Columbus McKinnon Q1 2025 Earnings Report
Key Takeaways
Columbus McKinnon reported a 2% increase in net sales to $239.7 million and a gross margin increase of 30 bps to 37.1% in Q1 FY25. The company reaffirms its FY25 guidance. Net income was $8.6 million, and adjusted EBITDA increased 2% to $37.5 million.
Net sales increased 2% to $239.7 million with strength in precision conveyance.
Backlog increased 4% from the prior quarter with book-to-bill ratio of 1.05x.
Gross margin increased 30 bps to 37.1%; Adjusted Gross Margin increased 110 bps to 38.0%.
Net income of $8.6 million or 3.6% of sales including $2.6 million of costs for factory simplification.
Columbus McKinnon
Columbus McKinnon
Columbus McKinnon Revenue by Geographic Location
Forward Guidance
The Company is issuing the following guidance for the second quarter of fiscal 2025, ending September 30, 2024: Net sales down low to mid-single digits year-over-year and Adjusted EPS down mid-single digits year-over-year. The Company is reaffirming the following guidance for the fiscal year 2025, ending March 31, 2025: Net sales low-single digit growth year-over-year, Adjusted EPS mid to high-single digit growth year-over-year, Capital Expenditures $20 million to $30 million and Net Leverage Ratio ~2.0x
Positive Outlook
- Reaffirming FY25 guidance for net sales growth.
- Reaffirming FY25 guidance for adjusted EPS growth.
- Reaffirming FY25 guidance for capital expenditures.
- Reaffirming FY25 guidance for net leverage ratio.
- Expected debt repayment of $60 million for FY25.
Challenges Ahead
- Second quarter 2025 guidance assumes approximately $9 million of interest expense.
- Second quarter 2025 guidance assumes approximately $8 million of amortization.
- Second quarter 2025 guidance assumes an effective tax rate of 25%.
- Second quarter 2025 guidance assumes 29.2 million diluted average shares outstanding.
- Second quarter fiscal 2025 guidance reflects the expected effect of the consolidation of North American linear motion production into the new Monterrey, MX manufacturing center of excellence.
Revenue & Expenses
Visualization of income flow from segment revenue to net income