What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-05-28 compared with 2024-05-29 · 334 added, 332 removed, 1552 unchanged (30% of the section changed)

49 unchanged sentences

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

The critical audit matters communicated below are matters is a matter arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

The communication of the critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Valuation of Goodwill for the Precision Conveyance Reporting Unit

Description of the Matter At March 31, 2024, the Company’s goodwill was $710.3 million.

The goodwill associated with the Precision Conveyance reporting unit amounted to $395.9 million as of March 31, 2024.

As discussed in Notes 2 and 9 of the consolidated financial statements, goodwill is quantitatively tested, for impairment at least annually, or more frequently if circumstances warrant, at the reporting unit level.

In its quantitative test, the Company applied a discounted cash flow method to estimate the fair value of its reporting unit which incorporated various assumptions, the most significant being projected revenue growth rates, EBITDA margins, and the discount rate.

Description of the Matter At March 31, 2025, the Company’s goodwill was $710.8 million, of which $396.0 million related to the Precision Conveyance reporting unit.

As discussed in Notes 2 and 9 of the consolidated financial statements, goodwill is tested for impairment at least annually, or more frequently if circumstances warrant, at the reporting unit level.

The Company performed its annual goodwill impairment test over the Precision Conveyance reporting unit in the fourth quarter of 2025 using a discounted cash flow model.

Auditing management’s annual goodwill impairment assessment was complex and highly judgmental due to the significant estimation required to determine the fair value of the Precision Conveyance reporting unit.

The fair value estimate for the Precision Conveyance reporting unit was sensitive to significant assumptions inherent in the Company’s discounted estimated future cash flows, in particular changes in the projected revenue growth rates, EBITDA margins, and the discount rate, which are affected by expectations about future market or economic conditions.

The fair value estimate for the Precision Conveyance reporting unit was sensitive to significant assumptions inherent in the Company’s discounted estimated future cash flows, in particular changes in the revenue growth rates, EBITDA margins, the terminal growth rate, and the discount rate, which are affected by expectations about future market or economic conditions.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s goodwill impairment review process, including controls over management’s review of the significant assumptions described above.

To test the estimated fair value of the Company’s Precision Conveyance reporting unit, we performed audit procedures with the assistance of our valuation professionals that included, among others, assessing the methodology used and testing the significant assumptions discussed above and the underlying data used in the impairment analysis.

We compared the significant assumptions used by management to current industry and economic trends and evaluated the effects of expanding into new markets and other factors on the significant assumptions.

We assessed the historical accuracy of management’s revenue forecasts and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting unit that would result from changes in the assumptions.

Product Liabilities and Related Legal Costs

Description of the Matter At March 31, 2024, the Company’s liability for asbestos-related product liability claims and related legal costs was $14.2 million.

As discussed in Note 16 to the consolidated financial statements, the Company is involved in asbestos-related litigation the cost of which is paid through a wholly-owned captive insurance company.

Auditing management's estimate of its reserves for asbestos-related product liabilities is complex and highly judgmental due to the significant estimation and judgment required in determining the ultimate outcomes of the cases asserted against the Company and in determining the ultimate costs for the Company to defend against such claims.

In particular, the estimated asbestos-related product liability reserve is sensitive to significant assumptions such as case dismissal rates, the number of years case activity might continue, legal and other costs to defend claims.

The cost to defend claims takes into consideration the extent to which insurance carriers, under pre-existing insurance policies and pursuant to a legal settlement, are covering future indemnity payments and sharing in payment of future legal defense costs.

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s asbestos-related product liability estimation process.

Our procedures included, among others, testing management’s review of significant assumptions used for purposes of calculating the estimated liability.

To test the estimated liability for asbestos-related product liability claims, we performed audit procedures that included, among others, testing the completeness and accuracy of the asbestos-related claims data underlying the estimated liability.

We compared forecasts of legal defense costs and dismissal ratios utilized by management in prior year reserve estimates to actual defense costs incurred and the actual ratios of asbestos claims asserted to claims dismissed.

We inspected analyses prepared by the Company to support the current forecasts of defense costs and dismissal ratios.

We inspected correspondence from the Company’s internal counsel as to the number and status of outstanding claims asserted and correspondence from external counsel to corroborate the information provided by management.

We involved a specialist to assist with our procedures and to develop an independent range of asbestos-related product liability reserves, which we compared to the Company’s recorded amount.

We compared the significant assumptions used by management to current industry and economic trends and evaluated the effects of changes to the Company’s customer base or product mix resulting from expanding into new markets and other factors on the significant assumptions.

We assessed the historical accuracy of management’s revenue growth and EBITDA margin forecast and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting unit that would result from changes in the assumptions.

We utilized internal valuation specialists to assist us in evaluating the Company’s valuation model and related significant assumptions.

We also evaluated the related goodwill disclosures included in Notes 2 and 9 to the consolidated financial statements.

/s/ Ernst & Young LLP

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Interest and debt expense 32,426 37,957 27,942

Cost of debt refinancing — — 14,803

Investment (income) loss, net ( 1,302 ) ( 1,759 ) ( 315 )

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Income before income tax expense ( 5,505 ) 61,527 74,475

Income tax expense 14,902 26,046 8,786

Net income $ 46,625 $ 48,429 $ 29,660

Income tax (benefit) expense ( 367 ) 14,902 26,046

Net income (loss) $ ( 5,138 ) $ 46,625 $ 48,429

Average basic shares outstanding 28,738 28,728 28,600

Average diluted shares outstanding 28,738 29,026 28,818

Basic income per share $ 1.62 $ 1.69 $ 1.06

Diluted income per share $ 1.61 $ 1.68 $ 1.04

Basic income (loss) per share $ ( 0.18 ) $ 1.62 $ 1.69

Diluted income (loss) per share $ ( 0.18 ) $ 1.61 $ 1.68

Dividends declared per common share $ 0.28 $ 0.28 $ 0.28

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(In thousands)

Net income $ 46,625 $ 48,429 $ 29,660

Net income (loss) $ ( 5,138 ) $ 46,625 $ 48,429

Other comprehensive income (loss), net of tax:

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— — — — 8,243 8,243

Issuance of 4,312,500 shares of common stock in May 2021 offering at $ 48.00 per share, net of issuance costs of $ 8,340

43 — 198,662 — — 198,705

Stock compensation - directors — — 1,194 — — 1,194

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Stock compensation expense — — 9,231 — — 9,231

Treasury stock purchased, 31,085 shares

— ( 1,001 ) — — — ( 1,001 )

Restricted stock units released, 93,315 shares, net of shares withheld for minimum statutory tax obligation

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Stock compensation expense — — 10,865 — — 10,865

Treasury stock purchased, 31,085 shares

— ( 1,001 ) — — — ( 1,001 )

Restricted stock units released, 125,329 shares, net of shares withheld for minimum statutory tax obligation

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Balance, March 31, 2024 $ 288 $ ( 1,001 ) $ 527,125 $ 395,328 $ ( 39,677 ) $ 882,063

Net income 2024

Net loss 2025

— — — ( 5,138 ) — ( 5,138 )

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Stock compensation expense — — 5,199 — — 5,199

Treasury stock purchased, ( 292,650 ) shares

( 1 ) ( 9,999 ) — — — ( 10,000 )

Restricted stock units released, 99,181 shares, net of shares withheld for minimum statutory tax obligation

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(In thousands)

Net income $ 46,625 $ 48,429 $ 29,660

Net income (loss) $ ( 5,138 ) $ 46,625 $ 48,429

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

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Loss (gain) on hedging instruments ( 382 ) ( 1,366 ) ( 438 )

Cost of debt refinancing — — 14,803

Cost of debt repricing — 958 —

Loss on retirement of fixed asset — 175 —

Impairment of operating lease 3,911 — —

Loss on disposals and impairments of fixed assets 2,533 — 175

Non-cash pension settlement expense (See Note 13) 23,634 4,984 —

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Proceeds from sale of building, net of transaction costs — — 373

Proceeds from insurance reimbursement — — 482

Dividend received from equity method investment — 144 313

Proceeds from sale of fixed assets 139 — —

Purchase of businesses, net of cash acquired (See Note 3) — ( 108,145 ) ( 1,616 )

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Repayment of debt ( 60,670 ) ( 60,604 ) ( 40,550 )

Payment to former owners of montratec (see Note 3) ( 6,711 ) — —

Fees paid for borrowing on long-term debt — ( 2,859 ) —

Proceeds from issuance of long-term debt — 120,000 —

Proceeds from equity offering — — 207,000

Fees related to debt and equity offering — — ( 26,184 )

Cash inflows from hedging activities 23,608 24,057 24,495

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Concentrations of Labor

Approximately 6 % of the Company’s employees are represented by two separate U.S.

collective bargaining agreements which expire in September 2024 and May 2027.

Approximately 3.7 % of the Company’s employees are represented by one U.S.

collective bargaining agreement which expire in May 2027.

We also have various labor agreements with our non-U.S.

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dollars at average exchange rates during the year.

All assets and liabilities are translated to

All assets and liabilities are translated to U.S.

dollars at the year-end exchange rate.

Gains or losses on translations are recorded in accumulated other comprehensive loss

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

dollars at the year-end exchange rate.

Gains or losses on translations are recorded in accumulated other comprehensive loss in the shareholders’ equity section of the balance sheet.

in the shareholders’ equity section of the balance sheet.

The functional currency is the foreign currency in which the foreign subsidiaries conduct their business.

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If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value or if economic or other business factors indicate that the fair value of our reporting units may have declined since our last quantitative test, the Company performs a quantitative test.

In order to perform the quantitative impairment tests for the Rest of Products, Precision Conveyance and Linear Motion Products reporting units, the Company uses the discounted cash flow method to estimate fair value.

The discounted cash flow method incorporates various assumptions, the most significant being projected revenue growth rates, EBITDA margins and cash flows, the terminal growth rate, and the weighted-average cost of capital.

In order to perform the quantitative impairment tests, the Company uses the discounted cash flow method to estimate fair value.

The Company projects discounted cash flows based on each reporting unit's current business, expected developments, and operational strategies over a five to seven-year period.

In estimating the terminal growth rates, the Company considers its historical and projected results, as well as the economic environment in which its reporting units operate.

The weighted-average cost of capital utilized for each reporting unit reflect the Company's assumptions of marketplace participants' cost of capital and risk assumptions, both specific to the reporting unit and overall in the economy.

The discount rate utilized for each reporting unit reflect the Company's assumptions of marketplace participants' cost of capital and risk assumptions, both specific to the reporting unit and overall in the economy.

The Company performed its qualitative assessment as of February 28, 2025 for all three reporting units and determined that a quantitative goodwill impairment test was required for the Precision Conveyance reporting unit.

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Accordingly, facts and circumstances will influence how asset groups are determined for impairment testing.

In assessing long-lived assets for impairment, management considered the Company’s product line

In assessing long-lived assets for impairment, management considered the Company’s product line portfolio, customers and related commercial agreements, labor agreements and other factors in grouping assets and liabilities at the lowest level for which identifiable cash flows are independent.

The Company considers projected future undiscounted cash

COLUMBUS McKINNON CORPORATION

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portfolio, customers and related commercial agreements, labor agreements and other factors in grouping assets and liabilities at the lowest level for which identifiable cash flows are independent.

The Company considers projected future undiscounted cash flows, trends and other factors in its assessment of whether impairment conditions exist.

flows, trends and other factors in its assessment of whether impairment conditions exist.

