slings, clamps, and load binders; mechanical and electromechanical actuators and rotary unions; below-the-hook special purpose lifters; and power and motion control systems, among others. Its target market verticals include manufacturing, transportation, energy and utilities, aerospace, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Columbus McKinnon Reports Strong Q3 2026 Earnings Amid Kito Crosby Acquisition
- Acquisition Completed: Columbus McKinnon has finalized the acquisition of Kito Crosby, which management describes as a 'transformational acquisition,' expected to drive future growth by integrating the technical expertise and customer-centric cultures of both companies.
- Significant Sales Growth: The company reported net sales of $258.7 million, a 10.5% year-over-year increase, primarily driven by higher volumes, price increases, and favorable currency translation, indicating strong demand in the North American market.
- Cost Synergy Goals: Management anticipates achieving $70 million in annual cost synergies over the next three years, with approximately 20% expected in the first year, increasing to 60% in the second year, and reaching 100% in the third year, which will significantly enhance the company's profitability.
- Financial Outlook Adjustment: Due to the acquisition and the impending divestiture, management has withdrawn the standalone fiscal 2026 guidance, indicating a near-term dilutive impact on GAAP earnings per share, while still aiming for margin neutrality by fiscal 2027.
See More
Columbus McKinnon Q3 Earnings Exceed Expectations
- Strong Earnings Performance: Columbus McKinnon's Q3 non-GAAP EPS of $0.62 surpassed expectations by $0.04, indicating a sustained improvement in profitability that boosts investor confidence.
- Significant Revenue Growth: The company reported Q3 revenue of $258.66 million, reflecting a 10.5% year-over-year increase and exceeding market expectations by $12.99 million, showcasing robust performance amid recovering market demand and solidifying its market position.
- Expansion Financing Plans: Columbus McKinnon plans to raise $1.25 billion through senior notes and loans, a move that will provide financial support for future expansions and investments, aligning with its long-term growth strategy.
- Industry Conference Presentation: Columbus McKinnon presented at Baird's 55th Annual Global Industrial Conference, enhancing its visibility in the industry and providing potential investors with deeper business insights while fostering connections with industry leaders.
See More
Bernzott Capital Fully Liquidates Hillenbrand Position
- Complete Liquidation: On February 3, 2026, Bernzott Capital sold 389,330 shares of Hillenbrand, with an estimated transaction value of $10.53 million, reflecting the fund's rapid response to market conditions.
- Asset Value Decline: This transaction resulted in a $10.53 million decrease in the quarter-end position value, showcasing the dual impact of trading activity and share price movement, marking a significant reduction in the company's importance within the fund's asset management.
- Full Exit: Following this trade, Bernzott Capital held zero shares in Hillenbrand, which previously accounted for 5.0% of the fund's assets under management, indicating a complete abandonment of this investment.
- Acquisition Context: The announcement of Hillenbrand's acquisition by Lone Star Funds at $32 per share prompted Bernzott Capital to divest its holdings, as the acquisition premium of approximately 30% significantly diminished the strategic rationale for continuing to hold the stock.
See More
Bernzott Capital Fully Exits Hillenbrand Position
- Complete Exit: On February 3, 2026, Bernzott Capital Advisors fully liquidated its position in Hillenbrand by selling 389,330 shares for an estimated $10.53 million, reflecting a cautious stance towards the company's market outlook.
- Market Value Impact: The transaction resulted in a $10.53 million decline in Hillenbrand's quarter-end value, indicating investor sentiment deterioration following the acquisition announcement and the stock's price movements.
- Acquisition Context: Hillenbrand announced in October 2025 that it would be acquired by Lone Star Funds for $32 per share in cash, representing a 30% premium, but with the stock trading close to the buyout price, Bernzott opted to exit to pursue better investment opportunities.
- Poor Market Performance: Hillenbrand's stock has declined between 20% to 39% year-to-date in 2025, underperforming the S&P 500 by 21.6 percentage points, prompting investors to reassess their holdings to optimize asset allocation.
See More
Columbus McKinnon Completes Acquisition of Kito Crosby
- Acquisition Completion: Columbus McKinnon completed its acquisition of Kito Crosby on January 31, 2026, expecting to achieve $70 million in annual cost synergies, significantly enhancing its adjusted EBITDA margin and shareholder value.
- Leadership Team Restructuring: The newly formed Executive Leadership Team will consist of leaders from both Columbus McKinnon and Kito Crosby, aiming to leverage their combined industry expertise and innovation capabilities to drive integration and innovation in material handling solutions.
- Board Expansion: Following the acquisition, Columbus McKinnon's Board of Directors expanded from 9 to 12 members, with new directors bringing extensive experience in the industrial and manufacturing sectors to support long-term value creation for the company.
- Strategic Vision: CEO David Wilson stated that this acquisition marks a significant step towards becoming a global leader in intelligent motion solutions, aiming to enhance customer safety and reliability through resource and technology integration.
See More
Columbus McKinnon Secures Acquisition Clearance from DOJ
- Acquisition Approval: Columbus McKinnon has received clearance from the DOJ for its acquisition of Kito Crosby, marking a significant milestone in the company's efforts to expand its market share.
- Business Integration Plan: The company has agreed to divest its U.S. power chain hoist and chain operations to meet regulatory requirements, a move expected to optimize resource allocation and enhance overall operational efficiency.
- Cost Synergy Realization: The acquisition is projected to deliver $70 million in expected net annual run rate cost synergies, enhancing the company's Adjusted EBITDA margin and thereby increasing shareholder value and market competitiveness.
