CMCO - Earnings call transcript Q3 2025 | Columbus McKinnon Corporation

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Columbus McKinnon Corporation Third Quarter 2025 Earnings Conference Call. [Operator Instructions] This call is being recorded on Monday, February 10, 2025.

And I would now like to turn the conference over to Ms. Kristine Moser. Thank you. ahead. go Please

Kristine Moser

of welcome, journey we'll and our creation XXXX our On with evolution and announced call. results This advantages Columbus Thank an scale combines is covering everyone, all X both for stakeholders. call, exciting combination recently the be well our fiscal value Crosby our today's of with as McKinnon. strategic you, in as to Kito that third strong financial businesses quarter complementary

today me Executive financial with will call David Rustowicz, Wilson, Chief quarter Chief the On these including businesses and Investor through In investors.cmco.com. today's and Greg on more earnings release and President Relations are for the Dave before on The details Officer; call our our our X performance walk download you at and Greg great sharing and deal, operating about McKinnon a are Financial about why Officer. Columbus to presentation, together. our website Kito is the Crosby so for supplement available bringing excited moment,

begin harbor Before safe you we remind that please me let our remarks, X. on have Slide statement our we

the actual beliefs During and not expectations. number the this statements. may plans, management forward-looking and These results differ in and uncertainties contemplated subject results risks from course of events that regards performance current cause our events statements factors call, statements are and future can guarantees to a by of make these are of and to materially other forward-looking and to

like certain refer to non-GAAP to financial management also remind will I'd measures. that you

filings filings Securities earnings Relations Please measures most website GAAP release and Exchange our information. Investor Commission. on and for company's reconciliations and with find You Securities of financial the comparable more Commission the our the can and Exchange with in its see the directly

question-and-answer a by followed to David. let it With be that, [Operator session. will remarks me hand Instructions] over Today's

David Wilson

Crosby of and business our with good get deal expect all let's for Kristine, But while highly compelling of scale a before company, Columbus excited stakeholders. quarter. Kito value delivering complementary enhances afternoon, our deliver to milestone McKinnon transformational details third combination that everyone. our the more the position bringing about deal, you, This the a together in We're and into for we Thank discuss share top-tier financial I performance. to market

team global the in delivered in industry to and of movements the second or adjusted quarter on exchange of quickly prior exchange foreign Our quarter EPS $XXX impact $X.XX favorable of adapted sales, foreign shifts in demand in in the million an the to year. compared the $X.XX unfavorable $X.XX including half

deteriorated While over market sentiment the demand environment remains the quarter, midterm positive.

As to related progressed, cautious hearing second, U.S. across saw the X the quarter tariffs, evolving a approach our took the in Europe, with in you Germany and demand subdued dynamics: industry. particularly decision-making; policy third France, consistent to we which customers first, environment, delayed encountered we what and particularly are

quarter. our the While over the the through these the and contemplate resolution for business results our revised of dynamics unchanged, fourth term near guidance remains quarter medium third long term optimism that and extend for the

and opportunities those infrastructure well attractive nearshoring, dynamics. capitalize as from see industry to like of labor on and continue we we We investments, megatrends scarcity benefit to positioned are

agility on business remain our effectively, our what can and control, managing we focused plan. we always, operating with strategic As executing

flexible to likely you opportunities. diligently to levels to are reflect advantage upside current managing costs be As expect, what we would remaining of demand take are while

plan, to executing advance continue XX/XX our initiatives. We our including simplification strategic

simplification of In our of the quarter, plan. footprint next we step the fact, announced execution this

the to week 'XX. of in operations fiscal conveyance Specifically, transitioning cease X smaller quarter we are consolidating at discontinued began into largest last and facility. U.S. our factories precision manufacturing the We precision locations conveyance expect first manufacturing

sales. would our XX% impacted explore a both the countries, than of with developments have we impact pass X% isn't with of to the through consistent a affect less to the increases to the of of these adjustments Mexico recent be Canada partners market, course, we Where XX% would and possible. sales. cost in matching the tariff another chain working of are and we footprint XX-month that China actions implemented, Like closely. monitoring impact And on input would If and to from supply were on our minimize the preserve extent margin. our X% trailing the environment, tariff to rest If possible, to tariffs retaliatory were a customers manufacturing strategic record and this respect there