While the Company believes that its estimates of future cash flows are reasonable, different assumptions regarding such factors as future production volumes, customer pricing, economics, and productivity and cost initiatives, could significantly affect its estimates.

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All leases are reviewed for operating or finance classification at their inception.

As described in Note 18, the Company records leases in accordance with ASC 842, "Leases," effective April 1, 2019 whereas leases with terms greater than twelve months are recorded on the balance sheet as a right-of-use ("ROU") asset and corresponding lease liability.

The Company records leases in accordance with ASC 842, "Leases," effective April 1, 2019 whereas leases with terms greater than twelve months are recorded on the balance sheet as a right-of-use ("ROU") asset and corresponding lease liability.

Refer to Note 18 for further details.

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Acquisitions & Disposals

On May 31, 2023, the Company completed its acquisition of montratec GmbH ("montratec") for $ 115,721,000 , including $ 7,576,000 in cash acquired, a $ 540,000 working capital settlement, and a contingent payment that becomes payable if a certain EBITDA level for the twelve-month period ended December 31, 2023 is achieved as set forth in the purchase agreement for montratec.

As of March 31, 2024, the company determined the contingent liability to be $ 6,680,000 , a decrease of $ 11,675,000 from the prior quarter as the amount expected to be paid in fiscal 2025 has been finalized with the prior owners.

This liability has been established in the opening balance sheet for montratec.

On May 31, 2023, the Company completed its acquisition of montratec GmbH ("montratec") for $ 115,721,000 , including $ 7,576,000 in cash acquired, a $ 540,000 working capital settlement, and a contingent payment of $ 6,680,000 that was earned based on montratec achieving a certain EBITDA level for the twelve-month period ended December 31, 2023.

During the twelve months ended March 31, 2025, the Company paid the contingent payment of $ 6,711,000 to montratec's prior owners.

The difference between the originally recorded liability of $ 6,680,000 and the amount paid is the result of a change in the foreign currency rate at the time of payment as compared to the opening balance sheet rate.

The Company initially financed the acquisition by borrowing $ 117,000,000 on its Amended and Restated Revolving Credit Facility, but later repaid the amount borrowed on the Amended and Restated Revolving Credit Facility by borrowing an additional $ 120,000,000 .

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As the Company determined that the acquisition is not material to its existing operations, certain disclosures, including pro forma financial information, have not been included.

montratec results have been included in the Company's results of operations from the acquisition date and the Company incurred and $ 3,211,000 of acquisition and deal related costs classified as part of General and administrative expenses in the year ended March 31, 2024.

The purchase price has been preliminarily allocated to the assets acquired and liabilities assumed as of the date of acquisition.

The excess consideration of $ 66,566,000 has been recorded as goodwill, a decrease of $ 12,377,000 from the amount preliminarily allocated to goodwill as of December 31, 2023 due to a decrease of $ 11,675,000 for the contingent liability described above.

Other assets as well as Other current and non current liabilities increased as lease adjustments were finalized for $ 1,535,000 .

Additionally, other current and non current liabilities changed $ 702,000 related to a refinement in the

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

calculation of deferred taxes.

montratec results have been included in the Company's results of operations from the acquisition date and the Company incurred $ 3,211,000 of acquisition and deal related costs classified as part of General and administrative expenses in the year ended March 31, 2024.

The purchase price has been allocated to the assets acquired and liabilities assumed as of the date of acquisition.

The excess consideration of $ 66,566,000 has been recorded as goodwill.

The identifiable intangible assets acquired include customer relationships valued at $ 33,470,000 , a trade name valued at $ 2,915,000 , and technology valued at $ 16,196,000 .

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Of the $ 66,566,000 goodwill recorded from the acquisition, $ 7,531,000 is deductible for tax purposes.

The preliminary assignment of purchase consideration to the assets acquired and liabilities assumed is as follows (in thousands):

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

The assignment of purchase consideration to the assets acquired and liabilities assumed is as follows (in thousands):

Working capital 4,523

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Total $ 115,721

In February of fiscal 2025, the Company announced it entered into a definitive purchase agreement under which the Company will acquire Kito Crosby Limited (“Kito”) from global investment firm KKR in an all-cash transaction valued at $ 2,700,000,000 subject to customary post-closing purchase price adjustments and regulatory approval.

Kito is a global leader in lifting solutions with multiple manufacturing assembly plants and nearly 4,000 employees serving over 50 countries.

In 2024, Kito generated approximately $ 1,100,000,000 in revenue through its global channel partner network.

Together the combined company will be a leader in material handling solutions with greater scale and a strong presence in attractive verticals and target geographies, delivering innovation and products to customers.

The Company incurred $ 10,310,000 of acquisition and deal related costs classified as part of General and administrative expenses in the fiscal year ended March 31, 2025.

Columbus McKinnon intends to fund the acquisition through a combination of committed debt financing of $ 3,050,000,000 from J.P.

Morgan Securities, LLC including a $ 500,000,000 revolving credit facility and $ 800,000,000 of perpetual convertible preferred equity investment from Clayton, Dubliner & Rice (“CD&R”).

Terms of the CD&R investment include a 7 % coupon, payable in cash or payment-in-kind at Columbus McKinnon’s option, and a conversion price of $ 37.68 , resulting in CD&R as-converted ownership of approximately 43 % of the Company following completion of the transaction.

CD&R has agreed to a customary lock-up on its shares.

The Company expects the Kito Acquisition to close in fiscal 2026.

On July 31, 2024, the Company announced that it would relocate its North American linear motion operations from Charlotte, North Carolina ("Charlotte Manufacturing Operations") to its manufacturing facility in Monterrey, Mexico.

The Company recorded $ 3,567,000 in fixed asset impairment costs and inventory obsolescence, $ 3,268,000 in Right of Use lease asset impairment costs and $ 1,093,000 in employee related severance and retention costs during the twelve months ended March 31, 2025, in the Condensed Consolidated Statements of Operations.

In total, $ 7,855,000 of these costs were included in Cost of products sold, $ 22,000 were included in Selling expenses, and $ 51,000 were included in General and administrative expenses.

During the fourth quarter of fiscal 2025, the Company announced that it would be relocating one of its Precision Conveyance factories in the U.S.

into its manufacturing facility in Hartland, Wisconsin.

Further, the Company will also be consolidating its Latin American Precision Conveyance Business into its manufacturing facilities in both Hartland, Wisconsin and Monterrey, Mexico.

The Company recorded $ 2,115,000 in fixed asset impairment costs and inventory obsolescence, $ 643,000 in Right of Use lease asset impairment costs, $ 1,069,000 in employee related severance and retention costs, and $ 544,000 for a reserve on other current assets during the twelve months ended March 31, 2025, in the Condensed Consolidated Statements of Operations.

In total, $ 3,534,000 of these costs were included in Cost of products sold, $ 213,000 were included in Selling expenses, and $ 624,000 were included in General and administrative expenses.

Revenue & Receivables

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To achieve this core principle, the Company applies the following five steps:

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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1) Identifying contracts with customers

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Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.

Any estimates, including the effect of the constraint on variable

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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consideration, are evaluated at each reporting period for any changes.

Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period for any changes.

In applying this guidance, the Company also considers whether any significant financing components exist.

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The Company has contracts with customers for standard products and custom engineered products and determines when and how to recognize revenue for each performance obligation based on the nature and type of contract following the five steps above.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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Revenue from contracts with customers for standard products is recognized when legal title and significant risk and rewards has transferred to the customer, which is generally at the time of shipment.

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The promised services (such as inspection, commissioning, and installation) are essential in order for the delivered product to operate as intended on the customer’s site and the services are therefore highly interrelated with product functionality.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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For most custom engineered products contracts, the Company determined that while there is no alternative use for the custom engineered products, the Company does not have an enforceable right to payment (which must include a reasonable profit margin) for performance completed to date in order to meet the over time revenue recognition criteria.

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Other performance obligations included in a contract (such as drawings, owner’s manuals, and training services) are immaterial in the context of the contract and are not recognized as a separate performance obligation.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Reconciliation of contract balances

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Contract assets are included in Prepaid expenses and other assets on the Consolidated Balance Sheets.

The increase in the contract asset balance in fiscal 2025 relates to new precision conveyance and engineered product projects that are recognized on an over time basis.

Remaining Performance Obligations

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We expect to recognize approximately 43 % of these sales over the next twelve months .

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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Disaggregated revenue

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Total $ 963,027 $ 1,013,540 $ 936,240

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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Industrial products include:

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Due to the short-term nature of such accounts receivable, the estimated amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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The following table illustrates the balance and related activity for the allowance for doubtful accounts that is deducted from accounts receivable to present the net amount expected to be collected in the year ending March 31, 2025 and March 31, 2024 (in thousands):

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Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company.

Unobservable inputs are inputs that reflect the Company's assumptions about the valuation techniques that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

Unobservable inputs are inputs that reflect the Company's assumptions about the valuation techniques that market participants would use in pricing the asset or liability developed based on the best

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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information available in the circumstances.

The hierarchy is separated into three levels based on the reliability of inputs as follows:

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Therefore, even when market assumptions are not readily available, assumptions are required to reflect those that market participants would use in pricing the asset or liability at the measurement date.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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The Company primarily uses readily observable market data in conjunction with internally developed discounted cash flow valuation models when valuing its derivative portfolio and, consequently, the fair value of the Company’s derivatives is based on Level 2 inputs.

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The Company uses quoted prices in an inactive market when valuing its Term Loan and, consequently, the fair value is based on Level 2 inputs.

The Company's terminated pension assets consist of money market funds, domestic corporate bonds, securities issued by the U.S.

government, and other similar fixed income investments with quoted market prices.

Consequently, the fair value of the terminated pension assets is based on Level 1 inputs.

Refer to Note 13 for additional information regarding the Company's terminated pension plan.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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The following table provides information regarding financial assets and liabilities measured or disclosed at fair value on a recurring basis:

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Annuity contract 1,235 — 1,235 —

Terminated pension plan assets 6,342 6,342

Derivative assets (liabilities):

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Term loan $ ( 479,351 ) $ — $ ( 479,351 ) $ —

AR Securitization facility $ ( 45,000 ) $ — $ ( 45,000 ) $ —

The Company did not have any non-financial assets and liabilities that are recognized at fair value on a recurring basis.

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accounts receivable balances (the "AR Securitization Facility").

The AR Securitization Facility has been recorded at its carrying value of $ 25,000,000 at March 31, 2025, which approximates fair value.

Refer to Note 12 for additional information regarding the Company's long-term debt.

COLUMBUS McKINNON CORPORATION

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Securitization Facility has been recorded at carrying value which approximates fair value.

Refer to Note 12 for additional information regarding the Company's long-term debt.

Market gains, interest, and dividend income on marketable securities are recorded in investment (income) loss.

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Interest and dividend income on marketable securities are measured based upon amounts earned on their respective declaration dates.

Fiscal 2024 Non-Recurring Measurements

As described in Note 9, the fair value of the net assets of the Company’s Precision Conveyor reporting unit was calculated on a non-recurring basis in Fiscal 2024.

Non-Recurring Measurements

As described in Note 9, the fair value of the net assets of the Company’s Precision Conveyor reporting unit was calculated on a on-recurring basis in both fiscal 2024 and 2025.

These measurements have been used to test goodwill for impairment on an annual basis under the provisions of ASC Topic 350-20-35-1 “Intangibles, Goodwill and Other – Goodwill Subsequent Measurement.”

