Columbus Mckinnon Corp (CMCO) · Nov 3, 2026 · Earnings
Beat — Adjusted EPS $0.61 vs ~$0.38 consensus; revenue $539.3M vs ~$518.7M
Columbus McKinnon’s Q2 earnings beat consensus and FY27 guidance rose, with Kito Crosby synergies lifting margins despite higher debt costs.
CMCO is in the first full year of integrating Kito Crosby, using the acquisition to broaden its lifting, automation and material-handling platform while trying to turn scale and cost synergies into cash and lower leverage. The prior quarter had already shown strong orders, margin expansion and an increased FY27 outlook, so this filing is confirmation of the direction—but the magnitude of the Q2 execution is the new information.
The quarter beat the published bar by a wide margin. Adjusted EPS of $0.61 was well above the roughly $0.38 consensus, while revenue of $539.3 million exceeded the roughly $518.7 million expectation. The important distinction is that the revenue beat was not just acquisition math: Legacy CMCO sales still grew 5.3%, supported by pricing and volume. 〔0〕
| Metric | Q2 FY27 | Q2 FY26 | Consensus / prior |
|---|---|---|---|
| Net sales (Financial Highlights) | $539.3M (+106.6%) | $261.0M | $518.7M |
| Adjusted EPS (Financial Highlights) | $0.61 | $0.62 | $0.38 |
| Adjusted EBITDA (Financial Highlights) | $111.2M (+176.5%) | $40.2M | |
| Adjusted EBITDA margin (Financial Highlights) | 20.6% (+520 bps) | 15.4% | |
| Legacy CMCO sales growth (Legacy CMCO Net Sales) | 5.3% | 8.8% | |
| Free cash flow, six months (Free Cash Flow) | $4.6M | $(6.3)M | |
| Credit Agreement net leverage (Leverage reconciliation) | 4.9x | 5.1x at Mar. 31, 2026 |
The strongest signal is operating leverage from the combined business. Adjusted EBITDA margin expanded to 20.6% from 15.4%, and management says synergy realization is ahead of plan. Orders rose 13% on a pro forma basis, backlog reached $556 million, and the 1.0x book-to-bill supports continued revenue conversion.
Guidance moved higher across the key profit measures. FY27 revenue rose to $2.13–$2.17 billion from $2.09–$2.15 billion, adjusted EBITDA to $425–$440 million from $405–$420 million, and adjusted EPS to $2.00–$2.15 from $1.90–$2.10. The EBITDA and EPS increases are more meaningful than the revenue change because they indicate management is carrying through better margins and synergy capture, not merely adding acquired sales. 〔1〕
The result is not clean on a GAAP or cash basis. CMCO still posted a $25.5 million net loss, interest expense surged with acquisition financing, and adjusted EPS slipped slightly year over year to $0.61 because the preferred shares add roughly 21.8 million potential common shares. Six-month free cash flow was only $4.6 million after $23 million of acquisition-related cash costs, so the leverage improvement to 4.9x remains incremental rather than a balance-sheet reset.
Bottom line: This is a clear execution win against expectations: CMCO is integrating Kito Crosby faster than feared and converting scale into materially better margins, prompting another guidance increase. The story is advancing, but the next proof point is whether stronger EBITDA becomes sustained free cash flow and faster deleveraging.
Q3 FY27 results and further Kito Crosby synergy conversion
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