Columbus McKinnon (CMCO) Stock Forecast & Price Target

Columbus McKinnon is supported by a stronger order and backlog profile, with F4Q26 orders of $443M, a 1.01x book-to-bill, and backlog of $520M, up 61% Y/Y, which suggests solid demand visibility despite near-term macro and geopolitical headwinds. Its positive outlook is reinforced by encouraging FY26 legacy order growth in automation and lifting, robust U.S. quotation activity through the first 2 months of FY27, and a healthy pipeline even as Europe and the Middle East face delayed project decisions. Although adjusted gross margin contracted 250bp Y/Y to 32.7%, management still expects adj. EBITDA of $390M-$410M, indicating operating resilience and meaningful earnings power from the Kito Crosby acquisition and core business mix.

Columbus McKinnon is viewed negatively because its aggressive acquisition of Kito Crosby has more than doubled the company’s size while lifting covenant net leverage to 5.1x, or 6.1x without yet-realized synergies, leaving balance sheet risk elevated. Operationally, the business remains short-cycle and exposed to COVID-19 disruptions, FX pressure on roughly 40% of non-U.S. sales, partially hedged variable-rate debt, and competition from lower-cost Asian crane and hoist makers, all of which limit earnings visibility and margin resilience. Although F4Q26 revenue rose 3% organically to $438M and adjusted EBITDA was $69M, adjusted EPS fell to $0.24 versus $0.60 in F4Q25 and FY27 EPS guidance of $1.70-$1.90 implies only modest profitability after heavy interest and amortization costs.