CMCO

MKT CAP $403.1MP/E —DIV YIELD —FCF YIELD -30.45%REV TTM $1.5B +55.2%NET INCOME −$316.4MNET DEBT $2.3B52W 12.12 – 23.27SEC XBRL · TTM TO Invalid Date

How CMCO rewrote its risk factors

10-K ITEM 1A · FY2025 → FY2026

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New in FY2026

In addition, general macro-economic conditions could at times also adversely affect our liquidity and ability to borrow under our New Revolving Facility (as defined herein) and limits our ability to make accurate long-term predictions about the performance of the Company.
Our growth strategy depends on successful integration of acquisitions, including the recently completed Kito Crosby Acquisition.
Our historical growth has depended, and our future growth is likely to depend, on our ability to successfully execute our acquisition strategy, and the successful integration of acquired businesses into our existing business, including the recently completed Kito Crosby Acquisition.
Furthermore, the failure to achieve the anticipated synergies of our recent significant acquisitions, including the Kito Crosby Acquisition, or any future acquisitions, or recognize the anticipated market opportunities or integration from our recent acquisitions, could have a material adverse effect on our business, financial condition and results of operations.
We expect to devote significant management attention to integrating the business practices and operations of Kito Crosby with Columbus McKinnon.
We may experience disruptions to our business and, if integrated ineffectively, such disruptions could restrict the realization of the full expected benefits of the Kito Crosby Acquisition.
The failure to meet the challenges involved in the integration process and to realize the anticipated benefits of the Kito Crosby Acquisition could cause an interruption or loss of momentum in our operations.
Difficulties in integrating Kito Crosby into our business may include rationalizing the operations, processes and systems of the acquired business, retaining and motivating key management and employees, and integrating existing business relationships with suppliers and customers.
Even if an integration of Kito Crosby is successful, the financial and operational results may differ materially from our assumptions and forecasts due to unforeseen expenses, delays, conditions and liabilities.
Furthermore, the integration of Kito Crosby into our business may result in material unanticipated problems, expenses, charges, liabilities, competitive responses, loss of customers and other business relationships, and diversion of management’s attention.
We have incurred and expect to incur a number of significant non-recurring costs associated with the Kito Crosby Acquisition and the integration of Kito Crosby into our business.
In addition, we expect to incur integration costs as we integrate Kito Crosby’s business with ours, including facilities and systems consolidation costs and employment-related costs.
These expenses may result in us recording increased expenses as a result of the Kito Crosby Acquisition or the integration of Kito Crosby into our business, and the amount and timing of such charges are uncertain at the present and could exceed initial estimates.
Substantial legal and regulatory uncertainty exists regarding international trade relations and trade policy.
Global trade policy continues to evolve and the ultimate impact of recent developments with respect to U.S. tariffs is unclear.
Throughout 2025, the U.S. government implemented multiple new tariff measures under various authorities, including the International Emergency Economic Powers Act (“IEEPA”), many of which were announced, modified, suspended, or reinstated with limited notice.
These 2025 U.S. tariff actions included broad “reciprocal” tariff measures affecting imports from most countries and new tariffs targeting the industries in which we operate.
Supreme Court issued a ruling striking down certain tariffs previously imposed under the IEEPA.
Supreme Court’s decision, the U.S. presidential administration announced its intention to invoke other laws to collect tariffs and announced new tariffs on imports from all countries, in addition to any existing non-IEEPA tariffs.
There remains substantial uncertainty regarding the duration of existing and newly announced tariffs, potential changes or pauses to such tariffs, tariff levels, and whether further additional tariffs or other retaliatory actions may be imposed, modified, or suspended, and the impacts of such actions on our business.
An introduction of new duties, tariffs, quotas or other similar trade restrictions, or increases in existing duties or tariff rates, on products imported into the United States and other jurisdictions, whether actual, pending or threatened, may have a negative impact on our results of operations.
