What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-06-08 compared with 2025-05-28 · 701 added, 420 removed, 1466 unchanged (43% of the section changed)

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Audited Consolidated Financial Statements as of March 31, 2026:

Report of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm (PCAOB Firm ID No.

Consolidated Balance Sheets

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2 Accounting Principles and Practices

3 Acquisitions & Disposals

3 Acquisitions , Divestiture s & Disposals

4 Revenue & Receivables

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generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated May 28, 2025 expressed an unqualified opinion thereon.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated June 8, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

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Critical Audit Matters

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:

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:

(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 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.

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.

Valuation of Goodwill for the Precision Conveyance Reporting Unit

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The Company performed its annual goodwill impairment test over the Precision Conveyance reporting unit in the fourth quarter of 2026 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 revenue growth rates, EBITDA margins, the terminal growth rate, and the discount rate, which are affected by expectations about future market or economic conditions.

Auditing the Company’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, the terminal growth rate, and the discount rate.

These significant assumptions are forward-looking and could be affected by future economic and market 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 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.

We compared the significant assumptions used by the Company to current industry and economic trends and other factors on the significant assumptions.

We assessed the historical accuracy of the Company’s projected revenue growth rates and EBITDA margins 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 our internal valuation specialists to assist us in evaluating the Company’s valuation model and related projected revenue growth rates, EBITDA margins, the terminal growth rate, and the discount rate.

In addition, we reviewed the reconciliation of the fair value of the reporting units to the market capitalization of the Company.

Accounting for the Kito Crosby Limited Acquisition Channel Partner Customer Relationships

Description of the Matter As discussed in Note 3 of the consolidated financial statements, the Company completed its acquisition of Kito Crosby Limited during 2026 for a total purchase price of $2.8 billion.

The acquisition was accounted for under the acquisition method of accounting for business combinations.

The Company preliminarily allocated the net purchase price to the assets acquired and liabilities assumed based on their respective fair values as of the date of acquisition, including intangible assets of $1.3 billion.

Of the intangible assets acquired $1.1 billion was allocated to the channel partner customer relationships.

Auditing the Company’s accounting for the fair value of the channel partner relationships as part of the business combination was complex and highly judgmental due to the significant estimation uncertainty primarily due to the sensitivity of the fair value to certain underlying assumptions.

These significant assumptions used to estimate the fair value of the channel partner customer relationships intangible asset included projected revenue growth rates, EBITDA margins, attrition rate, and the discount rate.

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 accounting for the business combination and valuation of the acquired assets including controls over management’s review of the significant assumptions described above.

For example, we tested controls over the Company’s valuation of channel partner customer relationships, including the review of the valuation method and significant underlying assumptions used to develop such estimates.

To test the appropriateness of the valuation methodology used, our audit procedures included, among others, evaluating the significant assumptions used in the Company’s valuation calculations and evaluating the completeness and accuracy of the underlying data supporting the significant assumptions.

For example, we performed sensitivity analyses and compared significant assumptions to historical results of the acquired business and to other guideline public companies within the same industry.

We utilized our internal valuation specialists to assist us in evaluating the Company’s methodologies and significant assumptions used in the valuation of the channel partner customer relationships.

/s/ Ernst & Young LLP

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Cash and cash equivalents $ 96,562 $ 53,683

Trade accounts receivable, less allowance for doubtful accounts ($ 4,880 and $ 3,827 , respectively)

Trade accounts receivable, net of allowances for credit losses ($ 7,200 and $ 4,880 , respectively)

380,198 165,481

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Goodwill 1,408,640 710,807

Other intangibles, net 356,562 385,634

Other intangible assets, net 1,609,662 356,562

Marketable securities 10,223 10,112

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Accrued liabilities 249,009 113,907

Current portion of long-term debt and finance lease obligations 50,739 50,670

Current portion of Term loan, AR securitization facility and finance lease obligations 166,418 50,739

Total current liabilities 584,334 257,919

Term loan, AR securitization facility and finance lease obligations 420,236 479,566

Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations 2,226,589 420,236

Other non-current liabilities 525,151 178,538

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Shareholders’ equity:

Preferred stock:

1,000,000 preferred shares authorized and 800,000 preferred shares outstanding

Voting common stock:

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Accumulated other comprehensive loss ( 6,748 ) ( 21,101 )

Total shareholders’ equity 882,095 882,063

Equity attributable to shareholders of the Company 1,448,727 882,095

Noncontrolling interest ( 98 ) —

Total Equity 1,448,629 882,095

Total liabilities and shareholders’ equity $ 4,784,703 $ 1,738,788

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Research and development expenses 21,409 23,869 26,193

Net gain on sales of businesses ( 103,306 ) — —

Loss on impairment of goodwill 200,000 — —

Amortization of intangibles 48,757 29,946 29,396

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Interest and debt expense 61,145 32,426 37,957

Cost of debt refinancing 24,185 — —

Investment (income) loss, net ( 2,182 ) ( 1,302 ) ( 1,759 )

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Other (income) expense, net ( 1,525 ) 25,775 7,597

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

Income (Loss) before income tax expense ( 206,507 ) ( 5,505 ) 61,527

Income tax (benefit) expense 22,930 ( 367 ) 14,902

Net income (loss) $ ( 229,437 ) $ ( 5,138 ) $ 46,625

Net loss attributable to noncontrolling interest 98 — —

Net income (loss) attributable to the Company $ ( 229,535 ) $ ( 5,138 ) $ 46,625

Average basic shares outstanding 28,714 28,738 28,728

Average diluted shares outstanding 28,714 28,738 29,026

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

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

Basic income (loss) per common share $ ( 7.40 ) $ ( 0.18 ) $ 1.62

Diluted income (loss) per common share $ ( 7.40 ) $ ( 0.18 ) $ 1.61

Dividends declared per common share $ 0.28 $ 0.28 $ 0.28

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(In thousands)

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

Net income (loss) attributable to the Company $ ( 229,535 ) $ ( 5,138 ) $ 46,625

Other comprehensive income (loss), net of tax:

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($ 0.01 par value)

Treasury Stock Additional

Preferred Stock Treasury Stock Additional

Capital Retained

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Comprehensive

Shareholders’

Loss CMCO Shareholders' equity balance Noncontrolling Interests Total Equity Balance

Balance at April 1, 2023

$ 286 $ — $ ( 1,001 ) $ 515,797 $ 356,758 $ ( 38,043 ) $ 833,797 $ 833,797

Net income 2023

— — — 48,429 — 48,429

Net income (loss) — — — — 46,625 — 46,625 — 46,625

Dividends declared — — — — ( 8,055 ) — ( 8,055 ) — ( 8,055 )

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Stock compensation expense — — — 10,865 — — 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 $ — $ 882,063

Net income 2024

— — — 46,625 — 46,625

Net income (loss) — — — — ( 5,138 ) — ( 5,138 ) — ( 5,138 )

Dividends declared — — — — ( 8,030 ) — ( 8,030 ) — ( 8,030 )

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

Treasury stock purchased, ( 292,650 ) shares

( 1 ) — ( 9,999 ) — — — ( 10,000 ) — ( 10,000 )

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

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Balance, March 31, 2025 $ 286 $ — $ ( 11,000 ) $ 531,750 $ 382,160 $ ( 21,101 ) $ 882,095 $ — $ 882,095

Net loss 2025

— — — ( 5,138 ) — ( 5,138 )

Dividends declared — — — ( 8,030 ) — ( 8,030 )

Net income (loss) — — — — ( 229,437 ) — ( 229,437 ) — ( 229,437 )

Net loss attributable to noncontrolling interest — — — — — — — ( 98 ) ( 98 )

Common dividends declared — — — — ( 8,049 ) — ( 8,049 ) — ( 8,049 )

Change in foreign currency translation adjustment — — — — — 12,343 12,343 — 12,343

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Stock compensation expense — — — 8,545 — — 8,545 — 8,545

Treasury stock purchased, ( 292,650 ) shares

Preferred Shares purchased, 800,000 shares

— 789,845 — — — — 789,845 — 789,845

Preferred dividends — — — — ( 8,867 ) — ( 8,867 ) — ( 8,867 )

Restricted stock units released, 127,493 shares, net of shares withheld for minimum statutory tax obligation

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(In thousands)

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

Net income (loss) attributable to the Company $ ( 229,535 ) $ ( 5,138 ) $ 46,625

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

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Deferred income taxes and related valuation allowance ( 10,711 ) ( 20,256 ) ( 15,285 )

Net gain from sale of business ( 103,306 ) — —

Net loss (gain) on sale of real estate, investments and other ( 2,551 ) ( 972 ) ( 1,431 )

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Loss (gain) on hedging instruments 1,720 ( 382 ) ( 1,366 )

Cost of debt repricing — 958 —

Impairment of Goodwill - Precision Conveyance 200,000 — —

Cost of debt refinancing and repricing 24,185 — 958

Impairment of operating lease — 3,911 —

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

Gain on sale of building (See Note 3) — — ( 232 )

Non-cash lease expense 9,978 10,105 9,735

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Capital expenditures ( 17,859 ) ( 21,411 ) ( 24,813 )

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

Proceeds from sale of buildings, net of transaction costs 3,257 — —

Dividend received from equity method investment — — 144

Proceeds from sale of fixed assets — 139 —

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

Net proceeds from the sales of businesses 183,976 —

Purchase of businesses, net of cash and restricted cash acquired (See Note 3) ( 2,627,389 ) — ( 108,145 )

Net cash provided by (used for) investing activities ( 2,457,654 ) ( 19,891 ) ( 133,364 )

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Proceeds from issuance of common stock 30 371 1,600

Proceeds from issuance of preferred stock, net of expenses 780,978 — —

Fees paid for debt repricing — ( 169 ) ( 958 )

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Cash, cash equivalents, and restricted cash at end of year $ 97,023 $ 53,933 $ 114,376

COLUMBUS McKINNON CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

Year ended March 31,

2026 2025 2024

Supplementary cash flows data:

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Columbus McKinnon Corporation (the "Company") is a leading worldwide designer, manufacturer, and marketer of intelligent motion solutions that efficiently and ergonomically move, lift, position, and secure materials.

Key products include hoists, crane components, precision conveyor systems, accumulation tables, rigging tools, light rail workstations, and digital power and motion control systems.

Key products include hoists, crane components, precision conveyor systems, accumulation tables, rigging, lifting and securement hardware, light rail workstations, and digital power and motion control systems.

The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how.

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Advertising expenses were $ 4,281,000 , $ 3,629,000 , and $ 2,659,000 in fiscal 2026, 2025, and 2024, respectively.

Business Combinations

The Company accounts for business combinations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) ASC 805, Business Combinations.

The results of operations of acquired businesses are included in the Company’s consolidated financial statements from the respective dates of acquisition.

The Company measures the identifiable assets acquired and liabilities assumed as of the acquisition date.

Any excess of the purchase consideration over the fair value of the net identifiable assets acquired is recorded as goodwill.

Cash and Cash Equivalents

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Concentrations of Labor

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

collective bargaining agreement which expire in May 2027.

Approximately 8.5 % of the Company’s employees are represented by six U.S.

collective bargaining agreements with varying expiration dates starting in February 2027 through December 2028.

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

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These consolidated financial statements include the accounts of the Company and its global subsidiaries.

all significant intercompany accounts and transactions have been eliminated.

The Company's consolidation policy requires equity investments that the Company exercises significant influence over, but does not control the investee and are not the primary beneficiary of the investee’s activities, to be accounted for using the equity method.

Investments through which the Company is not able to exercise significant influence over the investee and which the Company does not have readily determinable fair values are accounted for under the cost method.

All intercompany transactions and balances are eliminated in consolidation.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Equity Method Investment

The Company has an investment 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, whose principal activity is to manufacture various electrical overhead traveling cranes.

This investment represents a minority ownership interest that is accounted for under the equity method of accounting since the Company has significant influence over the investee.

As a result, the Company records its portion of the gains and losses incurred by this entity in Investment (income) loss in the Consolidated Statements of Operations.

This investment represents a noncontrolling ownership interest that is accounted for under the equity method of accounting since the Company has significant influence over the investee.

