# Columbus McKinnon Corp: Form 10-Q for the period ended Dec 31, 2025

- Company: [Columbus McKinnon Corp](/companies/cmco.md) (CIK 1005229)
- Form: 10-Q
- Filed: 2026-02-09
- Accepted by EDGAR: Feb 9, 2026, 17:05 ET
- Period: 2025-12-31
- Accession: 0001005229-26-000011
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1005229/000100522926000011/cmco-20251231.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1005229/000100522926000011/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-12-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-10-01 to 2025-12-31 | $258.7m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months, 2025-04-01 to 2025-12-31 | $755.6m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-10-01 to 2025-12-31 | $169.5m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 9 months, 2025-04-01 to 2025-12-31 | $499.1m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-10-01 to 2025-12-31 | $89.2m | us-gaap:GrossProfit |
| Gross profit | 9 months, 2025-04-01 to 2025-12-31 | $256.5m | us-gaap:GrossProfit |
| Research and development | 3 months, 2025-10-01 to 2025-12-31 | $4.4m | us-gaap:ResearchAndDevelopmentExpense |
| Research and development | 9 months, 2025-04-01 to 2025-12-31 | $14.0m | us-gaap:ResearchAndDevelopmentExpense |
| Operating income | 3 months, 2025-10-01 to 2025-12-31 | $16.2m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2025-04-01 to 2025-12-31 | $33.8m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2025-10-01 to 2025-12-31 | $1.8m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2025-04-01 to 2025-12-31 | $595.0k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-10-01 to 2025-12-31 | $6.0m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2025-04-01 to 2025-12-31 | $8.7m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-10-01 to 2025-12-31 | $0.21 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2025-04-01 to 2025-12-31 | $0.30 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-10-01 to 2025-12-31 | $0.21 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2025-04-01 to 2025-12-31 | $0.30 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-10-01 to 2025-12-31 | 28,941,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2025-04-01 to 2025-12-31 | 28,906,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months, 2025-04-01 to 2025-12-31 | $20.6m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months, 2025-04-01 to 2025-12-31 | $10.3m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 9 months, 2025-04-01 to 2025-12-31 | $6.0m | us-gaap:PaymentsOfDividends |
| Share repurchases | 9 months, 2025-04-01 to 2025-12-31 | $0 | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-12-31 | $35.5m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-12-31 | $481.9m | us-gaap:AssetsCurrent |
| Total assets | at 2025-12-31 | $1.76bn | us-gaap:Assets |
| Current liabilities | at 2025-12-31 | $263.1m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-12-31 | $839.7m | us-gaap:Liabilities |
| Current portion of debt | at 2025-12-31 | $50.0m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-12-31 | $922.9m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 23,223 characters.

### Executive Overview

The Company is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions, including motion control products, technologies, automated systems and services, that efficiently and ergonomically move, lift, position and secure materials. Our key products include hoists, crane components, precision conveyors, actuators, rigging tools, light rail workstations, and digital power and motion control systems. These are highly relevant, professional-grade solutions that solve customers’ critical material handling requirements.

Founded in 1875, we have grown to our current size and leadership position through organic growth and acquisitions. We developed our leading market position over our 150-year history by emphasizing technological innovation, manufacturing excellence and superior customer service. In accordance with our strategic framework, we are building out our business system (CMBS) and growth framework to be market-led, customer-centric, and operationally excellent with our people and values at the core. We believe this will transform Columbus McKinnon into a top-tier Intelligent Motion Solutions company. We expect our strategy will enhance shareholder value by expanding EBITDA margins and return on invested capital ("ROIC").

Our revenue base is geographically diverse with approximately 43% of net sales derived from customers outside the U.S. for the nine months ended December 31, 2025. We believe this diversity balances the impact of changes that occur in local economies, as well as benefits the Company by providing access to growing emerging markets. We monitor both U.S. and Eurozone Industrial Capacity Utilization statistics as well as the ISM Production Index as indicators of anticipated demand for our products. In addition, we continue to monitor the potential impact of other global and U.S. trends including, industrial production, trade tariffs, raw material cost inflation, interest rates, foreign currency exchange rates, and activity of end-user markets around the globe.

