Columbus McKinnon Reports Record Orders and Sales in Q1 FY27; Increases FY27 Guidance

Columbus McKinnon Reports Record Orders and Sales in Q1 FY27; Increases FY27 Guidance

PR Newswire

CHARLOTTE, N.C., July 30, 2026

Kito Crosby integration remains on track, with continued progress on synergy captureNet sales growth of 125% Y/Y driven by the Kito Crosby Acquisition with solid growth at both Legacy CMCO1 and Kito CrosbyBook-to-bill of 1.1x with strong order growth positions CMCO well for H2 FY27Increased cash flow Y/Y reflects benefits of the Kito Crosby Acquisition, synergy achievement and improved marginCHARLOTTE, N.C., July 30, 2026 /PRNewswire/ -- Columbus McKinnon Corporation (Nasdaq: CMCO) ("Columbus McKinnon" or the "Company"), today announced financial results for its fiscal year 2027 first quarter, which ended June 30, 2026.

Columbus McKinnon delivered net sales growth of 125% and order growth of 120% year-over-year, both driven by the acquisition of Kito Crosby Limited ("Kito Crosby"), which closed on February 3, 2026 (the "Kito Crosby Acquisition"), with strong performance across the Legacy CMCO1 and Kito Crosby platforms."Our team delivered solid results in our first full quarter as a combined company, while also continuing to progress the integration and realize synergies," said David J. Wilson, President and Chief Executive Officer. "I am pleased with the strong start to the year, including substantial orders growth supported by robust U.S. short-cycle demand, increasing our confidence in the year ahead."First Quarter Fiscal 2027 Highlights (compared with prior-year period, except where otherwise noted)Net sales of $531.5 million increased 125%Orders of $568.1 million increased 120%; Book to Bill of 1.1xNet loss attributable to the Company of $88.7 million, or $2.05 per diluted share included $70.3 million of acquisition and integration related expensesAdjusted Net Income2 of $30.5 million increased 114% and Adjusted EPS2,3 of $0.61 increased 22%Adjusted EBITDA2 of $111.5 million and Adjusted EBITDA Margin2 of 21.0%, up 720 basis pointsCash flow provided by operations of $25.6 million and Free Cash Flow Excluding Deal Costs2 of $32.4 million "Disciplined execution in the first quarter led to significant margin expansion, which included the accretive impact of the Kito Crosby Acquisition, synergy realization and benefits to material costs that were specific to the quarter," continued Wilson. "I remain confident in our ability to create shareholder value as we drive organic growth, improve margins, deliver free cash flow, and de-lever the balance sheet."First Quarter Fiscal 2027 Sales($ in millions)Q1 FY27Q1 FY26Change% ChangeNet sales$ 531.5$ 235.9$ 295.5125.3 %U.S. sales$ 292.7$ 135.3$ 157.4116.3 % % of total55 %57 %Non-U.S. sales$ 238.8$ 100.6$ 138.2137.4 % % of total45 %43 %For the quarter, net sales increased $295.5 million, or 125.3% driven by the Kito Crosby Acquisition partially offset by the Divestiture4. Legacy CMCO Net Sales Growth1,2 of 12.7% benefited from both positive pricing and volume with growth across all regions.First Quarter Fiscal 2027 Operating Results($ in millions, except per share figures)Q1 FY27Q1 FY26Change% ChangeGross profit$ 146.3$ 77.2$ 69.089.4 % Gross margin27.5 %32.7 %(520) bpsAdjusted Gross Profit2$ 202.5$ 80.9$ 121.6150.3 % Adjusted Gross Margin238.1 %34.3 %380 bpsNet income (loss)$ (88.4)$ (1.9)$ (86.5)NM Net income (loss) margin(16.6) %(0.8) %NMAdjusted Net Income2$ 30.5$ 14.3$ 16.3114.0 %GAAP EPS$ (2.05)$ (0.07)$ (1.98)NMAdjusted EPS2,3$ 0.61$ 0.50$ 0.1122.0 %Adjusted EBITDA2$ 111.5$ 32.6$ 78.9241.8 % Adjusted EBITDA Margin221.0 %13.8 %720 bpsCapital, Liquidity and Cash FlowThe Company ended the first quarter with a Credit Agreement Net Leverage Ratio2 of 4.9x and total liquidity of $567.1 million consisting of $98.4 million of cash and cash equivalents, $468.7 million of availability on the Company's revolving credit facility and no availability on the Company's AR securitization facility.The Company generated $25.6 million in cash provided by operating activities in the quarter, with capital expenditures of $5.7 million resulting in Free Cash Flow2 of $20.0 million. Excluding cash payments related to the integration of the Kito Crosby Acquisition of $12.5 million, Free Cash Flow Excluding Deal Costs2 was $32.4 million.The Company remains committed to allocating capital to pay down debt to de-lever its balance sheet in