As a result, the Company records its portion of the gains and losses incurred by this entity in Investment income, net in the Consolidated Statements of Operations.

Foreign Currency Translations

The Company translates for eign currency financial statements as described in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 830, “Foreign Currency Matters.” Under this me thod, all items of income and expense are translated to U.S.

The Company translates for eign currency financial statements as described in ASC 830, “Foreign Currency Matters.” Under this me thod, all items of income and expense are translated to U.S.

dollars at average exchange rates during the year.

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dollars at the year-end exchange rate.

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

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

in the shareholders’ equity section of the balance sheet.

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

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

Gains and losses from foreign currency transactions are reported in foreign currency exchange loss (gain).

Goodwill is not amortized but is tested for impairment at least annually, or more frequently if indicators of impairment exist, in accordance with the provisions of ASC Topic 350-20-35-1.

Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value.

Goodwill is not amortized but is tested for impairment at least annually, or more frequently if indicators of impairment exist, in accordance with the provisions of ASC Topic 350, “Intangibles - Goodwill and Other.” Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value.

The fair value of a reporting unit is determined using a discounted cash flow methodology.

The Company’s reporting units are determined based upon whether discrete financial information is available and reviewed regularly, whether those units constitute a business, and the extent of economic similarities and interdependencies between those reporting units for purposes of aggregation.

The Company’s reporting units identified under ASC Topic 350-20-35-33 are at the component level, or one level below the reporting segment level as defined under ASC Topic 280-10-50-10 “Segment Reporting – Disclosure.” As of March 31, 2025, the Company’s one segment is subdivided into three reporting units.

The Company’s reporting units identified under ASC 350 are at the component level, or one level below the reporting segment level as defined under ASC 280 “Segment Reporting – Disclosure.” As of March 31, 2026, the Company’s one segment consists of four reporting units.

An impairment charge is recorded if the carrying value is greater than the reporting unit's fair value.

When the Company evaluates the potential for goodwill impairment, it assesses a range of qualitative factors including, but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for its products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and overall financial performance.

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, the Company uses the discounted cash flow method to estimate fair value.

The Company may first elect to perform a qualitative evaluation to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.

The qualitative assessment considers, among other factors, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or strategy, and other entity specific events.

If, based on the qualitative assessment, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative assessment, the Company performs a quantitative impairment test.

The quantitative test compares the estimated fair value of our reporting units with the carrying amount, including goodwill.

The Company recognizes an impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value.

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

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 discount rate.

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.

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 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.

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

Refer to Note 5 for valuation techniques and significant inputs and Note 9 for further discussion of goodwill and intangibles.and intangible assets.

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.

Based on results of the quantitative and qualitative impairment assessments for the reporting units, the Company determined the fair value for one of its reporting units was below book value as of March 31, 2026.

As a result, an impairment charge was recorded in fiscal 2026.

Refer to Note 5 for valuation techniques and significant inputs and Note 9 for further discussion of goodwill and intangible assets.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Impairment of Long-Lived Assets

The Company assesses impairment of its long-lived assets in accordance with the provisions of ASC Topic 360 “Property, Plant, and Equipment.” This statement requires long-lived assets, such as property and equipment and purchased intangibles subject to amortization, to be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable.

The Company assesses impairment of its long-lived assets in accordance with the provisions of ASC 360 “Property, Plant, and Equipment.” This statement requires long-lived assets, such as property and equipment and purchased intangibles subject to amortization, to be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable.

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group over its remaining useful life.

If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized equal to the amount by which the carrying amount of the asset group exceeds the fair value of the asset group.

The fair values are determined in accordance with ASC 820.

The fair values are determined in accordance with ASC 820 “Fair Value Measurement and Disclosures.”

In assessing long-lived assets for an impairment loss, assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities.

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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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

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

The Company considers projected future undiscounted cash 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.

In determining fair value of long-lived assets, management uses management estimates, discounted cash flow calculations, and appraisals where necessary.

In determining fair value of long-lived assets, management uses estimates, discounted cash flow calculations, and appraisals where necessary.

There were no indicators of impairment related to long-lived assets in the current year.

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The estimated useful lives for our intangible assets range from 1 to 25 years.

Similar to goodwill, indefinite-lived intangible assets (including trademarks on our acquisitions) are tested for impairment on an annual basis.

When the Company evaluates the potential for impairment of intangible assets, it assesses a range of qualitative factors including, but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for its products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and overall financial performance.

If, after completing this assessment, it is determined that it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying value, we conclude that the indefinite-lived intangible asset is not impaired.

If, after completing this assessment, it is determined that it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value or if economic or other business factors indicate that the fair value of our indefinite-lived intangible assets may have declined since our last quantitative test, the Company performs a new quantitative test.

The methodology used to value trademarks is the relief from royalty method.

We further test our indefinite-lived intangible asset balance of $ 47,554,000 consisting of trademarks from certain acquisitions.

Similar to goodwill, the Company may first elect to perform a qualitative evaluation to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.

For its annual impairment test, the Company elected to bypass the qualitative assessment and performed a quantitative impairment test.

The methodology used to quantitatively value trademarks is the relief from royalty method.

The recorded book value of these trademarks in excess of the calculated fair value triggers an impairment.

The key estimate used in this calculation consists of an overall royalty rate applied to the sales covered by the trademark.

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

After performing a quantitative assessment as of February 28, 2026, we determined that the trademarks were not impaired.

Inventories are valued at the lower of cost and net realizable value.

Cost of approximately 11 % of inventories at March 31, 2026 and 41 % at March 31, 2025 have been determined using the LIFO (last-in, first-out) method.

The primary reduction of this percentage is due to the divestiture of our U.S.

Power Chain Hoist and Chain Manufacturing Operations as well as the acquisition of Kito Crosby .

Costs of other inventories have been determined using the FIFO (first-in, first-out) or average cost method.

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Costs in inventory include components for direct labor and overhead costs.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Marketable Securities

The Company’s marketable securities, which consist of equity and fixed income securities, are recorded at fair value.

Under ASU 2016-01 all equity investments (including certain fixed income securities) in unconsolidated entities are measured at fair value through earnings.

Therefore, gains and losses on marketable securities are realized within Investment (income) loss on the Consolidated Statements of Operations.

Under ASC 321 “Investments—Equity Securities” all equity investments (including certain fixed income securities) in unconsolidated entities are measured at fair value through earnings.

Therefore, gains and losses on marketable securities are realized within Investment (income) loss, net on the Consolidated Statements of Operations.

Estimated fair value is based on published trading values at the balance sheet dates.

The cost of securities sold is based on the specific identification method.

Interest and dividend income are also included in Investment (income) loss on the Consolidated Statements of Operations.

Interest and dividend income are also included in Investment (income) loss, net on the Consolidated Statements of Operations.

The marketable securities are carried as long-term assets since they are held for the settlement of the Company’s general and products liability insurance claims filed through CM Insurance Company, Inc., a wholly owned captive insurance subsidiary.

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

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Property, Plant, and Equipment

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Research and Development

Consistent with prior periods, the Company continues to account for research and development expenses in accordance with the provisions of ASC 730 and are expensed as incurred.

Consistent with prior periods, the Company continues to account for research and development expenses in accordance with the provisions of ASC 730 “Research and Development” and are expensed as incurred.

Revenue Recognition, Accounts Receivable, and Concentration of Credit Risk

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Accounts receivables are reported at net realizable value and do not accrue interest.

The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends, and other factors.

Accounts receivable are charged against the allowance for doubtful accounts once all collection efforts have been exhausted.

The Company establishes an allowance for credit losses based upon factors surrounding the credit risk of specific customers, historical trends, and other factors.

Accounts receivable are charged against the allowance for credit losses once all collection efforts have been exhausted.

The Company does not routinely permit customers to return product.

However, sales returns are permitted in specific situations and typically include a restocking charge or the purchase of additional product.

As a result of ASU No.

2016-13, “Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments," effective in fiscal 2021, the Company has updated its existing allowance for doubtful accounts policy to comply with the new standard.

Shipping and Handling Costs

Shipping and handling costs are a component of cost of products sold.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Stock-Based Compensation

The Company records stock-based compensation in accordance with ASC Topic 718, “Compensation – Stock Compensation.” This standard requires all equity-based payments to employees, including grants of employee stock options, to be recognized in the Consolidated Statements of Operations based on the grant date fair value of the award.

The Company records stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation.” This standard requires all equity-based payments to employees, including grants of employee stock options, to be recognized in the Consolidated Statements of Operations based on the grant date fair value of the award.

Stock compensation expense is included in Cost of products sold, Selling, and General and administrative expense depending on the nature of the service of the employee receiving the award.

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See Note 15 for further discussion of stock-based compensation.

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

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.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

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

The Company records leases in accordance with ASC 842, “Leases” Refer to Note 18 for further details.

Use of Estimates

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As noted in Note 4 to the financial statements, the Company offers standard warranties which are typically 12 months in duration for standard products and 24 to 36 months for custom engineered products.

These are assurance-type warranties that do not qualify as separate performance obligations under ASC 606.

The Company estimates the costs that may be incurred under its standard warranties, based largely upon actual warranty repair costs history, and records a liability in the amount of such costs in the month that revenue is recognized.

These are assurance-type warranties that do not qualify as separate performance obligations under ASC 606, “Revenue from Contracts with Customers.” The Company estimates the costs that may be incurred under its standard warranties, based largely upon actual warranty repair costs history, and records a liability in the amount of such costs in the month that revenue is recognized.

The resulting accrual balance is reviewed during the year.

Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rate of warranty claims, and cost per claim.

The warranty liabilities are included in Accrued liabilities on the Consolidated Balance Sheets.

Changes in the Company’s product warranty accrual are as follows:

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Warranties settled ( 1,238 ) ( 1,074 )

Warranty liabilities acquired as part of the Kito Crosby Acquisition 3,080 —

Foreign currency translation 23 12

Balance at end of year $ 5,023 $ 1,692

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 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 .

Utilizing the Accordion feature under the Company's existing Term Loan B, the Company borrowed $ 75,000,000 and another $ 45,000,000 was borrowed through a new credit agreement secured by the Company's U.S.

accounts receivable balances.

Refer to Note 12 for additional details on the Company's debt agreements.

montratec is a leading automation solutions company that designs and develops intelligent automation and transport systems for interlinking industrial production and logistics processes.

montratec product offerings complement the Company's previous acquisitions of both Dorner Mfg.

("Dorner") and Garvey Corporation ("Garvey"), and furthers the Company's shift to intelligent motion and serves as a platform to expand capabilities in advanced, higher technology automation solutions.

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 $ 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 .

The weighted average life of the acquired identifiable intangible assets subject to amortization was estimated at 14 years at the time of acquisition.

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

Acquisitions, Divestitures, & Disposals

On February 3, 2026, the Company completed its acquisition and acquired 100 % of the equity of ("Kito Crosby") from funds associated with the global investment firm Kohlberg Kravis Roberts & Co.

(“KKR”) in an all-cash transaction valued at $ 2,811,907,000 .

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

The Kito Crosby acquisition expands the Company’s scale in material handling solutions and strengthens its presence in attractive verticals and target geographies.

The Company accounted for the acquisition under the acquisition method of accounting for business combinations.

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

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

The results of Kito Crosby included in the Company’s consolidated financial statements from the date of acquisition are Net sales and Loss from operations of $ 188,089,000 and $ 21,500,000 for the period from February 3, 2026 through March 31, 2026, respectively.

Kito Crosby’s loss from operations for the period includes acquisition-related inventory amortization of $ 36,798,000 , which has been included in Cost of products sold.

The Kito Crosby's results also include $ 1,043,000 of integration-related costs, of which $ 90,000 has been recorded as part of Cost of products sold, $ 58,000 as a part of Selling expenses and $ 895,000 in General and administrative expenses.

Including the costs above, the Company incurred acquisition integration and deal expenses in the amount of $ 65,650,000 for the period ended March 31, 2026, in the Consolidated Statement of Operations, of which $ 194,000 has been recorded as part of Cost of products sold, $ 74,000 as part of Selling expenses and $ 65,382,000 as part of General and administrative expenses.

