Columbus McKinnon to Raise $1.23B via Debt Offering >CMCO

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Crane and its peers.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 15 general industrial machinery stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 9.3% on average since the latest earnings results.

Crane

Based in Connecticut, Crane is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.

Crane reported revenues of $589.2 million, up 7.5% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ adjusted operating income estimates.

Max Mitchell, Crane's Chairman, President and Chief Executive Officer, stated: "We are proud to report another strong quarter, with adjusted EPS up 27% and core sales growth of 5.6%. This quarter’s earnings performance was ahead of our expectations, and further highlights our differentiated technology, commercial excellence focus and consistent operational discipline.

Interestingly, the stock is up 6.2% since reporting and currently trades at $203.25.

Best Q3: Icahn Enterprises

Founded in 1987, Icahn Enterprises is a diversified holding company primarily engaged in investment and asset management across various sectors.

Icahn Enterprises reported revenues of $2.51 billion, down 9.9% year on year, outperforming analysts’ expectations by 4.3%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3% since reporting. It currently trades at $7.88.

Weakest Q3: Albany

Founded in 1895, Albany is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.

Albany reported revenues of $261.4 million, down 12.4% year on year, falling short of analysts’ expectations by 12.8%. It was a disappointing quarter as it posted a miss of analysts’ Engineered Composites revenue estimates and a significant miss of analysts’ revenue estimates.

Albany delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 6.7% since the results and currently trades at $58.28.

Read our full analysis of Albany’s results here.

Hillenbrand

Hillenbrand, Inc. is an industrial company that designs, manufactures, and sells highly engineered processing equipment and solutions for various industries.

Hillenbrand reported revenues of $652.1 million, down 22.1% year on year. This print surpassed analysts’ expectations by 9.8%. It was an incredible quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Hillenbrand had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $31.82.

Read our full, actionable report on Hillenbrand here, it’s free.

Columbus McKinnon

With 19 different brands across the globe, Columbus McKinnon offers material handling equipment for the construction, manufacturing, and transportation industries.

Columbus McKinnon reported revenues of $261 million, up 7.7% year on year. This number beat analysts’ expectations by 8.5%. Overall, it was a stunning quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 38% since reporting and currently trades at $20.77.

Read our full, actionable report on Columbus McKinnon here, it’s free.

What Happened?

A number of stocks jumped in the afternoon session after markets rotated out of tech names to position themselves for a massive injection of government spending. 

The sector was ignited by President Trump's call for a $1.5 trillion defense budget for 2027, a significant increase that sent defense contractors surging. Northrop Grumman jumped over 10% and Lockheed Martin gained nearly 8%, acting as the primary engine for the sector's outperformance.Beyond the immediate defense rally, the industrial sector benefited from a broader stabilization in energy costs, with crude prices rebounding. This combination of policy-driven demand and stabilizing input costs made heavy industry an attractive destination.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• General Industrial Machinery company Albany jumped 5.3%. Is now the time to buy Albany? Access our full analysis report here, it’s free.
• General Industrial Machinery company L.B. Foster jumped 3.3%. Is now the time to buy L.B. Foster? Access our full analysis report here, it’s free.
• General Industrial Machinery company Kadant jumped 5.7%. Is now the time to buy Kadant? Access our full analysis report here, it’s free.
• General Industrial Machinery company Illinois Tool Works jumped 3%. Is now the time to buy Illinois Tool Works? Access our full analysis report here, it’s free.
• General Industrial Machinery company Columbus McKinnon jumped 3.4%. Is now the time to buy Columbus McKinnon? Access our full analysis report here, it’s free.

Zooming In On Kadant (KAI)

Kadant’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 29 days ago when the stock gained 4.7% on the news that the Federal Reserve lowered its benchmark interest rate by a quarter-percentage point, signaling a more accommodative monetary policy. 

This dovish action, combined with highly accommodating signals from Chair Jerome Powell and the Federal Open Market Committee (FOMC), sent the Dow Jones Industrial Average and S&P 500 surging.The market's bullish reaction was rooted in several key takeaways from the Fed's announcement. Most significantly, the central bank confirmed it would begin expanding its balance sheet by buying short-term bonds, a move that injects critical liquidity and lowers short-term Treasury yields. 

Furthermore, the Fed signaled a shift in priority by removing language that described the labor market as "remaining low," suggesting it would be more focused on supporting economic growth. While the Fed's official forecast projected only one cut for the next year, traders immediately priced in the expectation of more aggressive easing, banking on at least two rate reductions. This widespread anticipation of sustained, low borrowing costs and the virtual certainty that rate hikes would be off the table boosted corporate valuations and created powerful momentum for the equity market rally.

Kadant is up 8.6% since the beginning of the year, but at $310.93 per share, it is still trading 22% below its 52-week high of $398.39 from February 2025. Investors who bought $1,000 worth of Kadant’s shares 5 years ago would now be looking at an investment worth $2,098.

Columbus McKinnon has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 10% to $17.25 per share while the index has gained 11.2%.

Is there a buying opportunity in Columbus McKinnon, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free for active Edge members.

Why Do We Think Columbus McKinnon Will Underperform?

We're swiping left on Columbus McKinnon for now. Here are three reasons why CMCO doesn't excite us and a stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Columbus McKinnon’s 7.4% annualized revenue growth over the last five years was mediocre. This was below our standard for the industrials sector.

2. EPS Barely Growing

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Columbus McKinnon’s unimpressive 6.9% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.