The Fiscal 2024 goodwill impairment test consisted of determining the fair value of the Precision Conveyor reporting unit on a quantitative basis.

The fiscal 2025 and 2024 goodwill impairment tests consisted of determining the fair value of the Precision Conveyor reporting unit on a quantitative basis.

The fair value for the Company’s reporting units cannot be determined using readily available quoted Level 1 inputs or Level 2 inputs that are observable in active markets.

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To estimate the fair value of the Precision Conveyor reporting unit, the Company used significant estimates and judgmental factors.

The key estimates and factors used in the discounted cash flow valuation include revenue growth rates, EBITDA margins and cash flows based on internal forecasts and the weighted-average cost of capital used to discount future cash flows.

The estimates used are disclosed below:

Precision Conveyor Reporting Unit

The key estimates and factors used in the discounted cash flow valuation include revenue growth rates, EBITDA margins, terminal growth rates, and cash flows based on internal forecasts and the discount rate used to discount future cash flows.

The estimates used are disclosed below for both the fiscal 2025 and 2024 tests:

Compound annual growth rate 9.7 % 13.0 %

Terminal value growth rate 3.5 % 3.0 %

Weighted-average cost of capital 13.2 %

Discount rate 12.0 % 13.2 %

In addition to the Company's quantitative goodwill test, assets and liabilities were preliminarily recorded at fair value on a non-recurring basis in fiscal 2024 in connection with the acquisition of montratec described in Note 3.

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Significant valuation inputs included an attrition rate of 10.0 % for customer relationships, an estimated royalty rate of 5.0 % for technology, a royalty rate of 1.0 % for trademark and trade names, and a weighted average cost of capital of 12.5 %.

Fiscal 2023 Non-Recurring Measurements

The fair value of the net assets of the Company’s Rest of Products, Precision Conveyor and Linear Motion Products reporting units were calculated on a non-recurring basis in Fiscal 2023.

The Fiscal 2023 goodwill impairment test consisted of determining the fair values of the Rest of Products, Precision Conveyor and Linear Motion Products reporting units on a quantitative basis.

The fair value for the Company’s reporting units cannot be determined using readily available quoted Level 1 inputs or Level 2 inputs that are observable in active markets.

Therefore, the Company used a weighted discounted cash flow and market-based valuation model to estimate the fair value using Level 3 inputs.

To estimate the fair values of the Rest of Products, Precision Conveyor and Linear Motion Products reporting units, the Company used significant estimates and judgmental factors.

The key estimates and factors used in the discounted cash flow

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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valuation include revenue growth rates and profit margins based on internal forecasts and the weighted-average cost of capital used to discount future cash flows.

The estimates used are disclosed below:

Rest of Products Reporting Unit Precision Conveyor Reporting Unit Linear Motion Reporting Unit

Compound annual growth rate 6.7 % 9.8 % 9.1 %

Terminal value growth rate 3.0 % 3.0 % 3.5 %

Weighted-average cost of capital 11.8 % 13.2 % 10.4 %

Inventories consisted of the following:

At cost—FIFO basis:

At lower of cost or net realizable value — FIFO basis:

Raw materials $ 163,053 $ 151,031

4 unchanged sentences

Net inventories $ 198,598 $ 186,091

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

There were LIFO liquidations resulting in $ 37,000 and $ 181,000 of additional income in fiscal 2025 and 2024, respectively.

3 unchanged sentences

The Company's marketable securities are recorded at their fair value, with unrealized changes in market value realized within Investment (income) loss, net on the Consolidated Statements of Operations.

The impact on earnings for unrealized gains and losses was a gain of $ 317,000 , and losses of $ 296,000 and $ 370,000 in fiscal years 2024, 2023, and 2022, respectively.

The impact on earnings for unrealized gains and losses was a loss of $ 228,000 , a gain of $ 317,000 , and loss of $ 296,000 in fiscal years 2025, 2024, and 2023, respectively.

Consistent with prior periods, the estimated fair value is based on quoted prices at the balance sheet dates.

4 unchanged sentences

The marketable securities are not available for general working capital purposes.

Net realized gains related to sales of marketable securities were $ 212,000 in fiscal 2024 and were not material in fiscal 2023 and 2022, respectively, and are included in Investment (income) loss in the Consolidated Statements of Operations.

Net realized gains related to sales of marketable securities were $ 275,000 in fiscal 2025, $ 212,000 in fiscal 2024, and were not material in fiscal 2023, and are included in Investment (income) loss in the Consolidated Statements of Operations.

The Company owns a 49 % ownership interest in Eastern Morris Cranes Company Limited ("EMC"), a limited liability company organized and existing under the laws and regulations of the Kingdom of Saudi Arabia.

2 unchanged sentences

The investment value was increased for the Company's ownership percentage of income earned by EMC in the amount of $ 933,000 and $ 890,000 in the twelve months ended March 31, 2025, and March 31, 2024, respectively, and is recorded in Investment (income) loss, net on the Consolidated Statement of Operations.

Additionally, the investment value decreased in the amount of

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

$ 18,000 and $ 67,000 due to the effect of currency translation in the twelve months ended March 31, 2024 and March 31, 2023, respectively.

Further, in the twelve months ended March 31, 2024 and March 31, 2023, EMC distributed cash dividends which the Company received 49 % of pursuant to its ownership interest.

The investment value was decreased for the Company's share of EMC's cash dividend in the amount of $ 247,000 and $ 313,000 in the twelve months ended March 31, 2024 and March 31, 2023, respectively, as they were determined to be a return of the Company's investment.

Dividends are included in investing activities on the Consolidated Statements of Cash Flows in the amount of $ 144,000 and $ 313,000 in the twelve months ended March 31, 2024 and March 31, 2023, respectively, as the distribution exceeded cumulative equity in earnings, under the cumulative earnings approach.

Additionally, the investment value increased in the amount of $ 8,000 , and decreased $ 18,000 due to the effect of currency translation in the twelve months ended March 31, 2025 and March 31, 2024, respectively.

In the twelve months ended March 31, 2025, there no cash dividends distributed by EMC.

In the twelve months ended March 31, 2024, EMC distributed cash dividends which the Company received 49 % of pursuant to its ownership interest.

The investment value decreased for the Company's share of EMC's cash dividend in the amount of $ 247,000 , as it was determined to be a return of the Company's investment.

In the twelve months ended March 31, 2024, dividends are included in investing activities on the Consolidated Statements of Cash Flows in the amount of $ 144,000 as the distribution exceeded cumulative equity in earnings, under the cumulative earnings approach.

The balance of the cash dividend is included in operating activities on the Consolidated Statement of Cash Flows under the cumulative earnings approach.

9 unchanged sentences

Net property, plant, and equipment $ 106,164 $ 106,395

The acquisition of montratec contributed $ 7,478,000 to the increase in property, plant, and equipment since March 31, 2023.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Depreciation expense was $ 18,241,000 , $ 16,549,000 , and $ 15,946,000 for the years ended March 31, 2025, 2024, and 2023, respectively.

Gross property, plant, and equipment includes capitalized software costs of 40,881,000 and $ 43,826,000 at March 31, 2024 and 2023, respectively.

Gross property, plant, and equipment includes capitalized software costs of $ 42,927,000 at March 31, 2025, and $ 40,881,000 at March 31, 2024.

Accumulated depreciation includes accumulated amortization on capitalized software costs of $ 30,740,000 and $ 28,443,000 at March 31, 2025, and 2024, respectively.

4 unchanged sentences

The Rest of Products reporting unit (representing the hoist, chain, and forgings, digital power control systems, and distribution businesses) had goodwill of $ 305,110,000 and $ 304,760,000 at March 31, 2025 and 2024, respectively.

The Precision Conveyance reporting unit (which represents high-precision conveying systems) had goodwill of 395,875,000 and $ 327,942,000 at March 31, 2024 and March 31, 2023.

The Precision Conveyance reporting unit (which represents high-precision conveying systems) had goodwill of $ 395,998,000 and $ 395,875,000 at March 31, 2025 and March 31, 2024, respectivelly.

The goodwill associated with the fiscal 2024 acquisition of montratec, as described in Note 3, is included in the Precision Conveyance reporting unit.

2 unchanged sentences

To perform the

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

quantitative impairment test, the Company uses the discounted cash flow method to estimate the fair value of the reporting units.

To perform the quantitative impairment test, the Company uses the discounted cash flow method to estimate the fair value of the reporting units.

The Company projects discounted cash flows based on each reporting unit's current business, expected developments, and operational strategies over a seven-year period.

In estimating the terminal growth rates, the Company considers its historical and projected results, as well as the economic environment in which its reporting units operate.

The weighted-average cost of capital rates utilized for each reporting unit reflect the Company's assumptions of marketplace participants' cost of capital and risk assumptions, both specific to the reporting unit and overall in the economy.

The discount rate rates utilized for each reporting unit reflect the Company's assumptions of marketplace participants' cost of capital and risk assumptions, both specific to the reporting unit and overall in the economy.

We performed the qualitative assessment as of February 28, 2025, for all three reporting units and determined that the quantitative test was required for the Precision Conveyance reporting unit.

Based on results of both the qualitative and quantitative impairment tests for the reporting units, the Company determined the fair value was not less than its carrying value.

The quantitative test indicated that the fair value of the Precision Conveyance reporting unit exceeded its book value by 2.6 %.

Please refer to Note 5 for a discussion of the key assumptions used in the quantitative assessment.

7 unchanged sentences

After performing a qualitative assessment as of February 28, 2025, we determined that the trademarks were not impaired.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

A summary of changes in goodwill during the years ended March 31, 2025 and 2024 is as follows:

Balance at April 1, 2023

Working capital adjustment for Garvey $ 1,616

Garvey contingent payment reclassification $ ( 2,000 )

Acquisition of montratec (Refer to Note 3) $ 66,566

Currency translation $ ( 861 )

Balance at March 31, 2024

Acquisition of montratec (Refer to Note 3) 66,566

Currency translation 473

2 unchanged sentences

Identifiable intangible assets acquired in a business combination are amortized over their estimated useful lives.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Identifiable intangible assets at March 31, 2025, are summarized as follows (in thousands):

6 unchanged sentences

Balance at March 31, 2025

$ 541,284 $ ( 184,722 ) $ 356,562

Identifiable intangible assets at March 31, 2024 were as follows (in thousands):

6 unchanged sentences

Balance at March 31, 2024

$ 540,362 $ ( 154,728 ) $ 385,634

The Company’s intangible assets that are considered to have finite lives are amortized over the period in which the assets are expected to generate future cash flows.

5 unchanged sentences

Based on the current amount of intangible assets, the estimated amortization expense for each of the succeeding five years is expected to be approximately $ 30,000,000 .

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Derivative Instruments

11 unchanged sentences

The Company has derivative contracts with three counterparties as of March 31, 2025.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

The Company's agreements with its counterparties contain provisions pursuant to which the Company could be declared in default of its derivative obligations.

8 unchanged sentences

The Company has foreign currency forward agreements that are designated as cash flow hedges to hedge a portion of forecasted inventory purchases denominated in foreign currencies.

As of March 31, 2024, the notional amount of these derivatives was $ 7,590,000 , and all contracts mature by March 31, 2025.

As of March 31, 2025, the notional amount of these derivatives was $ 36,528,000 , and all contracts mature by December 31, 2025.

