Columbus McKinnon Q1 sales beat on Kito Crosby acquisition boost

Overview

• U.S. intelligent motion solutions firm's fiscal Q1 sales rose 125% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company raised FY27 sales, adjusted EBITDA, and adjusted EPS guidance after strong Q1 performance

Outlook

• Columbus McKinnon raises FY27 net sales outlook to $2.09 bln-$2.15 bln

• Company now sees FY27 adjusted EBITDA at $405 mln-$420 mln

• Columbus McKinnon expects FY27 adjusted EPS of $1.90-$2.10

Result Drivers

• KITO CROSBY ACQUISITION - Co said net sales and order growth were primarily driven by the Kito Crosby acquisition

• ORGANIC GROWTH - Legacy CMCO net sales grew 12.7% on higher pricing and volume across all regions

• MARGIN EXPANSION - Margin gains attributed to synergy realization from Kito Crosby acquisition and lower material costs in the quarter

Company press release: ID:nPn5zF5gra

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery vehicles peer group is "buy"

• Wall Street's median 12-month price target for Columbus McKinnon Corp is $27.00, about 84.7% above its July 29 closing price of $14.62

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 28 - Crane Company Q2 sales rise 26%, beat estimates; outlook raised

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)