the near term while continuing its track record of consistent dividend payment.Fiscal Year 2027 GuidanceBased on year-to-date performance and its outlook, the Company is increasing its outlook for fiscal 2027, ending March 31, 2027 as follows:MetricUpdated FY27 OutlookPrior FY27 OutlookNet sales$2.09 billion to $2.15 billion$2.05 billion to $2.12 billionAdjusted EBITDA5$405 million to $420 million$390 million to $410 millionAdjusted EPS5$1.90 to $2.10$1.70 to $1.90Fiscal 2027 guidance assumes approximately:$185 million to $190 million of interest expense,$135 million to $140 million of amortization expense,$75 million to $80 million of depreciation expense,Normalized effective tax rate of 25% as used in the calculation of Adjusted EPS, and52 million Adjusted Diluted Shares Outstanding5 as a result of the Company's expectation that the dividends payable on the Preferred Shares6 will be accrued, accumulated and compounded, rather than being paid in cash during fiscal 2027."Our revised full year outlook reflects the strong orders and financial performance from our first quarter and increased confidence in the year. The revised outlook is based on our latest assumptions for sales phasing based on our current backlog as well as updated foreign exchange rates," said John Linker, Executive Vice President and Chief Financial Officer. "Our guidance also reflects additional confidence in cost synergy realization and progress towards achieving our leverage reduction targets."Teleconference and WebcastColumbus McKinnon will host a conference call today at 10:00 AM Eastern Time to discuss the Company's financial results and strategy. The conference call, earnings release and earnings presentation will be accessible through live webcast on the Company's investor relations website at investors.cmco.com. A replay of the webcast will also be archived on the Company's investor relations website through August 13, 2026.______________________1"Legacy CMCO" is defined as reported Columbus McKinnon adjusting for the removal of the Divestiture and the Kito Crosby Acquisition in all comparable periods.2Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Legacy CMCO Net Sales Growth, Free Cash Flow, Free Cash Flow Excluding Deal Costs and Credit Agreement Net Leverage Ratio are non-GAAP financial measures. See accompanying discussion and reconciliation tables provided in this release for reconciliations of these non-GAAP financial measures to the closest corresponding GAAP financial measures.3Adjusted EPS excludes, among other adjustments, amortization of intangible assets. The Company believes this better represents its inherent earnings power and cash generation capability.4As part of the Kito Crosby Acquisition, the Company was required to divest its U.S. power chain hoist (other than with respect to Little Mule products) and chain manufacturing operations, which closed on March 4, 2026 (the "Divestiture").5The Company has not reconciled Adjusted EBITDA, Adjusted EPS and Adjusted Diluted Shares Outstanding guidance for fiscal 2027 to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide guidance for the comparable GAAP financial measures. Forward-looking guidance regarding Adjusted EBITDA and Adjusted EPS are made in a manner consistent with previous filings with the Securities and Exchange Commission.6800,000 Series A Cumulative Convertible Participating Preferred Shares of the Company, par value $1.00 per share (the "Preferred Shares").About Columbus McKinnon CMCO is a global leader in intelligent motion solutions designed to advance performance and productivity, helping customers move the world forward with confidence. Guided by its mission to deliver innovative solutions with unmatched safety, quality and reliability, CMCO enables efficient lifting, positioning, securing and movement of materials across a wide range of end markets. Its portfolio spans five key platforms: lifting hardware consumables, hoists and cranes, precision conveyance, automation and linear motion. Driven by a vision for a safer, more productive tomorrow, CMCO partners with customers to solve some of their most complex intralogistics challenges and keep industry in motion. Comprehensive information is available atwww.cmco.com.Safe Harbor StatementThis news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "illustrative," "intend," "likely," "may," "opportunity," "plan," "possible," "potential," "predict," "project," "shall," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this