From its March 31, 2025 balance of AOCL, the Company expects to reclassify approximately $ 27,000 out of AOCL during the next 12 months based on the expected sales of the goods purchased.

The Company's policy is to maintain a capital structure that is comprised of 50 - 70 % of fixed rate long-term debt and 30 - 50 % of variable rate long-term debt.

The Company has two interest rate swap agreements in which the Company receives interest at a variable rate and pays interest at a fixed rate.

The most recent interest rate swap agreement was entered into in fiscal 2024 as a result of the additional debt from the montratec acquisition.

The Company modified its historical interest rate swaps from London Inter-Bank Offered Rate ("LIBOR") to Secured Overnight Financing Rate ("SOFR") in the first quarter of fiscal 2024.

This modification had no impact on the Company's hedge accounting and hedge designation.

These interest rate swap agreements are designated as cash flow hedges to hedge changes in interest expense due to changes in the variable interest rate of the Company's variable interest debt.

The amortizing interest rate swaps mature by April 30, 2028 and had a total notional amount of $ 346,434,000 as of March 31, 2024.

The Company's interest rate swap agreements are designated as cash flow hedges to hedge changes in interest expense due to changes in the interest rate of the Company's variable interest rate debt.

The Company has five interest rate swap agreements outstanding in which it receives interest at a variable rate and pays interest at a fixed rate.

The interest rate swaps have varying maturity dates between March 31, 2027, and March 23, 2029, with an aggregate notional amount of $ 355,000,000 as of March 31, 2025.

The effective portion of the changes in fair values of the interest rate swaps is reported in AOCL and will be reclassified to interest expense over the life of the swap agreements.

20 unchanged sentences

Derivatives Designated as

Hedging Instruments Balance Sheet Location 2024 2023

Hedging Instruments March 31, 2025 2024

Foreign exchange contracts Prepaid expenses and other $ 139 $ 56

Foreign exchange contracts Other Assets — 136

Foreign exchange contracts Accrued Liabilities ( 188 ) ( 133 )

4 unchanged sentences

Cross currency swap Prepaid expenses and other — 199

Cross currency swap Accrued liabilities ( 49 ) —

Cross currency swap Other non current liabilities ( 1,800 ) ( 2,541 )

30 unchanged sentences

Total debt, less current portion $ 408,708 $ 467,299

The Company entered into the First Lien Facilities with JPMorgan Chase Bank, PNC and Wells Fargo in connection with its Fiscal 2022 acquisition of Dorner.

The First Lien Facilities consisted of the Amended and Restated Revolving Credit Facility and the Bridge Facility.

Proceeds from the Bridge Facility were used, among other things, to finance the purchase price for the Dorner acquisition, pay related fees, expenses and transaction costs, and refinance the Company's borrowings under its prior Term Loan and Revolver.

Term Loan B and Revolving Credit Facility

On May 14, 2021, Columbus McKinnon Corporation (the “Borrower”) entered into an amended and restated credit agreement to provide for a term loan (“Term Loan B”), in the initial amount of $ 450,000,000 maturing May 14, 2028, and a $ 100,000,000 revolving line of credit with a group of financial institutions (“Revolving Credit Facility”) maturing May 14, 2026.

The Company borrowed additional funds in accordance with the Accordion feature under its existing Term Loan B facility in the amount of $ 75,000,000 in both fiscals 2022 and 2024.

Proceeds from the first Accordion were used, among other things, to

COLUMBUS McKINNON CORPORATION

1 unchanged sentence

(tabular amounts in thousands, except share data)

In addition to the debt borrowing described above, the Company commenced and completed an underwritten public offering of 4,312,500 shares of its common stock at a price of $ 48.00 per share for total gross proceeds of $ 207,000,000 .

The Company used all of the net proceeds from the equity offering to repay part of its outstanding borrowings under its Bridge Facility.

The equity offering closed on May 4, 2021.

Following the repayment of outstanding borrowings under the Bridge Facility, the Bridge Facility was refinanced with a syndicated Term Loan B facility (the "Term Loan B") on May 14, 2021.

The key terms of the Term Loan B facility are as follows:

finance the purchase price for the Garvey acquisition, and pay related fees, expenses, and transaction costs.

Proceeds from the second Accordion were used, among other things, to repay borrowings on the Amended and Restated Revolving Credit Facility.

No material amendment to the terms of the Term Loan B facility or the First Lien Facilities were necessary for the Company to utilize the Accordion feature.

The Company recorded $ 892,000 in deferred financing costs on the first Accordion in Fiscal 2022 and $ 1,522,000 on the second Accordion in Fiscal 2024, both of which will be amortized over the remaining life of the Term Loan B.

The Company borrowed against the expanded Amended and Restated Revolving Credit Facility in May of fiscal 2024 to initially fund the montratec acquisition as described in Note 3.

During fiscal 2024, the Company amended its Revolving Credit Facility increasing its size by $ 75,000,000 for a total of $ 175,000,000 .

The Company incurred fees of $ 801,000 in this transaction which have been deferred and will be amortized over the remaining term of the Amended and Restated Revolving Credit Facility.

The Company borrowed against the expanded Revolving Credit Facility in May of 2023 to initially fund the montratec acquisition as described in Note 3.

These borrowings were fully repaid in fiscal 2024.

On March 18, 2024, Columbus McKinnon Corporation entered into a Fourth Amendment (the “Fourth Amendment”) to the Amended and Restated Credit Agreement, dated as of May 14, 2021, by and among the Company, Columbus McKinnon EMEA GmbH, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and the other agents parties thereto, as amended (the “Credit Agreement”).

The Fourth Amendment reduces the interest rate margin applicable under the Term Loan B by 25 basis points for both term Secured Overnight Financing Rate ("SOFR") borrowings and base rate borrowings and eliminates the Term SOFR Adjustment on the term loan B only which varied based on the interest period selected.

After giving effect to the repricing, the applicable interest rate margins for the Term Loan B are 2.50 % for term SOFR borrowings and 1.50 % for base rate borrowings.

The Company has accounted for the Fourth Amendment as a debt modification, therefore, debt repricing fees incurred in fiscal 2024 were expensed as general and administrative expenses and the deferred financing fees incurred as part of the Term Loan B (discussed below) remain unchanged.

In addition to the above, the Company amended the variable interest component of its Term Loan B and Amended and Restated Revolving Credit Facility to transition from LIBOR to SOFR in fiscal 2024.

The outstanding principal balance of the Term Loan B facility was $ 437,560,000 and $ 477,560,000 as of March 31, 2025 and 2024, respectively.

The Company made $ 40,000,000 and $ 60,000,000 of principal payments on the Term Loan B during fiscal 2025 and fiscal 2024, respectively.

The Company is obligated to make $ 4,976,000 of principal payments on the Term Loan B facility over the next 12 months plus applicable Excess Cash Flow ("ECF") payments, if required, however, plans to pay down approximately $ 50,000,000 in principal payments in total during such 12 month period.

This amount has been recorded within the current portion of long term debt on the Company's Consolidated Balance Sheet with the remaining balance recorded as long term debt.

There were no outstanding borrowings and $ 15,417,000 outstanding letters of credit issued against the Amended and Restated Revolving Credit Facility as of March 31, 2025.

The outstanding letters of credit at March 31, 2025 consisted of $ 15,417,000 of standby letters of credit.

The gross balance of deferred financing costs on the Term Loan B facility was $ 7,845,000 as of March 31, 2025 and 2024, respectively.

The accumulated amortization balances were $ 4,201,000 and $ 2,971,000 as of March 31, 2025 and 2024, respectively.

The gross balance of deferred financing costs associated with the Revolving Credit Facility was $ 4,828,000 as of March 31, 2025 and March 31, 2024, respectively, which are included in Other assets on the Consolidated Balance Sheet.

The accumulated amortization balance is $ 3,733,000 and $ 2,655,000 as of March 31, 2025 and March 31, 2024, respectively.

Key Terms of the Term Loan B and Revolving Credit Facility:

• Term Loan B:

An aggregate $ 450,000,000 Term Loan B facility, which requires quarterly principal amortization of 0.25 % with the remaining principal due at the maturity date.

In addition, if the Company has Excess Cash Flow ("ECF") as defined in the Credit Agreement for the First Lien Facilities (the “First Lien Facilities Credit Agreement”), the ECF Percentage of the Excess Cash Flow for each fiscal year minus optional prepayments of the Loans (except prepayments of Revolving Loans that are not accompanied by a corresponding permanent reduction of Revolving Commitments) pursuant to Section 2.10(a) of the First Lien Facilities Credit Agreement other than to the extent that any such prepayment is funded with the proceeds of Funded Debt, shall be applied toward the prepayment of the Term Loan B facility.

The ECF Percentage is defined as 50 % stepping down to 25 % or 0 % based on the achievement of specified Secured Leverage Ratios as of the last day of such fiscal year.

In addition, if the Company has ECF as defined in the Credit Agreement for the First Lien Facilities (the “First Lien Facilities Credit Agreement”), the ECF Percentage of the Excess Cash Flow for each fiscal year minus optional prepayments of the Loans (except prepayments of Revolving Loans that are not accompanied by a corresponding permanent reduction of Revolving Commitments) pursuant to Section 2.10(a) of the First Lien Facilities Credit Agreement other than to the extent that any such prepayment is funded with the proceeds of Funded Debt, shall be applied toward the prepayment of the Term Loan B facility.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

ECF Percentage is defined as 50 % stepping down to 25 % or 0 % based on the achievement of specified Secured Leverage Ratios as of the last day of such fiscal year.

Further, the Company may draw additional Incremental Facilities (referred to as an "Accordion") by executing and delivering to JPMorgan Chase Bank, N.A.

1 unchanged sentence

Lenders shall have no obligation to participate in any increase unless they agree to do so in their sole discretion.

An aggregate $ 100,000,000 secured revolving facility which includes sublimits for the issuance of standby letters of credit, swingline loans and multi-currency borrowings in certain specified foreign currencies.

An aggregate $ 100,000,000 (later amended to $ 175,000,000 as described above) secured revolving facility which includes sublimits for the issuance of standby letters of credit, swingline loans and multi-currency borrowings in certain specified foreign currencies.

• Fees and Interest Rates:

Commitment fees and interest rates are determined on the basis of either a Eurocurrency rate or a Base rate plus an applicable margin, which is based upon the Company's Total Leverage Ratio (as defined in the First Lien Facilities Credit Agreement) in the case of Revolver loans.

Commitment fees and interest rates are determined on the basis of either a Eurocurrency rate or a Base rate plus an applicable margin, and credit spread adjustment.

In the case of the Revolving Credit Facility, the applicable margin is based upon the Company's Total Leverage Ratio (as defined in the First Lien Facilities Credit Agreement) in the case of Revolver loans.

• Prepayments:

Provisions permitting a Borrower to voluntarily prepay either the Term Loan B facility or Revolver in whole or in part at any time, and provisions requiring certain mandatory prepayments of the Term Loan B facility or Revolver on the occurrence of certain events which will permanently reduce the commitments under the First Lien Facilities Credit Agreement, each without premium or penalty, subject to reimbursement of certain costs of the Lenders.

5) Covenants:

Provisions containing covenants required of the Company and its subsidiaries including various affirmative and negative financial and operational covenants.

2 unchanged sentences

Obligations under the First Lien Facilities are secured by liens on substantially all assets of the Company and its material domestic subsidiaries.