Significant uncertainty exists as to whether and when tariffs may be reduced or imposed, and what countries may be implicated.
Given that we cannot reasonably predict the timing or outcomes of trade actions by the U.S. government or other countries, the impact of such actions on our business and results of operations remains uncertain.
In the future, to the extent we are unable to pass on any steel, aluminum, or other raw material price increases to our customers, our profitability and margins could be adversely affected, including materially.
Our results of operations could be materially adversely affected if we are unable to obtain sufficient pricing for our products and services to meet our profitability expectations.
The dollar amount of backlog as of March 31, 2026 was $519,639,000.
Our backlog can be significantly affected by the timing of orders for large projects, and the amount of our backlog at March 31, 2026 is not necessarily indicative of future backlog levels or the rate at which backlog will be recognized as sales.
We depend on independent distributors to sell our products and provide service and after market support to our end-user customers.
Distributors play a significant role in determining which of our products are stocked at their locations, and hence are most readily accessible to after market buyers, and the price at which these products are sold.
Financial Risks In connection with the completion of the Kito Crosby Acquisition, our indebtedness has increased significantly.
In connection with the Kito Crosby Acquisition, the Company (i) entered into the New Credit Agreement which provides for credit facilities (the “New Facilities”) consisting of a Revolving Credit Facility in an aggregate amount of $500,000,000 (the “New Revolving Facility”) and a Term Loan B Facility (the “New Term Loan B Facility”) in an aggregate amount of $1,650,000,000 and (ii) issued $900,000,000 in aggregate principal amount of its 7.125% Senior Secured Notes due 2033 (the “Notes”).
The Company also borrowed an additional $53,400,000 under a credit agreement secured by the Company's U.S. accounts receivable balances (the "AR Securitization Facility").
As of March 31, 2026, the outstanding principal balance of the New Term Loan B facility was $1,456,990,000.
We had $458,933,000 available for borrowing under the New Revolving Facility (after deducting approximately $16,067,000 of letters of credit outstanding and $25,000,000 of outstanding borrowings) as of March 31, 2026.
If we issue additional debt securities, the debt holders would have rights senior to holders of our common stock to make claims on our assets and the terms of any debt could restrict our operations, including our ability to pay dividends on our common stock.
We have operations and assets located outside of the U.S., primarily in Germany, Japan, the United Kingdom, Australia, Hungary, China, Malaysia and Mexico, including our new facility in Monterrey, Mexico.
In our fiscal year ended March 31, 2026, approximately 44% of our net sales were derived from non-U.S. markets.
These non-U.S. operations are subject to a number of special risks, in addition to the risks of our U.S. business, including but not limited to differing protections of intellectual property, trade barriers, labor unrest, geopolitical conflicts, exchange controls, regional economic uncertainty, differing (and possibly more stringent) labor regulation, risk of governmental expropriation, U.S. and foreign customs, quotas and duties, and tariffs ( in particular, the tariffs implemented and additional tariffs proposed to be implemented on goods imported into the U.S. from Mexico and other countries where we have manufacturing operations and ongoing uncertainty in the interpretation of new tariffs and their applicability), political and economic instability in the jurisdictions in which we operate, foreign receivables collection risk, current and changing regulatory environments, difficulty in obtaining distribution support, difficulty in staffing and managing widespread operations, differences in the availability, and terms of financing, political instability and risks of increases in taxes.
Part of our strategy is to expand our worldwide market share and reduce costs by strengthening our international distribution capabilities and sourcing components in lower cost countries, such as China, Mexico, Hungary and Malaysia, including through the use of our new facility in Monterrey, Mexico.
In addition, in connection with Russia’s invasion of Ukraine, the U.S. has imposed, and may impose additional, financial and economic sanctions and export controls against Russia and certain Russian organizations and individuals, with similar actions effected by the European Union and the U.K. and other jurisdictions.