environment demand linear saw the decision-making we motion X% a softness conveyance orders up prior the Precision XX%, in uncertainty earlier, delays short-cycle persisted. Project-related was strength and in year. grew from X% by referenced year-over-year flat remained choppy, been pressures, down precision where in offsetting and orders and has with orders As conveyance Europe. in decline driven by X% destocking

sentiment remains initiatives. commercial demand. customer experience of up levels. the customer but X%, driven remains to our activity and by again healthy, year backlog from driven increased Our quarter strength in Project-related lagging prior linear record down funnel in Quotation project speed by conveyance near was Backlog also modestly effectiveness is and reflecting order motion. precision conversion historic of and softer short-cycle improving the levels, healthy, the

financial who on I'll our provide that, results call outlook. over some the Greg, to will additional and turn color With

Gregory Rustowicz

driven and a by We delivered large in X% Good decrease in We down everyone. Thank delay by and economic a recognition montratec. sales. policy this the design to revenue down believe in softness largely from resulting final specifications driven Germany. Europe, third for demand receiving in was year, short-cycle order from particularly David. quarter you, U.S. of net by previously a won sales million, were delayed uncertainty Project-related X% related sales prior weak afternoon, $XXX.X X%

such and broadly. in new nearshoring decline the While megatrends about more shape, the policies certain as we term, short the as the and benefit we from expect U.S. over challenged take are interest we revenue be future to administration's in optimistic rates time automation

facility expense on higher $XX.X $X.X decreased by million year Monterrey, of and $X million product closure prior a a lap Our year-over-year adjustment due activity offset mix, was product the favorable lower partially favorable decline ramp-up impacted basis, the the of net GAAP remainder of of volume The which gross Mexico liability to the was pricing of and liability million for cost factory by expenses our and year. we versus sales in profit prior changes. manufacturing as

was the mix discussed to margin previously adjusted and favorable lower liability to expanded year-over-year a our basis XX.X%. XX XX gross an GAAP adjusted largely our product basis basis, basis, year due basis, margin gross On points adjustment XX.X% but a prior was On sequential contracted points gross on and accruals. volume, unfavorable margin

namely to lower $XX.X sales the by we expense This With our appropriately, $X.X actions million a SG&A assessment Mexico X duty a quarter, for to managed a volume management cost in in reserve and for filed $X.X large by Sweden million that driven by incentive-based back was spend that customer judgment $X.X unique XXXX customs legal million. lower and a in for compensation our bankruptcy. offset the debt items, decreasing goes partially bad million

the owed the to pursuing recovery unfolds. process bankruptcy as of We amounts us are

share adjusted generated we operating quarter was the $X.XX prior the and of earnings operating the quarter. result, and per a share a recorded in basis due $X.XX XX.X% the margin GAAP on FX income As operating on unfavorable in down compared to year. basis. million. an $XX.X including per We year, was $X.XX in Adjusted Adjusted prior of GAAP diluted income versus adjusted share $X.XX the to million of $XX.X diluted per income quarter

in to EPS product lower year-over-year The unfavorable the impacted EPS liability adjustment volumes. due addition, was adjusted to $X.XX. by In the reserves of sales shortfall negatively remainder

Our levels $XX.X of levels $XX.X the driven by as free elevated of EBITDA our to a cash million We timing recognition. flow footprint in the and versus margin due inventory over facilitate third quarter, the million as orders manufacturing unbilled year, decrease in consolidation adjusted well million large $X.X of prior costs XX.X%. million delivered stocking time adjusted EBITDA the quarter revenue of incurred the an to was with for of of $X higher

impacting consolidation the for reflecting XX-month a costs on was and pension of XXX%, quarter start-up fiscal other warehouse trailing impact GAAP items and Mexico paid the in the anticipate Free down we fourth flow quarter. the first sheet and of a $XX and basis From debt costs unique $XX cash 'XX in noncash X of quarters settlement, perspective, factory million conversion balance net paying million the income. Monterrey, down another

net Our covenant X.Xx ratio a basis, financial from leverage quarter. was up last Xx on

costs at million $XX For agreement, restructuring fiscal cash for can for we year. the be that excluded are company's capped credit

by leverage our been consolidation our allowable start-up Given factory credit have Monterrey, million. maximum exceeded and the net have $XX.X projects, the X.Xx. we magnitude would adjustment that cap, Without Mexico agreement of

of at updated our guidance, remain As cap, net 'XX. fiscal of a ratio Xx expect with end leverage approximately will this along result we our the

current Let we me our the for updated guidance in wrap challenging reflects with up macroeconomic term. which year short environment are the fiscal seeing 'XX,