The Company funded the Kito Crosby acquisition through borrowings of $ 900,000,000 in senior secured bonds, $ 1,650,000,000 in financing from a Term Loan B, and $ 800,000,000 of Series A Cumulative Convertible Participating Preferred Shares of the Company, par value $ 1.00 per share (the “Preferred Shares”) to CD&R XII Keystone Holdings, L.P., a Cayman Islands exempted limited partnership (the “CD&R Investor”).

Additionally the Company refinanced its prior revolving credit facility increasing it to $ 500,000,000 , of which $ 25,000,000 was outstanding as of March 31, 2026.

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

Terms of the Preferred Shares include a 7 % coupon, payable in cash or payment-in-kind at the Company’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.

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

The Company has applied the acquisition method of accounting in accordance with ASC 805 and recognized assets acquired and liabilities assumed at their fair value as of the date of acquisition with the excess of consideration over the fair value of net assets acquired recorded as goodwill.

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

In determining the fair value of amounts related to the Kito Crosby acquisition, the Company utilized various forms of the income, cost and market approaches depending on the asset or liability being valued.

The estimation of fair value required judgment related to projected revenue growth rates, EBITDA margins, discount rates, customer attrition rates, market comparisons and other factors.

The Company is in the process of evaluating the preliminary purchase price allocation for the Kito Crosby Acquisition, including the valuation of identifiable intangible assets, goodwill, property, plant and equipment, tangible assets acquired, right-of-use lease assets and lease liabilities, asbestos and product liability obligations, and income taxes.

The Company has estimated the preliminary fair values of assets acquired and liabilities assumed based on information currently available and will continue to adjust all of those estimates as additional information pertaining to events or circumstances present at the acquisition date becomes available during the measurement period.

The excess consideration of $ 931,874,000 has been preliminarily recorded as goodwill for the Kito Crosby reporting unit.

The identifiable intangible assets acquired include customer relationships of $ 1,171,100,000 , of which $ 1,100,200,000 relates to channel partner relationships, and trade names of $ 118,900,000 .

The weighted average life of the acquired identifiable intangible assets subject to amortization was estimated at 12.8 years at the time of acquisition.

Goodwill generated as a result of the Kito Crosby Acquisition is not expected to be deductible for tax purposes.

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

Cash $ 184,307

Working capital 355,919

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Intangible assets 1,290,000

Contingent liability (see above) ( 6,680 )

Other assets 81,152

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Total $ 2,811,907

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.

See Note 5 for assumptions used in determining the fair values of the intangible assets acquired.

Divestiture of U.S.

Power Chain Hoist and Chain Manufacturing Operations

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

On January 14, 2026, the Company entered into an equity purchase agreement (the “Divestiture Agreement”) with Star Hoist Intermediate, LLC (“Star Hoist”), whereby the Company agreed to sell its U.S.

power chain hoist and chain manufacturing operations based out of facilities located in Damascus, Virginia and Lexington, Tennessee and certain other assets (the “Divestiture Business”) to Star Hoist (the “Divestiture”).

The Divestiture was completed on March 4, 2026, pursuant to the terms of the Divestiture Agreement.

The disposal group primarily included major classes of assets and liabilities, including property, plant and equipment, inventory, and related liabilities.

Immediately prior to the completion of the Divestiture, the carrying amounts of these assets and liabilities were approximately $ 35,211,000 and $ 5,792,000 , respectively, excluding an allocation of $ 51,252,000 of Rest of Products reporting unit goodwill to the Divestiture Business, and such assets and liabilities were derecognized upon closing.

In assessing the amount of goodwill to allocate to the Divestiture, the Company determined the fair value of the Rest of Products reporting unit and the relative fair value of the Divestiture to the fair value of the Rest of Products reporting unit.

The fair value for the Company’s Rest of Products reporting unit 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.

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, terminal growth rates, and cash flows based on internal forecasts and the discount rate.

The Divestiture did not have a material adverse effect on the Company’s financial position.

The Company recorded a pre-tax gain on sale of approximately $ 103,306,000 during the twelve months ended March 31, 2026 and reflected the related cash proceeds of approximately $ 183,976,000 , net of customary closing adjustments and deal costs during the period.

No impairment related to the Divestiture Business was recognized through March 31, 2026.

The Company evaluated whether the Divestiture represented a strategic shift that has (or will have) a major effect on its operations and financial results for purposes of discontinued operations accounting under ASC 205-20 and concluded that the Divestiture did not qualify for presentation as discontinued operations.

Accordingly, the results of the Divestiture Business are presented within continuing operations and the related gain on sale is presented within Net gain on sales of businesses in the Consolidated Statements of Operations, and the related cash proceeds are presented within investing activities in the Consolidated Statements of Cash Flows.

In connection with the Divestiture, the Company entered into transition services arrangements with Star Hoist under which the Company will provide services for a period of up to six months with an option for extension;

the Company evaluated these arrangements, including any continuing involvement, and concluded they were not material to the Company.

The following unaudited pro forma financial information presents the combined results of operations as if the acquisition of Kito Crosby and Divestiture had occurred as of April 1, 2024.

The pro forma information includes certain adjustments, including depreciation and amortization expense, interest expense, and certain other adjustments, together with related income tax effects.

The pro forma amounts may not be indicative of the results that actually would have been achieved had the acquisition of Kito Crosby occurred as of April 1, 2024 and are not necessarily indicative of future results of the combined companies (in thousands):

Net sales $ 2,035,000 $ 1,911,000

Net (loss) $ ( 292,000 ) $ ( 366,000 )

Fiscal 2026 and fiscal 2025 net loss presented above includes deal related costs, inventory "step up" amortization expenses, goodwill impairment costs and debt refinancing costs which would not be expected to recur in future periods.

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.

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,

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

2025, in the 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.

2 unchanged sentences

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.

During the third quarter of 2026, the Company sold two of its previously closed manufacturing facilities in Mexico and Germany.

The Company received a cash payment in the amount of $ 2,155,000 for the German facility, and a cash payment in the amount of $ 1,102,000 for the sale of the Mexican facility.

During the twelve months ended March 31, 2026, the sale of these manufacturing facilities resulted in a gain of $ 913,000 , net of direct sale expenses and is recorded in Cost of products sold.

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)

(tabular amounts in thousands, except share data)

1) Identifying contracts with customers

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

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

4) Allocate the transaction price to the performance obligations in the contract

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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)

(tabular amounts in thousands, except share data)

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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Therefore, revenue is recognized at a point in time when the contract is complete.

For custom engineered products contracts that contain an enforceable right to payment (including reasonable profit margin) the Company satisfies the performance obligation over time and recognizes revenue based on the extent of progress towards completion of the performance obligation.

For custom engineered products contracts that contain an

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

enforceable right to payment (including reasonable profit margin) the Company satisfies the performance obligation over time and recognizes revenue based on the extent of progress towards completion of the performance obligation.

The cost-to-cost measure of progress is an appropriate measure of progress toward satisfaction of performance obligations as this measure most accurately depicts the progress of work performed and transfer of control to the customers.

6 unchanged sentences

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

7 unchanged sentences

Beginning balance $ 15,631 $ 16,588

Additional customer advances received 55,183 68,040

Revenue recognized from customer advances included in the beginning balance ( 15,631 ) ( 16,588 )

Other revenue recognized from customer advances ( 39,588 ) ( 55,311 )

Customer advances recorded from acquisition — 3,866

Customer advances received 94,358 55,183

Revenue recognized from customer advances ( 74,404 ) ( 39,588 )

Customer advances acquired with the Kito Crosby acquisition 4,386 —

Other (1) 708 36

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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

As of March 31, 2026, the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) was approximately $ 34,471,000 .

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

We expect to recognize approximately 62 % of these sales over the next twelve months , and we expect to recognize 93 % of the remaining amount to sales in the next 24 months.

Disaggregated revenue

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

In accordance with ASC 606, the Company is required to disaggregate revenue into categories that depict how economic factors affect the nature, amount, timing and uncertainty of revenue and cash flows.

8 unchanged sentences

Total $ 1,193,451 $ 963,027 $ 1,013,540

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Industrial products include:

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Accounts Receivable

The Company records credit losses in accordance with “Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”).

Under ASU 2016-13, the Company is required to remeasure expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts.

In addition to these factors, the Company establishes an allowance for doubtful accounts based upon the credit risk of specific customers, historical trends, and other factors.

Accounts receivable are charged against the allowance for doubtful accounts once all collection efforts have been exhausted.

The Company records credit losses in accordance with ASC 326.

Under ASC 326, the Company is required to remeasure expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts.

In addition to these factors, the Company establishes an allowance for credit losses based upon the credit risk of specific customers, historical trends, and other factors.

Accounts receivable are charged against the allowance for credit losses once all collection efforts have been exhausted.

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.

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):

Allowance for doubtful accounts 2025 2024

The following table illustrates the balance and related activity for the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to be collected in the year ending March 31, 2026 and March 31, 2025 (in thousands):

Allowance for expected credit losses 2026 2025

April 1, beginning balance $ 4,880 $ 3,827

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Less uncollectible accounts written off, net of recoveries ( 2,573 ) ( 2,582 )

Allowance recorded from acquisition — 64

Fair value adjustment for receivables acquired with Kito Crosby 2,009 —

Other (1) 170 ( 6 )

March 31, ending balance $ 7,200 $ 4,880

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

(1) Other includes the impact of foreign currency translation

Fair Value Measurements

ASC Topic 820 “Fair Value Measurements and Disclosures” establishes the standards for reporting financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value on a recurring basis (at least annually).

ASC 820 establishes the standards for reporting financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value on a recurring basis (at least annually).

Under these standards, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e.

the "exit price") in an orderly transaction between market participants at the measurement date.

ASC Topic 820-10-35-37 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

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

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

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 information available in the circumstances.

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

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Term loan $ ( 1,455,169 ) $ — $ ( 1,455,169 ) $ —

Senior secured notes $ ( 897,750 ) $ — $ ( 897,750 ) $ —

AR Securitization facility $ ( 53,400 ) $ — $ ( 53,400 ) $ —

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

At March 31, 2025, the Term Loan and Amended and Restated Revolving Credit Facility have been recorded at carrying value which approximates fair value.

In fiscal 2024, the Company also 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").

At March 31, 2026, the 2026 Term Loan B, Senior secured notes and 2026 Revolving Credit Facility have been recorded at carrying value which approximates fair value.

The AR Securitization Facility has been recorded at its carrying value of $ 53,400,000 at March 31, 2026, which approximates fair value.

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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.

Goodwill Impairment Test

As described in Note 9, the fair values of the net assets of the Company’s Rest of Products, Precision Conveyance, and Linear Motion reporting units were tested in fiscal 2026.

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

The fiscal 2026 and 2025 goodwill impairment tests consisted of determining the fair value of the 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 value of the Precision Conveyor reporting unit, the Company used significant estimates and judgmental factors.

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

The estimates used are disclosed below for both the fiscal 2026 and 2025 tests:

Precision Conveyance Rest of Products Linear Motion

2026 2025 2026 2026

Compound annual growth rate 5.1 % 9.7 % 3.3 % 5.3 %

Terminal value growth rate 3.5 % 3.0 %

Terminal growth rate 3.6 % 3.5 % 3.6 % 3.5 %

Discount rate 11.8 % 12.0 % 10.7 % 12.5 %

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.

Kito Crosby Acquisition

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

The estimated fair values allocated to the assets acquired and liabilities assumed relied upon fair value measurements based primarily on Level 3 inputs.

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The valuation techniques relied on a number of inputs which included the cost and condition of property, plant, and equipment and forecasted net sales and income.

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 %.

Significant valuation inputs included an attrition rate of 5.0 % for customer relationships, an estimated weighted average royalty rate of 1.9 % for trademark and trade names, and a weighted average cost of capital of 14.0 %.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Inventories consisted of the following:

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Net inventories $ 609,030 $ 198,598

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

The acquisition of Kito Crosby contributed $ 421,318,000 to the increase in FIFO-basis inventory since March 31, 2025.

During fiscal 2026, the Company divested its U.S.

Power Chain Hoist and Chain Manufacturing Operations.

