Columbus McKinnon Q1 2026 Earnings Report

Columbus McKinnon EPS Results

• Actual EPS: $0.50
• Consensus EPS: $0.47
• Beat/Miss: Beat by +$0.03
• One Year Ago EPS: N/A

Columbus McKinnon Revenue Results

• Actual Revenue: $235.92 million
• Expected Revenue: $230.88 million
• Beat/Miss: Beat by +$5.04 million
• YoY Revenue Growth: N/A

Columbus McKinnon Announcement Details

• Quarter: Q1 2026
• Date: 7/30/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, July 30, 2025
• Conference Call Time: 10:00AM ET

Columbus McKinnon (NASDAQ:CMCO) is a global designer, manufacturer and marketer of material handling systems and solutions. The company’s product portfolio spans electric and manual hoists, motorized and manual chain and wire rope hoists, end-of-arm tooling, rigging hardware, trolleys and controls. Through its brands, Columbus McKinnon serves customers across a wide range of end markets including manufacturing, warehousing, construction, and energy, providing equipment for lifting, positioning and flow control applications.

With a focus on safety and productivity, Columbus McKinnon integrates advanced technologies such as automation controls, digital load monitoring and Internet-of-Things connectivity into its hoist and crane systems. Its Motion Control product lines offer programmable logic controls, radio remote controls and variable frequency drives designed to enhance precision and efficiency in industrial operations. Rigging hardware and accessories from the company are engineered to meet stringent industry standards for load capacity and durability.

Tracing its roots to a machine shop founded in Columbus, Ohio, in 1875, Columbus McKinnon has expanded through strategic acquisitions and international distribution partnerships. The company maintains manufacturing and engineering facilities in North America, Europe and Asia Pacific, supported by a network of independent distributors and service centers. Over its history, Columbus McKinnon has combined organic innovation with targeted acquisitions to broaden its product offering and extend its geographic reach.

Under the leadership of President and Chief Executive Officer Mark A. Wolfe, Columbus McKinnon places emphasis on research and development, operational excellence and customer support. The company’s management team works to drive continuous improvement in safety performance and product quality while pursuing new market opportunities in smart manufacturing and infrastructure development. By aligning its engineering capabilities with customer needs, Columbus McKinnon aims to deliver reliable material handling solutions that address evolving industry challenges.

Columbus McKinnon Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Orders grew 2% year-over-year to $259 M, driven by 8% project order growth in EMEA, and backlog increased 23% to $360 M.
• Negative Sentiment: Tariffs reduced gross profit by $4.2 M and gross margin by 180 bps in Q1, with a total expected $10 M headwind to operating profit in H1.
• Positive Sentiment: The company reaffirmed full-year guidance of flat to slightly up net sales and adjusted EPS, targeting tariff cost neutrality by FY26 and margin neutrality by FY27.
• Negative Sentiment: Free cash flow was a use of $21.4 M in Q1 due to working capital seasonality, $4.1 M of acquisition payments, $3.1 M higher taxes, and $3 M tariff payments.
• Positive Sentiment: Pending Keto Crosby acquisition is expected to close by year-end with net leverage around 5×, aiming to accelerate growth, synergies, and the intelligent motion strategy.

Presentation

[Operator]

Good morning, and welcome to Columbus McKinnon's First Quarter Fiscal twenty twenty six Earnings Conference Call. My name is Marissa, and I will be your conference operator for today. As a reminder, this call is being recorded. I would now like to turn the conference over to Kristi Moser, Vice President of Investor Relations and Treasurer.

[Kristine Moser, VP of Investor Relations & Treasurer at Columbus McKinnon]

Thank you, and welcome, everyone, to our call. On today's call, we will be covering our first quarter fiscal twenty twenty six financial and operational results. On the call with me today are David Wilson, our President and Chief Executive Officer and Greg Rustowicz, our Chief Financial Officer. In a moment, David and Greg will walk you through our financial and operating performance for the quarter. The earnings release and presentation to supplement today's call are available for download on our Investor Relations website at investors.cmcl.com.

