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Columbus Mckinnon Corp. (CMCO)
NASDAQ:CMCO

Columbus Mckinnon (CMCO) AI Stock Analysis

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CMCO

Columbus Mckinnon

(NASDAQ:CMCO)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
$21.50
▲(4.32% Upside)
The score is driven by improving financial health (deleveraging and strong free cash flow growth) and a supportive bullish price trend, partially reinforced by a generally positive earnings outlook (sales/EPS improvement and strong backlog). These positives are materially capped by very expensive valuation (P/E 147) and overbought technical conditions, alongside tariff and order-conversion risks.
Positive Factors
Deleveraging via divestiture
Proceeds from the $210M divestiture are earmarked to reduce acquisition-related debt, materially improving leverage metrics. This strengthens the balance sheet, increases financial flexibility for capex or M&A, and reduces interest burden—benefits that persist through multi-quarter cycles.
Strong free cash flow growth
Robust free cash flow growth (61% TTM) underpins sustainable debt reduction and reinvestment capacity. High cash conversion supports ongoing capex, integration of acquisitions, and shareholder returns while providing resilience against cyclical revenue swings over the next several quarters.
Scale and synergy potential from Kito Crosby deal
The Kito Crosby acquisition materially expands global scale and product breadth, improving diversification across APAC/EMEA/Latin America. Expected $70M cost synergies and higher pro forma EBITDA margins can boost long-term margin resilience, cash generation and competitive positioning post-integration.
Negative Factors
Very low profitability margins
Persistently thin net and EBIT margins indicate limited pricing power or cost inefficiencies relative to peers. Low ROE signals weak capital returns. Even with revenue or scale improvements, lifting structural profitability will take sustained margin expansion and operational execution over multiple quarters.
Material tariff headwind
A recurring ~$10M tariff drag is a structural cost pressure affecting manufacturing economics and competitiveness. Until fully mitigated, tariffs compress margins and force strategic adjustments (sourcing, pricing, supply chain), creating sustained earnings and cashflow vulnerability across regions.
Order conversion and regional demand variability
Slower project conversions in EMEA/APAC and YoY order declines point to volatile top-line visibility. This regional variability can depress near-term revenue and complicate capacity planning; sustained recovery requires improved backlog conversion and diversification to stabilize multi-quarter revenue trends.

Columbus Mckinnon (CMCO) vs. SPDR S&P 500 ETF (SPY)

Columbus Mckinnon Business Overview & Revenue Model

Company DescriptionColumbus McKinnon Corporation designs, manufactures, and markets intelligent motion solutions to ergonomically move, lift, position, and secure materials worldwide. The company offers electric, air-powered, lever, and hand hoists; hoist trolleys, explosion-protected and custom engineered hoists, and winches; crane systems, such as crane components and kits, enclosed track rail systems, mobile and jib cranes, and fall protection systems, as well as material handling solutions; rigging equipment comprising below-the-hook lifting devices, shackles, chains and chains accessories, forestry and hand tools, lifting slings, lashing systems, and tie-downs and load binders; rotary unions and swivel joints; and mechanical and electromechanical actuators. It also provides power and motion technology products, including AC motor controls and line regenerative systems, automation and diagnostics, brakes, cable and festoon systems, collision avoidance systems, conductor bar systems, DC motor and magnet control systems, elevator drives, inverter duty motors, mining drives, pendant pushbutton stations, radio controls, and wind inverters; power delivery subsystems; overhead aluminum light rail workstations; and low profile, flexible chain, large scale, sanitary, and vertical elevation conveyor systems, as well as pallet system conveyors and accumulation systems. The company serves market verticals, including general industries, transportation, energy and utilities, process industries, industrial automation, construction and infrastructure, food and beverage, entertainment, life sciences, consumer packaged goods, and e-commerce/supply chain/warehousing. It offers its products to end users directly, as well as through distributors, independent crane builders, material handling specialists and integrators, government agencies, original equipment manufacturers, and engineering procurement and construction firms. The company was founded in 1875 and is headquartered in Buffalo, New York.
How the Company Makes MoneyColumbus McKinnon generates revenue through several key streams, primarily by selling its lifting and material handling equipment directly to customers and through distributors. The company also provides aftermarket services, including maintenance, repair, and parts for its products, which contribute to recurring revenue. Significant partnerships with major players in various industries enhance its market reach and sales capabilities. Additionally, CMCO's focus on innovative solutions and compliance with safety regulations positions it favorably in competitive markets, driving customer demand and revenue growth.

