Executive Overview Columbus McKinnon Corporation ("Columbus McKinnon" or the "Company") is a leading worldwide designer, manufacturer and marketer of intelligent motion solutions that move the world forward and improve lives by efficiently and ergonomically moving, lifting, positioning and securing materials. Key products include hoists, crane components, precision conveyor systems, rigging tools, light rail workstations and digital power and motion control systems. These are highly relevant, professional-grade solutions that solve our customers’ critical material handling requirements. Founded in 1875, we have grown to our current size and leadership position through organic growth and acquisitions. We developed our leading market position over our 150-year history by emphasizing technological innovation, manufacturing excellence and superior customer service. In accordance with our strategic framework, we are building out our business system ("CMBS") and growth framework to be market-led, customer-centric, and operationally excellent with our people and values at the core. We believe this will transform Columbus McKinnon into a top-tier intelligent motion solutions company. We expect our strategy will enhance shareholder value by growing sales and expanding EBITDA margins. Our revenue base is geographically diverse with approximately 45% derived from customers outside the U.S. for the three months ended June 30, 2026. We believe this diversity balances the impact of changes that occur in local economies, as well as benefits the Company by providing access to growing emerging markets. We monitor both U.S. and Eurozone Industrial Capacity Utilization statistics as well as the ISM Production Index as indicators of anticipated demand for our products. In addition, we continue to monitor the potential impact of other global and U.S. trends including industrial production, trade tariffs, raw material cost inflation, interest rates, foreign currency exchange rates, and activity of end-user markets around the globe. From a strategic perspective, we are investing in new products and channels as we focus on our greatest opportunities for growth. We have leading market positions in hoists, lifting and sling chain, forged attachments, actuators, precision conveyors and digital power and motion control systems for the material handling industry. We are focusing our sales and marketing activities toward select North American and global market sectors including general industrial, energy, automotive, heavy OEM, entertainment, construction and infrastructure, life sciences food and beverage, e-commerce and consumer products. We operate in a highly competitive and global business environment. We see a variety of opportunities in our markets and geographies, including trends toward automation and increasing labor productivity and the expansion of market opportunities in Asia and other emerging markets. While we execute our long-term growth strategy, we are supported by our strong free cash flow as well as our liquidity position and flexible debt structure. On May 31, 2023, the Company completed its acquisition of montratec GmbH ("montratec"), 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 previous acquisitions of both Dorner and Garvey, and these acquisitions collectively helped to accelerate the Company’s shift to intelligent motion solutions and serve as a platform to expand capabilities in advanced, higher technology automation solutions. On February 3, 2026, the Company completed its acquisition of Kito Crosby for $2,811,907,000, including acquired cash of $184,307,000. The Kito Crosby Acquisition has meaningfully improved the Company's scale, enhanced our collective geographic reach, significantly expanded our lifting securement and consumables portfolio and enhanced our customer value proposition. Regardless of the economic climate and point in the economic cycle, we constantly explore ways to increase operating margins as well as further improve our productivity and competitiveness. We have specific initiatives to reduce lead-times, improve on-time deliveries, reduce warranty costs, and improve material and factory productivity. The initiatives are being driven by the implementation of our business operating system, CMBS. We are working to achieve these strategic initiatives through business simplification, operational excellence, and profitable growth initiatives. We believe these initiatives will enhance future operating margins. Our principal raw materials and components purchases were approximately $428.2 million in fiscal 2026 (or 51% of Cost of products sold) and include steel, consisting of rod, wire, bar, structural, and other forms of steel; electric motors; bearings; gear reducers; castings; steel and aluminum enclosures and wire harnesses; electro-mechanical components; and standard variable drives and controls. These commodities