Columbus McKinnon (CMCO) | Credit Investor

Next 12 Months: Starting Case

$ in millions	Last 12 Months	Next Quarter (3Q27E)	vs. 3Q26A	Next 12 Months	Change
Revenue	$1,767	$548	111.8%	$2,150	21.7%
Adj. EBITDA	$50	$104	229.2%	$368	629.4%
Free Cash Flow	($153)	$22	31.5%	$40	126.4%
Net Debt, end of period	$2,301	$2,280		$2,261	(1.8%)
Net Debt / Adj. EBITDA	45.7x	18.6x		6.2x	-39.5x
Total Liquidity, end of period	$532	$554		$572	7.6%

The credit over the next year

Columbus McKinnon is now a levered combination with Kito Crosby: net leverage was 4.9x at September 2026 and FY27 interest guidance is $185 to $190 million, so the credit depends on orders holding near $550 to $570 million a quarter while price and synergies keep adjusted EBITDA margins above 20%. Adjusted gross margin swung from 32.7% to 38.1% in two quarters on tariffs, material costs and mix, which shows how fast profit can move on input costs. The test for the next year is whether free cash flow, only $4.6 million in the first half after deal costs, turns large enough to start paying down the term loan.

Leverage falls from 45.7x to 6.2x over the next four quarters on the starting case.
Free cash flow of $40mm is projected over the next year, enough to cover the $5mm of debt due in that time.
Net debt is roughly unchanged from $2.30bn to $2.26bn; maturing debt is assumed refinanced unless changed in the model.
Liquidity a year out is $572mm, against $532mm today.
Company guidance for fiscal 2027: adjusted EBITDA of $425mm to $440mm on its own definition.

Due inside a year: Other debt (building loan assumed with Kito Crosby) ($5mm).

Built from the inputs on the Projections tab of the model; change them there. A starting case from history, not a forecast.

Capital Structure

Cap Structure	Amt Out.	Mkt Price	Yield	Lev. Through	View
Unrestricted Cash	$110.9
Other debt (building loan assumed with Kito Crosby)	5.2	100.0%	2.70%	0.1x	Bullish
AR Securitization Facility	42.6	100.0%	N/a	0.9x	Bullish
2026 Revolving Credit Facility due 2031	59.6	100.0%	N/a	2.1x	Bullish
2026 Term Loan B due 2033	1,449.2	100.0%	N/a	30.9x	Neutral
7.125% Senior Secured Notes due 2033	900.0	100.8%*	6.98%	48.7x	Neutral
Finance lease (Hartland, WI manufacturing facility)	11.1	100.0%	N/a	49.0x	Neutral
Total Debt	$2,412.3			47.8x
Net Debt	$2,301.4			45.7x

Last Twelve Months

Revenue	$1,767
Implied Costs	(1,717)
Adj. EBITDA	$50
(-) Interest Expense	(120)
(-) Capex	(28)
Memo: FCF	($153)
Total Liquidity	$532.0

Next 12 months, starting case▲ Revenue $1.77bn → $2.15bn▲ Adj. EBITDA $50mm → $368mm▲ Free cash flow -$153mm → $40mm▼ Net leverage 45.7x → 6.2x▲ Liquidity $532mm → $572mm

Columbus McKinnon

			9/30/26						Face Value / Adj. EBITDA
Cap Structure	Coupon	Maturity	Amt Out.	Mkt Price	YTM	Next Call	Yield to Call	View	2022A	2023A	2024A	2025A	2026A	LTM	2Q28E LTM	2Q29E LTM
Unrestricted Cash			$110.9
Undrawn Revolver ($500mm facility)			421.1
Total Liquidity			$532.0

Other debt (building loan assumed with Kito Crosby)	2.70%	12/31/2026	5.2	100.0%	2.70%	N/a	N/a	Bullish
AR Securitization Facility	one-month SOFR +...	8/11/2028	42.6	100.0%	N/a	N/a	N/a	Bullish
2026 Revolving Credit Facility due 2031	S + 175 to 275	2/3/2031	59.6	100.0%	N/a	N/a	N/a	Bullish
2026 Term Loan B due 2033	S + 300	2/3/2033	1,449.2	100.0%	N/a	N/a	N/a	Neutral
7.125% Senior Secured Notes due 2033	7.125%	2/1/2033	900.0	100.8%*	6.98%	2/1/2029 @ 103.563	8.10%	Neutral
Finance lease (Hartland, WI manufacturing facility)	N/a	N/a	11.1	100.0%	N/a	N/a	N/a	Neutral
Total Secured Debt			$2,467.8						19.4x	16.4x	14.9x	22.6x	14.8x	49.0x	6.7x	6.7x
Net Secured Debt			$2,356.9						18.6x	15.7x	14.3x	21.6x	14.1x	46.8x	6.4x	6.4x