During fiscal 2024, the Company amended its Amended and Restated Revolving Credit Facility increasing the size of the Amended and Restated Revolving Credit Facility by $ 75,000,000 to a total of $ 175,000,000 .

The Company incurred fees of $ 801,000 in this transaction which have been deferred and will be amortized over the remaining term of the Amended and Restated Revolving Credit Facility.

The Company borrowed against the expanded Amended and Restated Revolving Credit Facility in May of fiscal 2024 to initially fund the montratec acquisition as described in Note 3.

These borrowings were fully repaid in fiscal 2024

The Company borrowed additional funds in accordance with the Accordion feature under its existing Term Loan B facility by $ 75,000,000 in both fiscals 2022 and 2024.

Proceeds from the first Accordion were used, among other things, to finance the purchase price for the Garvey acquisition, and pay related fees, expenses, and transaction costs.

Proceeds from the second Accordion were used, among other things, to repay borrowings on the Amended and Restated Revolving Credit Facility.

No material amendment to the terms of the Term Loan B facility or the First Lien Facilities were necessary for the Company to

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

utilize the Accordion feature.

The Company borrowed against the expanded Amended and Restated Revolving Credit Facility in May of fiscal 2024 to initially fund the montratec acquisition as described in Note 3.

Further, the Company borrowed an additional $ 45,000,000 under a new credit agreement secured by the Company's U.S accounts receivable balances (the "AR Securitization Facility").

The total U.S accounts receivable balances which secure the AR Securitization Facility total $ 74,590,000 as of March 31, 2024.

The Company used the proceeds from the second $ 75,000,000 Accordion borrowing and the $ 45,000,000 AR Securitization Facility to fully repay borrowings on the Amended and Restated Revolving Credit Facility prior to June 30, 2023.

The Key terms of the new AR Securitization Facility are as follows:

• The AR Securitization Facility Agreement provides for revolving loans to be made up to a maximum principal amount of $ 55,000,000 of which $ 45,000,000 was drawn as of March 31, 2024.

AR Securitization Facility

On June 20, 2023, the Company entered into an AR Securitization Facility secured by the Company’s U.S.

accounts receivable balances (the “AR Securitization Facility”) with a borrowing base of $ 55,000,000 calculated on a monthly basis, with a maturity date of June 19, 2026.

The gross balance of deferred financing costs associated with the AR Securitization Facility was $ 536,000 as of March 31, 2025 and 2024, respectively.

The accumulated amortization balance of $ 327,000 and $ 149,000 as of March 31, 2025 and 2024.

As of March 31, 2025, the Company has $ 25,000,000 outstanding under its AR Securitization Facility.

The total U.S.

accounts receivable balances which secure the AR Securitization Facility total $ 78,939,000 as of March 31, 2025.

Key Terms of the AR Securitization Facility:

• The AR Securitization Facility Agreement provides for revolving loans to be made up to a maximum principal amount of $ 55,000,000 .

• The AR Securitization Facility borrowings bear interest at a floating rate equal to a one-month secured overnight funding rate (SOFR) plus 10 basis points of credit spread adjustment, plus 110 basis points.

• The AR Securitization Facility borrowings are secured by the Company's U.S.

accounts receivables totaling $ 74,590,000 at March 31, 2024.

• The AR Securitization Facility Agreement contains customary events of default (referred to as “Amortization Events.”)

1 unchanged sentence

Prior to the maturity date, the Company is only required to repay principal to the extent necessary to maintain borrowing base compliance, unless an Amortization Event occurs.

As of March 31, 2024, there have been no Amortization Events triggered in the AR Securitization Facility.

The Company has both the ability and intent to have the AR Securitization Facility remain outstanding for the next 12 months.

As such, the Company has classified the full $ 45,000,000 outstanding borrowings under the AR Securitization Facility as long-term debt at March 31, 2024 demonstrated above.

In addition to the above, the Company amended the variable interest component of its Term Loan B and Amended and Restated Revolving Credit Facility to transition from LIBOR to SOFR.

The Fourth Amendment reduces the interest rate margin applicable under the Term Loan B by 25 basis points for both term SOFR borrowings and base rate borrowings and eliminates the Term SOFR Adjustment on the term loan B only which varied based on the interest period selected.

After giving effect to the repricing, the applicable interest rate margins for the Term Loan B are 2.50 % for term SOFR borrowings and 1.50 % for base rate borrowings.

The outstanding principal balance of the Term Loan B facility was $ 477,560,000 as of March 31, 2024, which includes $ 75,000,000 in principal balance from the Accordion exercised in the first quarter of fiscal 2024 as described above, and the outstanding balance of the Term Loan B was $ 462,560,000 as of March 31, 2023.

The Company made $ 60,000,000 and $ 40,000,000 of principal payments on the Term Loan B during fiscal 2024 and fiscal 2023, respectively.

The Company is obligated to make $ 4,976,000 of principal payments on the Term Loan B facility over the next 12 months plus applicable ECF payments, if required, however, plans to pay down approximately $ 50,000,000 in principal payments in total during such 12 month period.

This amount has been recorded within the current portion of long term debt on the Company's Consolidated Balance Sheet with the remaining balance recorded as long term debt.

COLUMBUS McKINNON CORPORATION

1 unchanged sentence

(tabular amounts in thousands, except share data)

There were no outstanding borrowings and $ 15,368,000 outstanding letters of credit issued against the Amended and Restated Revolving Credit Facility as of March 31, 2024.

The outstanding letters of credit at March 31, 2024 consisted of $ 15,368,000 of standby letters of credit.

The gross balance of deferred financing costs on the Term Loan B facility was $ 7,845,000 and $ 6,323,000 as of March 31, 2024 and 2023, respectively.

The increase of $ 1,522,000 in fiscal 2024 relates to the Accordion exercise described above.

The accumulated amortization balances were $ 2,971,000 and $ 1,815,000 as of March 31, 2024 and 2023, respectively.

The gross balance of deferred financing costs associated with the AR Securitization Facility was $ 536,000 with an accumulated amortization balance of $ 149,000 as of March 31, 2024.

The gross balance of deferred financing costs associated with the Amended and Restated Revolving Credit Facility was $ 4,828,000 as of March 31, 2024 and $ 4,027,000 as of March 31, 2023, respectively, which are included in Other assets on the Consolidated Balance Sheet.

The increase in the deferred financing costs in Fiscal 2024 are related to fees incurred to increase the facility as described above.

The accumulated amortization balance is $ 2,655,000 and $ 1,611,000 as of March 31, 2024 and March 31, 2023, respectively.

As of March 31, 2025, there have been no Amortization Events triggered in the AR Securitization Facility.

The Company voluntarily paid down $ 20,000,000 on the AR Securitization Facility in fiscal 2025.

The Company has both the ability and intent to have the AR Securitization Facility remain outstanding for the next 12 months.

As such, the Company has classified the full $ 25,000,000 outstanding borrowings under the AR Securitization Facility as long-term debt at March 31, 2025.

The principal payments obligated to be made as of March 31, 2025 on the Term Loan B facility and AR Securitization are as follows:

2027 $ 29,976

2029 $ 422,632

Thereafter $ —

Finance Lease

In connection with Dorner acquisition, the Company recorded a finance lease for a manufacturing facility in Hartland, WI under a 23 year lease agreement, which terminates in 2035.

The outstanding balance on the finance lease obligation is $ 12,267,000 as of March 31, 2025 of which $ 739,000 has been recorded within the Current portion of long term debt and the remaining balance recorded within Term loan, AR securitization facility and finance lease obligations on the Company's Consolidated Balance Sheet.

See Note 18, Leases , for further details.

See Note 18 for further details.

Lines of Credit and Loans

1 unchanged sentence

The lines of credit are available on an offering basis, meaning that transactions under the line of credit will be on such terms and conditions, including interest rate, maturity, representations, covenants, and events of default, as mutually agreed between our subsidiaries and the local bank at the time of each specific transaction.

As of March 31, 2024, unsecured credit lines totaled approximately $ 2,374,000 , of which $ 0 was drawn.

In addition, unsecured lines of $ 13,945,000 were available for bank guarantees issued in the normal course of business of which $ 11,261,000 was utilized.

As of March 31, 2025, unsecured credit lines totaled approximately $ 2,920,000 , of which nothing was drawn.

In addition, unsecured lines of $ 22,118,000 were available for bank guarantees issued in the normal course of business of which $ 16,537,000 was utilized as of March 31, 2025.

Pensions and Other Benefit Plans

24 unchanged sentences

Settlement ( 95,080 ) ( 20,510 )

Assets transferred out related to plan termination (see below) ( 6,974 ) —

Foreign exchange rate changes ( 28 ) ( 4 )

3 unchanged sentences

Net amount recognized $ ( 81,256 ) $ ( 52,204 )

During fiscal 2024, the Company terminated both of its Canadian pension plans and began the process to terminate one of its U.S.

pension plans.

plan, lump sum payments were made to eligible participants who elected to receive them.

The lump sum payments were paid during the third and fourth quarters of fiscal 2024.

These lump sum payments along with the overall termination of the two Canadian plans resulted in a settlement charge of $ 4,984,000 which was recorded in Other (income) expense, net on the Consolidated Statements of Operations.

The Company expects to complete the termination of the U.S.

plan in fiscal year 2025.

The Company terminated both of its Canadian pension plans in fiscal 2024 and terminated one of its U.S.

pension plans in fiscal 2025.

Lump sum payments were made to eligible participants who elected to receive them in the third and fourth quarter of fiscal year 2024.

In fiscal 2024, these lump sum payments along with the overall termination of the two Canadian plans resulted in a settlement charge of $ 4,984,000 which was recorded in Other (income) expense, net on the Consolidated Statements of Operations.

On September 30, 2024, the Company purchased annuity contracts to settle the remaining liabilities of the terminated U.S.

The annuity contract purchase resulted in a non-cash settlement charge of $ 23,634,000 for the year ended March 31, 2025, which was recorded in Other (income) expense, net on the Condensed Consolidated Statements of Operations.

At termination, the pension plan had a pension asset surplus of $ 6,974,000 .

This surplus is being used to fund certain obligations associated with the Company's U.S.

defined contribution plans.

The remaining surplus of the terminated plan is $ 6,342,000 as of March 31, 2025.

Amounts recognized in the consolidated balance sheets are as follows:

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The Company has an investment objective for domestic pension plans to adequately provide for both the growth and liquidity needed to support all current and future benefit payment obligations.

The Company's policy is to de-risk the portfolio by increasing liability-hedging investments as the pension liability funded status increases, which is known as the glide path

The Company's policy is to de-risk the portfolio by

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

increasing liability-hedging investments as the pension liability funded status increases, which is known as the glide path method.

In fiscal 2026, the Company expects its U.S.

plan to be fully funded, and will therefore further de-risk its portfolio.

Within the table above, cash equivalents are categorized as fixed income as they earn lower returns than equity securities which includes alternative real estate funds (shown in the fair value tables below).

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Common collective trusts — 98,117

Alternative real estate — 8,565

Cash equivalents 289 4,319

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Fixed income securities — 83,216 — — 83,216

Common collective trusts 98,117 — — — 98,117

Cash equivalents — 289 — — 289

10 unchanged sentences

Common collective trusts 98,117 — — — 98,117

Alternative real estate 8,565 — — — 8,565

Cash equivalents — 4,319 — — 4,319

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We are not aware of any significant restrictions on the issuances or redemption of shares of these funds.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Level 2 fixed income securities fair values of the underlying investments are generally based on independent broker dealer bids, or by comparison to other debt securities having similar durations, yields, and credit ratings.