Net inventories for the two divested businesses were $ 15,033,000 at March 31, 2026.

Additional information regarding both transactions is provided within Note 3 .

There were LIFO liquidations resulting in $ 1,196,000 and $ 37,000 of additional income in fiscal 2026 and 2025, respectively.

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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 loss of $ 228,000 , a gain of $ 317,000 , and loss of $ 296,000 in fiscal years 2025, 2024, and 2023, respectively.

The impact on earnings for unrealized gains and losses was a gain of $ 294,000 , a loss of $ 228,000 , and gain of $ 317,000 in fiscal years 2026, 2025, and 2024, respectively.

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

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

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.

Net realized gains related to sales of marketable securities were $ 178,000 in fiscal 2026, $ 275,000 in fiscal 2025, and $ 212,000 in fiscal 2024, and are included in Investment (income) loss, net 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.

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The investment value was increased for the Company's ownership percentage of income earned by EMC in the amount of $ 1,159,000 and $ 933,000 in the twelve months ended March 31, 2026, and March 31, 2025, respectively, and is recorded in Investment (income) loss, net on the Consolidated Statement of Operations.

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.

Additionally, the investment value increased in the amount of $ 302,000 and $ 8,000 due to the effect of currency translation in the twelve months ended March 31, 2026 and March 31, 2025, respectively.

In the twelve months ended March 31, 2026, EMC distributed cash dividends which the

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

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 $ 514,000 , 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.

In the twelve months ended March 31, 2026, dividends are included in operating activities on the Consolidated Statements of Cash Flows in the amount of $ 514,000 as the distribution does not exceed cumulative equity in earnings, under the cumulative earnings approach.

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

The March 31, 2026 and 2025 trade accounts receivable balances due from EMC are $ 10,690,000 and $ 4,250,000 , respectively, and are comprised of amounts due for the sale of goods and services in the ordinary course of business.

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Net property, plant, and equipment $ 408,507 $ 106,164

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

The acquisition of Kito Crosby contributed $ 318,034,000 to the increase in net property, plant, and equipment since March 31, 2025.

Depreciation expense was $ 28,281,000 , $ 18,241,000 , and $ 16,549,000 for the years ended March 31, 2026, 2025, and 2024, respectively.

The increase in depreciation expense in fiscal 2026 is the result of the Kito Crosby Acquisition and related property, plant, and equipment acquired.

Gross property, plant, and equipment includes capitalized software costs of $ 82,433,000 at March 31, 2026, and $ 42,927,000 at March 31, 2025.

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Goodwill and Intangible Assets

The Company has three reporting units as of March 31, 2025 and March 31, 2024.

The Company has four and three reporting units as of March 31, 2026 and March 31, 2025, respectively.

The Linear Motion Products reporting unit (which designs, manufactures, and sources mechanical and electromechanical actuators and rotary unions) had goodwill of $ 9,699,000 at March 31, 2026 and 2025, respectively.

The Rest of Products reporting unit (representing the hoist, chain, and forgings, digital power control systems, and distribution businesses) had goodwill of $ 265,708,000 and $ 305,110,000 at March 31, 2026 and 2025, respectively.

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.

The Precision Conveyance reporting unit (which represents high-precision conveying systems) had goodwill of $ 201,359,000 and $ 395,998,000 at March 31, 2026 and March 31, 2025, respectively.

In February of fiscal 2026, the Company completed its acquisition of Kito Crosby as described in Note 3.

The goodwill from the acquisition has been preliminarily calculated to be $ 931,874,000 at March 31, 2026.

Given its proximity to the Company's goodwill measurement date of February 28, 2026, the Company has separately evaluated the goodwill of Kito Crosby as part of its opening balance sheet procedures and performed a qualitative assessment as of the annual assessment date.

In fiscal 2027 the Company will reassess its reporting units as the integration of Kito Crosby progresses.

Fiscal 2026 Annual Goodwill and Intangible Asset Impairment Test

When we evaluate the potential for goodwill impairment, we assess a range of qualitative factors including, but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for our products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and overall financial performance.

The Company may first elect to perform a qualitative evaluation to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount.

If, based on the qualitative assessment, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if the Company elects to

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

bypass the qualitative assessment, the Company performs a quantitative impairment test.

The quantitative test compares the estimated fair value of our reporting units with the carrying amount, including goodwill.

The Company recognizes an impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value.

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

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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.

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.

In accordance with ASC Topic 350-30-35, indefinite-lived intangible assets that are not subject to amortization shall be tested for impairment annually or more frequently if events or circumstances indicate that it is more likely than not that an asset is impaired.

Similar to goodwill, we first assess various qualitative factors in the analysis.

The methodology used to value trademarks is the relief from royalty method.

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

For its annual goodwill impairment test, the Company elected to bypass the qualitative assessment and performed a quantitative impairment test for its Linear Motion, Rest of Products, and Precision Conveyance reporting units, comparing the carrying amount of each reporting unit with its estimated fair value.

While the individual reporting units initially had fair values in excess of their book value, the reduction in the Company's stock price and market capitalization resulted in the aggregate equity value of the combined company exceeding its market capitalization at its annual measurement date.

The Company reevaluated the fair value of its reporting units and this resulted in a partial impairment of the goodwill in the amount of $ 200,000,000 for the Precision Conveyance reporting unit.

In accordance with ASC 350, indefinite-lived intangible assets that are not subject to amortization shall be tested for impairment annually or more frequently if events or circumstances indicate that it is more likely than not that an asset is impaired.

For its annual impairment test, the Company elected to bypass the qualitative assessment and performed a quantitative impairment test.

The methodology used to quantitatively value trademarks is the relief from royalty method.

The recorded book value of these trademarks in excess of the calculated fair value triggers an impairment.

The key estimate used in this calculation consists of an overall royalty rate applied to the sales covered by the trademark.

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

After performing a quantitative assessment as of February 28, 2026, we determined that the trademarks were not impaired.

Goodwill Recognized in Connection with Kito Crosby Acquisition

During the year ended March 31, 2026, the Company completed the acquisition of Kito Crosby.

The transaction has preliminarily resulted in the recognition of goodwill of $ 931,874,000 .

Additional information regarding this acquisition is provided within Note 3 .

Goodwill Derecognized in Connection with Divestiture of U.S.

Power Chain Hoist and Chain Manufacturing Operations

During the year ended March 31, 2026, the Company completed the divestiture of its U.S.

Power Chain Hoist and Chain Manufacturing Operations.

In accordance with ASC 350, the Company allocated $ 51,252,000 of goodwill to the divestiture based on the relative fair values of the divested businesses to the Rest of Products reporting unit as of the measurement date.

The allocated goodwill was derecognized upon closing and was included in the determination of the gain on the sale.

No goodwill impairment was recognized prior to the divestiture.

Additional information regarding this transaction is provided within Note 3 .

A summary of changes in goodwill during the years ended March 31, 2026 and 2025 is as follows:

COLUMBUS McKINNON CORPORATION

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(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, 2024

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

Currency translation $ 473

Balance at March 31, 2025

Acquisition of Kito Crosby (Refer to Note 3) 931,874

Impairment of Precision Conveyance Reporting Unit ( 200,000 )

Divestiture of U.S.

Power Chain Hoist and Chain Manufacturing Operations (Refer to Note 3)

Currency translation 17,211

Balance at March 31, 2026

Goodwill is recognized net of accumulated impairment losses of $ 113,174,000 as of both March 31, 2025 and 2024, respectively.

Goodwill is recognized net of accumulated impairment losses of $ 313,174,000 and $ 113,174,000 March 31, 2026 and 2025, respectively.

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

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

Identifiable intangible assets at March 31, 2026 include the assets acquired in the Kito Crosby Acquisition as disclosed in Note 3.

They are summarized as follows (in thousands):

Amount Accumulated

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Total amortization expense was $ 48,757,000 , $ 29,946,000 , and $ 29,396,000 for fiscal 2026, 2025, and 2024, respectively.

The increase in amortization expense in fiscal 2024 is the result of the montratec acquisition and related intangible assets acquired.

The increase in amortization expense in fiscal 2026 is the result of the Kito Crosby Acquisition and related intangible assets acquired.

Based on the current amount of intangible assets, the estimated amortization expense for each of the succeeding five years is expected to be approximately $ 140,000,000 .

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The Company anticipates that these counterparties will be able to fully satisfy their obligations under the contracts.

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

The Company has derivative contracts with seven counterparties as of March 31, 2026.

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

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This intercompany loan is related to the acquisition of STAHL.

As of March 31, 2025, the notional amount of this derivative was $ 72,040,000 , and the contract matures on March 31, 2028.

As of March 31, 2026, the notional amount of this derivative was $ 50,170,000 , and the contract matures on June 30, 2028.

From its March 31, 2026 balance of AOCL, the Company expects to reclassify approximately $ 1,166,000 out of AOCL, and into foreign currency exchange loss (gain), during the next 12 months based on the contractual payments due under this intercompany loan.

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

As of March 31, 2026, the notional amount of these derivatives was $ 6,243,000 , and all contracts mature by March 31, 2027.

From its March 31, 2026 balance of AOCL, the Company expects to reclassify approximately $ 15,000 out of AOCL during the next 12 months based on the expected sales of the goods purchased.

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 Company has eleven 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 31, 2031, with an aggregate notional amount of $ 965,000,000 as of March 31, 2026.

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Interest rate swap Other non current liabilities ( 2,241 ) ( 1,639 )

Cross currency swap Prepaid expenses and other — 199

Cross currency swap Accrued liabilities ( 1,571 ) ( 49 )

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Accrued payroll $ 77,428 $ 37,285

Customer advances, deposits, and rebates 34,692 17,368

Current ROU lease liabilities 31,523 9,961

Tax refund payable to previous owner of Kito Crosby 20,000 —

Accrued income taxes payable 8,300 9,646

Accrued health insurance 7,462 2,813

Short term pension liabilities 5,614 3,709

Accrued general and product liability costs 4,400 4,400

Customer advances, deposits, and rebates 17,368 17,531

Current ROU lease liabilities 9,961 8,723

Short term derivative liabilities 2,524 336

Other accrued liabilities 57,066 28,389

1 unchanged sentence

Consolidated other non-current liabilities of the Company consisted of the following:

Accumulated postretirement benefit obligation 597 $ 695

Accrued general and product liability costs 15,046 15,388

Accrued pension cost 62,675 70,552

Cross currency swap 1,800 2,541

Deferred income tax 28,302 40,450

Noncurrent deferred tax liability $ 324,317 $ 28,302

Accrued long-term pension cost 81,481 62,675

Non-current ROU lease liabilities 64,195 59,735

Accrued general and product liability costs 28,796 15,046

Accumulated other postretirement benefit obligation 5,352 3,434

Long term derivatives liabilities 4,602 3,439

Long term accrued environmental liabilities 3,649 1,901

Federal income tax payable 1,406 —

Other non-current liabilities 11,353 4,006

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Refer to Note 16 for additional information.

The acquisition of Kito Crosby contributed $ 100,141,000 and $ 349,739,000 to the increase in accrued liabilities and non-current liabilities, respectively, since March 31, 2025.

Consolidated long-term debt of the Company consisted of the following:

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Term Loan B $ 1,456,990 $ 437,560

Senior Secured Note 900,000 —

AR Securitization 53,400 25,000

Revolver 25,000 —

Other debt 5,606 —

Unamortized deferred financing costs, net ( 59,538 ) ( 3,852 )

2 unchanged sentences

Total debt, less current portion $ 2,215,852 $ 408,708

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

The Company’s long-term debt consists of borrowing with an original contractual maturity greater than one year, including its 2026 Term Loan B, Senior Secured Notes, Accounts Receivable Securitization, and 2026 Revolving Credit Facility.

In connection with the closing of the Kito Crosby Acquisition, the Company entered into a new senior secured term loan credit facility (“2026 Term Loan B”) and a new revolving credit facility with an expanded bank lender group (“2026 Revolving Credit Facility”) and issued senior secured notes (“Senior Secured Notes”).