Our the million for net end will $XX Xx, result assumes our for full mid-single-digit will between year sales 'XX teens EPS. fiscal CapEx decrease approximately a year-over-year, as previously to and at fiscal will new in which a discussed. in guidance decline 'XX leverage adjusted range $XX low million, ratio

guidance assumptions remain for other Our XXXX fiscal unchanged.

in Despite our our ability quarter, our health objectives. confident the the we and of long-term achieve to challenging remain business

the environment. managing macro our execution to demand near-term pressures and continue, we focused expect we remain While on in operational expenses current

discuss now the I news that, turn With over exciting on to this to acquisition. David will transformational it

David Wilson

Greg. Thanks,

into value agreement our we stakeholders. market on market combine we delivering a to for Kito deal. compelling and while performance. to top-tier Crosby scale deal what creation highly enhances position I'm McKinnon all thrilled our is with complementary share that will of acquisition have drive that our an Now expect This in to entered Columbus

in our consumables platform net to with with solutions; holistic creates by million exposure; the a resilience our increases hardware with the end top-tier of our $XX businesses $X by realizes the and and forma geographic portfolio material margin expanded with portfolio margin strong scale of handling EBITDA adjusted intelligent sales, profile and over performance cost approximately pro scaled expected year combination and synergies supported a of our billion of Our enhancing offering of stand-alone meaningful in motion XX%, X. complementary additions

consistently adjusted flow, over Our combination approximately On EBITDA create we've time, cash will transaction for run financial free the cash XX-month multiple reflecting And the trailing enable basis, will strong acquisitions. is just pro synergies. following flow flexibility Xx, the significant reinvest cost as which rate growth. prior that produces net following in expected also to forma reduction the done transaction, debt a

is this highly stakeholders Columbus combination that summary, positions for and In McKinnon future. a our growth strengthens the enables all well scale, for increases resiliency, core, compelling establishes

costs, to year on first and growth. the forma we share rate is expect to the transaction providing cash at in future flow company's adjusted flexibility deliver XXX% for integration net than a for expected for The run conversion, shareholders and free greater deleveraging, be value synergies. earnings Normalizing pro expected per accretive basis reinvestment

and long customer-first uptime forward have I Kito had portfolio safety, with offerings associates Through we a combination, I a strong strategic welcoming Crosby's for great look their this the team. talented Columbus are and Crosby's to shared creating respect on Kito McKinnon a company performance. to focused culture productivity, of team.

on a revenue with history, X attractive and at consumables and across brands a become over of Kito and geographies in complementary manufacturing margins, and has a markets a has Building X% last vertical lifting profile, Crosby a revenue set the has leader across financial countries. years. The CAGR and hardware grown globally over XXX-year company XX recognized footprint a including strong securement,

of multitude let While have about a X. me this there that team are the combination, top summarize benefits excited our

to meaningful combination of reach, only enables it proposition not while expands delivers the CMCO an and capabilities and for improvement reducing our customers. enhanced First, us relative in strengthen This broader enables portfolio costs scale. deliver to size our a the doubles value

with this average and our breadth strategic components handling one-stop low growing are growth shop not securement enables resilient the revenue for depth and and of of consumables applications safety paramount across core a Crosby's price where strengthening position our that a relied meaningful failure an more Kito The products products the nature lifting a delivers needs, sell consumables at in addition material that of all benefits core with securement all combination option. framework, increased selling source. mission-critical a an but and of in upon includes the is lifting, is

flexibility Kito a cash our free This a APAC And core replacement financial debt utilize Columbus attributes Crosby McKinnon's demand, provides of complementary regions. capacity even and our America effect where presence core the these opportunities into combination accelerate provides deepen in Similarly, to This the us combined growth. see Latin Columbus geographic deepen in strength in flywheel well our we through positioned. of to that stable expanding we we'll time. be footprint reinvest pathway our Middle to reach reimagine the greater Kito penetration East, flow, Crosby's and is Africa region Europe, given positioned growth given to McKinnon's as over to reduce better drive

our scale meaningful operational to benefits collective enables Significant excellence also commercial and capabilities.