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Diluted earnings per share include any dilutive effects of stock options, unvested restricted stock units, unvested performance shares, and unvested restricted stock.

Stock options and performance shares with respect to 479,000 and 651,000 common shares were not included in the computation of diluted earnings per share for fiscal 2024 and 2023, respectively, because they were antidilutive.

For the years ended March 31, 2024 and 2023, an additional 165,000 and 179,000 , respectively, in contingently issuable shares were not included in the computation of diluted earnings per share because a performance condition had not yet been met.

Stock options, restricted stock units, and performance shares with respect to 1,756,000 common shares for the fiscal year ended March 31, 2025 were not included in the computation of diluted income per share because they were antidilutive as a result of the Company's net loss.

The net loss was the result of the Company's U.S.

pension plan termination, plant consolidation activities, and Kito acquisition related expenses.

Refer to Notes 3 and 13 for additional information regarding these transactions.

Stock options and performance shares with respect to 479,000 common shares were not included in the computation of diluted earnings per share for fiscal 2024 because they were antidilutive.

An additional 165,000 in contingently issuable shares were not included in the computation of diluted earnings per share in Fiscal 2024 because a performance condition had not yet been met.

The following table sets forth the computation of basic and diluted earnings per share (share data presented in thousands):

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2025 2024 2023

Net income $ 46,625 $ 48,429 $ 29,660

Net income (loss) $ ( 5,138 ) $ 46,625 $ 48,429

Denominators:

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The weighted-average common stock outstanding shown above is net of unallocated ESOP shares (see Note 14).

During fiscal 2023, the Company repurchased 31,000 shares of its common stock at an aggregate cost of $ 1,001,000 in accordance with the Company's previously adopted share repurchase program.

The value of the shares purchased are reflected as Treasury stock on the Company's Consolidated Balance Sheet as of March 31, 2023.

The Company records stock-based compensation in accordance with ASC Topic 718, “Compensation – Stock Compensation,” applying the modified prospective method.

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Under the modified prospective method, the Company is required to record equity-based compensation expense for all awards granted after the date of adoption and for the unvested portion of previously granted awards outstanding as of the date of adoption.

The Company grants share based compensation to eligible participants under the 2016 Long Term Incentive Plan, as Amended and Restated in June 2019 ("2016 LTIP").

The total number of shares of common stock with respect to which awards may be

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

The Company grants share based compensation to eligible participants under the 2016 Long Term Incentive Plan, as Amended and Restated in June 2019 ("2016 LTIP").

The total number of shares of common stock with respect to which awards may be granted under the 2016 LTIP were increased by 2,500,000 as a result of the June 2019 amendment.

granted under the 2016 LTIP were increased by 2,500,000 as a result of the June 2019 amendment.

In July of fiscal 2025, the 2016 LTIP was amended and restated a second time, which increased the total number of shares of common stock that may be granted under the 2016 LTIP by an additional 2,800,000 shares.

Shares not previously authorized for issuance under any of the prior stock plans, and shares not issued or subject to outstanding awards under the prior stock plans are still available for issuance.

Details of the shares granted under these plans are discussed below.

Prior to the adoption of the 2016 LTIP, the Company granted stock awards under the 2010 Long Term Incentive Plan and the 2006 Long Term Incentive Plan, collectively referred to as the “Prior Stock Plans.”

Stock based compensation expense was $ 6,256,000 , $ 12,039,000 , and $ 10,425,000 for fiscal 2025, 2024, and 2023, respectively.

5 unchanged sentences

Long Term Incentive Plan

Under the 2016 LTIP, t he total number of shares of common stock with respect to which awards may be granted under the plan is 2,500,000 in addition to shares not previously authorized for issuance under any of the prior stock plans and any shares not issued or subject to outstanding awards under the prior stock plans.

Under the 2016 LTIP, t he total number of shares of common stock with respect to which awards may be granted under the plan has increased to 5,300,000 in fiscal 2025 as a result of the fiscal 2025 amendment described above.

As of March 31, 2025, 2,562,000 shares remain available for future grants.

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The expected term of stock options is based on vesting schedules, expected exercise patterns and contractual terms.

Restricted Stock Units

The Company granted restricted stock units under the 2016 LTIP during fiscal 2024, 2023, and 2022 to employees as well as to the Company’s non-executive directors as part of their annual compensation.

For fiscal 2022, 2023, and 2024 restricted stock units for employees vest ratably based on service one-third after each of years one, two, and three.

COLUMBUS McKINNON CORPORATION

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Restricted Stock Units

The Company granted restricted stock units under the 2016 LTIP during fiscal 2025, 2024, and 2023 to employees as well as to the Company’s non-executive directors as part of their annual compensation.

For fiscal 2023, 2024, and 2025 restricted stock units for employees vest ratably based on service one-third after each of years one, two, and three.

A summary of the restricted stock unit awards granted under the Company’s LTIP plan as of March 31, 2025 is as follows:

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Performance based shares are recognized as compensation expense based upon their grant date fair value and to the extent it is probable that the performance conditions will be met.

This expense is recognized ratably over the three year period that these shares are restricted.

Fiscal 2022 performance shares granted vest pursuant to a performance condition based upon the Company’s Consolidated Return on Invested Capital ("ROIC") for the twelve months ended March 31, 2024.

This expense is recognized ratably over the 3 -year period that these shares are restricted.

Fiscal 2023 performance shares issued are granted pursuant to a performance condition based upon the Company’s Consolidated Return on Invested Capital ("ROIC") for the twelve months ended March 31, 2025.

During fiscal 2025, the Company determined that the performance condition on its fiscal 2023 performance shares would not be fully met.

The Company has adjusted its stock-based compensation expense accordingly in fiscal 2025.

Fiscal 2023 performance shares granted vest pursuant to a performance condition based upon the Company’s Consolidated ROIC for the twelve months ended March 31, 2025.

At this time, the Company believes the March 31, 2025 performance condition will be met.

Fiscal 2024 performance shares granted vest pursuant to a performance condition based upon the Company’s Consolidated ROIC for the twelve months ended March 31, 2026.

At this time, the Company believes the March 31, 2026 performance condition will be met.

Fiscal 2024 performance shares issued are granted pursuant to a performance condition based upon the Company’s Consolidated ROIC for the twelve months ended March 31, 2026.

At this time, the Company believes the March 31, 2026 performance condition will not be fully met and has adjusted compensation expense accordingly.

Fiscal 2025 performance shares issued are granted pursuant to a performance condition based upon the Company’s revenue and EBITDA margin growth rates in fiscal 2025, 2026, and 2027.

At this time, the Company believes the fiscal 2025 portion of the performance condition will not be met and has adjusted compensation expense accordingly.

COLUMBUS McKINNON CORPORATION

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Granted 67,606 33.03

Vested ( 18,296 ) 36.43

Forfeited ( 26,633 ) 35.26

2 unchanged sentences

Granted 73,453 36.58

Vested ( 39,720 ) 35.95

Forfeited ( 33,838 ) 28.66

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The Company repurchased 31,000 shares of its common stock at an aggregate cost of $ 1,010,000 in accordance with this plan during the fiscal year ended March 31, 2023.

No repurchases were made during the fiscal year ended March 31, 2024.

In fiscal 2025, the Company repurchased an additional 293,000 shares of its common stock at an aggregate cost of $ 9,945,000 in accordance with this plan.

The value of the shares purchased are reflected as Treasury stock on the Company's Consolidated Balance Sheets as of March 31, 2025.

Loss Contingencies

From time to time, the Company is named a defendant in legal actions arising out of the normal course of business.

The Company is not a party to any pending legal proceeding other than ordinary, routine litigation incidental to our business.

The Company does not believe that any of our pending litigation will have a material impact on its business.

The Company is not a party to any pending legal proceeding other than ordinary, routine litigation incidental to its business.

The Company does not believe that any of its pending litigation will have a material impact on its business.

Accrued general and product liability costs are actuarially estimated reserves based on amounts determined from loss reports, individual cases filed with the Company, and an amount for losses incurred but not reported.

The aggregate amounts of reserves were $ 19,988,000 (gross of estimated insurance recoveries of $ 7,637,000 ) and $ 21,103,000 (gross of estimated insurance recoveries of $ 8,272,000 ) of which $ 15,388,000 and $ 16,203,000 are included in Other non current liabilities and $ 4,600,000

The aggregate amounts of reserves

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

and $ 4,900,000 in Accrued liabilities as of March 31, 2024 and 2023, respectively.

were $ 19,446,000 (gross of estimated insurance recoveries of $ 6,995,000 ) and $ 19,988,000 (gross of estimated insurance recoveries of $ 7,637,000 ) of which $ 15,046,000 and $ 15,388,000 are included in Other non current liabilities and $ 4,400,000 and $ 4,600,000 in Accrued liabilities as of March 31, 2025 and 2024, respectively.

The liability for accrued general and product liability costs are funded by investments in marketable securities (see Notes 2 and 7).

The following table provides a reconciliation of the beginning and ending balances for accrued general and product liability:

The following table provides a reconciliation of the beginning and ending balances for accrued general and product liability (in thousands):

Year Ended March 31,

7 unchanged sentences

Net accrued general and product liability, end of year $ 12,451 $ 12,351 $ 12,831

The per occurrence limits on the self-insurance for general and product liability coverage to Columbus McKinnon through its wholly-owned captive insurance company were $ 2,000,000 from inception through fiscal 2003 and $ 3,000,000 for fiscal 2004 and thereafter.

The per occurrence limits on the self-insurance for general and product liability coverage to Columbus McKinnon through CMIC, its wholly-owned captive insurance company were $ 2,000,000 from inception through fiscal 2003 and $ 3,000,000 for fiscal 2004 and thereafter.

In addition to the per occurrence limits, the Company’s coverage is also subject to an annual aggregate limit, applicable to losses only.

1 unchanged sentence

The Company also purchases excess general and product liability insurance up to an aggregate $ 75,000,000 limit.

In fiscal 2026, the aggregate limit was increased to $ 100,000,000 .

Like many industrial manufacturers, the Company is involved in asbestos-related litigation.

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A share of the Company's previously incurred asbestos-related expenses and future asbestos-related expenses are covered by pre-existing insurance policies.

The Company had been engaged in a legal action against the insurance carriers for those policies to recover past expenses and future costs incurred.

The Company came to an agreement with the insurance carriers to settle its case against them for recovery of a portion of past costs and future costs for asbestos-related legal defense costs.

The agreement was finalized during the quarter ended September 30, 2020.

The terms of the settlement require the carriers to pay

The Company had been engaged in a legal action against the insurance carriers for those

COLUMBUS McKINNON CORPORATION

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gross defense costs prior to retro-premiums of 65 % for future asbestos-related defense costs subject to an annual cap of $ 1,650,000 for claims covered by the settlement.

policies to recover past expenses and future costs incurred.

The Company came to an agreement with the insurance carriers to settle its case against them for recovery of a portion of past costs and future costs for asbestos-related legal defense costs.

The agreement was finalized during the quarter ended September 30, 2020.

The terms of the settlement require the carriers to pay gross defense costs prior to retro-premiums of 65 % for future asbestos-related defense costs subject to an annual cap of $ 1,650,000 for claims covered by the settlements.