Other debt, discounts and issuance costs	N/a	N/a	(55.5)
Total Debt			$2,412.3						19.0x	16.1x	14.6x	22.1x	14.4x	47.8x	6.6x	6.6x
Net Debt			$2,301.4						18.1x	15.3x	13.9x	21.1x	13.8x	45.7x	6.2x	6.0x
						Adj. EBITDA			$127	$150	$165	$109	$167	$50	$368	$368

Key Financials

	2022A	2023A	2024A	2025A	2026A	LTM	2Q28E LTM	2Q29E LTM
Revenue	$907	$936	$1,014	$963	$1,194	$1,767	$2,150	$2,150
Y/Y Growth		3.3%	8.3%	(5.0%)	23.9%		21.7%	0.0%
(-) Cost of Revenue	(591)	(594)	(639)	(637)	(834)	(1,241)	(1,351)	(1,351)
Gross Profit	$316	$342	$375	$326	$360	$526	$799	$799
Gross Margin	34.8%	36.5%	37.0%	33.8%	30.1%	29.8%	37.2%	37.2%
(+/-) Other Operating Costs, net of D&A	(200)	(202)	(222)	(223)	(402)	(489)	(445)	(445)
EBITDA	$116	$140	$153	$103	($42)	$37	$354	$354
(+) Add-backs: stock comp, restructuring, impairments	11	10	12	6	210	13	13	13
Adj. EBITDA	$127	$150	$165	$109	$167	$50	$368	$368
Margin	14.0%	16.0%	16.3%	11.3%	14.0%	2.9%	17.1%	17.1%
(-) Restructuring and other cash add-backs	--	--	--	--	--	--	--	--
Cash EBITDA	$127	$150	$165	$109	$167	$50	$368	$368
(-) Interest Expense (Cash Only)	(19)	(26)	(35)	(30)	(46)	(120)	(234)	(234)
(-) Cash Taxes	(10)	(22)	(28)	(21)	(46)	(59)	(59)	(59)
(-) Capex	(13)	(13)	(25)	(21)	(18)	(28)	(34)	(34)
(+/-) Working Capital and Other	(50)	(19)	(35)	(13)	(222)	4	--	--
Memo: FCF	$36	$71	$42	$24	($164)	($153)	$40	$40
% of Debt	1.5%	2.9%	1.8%	1.0%	(6.8%)	(6.4%)	1.7%	1.7%

Liquidity

Unrestricted Cash	$110.9
Undrawn Revolver	421.1
Total Liquidity	$532.0
(-) Debt due through 2028	(47.8)
(+/-) Free cash flow, last twelve months	(153.2)
Liquidity after maturities and a year of cash flow	$331.0

Tranches are from the debt table in the latest quarterly or annual report.Blue figures are inputs in the model. Price is 100% of face unless marked *, which is a bond fund's own valuation from its SEC holdings report, not a traded price.Secured and unsecured are judged from each instrument's name. Adj. EBITDA is operating income plus D&A, stock compensation, restructuring and impairment charges as tagged in SEC filings; it is not the company's own adjusted figure. Free cash flow is cash from operations less capital spending.

The basket review for this company has not finished yet. When it does, this tab shows the dollar capacity to move value or prime lenders, the playbook moves that fit, and what they would do to each tranche. Meanwhile, see the liability management playbook.

Key Financials

	2022A	2023A	2024A	2025A	2026A	LTM	2Q28E LTM	2Q29E LTM
Revenue	$907	$936	$1,014	$963	$1,194	$1,767	$2,150	$2,150
Y/Y Growth		3.3%	8.3%	(5.0%)	23.9%		21.7%	0.0%
(-) Cost of Revenue	(591)	(594)	(639)	(637)	(834)	(1,241)	(1,351)	(1,351)
Gross Profit	$316	$342	$375	$326	$360	$526	$799	$799
Gross Margin	34.8%	36.5%	37.0%	33.8%	30.1%	29.8%	37.2%	37.2%
(+/-) Other Operating Costs, net of D&A	(200)	(202)	(222)	(223)	(402)	(489)	(445)	(445)
EBITDA	$116	$140	$153	$103	($42)	$37	$354	$354
(+) Add-backs: stock comp, restructuring, impairments	11	10	12	6	210	13	13	13
Adj. EBITDA	$127	$150	$165	$109	$167	$50	$368	$368
Margin	14.0%	16.0%	16.3%	11.3%	14.0%	2.9%	17.1%	17.1%
(-) Restructuring and other cash add-backs	--	--	--	--	--	--	--	--
Cash EBITDA	$127	$150	$165	$109	$167	$50	$368	$368
(-) Interest Expense (Cash Only)	(19)	(26)	(35)	(30)	(46)	(120)	(234)	(234)
(-) Cash Taxes	(10)	(22)	(28)	(21)	(46)	(59)	(59)	(59)
(-) Capex	(13)	(13)	(25)	(21)	(18)	(28)	(34)	(34)
(+/-) Working Capital and Other	(50)	(19)	(35)	(13)	(222)	4	--	--
Memo: FCF	$36	$71	$42	$24	($164)	($153)	$40	$40
% of Debt	1.5%	2.9%	1.8%	1.0%	(6.8%)	(6.4%)	1.7%	1.7%