release, including, but are not limited to, statements relating to: (i) our strategy, outlook and growth prospects, including the Company's full year fiscal 2027 guidance, consisting of net sales, Adjusted EBITDA and Adjusted EPS for fiscal 2027, as well as the associated assumed inputs for fiscal 2027 regarding interest expense, amortization expense, depreciation expense, effective tax rate and Adjusted Diluted Shares Outstanding; (ii) our operational and financial targets and capital distribution policy, including our expectation that the dividends payable on the Preferred Shares will be accrued, accumulated and compounded, rather than being paid in cash, during fiscal 2027; (iii) general economic trends and trends in our industry and markets; (iv) our ability to successfully integrate the Kito Crosby Acquisition and achieve targeted net cost synergies and leverage reduction targets; (v) our ability to expand margins in future periods; and (vi) the competitive environment in which we operate, are forward looking statements. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made. Columbus McKinnon undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.Contacts:Investor Relationsinvestor.relations@cmco.comCOLUMBUS McKINNON CORPORATIONCondensed Consolidated Income Statements - UNAUDITED(In thousands, except per share and percentage data)Three Months Ended June 30,20262025ChangeNet sales$ 531,461$ 235,920125.3 %Cost of products sold385,192158,698142.7 %Gross profit146,26977,22289.4 %Gross profit margin27.5 %32.7 %Selling expenses54,68928,53191.7 %% of net sales10.3 %12.1 %General and administrative expenses65,36230,743112.6 %% of net sales12.3 %13.0 %Research and development expenses8,5414,82177.2 %% of net sales1.6 %2.0 %Net loss (gain) on sales of businesses566—NMAmortization of other intangibles34,8087,635355.9 %Income from operations(17,697)5,492(422.2) %Operating margin(3.3) %2.3 %Interest and debt expense47,6108,698447.4 %Investment (income) loss(1,692)(1,049)61.3 %Foreign currency exchange (gain) loss4,023(342)NMOther (income) expense, net(249)(177)40.7 %Income (loss) before income tax expense (benefit)(67,389)(1,638)NMIncome tax expense (benefit)21,044260NMNet income (loss)(88,433)(1,898)NMNet income (loss) attributable to noncontrolling interest296—NMNet income (loss) attributable to the Company$ (88,729)$ (1,898)NMWeighted average basic shares outstanding28,79328,6580.5 %Basic income (loss) per share$ (2.05)$ (0.07)NMWeighted average diluted shares outstanding28,79328,6580.5 %Diluted income (loss) per share$ (2.05)$ (0.07)NMCOLUMBUS McKINNON CORPORATIONCondensed Consolidated Balance Sheets(In thousands)Period EndedJune 30,2026March 31,2026(Unaudited)ASSETSCurrent assets:Cash and cash equivalents$ 98,410$ 96,562Trade accounts receivable373,194380,198Inventories558,312609,030Prepaid expenses and other92,59795,071Total current assets1,122,5131,180,861Property, plant, and equipment, net391,510408,508Goodwill1,420,5521,408,640Other intangibles, net1,565,5271,609,662Marketable securities10,27610,223Deferred taxes on income2,6312,064Other assets161,252164,745Total assets$ 4,674,261$ 4,784,703LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Trade accounts payable$ 159,894$ 168,907Accrued liabilities247,964249,009Current portion of long-term debt and finance lease obligations154,047166,418Total current liabilities561,905584,334Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations2,222,7362,226,589Other non-current liabilities522,971525,151Total liabilities$ 3,307,612$ 3,336,074Shareholders' equity:Preferred Stock804,000789,845Common stock288287Treasury stock(11,000)(11,000)Additional paid-in capital542,663540,536Retained earnings33,219135,807Accumulated other comprehensive income (loss)(2,127)(6,748)Equity attributable to shareholders of the Company1,367,0431,448,727Noncontrolling interest(394)(98)Total shareholders' equity$ 1,366,649$ 1,448,629Total liabilities and shareholders' equity$ 4,674,261$ 4,784,703COLUMBUS McKINNON CORPORATIONCondensed Consolidated Statements of Cash Flows - UNAUDITED(In thousands)Three Months Ended June 30,20262025Operating activities:Net income (loss) attributable to the Company$ (88,729)$ (1,898)Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:Depreciation and amortization53,20112,266Deferred income taxes and related valuation allowance2,026(4,669)Net loss (gain) on sale of investments and other(989)(835)Stock-based compensation2,6961,842Amortization of deferred financing costs2,501622Loss (gain) on hedging instruments288465Non-cash lease expense4,0562,412Changes in operating assets and liabilities:Trade accounts receivable5,508(8,726)Inventories47,666(9,661)Prepaid expenses and other(2,583)(3,015)Other assets4,653758Trade accounts payable(7,954)(8,203)Accrued liabilities6,1742,902Non current liabilities(2,890)(2,413)Net cash provided by (used for) operating activities25,624(18,153)Investing activities:Proceeds from sales of marketable securities9731,284Purchases of marketable securities(657)(1,299)Capital expenditures(5,668)(3,202)Net cash provided by (used for) investing activities(5,352)(3,217)Financing activities:Borrowing / (Repayment) of debt(18,368)2,225Cash inflows from hedging activities5,7215,832Cash outflows from hedging activities(5,995)(6,275)Payment of dividends(2,016)(2,003)Other(567)(756)Net cash provided by (used for) financing activities(21,225)(977)Effect of exchange rate changes on cash and cash equivalents2,796(2,614)Net change in cash and cash equivalents1,843(24,961)Cash, cash equivalents, and restricted cash at beginning of year$ 97,023$ 53,933Cash, cash equivalents, and restricted cash at end of period$ 98,866$ 28,972COLUMBUS McKINNON CORPORATIONQ1 FY 2027 Net Sales BridgeQuarter($ in millions)$ Change% ChangeQ1 Fiscal 2026 net sales$ 235.9Divestiture(34.8)Q1 Fiscal 2026 net sales adjusted for the Divestiture201.1Kito Crosby Acquisition304.8151.6 %Pricing7.13.5 %Volume16.18.0 %Foreign currency translation2.41.2 %Net sales growth adjusted for the Divestiture$ 330.4164.3 %Q1 Fiscal 2027 net sales$ 531.5NON-GAAP FINANCIAL MEASURESThe following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.COLUMBUS McKINNON CORPORATIONReconciliation of Gross Profit to Adjusted Gross Profit($ in thousands)Three Months Ended June 30,20262025Gross profit$ 146,269$ 77,222Add back (deduct):Business realignment costs—1,385Acquisition inventory step-up expense55,198—Acquisition integration costs1,078—Factory and warehouse consolidation costs—425Monterrey, MX new factory start-up costs—1,901Adjusted Gross Profit$ 202,545$ 80,933Net sales$ 531,461$ 235,920Gross margin27.5 %32.7 %Adjusted Gross Margin38.1 %34.3 %Adjusted Gross Profit is defined as gross profit as reported, adjusted for certain items. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net sales. Adjusted Gross Profit and Adjusted Gross Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted Gross Profit and Adjusted Gross Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Gross Profit and Adjusted Gross Margin, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's gross profit and gross margin to the historical periods' gross profit and gross margin, as well as facilitates a more meaningful comparison of the Company's gross profit and gross margin to that of other companies.COLUMBUS McKINNON CORPORATIONReconciliation of Net Income and Diluted Earnings per Share toAdjusted Net Income and Adjusted Earnings per Share($ in thousands, except per share data)Three Months Ended June 30,20262025Net income (loss) attributable to the Company$ (88,729)$ (1,898)Add back (deduct):Amortization of other intangibles34,8087,635Transaction-related costs(232)8,103Acquisition inventory step-up expense55,198—Acquisition integration costs15,312—Business realignment costs2,7162,525Net loss (gain) on sales of businesses566—Factory and warehouse consolidation costs—482Monterrey, MX new factory start-up costs—1,901Normalize tax rate110,873(4,492)Adjusted Net Income$ 30,512$ 14,256GAAP average diluted shares outstanding28,79328,658Add back:Effect of dilutive preferred shares21,470—Effect of dilutive share-based awards169120Adjusted Diluted Shares Outstanding$ 50,432$ 28,778GAAP EPS$ (2.05)$ (0.07)Adjusted EPS$ 0.61$ 0.501Applies a normalized tax rate of 25% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax.Adjusted Net Income is defined as net income (loss) attributable to the Company and GAAP EPS as reported, adjusted for certain items, including amortization of intangibles, and also adjusted for a normalized tax rate. Adjusted Diluted Shares Outstanding is defined as average diluted shares outstanding adjusted for the effect of dilutive preferred shares and the effect of dilutive share-based awards. Adjusted EPS is defined as Adjusted Net Income per Adjusted Diluted Shares Outstanding. Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS are not measures determined in accordance with GAAP and may not be comparable with the measures used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of current periods' net income (loss) attributable to the Company, average diluted shares outstanding and GAAP EPS to the historical periods' net income (loss) attributable to the Company, average diluted shares outstanding and GAAP EPS, as well as facilitates a more meaningful comparison of the Company's net income (loss) attributable to the Company and GAAP EPS to that of other companies. The Company believes that presenting Adjusted Net Income, Adjusted Diluted Shares Outstanding and Adjusted EPS provides a better understanding of its earnings power inclusive of adjusting for the non-cash amortization of intangible assets, reflecting the Company's strategy to grow through acquisitions as well as organically.COLUMBUS McKINNON CORPORATIONReconciliation of Net Income to Adjusted EBITDA1($ in thousands)Three Months Ended June 30,20262025Net income (loss) attributable to the Company$ (88,729)$ (1,898)Add back (deduct):Income tax expense (benefit)21,044260Interest and debt expense47,6108,698Investment (income) loss(1,692)(1,049)Foreign currency exchange (gain) loss4,023(342)Other (income) expense, net (249)(177)Stock-based compensation2,6961,842Depreciation and amortization expense53,20112,266Transaction-related costs(232)8,103Acquisition integration costs15,312—Acquisition inventory step-up expense55,198—Business realignment costs2,7162,525Net loss (gain) on sales of businesses566—Factory and warehouse consolidation costs—482Monterrey, MX new factory start-up costs—1,901Adjusted EBITDA$ 111,464$ 32,611Net sales$ 531,461$ 235,920Net income (loss) attributable to the Company margin(16.7) %(0.8) %Adjusted EBITDA Margin21.0 %13.8 %Adjusted EBITDA is defined as net income (loss) attributable to the Company before interest expense, income taxes, depreciation, amortization, and other adjustments, including stock-based compensation. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures determined in accordance with GAAP and may not be comparable with Adjusted EBITDA and Adjusted EBITDA Margin as used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA Margin, are important for investors and other readers of the Company's financial statements.COLUMBUS McKINNON CORPORATIONReconciliation of Net cash provided by (used for) operating activities to Free Cash Flow andFree Cash Flow Excluding Deal Costs($ in thousands, except growth percentages)Three Months Ended June 30,20262025Net cash provided by (used for) operating activities$ 25,624$ (18,153)Capital expenditures(5,668)(3,202)Free Cash Flow$ 19,956$ (21,355)Kito Crosby Acquisition-related cash payments12,4674,100Free Cash Flow Excluding Deal Costs$ 32,423$ (17,255)Free Cash Flow is defined as GAAP net cash provided by (used for) operating activities less capital expenditures included in the investing activities section of the consolidated statement of cash flows. Free Cash Flow Excluding Deal Costs is defined as Free Cash Flow less cash payments related to transaction, financing and integration activities for the Kito Crosby Acquisition captured in the operating activities section of the consolidated statement of cash flows. Free Cash Flow and Free Cash Flow Excluding Deal Costs are not measures determined in accordance with GAAP and may not be comparable with measures as defined or used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Free Cash Flow and Free Cash Flow Excluding Deal Costs, is important for investors and other readers of the Company's financial statements and assist in understanding of the comparison of the current period Free Cash Flow and Free Cash Flow Excluding Deal Costs to that of historical periods.COLUMBUS McKINNON CORPORATIONReconciliation of Net Sales to Legacy CMCO Net Sales andNet Sales Growth to Legacy CMCO Net Sales Growth($ in thousands, except growth percentages)Three Months Ended June 30,20262025Net sales$ 531,461$ 235,920Less Divestiture net sales—(34,848)Less Kito Crosby Acquisition net sales(304,764)—Legacy CMCO Net Sales$ 226,697$ 201,072Net sales growth125.3 %Legacy CMCO Net Sales Growth12.7 %Legacy CMCO Net Sales is defined as net sales as reported, adjusted for the impact of the Kito Crosby Acquisition and Divestiture. Legacy CMCO Net Sales Growth is defined as the change in