Further, the insurance carriers are expected to cover 100 % of indemnity costs related to all covered cases.

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In April of fiscal 2025, a trial involving a product liability claim against the Company resulted in a jury verdict demanding the Company to pay approximately $ 3,000,000 in damages.

The Company along with its attorneys believes it will be successful in overturning this verdict and that payment of the damages is not probable.

As such the Company has not accrued the damages at March 31, 2024.

The Company plans to appeal and along with its attorneys believes it will be successful in overturning this verdict and that payment of the damages is not probable.

As such the Company has not accrued the damages as a liability in the Consolidated Balance Sheet at March 31, 2025.

Management believes that the potential additional costs for claims will not have a material effect on the financial condition of the Company or its liquidity, although the effect of any future liabilities recorded could be material to earnings in a future period.

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The Regional Tax Commission of Florence heard the appeal of the tax assessment dismissal for the period of July 2003 to June 2004 and thereafter issued its ruling finding in favor of the tax authority.

Magnetek believed the court’s decision was based upon erroneous interpretations of the applicable law and appealed the ruling to the Italian Supreme Court in April 2015.

In April 2022, the Supreme Court upheld the appeal in favor of Power-One.

Magnetek believed the

COLUMBUS McKINNON CORPORATION

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court’s decision was based upon erroneous interpretations of the applicable law and appealed the ruling to the Italian Supreme Court in April 2015.

In April 2022, the Supreme Court upheld the appeal in favor of Power-One.

The tax authority in Arezzo, Italy also issued a tax inspection report in January 2011 for the periods July 2002 to June 2003 (fiscal period 2002/2003) and July 2004 to December 2006 (fiscal periods 2004/2005 and 2005/2006) claiming that the Power-One China Subsidiary failed to file Italian tax returns for the reported periods.

4 unchanged sentences

In December 2016, the Power-One China Subsidiary was served by the Italian Revenue Agency with two appeals to the Italian Supreme Court regarding the two positive judgments on the tax assessments for the fiscal periods 2004/2005 and 2005/2006.

In February 2017 the Power-One China Subsidiary filed two memorandum before the Italian Supreme Court in response to the appeals made by the tax authority against the positive judgments on the tax assessments for fiscal years 2004/2005 and 2005/2006.

In March 2017, the Regional Tax Court of Florence rejected the appeal of the assessment for 2006 fiscal year (period July 2006-December 2006).

In February 2017 the Power-One China Subsidiary filed two memorandums before the Italian Supreme Court in response to the appeals made by the tax authority against the positive judgments on the tax assessments for fiscal years 2004/2005 and 2005/2006.

In March 2017, the Regional Tax Court of Florence rejected the appeal of the assessment for the 2006 fiscal year (period July 2006-December 2006).

In October 2017, the Power-One China Subsidiary was served by the Italian Revenue Agency with an appeal to the Italian Supreme Court against the positive judgment on the tax assessment for fiscal year 2006.

In November 2017 the Power-One China Subsidiary filed a memorandum before the Italian Supreme Court in response to the appeal made by the tax authority against the positive judgment on the tax assessment for fiscal year 2006.

In March 2018, the Regional Tax Court of Florence rejected the appeal of the assessment for 2002/2003 fiscal year.

In March 2018, the Regional Tax Court of Florence rejected the appeal of the assessment for the 2002/2003 fiscal year.

In October 2018 the Power-One China Subsidiary was served by the Italian Revenue Agency with an appeal to the Italian Supreme Court against the positive judgment on the tax assessment for fiscal year 2002/2003.

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Monsanto claims to be entitled to defense and indemnification from Magnetek under a so-called “Special Undertaking” apparently executed by Magnetek’s predecessor Universal Manufacturing ("Universal") in January of 1972, which purportedly required Universal to defend and indemnify Monsanto from liabilities “arising out of or in connection with the receipt, purchase, possession, handling, use, sale or disposition of” PCBs by Universal.

Magnetek has declined Monsanto’s tender, and believes that it has meritorious legal and factual defenses to the demands made by Monsanto.

Magnetek is vigorously defending against those demands and commenced litigation in New Jersey to, among other things, declare the Special Undertaking void and unenforceable.

Monsanto has, in turn, commenced an action to enforce the Special Undertaking in Missouri and joined five additional companies as co-defendants in that Missouri action.

COLUMBUS McKINNON CORPORATION

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Magnetek has declined Monsanto’s tender, and believes that it has meritorious legal and factual defenses to the demands made by Monsanto.

Magnetek is vigorously defending against those demands and commenced litigation in New Jersey to, among other things, declare the Special Undertaking void and unenforceable.

Monsanto has, in turn, commenced an action to enforce the Special Undertaking in Missouri and joined five additional companies as co-defendants in that Missouri action.

The New Jersey action was recently dismissed in favor of the Missouri action.

Magnetek has appealed that decision and intends to continue to vigorously prosecute its New Jersey declaratory judgment action, and to defend against Monsanto’s action against it.

Magnetek intends to continue to vigorously defend against Monsanto’s action.

The Company cannot reasonably estimate a potential range of loss with respect to Monsanto’s tender because there is insufficient information regarding the underlying matters.

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Magnetek further believes that FOL's obligation to the state of Connecticut was not discharged in the reorganization proceeding.

In January 2007, the Connecticut Department of Environmental Protection (“DEP”) requested parties, including Magnetek, to submit reports summarizing the investigations and remediation performed to date at the site and the proposed additional investigations and remediation necessary to complete those actions at the site.

DEP requested additional information relating to site investigations and remediation.

Magnetek and the DEP agreed to the scope of the work plan in November 2010.

The Company has recorded a liability of $ 449,000 , included in the amount specified above, related to the Bridgeport facility,

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

representing the best estimate of future site investigation costs and remediation costs which are expected to be incurred in the future.

DEP requested additional information relating to site investigations and remediation.

Magnetek and the DEP agreed to the scope of the work plan in November 2010.

The Company has recorded a liability of $ 430,000 , included in the amount specified above, related to the Bridgeport facility, representing the best estimate of future site investigation costs and remediation costs which are expected to be incurred in the future.

For all of the currently known environmental matters, the Company has accrued as of March 31, 2025 a total of $ 762,000 which, in our opinion, is sufficient to deal with such matters.

The Company is not aware of any environmental condition or any operation at any of its facilities, either individually or in the aggregate, which would cause expenditures to have a material adverse effect on its results of operations, financial condition or cash flows and, accordingly, has not budgeted any material capital expenditures for environmental compliance for fiscal 2024.

United States income before income tax expense was $ 20,464,000 , $ 26,076,000 , and ($ 3,681,000 ) for the years ended March 31, 2024, 2023, and 2022, respectively.

United States income (loss) before income tax expense was $( 44,297,000 ), $ 20,464,000 , and $ 26,076,000 for the years ended March 31, 2025, 2024, and 2023, respectively.

Income before income tax expense also includes foreign subsidiary income of $ 38,791,000 , $ 41,063,000 , and $ 48,399,000 for the years ended March 31, 2025, 2024, and 2023, respectively.

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Statutory federal income tax rate (1) 21.00 % 21.00 % 21.00 %

Expected tax at statutory rate $ 12,921 $ 15,640 $ 8,109

Expected tax expense (benefit) at statutory rate $ ( 1,156 ) $ 12,921 $ 15,640

State income taxes net of federal benefit ( 514 ) 652 2,719

9 unchanged sentences

Unremitted earnings 397 501 720

Reversal of stranded tax effects from AOCI 961 ( 22 ) —

Interest income from tax refunds ( 505 ) — —

Non-deductible interest 286 420 119

Transfer pricing adjustments 600 — —

Return to provision adjustment ( 180 ) 440 2,454

4 unchanged sentences

For fiscal 2024, the Company collected tax refunds related to a period prior to the Company's acquisition of STAHL.

In accordance with the tax indemnification clause of the share purchase agreement, the Company will reimburse STAHL’s prior owner which was recorded as an loss in Other (income) expense, net.

(3) For fiscal 2024, the Company wrote off $ 1,142,000 of tax attributes as a result of legal entity simplification.The tax attributes had an associated valuation allowance of $ 1,142,000 which was also written off in fiscal 2024.

(4) For fiscal 2024, a tax impact of $ 525,000 from non-deductible transaction costs was incurred as part of the montratec GmbH acquisition.

In accordance with

COLUMBUS McKINNON CORPORATION

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the tax indemnifica tion clause of the share purchase agreement, the Company will reimburse STAHL’s prior owner which was recorded as an loss in Other (income) expense, net.

(4) For fiscal 2024, a tax impact of $ 525,000 from non-deductible transaction costs was incurred as part of the montratec GmbH acquisition.

The provision for income tax expense (benefit) consisted of the following:

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Federal net operating loss carryforwards $ 10,649 $ 11,779

State and foreign net operating loss carryforwards 8,104 6,656

State and foreign tax loss and credit carryforwards 8,992 9,354

Employee benefit plans 9,624 12,203

Inventory 4,243 3,853

Insurance reserves 3,060 3,301

5 unchanged sentences

Interest Carryforwards 10,411 5,657

Other 3,527 1,073

Valuation allowance ( 15,802 ) ( 15,156 )

4 unchanged sentences

Intangible assets ( 88,275 ) ( 96,494 )

Other — ( 535 )

Unremitted earnings ( 1,322 ) —

Total deferred tax liabilities ( 112,313 ) ( 123,063 )

Net deferred tax assets (liabilities) $ ( 25,398 ) $ ( 38,653 )

The valuation allowance includes $ 989,000 and $ 2,070,000 primarily related to foreign net operating losses at March 31, 2024 and 2023, respectively.

The valuation allowance also includes $ 2,091,000 and $ 1,788,000 for separate state net operating losses at March 31, 2024 and 2023, respectively.

The remaining valuation allowance primarily relates to foreign tax credits which the Company believes it will not utilize of $ 12,076,000 and $ 12,088,000 for the years ended March 31, 2024 and 2023, respectively.

The Company’s foreign subsidiaries have tax-effected net operating loss carryforwards of $ 4,246,000 that expire in periods ranging from five years to indefinite.

Federal net operating loss carryforwards from the acquisition of Dorner were fully utilized in fiscal 2023.

Federal net operating loss carryforwards of $ 56,088,000 remain from the acquisition of Magnetek, have expiration dates ranging from 2025 through

COLUMBUS McKINNON CORPORATION

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2035, and are subject to certain limitations under U.S.

State net operating losses of $ 69,412,000 either have indefinite carryforward periods or have expiration dates ranging from 2025 through 2042.

The federal tax credits have expiration dates ranging from 2028 to 2034.

Included in the Other deferred tax asset category above are $ 1,251,000 of state tax credit carryforwards.

These state tax credit carryforwards have expiration dates ranging from 2026 to 2038.

(1) Fiscal year 2024 table amounts have been adjusted to be consistent with individual deferred tax items disclosed for fiscal 2025.

The valuation allowance includes $ 1,151,000 and $ 989,000 primarily related to foreign net operating losses at March 31, 2025 and 2024, respectively.

The valuation allowance also includes $ 2,571,000 and $ 2,091,000 for state net operating losses at March 31, 2025 and 2024, respectively.

The remaining valuation allowance primarily relates to foreign tax credits which the Company believes it will not utilize of $ 12,080,000 and $ 12,076,000 for the years ended March 31, 2025 and 2024, respectively.