[Kristine Moser, VP of Investor Relations & Treasurer at Columbus McKinnon]

Before we begin our remarks, please let me remind you that we have our Safe Harbor statement on slide two. During the course of this call, management may make forward looking statements in regards to our current plans, beliefs, and expectations. These statements are not guarantees for future performance and are subject to a number of risks and uncertainties and other factors that can cause actual results and events to differ materially from the results and events contemplated by these forward looking statements. I'd also like to remind you that management will refer to certain non GAAP financial measures. You can find reconciliations of the most directly comparable GAAP financial measures on the company's Investor Relations website and in its filings with the Securities and Exchange Commission.

[Kristine Moser, VP of Investor Relations & Treasurer at Columbus McKinnon]

Please see our earnings release and our filings with the Securities and Exchange Commission for more information. Today's prepared remarks will be followed by a question and answer session. We respectfully ask that you limit yourself to one question and one follow-up question. With that, I'll turn the call over to David.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Thank you, Christy, and good morning, everyone. In the first quarter, we delivered results that were in line with expectations as the quarter progressed largely as anticipated. We delivered another quarter of orders growth with orders up 2% year over year to a total of $259,000,000 This was driven by 8% growth in project related orders and particular strength in EMEA. Order performance also improved throughout the course of the quarter peaking in June. Short cycle orders were down 4% in the quarter as surcharges and price increases were implemented and the markets digested the impact of tariffs.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Our backlog is now up $67,000,000 or 23% versus the prior year to $360,000,000 as longer cycle project orders associated with our targeted commercial initiatives are more than offsetting recent softness within short cycle markets. As we've discussed previously, short cycle orders remain more sensitive to channel dynamics impacted by policy uncertainty and an evolving macroeconomic landscape. Over time, we anticipate this demand will stabilize and that attractive opportunities from industry megatrends like near shoring, scarcity of labor, and infrastructure investments will emerge, but we anticipate the next few quarters may remain choppy. While macro uncertainty remains, we continue to see strength in vertical end markets where we've been building a leadership position, like battery production, e commerce, food and beverage, aerospace, oil and gas, and rail projects. Additionally, we are focused on strength and orders related to the Department of Defense in The US, as well as increased defense investments globally.

[David Wilson, President, CEO & Director at Columbus McKinnon]

We are also starting to see potential benefits from end markets heavily impacted by tariffs, like steel and heavy equipment, to maximize the productivity of their existing U. S. Facilities. While there is a lot in the news about announced production investments and expansions, it's still early days for many of those investments. Given our products are late in the investment cycle for new production, we expect that customer requests for these projects will serve as a tailwind over time.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Q1 sales came in modestly ahead of expectations and down 2% from the prior year driven by a 3% decline in short cycle sales largely as a result of the previously mentioned tariff environment and a slower than expected macro recovery in Germany. As we projected last quarter, tariffs were a headwind to operating profit and margins with a $4,200,000 impact to gross profit and a 180 basis point impact to gross margin in the first quarter. We continue to expect tariffs to be a $10,000,000 headwind to operating profit impacting margins and adjusted EPS in the first half of the year. We are targeting the achievement of tariff cost neutrality by the 2026 as our mitigation actions, including price adjustments, take greater effect as we progress throughout the course of the year. We also expect to achieve margin neutrality over time, but that will likely occur in fiscal twenty twenty seven as we work through our backlog.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Our Q1 SG and A was down 5% excluding $8,000,000 of Keto Crosby related expenses, and approximately $1,000,000 of other non core adjustments as we managed expenses to offset volume and mix pressure. As a result, we delivered adjusted EPS that was slightly ahead of expectations and we are reaffirming guidance for the full year. I would like to thank our entire Columbus McKinnon team for all that they are doing to advance our business on behalf of our customers and our shareholders. Despite what has been a volatile start to the year in light of an evolving tariff policy and macroeconomic landscape, our team has remained focused on execution, providing our customers with the best experience possible while managing costs with discipline, implementing appropriate tariff mitigation actions, and advancing acquisition preparedness. We remain enthusiastic about the pending Keto Crosby acquisition, which we expect to scale our business, expand customer capabilities, enable synergies and over time accelerate our intelligent motion strategy.