From a strategic perspective, we are investing in new products and channels as we focus on our greatest opportunities for growth. We have leading market positions in hoists, lifting and sling chain, forged attachments, actuators, precision conveyors and digital power and motion control systems for the material handling industry. We are focusing our sales and marketing activities toward select North American and global market sectors including general industrial, energy, automotive, heavy OEM, entertainment, construction and infrastructure, life sciences food and beverage, e-commerce and consumer products.

In fiscal 2024, the Company completed its acquisition of montratec GmbH ("montratec"), a leading automation solutions company that designs and develops intelligent automation and transport systems for interlinking industrial production and logistics processes. montratec product offerings compliment the previous acquisitions of both Dorner and Garvey, and these acquisitions are collectively expected to accelerate the Company’s shift to intelligent motion solutions and serve as a platform to expand capabilities in advanced, higher technology automation solutions.

Regardless of the economic climate and point in the economic cycle, we constantly explore ways to increase operating margins as well as further improve our productivity and competitiveness. We have specific initiatives to reduce lead-times, improve on-time deliveries, reduce warranty costs, and improve material and factory productivity. The initiatives are being driven by the implementation of our business operating system, CMBS. We are working to achieve these strategic initiatives through business simplification, operational excellence, and profitable growth initiatives. We believe these initiatives will enhance future operating margins.

Our principal raw materials and components purchases were approximately $375 million in fiscal 2025 (or 59% of Cost of products sold) and include steel, consisting of rod, wire, bar, structural, and other forms of steel; electric motors; bearings; gear reducers; castings; steel and aluminum enclosures and wire harnesses; electro-mechanical components; and standard variable drives and controls. These commodities are all available from multiple sources. We purchase most of these raw materials and components from a limited number of strategic and preferred suppliers under agreements which are negotiated on a company-wide basis through our global purchasing group. Currently, as a result of global inflation and tariffs, we are experiencing higher raw material costs and availability issues for select raw materials and components. To date, we have raised prices to our customers to cover these increased raw material costs and are working with our supply base to prioritize shipments and improve availability of key components.

We operate in a highly competitive and global business environment. We see a variety of opportunities in our markets and geographies, including trends toward automation and increasing labor productivity and the expansion of market opportunities in Asia and other emerging markets. While we execute our long-term growth strategy, we are supported by our strong free cash flow as well as our liquidity position and flexible debt structure.

On February 10, 2025, the Company announced that it had entered into a definitive agreement to acquire all of the issued and outstanding equity of Kito Crosby. The Kito Crosby Acquisition is expected to meaningfully improve the Company's scale, enhance our collective geographic reach, significantly expand our lifting securement and consumables portfolio and enhance our customer value proposition.

With global engineering, manufacturing, distribution, and operations, Kito Crosby provides a broad range of products and solutions for the most demanding applications. Kito Crosby’s people, products, solutions, and service have innovated the lifting and securement industry throughout its long history. Kito Crosby's iconic brands include Kito, Crosby, Harrington, Gunnebo Industries, and Peerless. We expect that the Kito Crosby Acquisition will strengthen our core lifting business and further the Company's position as a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning and securing materials. The Kito Crosby Acquisition closed on February 3, 2026, which was subsequent to the quarter ended December 31, 2025.

### Results of Operations

#### Three months ended December 31, 2025 and December 31, 2024

Net sales in the three months ended December 31, 2025 were $258,655,000, an increase of $24,517,000 or 10.5% from the three months ended December 31, 2024 net sales of $234,138,000. Net sales were positively impacted by $11,733,000 of sales volume and $6,076,000 due to price increases. Foreign currency translation favorably impacted sales by $6,708,000 for the three months ended December 31, 2025.