years, to past standard X optimize our meaningfully System McKinnon technologies that the we've Over Business in defines and processes, procedures business. Columbus our invested

leverage commercial needs. portfolio, and the we our across will as effective the in forward, practices best to of we execute Going operational bringing support approaches most customers' bear

performance example, month. manufacturing Crosby's Yoshio tools, offer, privilege demonstrated Yamanashi, across global footprint. resources where By capabilities our a in For technologies of to we'll what team the Kito improve and customer diversified capacity spending of and I'm Japan invest time Columbus I both and with to combining Crosby have differentiate best lean to had have within excited and the leverage that his experience last a greater Kito McKinnon facility, the Kito

positions the tailwinds growth labor combination industrial to industry global nearshoring, benefit scarcity, Second, that us chain supported resilience, from supply megatrends, including are by

Gap] [Audio

infrastructure investment and sustainability.

is stabilizing and assistance U.S. chains gaps, manufacturing and adoption risk, logistics Europe, are supply accelerating in reducing and companies, efficiency. the logistics. in-region, for-region the many lifting across Workforce For enhancing of automation and particularly nearshoring

countries are energy-efficient infrastructure, are to demand. requiring across for It's smart sustainability and and portfolio serving and safer, increasing across offerings, broader and fulsome transportation, these rising Many opportunities a APAC. demand capitalize infrastructure. an stay logistics expected to with for people requirements of operations in for megatrends set and on of America goals and automation to Aging demand Europe our modernizing and we accelerate are facilities regulatory that will better combined suffering positioned are a investments meet And competitive from aging products geographies. continue great more EMEA these North

with a profile in is cash margin of attractive in results on EBITDA integration. costs adjusted a financial tripling a XX% basis. onetime of the combination profile this highly an than related a financial this to And of of Third, flow EBITDA excluding to and with doubling XXX%, top-tier more free expected revenue forma excess deliver pro adjusted

adjusted the will gross adjusted financial combined Day and this established our long-term of exceed Importantly, we margin performance EBITDA goals XXXX during Investor revenue, margin ahead for schedule.

longer-term time. immediately after the we opportunities customer be seamless integration financial our of over While improvements enhance relentlessly and are we on will identifying focused experience closing, businesses for that will performance

track combination third-party and run synergies. and cost rate and are this of profile significant integrations its deliver million power, a include to operational creation. attractive value deliver underpinned realization. structural by Columbus Fourth, that supply McKinnon optimization purchasing and duplicative operational financial cost successful of synergies strong efficiencies net chain and synergy At X, long-term efficiencies, record we annualized $XX These year expenses in synergies cost overlapping expenses. expect has enhanced

in phase year these in over being synergies a to with expect period achieved We the X. majority X-year

of standard enabler and focus the excellent best and disciplined, proven and operationally combined loyalty, work, with approach realization. and consistent framework. experience This accelerate integration improving a will synergy to its be and expected innovate customer leverage from continuously significant practices enable across is success organization customer-centric on CMBS market-led,

driving Crosby across will products. broadened through product expanded customers attracting Crosby's a CMCO's While growth the customer efforts not that upside model, Lat our complementary portfolio broader of also do through and with reach customers, footprint strong cross-selling where for capabilities leveraging existing our new customers and deal and some bridging synergy and for not simplification geographic included improve enhanced our see experience portfolio, meaningful footprint scale, with in model, footprint, opportunities that we overlap; CMCO to gaps opportunities specifically, revenue our Kito present combined Am APAC EMEA Kito product;

our fifth, year a to combination approximately capital after And near flow-generative deleverage flow structure completion closes. by basis. agreement to to the paydown, us be rapidly. our primary we facilitate debt credit the This deal, a net be Upon cash ratio in deal this results cash term. on our expect end focus to leverage the Xx that enables for and reduce allocation to of highly expect X.Xx levered business X significant the in we of Through will approximately designed debt

cash long reinvest strategy. motion the flywheel By of generation to in run, returns, intelligent even flow flexibility provide our with create we accelerate and strong the to the growth. our characteristics of reinvest Over the businesses financial in investing capacity in growth cash-on-cash strong execution more

investment their of CD&R and McKinnon delivering in improvement manufacturing leading deals. transaction, years nearly the management Columbus a industrials proven part XX operational and and private in companies. growth XX% and with with CD&R, of billion deep partnership capital As approximately of partnered history, brings $XX invested firm experience, under has

