Columbus McKinnon Q2 2027: Kito Crosby Powers a 61% EPS Beat
As seen on the 24/7 Wall St. homepage on November 3, 2026.
The Kito Crosby deal lifted adjusted EBITDA margin 520 basis points to 20.6%, with synergies tracking ahead of plan, and management raised full-year guidance to adjusted EPS of $2.00 to $2.15. The offset: leverage at 4.9x and a GAAP net loss on interest expense.
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Columbus McKinnon posted adjusted EPS of $0.61, beating expectations, as the February 2026 Kito Crosby acquisition more than doubled net sales year over year.
The acquisition reset the margin profile: adjusted EBITDA margin expanded 520 basis points to 20.6%, with integration synergies tracking ahead of plan. Legacy operations grew net sales as well, on pricing and volume gains and firm demand in Asia and EMEA.
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Management raised full-year guidance, now targeting adjusted EPS of $2.00 to $2.15, and lifted its net sales and adjusted EBITDA outlook. That signals confidence second-half performance can sustain the first half's pace.
The offset investors need to weigh is a balance sheet still carrying significant acquisition debt, with net leverage at 4.9x and interest expense far above year-ago levels. That burden produced a GAAP net loss and negative free cash flow, and management has made debt reduction the top capital allocation priority for the rest of the fiscal year.
Sources
Mentioned: CMCO