The 2026 Term Loan B, 2026 Revolving Credit Facility and Senior Secured Notes also replaced the Company’s previous term loan credit facility (“2024 Term Loan B”) and revolving credit facility (“2024 Revolving Credit Facility”) and proceeds from the new credit facilities were used to fund the Kito Crosby Acquisition and fully repay the 2024 Term Loan B.

There was no balance on the 2024 Revolving Credit Facility at the time of replacement by the Revolving Credit Facility.

The Company’s accounts receivable securitization credit facility (“AR Securitization Facility”), expanded to $ 60,000,000 from $ 55,000,000 on August 11, 2025.

The AR Securitization was not impacted by the Kito Crosby Acquisition.

Senior Secured Notes

On January 30, 2026 the Company completed an offering of $ 900,000,000 in aggregate principal amount of 7.125 % senior secured notes maturing February 1, 2033 in a private placement ("Senior Secured Notes").

The Senior Secured Notes bear interest at a rate of 7.125 % per year payable semi-annually in cash in arrears on February 1 and August 1 of each year.

The first such interest payment will be made on August 1, 2026.

The Senior Secured Notes were issued pursuant to an indenture, dated as of January 30, 2026 (the “Indenture”), between the Company and Wilmington Trust, National Association, as trustee (the “Trustee”) and as note collateral agent (the “Note Collateral Agent”).

On February 3, 2026, and in connection with the closing of the Kito Crosby Acquisition, the Company, the guarantors party thereto (the “Note Guarantors”), the Trustee and the Note Collateral Agent entered into a first supplemental indenture (the “Supplemental Indenture”) pursuant to which, among other things, the Note Guarantors unconditionally guaranteed the Notes.

The Company may redeem the Senior Secured Notes, in whole or in part, at its option, at any time and from time to time on and after February 1, 2029, at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest, if any, to, but excluding, the relevant redemption date, if redeemed during the twelve-month period beginning on February 1 of the years set forth below:

Redemption Period Price

2029 103.56 %

2030 101.78 %

2031 and thereafter 100.00 %

COLUMBUS McKINNON CORPORATION

1 unchanged sentence

(tabular amounts in thousands, except share data)

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.

At any time and from time to time prior to February 1, 2029, the Company at its option may redeem up to 40.0 % of the aggregate principal amount of the Senior Secured Notes with the aggregate proceeds of certain equity offerings at a price equal to 107.125 % of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

At any time prior to February 1, 2029, the Company may, at its option, redeem some or all of the Notes at a redemption price equal to 100.0 % of the aggregate principal amount of the Notes to be redeemed, plus a “make-whole” premium and accrued and unpaid interest, if any, to, but excluding, the redemption date.

Upon the occurrence of a Change of Control (as defined in the Indenture), the Company may be required to offer to repurchase the Senior Secured Notes at a price of 101.0 % of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.

Gross deferred debt issuance costs related to the Senior Secured Notes were $ 13,973,000 of which $ 333,000 were amortized through March 31, 2026.

New 2026 Term Loan B

On February 3, 2026, Columbus McKinnon Corporation (the “Borrower”) entered into a new credit agreement for a senior secured term loan credit facility or 2026 Term Loan B, in the initial amount of $ 1,650,000,000 maturing February 3, 2033, and a $ 500,000,000 revolving line of credit ("2026 Revolving Credit Facility") with a group of financial institutions or Revolving Credit Facility maturing February 3, 2028 (“2026 Credit Agreement”) with JPMorgan Chase Bank, N.A.

as Administrative Agent and the lenders named therein.

The 2026 Term Loan B replaced the Company’s 2024 Term Loan B.

Proceeds of the 2026 Term Loan B were used to complete the Kito Crosby Acquisition as well as fully repay the Company’s 2024 Term Loan B.

On March 4, 2026 the Company repaid $ 191,080,000 of the 2026 Term Loan B using the proceeds of the divestiture of the Company’s U.S.

Power Chain Hoist and Chain Operations (See Note 3).

The Company also received credit for a pro rata proportion of the Original Issuer Discount paid to the 2026 Term Loan B lenders in an amount of $ 1,900,000 totaling a $ 193,010,000 reduction in the 2026 Term Loan B after completion of the Divestiture per the terms of the 2026 Credit Agreement.

As outlined in the 2026 Credit Agreement, prepayments can be made without penalty after August 3, 2026.

Borrowings under the 2026 Credit Agreement, at the Company’s election, bear interest at either Secured Overnight Financing Rate ("SOFR") subject to a 50 basis point floor or base rate plus an applicable margin of 350 basis points per annum.

At March 31, 2026, the outstanding principal balance of the 2026 Term Loan B was $ 1,456,990,000 or $ 1,411,312,000 net of $ 45,678,000 of unamortized discount and debt issuance costs.

Debt issuance costs are amortized over the contractual term to interest expense.

The accumulated amortization balance was $ 1,161,000 as of March 31, 2026.

The Company is obligated to make $ 12,375,000 of principal payments on the 2026 Term Loan B facility over the next 12 months plus applicable Excess Cash Flow ("ECF") payments, if required, however, plans to pay down approximately $ 160,000,000 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.

The gross balance of deferred financing costs on the 2026 Term Loan B facility was $ 46,839,000 of March 31, 2026.

The accumulated amortization balance was $ 1,161,000 as of March 31, 2026.

The terms of the 2026 Credit Agreement 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 as defined in the 2026 Credit Agreement, the Company may be required to pay the Excess Cash Flow in excess of a specified Excess Cash Flow percentage for each fiscal year minus optional prepayments.

The Excess Cash Flow Percentage is defined as 50 % stepping down to 25 % or 0 % based on the achievement of specified Consolidated First Lien Leverage Ratio as of the last day of the immediately preceding fiscal year.

No Excess Cash Flow payments were due as of March 31, 2026.

2026 Revolving Credit Facility

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

On February 3, 2026, Columbus McKinnon Corporation (the “Borrower”) entered into a new $ 500,000,000 2026 Revolving Credit Facility with a group of financial institutions or Revolving Credit Facility, maturing February 3, 2031 governed by the 2026 Credit Agreement.

The Revolving Credit Facility replaced the Company’s previous revolving credit facility, the 2024 Revolving Credit Facility.

Borrowings for the New Revolving Facility will bear interest at either the bank’s base rate or SOFR plus an applicable margin as defined in the 2026 Credit Agreement for U.S.

borrowing or an alternative benchmark rate plus an applicable margin for borrowing in alternative currencies as permitted by the 2026 Credit Agreement.

The applicable margin is adjusted based on the Company’s Consolidated Total Leverage Ratio (as defined in the 2026 Credit Agreement) as set forth in the 2026 Credit Agreement.

As of March 31, 2026, there was $ 25,000,000 of borrowings outstanding under the 2026 Revolving Credit Facility and availability under the 2026 Revolving Credit facility was $ 458,933,000 net of $ 16,067,000 outstanding standby letters of credit issued against the 2026 Revolving Credit Facility and the borrowings outstanding.

Gross deferred debt issuance costs related to the 2026 Revolving Credit Facility were $ 7,038,000 of which $ 235,000 were amortized through March 31, 2026.

The new 2026 Revolving Credit Facility replaced the Company’s previous 2024 Revolving Credit Facility.

There were no outstanding borrowings on the 2024 Revolving Credit Facility at the time of its replacement on February 3, 2026.

Financial Covenants and Default Provisions of the 2026 Credit Agreement and Senior Secured Notes

The 2026 Credit Agreement and the Senior Secured Notes Indenture (collectively the “Debt Agreements”) provides for customary events of default, including the following (subject to any applicable cure period):

nonpayment, breach of covenants in the Indenture, payment defaults under or acceleration of certain other indebtedness, failure to discharge certain judgments and certain events of bankruptcy, insolvency and reorganization.

Additionally, provisions contained in the Debt Agreements include customary covenants required of the Company and its subsidiaries including various affirmative and negative financial and operational covenants.

Included in the 2026 Credit Agreement, the key financial covenants prohibit the Consolidated First Lien Leverage Ratio for the reference period ended on such date from exceeding 7.75 to 1.00 as of any date of determination with step-downs for the first three years to 7.25 to 1.00, 6.75 to 1.00 and 6.25 to 1.00.

The Senior Secured Notes Indenture contains certain covenants applicable to the Company and its restricted subsidiaries, including limitations on liens, incurrence of indebtedness and mergers, consolidations and sale of assets.

The Indenture also contains requirements relating to additional subsidiary guarantors.

Each of these covenants is subject to important exceptions and qualifications.

In addition, most of these covenants will be suspended for so long as the Notes are rated investment grade by either Moody’s Investment Service, Inc.

or Standard & Poor’s Financial Services LLC and no default under the Indenture has occurred and is continuing.

The Senior Secured Notes Indenture provides for customary events of default, including the following (subject to any applicable cure period):

If an event of default occurs or is continuing, the Trustee, acting at the direction of holders of at least 30.0 % in aggregate principal amount of the Notes then outstanding, may declare the principal of, premium, if any, and accrued and unpaid interest, if any, to be due and payable immediately.

AR Securitization Facility

Since June 20, 2023, the Company used an AR Securitization Facility secured by the Company’s U.S.

accounts receivable balances (the “AR Securitization Facility”) for general business purposes, including seasonal net working capital needs.

In fiscal 2026 the AR Securitization Facility was amended to increase the maximum principal amount to $ 60,000,000 from the original borrowing base of $ 55,000,000 , subject to a borrowing base calculation pursuant to the definitions and methodology outlined in the related credit agreement, eliminated the 10 basis point credit spread adjustment to the cost of borrowing, and extending its term through August 11, 2028.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

The AR Securitization Facility borrowings bear interest at a floating rate equal to a one-month SOFR rate plus a 110 basis points applicable margin.

Amounts drawn under the AR Securitization Facility may remain outstanding until the maturity date of the AR Securitization Facility on August 11, 2028.

The AR Securitization Facility Agreement contains customary events of default (referred to as “Amortization Events.”) Amounts drawn under the AR Securitization Facility may remain outstanding until the maturity date of the AR Securitization Facility on August 11, 2028.

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, 2026, there have been no Amortization Events triggered in the AR Securitization Facility.

As of March 31, 2026, the Company has $ 53,400,000 outstanding under its AR Securitization Facility.

The total U.S.

accounts receivable balances which secure the AR Securitization Facility total $ 84,039,000 as of March 31, 2026.

The Company has recorded $ 273,000 in deferred financing costs, of which $ 139,000 is related to the AR Securitization Facility extension and $ 134,000 relates to unamortized fees carried over from the Company's prior AR Securitization Facility.

These balances will be amortized through August 11, 2028 and are classified in Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations on the Company's Consolidated Balance Sheet.

The gross balance of deferred financing costs associated with the AR Securitization Facility was $ 273,000 and $ 536,000 as of March 31, 2026 and 2025, respectively.

The accumulated amortization balance of $ 53,000 and $ 327,000 as of March 31, 2026 and 2025.

As of March 31, 2026, 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 $ 53,400,000 outstanding borrowings under the AR Securitization Facility as long-term debt at March 31, 2026.

Other debt of $ 5,606,000 includes a secured loan assumed in the Kito Crosby acquisition that had previously been used to purchase a building in the United States.

It matures on December 31, 2026 and has an interest rate of 2.7 %.

The full amount is included in the current portion of long term debt.

The principal payments obligated to be made as of March 31, 2026 on the 2026 Term Loan B, the Senior Secured Notes and AR Securitization are as follows:

2027 $ 17,981

2028 $ 16,500

2029 $ 69,900

2030 $ 16,500

Thereafter $ 2,320,115

2024 Term Loan B and 2024 Revolving Credit Facility

In fiscal 2025 and through February 3, 2026, the Company had outstanding its 2024 Term Loan B and 2024 Revolving Credit Facility.

The initial amount of the 2024 Term Loan B was $ 450,000,000 maturing May 14, 2028, and the initial amount of the 2024 Revolving Credit Facility was $ 100,000,000 .

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 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 in connection with the purchase of montratec.

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.

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

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

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.

The Company incurred fees of $ 801,000 in this transaction which were deferred and 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.

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.

The Fourth Amendment reduces the interest rate margin applicable under the Term Loan B by 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.

1 unchanged sentence

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.