Gross profit in the three months ended December 31, 2025 was $89,157,000, an increase of $7,060,000 or 8.6% from the three months ended December 31, 2024 gross profit of $82,097,000. Gross profit margin was 34.5% in the fiscal 2026 third quarter compared to 35.1% in the fiscal 2025 third quarter. Higher sales volume increased gross profit by $1,673,000. In addition, gross profit was increased compared to the prior year by $1,555,000 due to lower start-up costs related to the Monterrey, Mexico facility, $460,000 of lower business realignment costs, $409,000 of lower factory consolidation activities and by $261,000 of lower product liability expense in the quarter. Price increases net of material inflation and other manufacturing cost changes contributed to an increase in gross profit of $317,000. The translation of foreign currencies had a favorable impact on gross profit of $2,385,000 during the three months ended December 31, 2025.

Selling expenses were $28,777,000 and $27,348,000, or 11.1% and 11.7% of net sales, in the fiscal 2026 and 2025 third quarters, respectively. Foreign currency translation had a $956,000 unfavorable impact on selling expenses in the three months ended December 31, 2025 with the remaining increase attributable to overall increase in sales during the period.

General and administrative expenses were $32,148,000 and $24,233,000, or 12.4% and 10.3% of net sales, for the three months ended December 31, 2025 and December 31, 2024, respectively. General and administrative expenses increased $6,342,000 as a result of the Kito Crosby Acquisition and higher employee related costs of $3,188,000. These increases were offset by $1,299,000 of expense in fiscal 2025 to record a reserve against an accounts receivable balance for a customer who declared bankruptcy in January of 2025 which did not recur in fiscal 2026. Foreign currency translation had an unfavorable impact of $407,000 on general and administrative expenses in the three months ended December 31, 2025.

Research and development expenses were $4,442,000 and $5,325,000, or 1.7% and 2.3% of net sales, in both the fiscal 2026 and 2025 third quarter, respectively. The reduction in research and development expenses is primarily related to reduced labor and benefit costs.

Amortization of intangibles was $7,622,000 and $7,501,000 in the fiscal 2026 and 2025 third quarters, respectively, with the fluctuations related to foreign currency during the respective periods.

Interest and debt expense was $8,312,000 in the third quarter ended December 31, 2025 compared to $7,698,000 in the third quarter ended December 31, 2024. The increase is the result of increasing variable interest rates year over year due to the expiration of a favorable interest rate swap in February 2025.

Investment income was $395,000 in the third quarter ended December 31, 2025 compared to $54,000 in the third quarter ended December 31, 2024. Investment income relates to the mark-to-market adjustments on the marketable securities held in the Company’s wholly owned captive insurance subsidiary and the Company's equity method investment in EMC, described in Note 6 of the financial statements.

Income tax expense as a percentage of the pre-tax income was 23% was 33% in the three months ended December 31, 2025 and December 31, 2024, respectively. Typically, these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.

#### Nine months ended December 31, 2025 and December 31, 2024

Net sales in the nine months ended December 31, 2025 were $755,622,000, an increase of $39,484,000 or 5.5% from the nine months ended December 31, 2024 net sales of $716,138,000. Net sales were positively impacted by $13,474,000 due to price increases, and $11,391,000 of favorable sales volume. Foreign currency translation favorably impacted sales by $14,619,000 for the nine months ended December 31, 2025.

Gross profit in the nine months ended December 31, 2025 was $256,539,000, an increase of $10,669,000 or 4.3% from the nine months ended December 31, 2024 gross profit of $245,870,000. Gross profit margin was 34.0% in the nine months ended December 31, 2025 compared to 34.3% in the nine months ended December 31, 2024. Gross profit compared to the prior year increased by $10,464,000 due to lower factory consolidation activities, $1,934,000 due to lower start-up costs related to the Monterrey, Mexico facility, $261,000 of lower product liability expense and $171,000 of costs due to Hurricane Helene recognized in the prior year. In addition, gross profit was reduced by $522,000 of net business realignment costs, and current year acquisition and integration costs reduced gross profit by $67,000 related to the Kito Crosby Acquisition. Unfavorable mix reduced gross profit by $371,000. Price increases net of material inflation and other manufacturing cost changes reduced gross profit by $6,378,000. The translation of foreign currencies had a favorable impact on gross profit of $5,177,000 during the nine months ended December 31, 2025.