The Company’s foreign subsidiaries have tax-effected net operating loss carryforwards of $ 4,648,000 that expire in periods ranging from five years to indefinite.

Federal net operating loss carryforwards of $ 50,711,000 remain from the acquisition of Magnetek, have expiration dates ranging from fiscal 2026 through 2036, and are subject to certain limitations under U.S.

State net operating losses of $ 59,159,000 either have indefinite carryforward periods or have expiration dates ranging from fiscal 2026 through 2045.

The federal tax credits have expiration dates ranging from fiscal 2029 to 2034.

Included in the State and foreign net operating loss and credit carryforwards category above are $ 1,221,000 of state tax credit carryforwards.

These state tax credit carryforwards have expiration dates ranging from fiscal 2026 to 2039.

Deferred income taxes are classified within the consolidated balance sheets based on the following breakdown:

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As of March 31, 2025, a tax liability of approximately $ 1,322,000 has been accrued for taxes that would be incurred upon repatriation of the earnings that are not permanently reinvested.

$ 75,848,000 of unremitted earnings of other subsidiaries and outside basis differences other than unremitted earnings are intended to be permanently reinvested.

As of March 31, 2025, $ 79,490,000 of unremitted earnings of other subsidiaries and outside basis differences other than unremitted earnings are intended to be permanently reinvested.

It is not practicable to calculate the amount of unrecognized deferred tax related to these basis differences.

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With few exceptions, the Company is no longer subject to tax examinations by tax authorities in the United States for tax years prior to March 31, 2022 and in Germany for tax years prior to March 31, 2012.

The Company has a current tax examination in Germany underway for fiscal years 2012 to 2014.

In addition, the tax authorities have also started an examination for fiscal years 2015 through 2018.

The Inflation Reduction Act was enacted in fiscal year 2023 and includes the implementation of a new 15% minimum tax on book income of certain large corporations, an excise tax on stock buybacks, and various tax credits and incentives for energy and clean climate initiatives, among other provisions.

The Company has evaluated the Act and its provisions did not have a material impact to the Company's consolidated financial statements for fiscal 2024.

On December 15, 2022, the European Union (EU) Member States formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (OECD) Pillar Two Framework.

A significant number of other countries are expected to also implement similar legislation with varying effective dates in the future.

The Company will be subject to legislation beginning in the fiscal year 2025.

The Company is continuing to evaluate the potential impact on future periods of the Pillar Two Framework, pending legislative adoption by additional individual countries.

The Company has a current tax examination in Germany underway for fiscal years 2012 through 2021.

COLUMBUS McKINNON CORPORATION

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The Inflation Reduction Act ("IRA") was enacted in fiscal year 2023 and includes the implementation of a new 15% minimum tax on book income of certain large corporations, an excise tax on stock buybacks, and various tax credits and incentives for energy and clean climate initiatives, among other provisions.

The Company has evaluated the IRA and its provisions did not have a material impact to the Company's consolidated financial statements for fiscal 2024 or 2025.

A significant number of other countries are expected to also implement similar legislation with varying effective dates in the future.

Pillar Two legislation became effective for the Company during fiscal 2025 and the impact to current year tax expense was immaterial.

Nature of leases

22 unchanged sentences

Finance leases 10.58 11.58

Weighted-average discount rate

Operating leases 7.05 % 6.96 %

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Total finance liabilities $ 12,267 $ 12,937

(1) Included in the operating ROU asset balance are leases held by montratec in the amount of $ 5,390,000 respectively, as of March 31, 2024.

Operating lease expense of $ 14,433,000 , $ 12,550,000 and $ 9,197,000 for the fiscal years ending March 31, 2025, 2024, and 2023, respectively, is included in Income from operations on the Consolidated Statements of Operations.

Short-term lease expense, sublease income, and variable lease expenses are no t material for the fiscal year ending March 31, 2024, 2023, and 2022, respectively.

Short-term lease expense, sublease income, and variable lease expenses are not material for the fiscal year ending March 31, 2025, 2024, and 2023, respectively.

Finance lease expense of $ 1,001,000 for both fiscal years ending March 31, 2025 and 2024, is included in Income from operations on the Consolidated Statements of Operations, and $ 566,000 and $ 597,000 and is included in Interest and debt expense for the fiscal years ending March 31, 2025 and 2024, on the Company's Consolidated Statements of Operations related to the finance lease.

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ROU assets obtained in exchange for new operating lease liabilities $ 8,173 $ 22,506 $ 31,423

ROU assets obtained in exchange for new finance lease liabilities $ — $ — $ 14,582

Business Segment Information

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The Company has one operating and reportable segment for both internal and external reporting purposes.

The Company’s Chief Executive Officer (“CEO”), who is its chief operating decision maker (“CODM”), evaluates the performance of the Company’s operating segment based on Income from operations.

The CODM reviews budget-to-actual variances and year over year performance when making operating decisions to allocate resources to the segment.

The significant segment expenses that are regularly provided on a quarterly basis to CODM are cost of products sold, research and development expenses, selling expenses, general and administrative expenses and amortization of intangibles, which are presented on the face of the Consolidated Statements of Operations and included in the calculation of Operating Income.

Financial information relating to the Company’s operations by geographic area is as follows:

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Total $ 963,027 $ 1,013,540 $ 936,240

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Net sales to external customers are attributed to geographic areas based upon the location from which the product was shipped from the Company to the customer.

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Total $ 1,738,788 $ 1,825,945 $ 1,698,455

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Year Ended March 31,

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Total $ 963,027 $ 1,013,540 $ 936,240

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Accumulated Other Comprehensive Loss

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In the period subsequent to our initial recording of the valuation allowance in fiscal 2011, increases and decreases to both the deferred tax assets associated with items in accumulated other comprehensive loss, and the valuation allowance, have been recorded as offsets to comprehensive income.

As a result of the Tax Cuts and Jobs Act (the "Act"), the Company recorded as an offsetting entry a $( 7,251,000 ) stranded tax effect in the minimum pension liability component and a $( 194,000 ) stranded tax effect in the split dollar life insurance arrangement component of other comprehensive income in fiscal 2018.

As a result of the Tax Cuts and Jobs Act (the "TCJA"), the Company recorded as an offsetting entry a $( 7,251,000 ) stranded tax effect in the minimum pension liability component and a $( 194,000 ) stranded tax effect in the split dollar life insurance arrangement component of other comprehensive income in fiscal 2018.

As a result of the pension termination in fiscal 2025, $( 7,050,000 ) of the stranded tax effect was released from accumulated other comprehensive loss and recorded as a decrease of income taxes in the consolidated statement of operations.

The resulting stranded tax effect of $ 201,000 relates to the Company's remaining U.S.

pension plan.

The stranded tax effect related to the other post retirement obligations component was not material.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

As a result of the recording of a deferred tax asset valuation allowance in fiscal 2011, the Company recorded as an offsetting entry a $ 7,605,000 stranded tax effect in the minimum pension liability component, $ 935,000 stranded tax effect in the other post retirement obligations component and a $ 747,000 stranded tax effect in the split dollar life insurance arrangement component of other comprehensive income.

With the reversal of that valuation allowance in fiscal 2013, the Company recorded the reversal of the valuation allowance as a reduction of income taxes in the consolidated statement of operations.

As a result of the pension termination in fiscal 2025, the stranded tax effect of $ 7,605,000 was released from accumulated other comprehensive loss and recorded as a decrease of income taxes in the consolidated statement of operations.

As a result of the recording of a deferred tax asset valuation allowance in fiscal 2005, the Company recorded as an offsetting entry a $ 406,000 stranded tax effect in the minimum pension liability component of other comprehensive income.

With the reversal of that valuation allowance in fiscal 2006, the Company recorded the reversal of the valuation allowance as a reduction of income taxes in the consolidated statement of operations.

The stranded tax effects described above are in accordance with ASC Topic 740, “Income Taxes” even though the impact of the act and the deferred tax asset valuation allowance described above were initially established as an adjustment to comprehensive income.

As a result of the pension termination in fiscal 2025, the stranded tax effect of $ 406,000 was released from accumulated other comprehensive loss and recorded as a decrease of income taxes in the consolidated statement of operations.

The stranded tax effects described above are in accordance with ASC Topic 740, “Income Taxes” even though the impact of the TCJA and the deferred tax asset valuation allowance described above were initially established as an adjustment to comprehensive income.

This amount will remain indefinitely as a component of accumulated other comprehensive loss.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Changes in accumulated other comprehensive income by component are as follows (in thousands):

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Ending balance net of tax $ ( 10,696 ) $ ( 32,785 ) $ 3,804 $ ( 39,677 )

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Details of amounts reclassified out of accumulated other comprehensive loss for the year ended March 31, 2025 are as follows (in thousands):

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(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost.

(See Note 13 — Pensions and Other Benefit Plans for additional details.)

(See Note 13 for additional details.)

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Details of amounts reclassified out of accumulated other comprehensive loss for the year ended March 31, 2024 are as follows (in thousands):

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(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost.

(See Note 13 — Pensions and Other Benefit Plans for additional details.)

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

(See Note 13 for additional details.)

Effects of New Accounting Pronouncements

Topics recently adopted

In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848):

Deferral of the Sunset Date of Topic 848" from December 31, 2022 to December 31, 2024, which is superseding the date from ASU No.

2020-04, "Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU is elective and is relief to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.

Optional expedients are provided for contract modification accounting under topics such as debt, leases, and derivatives.

The optional amendments are effective for all entities as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2024.

The Company modified its interest rate swap contracts during the quarter to transition from LIBOR to SOFR.

The adoption of this update did not have a material impact on the Company’s consolidated financial statements.

In October 2021, the FASB issued ASU No.

2021-08, "Business Combinations (Topic 805):

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." The ASU amends ASC 805 to require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination and is intended to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency.

The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those years, with early adoption permitted.

The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments.

The Company adopted this standard effective April 1, 2023 and applied it in the purchase accounting for montratec.

The adoption did not have a material impact on the Company's consolidated financial statements.

Recently adopted

On April 1, 2024, the Company adopted Accounting Standard Update (ASU) No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The new guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures for significant segment expenses.

The guidance was effective retrospectively for the Company as of April 1, 2024 for the annual period.

The guidance is effective retrospectively for the Company as of April 1, 2025 for the interim periods.

As a result, the Company has enhanced its segment disclosures to include the presentation of significant cost and expenses by segment.

The adoption of this ASU only affects the Company’s disclosures, with no impacts to the financial condition and results of operations.

All applicable disclosures have been included in Note 19.

Topics Not Yet Adopted

We consider the applicability and impact of all ASUs.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses.

This ASU will improve disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses commonly presented within the expense caption on the Company's Statement of Operations.

The new guidance is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027.

The Company believes the adoption of this standard will result in additional disclosures, but will not have an overall material impact to the financial statements.

In December 2023, the FASB issued ASU No.

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The ASU is intended to provide increased transparency about income tax information through improvements to income tax disclosures related to the rate reconciliation and income taxes paid.

The Company is currently assessing the impact this ASU will have on the footnotes of its annual financial statements.

The Company believes the adoption of this standard will result in some additional disclosures, but will not have an overall material impact to the financial statements.

The Company is currently assessing the impact these ASUs will have on the footnotes of its annual and interim financial statements.

The Company plans to adopt these standards in fiscal 2026 when required.

ASUs not listed were assessed and determined to be either not applicable, or had or are expected to have an immaterial impact on our financial statements and related disclosures.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data