Columbus McKinnon Corporation (CMCO) reported a decrease in sales and earnings for the third quarter of its fiscal year 2025, which ended December 31, 2024. The company’s net sales fell to $234.1 million, a 7.9% drop from the same period last year. The decline was primarily due to a 6% reduction in short-cycle orders, although orders for Precision Conveyance and Linear Motion solutions grew by 16% and 8%, respectively.
The company faced a tough quarter, with a 4% overall drop in orders, and a 5% decline in the Americas, which overshadowed a 1% increase in the EMEA region. Columbus McKinnon also reported a decrease in gross profit, which fell by 12.6%, as well as a reduction in operating income, which dropped 34.3% year-over-year. This resulted in a significant decline in both GAAP earnings per share (EPS), which was $0.14 compared to $0.34 in Q3 FY24, and adjusted EPS, which fell from $0.74 to $0.56.
The company’s President and CEO, David J. Wilson, attributed the slowdown in demand to delayed customer decision-making, influenced by U.S. policy uncertainty and ongoing weakness in European economies. The strengthening of the U.S. dollar also had a negative impact, reducing EPS by $0.11 compared to the previous year. Despite these challenges, Wilson expressed confidence in the company’s long-term prospects, noting efforts to reduce costs and align manufacturing capacity with demand.
In terms of future expectations, Columbus McKinnon issued a cautious outlook for the remainder of the fiscal year. The company anticipates a continued impact from the uncertain policy environment and subdued demand in Europe. However, it remains focused on its long-term strategy, including simplifying its manufacturing footprint. As part of this, the company recently consolidated two factories into existing facilities as part of an ongoing initiative to streamline operations.
For the full fiscal year 2025, Columbus McKinnon expects a mid-single-digit decrease in net sales and a low-teens decrease in adjusted EPS compared to the prior year. The company also forecasts capital expenditures between $18 million and $22 million and a net leverage ratio of approximately 3.0x.