Columbus Mckinnon Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Feb 09, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong sales growth, a record backlog, and progress on the pending Kito Crosby acquisition. However, the ongoing impact of tariffs and slower order conversions in certain regions present challenges. Despite these issues, the company's strategic initiatives and operational improvements bolster a positive outlook.
Q2-2026 Updates
Positive Updates
Record Backlog and Sales Growth
Net sales increased 8% year-over-year to $261 million, driven by growth across all product platforms and accelerated deliveries. The backlog is a healthy $352 million, up $34 million or 11% from the prior year.
Improved Adjusted EPS
Adjusted EPS improved $0.12 sequentially to $0.62 in the second quarter due to higher sales, margin expansion, and effective cost management.
Operational Improvement and Tariff Mitigation
Meaningful progress on operational improvement, tariff mitigation, and integration preparedness initiatives, with some tariff impacts beginning to moderate.
Strong U.S. Order Growth
Order growth in the U.S. was 11%, with strong performance in both project-related and short-cycle categories.
Pending Kito Crosby Acquisition
Progress made towards integrating Kito Crosby, with the expectation of closing by the end of the fiscal year. This is expected to scale the business and achieve strategic synergy objectives.
Negative Updates
Tariff Impact and Challenges
Tariffs remain a significant challenge, with an estimated $10 million headwind to operating profit expected in the fiscal year. Tariff impact is anticipated to spill over into the next quarter.
Year-over-Year Order Decline
Orders were $254 million, down 3% year-over-year, due to the prior year benefiting from significant project orders.
Slower Conversion in EMEA and APAC
Economic landscape in EMEA and APAC is resulting in slower conversion for project orders and a weaker macroeconomic environment.
Company Guidance
During the Columbus McKinnon Second Quarter Fiscal 2026 earnings call, the company reported an 8% year-over-year increase in net sales, reaching $261 million, driven by growth across all product platforms and regions, particularly in the U.S. and EMEA. Adjusted EPS improved by $0.12 sequentially to $0.62, supported by higher sales, margin expansion, and continued cost management. The company's backlog increased by 11% year-over-year to $352 million, despite a 4% sequential decline due to accelerated conversion of Q3 backlog into Q2 shipments. Tariffs posed a challenge, with an estimated $10 million net headwind expected for the fiscal year. Columbus McKinnon aims to achieve tariff cost neutrality by the end of fiscal 2026 and margin neutrality by fiscal 2027. Orders were $254 million, down 3% year-over-year, impacted by slower project order conversions in EMEA and APAC. However, U.S. orders grew by 11%. The company updated its full-year guidance, expecting low to mid-single-digit sales growth and reaffirmed adjusted EPS guidance of flat to slightly up year-over-year. The pending acquisition of Kito Crosby is anticipated to close by the fiscal year's end, with integration plans in place to achieve synergy objectives.

Columbus Mckinnon Financial Statement Overview

Summary
Columbus McKinnon shows stable financial health with improvements in leverage and cash flow generation. Revenue growth is modest, and profitability remains a challenge with low margins. The balance sheet is strengthened by reduced debt levels and a solid equity base.
Income Statement
65
Positive
Columbus Mckinnon shows a modest revenue growth of 1.96% in the TTM, recovering from a decline in the previous annual period. However, profitability metrics such as the net profit margin (0.41%) and EBIT margin (2.59%) are relatively low, indicating challenges in maintaining operational efficiency. The gross profit margin remains stable at 33.67%, suggesting consistent cost management.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has improved to 0.50 in the TTM, indicating a reduction in leverage compared to previous periods. Return on equity is low at 0.44%, reflecting limited profitability. The equity ratio stands at 51.66%, showing a solid equity base relative to total assets, which enhances financial stability.
Cash Flow
75
Positive
Free cash flow growth is strong at 61.05% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 10.84%, suggesting that cash flows are not fully aligned with net income, which could be a concern. However, the free cash flow to net income ratio of 49.55% demonstrates a reasonable conversion of earnings into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue977.99M963.03M1.01B936.24M906.55M649.64M
Gross Profit329.29M325.68M374.84M342.10M315.73M220.22M
EBITDA85.83M75.11M145.43M146.72M105.57M50.31M
Net Income3.97M-5.14M46.63M48.43M29.66M9.11M
Balance Sheet
Total Assets1.77B1.74B1.83B1.70B1.69B1.15B
Cash, Cash Equivalents and Short-Term Investments28.04M53.68M114.13M133.18M115.39M202.13M
Total Debt459.28M540.67M599.63M526.08M542.90M283.95M
Total Liabilities855.26M856.69M943.88M864.66M912.90M620.28M
Stockholders Equity914.59M882.10M882.06M833.80M772.80M530.15M
Cash Flow
Free Cash Flow29.36M24.20M42.38M71.00M35.78M86.59M
Operating Cash Flow47.23M45.61M67.20M83.64M48.88M98.89M
Investing Cash Flow-17.33M-19.89M-133.36M-13.93M-554.31M-5.55M
Financing Cash Flow-57.63M-86.75M48.20M-49.99M420.70M-10.19M

Columbus Mckinnon Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.61
Price Trends
50DMA
16.95
Positive
100DMA
15.97
Positive
200DMA
15.54
Positive
Market Momentum
MACD
0.87
Negative
RSI
75.64
Negative
STOCH
84.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCO, the sentiment is Positive. The current price of 20.61 is above the 20-day moving average (MA) of 18.29, above the 50-day MA of 16.95, and above the 200-day MA of 15.54, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 75.64 is Negative, neither overbought nor oversold. The STOCH value of 84.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMCO.