Key Drivers

Driver	3Q26A	4Q26A	1Q27A	2Q27A	3Q27E	4Q27E	1Q28E	2Q28E	3Q28E	4Q28E	1Q29E	2Q29E	Sensitivity	Next 12m impact ($mm)
Orders booked $ millions per quarter	247.4	442.8	568.1	562.6	536.5	536.5	568.1	562.6	536.5	536.5	568.1	562.6	$1.0mm on revenue	383
Gross margin, GAAP % of net sales	34.5	23.5	27.5	34.8	37.1	37.1	37.1	37.1	37.1	37.1	37.1	37.1	$-5.4mm on cost of revenue	(151)
Price realization in net sales $ millions per quarter, year over year	6.1	8.1	7.1	10.1	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	$1.0mm on revenue	--
Selling, G&A, goodwill impairment and net gain on business sales % of net sales	23.6	50.9	22.6	21.2	21.2	21.2	21.2	21.2	21.2	21.2	21.2	21.2	$5.4mm on SG&A	(181)
Foreign currency translation effect on net sales $ millions per quarter, year over year	6.7	10.0	2.4	-0.5	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	$1.0mm on revenue	--

Columbus McKinnon is now a levered combination with Kito Crosby: net leverage was 4.9x at September 2026 and FY27 interest guidance is $185 to $190 million, so the credit depends on orders holding near $550 to $570 million a quarter while price and synergies keep adjusted EBITDA margins above 20%. Adjusted gross margin swung from 32.7% to 38.1% in two quarters on tariffs, material costs and mix, which shows how fast profit can move on input costs. The test for the next year is whether free cash flow, only $4.6 million in the first half after deal costs, turns large enough to start paying down the term loan.

Bottoms-Up Projections: starting case

$ in millions	3Q26A	4Q26A	1Q27A	2Q27A	3Q27E	4Q27E	1Q28E	2Q28E	3Q28E	4Q28E	1Q29E	2Q29E
Revenue	$259	$438	$532	$539	$548	$532	$532	$539	$548	$532	$532	$539
Y/Y Growth	10.5%	77.3%	125.3%	106.6%	111.8%	21.4%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Adj. EBITDA	$32	($111)	$38	$92	$104	$90	$84	$90	$104	$90	$84	$90
Margin	12.2%	(25.4%)	7.2%	17.0%	18.9%	16.9%	15.8%	16.7%	18.9%	16.9%	15.8%	16.7%
Free Cash Flow	$17	($174)	$20	($15)	$22	$8	$2	$8	$22	$8	$2	$8
Cash, end of period	36	97	98	111	133	141	143	151	173	181	184	192
Total Debt, end of period	449	2,393	2,377	2,412	2,412	2,412	2,412	2,412	2,412	2,412	2,412	2,412
Net Debt / Adj. EBITDA	4.4x	NA	NA	45.7x	18.6x	7.0x	6.1x	6.2x	6.1x	6.1x	6.1x	6.0x

Revenue is built from Industrial Products, Crane Solutions, Precision Conveyor Products, Engineered Products, each driven by volume and by price and mix against the same quarter a year earlier. Every cost line, interest, taxes, capital spending and working capital has its own input on the Projections tab of the model. This is a starting case built from history, not a forecast.

Earnings call: Q2 FY2027 (quarter ended September 30, 2026) · Nov 3, 2026

Slides Webcast and audio replay Investor relations site

Kito Crosby roughly doubled sales, margins rose, leverage edged down to 4.9x and full-year guidance went up again.