The outstanding principal balance of the 2024 Term Loan B facility was $ 437,560,000 or $ 433,916,000 net of $ 3,644,000 of unamortized discount and debt issuance costs as of March 31 2025.

Debt issuance costs were amortized over the contractual term to interest expense using the effective interest rate in effect at issuance.

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

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

As of March 31, 2025, there was no balance on the 2024 Revolving Credit Facility and the availability on the 2024 Revolver was $ 159,583,000 net of $ 15,417,000 of outstanding standby letters of credit.

The gross balance of deferred financing costs associated with the 2024 Revolving Credit Facility was $ 4,828,000 , which were included in Other assets on the Consolidated Balance Sheet with accumulated amortization of $ 3,733,000 as of March 31, 2025.

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

The accumulated amortization balance was $ 4,201,000 as of March 31, 2025.

Key Terms of the 2024 Term Loan B and 2024 Revolving Credit Facility:

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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.

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.

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

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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.

In the case of the Revolving Credit Facility, the

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

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:

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

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 Agreement contains customary events of default (referred to as “Amortization Events.”)

• Amounts drawn under the AR Securitization Facility may remain outstanding until the maturity date of the AR Securitization Facility on June 19, 2026.

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.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

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.

The outstanding balance on the finance lease obligation is $ 11,549,000 as of March 31, 2026 of which $ 812,000 has been recorded within the Current portion of long term debt and the remaining balance recorded within Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations on the Company's Consolidated Balance Sheet.

See Note 18 for further details.

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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, 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.

As of March 31, 2026, unsecured credit lines totaled approximately $ 5,853,000 , including $ 2,734,000 related to the Kito Crosby acquisition.

As of March 31, 2026, $ 578,000 was drawn.

In addition, unsecured lines of $ 23,071,000 , including $ 1,931,000 related to the Kito Crosby acquisition, were available for bank guarantees issued in the normal course of business of which $ 19,128,000 and nothing from the Kito Crosby was utilized as of March 31, 2026.

Pensions and Other Benefit Plans

2 unchanged sentences

This statement also requires an entity to measure a defined benefit postretirement plan’s assets and obligations that determine its funded status as of the end of the fiscal year.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Pension Plans

2 unchanged sentences

The following provides a reconciliation of benefit obligation, plan assets, and funded status of the plans:

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Change in benefit obligation:

Benefit obligation at beginning of year $ 158,629 $ 268,025

Acquired benefit obligation from the Kito Crosby Acquisition 49,916 —

Service cost 730 477

7 unchanged sentences

Fair value of plan assets at beginning of year $ 94,240 $ 199,592

Fair value of plan assets acquired from the Kito Crosby Acquisition 35,953 —

Actual gain (loss) on plan assets 2,165 10,327

8 unchanged sentences

Net amount recognized $ ( 97,509 ) $ ( 81,256 )

The acquired pension obligation and related plan assets pertain to the Kito Crosby Acquisition, as described in Note 3.

The pension obligation and plan assets were measured as of the acquisition date.

Subsequent activity is included in the remaining lines of the table above and is presented together with the Company’s other pension plans.

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

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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 .

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Unrecognized gains and losses are amortized through March 31, 2026, on a straight-line basis over the average remaining service period of active participants.

Starting in fiscal 2016, the Company changed the amortization period of its largest plan to the average remaining lifetime of inactive participants, as a significant portion of the plan population is now inactive.

This change increases the amortization period of the unrecognized gains and losses.

The weighted-average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also net periodic pension cost for the following year:

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Total plan assets 100 % 100 % 100 %

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

The targets above include Kito Crosby's asset allocations.

We will continue to evaluate these targets in fiscal 2027, and will revise them as necessary.

COLUMBUS McKINNON CORPORATION

1 unchanged sentence

(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.

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 method.

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

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retirees and their dependents of one of its subsidiaries.

Prior to the acquisition of this subsidiary, the Company did not sponsor any postretirement benefit plans.

The Company pays the majority of the medical costs for certain retirees and their spouses who are under age 65 .

37 unchanged sentences

Fixed income securities 4,155 — 4,284 — 8,439

Common collective trusts 104,258 — — — 104,258

Cash equivalents 955 2,275 — — 3,230

9 unchanged sentences

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

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

Cash equivalents — 289 — — 289

13 unchanged sentences

Additionally, during the year ended March 31, 2015, the final loan payment was made by the ESOP to the Company and there was no compensation expense recorded in fiscal years 2026, 2025, or 2024.

At March 31, 2025 and 2024, 143,000 and 160,000 of ESOP shares, respectively, were allocated or available to be allocated to participants’ accounts.

There are no shares of collateralized common stock related to the ESOP loan outstanding at March 31, 2025 and no ESOP shares were pledged as collateral to guarantee the ESOP term loans.

At March 31, 2025, 143,000 of ESOP shares, respectively, were allocated or available to be allocated to participants’ accounts.

The ESOP was terminated effective August 4, 2025 and these remaining shares were distributed in fiscal 2026.

Earnings per Share and Stock Plans

Earnings per Share

The Company calculates earnings per share in accordance with ASC Topic 260, “Earnings per Share.” Basic earnings per share exclude any dilutive effects of options, warrants, and convertible securities.

The Company calculates earnings per share in accordance with ASC 260, “Earnings per Share.” Basic earnings per share exclude any dilutive effects of options, warrants, and convertible securities.

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

The Company has issued participating securities, including its Series A Cumulative Convertible Participating Preferred Shares, which entitles holders to participate in dividends on an as-converted basis.

Accordingly, the Company applies the two-class method, an earnings allocation formula under which net income or loss is allocated to common stockholders and participating securities based on their respective rights to receive dividends, including participation in undistributed earnings.

Dividends on participating preferred shares, including cumulative dividends, are reflected as a reduction to income available to common stockholders in the computation of earnings per share.

Diluted earnings per share is computed using the more dilutive of the two-class method or other applicable method and the if-converted method.

Stock options, restricted stock units, and performance shares with respect to 2,592,000 common shares and preferred shares convertible to 21,467,000 of common shares for the fiscal year ended March 31, 2026 were not included in the computation of diluted income per share because they were antidilutive as a result of the Company's net loss.

Refer to Notes 3, 9 and 12 for additional information regarding the transactions that resulted in the net loss.

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.

Refer to Notes 3 and 13 for additional information regarding the transactions that resulted in the net loss.

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

2 unchanged sentences

2026 2025 2024

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

Net income (loss) attributable to the Company $ ( 229,535 ) $ ( 5,138 ) $ 46,625

Net income (loss) attributable to preferred stockholders ( 17,050 ) — —

Net income (loss) attributable to common stockholders $ ( 212,485 ) $ ( 5,138 ) $ 46,625

Denominators:

2 unchanged sentences

Adjusted weighted-average common stock outstanding and assumed conversions— denominator for diluted EPS 28,714 28,738 29,026

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

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

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

The Company records stock-based compensation in accordance with ASC 718 applying the modified prospective method.

This Statement requires all equity-based payments to employees, including grants of employee stock options, to be recognized in the statement of earnings based on the grant date fair value of the award.

1 unchanged sentence

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

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.

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.

In July 2024, 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.

1 unchanged sentence

Stock-based compensation expense was $ 9,569,000 , $ 6,256,000 , and $ 12,039,000 for fiscal 2026, 2025, and 2024, respectively.

Stock compensation expense is included in cost of products sold, selling, general and administrative, and research and development expenses depending on the nature of the service of the employee receiving the award.

Stock-based compensation expense is included in cost of products sold, selling, general and administrative, and research and development expenses depending on the nature of the service of the employee receiving the award.

The Company recognizes expense for all share–based awards over the service period, which is the shorter of the period until the employees’ retirement eligibility dates or the service period for the award, for awards expected to vest.

Accordingly, expense is generally reduced for estimated forfeitures.

ASC Topic 718 requires forfeitures to be estimated at the time of grant and revised if necessary, in subsequent periods if actual forfeitures differ from those estimates.

ASC 718 requires forfeitures to be estimated at the time of grant and revised if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The Company recognized compensation expense for stock option awards and unvested restricted share awards that vest based on time or market parameters straight-line over the requisite service period for vesting of the award.

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 has increased to 5,300,000 in fiscal 2025 as a result of the fiscal 2025 amendment described above.

As of March 31, 2026, 920,241 shares remain available for future grants.

35 unchanged sentences

The aggregate intrinsic value of outstanding options as of March 31, 2026 is calculated as the difference between the exercise price of the underlying options and the market price of our common shares for the options that were in-the-money at that date.

At March 31, 2026 there were no shares in the money.

The aggregate intrinsic value of exercisable options as of March 31, 2026 is calculated as the difference between the exercise price of the underlying options and the market price of our common shares for the exercisable options that were in-the-money at that date.

There were no exercisable shares in the money at March 31, 2026.

The Company's closing stock price was $ 14.69 as of March 31, 2026.

2 unchanged sentences

As of March 31, 2026, $ 2,705,000 of unrecognized compensation cost related to non-vested stock options is expected to be recognized over a weighted-average period of approximately 1.7 years.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Exercise prices for options outstanding as of March 31, 2026, ranged from $ 17.15 to $ 19.06 .

11 unchanged sentences

1,604,951 $ 31.82 6.12

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

The following table provides certain information with respect to stock options exercisable at March 31, 2026:

55 unchanged sentences

Fiscal 2024 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, 2026.

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

During fiscal 2026, the Company determined that the performance condition on its fiscal 2024 performance shares would not be met.

The Company has adjusted its stock-based compensation expense accordingly in fiscal 2026.

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.

Fiscal 2025 and fiscal 2026 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, 2027, and 2028.

The Company calculated that the fiscal 2025 portion of the fiscal 2025 performance shares were not met and as such the Company has adjusted compensation expense accordingly.

COLUMBUS McKINNON CORPORATION

7 unchanged sentences

Granted 73,453 36.58

Vested ( 39,720 ) 35.95

Forfeited ( 33,838 ) 28.66

18 unchanged sentences

The dividend was paid on May 11, 2026, to shareholders of record on May 1, 2026 and totaled approximately $ 2,012,000 .

Preferred Shares

On January 29, 2026, the Company filed a certificate of amendment (the “Preferred Shares Amendment”) to the Company’s Restated Certificate of Incorporation with the New York State Department of State establishing the rights, preferences, privileges, qualifications, restrictions and limitations of the new Preferred Shares, described in Note 3.

On February 3, 2026, the Company completed the sale of 800,000 Series A Cumulative Convertible Participating Preferred Shares, par value $ 1.00 per share (the “Preferred Shares”), of the Company to CD&R XII Keystone Holdings, L.P.

(the “CD&R Investor”) at a purchase price of $ 1,000 per share for an aggregate purchase price of $ 800,000,000 (the “Preferred Equity Financing”).

Terms of the Preferred Shares include a 7 % coupon, payable in cash or payment-in-kind at Columbus McKinnon’s option, and an initial conversion price for conversion of Preferred Shares into the Company's common shares of $ 37.68 , resulting in the CD&R Investor's as-converted ownership of approximately 43 % of the Company's outstanding equity following completion of the Kito Crosby Acquisition.

The CD&R Investor has agreed to a customary lock-up on its Preferred Shares.

The Company has determined the Preferred Shares meet the qualification to be accounted for as an equity instrument.

As such, the proceeds from the Preferred Shares have been recorded in equity net of fees incurred to issue the shares.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

The Preferred Shares rank senior to the Company's common shares with respect to dividend rights and with respect to rights on liquidation, winding-up and dissolution.

Holders of the Preferred Shares are entitled to dividends that are payable quarterly in arrears, accrue and accumulate on a daily basis from the issuance date of such Preferred Shares and are payable at the Company’s option, either (i) in cash or (ii) accumulate with respect to each outstanding Preferred Share for the relevant payment period, at a rate of 7.00 % per annum, compounded quarterly, subject to adjustment and as set forth in the Preferred Shares Amendment.

At March 31, 2026, a stock dividend in kind was recorded increasing the preferred shares by $ 8,867,000 .

Holders of the Preferred Shares are also entitled to receive certain dividends declared or paid on the Company's common shares on an as-converted basis.