[David Wilson, President, CEO & Director at Columbus McKinnon]

As we announced at the May, we received a second request related to our final regulatory approval requirement. This request was consistent with expectations and is a fairly standard step in the regulatory review process. While the exact timing remains uncertain, we continue to anticipate deal closure by the end of the calendar year. I will now turn the call over to Greg to take you through the details of our first quarter financial results and guidance.

[Gregory Rustowicz, SVP of Finance, CFO & Treasurer at Columbus McKinnon]

Thank you, David, and good morning, everyone.

[Gregory Rustowicz, SVP of Finance, CFO & Treasurer at Columbus McKinnon]

As David shared, the quarter unfolded largely as expected. We delivered results slightly ahead of expectations due to the ever changing tariff policies, which delayed implementation of certain tariffs from the first quarter to the second quarter. We delivered sales of $235,900,000 down 2% from the prior year, attributed to a 3% decrease in short cycle sales. Project related sales were unchanged from the prior year despite 8% growth in orders as the timing of orders are expected to benefit the remainder of fiscal year 'twenty six and beyond. Sales volume was down $9,000,000 including an impact of approximately $3,000,000 in The U.

[Gregory Rustowicz, SVP of Finance, CFO & Treasurer at Columbus McKinnon]

S. From lower book and bill orders as the market adjusted to tariff surcharges. Volume was also lower in Europe due to project timing in our lifting business. Overall, we benefited from price increases year over year and implemented an additional price increase in The U. S.

[Gregory Rustowicz, SVP of Finance, CFO & Treasurer at Columbus McKinnon]

Effective July 10, which will be realized over the next few quarters. FX was a tailwind in the quarter of $3,000,000 as well. Gross profit of $77,200,000 decreased $11,800,000 versus the prior year on a GAAP basis, impacted by lower sales volume and mix and $4,200,000 of tariff related impacts. On a GAAP basis, our gross margin was 32.7% and on an adjusted basis, our gross margin was 34.3. Adjusted gross margin contracted three seventy basis points year over year, largely due to the previously discussed impact of tariffs, as well as the impact of lower volume on our factory absorption and an unfavorable sales mix.

[Gregory Rustowicz, SVP of Finance, CFO & Treasurer at Columbus McKinnon]

With the dynamic environment that we find ourselves in, we managed RSG and A expenses appropriately. While RSG and A expense increased $3,700,000 to $64,100,000 on a GAAP basis, this included $8,100,000 in acquisition related costs from the pending Keto Crosby acquisition and $1,100,000 in business realignment costs, which have less than a one year payback. Excluding these items, adjusted RSG and A was down $3,100,000 to $54,800,000 As a percentage of sales, adjusted RSG and A improved 90 basis points to 23.2. As a result, we generated operating income of $5,500,000 in the quarter on a GAAP basis and adjusted operating income of $18,500,000 Adjusted operating margin was 7.8% in the quarter. Adjusted EBITDA was 30,800,000 in Q1 with an adjusted EBITDA margin of 13%.