Selling expenses were $86,430,000 and $82,044,000, or 11.4% and 11.5% of net sales, in the nine months ended December 31, 2025 and 2024, respectively. Foreign currency translation had a $2,278,000 unfavorable impact on selling expenses in the nine months ended December 31, 2025 with the remaining increase attributable to overall increase in sales during the period.

General and administrative expenses were $99,277,000 and $74,043,000, or 13.1% and 10.3% of net sales, in the nine months ended December 31, 2025 and 2024, respectively. General and administrative expenses increased $24,373,000 as a result of the Kito Crosby Acquisition and higher employee related costs of $2,756,000. These increases were offset by $1,299,000 of expense to record a reserve against an accounts receivable balance for a customer who declared bankruptcy in January of 2025. Foreign currency translation had an unfavorable impact of $910,000 on general and administrative expenses in the nine months ended December 31, 2025.

Research and development expenses were $14,044,000 and $17,593,000, or 1.9% and 2.5% of net sales, in the nine months ended December 31, 2025 and 2024, respectively. The reduction in research and development expenses is primarily related to reduced labor and benefit costs.

Amortization of intangibles was $22,940,000 and $22,548,000 in the nine months ended December 31, 2025 and 2024, respectively, with fluctuations related to foreign currency during the respective periods.

Interest and debt expense was $25,757,000 in the nine months ended December 31, 2025 compared to $24,285,000 in the nine months ended December 31, 2024. The increase is the result of increasing variable interest rates year over year due to the expiration of a favorable interest rate swap in February 2025.

Investment income was $1,965,000 in the nine months ended December 31, 2025 compared to $873,000 in the nine months ended December 31, 2024. Investment income relates to the mark-to-market adjustments on the marketable securities held in the Company’s wholly owned captive insurance subsidiary and the Company's equity method investment in EMC, described in Note 6 of the financial statements.

Income tax expense as a percentage of the pre-tax income was 6% and income tax benefit as a percentage of the pre-tax loss was (22)% in the nine months ended December 31, 2025 and December 31, 2024, respectively. Typically, these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.

During the nine months ended December 31, 2025, income tax was favorably impacted by the Act for an Immediate Tax Investment Program to Strengthen Germany as a Business Location (the "New German Tax Law"). The New German Tax Law enacted in July 2025 will lower the German corporate income tax rate from 15% to 10% by 2032. The associated revaluation of the Company’s German net deferred tax liabilities results in an income tax benefit of approximately $3,200,000 for the nine months ended December 31, 2025. The effective tax rate for the nine months ended December 31, 2025 also reflects an unfavorable impact of approximately $749,000 related to the recognition of a U.S. state tax reserve. The reserve primarily relates to the valuation of state tax attributes and if settled would have minimal cash tax impact. Refer to Note 13 of the financial statements for additional information.

### Liquidity and Capital Resources

Cash, cash equivalents, and restricted cash totaled $35,734,000 at December 31, 2025, a decrease of $18,199,000 from the March 31, 2025 balance of $53,933,000.

#### Cash flow from operating activities

Net cash provided by operating activities was $20,595,000 for the nine months ended December 31, 2025 compared to net cash provided by operating activities of $10,000,000 for the nine months ended December 31, 2024. Net income of $8,695,000 along with non-cash adjustments of $40,858,000 contributed to cash inflows from operations. The non-cash adjustments included $36,620,000 of depreciation and amortization, $7,779,000 of stock-based compensation and $7,321,000 of non-cash lease expense offset by $11,472,000 of deferred income taxes and related valuation allowances. Changes in working capital which reduced cash from operations by $22,686,000 as a result of an increase of $15,997,000 in inventories, a decrease of $3,616,000 in trade payables, an increase in trade accounts receivable of $3,480,000, and an increase in prepaid expenses and other current assets of $403,000, offset by an increase in accrued expenses of $810,000. The increase in inventories relates to purchases made in advance of expected future demand. Cash provided for operations was also reduced by a decrease of $8,875,000 in other non-current liabilities primarily due to lease payments for the nine months ended December 31, 2025.