and 71 more.

Gone since FY2025

In addition, general macro-economic conditions could at times also adversely affect our liquidity and ability to borrow under our Amended and Restated Revolving Credit Facility (as defined herein) and limits our ability to make accurate long-term predictions about the performance of the Company.
Our growth strategy depends on successful integration of acquisitions, including upon closing of such transaction, the Kito Acquisition.
Our historical growth has depended, and our future growth is likely to depend, on our ability to successfully execute our acquisition strategy, and the successful integration of acquired businesses into our existing business, including, upon closing of such transaction, the Kito Acquisition.
Furthermore, the failure to achieve the anticipated synergies of our recent significant acquisitions or recognize the anticipated market opportunities or integration from our recent acquisitions, could have a material adverse effect on our business, financial condition and results of operations.
The new U.S. presidential administration has implemented or announced plans to implement, as the case may be, new or increased tariffs, particularly relating to imports from China, the European Union and other Asian countries, though it remains unclear exactly what actions will be taken or implemented.
In the future, to the extent we are unable to pass on any steel, aluminum, or other raw material price increases to our customers, our profitability could be adversely affected, including materially.
Our results of operations could be materially adversely affected if we are unable to obtain sufficient pricing for our products and service to meet our profitability expectations.
The dollar amount of backlog as of March 31, 2025 was $323 million.
Our backlog can be significantly affected by the timing of orders for large projects, and the amount of our backlog at March 31, 2025 is not necessarily indicative of future backlog levels or the rate at which backlog will be recognized as sales.
We depend on independent distributors to sell our products and provide service and aftermarket support to our end-user customers.
Distributors play a significant role in determining which of our products are stocked at their locations, and hence are most readily accessible to aftermarket buyers, and the price at which these products are sold.
Financial Risks In connection with the completion of the Precision Conveyance acquisitions, our indebtedness has increased significantly.
In connection with the montratec acquisition, the Company entered into an Amended and Restated Credit Agreement increasing the size of the Revolving Credit Facility by $75,000,000 to a total of $175,000,000.
The Company subsequently borrowed additional funds in accordance with the Accordion feature under its existing Term Loan B facility to increase the principal amount of the Term Loan B facility by $75,000,000 in both fiscal years 2022 and 2024.
The Company also borrowed an additional $25,000,000 under a new credit agreement secured by the Company's U.S. accounts receivable balances (the "AR Securitization Facility").
As of March 31, 2025, the outstanding principal balance of the Term Loan B facility was $437,560,000, which includes $75,000,000 in principal balance from the Accordion exercised in the first quarter of fiscal 2024 as described above.
We had $175,000,000 available for borrowing under the Amended and Restated Revolving Credit Facility (before deducting approximately $15,417,000 of letters of credit outstanding as of March 31, 2025).
Furthermore, we may be able to incur substantial additional indebtedness in the future and, in connection with the completion of the Kito Acquisition, expect to incur substantial additional indebtedness.
The terms of our current debt instruments do not fully prohibit us from doing so and the terms of any new debt instruments we enter into in the future, including in connection with the incurrence of indebtedness for the Kito Acquisition, may not fully prohibit us from doing so.
Any additional indebtedness we incur could further exacerbate the risks that we face.
If we issue new debt securities, the debt holders would have rights senior to holders of our common stock to make claims on our assets and the terms of any debt could restrict our operations, including our ability to pay dividends on our common stock.
We have operations and assets located outside of the U.S., primarily in Germany, the United Kingdom, Hungary, China, Malaysia and Mexico, including our new facility in Monterrey, Mexico.
In our fiscal year ended March 31, 2025, approximately 44% of our net sales were derived from non-U.S. markets.
These non-U.S. operations are subject to a number of special risks, in addition to the risks of our U.S. business, including but not limited to differing protections of intellectual property, trade barriers, labor unrest, geopolitical conflicts, exchange controls, regional economic uncertainty, differing (and possibly more stringent) labor regulation, risk of governmental expropriation, U.S. and foreign customs, quotas and duties, and tariffs ( in particular, the new tariffs implemented and additional tariffs proposed to be implemented by the new U.S. presidential administration on goods imported into the U.S. from Mexico and other countries where we have manufacturing operations), political and economic instability in the jurisdictions in which we operate, foreign receivables collection risk, current and changing regulatory environments, difficulty in obtaining distribution support, difficulty in staffing and managing widespread operations, differences in the availability, and terms of financing, political instability and risks of increases in taxes.
