Columbus McKinnon Posts Record-Breaking $1B in Net Sales

Columbus McKinnon Corporation (NASDAQ: CMCO) has reported record-breaking financial results for its fiscal year 2024, ending on March 31, 2024. The company achieved several significant milestones, including a record net sales of $1.0 billion, representing an 8% increase compared to the prior year period.

In addition to the surge in net sales, Columbus McKinnon also saw a notable improvement in its gross margin, which rose by 50 basis points to 37.0%. The adjusted gross margin climbed even higher, increasing by 80 basis points to 37.3%.

The company's net income for fiscal 2024 stood at $46.6 million, translating to a net margin of 4.6%. Adjusted EBITDA grew by 13% to $166.7 million, with the adjusted EBITDA margin expanding by 60 basis points to 16.4%.

Furthermore, Columbus McKinnon demonstrated its financial prowess by generating net cash provided by operating activities of $67.2 million and free cash flow of $42.4 million, achieving a free cash flow conversion of 91%.

The company also made significant progress in reducing its net leverage ratio, which decreased to 2.4x. Looking ahead, Columbus McKinnon aims to achieve a net leverage ratio of approximately 2.0x by the end of fiscal 2025.

In the fourth quarter of fiscal 2024, Columbus McKinnon's net sales hit $265.5 million, marking a 5% increase compared to the prior year period. The company reported growth across all geographies, with precision conveyance sales surging by 23% and overall orders increasing by 5%.

Columbus McKinnon's president and chief executive officer, David J. Wilson, expressed satisfaction with the company's performance, emphasizing the team's dedication to achieving long-term financial objectives. He highlighted the company's focus on executing commercial and operational initiatives to enhance productivity, reduce lead times, and elevate the customer experience.

Looking forward, the company has issued guidance for the first quarter of fiscal 2025, anticipating low-single digit growth in net sales and flat to slightly down adjusted EPS year-over-year. For the full fiscal year 2025, Columbus McKinnon expects low-single digit growth in net sales and mid to high-single digit growth in adjusted EPS year-over-year, with capital expenditures projected to be in the range of $20 million to $30 million.

Columbus McKinnon will be hosting a conference call to discuss its financial results and strategy, providing an opportunity for stakeholders to gain further insights into the company's performance and future outlook. Today the company's shares have moved -7.5% to a price of $40.63. For the full picture, make sure to review Columbus McKinnon's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.