Takeaways

Net sales were $539.3 million, up 107% on the Kito Crosby deal that closed February 3, 2026. Legacy CMCO grew 5.3% on price and volume.
Adjusted EBITDA was $111.2 million with a 20.6% margin, up 520 basis points. Adjusted gross margin rose to 36.5%.
Cash flow is thin. Quarterly free cash flow was negative $15.4 million and year to date only $4.6 million, after $24.3 million of deal cash costs.
Interest expense jumped to $48.1 million for the quarter. A GAAP net loss of $25.5 million followed, with integration costs and a $15.3 million tax charge.
Credit agreement net leverage fell to 4.9x from 5.1x at March 31 on net debt of $2.28 billion. Total debt was $2.41 billion.
Liquidity was $532 million: $110.9 million cash plus $421.1 million of revolver room, down from $567 million at June 30.

Debt and capital

Debt is a term loan, senior secured notes and an AR securitization facility. $150 million is current.
The company says near-term cash goes to paying down debt to de-lever, while keeping the common dividend.
A $1.1 million cost of debt repricing was booked in the quarter, pointing to a loan repricing.
Dividends on the Series A convertible preferred are expected to accrue rather than be paid in cash during FY27. The preferred balance grew to $818 million.
Credit agreement EBITDA of $468 million includes a full-year Kito Crosby add-back and assumed synergies, so reported leverage leans on pro forma credit.

Guidance

FY27 net sales raised to $2.13 to $2.17 billion from $2.09 to $2.15 billion.
FY27 adjusted EBITDA raised to $425 to $440 million from $405 to $420 million.
FY27 adjusted EPS raised to $2.00 to $2.15 from $1.90 to $2.10.
Interest expense held at $185 to $190 million. Capex trimmed to $45 to $55 million. Depreciation and amortization assumptions reset after final purchase accounting.
This is the second raise this year. Q1 had already lifted the ranges set in June.

Tone: Confident and upbeat, citing integration and synergies ahead of plan, while cash generation stayed weak.

Q1 FY2027 (June 30, 2026), call July 30, 2026Slides · Webcast
Q4 FY2026 (March 31, 2026), call June 4, 2026Slides · Webcast
Q3 FY2026 (December 31, 2025)Slides · Webcast

Summary written with AI from Press release and slides only. The company does not publish a transcript or prepared remarks on its IR site.. Slides, audio and any transcript are the company's and open on its own site. Full transcripts from transcript vendors are not reproduced here.

Last quarter: Second quarter fiscal 2027

Sales doubled with the Kito Crosby acquisition, adjusted EBITDA margin reached 20.6%, and fiscal 2027 guidance was raised.

Results

Fiscal second quarter net sales were $539.3mm, up 106.6% from $261.0mm a year earlier. Kito Crosby, acquired February 3, 2026, contributed $300.2mm.
Adjusted EBITDA was $111.2mm against $40.2mm a year earlier. Adjusted EBITDA margin was 20.6%, up 520 basis points from 15.4%.
Free cash flow was negative $15.4mm in the quarter: operating activities used $4.6mm and capital spending was $10.8mm. For the six months, free cash flow was positive $4.6mm on $21.1mm of operating cash flow.
Net loss attributable to the company was $25.5mm, or $0.76 per share, after $48.1mm of interest expense, $30.0mm of intangible amortization and $12.5mm of acquisition and integration costs. Adjusted earnings per share were $0.61 against $0.62.

Why

The acquisition explains nearly all of the growth. A required divestiture, closed March 4, 2026, removed $33.9mm of prior-year sales.
Sales of the legacy business grew 5.3%, with pricing adding $10.1mm and volume $2.3mm.
Orders were $562.6mm, up 122%, for a book-to-bill of 1.0x. The company cites steady demand in the Americas and better than expected demand in Asia and EMEA.
Adjusted gross margin rose 120 basis points to 36.5%. The company says cost synergies from the integration are running ahead of plan.

Balance sheet and guidance

Cash was $110.9mm at September 30, 2026. Total liquidity was $532.0mm, including $421.1mm available on the revolver.
Total debt was $2.41bn. Net leverage as defined in the credit agreement was 4.9x, down from 5.1x at March 31, 2026. That measure uses EBITDA adjusted to assume a full year of Kito Crosby and full cost synergies.
The company says debt paydown is its near-term capital priority and it kept its $0.07 quarterly dividend. Cash costs tied to the acquisition were $24.3mm in the six months.
Raised: fiscal 2027 net sales of $2.13bn to $2.17bn, up from $2.09bn to $2.15bn.
Raised: fiscal 2027 adjusted EBITDA of $425mm to $440mm, up from $405mm to $420mm.
Raised: adjusted earnings per share of $2.00 to $2.15, up from $1.90 to $2.10.
Capital spending is now expected at $45mm to $55mm, down from $50mm to $60mm. Interest expense is held at $185mm to $190mm. No free cash flow guidance is given.