Columbus Mckinnon Risk Analysis

Columbus Mckinnon disclosed 34 risk factors in its most recent earnings report. Columbus Mckinnon reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Columbus Mckinnon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$3.98B25.747.85%1.24%4.60%-65.73%
70
Outperform
$492.69M8.718.82%-0.83%
66
Neutral
$592.09M151.320.44%1.59%-2.36%-73.77%
66
Neutral
$1.12B23.427.37%1.14%6.66%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
58
Neutral
$574.28M-92.96-1.05%-2.75%22.20%
51
Neutral
$588.42M225.250.51%4.61%-8.30%-98.18%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CMCO
Columbus Mckinnon
20.61
-14.86
-41.90%
ASTE
Astec
48.80
15.42
46.20%
MTW
Manitowoc Company
13.89
4.75
51.97%
TEX
Terex
60.71
13.97
29.89%
TWI
Titan International
8.98
1.57
21.19%
HY
Hyster-Yale Materials Handling
33.18
-18.56
-35.87%

Columbus Mckinnon Corporate Events

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Columbus McKinnon Divests Power Chain Hoist Operations
Positive
Jan 14, 2026

On January 13, 2026, Columbus McKinnon signed an equity purchase agreement to sell 100% of the equity interests of Royal NY Company Holdings and its U.S. power chain hoist and chain manufacturing operations, excluding Little Mule products, to an affiliate of Pacific Avenue Capital Partners for $210 million, with potential additional earn-out payments of up to $25 million tied to net sales performance in fiscal 2027 and 2028. The divested business, based in Damascus, Virginia and Lexington, Tennessee, will be transferred under related contribution agreements, with closing expected by the end of the first quarter of calendar 2026, subject to customary regulatory and contractual closing conditions and a long-stop date of April 30, 2026. Columbus McKinnon expects roughly $160 million of net cash proceeds, after an estimated $50 million of taxes and transaction-related costs, to be used primarily to pay down debt incurred for its previously announced acquisition of Kito Crosby, thereby supporting its deleveraging priorities and easing antitrust review by reducing product overlap. Management positions the divestiture and acquisition together as a portfolio simplification and scale-building strategy, targeting approximately $70 million in annual cost synergies, mid‑20% adjusted EBITDA margins on a pro forma basis, and stronger, more diversified global reach, particularly in APAC, EMEA and Latin America, even as they caution that transaction timing could render fiscal 2026 GAAP earnings per share temporarily dilutive and near-term financial impacts uncertain.

The most recent analyst rating on (CMCO) stock is a Buy with a $21.50 price target. To see the full list of analyst forecasts on Columbus Mckinnon stock, see the CMCO Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Columbus McKinnon Issues Preliminary Third-Quarter Fiscal 2026 Results
Positive
Jan 14, 2026

On January 14, 2026, Columbus McKinnon announced select estimated preliminary unaudited results for its third quarter ended December 31, 2025, reporting expected net sales of $250 million to $260 million for the quarter and $747 million to $757 million for the first nine months of fiscal 2026. The company anticipates Adjusted EBITDA of $38 million to $40 million for the quarter and $115 million to $117 million for the nine-month period, with Adjusted EPS projected between $0.58 and $0.63 for the quarter and $1.70 to $1.75 year-to-date. Management also estimates third-quarter orders of $245 million to $250 million and a quarter-end backlog of $335 million to $345 million, representing a 3% decline from the prior quarter but a 5% increase versus the end of fiscal 2025, signaling a still-solid demand pipeline. These figures, which exclude the impact of the pending acquisition of Kito Crosby Limited and the planned divestiture of U.S. power chain hoist and chain manufacturing operations, remain subject to closing adjustments and audit review; the company has also revised its Adjusted EBITDA definition to add back stock-based compensation, aligning with common industry practice and potentially improving comparability of its performance metrics for investors.

The most recent analyst rating on (CMCO) stock is a Buy with a $21.50 price target. To see the full list of analyst forecasts on Columbus Mckinnon stock, see the CMCO Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Columbus McKinnon Reports Q2 Sales and EBITDA Growth
Positive
Oct 30, 2025

Columbus McKinnon reported an 8% increase in net sales for the second quarter of fiscal year 2026, ending September 30, 2025, driven by growth in lifting and linear motion platforms. Despite a weaker macroeconomic environment in EMEA, U.S. orders grew by 11%, contributing to a healthy backlog and a 22% sequential increase in adjusted EBITDA. The company is actively working on tariff mitigation and preparing for the acquisition of Kito Crosby, aiming for tariff cost neutrality by the end of the fiscal year.

The most recent analyst rating on (CMCO) stock is a Hold with a $15.50 price target. To see the full list of analyst forecasts on Columbus Mckinnon stock, see the CMCO Stock Forecast page.

Dividends
Columbus McKinnon Declares Quarterly Dividend Announcement
Positive
Oct 20, 2025

On October 20, 2025, Columbus McKinnon’s Board of Directors declared a regular quarterly dividend of $0.07 per common share, payable on or about November 17, 2025, to shareholders of record as of November 7, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value and its stable financial position, with approximately 28.7 million shares outstanding.

The most recent analyst rating on (CMCO) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Columbus Mckinnon stock, see the CMCO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 14, 2026