are all available from multiple sources. We purchase most of these raw materials and 35 components from a limited number of strategic and preferred suppliers under agreements which are negotiated on a Company-wide basis through our global purchasing group. Currently, as a result of global inflation and tariffs, we are experiencing higher raw material costs and availability issues for select raw materials and components. To date, we have raised prices to our customers to cover these increased raw material costs and are working with our supply base to prioritize shipments and improve availability of key components. Results of Operations Three months ended June 30, 2026 and June 30, 2025 Net sales in the three months ended June 30, 2026 were $531,461,000, an increase of $295,541,000 or 125.3% from the three months ended June 30, 2025 net sales of $235,920,000. Net sales were positively impacted by $304,764,000 related to the Kito Crosby acquisition as well as a $16,061,000 of favorable sales volumes offset by $34,848,000 of sales loss due to the divestiture of the U.S. Power Chain Hoist and Chain Manufacturing Operations. Foreign currency translation favorably impacted sales by $2,438,000 for the three months ended June 30, 2026. Gross profit in the three months ended June 30, 2026 was $146,269,000, an increase of $69,047,000 or 89.4% from the three months ended June 30, 2025 gross profit of $77,222,000. Gross profit margin was 27.5% in the fiscal 2027 first quarter compared to 32.7% in the fiscal 2026 first quarter. Gross profit increased due to $72,972,000 related to the Kito Crosby acquisition, inclusive of $55,198,000 in inventory step-up amortization expense, offset by $13,889,000 related to the divestiture of the U.S. Power Chain Hoist and Chain Manufacturing Operations. The Company additionally saw increases in gross profit driven by price increases, sales volume and other benefits to material costs specific to the quarter, partially offset by inflation in the cost of products sold. The translation of foreign currencies had a favorable impact on gross profit of $870,000 during the three months ended June 30, 2026. Selling expenses were $54,689,000 and $28,531,000, or 10.3% and 12.1% of net sales, in the three months ended June 30, 2026 and June 30, 2025, respectively. Selling expenses increased in the period for $26,227,000 related to the Kito Crosby Acquisition. Foreign currency translation had a $445,000 unfavorable impact on selling expenses in the three months ended June 30, 2026. General and administrative expenses were $65,362,000 and $30,743,000, or 12.3% and 13.0% of net sales, for the three months ended June 30, 2026 and June 30, 2025, respectively. General and administrative expenses increased $23,580,000 as a result of the Kito Crosby Acquisition, higher net integration and acquisition costs and an increase in the Company's incentive compensation, partially offset by acquisition related cost saving synergies. Foreign currency translation had an unfavorable impact of $224,000 on general and administrative expenses in the three months ended June 30, 2026. Research and development expenses were $8,541,000 and $4,821,000, or 1.6% and 2.0% of net sales, in both the fiscal 2027 and 2026 first quarter, respectively. Kito Crosby contributed an additional $3,853,000 to research and development expenses. Amortization of intangibles was $34,808,000 and $7,635,000 in the three months ended June 30, 2026 and June 30, 2025, respectively, with the increase related to amortization of new intangible assets acquired in the Kito Crosby Acquisition. Interest and debt expense was $47,610,000 in the first quarter ended June 30, 2026 compared to $8,698,000 in the first quarter ended June 30, 2025. The increase is related to borrowings to finance the Kito Crosby Acquisition. Investment income was $1,692,000 in the first quarter ended June 30, 2026 compared to $1,049,000 in the first quarter ended June 30, 2025. Investment income relates to the mark-to-market adjustments on the marketable securities held in the Company’s wholly owned captive insurance subsidiary and the Company's equity method investment in EMC, described in Note 6 of the financial statements. Income tax expense as a percentage of the pre-tax income was (31)% and (16)% in the three months ended June 30, 2026 and June 30, 2025, respectively. Typically, these percentages vary from the U.S. statutory rate of 21%. For the current quarter, the rate was primarily impacted by the establishment of a deferred tax asset valuation allowance related to interest expense carryforwards which the Company does not expect to be able to recognize. The realization of these tax benefits depends on the Company's ability to generate sufficient taxable income, of the appropriate character and jurisdiction, in future periods. Because the Company is in a cumulative loss position for the most recent three year period, the Company has concluded that it is appropriate to record a valuation allowance for these tax benefits until additional positive evidence of future period earnings, in the relevant jurisdictions, is available. The Company estimates these valuation allowances will unfavorably impact the tax rate by approximately 40% to 50% for the fiscal year ended in 2027. 