Columbus McKinnon Achieves 24% Sales Growth, Takes $200M Goodwill Hit, Eyes 1–4% Growth
CMCO•Columbus McKinnon’s 2026 net sales rose 24% after acquiring Kito Crosby and boosting Monterrey production, driving a 25% jump in linear motion sales while triggering a $200 million goodwill impairment and a $103 million gain on hoist divestiture. Fiscal 2027 guidance forecasts 1–4% organic growth, $14 million savings and net leverage under 4x.
1. Acquisition and Divestiture Impact
Columbus McKinnon completed the transformative acquisition of Kito Crosby while divesting its legacy U.S. power chain hoist operations to sharpen focus on intelligent motion solutions. The unified organizational structure implemented from Day 1 is already delivering third-party spend savings and contract harmonization synergies.
2. Fiscal 2026 Performance
The company delivered 24% net sales growth in fiscal 2026, fueled by the Kito Crosby deal and robust short-cycle demand in the Americas. Linear motion sales jumped 25% following a successful production transition to Monterrey, though EMEA order conversion remained sluggish and U.S. sales saw temporary distractions post-divestiture.
3. Fiscal 2027 Guidance and Strategy
Guidance assumes pro forma organic growth of 1%–4%, excluding revenue synergies and the divested business, with performance weighted to the back half as the company realizes $14 million in savings and accelerates growth initiatives. Management prioritizes debt reduction, targeting a net leverage ratio below 4x within two years while managing European uncertainties and potential Middle East disruptions.
4. Non-Recurring Items and Financial Impacts
The fourth quarter included a $200 million noncash goodwill impairment and a $37 million acquisition-related inventory step-up expense expected to amortize by Q1 fiscal 2027, alongside a $103 million gain on the hoist business sale. The company flags a potential $20 million–$24 million annual revenue disruption if Middle East tensions persist.