#### Cash flow from investing activities

Net cash used for investing activities was $6,830,000 for the nine months ended December 31, 2025 compared to $14,222,000 for the nine months ended December 31, 2024. The use of cash for the nine months ended December 31, 2025 primarily consisted of $10,347,000 in capital expenditures offset by $3,257,000 of proceeds received from sale of two previously closed manufacturing facilities.

#### Cash flow from financing activities

Net cash used for financing activities was $30,520,000 and $69,499,000 for the nine months ended December 31, 2025 and December 31, 2024, respectively. The most significant uses of cash in fiscal 2026 were for $21,821,000 of debt repayments and $6,025,000 of dividend payments. Cash flows from hedging activities related to the Company's cross currency swap are classified as financing activities in the Statement of Cash Flows which resulted in a net cash outflow of $1,301,000 during the nine months ended December 31, 2025.

We believe that our cash on hand, cash flows, and borrowing capacity under our Revolving Credit Facility will be sufficient to fund our ongoing operations and debt obligations, and capital expenditures for at least the next twelve months. This belief is dependent upon successful execution of our current business plan and effective working capital utilization. No material restrictions exist in accessing cash held by our non-U.S. subsidiaries. We expect to meet our funding needs with cash provided by our U.S. operations, as well as by repatriating non-U.S. cash. We do not expect to incur significant incremental U.S. taxes as we repatriate funds. As of December 31, 2025, $34,314,000 of cash and cash equivalents were held by foreign subsidiaries.

Refer to Note 9 of the financial statements for further discussion of the Company's long-term debt and financing costs.

### Capital Expenditures

In addition to keeping our current equipment and plants properly maintained, we are committed to replacing, enhancing and upgrading our property, plant and equipment to support new product development, improve productivity and customer responsiveness, reduce production costs, increase flexibility to respond effectively to market fluctuations and changes, meet environmental requirements, enhance safety and promote ergonomically correct work stations. Consolidated capital expenditures for the nine months ended December 31, 2025 and December 31, 2024 were $10,347,000 and $15,266,000, respectively. We expect capital expenditure spending in fiscal 2026 to range from $12,000,000 to $16,000,000.

### Inflation and Other Market Conditions

Our costs are affected by inflation in the U.S. economy and, to a lesser extent, in non-U.S. economies including those of Europe, Canada, Mexico, South America, and Asia-Pacific. We do not believe that general inflation has had a material effect on our results of operations over the periods presented despite rising inflation due to our ability to pass on rising costs through price increases. We are currently experiencing higher raw material costs as a result of tariffs, which we expect to recover with pricing actions. In the future, we may not be able to pass on these cost increases to our customers.

### Goodwill Impairment Testing

We test goodwill for impairment at least annually and more frequently whenever events occur or circumstances change that indicate there may be impairment. These events or circumstances could include a significant long-term adverse change in the business climate, poor indicators of operating performance, or a sale or disposition of a significant portion of a reporting unit.

We test goodwill at the reporting unit level, which is one level below our operating segment. We identify our reporting units by assessing whether the components of our operating segment constitute businesses for which discrete financial information is available and segment management regularly reviews the operating results of those components. We also aggregate components that have similar economic characteristics into single reporting units (for example, similar products and / or services, similar long-term financial results, product processes, classes of customers, etc.). We have three reporting units: the Linear Motion Products reporting unit, the Rest of Products reporting unit, and the Precision Conveyance reporting unit, which have goodwill totaling $9,699,000, $320,083,000, and $401,764,000, respectively, as of December 31, 2025.

