The chart below shows how CMCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CMCO sees a +0.28% change in stock price 10 days leading up to the earnings, and a -1.14% change 10 days following the report. On the earnings day itself, the stock moves by -0.65%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong EPS and Sales Growth: Adjusted EPS of $0.56 on $234 million in sales, with a healthy project-related backlog up 3% driven by strength in precision conveyance and linear motion.
Sales Growth in Key Segments: Precision conveyance sales grew by 16% and linear motion sales increased by 8% year-over-year, indicating strong demand in these segments.
Free Cash Flow Performance: Generated $6.2 million of free cash flow in the quarter, reflecting a free cash flow conversion of 266% on a trailing 12-month basis.
Acquisition Impact on Sales: The acquisition of Kito Crosby is expected to create a combined entity with over $2 billion in sales and a pro forma adjusted EBITDA margin of 23%.
Cost Synergies from Acquisition: Expected annualized net cost synergies of $70 million by the end of year 3 from the Kito Crosby acquisition, enhancing operational efficiencies and financial performance.
Negative
Earnings Performance Shortfall: Columbus McKinnon Corporation reported an adjusted EPS of $0.56, missing expectations of $0.74, indicating a significant shortfall in earnings performance.
Sales Decline Analysis: Net sales decreased by 8% year-over-year to $234.1 million, primarily driven by a 9% decline in short-cycle sales due to U.S. policy uncertainty and economic softness in Europe.
Gross Profit Decline: Gross profit fell by $11.8 million compared to the prior year, impacted by $3.1 million in factory closure expenses and a $2 million increase in product liability expenses, reflecting operational challenges.
Free Cash Flow Decline: Free cash flow decreased by $16.9 million year-over-year to $6.2 million, attributed to elevated inventory levels and costs related to unbilled overtime revenue recognition, indicating cash flow pressures.
Net Leverage Ratio Increase: The net leverage ratio increased to three times, up 0.3 times from the previous quarter, reflecting a deterioration in financial flexibility amid ongoing macroeconomic challenges.
Columbus McKinnon Corporation (NASDAQ:CMCO) Q3 2025 Earnings Call Transcript
CMCO.O
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