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Jun 30, 2024
Columbus McKinnon Q1 2025 Earnings Report
Columbus McKinnon reported continued sales growth and gross margin expansion.
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
Revenue by Geographic Location
U.S. Sales Revenue
CapyFin.comNon-U.S. Sales Revenue
CapyFin.com 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