No dividends will be payable to holders of the Company's common shares unless the full dividends are paid at the same time to the holders of the Preferred Shares, except for dividends paid in the form of the Company's common shares, convertible securities, or options, and the Company's regular quarterly dividends of up to $ 0.07 per calendar quarter.

Certificate of Amendment for Authorized Shares and Preemptive Rights

On January 29, 2026, the Company filed a certificate of amendment (the “Authorized Shares and Preemptive Rights Amendment”) to the Company’s Restated Certificate of Incorporation with the New York State Department of State to (i) increase the number of authorized shares of the Company’s capital stock from 51,000,000 shares to 101,000,000 shares and to increase the number of authorized common shares from 50,000,000 common shares to 100,000,000 and (ii) permit the exercise by the CD&R Investor of preemptive rights provided for in the investment agreement entered into connection with the issuance of the Preferred Shares for so long as the CD&R Investor holds Preferred Shares (or common shares issued upon conversion of the Preferred Shares) representing at least 25 % of the Preferred Shares initially issued to the CD&R Investor to participate in future equity and equity-linked issuances by the Company to the extent necessary to maintain their pro rata ownership percentage interest in the Company, subject to customary exceptions.

Stock Repurchase Plan

On March 26, 2019, the Board of Directors approved a new stock repurchase program authorizing the repurchase of up to $ 20 million of the Company's common stock.

On March 26, 2019, the Board of Directors approved a stock repurchase program authorizing the repurchase of up to $ 20,000,000 of the Company's common stock.

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.

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.

The value of the shares purchased are reflected as Treasury stock on the Company's Consolidated Balance Sheets as of March 31, 2026 and 2025.

Loss Contingencies

3 unchanged sentences

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

The aggregate amounts of reserves were $ 33,196,000 (gross of estimated insurance recoveries of $ 19,959,000 ) and $ 19,446,000 (gross of estimated insurance recoveries of $ 6,995,000 ) of which $ 28,796,000 and $ 15,046,000 are included in Other non-current liabilities and $ 4,400,000 and $ 4,400,000 in Accrued liabilities as of March 31, 2026 and 2025, 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 (in thousands):

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

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 (in thousands):

Year Ended March 31,

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Accrued general and product liability, beginning of year $ 19,446 $ 19,988 $ 21,103

Accrued general and product liability acquired with Kito Crosby 14,506 — —

Estimated insurance recoveries ( 1,037 ) ( 642 ) ( 634 )

4 unchanged sentences

Net accrued general and product liability, end of year $ 13,237 $ 12,451 $ 12,351

Estimated insurance recoveries above include $ 14,000,000 acquired from Kito Crosby.

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.

3 unchanged sentences

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

Legacy Columbus McKinnon Corporation

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

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The Company will continue to study the variables in light of additional information in order to identify trends that may become evident and to assess their impact on the range of liability that is probable and estimable.

Based on actuarial information, the Company has estimated its net asbestos-related aggregate liability including related legal costs to range between $ 4,300,000 and $ 7,900,000 , net of insurance recoveries, using actuarial parameters of continued claims for a period of 38 years from March 31, 2025.

Based on actuarial information from fiscal 2026, the Company has estimated its net asbestos-related aggregate liability including related legal costs to range between $ 3,600,000 and $ 6,500,000 , net of insurance recoveries, using actuarial parameters of continued claims for a period of 38 years from March 31, 2026.

The Company has estimated its asbestos-related aggregate liability that is probable and estimable, net of insurance recoveries, in accordance with U.S.

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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

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.

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

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.

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.

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The Company has recorded a receivable for the estimated future cost sharing in Other assets in the Balance Sheet in the amount of $ 5,958,000 and $ 6,995,000 , which offsets its asbestos reserves, at March 31, 2026 and 2025, respectively.

In addition, one of the Company's subsidiaries, Magnetek, Inc.

One of the Company's subsidiaries, Magnetek, Inc.

("Magnetek") has been named, along with multiple other defendants, in asbestos-related lawsuits associated with business operations previously acquired but which are no longer owned.

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The Company's estimation of its product-related aggregate liability that is probable and estimable, in accordance with U.S.

generally accepted accounting principles approximates $ 5,303,000 , which has been reflected as a liability in the consolidated financial statements as of March 31, 2025.

generally accepted accounting principles approximates $ 6,372,000 , which has been reflected as a long-term liability in the consolidated financial statements as of March 31, 2026.

In some cases, the Company cannot reasonably estimate a range of loss because there is insufficient information regarding the matter.

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 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.

In April 2024, 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 considered payment of the damages as not probable given the facts of the case.

The Company appealed the jury verdict and won the appeal in April 2026 remanding to the circuit court with direction to dismiss the complaint against the Company.

As such, the Company has no liability recorded in the Consolidated Balance Sheet at March 31, 2026 or 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

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.

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

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.

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and (2) lawsuits brought by municipalities and municipal entities claiming that Monsanto should be responsible for a variety of damages due to the presence of PCBs in bodies of water in those municipalities and/or in water treated by those municipal entities.

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.

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 Corporation ("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 such 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

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

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.

the Special Undertaking in Missouri and joined five additional companies as co-defendants in that Missouri action.

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

Co-defendants removed the Missouri action to the U.S.

District Court for the Eastern District of Missouri, and a motion to remand is currently pending.

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

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Travelers is currently defending the Company in its litigation with Monsanto.

The Company is also engaged in similar insurance coverage litigation against Transportation Insurance Company in the Circuit Court of Cook County, Illinois.

That suit is presently stayed due to the bankruptcy of Velsicol Chemical, LLC, a third-party indemnitor of TIC and Travelers.

The Company also has claims for insurance coverage from Transportation Insurance Company ("TIC") under certain historic insurance policies.

Environmental Matters

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However, 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 having 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 2026.

In 1986, Magnetek acquired the stock of Universal Manufacturing Corporation (“Universal”) from a predecessor of Fruit of the Loom (“FOL”), and the predecessor agreed to indemnify Magnetek against certain environmental liabilities arising from pre-acquisition activities at a facility in Bridgeport, Connecticut.

In 1986, Magnetek acquired the stock of Universal from a predecessor of Fruit of the Loom (“FOL”), and the predecessor agreed to indemnify Magnetek against certain environmental liabilities arising from pre-acquisition activities at a facility in Bridgeport, Connecticut.

Environmental liabilities covered by the indemnification agreement included completion of additional cleanup activities, if any, at the Bridgeport facility and defense and indemnification against liability for potential response costs related to offsite disposal locations.

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

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

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.

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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 has recorded a liability of $ 540,000 , included in the amount specified above, related to the Bridgeport facility,

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(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.

Kito Crosby, along with a number of unrelated third parties, are named as defendants in personal injury claims and lawsuits based on alleged exposure to asbestos-containing materials.

Kito Crosby monitors claims filing and development experience and periodically updates the estimated cost of defending against and resolving these claims.

At March 31, 2026 the Company estimated the asbestos liability to be $ 14,450,000 .

The Company believes this represents a reasonable estimate of the remaining remediation costs.

Certain subsidiaries of Kito Crosby that are subject to asbestos-related personal injury claims have maintained product liability insurance policies.

Certain of these policies provide a source of probable recovery of a portion of losses incurred and paid, as well as a portion of estimated probable future losses accrued as of March 31, 2026.

An additional source of probable recovery of uninsured losses is an unrelated third party, which manufactured component products for the Kito's subsidiaries that are alleged to give rise to asbestos-related injuries.

The estimated probable amount of losses to be recovered from insurance and/or unrelated third parties is $ 14,001,000 as of March 31, 2026.

Other Matters

Kito Crosby is involved in environmental remediation efforts related to formerly owned or operated properties and certain third-party owned landfill sites, as they are responsible, or alleged to be responsible, for ongoing environmental investigation and remediation of these sites.

These sites are in various stages of investigation and/or remediation, and associated costs and liabilities are recognized by the Company, considering current developments, the law and existing technologies.

It can be difficult to reliably estimate the final costs of investigation and remediation due to various factors.

These factors include, but are not limited to:

an early stage of investigation for some sites, which increases uncertainty with respect to applicable regulatory requirements and duration, scope and cost of the remedial work;

evolving laws and regulations affecting the scope of planned remedial effort and technologies applied;

an early stage of certain legal analyses, such as the existence and financial condition of other potentially responsible parties subject to joint and several liability for remediation on certain sites;

possible identification of additional volumes of contamination at known sites;

and general changes in the cost of labor, materials and equipment planned to be employed in remedial work.

Kito Crosby recognized a liability associated with a formerly owned industrial manufacturing operations site where investigation and environmental assessment identified releases of certain contaminants in the soil and groundwater on, in and around the site.

The carrying amounts of the liability was $ 640,000 at March 31, 2026.

These amounts primarily represent the estimated costs of site monitoring and management activities as remediation activities.

The environmental exposure at this site is insured by third-party insurance companies that are managing ongoing feasibility evaluation and remediation activities and are paying directly the associated costs on behalf of the Company.

The carrying amount of the insurance recovery probable of being realized for this site was $ 400,000 as of March 31, 2026.

Kito Crosby has recognized a $ 311,000 environmental liability as of March 31, 2026, related to a single former landfill site where the Company’s subsidiary and four other unrelated third parties, have accepted liability for remediating environmental contamination.

Additionally, Kito Crosby has entered into a consent decree with a state agency concerning a formerly owned site.

The consent decree resulted in administrative fees of $ 1,900,000 paid in the first quarter of calendar year 2025 with additional remediation responsibilities to be paid over the next five years in the amount of $ 3,252,000 .

The carrying amount of this liability is $ 1,726,000 as of March 31, 2026.

For all of the currently known environmental matters, the Company has amounts accrued as of March 31, 2026 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 2026.

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.

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income from continuing operations before income tax expense.

The sources and tax effects of the differences were as follows:

Year Ended March 31,

2025 2024 2023

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

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

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

Foreign taxes at rates other than statutory federal rate ( 431 ) ( 247 ) 1,757

Employee benefits 483 1,347 1,207

US benefit on foreign derived income ( 259 ) ( 686 ) ( 477 )

US Tax on foreign earnings 379 757 1,257

Permanent items (4) 421 694 168

Valuation allowance (3) 181 ( 1,109 ) ( 787 )

Federal tax credits ( 1,002 ) ( 1,384 ) ( 1,539 )

Other (3) ( 28 ) 1,437 285

Tax audit adjustments (2) — ( 819 ) 2,523

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

Actual tax provision expense $ ( 367 ) $ 14,902 $ 26,046

(1) Fiscal year 2024 and 2023 table amounts have been adjusted to be consistent with individual rate reconciling items disclosed for fiscal 2025.

(2) For fiscal 2023, the Company settled income tax assessments related to tax periods prior to the Company's acquisition of STAHL.

In accordance with the tax indemnification clause of the share purchase agreement, the Company received full reimbursement from STAHL’s prior owner which was recorded as a gain in Other (income) expense, net.

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

In accordance with

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

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.

(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.

United States income (loss) before income tax expense was $( 162,297,000 ), $( 44,297,000 ), and $ 20,464,000 for the years ended March 31, 2026, 2025, and 2024, respectively.

Income (loss) before income tax expense also includes foreign subsidiary income of $( 44,210,000 ), $ 38,791,000 , and $ 41,063,000 for the years ended March 31, 2026, 2025, and 2024, respectively.

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

9 unchanged sentences

$ 22,930 $ ( 367 ) $ 14,902

Income taxes paid (net of refunds received):

Year Ended March 31,

2026 2025 2024

Federal $ 24,674 $ 2,568 $ 15,536

State and Local $ 5,218 $ 1,999 $ 2,134

Germany $ 5,680 $ 7,339 $ 3,550

Hungary $ — $ 1,568 $ —

Mexico $ — $ — $ 1,948

Netherlands $ — $ 1,386 $ —

United Kingdom $ — $ 1,286 $ —

Other $ 10,277 $ 4,375 $ 5,200

Total net income tax payments $ 45,850 $ 20,520 $ 28,369

Effective March 31, 2026, the Company adopted ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Taxes Disclosures retrospectively.

Under ASU No.