[Gregory Rustowicz, SVP of Finance, CFO & Treasurer at Columbus McKinnon]

We recorded a GAAP loss per diluted share for the quarter of $07 and adjusted earnings per share of $0.50 Adjusted earnings per diluted share decreased $0.12 versus the prior year, almost entirely due to an unfavorable $0.11 tariff related impact. Free cash flow was a use of cash of $21,400,000 in the quarter, reflecting the normal working capital seasonality of our business, as well as several unique items, including 4,100,000 of acquisition related cash payments, dollars 3,100,000.0 of higher cash taxes largely related to the timing of tax payments resulting from Hurricane Helene federal tax relief, as well as $3,000,000 of tariff payments. Finally, we are reaffirming our guidance for fiscal twenty twenty six of net sales growth of flat to slightly up year over year and adjusted EPS growth also flat to slightly up year over year. As we discussed last quarter, tariffs will negatively impact earnings in the first half of our fiscal year as we work to offset this impact with additional price increases and supply chain modifications. We continue to expect that this will impact our adjusted EPS guidance by $0.20 to $0.30 in the 2026.

[Gregory Rustowicz, SVP of Finance, CFO & Treasurer at Columbus McKinnon]

However, we do anticipate achieving gross profit dollar neutrality on tariffs by the '6 with actions underway to achieve margin neutrality in fiscal 'twenty seven. Also, note that our guidance does not include any financial results from the pending acquisition of Keto Crosby. We remain enthusiastic about the pending acquisition of Keto Crosby and our ability to achieve our stated long term objectives. While we continue to navigate an uncertain macro environment, we remain focused on our controllables, including operational execution, cost control, and driving our commercial initiatives. Operator, we are now ready to take questions.

[Operator]

Thank you. Ladies and gentlemen, we will now begin the question and answer A. Davidson. Please go ahead.

[Matt Summerville, MD & Senior Research Analyst at D.A. Davidson]

Thanks. Good morning. Couple of questions. With respect to the gross margin performance in the quarter, the down $370,000,000 that was a bit more punitive than we would have been modeling. Maybe it was just our model was off.

[Matt Summerville, MD & Senior Research Analyst at D.A. Davidson]

But can you help parse out that $370,000,000 and what we should be thinking about gross margin cadence from here relative to kind of normal seasonality with 34.3% kind of being the jump off point? And then I have a follow-up.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Hey, Matt. Good morning. It's David. Let me take a start at that. And if Greg wants to add, he certainly can.

[David Wilson, President, CEO & Director at Columbus McKinnon]

We obviously saw 180 basis points of erosion at the gross margin line tied to tariffs as we cited in the prepared remarks. Additionally, from a mix perspective, we had a lower volume of some higher margin products, notably automation related shipments, and then at the same time, the linear motion products that we're providing out of our Monterrey, Mexico location. Volume there is ramping, but from a volume weighted perspective, the mix was off given a reduction in some of those higher margin products, and then we had a higher volume of some lower margin products, notably the rail business showed strength in the period. In addition, we had a higher volume of some lower margin hoist products that were shipped out of our Wadesboro facility. And so the combination of mix, the tariff impact, and then lower volume, as you know, in the period our sales were down between 23% year over year.

[David Wilson, President, CEO & Director at Columbus McKinnon]

And so the compare there is what would have driven that margin comparison.

[Matt Summerville, MD & Senior Research Analyst at D.A. Davidson]

Got it. And then as a follow-up, well, not necessarily a follow-up, sort of the tail end of that question is how do gross margins kind of using 34.3% as a jump off point, how should we think about the cadence as we move through the year also bearing in mind seasonal factors? And then I have a follow-up.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Yes, sure. So we have confidence in our ability to expand margins in the business. We do anticipate, as we said, that the first half will be muted by the tariff impact that we expect to continue into the second quarter. And as we are driving initiatives that enable growth in targeted areas and as we are executing to ramp volumes in facilities that we've been investing in, we believe that we'll see margin support in the shipment of those products as we progress throughout the year. Obviously with a consideration for the third quarter where we would typically see a bit of a negative impact on margins given the number of shipping days versus the previous periods and the absorption requirements during that period.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Yeah, and Matt, as you know, fourth quarter is typically our seasonally strongest, and in the fourth quarter we tend to have our factories running very hard, and we'll have much better absorption than we did this quarter.