36 Liquidity and Capital Resources Cash, cash equivalents, and restricted cash totaled $98,866,000 at June 30, 2026, an increase of $1,843,000 from the March 31, 2026 balance of $97,023,000. Liquidity We manage our funding and liquidity risk in an integrated manner in support of the current and future cash flow needs of our business. Our primary sources of liquidity are funds generated by operating activities, cash and cash equivalents, available capacity for borrowings on our 2026 Revolving Credit Facility and available capacity for borrowings on our AR Securitization Facility. Our ability to fund our operations, to make planned capital investments, to make scheduled debt payments and to repay or refinance indebtedness depends on our future operating performance and cash flows, which are subject to prevailing economic conditions and financial, business, and other factors, some of which are beyond our control. Our liquidity as of June 30, 2026 was $567,148,000 comprised of cash and cash equivalents of $98,410,000 and $468,738,000 of availability on the 2026 Revolving Credit Facility. There was no additional capacity under the AR Securitization Facility. Our liquidity as of March 31, 2026 was $561,216,000 comprised of cash and cash equivalents of $96,562,000, $458,933,000 of availability on the 2026 Revolving Credit Facility and $5,721,000 of availability on the AR Securitization Facility. We believe that our current resources, together with anticipated cash flows from operations and borrowing capacity under the 2026 Revolving Credit Facility and AR Securitization facilities, will be sufficient to finance our operations, meet our current cash requirements, and fund anticipated capital investments for at least the next 12 months. We may, however, seek additional financing to fund future growth or refinance our existing indebtedness through the debt capital markets, but we cannot be assured that such financing will be available on favorable terms, or at all. Cash flow from operating activities Net cash provided by operating activities was $25,624,000 for the three months ended June 30, 2026 compared to net cash used for operating activities of $18,153,000 for the three months ended June 30, 2025. The net loss of $88,729,000 was offset by adjustments of $63,779,000 which contributed to cash inflows from operations. The non-cash adjustments included $53,201,000 of depreciation and amortization, $4,056,000 of non-cash lease expense, $2,696,000 of stock-based compensation, $2,501,000 of amortization of deferred financing costs and discounts of debt and $2,026,000 of deferred income taxes and related valuation allowances. Changes in working capital decreased cash from operations by $6,387,000, excluding the acquisition-related inventory step-up amortization of $55,198,000. This was the result of increases in accrued expenses of $6,174,000 and a decrease in trade accounts receivable of $5,508,000, offset by a decrease of $7,954,000 in trade payables, an increase in inventory net of acquisition-related step-up amortization of $7,532,000 and an increase in prepaid expenses and other current assets of $2,583,000. Cash provided for operations was also reduced by a decrease of $2,890,000 in other non-current liabilities primarily due to lease payments for the three months ended June 30, 2026. Cash flow from investing activities Net cash used for investing activities was $5,352,000 for the three months ended June 30, 2026 compared to $3,217,000 for the three months ended June 30, 2025. The use of cash for the three months ended June 30, 2026 primarily consisted of $5,668,000 in capital expenditures. Cash flow from financing activities Net cash used for financing activities was $21,225,000 and $977,000 for the three months ended June 30, 2026 and June 30, 2025, respectively. The most significant uses of cash in fiscal 2026 were for $18,368,000 of debt repayments and $2,016,000 of dividend payments. Cash flows from hedging activities related to the Company's cross currency swap are classified as financing activities in the Statements of Cash Flows which resulted in a net cash outflow of $274,000 during the three months ended June 30, 2026. We believe that our cash on hand, cash flows, and borrowing capacity under our Revolving Credit Facility will be sufficient to fund our ongoing operations and debt obligations, and capital expenditures for at least the next twelve months. This belief is dependent upon successful execution of our current business plan and effective working capital utilization. No