Part of our strategy is to expand our worldwide market share and reduce costs by strengthening our international distribution capabilities and sourcing components in lower cost countries, such as China, Mexico, Hungary and Malaysia, including through the use of our new facility in Monterey, Mexico.
In addition, in connection with Russia’s invasion of Ukraine, the U.S. has imposed, and is likely to impose material additional, financial and economic sanctions and export controls against Russia and certain Russian organizations and individuals, with similar actions either implemented or planned by the European Union and the U.K. and other jurisdictions.
While the Company’s business operations relating to Russia constitute an immaterial part of the Company’s overall business, we may decide to, or be required to, exit from our operations in Russia in their entirety, which could result in a loss of revenues from our Russian operations (approximately $836,000 for the fiscal year ended March 31, 2025) or may necessitate the need to incur a bad debt reserve or an asset write-off related to our Russian operations.
If such escalation should occur, supply chain, trade routes and markets currently served by the Company could be adversely affected and other risks discussed in this Form 10-K may be exacerbated.
Thus, a portion of our revenues (approximately $425,478,000 in our fiscal year ended March 31, 2025) are generated in foreign currencies, including principally the Euro, the British Pound, the Canadian Dollar, the South African Rand, the Brazilian Real, the Mexican Peso, and the Chinese Yuan, and while much of the costs incurred to generate those revenues are incurred in the same currency, a portion is incurred in other currencies.
Our Amended and Restated Revolving Credit Facility contains a financial leverage covenant, which will only be tested if any extensions of credit (other than letters of credit) are outstanding under the Amended and Restated Revolving Credit Facility at the end of any fiscal quarter, and other restrictive covenants.
A significant decline in our operating income or cash generating ability could cause us to violate our leverage covenant in our bank credit facilities.
Any breach of any such covenants or restrictions would result in a default under such agreement that could result in our being unable to borrow under our bank credit facilities and would permit the lenders to declare all borrowings under such agreement to be immediately due and payable and, through cross-default provisions, could entitle other lenders to accelerate their loans to us.
Risks related to the Kito Acquisition The Kito Acquisition is contingent upon the satisfaction of a number of conditions, including regulatory approval, that may be outside either party’s control and that either party may be unable to satisfy or obtain that could cause the stock purchase agreement to be terminated in accordance with its terms.
The closing of our acquisition of Kito remains subject to the satisfaction or waiver of certain closing conditions, including the expiration or early termination of the waiting period applicable to the consummation of the Kito Acquisition under the HSR Act and the receipt of certain other regulatory approvals.
These conditions to the completion of the Kito Acquisition, some of which are beyond our control and/or the control of Kito, may not be satisfied or waived in a timely manner or at all; accordingly, the Kito Acquisition may be delayed or not completed.
As a condition to granting required regulatory approvals, governmental entities may impose conditions, limitations, obligations or costs or place restrictions on our conduct after the closing of the Kito Acquisition.
Such conditions or changes and the process of obtaining regulatory approvals could, among other things, have the effect of delaying completion of the Kito Acquisition or of imposing additional costs or limitations on us following the Kito Acquisition, any of which may have an adverse effect on us.
Additionally, either we or Kito may terminate the stock purchase agreement under certain circumstances specified therein, subject to the payment of a “termination fee” in certain cases.
The Kito Acquisition may present certain risks to our business and operations prior to the closing.
Our business and operations are subject to various risks related to the Kito Acquisition prior to closing, including: • uncertainty about the effect of the Kito Acquisition on employees, customers, suppliers and other persons with whom we or Kito Crosby have a business relationship having an adverse effect on our business, operations and stock price; • our operations may be restricted by the terms of the stock purchase agreement for the Kito Acquisition, which may cause us to forgo otherwise beneficial business opportunities; • the proposed transaction may disrupt our current business plans and operations; • our management’s attention may be directed toward the completion of the Kito Acquisition and diverted away from our day-to-day business operations; • we may incur significantly higher transaction costs than we currently anticipate, such as legal, financing and accounting fees, and other costs, fees, expenses and charges related to the Kito Acquisition, whether or not the transaction is completed; and • the Kito Acquisition may not be completed, which may have an adverse effect on our stock price and future business and financial results.

and 36 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2025 ↗, FY2026 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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