- Strategic Growth Outlook: This acquisition will enable the integration of two industry-leading teams, enhancing global customer service capabilities and providing investors with a more compelling financial performance, showcasing the company's leadership position in the industry.
See More
Columbus McKinnon Reports Strong Q3 2026 Earnings Amid Kito Crosby Acquisition
- Acquisition Completed: Columbus McKinnon has finalized the acquisition of Kito Crosby, which management describes as a 'transformational acquisition,' expected to drive future growth by integrating the technical expertise and customer-centric cultures of both companies.
- Significant Sales Growth: The company reported net sales of $258.7 million, a 10.5% year-over-year increase, primarily driven by higher volumes, price increases, and favorable currency translation, indicating strong demand in the North American market.
- Cost Synergy Goals: Management anticipates achieving $70 million in annual cost synergies over the next three years, with approximately 20% expected in the first year, increasing to 60% in the second year, and reaching 100% in the third year, which will significantly enhance the company's profitability.
- Financial Outlook Adjustment: Due to the acquisition and the impending divestiture, management has withdrawn the standalone fiscal 2026 guidance, indicating a near-term dilutive impact on GAAP earnings per share, while still aiming for margin neutrality by fiscal 2027.
See More
Columbus McKinnon Q3 Earnings Exceed Expectations
- Strong Earnings Performance: Columbus McKinnon's Q3 non-GAAP EPS of $0.62 surpassed expectations by $0.04, indicating a sustained improvement in profitability that boosts investor confidence.
- Significant Revenue Growth: The company reported Q3 revenue of $258.66 million, reflecting a 10.5% year-over-year increase and exceeding market expectations by $12.99 million, showcasing robust performance amid recovering market demand and solidifying its market position.
- Expansion Financing Plans: Columbus McKinnon plans to raise $1.25 billion through senior notes and loans, a move that will provide financial support for future expansions and investments, aligning with its long-term growth strategy.
- Industry Conference Presentation: Columbus McKinnon presented at Baird's 55th Annual Global Industrial Conference, enhancing its visibility in the industry and providing potential investors with deeper business insights while fostering connections with industry leaders.
See More
Bernzott Capital Fully Liquidates Hillenbrand Position
- Complete Liquidation: On February 3, 2026, Bernzott Capital sold 389,330 shares of Hillenbrand, with an estimated transaction value of $10.53 million, reflecting the fund's rapid response to market conditions.
- Asset Value Decline: This transaction resulted in a $10.53 million decrease in the quarter-end position value, showcasing the dual impact of trading activity and share price movement, marking a significant reduction in the company's importance within the fund's asset management.
- Full Exit: Following this trade, Bernzott Capital held zero shares in Hillenbrand, which previously accounted for 5.0% of the fund's assets under management, indicating a complete abandonment of this investment.
- Acquisition Context: The announcement of Hillenbrand's acquisition by Lone Star Funds at $32 per share prompted Bernzott Capital to divest its holdings, as the acquisition premium of approximately 30% significantly diminished the strategic rationale for continuing to hold the stock.
See More
Bernzott Capital Fully Exits Hillenbrand Position
- Complete Exit: On February 3, 2026, Bernzott Capital Advisors fully liquidated its position in Hillenbrand by selling 389,330 shares for an estimated $10.53 million, reflecting a cautious stance towards the company's market outlook.
- Market Value Impact: The transaction resulted in a $10.53 million decline in Hillenbrand's quarter-end value, indicating investor sentiment deterioration following the acquisition announcement and the stock's price movements.
- Acquisition Context: Hillenbrand announced in October 2025 that it would be acquired by Lone Star Funds for $32 per share in cash, representing a 30% premium, but with the stock trading close to the buyout price, Bernzott opted to exit to pursue better investment opportunities.
- Poor Market Performance: Hillenbrand's stock has declined between 20% to 39% year-to-date in 2025, underperforming the S&P 500 by 21.6 percentage points, prompting investors to reassess their holdings to optimize asset allocation.
See More
Columbus McKinnon Completes Acquisition of Kito Crosby
- Acquisition Completion: Columbus McKinnon completed its acquisition of Kito Crosby on January 31, 2026, expecting to achieve $70 million in annual cost synergies, significantly enhancing its adjusted EBITDA margin and shareholder value.
- Leadership Team Restructuring: The newly formed Executive Leadership Team will consist of leaders from both Columbus McKinnon and Kito Crosby, aiming to leverage their combined industry expertise and innovation capabilities to drive integration and innovation in material handling solutions.
- Board Expansion: Following the acquisition, Columbus McKinnon's Board of Directors expanded from 9 to 12 members, with new directors bringing extensive experience in the industrial and manufacturing sectors to support long-term value creation for the company.
- Strategic Vision: CEO David Wilson stated that this acquisition marks a significant step towards becoming a global leader in intelligent motion solutions, aiming to enhance customer safety and reliability through resource and technology integration.
See More
Columbus McKinnon Secures Acquisition Clearance from DOJ
- Acquisition Approval: Columbus McKinnon has received clearance from the DOJ for its acquisition of Kito Crosby, marking a significant milestone in the company's efforts to expand its market share.
- Business Integration Plan: The company has agreed to divest its U.S. power chain hoist and chain operations to meet regulatory requirements, a move expected to optimize resource allocation and enhance overall operational efficiency.
- Cost Synergy Realization: The acquisition is projected to deliver $70 million in expected net annual run rate cost synergies, enhancing the company's Adjusted EBITDA margin and thereby increasing shareholder value and market competitiveness.
- Strategic Growth Outlook: This acquisition will enable the integration of two industry-leading teams, enhancing global customer service capabilities and providing investors with a more compelling financial performance, showcasing the company's leadership position in the industry.
See More
