COLUMBUS MCKINNON CORP
For the period ended Mar 31, 2026. Filed Jun 8, 2026.
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FY2026 · Filed Jun 8, 2026
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Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of Columbus McKinnon Corporation
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Columbus McKinnon Corporation (the Company) as of March 31, 2026 and 2025, the related consolidated statements of operations, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended March 31, 2026, and the related notes and financial statement schedule listed in the Index at Item 15(2) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at March 31, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2026, in conformity with U.S. 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, 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
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
| Valuation of Goodwill for the Precision Conveyance Reporting Unit | |
| Description of the Matter | At March 31, 2026, the Company’s goodwill was $1,409 million, of which $201 million related to the Precision Conveyance reporting unit. As discussed in Notes 2 and 9 of the consolidated financial statements, goodwill is tested for impairment at least annually, or more frequently if circumstances warrant, at the reporting unit level. The Company performed its annual goodwill impairment test over the Precision Conveyance reporting unit in the fourth quarter of 2026 using a discounted cash flow model. 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. |
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| 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 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
We have served as the Company’s auditor since at least 1917, but we are unable to determine the specific year.
Charlotte, North Carolina
June 8, 2026
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