Columbus As will join expected the of a closing. result Directors McKinnon, Nate Andrew that it CD&R's company's and CD&R's investment Board Mike of is Sleeper Campelli in upon Lamach,

We execution the to financing structure its CD&R. plan committed for of financing, of financing delevering debt balance to fund prior a million including revolving of permanent company The preferred has quickly initial replace $XXX debt provides from investment of million The which we $X.X a this a strong convertible perpetual flexibility sheet from equity JPMorgan combination $XXX acquisition timely track acquisitions. and expect facility with through structure. transaction, following credit a billion of record

the our Directors, On our team behalf are to we teams and and McKinnon. Board entire Kito CD&R of welcome to management of Crosby thrilled Columbus

and addition future With never of CD&R's our exceptional been expertise Kito company. our excited strong more of have about world-class I already the business to the Crosby's team,

where end I me Let began.

and financial scale on significant over Columbus creates We that all Day expect a improved complementary enhances to targets enable future in This competitive position, our over shareholders and are our schedule generate flow and McKinnon our value results for our delivers creation ahead This platform combining for we growth deal long will deleverage value Investor highly profile, cash run. of compelling drive deal in Kito with of elevates acquisition Crosby and time. the creation value for significant an shareholders.

line now we'll questions. the Operator, for open

Operator

[Operator D.A. the Instructions] from question Your of Davidson. first line comes Matt Summerville from

Canyon Hayes

for up can guidance for to open top as cost Hayes the any to of You've the Maybe Matt got Canyon savings? any Summerville line far on synergies? prioritizations $XX we as just tonight. And quantitative in discussion, million kind think early

David Wilson

mentioned, remarks. $XX operational my there as and power items. This chain as far as duplicative those the categories of Yes. third-party roughly purchasing as and And David I efficiency-focused companies is And optimization concerned, prepared X do expenses I combining start is expenses. Wilson. enhancing and outlined We with overlapping just million in structural supply are we'll we scale are equal believe

the opportunities X And so characterize in synergy I primary buckets. would those

far And global number for the cross-selling then strengths line opportunities of we as that geographic synergy existing revenue a roof both are leveraging there that as synergies revenue the leveraging think of we've include provide now. coverage and that identified, I our enhancements, to into and getting customers, to businesses the a that for to we haven't we've existing upside our get are outlined. simpler see think into framework that would built and base But opportunities our others model customer as won't solution paths I here those

Canyon Hayes

Great.

about As the between kind of and longer-term of profile margin far are structural businesses, we assets? there think X should we any the differentials about as think the X --

David Wilson

serve wear-oriented use. as These it and has The a equipment applications. than limit and of manual these and are that to Kito safe highly wear that what tools, to lifting that we has hooks and requirements portion manual would includes for a to business shackles such securement call And consumables. Crosby be products critical items XX% is less larger portfolio lifting

option. is for performance and failure ASP average quite Security is an critical. $XXX and those not less products generally. so the is And low, And

that risks, the use that components metallurgy, in the that given generally is characteristics not could deem new you versus work where brittle well might decide exposures people item to extreme requirement and been is more when have and about as of the have other as so failure other or when that product to And an option. the a be criticality space wear item and used can doing exposed to which critical challenges, those temperatures, think potential the change or

with profile resilient the And have healthy a can business. really return time, in those over mind, that more a I so for products revenue and command, think,

Operator

line question the next your comes of Ferazani And from Sidoti. from Steve

Steve Ferazani

up I this combination interesting Greg, ask -- delevered you've But before outlining the seems is case, you some appreciate times. have successfully in to an combination. and affecting David, your levering least Xx. and to multiple like how global I of this have at up so of in what you're what you there do clearly obviously, much, thought came timing comfortable given up business to it? to that is you lever uncertainty doing Was the almost any short being and the around term levered

David Wilson

Yes.