[Matt Summerville, MD & Senior Research Analyst at D.A. Davidson]

Got it. And then just as a follow-up, can you maybe talk about more detail around what you're seeing specifically from an order backlog sort of standpoint in areas like EV battery, in areas like e commerce?

[David Wilson, President, CEO & Director at Columbus McKinnon]

Yes, so we have really attractive funnel of opportunities in those areas as mentioned in the prepared remarks, battery production, e commerce, food and beverage and aerospace have presented promising opportunities. The defense industries both here and abroad are gaining momentum. Steel and heavy equipment have been really positive and those areas have been impacted pretty heavily by tariffs, and so we're seeing investments that are really beginning to show green shoots there in terms of quoting opportunities. The specifics of projects, given the competitive nature of those, I don't want to get into names and specific projects, but I will say that we're encouraged by the funnel in e commerce, in battery, and in a number of the targeted industries I just spoke of. We did take a very large oil and gas order in the second quarter for The Middle East that was very encouraging.

[David Wilson, President, CEO & Director at Columbus McKinnon]

While utilities are flat right now, we're entering the hurricane season and we expect that to pick up to provide a tailwind to some of our short cycle business activity. And when we talk battery, it's not just battery, there's battery and electronics opportunities that are pretty attractive as we think about some of the newer parts of our portfolio and potential growth opportunities there.

[Matt Summerville, MD & Senior Research Analyst at D.A. Davidson]

Thanks Dave.

[David Wilson, President, CEO & Director at Columbus McKinnon]

You bet, thanks Matt.

[Operator]

Your next question comes from John Tanwanteng with CJS. Please go ahead.

[Analyst]

Hi. This is Will on for Jon. Congrats on the beat and the order strength. Can you dive a little deeper into the 1.1x book to bill and maybe break out how much of that is coming from price increases and how much is coming from ongoing demand strength?

[David Wilson, President, CEO & Director at Columbus McKinnon]

Yeah, Will, good morning. Happy to do that. So, obviously encouraged by the funnel and the continued book to bill strength at 1.1. Order growth year over year was about 2%, and I would say that somewhere on the order of about 1% of that might be from price. Obviously we have price increases that go into effect towards the end of a quarter, and as those phase into the new quarter, there's obviously a stickiness that takes hold, and then the translation of that into the backlog.

[David Wilson, President, CEO & Director at Columbus McKinnon]

And we think that we probably got about 1% of that 2% from price. Thank you, Just to add on, Will, so most of, sorry, most of the increase is in long term backlog, and a lot of that is project related. So it is new projects, I. E. Volume related.

[Analyst]

Thank you. And then can you provide an update on Keto Crosby acquisition and where you expect leverage to be post close? Have there been any surprises either negative or positive in the process?

[David Wilson, President, CEO & Director at Columbus McKinnon]

Yeah, let me start and ask Greg to take the question on the leverage part of it. The acquisition is advancing in terms of preparedness for close. We've received all of our regulatory approvals but one final approval. As I mentioned, we had a second request from the Department of Justice related to our HSR approval, which was anticipated in a pretty standard part of the process. We're working constructively through that process, and are anticipating that we'll be in a position to close that transaction by the end of the year.

[David Wilson, President, CEO & Director at Columbus McKinnon]

We are working in parallel to obviously make sure that we're ready day one for a successful integration, and so we're gearing up with organizational adjustments and analysis and planning around those integration elements, and the ability to support those with an executive led integration management office. And a governance structure around that that involves both the senior leadership team as well as our board to ensure that we execute well. As you know, deals that are done exceed because of successful integration, and we're making sure that we're prepared to deliver on the targets that we've set out for the deal. And we'll be measuring ourselves on a weekly, monthly, and quarterly basis in terms of our ability to track to those and reporting out on those on a quarterly basis to you in these calls. Tracking savings, synergies more broadly, and debt repayment.