2023-09, entities are required to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes and provide more details about the reconciling items in some categories if the items meet a quantitative threshold.

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income from continuing operations before income tax expense.

The sources and tax effects of the differences were as follows:

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

Year Ended March 31,

2026 2025 2024

US Federal Statutory Rate $ ( 43,367 ) 21 % $ ( 1,156 ) 21 % $ 12,918 21 %

State and Local Income Taxes, Net of Federal Income Tax Effect* $ 3,550 ( 2 ) % $ ( 514 ) 9 % $ 652 1 %

Foreign Tax Effects

State and local income taxes $ — — $ 486 ( 9 ) % $ 972 2 %

Enacted changes in tax laws or rates $ ( 2,387 ) 1 % $ — — $ — —

Goodwill impairment $ 13,318 ( 6 ) % $ — — $ — —

Other $ ( 740 ) 0 % $ 3 0 % $ 64 0 %

Statutory rate difference between Hungary and United States $ — — $ ( 1,718 ) 31 % $ ( 1,538 ) ( 3 ) %

Other $ — — $ 294 ( 5 ) % $ 528 1 %

Valuation allowance $ — — $ 445 ( 8 ) % $ — —

Other $ — — $ 794 ( 14 ) % $ 383 1 %

China $ — — $ 315 ( 6 ) % $ — —

Panama $ — — $ ( 348 ) 6 % $ — —

Other Jurisdictions $ 1,038 ( 1 ) % $ 271 ( 5 ) % $ 955 2 %

Effect of Cross Border Tax Laws

US benefit on foreign derived income $ — — $ — — $ ( 1,604 ) ( 3 ) %

Subpart F $ — — $ — — $ 427 1 %

GILTI $ — — $ — — $ 879 1 %

Other $ ( 17 ) 0 % $ 68 ( 1 ) % $ — —

Research & development tax credits $ — — $ ( 946 ) 17 % $ ( 986 ) ( 2 ) %

Other $ ( 540 ) 0 % $ — — $ — —

Changes in Valuation Allowances $ 3,455 ( 2 ) % $ 5 0 % $ ( 45 ) 0 %

Nontaxable or Nondeductible Items

Employee benefits $ — — $ 483 ( 9 ) % $ 1,347 2 %

Goodwill impairment $ 37,640 ( 18 ) % $ — — $ — —

Transaction costs $ 9,514 ( 5 ) % $ — — $ 525 1 %

Other $ 714 0 % $ 68 ( 1 ) % $ 141 0 %

Changes in Unrecognized Tax Benefits $ 121 0 % $ 600 ( 11 ) % $ ( 811 ) ( 1 ) %

Other Adjustments

Interest income from tax refunds $ — — $ ( 505 ) 9 % $ — —

Stranded tax effects $ — — $ 962 ( 17 ) % $ — —

Other $ 631 0 % $ 27 0 % $ 93 0 %

Effective Tax Rate $ 22,930 ( 11 ) % $ ( 367 ) 7 % $ 14,902 24 %

*In FY26 State taxes in Wisconsin, Oklahoma, Illinois, and Texas made up the majority (greater than 50%) of the tax effect in this category.

In FY25 Illinois, Michigan, California, Georgia, and Indiana, and in FY24 Massachusetts, Texas, New Jersey, Pennsylvania, California, and Georgia made up the majority (greater than 50%) of the tax effect in this category.

During fiscal year 2026, income tax was favorably impacted by the Act for an Immediate Tax Investment Program to Strengthen Germany as a Business Location (the "New German Tax Law").

The New German Tax Law enacted in July 2025 will lower the German corporate income tax rate from 15% to 10% by 2032.

The associated revaluation of the Company’s German net deferred tax liabilities results in an income tax benefit disclosed in the effective tax rate table above.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

On July 4, 2025, H.R.1, also known as the "One Big Beautiful Bill Act" ("OBBBA") was enacted into law in the United States, with many of its provisions taking effect during the Company's 2026 fiscal year.

The income tax expense and effective tax rate calculated for fiscal 2026 reflect the considerations of the OBBBA.

The Company applies the liability method of accounting for income taxes as required by ASC Topic 740, “Income Taxes.” The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:

11 unchanged sentences

Interest Carryforwards 95,909 10,411

Unrealized Losses 3,755 —

Other Reserves 9,098 —

Other 1,456 341

Valuation allowance ( 65,908 ) ( 15,802 )

4 unchanged sentences

Intangible Assets ( 414,406 ) ( 88,275 )

Other — ( 535 )

Deferred Revenue ( 5,657 ) —

Unremitted Earnings ( 14,868 ) ( 1,322 )

1 unchanged sentence

Net deferred tax assets (liabilities) $ ( 322,253 ) $ ( 25,398 )

The valuation allowance includes $ 17,951,000 and $ 1,151,000 primarily related to foreign net operating losses and $ 3,112,000 and $ 0 for federal net operating losses at March 31, 2026 and 2025, respectively.

The valuation allowance also includes $ 1,962,000 and $ 2,571,000 for state net operating losses at March 31, 2026 and 2025, respectively.

The valuation allowance also includes $ 24,736,000 and $ 0 related to interest deduction carryforwards at March 31, 2026 and 2025, respectively.

The remaining valuation allowance of $ 18,148,000 and $ 12,080,000 for the years ended March 31, 2026 and 2025, respectively, primarily relates to foreign tax credits which the Company believes it will not utilize.

The Company’s foreign subsidiaries have tax-effected net operating loss carryforwards of $ 23,066,118 that expire in periods ranging from three years to indefinite.

Gross federal net operating loss carryforwards of $ 45,334,000 remain from the acquisition of Magnetek and gross federal net operating loss carryforwards of $ 117,508,000 remain from the acquisition of Kito Crosby;

these carryforwards have expiration dates ranging from fiscal 2027 through indefinite.

Gross state net operating losses of $ 48,092,000 either have indefinite carryforward periods or have expiration dates ranging from fiscal 2027 through 2041.

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

COLUMBUS McKINNON CORPORATION

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(tabular amounts in thousands, except share data)

(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.

category above are $ 445,000 of state tax credit carryforwards.

These state tax credit carryforwards have expiration dates ranging from fiscal 2027 to 2037.

22 unchanged sentences

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

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

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.

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.

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

The Company periodically responds to audit requests in less material jurisdictions.

Nature of leases

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Operating leases are included in other assets, other current liabilities, and other liabilities on the Company’s Consolidated Balance Sheet.

Finance leases are included in net property, plant, and equipment, current portion of long-term debt and finance lease obligation, and the remaining balance is recorded within Term loan and finance lease obligations on the Consolidated Balance Sheet.

Finance leases are included in net property, plant, and equipment, current portion of long-term debt and finance lease obligation, and the remaining balance is recorded within Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations on the Consolidated Balance Sheet.

Leases with a term greater than one year are recognized on the Consolidated Balance Sheet as right-of-use (“ROU”) assets, lease obligations, and, if applicable, long-term lease obligations in the financial statement line items above.

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Current portion of long-term debt and finance lease obligation 812 739

Term loan and finance lease obligations 11,528 12,267

Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations 10,737 11,528

Total finance liabilities $ 11,549 $ 12,267

(1) Included in the operating ROU net asset balance are leases held by Kito Crosby in the amount of $ 35,282,000 as of March 31, 2026.

Operating lease expense of $ 16,224,000 , $ 14,433,000 and $ 12,550,000 for the fiscal years ending March 31, 2026, 2025, and 2024, respectively, is included in Income from operations on the Consolidated Statements of Operations.

Short-term lease expense, sublease income, and variable lease expenses are not material for the fiscal year ending March 31, 2026, 2025, and 2024, 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.

Finance lease expense of $ 1,021,000 and $ 1,001,000 for fiscal years ending March 31, 2026 and 2025, is included in Income from operations on the Consolidated Statements of Operations, and $ 541,000 and $ 566,000 and is included in Interest and debt expense for the fiscal years ending March 31, 2026 and 2025, on the Company's Consolidated Statements of Operations related to the finance lease.

Other lease disclosures

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Business Segment Information

ASC Topic 280, “Segment Reporting,” establishes the standards for reporting information about operating segments in financial statements.

ASC 280 establishes the standards for reporting information about operating segments in financial statements.

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

1 unchanged sentence

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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Europe, Middle East, and Africa (Excluding Germany) 576,783 76,831 90,921

Canada 6,811 9,606 12,668

Asia Pacific 277,783 11,821 14,094

Canada 52,275 6,811 9,606

Latin America 36,234 23,601 28,984

6 unchanged sentences

Europe, Middle East, and Africa (Excluding Germany) 178,482 8,625 8,156

Canada 1,071 1,190 1,267

Asia Pacific 108,831 1,854 2,058

Canada 31,774 1,071 1,190

Latin America 2,179 1,467 2,591

5 unchanged sentences

Hoists $ 557,045 $ 479,612 $ 494,726

High Precision Conveyors 154,660 163,462 149,586

Chain and rigging tools 76,072 74,075 76,990

Industrial cranes 37,113 39,520 38,369

Actuators and rotary unions 87,735 97,303 84,663

Lifting and securement hardware 159,824 76,072 74,075

High-precision conveying systems 148,567 154,660 163,462

Digital power control and delivery systems 122,708 110,379 122,344

Actuators and rotary unions 108,125 87,735 97,303

Industrial cranes 59,378 37,113 39,520

Technology & Specialty Solutions 22,985 — —

Elevator application drive systems 14,819 17,456 22,110

15 unchanged sentences

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

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

1 unchanged sentence

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.

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.

The stranded tax effects described above are in accordance with ASC 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.

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Net pension amount unrecognized

$ ( 1,205 ) (1)

( 1,205 ) Total before tax

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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.

In December 2023, the FASB issued ASU 2023‑09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures by requiring additional disaggregation in the effective tax rate reconciliation and income taxes paid by jurisdiction.

The Company adopted ASU 2023‑09 effective fiscal 2026 and applied the new disclosure requirements on a retrospective basis.

The adoption of this standard did not have a material impact on the Company’s consolidated financial statement disclosures.

Topics Not Yet Adopted

In April 2026, the FASB issued ASU 2026‑01, Equity (Topic 505):

Initial Measurement of Paid‑in‑Kind Dividends on Equity‑Classified Preferred Stock.

The ASU provides guidance on the initial measurement of paid‑in‑kind (“PIK”) dividends on equity‑classified preferred stock and does not affect the timing of dividend recognition.

The amendments are effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years.

Early adoption is permitted.

In February 2026, the Company issued Preferred Shares that include a paid‑in‑kind dividend feature.

Upon adoption of ASU 2026‑01, the Company will apply the guidance to measure PIK dividends on such preferred shares based on the contractual dividend rate and liquidation preference.

The Company is evaluating the timing of adoption and does not expect adoption to have a material impact on its financial position or results of operations.

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

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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.

COLUMBUS McKINNON CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(tabular amounts in thousands, except share data)

In December 2023, the FASB issued ASU No.

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Deducted from asset accounts:

Allowance for doubtful accounts $ 3,827 $ 3,641 $ ( 6 ) $ — $ 2,582 (1) $ 4,880

Allowance for credit losses $ 4,880 $ 2,714 $ 170 $ 2,009 $ 2,573 (1) $ 7,200

Deferred tax asset valuation allowance 15,802 3,118 86 46,902 — 65,908

4 unchanged sentences

Deducted from asset accounts:

Allowance for doubtful accounts $ 3,620 $ 1,225 $ ( 3 ) $ 64 $ 1,079 (1) $ 3,827

Allowance for credit losses $ 3,827 $ 3,641 $ ( 6 ) $ — $ 2,582 (1) $ 4,880

Deferred tax asset valuation allowance 15,156 648 ( 2 ) — — 15,802

4 unchanged sentences

Deducted from asset accounts:

Allowance for doubtful accounts $ 5,717 $ 1,055 $ ( 96 ) $ — $ 3,056 (1) $ 3,620

Allowance for credit losses $ 3,620 $ 1,225 $ ( 3 ) $ 64 $ 1,079 (1) $ 3,827

Deferred tax asset valuation allowance 15,978 ( 805 ) ( 17 ) — — 15,156

7 unchanged sentences

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