to the we'll to to lot get the are be perspective, And in from able to get more businesses. the going flow that think are approvals. a of Steve, other and generation year, We going confidence be, it's really -- free of current down the and think free believe march think the the quarters, But in $XXX that's of to what is boils first I it we the flow grow. generate timing So cash policies combined close. we we're over confident we administration is through as we a a to going be one and need regulatory I fact have with and and people upcoming the that going year to of more going cash to half removed. million that uncertainty important -- We going also

actually we help forward, perspective. So would which expect the grow leverage going on to EBITDA will

we cost And spent at of and just synergies have to, the clearly to lot a synergies, of range a add outcomes. time the looking on

turn that once to the cash David comfortable between a his deliver roughly We And ability to going think in it's delever flow, free quickly. have said remarks, and as with our again, very we're upside cost And the to prepared we year. synergies. delever that on a potentially

Steve Ferazani

a give Obviously, those with where facilities general And their now, Okay. on My fairly follow-up facilities are? the facilities. tariffs is you local geographies? right Kito's us do serve overview high of just can everyone's location mind on of being

David Wilson

I a product for-region, U.S. Yes. in-region, with say, of They're the the that exception generally Japan lot into would supplies

see is that business, within that so risk implications. tariff their a low we as relatively And a but relative supply to dynamic chain

so business. a exposure moderate I And think that associated there's with

Operator

question line of from from next your Tanwanteng comes the And Securities. CJS Jon

Jonathan Tanwanteng

I strategy, higher-growth higher-margin mix or number do your the was I wondering and new efforts to your so simplification network current shift many Kito and how Number markets, portfolio? you fits your pause coming consolidation one. current and products readjust to into two, into with guess, have assets

David Wilson

Yes. I appreciate it. Thanks. And we do see historically. this outlined fitting well into the framework that we've

think as so core expansion investment core, core, if reimagining future the enable in ultimately And growth. framework in and debt that cash and reimagining the you enables growing about strengthening core, and categories our the superior this highlights the down with growing expanding the generation the squarely and we and growth pay fits strengthening

combine so tremendous And X to but our bring our to good customers. really opportunity this an think, shareholders, businesses to not was a and value, we only

can with that something profile fits that well within the margin talked about. ultimately as this financial we're profile see as forecasting, at scale. framework the will deliver you top-tier a we've see combination the very And we And that

some as so to accelerates that we saw as into of transformation integration business, over time. capital then those we that more that markets this in our in secular way to growth of a opportunity the stage And do really our deployment of get a accelerate, compelling this and

Gregory Rustowicz

your on this our question of was I footprint does second you going a impact part Yes. I to say consolidation. think had

part of strategy. really a our XX/XX that's So core

facilities about forward David our been benefit forward. new will as did, mentioned That as fourth facility in -- And going moving smaller have prepared with we've happening in $X know, the of Monterrey. his this X as quarter. in remarks, consolidate you That's going so to million quarter. be We

key that's So forward with move and a part of XX/XX, going existing to plans. continue to we think we're our

Jonathan Tanwanteng

Okay.

have uncertainty in if entering we've Second, the and a I -- on you Kito little full-blown and you the that flow, bit and that achievable the was numbers expound confidence tariffs you've could and the your cash Is a the of that just war. if synergy just trade have? possibility that you these wondering both exposures outlined given

David Wilson

do believe achievable. we Jon, Yes. that's that,

been to have I are. a conservative We range possibilities. And got reasonably the think relative of targets we've what

of and Kito tremendous work, arrive that we've that over like achievable to be good objectives advisers, a we've outlined. got those amount are leadership time of where set also Crosby a on internally the done have at vetted very those both a with frame We numbers with the we've and calibration that and feel should our

Gregory Rustowicz

Jon, just to yes. add -- on

Sorry, just to $XX Kito exposure Columbus add million that a less neighborhood in to scenario, in $XX of on, perspective tariffs. board, an worst-case so has at worst the from exposure. looking across McKinnon, probably XX% we're the for And Crosby million significantly than

So we're affect would -- to significant really it not be Yes, impact? going we still but think to leverage. an enough have

David Wilson

tariffs of price increases. Right. And in is to million just of impact $XX clarify, that to million $XX without the passing through terms

the if those making preserve avoid But pass weren't channel And a on impacts so and system. with working our effectively clearly, we've that sure to we those of they our customers. had avoidable, on be history in partners to we'd work margins

Operator

Research. Liptak comes the [Operator Instructions] Your Seaport Walt line next from of question from

Walter Liptak

get just Kito here metrics Crosby. for paying So Kito some the could price multiple What's I we you're that if on wonder Crosby?