[David Wilson, President, CEO & Director at Columbus McKinnon]

And that might be a good place for me to hand off to Greg and ask him to talk about the leverage position and plans from there. Yeah, hey Will, so when we originally announced the deal, we anticipated that our net leverage would be about 4.8 times at close. And obviously, with the impact of tariffs, in our case roughly $10,000,000 and certainly Keto Crosby is also having an impact from tariffs, that will impact EBITDA. We now expect it to be roughly five times at close, so not materially different.

[Analyst]

Thank you very much.

[Operator]

Your next question comes from Steve Farazani with Sidoti. Please go ahead.

[Steve Ferazani, Senior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC]

Good morning, David. Good morning, Greg. I appreciate the detail on the call. Just wanted to ask, and I know you noted the project orders you're picking up, a lot of those are long term projects. I'm trying to get a sense of how much of that is in fiscal 'twenty six guidance, how much of that's really going to be an impact next year, and how much of that's multi year?

[David Wilson, President, CEO & Director at Columbus McKinnon]

Happy to answer Steve, good morning. So we believe that between 7080% of our current backlog is actionable in this year, and the balance of it would extend beyond that timeframe. And so obviously we continue to work with customers on their delivery schedules and there can be shifts both out of the year and into the year based on the way that their site readiness is progressing, and we're working to see if we can level load that backlog as well, because as you can imagine, projects can be lumpy based on their delivery dates, and you'd like to be in a position to level load, improve operational efficiency, and leverage capacity for level loading. So we're working to try to do that with those orders, and where we can and we've been successful at striking revenue recognition support for over time accounting treatment, we've done that. And so about 70 to 80% will phase into this year of the $360,000,000 in backlog that we have, and the balance will come out of the year, and we're working to move as much of that into the periods that we can leverage to be more level loaded as possible.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Yeah, so just giving a little more color on that, Steve, so of the remaining 20% that David referenced as being out of this fiscal year, The vast majority of that is fiscal twenty seven, where we do have multi year deliveries would typically be in our rail business, where we could have some projects that we take today that are for two years from now.

[Steve Ferazani, Senior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC]

Okay, so all of the EV battery contracts you have are expected to be completed within the next eighteen months, essentially?

[David Wilson, President, CEO & Director at Columbus McKinnon]

Yeah, those battery, yes. So that would be over the course of this year and next with the volume that we have in backlog. Those contracts are agreed to on a percentage of completion basis, and so those are over time revenue recognition contracts. It. Okay, if I could get one For more the most part, I mean there are exceptions to that with individual products, but certainly the battery related ones have been.

[Steve Ferazani, Senior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC]

Perfect. If I could just get in, and you gave a lot of numbers, I didn't hear if you had updated CapEx guidance for this year and how you think that's gonna affect, how you're thinking about cash flow, knowing that Q1 is always the seasonally weakest quarter.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Yeah, so we expect so that will be in our 10 Q that's filed later today, and it's in roughly the 20,000,000 to $25,000,000 range.

[Steve Ferazani, Senior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC]

And do you have any thoughts on cash flow this year?

[David Wilson, President, CEO & Director at Columbus McKinnon]

Yeah, so cash flow is going to be a little difficult to predict, just given the amount of deal costs and when the deal closes. And so obviously, in the first quarter David referenced, or I referenced that we had about $4,000,000 of deal costs that got paid. And just to give maybe some additional color, we expect that over the next couple of quarters it could be another $3,000,000 each quarter. And once again, we were targeting to close by the end of the calendar year, and once the deal closes there will be a whole other level of financing costs and some other M and A costs that will have to be paid as well. We do expect from a free cash flow perspective that we will improve our working capital and certainly with our EBITDA.

[David Wilson, President, CEO & Director at Columbus McKinnon]

But the big unknown is going to be the exact timing of all these deal costs, which a big chunk of it is going be dependent on when the deal actually closes.

[Steve Ferazani, Senior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC]

Fair enough. Thanks, David. Thanks, Greg.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Thanks, Steve.

