Columbus McKinnon Q4 Sales Up 10.5% to $258.7M, Backlog +15.2%
Columbus McKinnon reported Q4 sales of $258.7 million, up 10.5% year-over-year, with adjusted EPS of $0.62 beating estimates by 6.6% and backlog rising 15.2% to $341.6 million. Operating margin narrowed to 6.3% from 10.9% due to tariffs and mix pressures, while the Kito Crosby acquisition targets $70 million in synergies.
1. Q4 Financial Performance
Columbus McKinnon posted Q4 revenue of $258.7 million, a 10.5% increase year-over-year, exceeding guidance by 5.3%. Adjusted EPS reached $0.62, beating estimates by 6.6%, and backlog grew to $341.6 million, up 15.2% at quarter-end.
2. Margin Pressures
Operating margin contracted to 6.3% from 10.9% last year, driven by higher tariff costs and a shift toward lower-margin product mix, particularly in precision conveyance and rail shipments. Management plans price increases and operational actions to offset these pressures.
3. Acquisition and Synergy Roadmap
The completed acquisition of Kito Crosby is expected to nearly double the company’s revenue base and generate $70 million in synergies over three years, with 20% realization in year one. Integration efforts will focus on procurement consolidation and global footprint expansion.
4. Outlook and Catalysts
Near-term performance will depend on synergy execution, margin recovery efforts, and the planned divestiture of U.S. power chain operations to optimize portfolio focus. Robust U.S. demand and a record backlog provide some cushion against softer EMEA markets.