material restrictions exist in accessing cash held by our non-U.S. subsidiaries. We expect to meet our funding needs with cash provided 37 by our U.S. operations, as well as by repatriating non-U.S. cash. We do not expect to incur significant incremental U.S. taxes as we repatriate funds. As of June 30, 2026, $92,794,000 of cash and cash equivalents were held by foreign subsidiaries. Refer to Note 9 of the financial statements for further discussion of the Company's long-term debt and financing costs. Capital Expenditures In addition to keeping our current equipment and plants properly maintained, we are committed to replacing, enhancing and upgrading our property, plant and equipment to support new product development, improve productivity and customer responsiveness, reduce production costs, increase flexibility to respond effectively to market fluctuations and changes, meet environmental requirements, enhance safety and promote ergonomically correct work stations. Consolidated capital expenditures for the three months ended June 30, 2026 and June 30, 2025 were $5,668,000 and $3,202,000, respectively. We expect capital expenditure spending in fiscal 2027 to range from $50,000,000 to $60,000,000 inclusive of the Kito Crosby business. Inflation and Other Market Conditions Our costs are affected by inflation in the U.S. economy and, to a lesser extent, in non-U.S. economies including those of Europe, Canada, Mexico, South America, and Asia-Pacific. We do not believe that general inflation has had a material effect on our results of operations over the periods presented despite rising inflation due to our ability to pass on rising costs through price increases. We are currently experiencing higher raw material costs as a result of tariffs, which we expect to recover with pricing actions. In the future, we may not be able to pass on these cost increases to our customers. Goodwill Impairment Testing We test goodwill for impairment at least annually and more frequently whenever events occur or circumstances change that indicate there may be impairment. These events or circumstances could include a significant long-term adverse change in the business climate, poor indicators of operating performance, or a sale or disposition of a significant portion of a reporting unit. We test goodwill at the reporting unit level, which is one level below our operating segment. We identify our reporting units by assessing whether the components of our operating segment constitute businesses for which discrete financial information is available and segment management regularly reviews the operating results of those components. We also aggregate components that have similar economic characteristics into single reporting units (for example, similar products and / or services, similar long-term financial results, product processes, classes of customers, etc.). We have four reporting units: the Linear Motion Products reporting unit, the Rest of Products reporting unit, the Precision Conveyance reporting unit and Kito Crosby reporting unit which have goodwill totaling $9,699,000, $263,398,000, $201,357,000, and $946,098,000, respectively, as of June 30, 2026. In February 2026, the Company completed its acquisition of Kito Crosby as described in Note 2. Given its proximity to the Company's goodwill in the prior year, in fiscal 2027 the Company is reassessing its reporting units as the integration of Kito Crosby progresses. We currently do not believe that it is more likely than not that the fair value of any of our reporting units is less than its applicable carrying value. Additionally, we currently do not believe that we have any impairment indicators that could materially impact the financial statements. However, if the projected long-term revenue growth rates, profit margins, or terminal growth rates are significantly lower, and /or the estimated weighted-average cost of capital is higher, future testing may indicate impairment of one or more of the Company’s reporting units and, as a result, the related goodwill may be impaired. Refer to our 2026 Form 10-K for additional information regarding our annual goodwill impairment process. Seasonality and Quarterly Results Quarterly results may be materially affected by the timing of large customer orders, periods of high vacation and holiday concentrations, legal settlements, gains or losses in our portfolio of marketable securities, restructuring charges, favorable or unfavorable foreign currency translation, divestitures and acquisitions. Therefore, the operating results for any particular fiscal quarter are not necessarily indicative of results for any subsequent fiscal quarter or for the full fiscal year. 38 Effects of New Accounting Pronouncements Information regarding the effects of new accounting pronouncements is included in Note 17 to the accompanying condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. 39