3. Free Cash Flow Margin Dropping

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

As you can see below, Columbus McKinnon’s margin dropped by 3.8 percentage points over the last five years. This along with its unexciting margin put the company in a tough spot, and shareholders are likely hoping it can reverse course. If the trend continues, it could signal it’s becoming a more capital-intensive business. Columbus McKinnon’s free cash flow margin for the trailing 12 months was 3%.

Final Judgment

Columbus McKinnon falls short of our quality standards. That said, the stock currently trades at 6.5× forward P/E (or $17.25 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better stocks to buy right now. Let us point you toward the most entrenched endpoint security platform on the market.

What Happened?

Shares of material handling equipment manufacturer Columbus McKinnon jumped 3.4% in the afternoon session after the company presented at a Bank of America conference, highlighting its strong market position and growth prospects. The presentation detailed the company's expansion into high-growth areas like automation and linear motion. Columbus McKinnon pointed to a total addressable market of $34 billion. Management also noted that its growth was supported by major industry trends, including labor shortages and electrification. These factors are driving demand for the company's lifting and automation solutions, which help customers handle critical materials. The positive outlook likely boosted investor confidence.

After the initial pop the shares cooled down to $16.95, up 3.4% from previous close.

Is now the time to buy Columbus McKinnon? Access our full analysis report here.

What Is The Market Telling Us

Columbus McKinnon’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 29 days ago when the stock dropped 4.2% on the news that markets became increasingly wary of high valuations following a significant AI-driven rally. 

The tech-heavy Nasdaq fell approximately 1.4% as a wave of caution swept through the market. A key example of this trend is Palantir Technologies, which saw its shares drop around 7% despite reporting record quarterly results that surpassed analyst estimates and raising its full-year revenue outlook. This seemingly contradictory movement highlighted a broader sentiment shift. Investors appeared to be engaging in profit-taking, concerned that the recent surge in AI-related stocks had led to stretched valuations. This broader market caution affected high-growth technology companies that had previously surged on AI optimism but faced increased scrutiny, signaling a potential cooling-off period for the sector. Adding serious weight to this caution, leadership at both Goldman Sachs and Morgan Stanley highlighted the possibility of a correction in the equity markets over the next couple of years.Despite the euphoria driven by AI optimism and the promise of future rate cuts, these banks viewed this cooling-off period not as a disaster, but as a necessary and healthy feature of a long-term bull market.

Columbus McKinnon is down 54.1% since the beginning of the year, and at $16.95 per share, it is trading 58.3% below its 52-week high of $40.59 from December 2024. Investors who bought $1,000 worth of Columbus McKinnon’s shares 5 years ago would now be looking at an investment worth $432.49.

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the general industrial machinery industry, including Albany and its peers.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand for general industrial machinery companies. Those who innovate and create digitized solutions can spur sales and speed up replacement cycles, but all general industrial machinery companies are still at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 14 general industrial machinery stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Weakest Q3: Albany

Founded in 1895, Albany is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.

Albany reported revenues of $261.4 million, down 12.4% year on year. This print fell short of analysts’ expectations by 12.8%. Overall, it was a disappointing quarter for the company with a miss of analysts’ Engineered Composites revenue estimates and a significant miss of analysts’ revenue estimates.

Gunnar Kleveland, Albany International’s President and Chief Executive Officer said, “As announced last week, we are continuing the transformation of Albany International and have initiated a strategic review of our structures assembly business and its associated production site in Salt Lake City, including a potential sale of all or part of the site. Alongside this effort we took decisive action to de-risk our program assumptions which marks an important first step in resolving the issue. While some near-term uncertainty remains, our remaining Aerospace portfolio is becoming more strategically aligned with our priorities to secure growth and new business where we have a distinct competitive advantage that leverages our differentiated advanced technologies and delivers greater returns.”

Albany delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 16.9% since reporting and currently trades at $45.35.

Read our full report on Albany here, it’s free for active Edge members.

Best Q3: Icahn Enterprises

Founded in 1987, Icahn Enterprises is a diversified holding company primarily engaged in investment and asset management across various sectors.

Icahn Enterprises reported revenues of $2.51 billion, down 9.9% year on year, outperforming analysts’ expectations by 4.3%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $8.89.

Is now the time to buy Icahn Enterprises? Access our full analysis of the earnings results here, it’s free for active Edge members.

L.B. Foster

Founded with a $2,500 loan, L.B. Foster is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.

L.B. Foster reported revenues of $138.3 million, flat year on year, falling short of analysts’ expectations by 10.4%. It was a softer quarter as it posted a significant miss of analysts’ revenue and EBITDA estimates.

As expected, the stock is down 2.9% since the results and currently trades at $26.72.

Read our full analysis of L.B. Foster’s results here.

Columbus McKinnon

With 19 different brands across the globe, Columbus McKinnon offers material handling equipment for the construction, manufacturing, and transportation industries.

Columbus McKinnon reported revenues of $261 million, up 7.7% year on year. This result topped analysts’ expectations by 8.5%. Overall, it was a stunning quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

The stock is up 2.1% since reporting and currently trades at $15.41.

Read our full, actionable report on Columbus McKinnon here, it’s free for active Edge members.

Kadant

Headquartered in Massachusetts, Kadant is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.

Kadant reported revenues of $271.6 million, flat year on year. This print surpassed analysts’ expectations by 4.2%. It was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Kadant had the weakest full-year guidance update among its peers. The stock is down 12.1% since reporting and currently trades at $262.10.

Read our full, actionable report on Kadant here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.