What to watch

Free cash flow was negative in the quarter and only $4.6mm in the first half, against interest expense guided at $185mm to $190mm for the year. Watch whether second-half cash flow supports the debt paydown the company describes.
Reported leverage of 4.9x relies on credit agreement EBITDA that assumes all cost synergies are already achieved. Watch actual synergy delivery and integration costs, which were $11.8mm in the quarter.
Book-to-bill was 1.0x and the raised guidance assumes first-half demand continues. Watch orders and legacy volume, which added only 1.0% in the quarter.

From the company's press release filed Nov 3, 2026. Figures in this section are as the company reports them, including its own adjusted EBITDA.

Filings

Earnings releases 8

Nov 3, 20268-K for Nov 3, 2026: Results; Regulation FD · Press release
Jul 30, 20268-K for Jul 30, 2026: Results; Regulation FD · Press release
Jun 4, 20268-K for Jun 4, 2026: Results; Regulation FD · Press release
Feb 9, 20268-K for Feb 9, 2026: Results; Regulation FD · Press release
Jan 14, 20268-K for Jan 14, 2026: Results; Regulation FD · Press release · Presentation or supplement · Press release
Oct 30, 20258-K for Oct 30, 2025: Results; Regulation FD · Press release
Jul 30, 20258-K for Jul 30, 2025: Results; Regulation FD · Press release
May 28, 20258-K for May 28, 2025: Results; Regulation FD · Press release

Annual reports (10-K) 5

Quarterly reports (10-Q) 12

Current reports (8-K) 20

Oct 26, 20268-K for Oct 26, 2026: Other event
Sep 22, 20268-K for Sep 21, 2026: Material agreement; New debt; Regulation FD
Aug 18, 20268-K for Aug 14, 2026: Director or officer change; Shareholder vote
Aug 4, 20268-K for Jul 31, 2026: Director or officer change
Jul 20, 20268-K for Jul 20, 2026: Other event
Jul 1, 20268-K for Jul 1, 2026: Director or officer change; Regulation FD
Jun 10, 20268-K for Jun 10, 2026: Regulation FD
Jun 8, 20268-K for Jun 8, 2026: Other event
Mar 23, 20268-K for Mar 23, 2026: Other event
Mar 17, 20268-K for Mar 17, 2026: Regulation FD
Mar 4, 20268-K for Mar 4, 2026: Acquisition or disposal completed
Feb 4, 20268-K for Jan 29, 2026: Material agreement; Agreement terminated; Acquisition or disposal completed; New debt; Equity sold; Director or officer change; Bylaw change; Regulation FD
Feb 2, 20268-K for Feb 2, 2026: Regulation FD
Jan 29, 20268-K for Jan 28, 2026: Regulation FD
Jan 27, 20268-K for Jan 27, 2026: Other event
Jan 23, 20268-K for Jan 22, 2026: Other event
Jan 20, 20268-K for Jan 20, 2026: Regulation FD; Other event
Jan 14, 20268-K for Jan 13, 2026: Material agreement; Regulation FD
Oct 20, 20258-K for Oct 20, 2025: Other event
Sep 24, 20258-K for Sep 23, 2025: Material agreement; New debt

Proxy statements 3

Other filings 4

Apr 30, 2021424B4
Apr 29, 2021S-1MEF
Apr 28, 2021S-1/A
Apr 20, 2021S-1

Links open the document on SEC EDGAR. Earnings call transcripts are not SEC filings and belong to their publishers, so they are not reproduced here; the press release and slides filed with each results 8-K are.

Coming up

Dec 31, 2026Maturity. Other debt (building loan assumed with Kito Crosby): $5mm outstanding comes due.
Feb 8, 2027Results. Quarterly results for the period ending 2026-12-31. The date is an estimate: last year's filing date moved forward a year.
Aug 11, 2028Maturity. AR Securitization Facility: $43mm outstanding comes due.

Recent 8-K filings

Nov 3, 2026Reported results; Regulation FD disclosure
Oct 26, 2026Other event
Sep 22, 2026Entered into a material agreement; Took on new debt or an obligation; Regulation FD disclosure
Aug 18, 2026Director or officer change; Shareholder vote
Aug 4, 2026Director or officer change
Jul 30, 2026Reported results; Regulation FD disclosure
Jul 20, 2026Other event
Jul 1, 2026Director or officer change; Regulation FD disclosure