We currently do not believe that it is more likely than not that the fair value of any of our reporting units is less than its applicable carrying value. Additionally, we currently do not believe that we have any significant impairment indicators. However, if the projected long-term revenue growth rates, profit margins, or terminal growth rates are significantly lower, and /or the estimated weighted-average cost of capital is higher, future testing may indicate impairment of one or more of the Company’s reporting units and, as a result, the related goodwill may be impaired.

Refer to our 2025 Form 10-K for additional information regarding our annual goodwill impairment process.

### Seasonality and Quarterly Results

Quarterly results may be materially affected by the timing of large customer orders, periods of high vacation and holiday concentrations, legal settlements, gains or losses in our portfolio of marketable securities, restructuring charges, favorable or unfavorable foreign currency translation, divestitures and acquisitions. Therefore, the operating results for any particular fiscal quarter are not necessarily indicative of results for any subsequent fiscal quarter or for the full fiscal year.

### Effects of New Accounting Pronouncements

Information regarding the effects of new accounting pronouncements is included in Note 17 to the accompanying consolidated financial statements included in this Quarterly Report on Form 10-Q.

## Controls and procedures

As filed, 1,219 characters.

As of December 31, 2025, an evaluation was performed under the supervision and with the participation of the Company’s management, including our Chief Executive Officer (the Company's principal executive officer) and Chief Financial Officer (the Company's principal financial officer), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. These disclosure controls and procedures have been designed to provide reasonable assurance that information required to be disclosed in reports filed or submitted under the Exchange Act is made known to them on a timely basis, and that such information is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Based on that evaluation, the Company’s management, including our Chief Executive Officer and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective as of December 31, 2025.

There have been no changes in the Company’s internal control over financial reporting during the most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 14,105 characters.

There have been no material changes from the risk factors as previously disclosed in the 2025 Form 10-K except as set forth below. The risks and uncertainties described in our 2025 Form 10-K and below are those that we have identified as material, but are not the only risks or uncertainties facing Columbus McKinnon. This list in our 2025 Form 10-K and below are not all-inclusive, and our business could also be materially adversely affected by additional risks that are not presently known to us or that we currently consider to be immaterial. As a result, the trading price of our common stock could decline, and you could lose all or part of your investment in our common stock.

***We have recorded goodwill and other intangible assets in connection with our prior acquisitions. Goodwill and other acquired intangible assets could become impaired and adversely affect our future operating results.***

We have accounted for business acquisitions, including our prior acquisitions of montratec, Dorner Mfg. Corp and Garvey Corporation, which are each part of our Precision Conveyance reporting unit, as business combinations under the acquisition method of accounting in accordance with U.S. generally accepted accounting principles. Under the acquisition method of accounting, the total purchase price is allocated to net tangible assets and identifiable intangible assets of acquired businesses based on their fair values as of the date of completion of the acquisition. The excess of the purchase price over those fair values is recorded as goodwill.

To the extent the value of goodwill or other intangible assets becomes impaired, we may be required to incur charges and such charges may be material. We conduct our goodwill and indefinite-lived intangible asset impairment analysis annually, or more frequently if we believe indicators of impairment exist. As part of our annual goodwill impairment analysis with respect to our Precision Conveyance reporting unit, we performed a qualitative assessment as of February 28, 2025, and, based upon the results of this qualitative assessment, we determined that a quantitative test was required to be performed as the businesses in this reporting unit were recently acquired resulting in a relatively small difference between the Precision Conveyance reporting unit’s book and fair value. The quantitative test results indicated that the goodwill of the Precision Conveyance reporting unit was not impaired at the time of that test as its fair value exceeded its book value by 2.6%. While the goodwill of the Precision Conveyance reporting unit was not determined to be impaired at that time, it may be at risk of future impairment, in which charges may be material, if the related business does not perform as projected, or if market assumptions utilized in the impairment analysis deteriorate, including an unfavorable change in the discount rate. Refer to Note 7 in the accompanying condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding our goodwill and intangible assets.

Any such impairment charges relating to goodwill or other intangible assets could have a material impact on our operating results in future periods, and the announcement of a material impairment could have an adverse impact on the trading price of the shares of our common stock.