Legacy CMCO Net Sales between the current period and the prior year period divided by prior year period Legacy CMCO Net Sales. Legacy CMCO Net Sales and Legacy CMCO Net Sales Growth are not determined in accordance with GAAP and may not be comparable with non-GAAP net sales calculations used by other companies. Nevertheless, Columbus McKinnon believes that providing non-GAAP financial measures, such as Legacy CMCO Net Sales and Legacy CMCO Net Sales Growth, are important for investors and other readers of the Company's financial statements and assists in understanding the comparison of the current quarter's and fiscal year's net sales and net sales growth to the historical periods' net sales.COLUMBUS McKINNON CORPORATIONReconciliation of Credit Agreement Net Leverage Ratio($ in thousands)Twelve Months EndedJune 30, 2026March 31, 2026Net income (loss)$ (315,972)$ (229,437)Add back (deduct):Annualize EBITDA for the Kito Crosby Acquisition, Divestiture and synergies1197,083264,352Income tax (benefit) expense43,71422,930Interest and debt expense100,05761,145Cost of debt refinancing24,18524,185Depreciation and amortization expense117,97377,038Stock-based compensation10,4249,569Transaction-related costs47,26855,603Acquisition integration costs25,34512,795Acquisition inventory step-up expense91,99636,798Business realignment costs7,2644,310Factory and warehouse consolidation costs5721,054Headquarter relocation costs463463Loss on impairment of goodwill2200,000200,000Monterrey, MX new factory start-up costs4,5796,480Net (gain) loss on sale of business(102,740)(103,306)Net gain on sale of facilities(917)(917)Net loss attributable to noncontrolling interest(394)(98)Unrealized foreign exchange10,017(1,934)Credit Agreement Trailing Twelve Month Adjusted EBITDA$ 460,917$ 441,030Current portion of long-term debt and finance lease obligations$ 154,047$ 166,418Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations2,222,7362,226,589Total debt$ 2,376,783$ 2,393,007Standby letters of credit18,41816,067Cash and cash equivalents(98,410)(96,562)AR securitization facility obligations3$ (51,391)(53,127)Credit Agreement Net Debt$ 2,245,400$ 2,259,385Credit Agreement Net Leverage Ratio4.9x 5.1x 1EBITDA is normalized to include a full year of performance from Kito Crosby and Divestiture and assumes all cost synergies are achieved in fiscal 2026.2For its annual goodwill impairment test for fiscal 2026, the Company elected to bypass the qualitative assessment and performed a quantitative impairment test for its reporting units, comparing the carrying amount of each reporting unit with its estimated fair value. While each of the individual reporting units initially had fair values in excess of their book value, the sustained reduction in the Company's stock price and market capitalization resulted in the aggregate equity value of the combined company exceeding its market capitalization at its annual measurement date. On this basis, the Company reevaluated the fair value of each of its reporting units and this resulted in a partial impairment of the goodwill for the Precision Conveyance reporting unit in the amount of $200,000,000.3The Company's Credit Agreement definition of Net Debt excludes any debt related to its AR securitization facility given that borrowings under the AR securitization facility support the Company's short term working capital needs.Credit Agreement Net Debt is defined in the Company's Credit Agreement as total debt plus standby letters of credit, net of cash and cash equivalents and AR securitization facility obligations. Credit Agreement Net Leverage Ratio is defined as Credit Agreement Net Debt divided by the Credit Agreement Trailing Twelve Month Adjusted EBITDA. Credit Agreement Trailing Twelve Month Adjusted EBITDA is defined in the Company's Credit Agreement as net income adjusted for interest expense, income taxes, depreciation, amortization, and other adjustments. Credit Agreement Net Debt, Credit Agreement Net Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are not measures determined in accordance with GAAP and may not be comparable with the measures as used by other companies. Nevertheless, the Company believes that providing non-GAAP financial measures, such as Credit Agreement Net Debt, Credit Agreement Net Leverage Ratio and Credit Agreement Trailing Twelve Month Adjusted EBITDA are important for investors and other readers of the Company's financial statements.