[Operator]

Your next question comes from James Kirby with JPMorgan. Please go ahead.

[James Kirby, Vice President at JP Morgan]

Hey, good morning guys. I know you guys didn't give formal 2Q guidance, but maybe just for a top line, are you expecting kind of the 2% down in 1Q to be improved in 2Q or is 2Q going be the low point kind of in the year for top line sequential growth?

[David Wilson, President, CEO & Director at Columbus McKinnon]

Yes. So Q2, we would typically anticipate a progression to the positive from Q1, and as we look at the book to bill that's growing and our efforts to level load that production throughout the balance of the year, we would anticipate that we'd see progress as we enter Q2. And in addition, as you know, we've implemented price increases that should have an impact in a more meaningful way as we go through the balance of the year. And so, without giving a definitive guidance answer to that, James, what I would say is that we do anticipate a progression from Q1 to Q2 from a revenue perspective.

[James Kirby, Vice President at JP Morgan]

It. That's helpful.

[James Kirby, Vice President at JP Morgan]

To be positive. It. No, no, that's good color. And then just for my second question, you mentioned the price surcharge went into place July 10, I believe. Is there another planned coming up or is that dependent on tariff developments to happen with China and Europe?

[David Wilson, President, CEO & Director at Columbus McKinnon]

Yeah, think we're going to continue to monitor how things develop and obviously we'll be agile and responsive. We believe that what we've done to date accommodates the current assessment of impact to our business and the appropriate pricing actions. We've been thoughtful and surgical with the way that we've put those price increases in place, looking at it from an eightytwenty perspective and making sure that we're moving the business forward in the direction that we're trying to accomplish strategically. But we believe we've taken the action we need to take, given all the information we know today, and as we learn more, we'll be responsive if there's a need for further adjustments. Yeah, and just to reiterate what we said on the call earlier, that we do expect to be profit neutral by the October 1 timeframe.

[James Kirby, Vice President at JP Morgan]

Got it. Thanks for the questions.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Thank you, James.

[Operator]

Thank you so much. That concludes the Q and A section of this earnings call. I will now turn the call back over to Mr. Wilson for closing remarks.

[David Wilson, President, CEO & Director at Columbus McKinnon]

Great, thank you Marissa, and thank you to all for joining us today. Our business remains healthy, supported by a record backlog that has increased 23% year over year and an encouraging funnel of demand with strong quotation activity across our targeted end markets. We delivered results that were slightly ahead of expectations with continued order growth and tariff impacts in line with our expectations. While navigating through geopolitical and trade policy uncertainty, our team remains focused on meeting customers' needs and delivering long term value to our shareholders. Within the business, we are focused on what we can control, operating effectively, managing the business with agility, and executing our strategic plan.

[David Wilson, President, CEO & Director at Columbus McKinnon]

As you would expect, we are diligently assessing and managing costs and we're implementing mitigation strategies to offset the impact of tariffs. Remaining flexible to capitalize on upside opportunities and deliver attractive growth, and we continue to advance our strategic plan framework. We continue to make progress towards the closing of Keto Crosby and anticipate completion towards the end of this year. We remain highly enthusiastic about our combination, which we believe will enable us to deliver a superior customer value across a broader set of geographies, generate enhanced financial results, and create long term value for our shareholders. Thanks for investing your time with us today.

[David Wilson, President, CEO & Director at Columbus McKinnon]

As always, please reach out to Christie if you have any questions. Thank you.

[Operator]

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Participants

Executives

• Kristine Moser, VP of Investor Relations & Treasurer
• David Wilson, President, CEO & Director
• Gregory Rustowicz, SVP of Finance, CFO & Treasurer

Analysts

• Matt Summerville, MD & Senior Research Analyst at D.A. Davidson
• Analyst
• Steve Ferazani, Senior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC
• James Kirby, Vice President at JP Morgan