***We may fail to realize all of the anticipated benefits of the Kito Crosby Acquisition or those benefits may take longer to realize than expected.***

We expect to devote significant management attention to integrating the business practices and operations of Kito Crosby with Columbus McKinnon. In connection with the closing of the Kito Crosby Acquisition, we may experience disruptions to our business and, if integrated ineffectively, such disruptions could restrict the realization of the full expected benefits of the Kito Crosby Acquisition. The failure to meet the challenges involved in the integration process and to realize the anticipated benefits of the Kito Crosby Acquisition could cause an interruption or loss of momentum in our operations. Difficulties in integrating Kito Crosby into our business may include rationalizing the operations, processes and systems of the acquired business, retaining and motivating key management and employees, and integrating existing business relationships with suppliers and customers. Even if integration of Kito Crosby is successful, the financial and operational results may differ materially from our assumptions and forecasts due to unforeseen expenses, delays, conditions and liabilities. In addition, we may incur unanticipated costs or expenses following the Kito Crosby Acquisition, including post-closing asset impairment charges, expenses associated with eliminating duplicate facilities, and other liabilities. Furthermore, the closing of the Kito Crosby Acquisition and the subsequent integration of Kito Crosby into our business may result in material unanticipated problems, expenses, charges, liabilities, competitive responses, loss of customers and other business relationships, and diversion of management’s attention. Additional integration challenges may include difficulty in achieving anticipated cost savings, synergies, business opportunities, growth prospects and other benefits from the Kito Crosby Acquisition; difficulties in the integration of operations and systems, including pricing and marketing strategies; and difficulties in conforming standards, controls, procedures, financial reporting and accounting and other policies, business cultures and compensation structures. Many of these factors will be outside of our control and any one of them could result in increased costs, including restructuring charges, decreases in revenues and diversion of management’s time and energy, which could adversely affect our business, financial condition and results of operations. Additionally, achieving the anticipated benefits, including synergies and cost savings, is subject to a number of uncertainties, including whether the business acquired can be operated in the manner we intend and whether our costs to finance the Kito Crosby Acquisition will be consistent with our expectations. Thus, the integration of Kito Crosby may be unpredictable, subject to delays or changed circumstances, and we can give no assurance that the acquired business will perform in accordance with our expectations or that our expectations with respect to integration, synergies or cost savings as a result of the Kito Crosby Acquisition will materialize. In addition, our anticipated costs to achieve the integration of Kito Crosby may differ significantly from our current estimates. The integration may place an additional burden on our management and internal resources, and the diversion of management’s attention during the integration process could have an adverse effect on our business, financial condition and expected operating results.

### Kito Crosby’s business may underperform relative to our expectations.

We may not be able to maintain the levels of revenue, earnings or operating efficiency that Kito Crosby and we have achieved or might achieve separately. The business and financial performance of Kito Crosby are subject to certain risks and uncertainties, including the risk of the loss of, or changes to, its relationships with its customers. We may be unable to achieve the same growth, revenues and profitability that Kito Crosby has achieved in the past.

***The Divestiture is subject to various risks, uncertainties and conditions and may not be completed on the terms or timeline currently contemplated, if at all.***

On January 13, 2026, we entered into the Divestiture Agreement to sell the Divestiture Business. The Divestiture Agreement provides that completion of the Divestiture is subject to the satisfaction or waiver of customary closing conditions. There can be no assurance regarding the timing of the completion of the Divestiture or that the transaction will be completed. Unanticipated developments could delay, prevent or otherwise adversely affect the Divestiture, including, but not limited to, potential issues or delays in obtaining various third party consents or approvals. In addition, each party has the right to terminate the Divestiture Agreement relating to the Divestiture under specified circumstances, including if the closing of the transaction has not occurred on or before April 30, 2026.