David Wilson

post leverage. Yes. It's Xx synergy

Walter Liptak

pre-synergy? Okay. How about

David Wilson

over just it's XX. Pre-synergy,

Walter Liptak

sales And for what much other -- had, how Okay. they us margin then some much gross for might their with LTM, about Crosby, the how us you familiar like is, -- -- Kito [indiscernible]? where can us of tell not their who be

David Wilson

a They gross margin. billion have Sure. of have absolutely. deck, sales. Walt, Yes. the $X.X in have they and It's -- worth XX% They

Gregory Rustowicz

margin. EBITDA

David Wilson

about America. the in geographically pretty globe. Asia, XXs been company. they About channel Does then partners, over users And close the And situated around XXX,XXX-plus X% EBITDA X margin, margin, X,XXX is European to upon high how help? at you the XX%, gross is Sorry, by in end last XX% and is years, in XX-ish trained about margin They their CAGR. or depending business well North grown business They America. X% gross they're calculate of have the have XX% it. that diverse, have Latin have that

Walter Liptak

Great. that Okay. Yes, does.

North that's America, presumably And so is that... U.S. actually, the that -- that's But XX% you're saying mostly

David Wilson

as is included well. and number. America And America Canada North that well, in Canada -- Latin

Walter Liptak

from how into much is And Okay. U.S. tariffs? that impacted might the U.S. be coming outside by the

David Wilson

kind Yes. import amount significant Japan. It's or from from modest. The product of of locations transferred is amount most coming overseas in

Walter Liptak

Okay.

you those now? that since And to we really If in tariffs, talked is I call, And time factory discussions your Mexico, there X today, What be tariffs. you All conference that consolidating? are guys U.S. second are the place about thinking that pre down Okay. at want quarter both mentioned then last right. was the are Mexico? guess, we factories the Mexico the going to from consolidation

Gregory Rustowicz

Yes.

again, product the a on There factory. it or impact consolidated, into of Mexico fully substantial moving would could to U.S. the of Mexico, be once But sense part it's we're And the some into one, I if and vice is it savings think after we're facility another very evaluated when moving on related to terms from because it's others question it. first Mexico the -- and tariffs our be -- versa, we Mexico lines some. at so do looking it second combination. in there So would makes any remember, savings

to move sense still forward plans. it makes with So our

Operator

of last Jon question line from And Securities. CJS comes Tanwanteng your the from

Jonathan Tanwanteng

you've wondering just once you I expense financing. expectation completed blended give if or interest rate a the could was

Gregory Rustowicz

Yes.

it right will But be to rate. market So below be X%. expecting it we're a now,

Jonathan Tanwanteng

And you're be. the you anything to anticipating -- I what and is Okay. greatest like that, mean, any one regulatory wondering Great. this larger if think your more of one or closing, And I'm question, just might antitrust competitors. risk issues

David Wilson

Right. Right.

a we assessed worked we've risk, going should have So to a our we're here. advisers process like assess and for we And filing be closely this. it's understand and to as risk with this low that obviously

And feedback on process, we'll hoist forward then power with to look we're proceed would be within within and overlap in product and there. category. days proceed going the and results to from most so filing our that XX significant the categories chain The

working we forward. closely assess And so with teams we'll that our be go as to

Operator

now back questions remarks. David hand further at no call will this are There for the time. closing Wilson Mr. to any I

David Wilson

milestone to And today in Ana. thank celebrate everyone we history. our Thanks, joining Perfect. you us as this for

we creation Columbus this value me Let complementary through combination McKinnon. will Kito the compelling deliver of reiterate Crosby that and

future. and scaled positioned business the significantly our have our business We for

call Kristy today, after always, and again evening. have great if available will a for As any questions. attention Thanks have your you be the

Operator

And today's you. concludes call. Thank you Thank participating. this for

all may disconnect. You

Columbus McKinnon (CMCO) 10 Feb 252025 Q3 Earnings call transcript