### Risks Related Our Indebtedness

***We have substantial indebtedness following the consummation of the Kito Crosby Acquisition, which could adversely affect our financial health, limit our ability to raise additional capital or obtain financing in the future and prevent us from making payments on our outstanding indebtedness.***

We have substantial indebtedness following the consummation of the Kito Acquisition and the related financing transactions. Our substantial indebtedness may have important consequences for us. For example, it may: make it more difficult for us to make payments on our indebtedness; increase our vulnerability to general economic and industry conditions, including recessions and periods of significant inflation and financial market volatility; expose us to the risk of increased interest rates because any borrowings we make under certain of our indebtedness will bear interest at variable rates; require us to use a substantial portion of our cash flows from operations to service our indebtedness, thereby reducing our ability to fund working capital, capital expenditures and other expenses; limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; increase our cost of future borrowing; place us at a competitive disadvantage compared to competitors that have less indebtedness or comparable debt at more favorable interest rates; limit our ability to incur additional indebtedness to finance future acquisitions; limit our ability to refinance indebtedness and increase the associated costs of our indebtedness; and limit our ability to borrow additional funds that may be needed to operate and expand our business. The agreements governing our indebtedness contain restrictive covenants that limit our ability to engage in activities that may be in our long-term best interests. Those covenants include restrictions, among others, on our ability to incur more indebtedness or issue certain preferred shares, pay dividends, redeem stock or make other distributions in respect of capital stock, repurchase, prepay or redeem subordinated indebtedness, make investments, create restrictions on the ability of our restricted subsidiaries to pay dividends to us or make other intercompany transfers, create liens, transfer or sell assets, consolidate, merge, sell or otherwise dispose of all or substantially all of our assets, enter into certain transactions with our affiliates and designate any subsidiary as an unrestricted subsidiary. Our failure to comply with those covenants could result in an event of default, which, if not cured or waived, could result in the acceleration of all of our indebtedness.

***Despite our indebtedness levels, we and our subsidiaries may be able to incur substantially more indebtedness, including secured debt, which may increase the risks to our financial condition and results of operations created by our substantial indebtedness.***

The terms of the agreements governing our indebtedness do provide us and our subsidiaries with the flexibility to incur a substantial amount of indebtedness in the future, which indebtedness may be secured or unsecured. In particular, if we or our subsidiaries are in compliance with certain incurrence ratios, we and our subsidiaries may be able to incur substantial additional indebtedness. Any such incurrence of additional indebtedness may increase the risks created by our current substantial indebtedness. These restrictions also will not prevent us from incurring obligations that do not constitute indebtedness.

***The agreements governing our indebtedness contain restrictive covenants that restrict our ability and the ability of most of our subsidiaries to engage in certain business and financial transactions, and, as a result, may adversely affect our business, financial condition, results of operations and cash flows.***

The agreements governing our indebtedness contain restrictive covenants that, among other things, limit our ability and the ability of our restricted subsidiaries to (as applicable): incur additional indebtedness or issue certain preferred shares; pay dividends, redeem stock or make other distributions in respect of capital stock; repurchase, prepay or redeem the Notes and subordinated indebtedness; make investments; create liens and incur additional liens; transfer or sell assets; create restrictions on the ability of our restricted subsidiaries to pay dividends to us or make other intercompany transfers; consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; change the nature of our business; enter into certain transactions with our affiliates; and designate any subsidiaries as an unrestricted subsidiary. The agreements governing our indebtedness contain certain leverage ratios and our ability to meet those ratios may be affected by events beyond our control, and we may be unable to meet them. We are required, and we expect, to make mandatory prepayments under the agreements governing our indebtedness upon the occurrence of certain events, including the sale of certain assets and the issuance of debt, in each case subject to certain limitations and conditions set forth in such agreements. In addition, the AR Securitization Facility contains a number of covenants that, among other things, limit or restrict the applicable borrowers with respect to liens, indebtedness, guarantees, mergers, dispositions of substantially all assets, dividends, redemption of stock, investments, corporate matters and changes in business conducted.

Filed Feb 9, 2026.
Source: SEC EDGAR, the filing index for accession 0001005229-26-000011. Last ingested by Listed: Nov 3, 2026, 19:38 ET. No prices; not investment advice.