Adjusted EBITDA
$111 millionincreased 242%
Q1 FY27
Adjusted EBITDA increased 242% with an adjusted EBITDA margin of 21%. When normalizing for the impacts of the acquisition and divestiture in the prior year period, adjusted EBITDA margins expanded approximately 300 basis points. Excluding one-time benefits, the core business still expanded EBITDA margins by about 100 basis points.
Adjusted EPS
$0.61up $0.11
Q1 FY27
Adjusted EPS grew $0.11 to $0.61 from the prior year period on an as-reported basis, primarily driven by operating profit increases, partially offset by higher interest expense and a higher share count due to the inclusion of common shares issuable upon conversion of the preferred shares.
Credit agreement net leverage ratio
4.9xreduced by 0.2x
Q1 FY27
Reduced our credit agreement net leverage ratio by 0.2x to 4.9x. Debt reduction continues to be our priority for capital allocation, with a target to stay below 4x in FY '28.
Total liquidity
$567.1 million
Q1 FY27
Total liquidity remains strong at $567.1 million, consisting of $98.4 million of cash and cash equivalents and $468.7 million of availability on our revolving credit facility.
Pro forma sales growth
10%
Q1 FY27
Normalizing for both the acquisition and divestiture, pro forma sales growth was 10%.
Pro forma orders growth
9%
Q1 FY27
Normalizing for the acquisition and divestiture, pro forma orders growth was approximately 9% and was broad-based across platforms.
Project-related sales growth (pro forma)
12%
Q1 FY27
On a pro forma basis, project-related sales increased 12% with benefits from both pricing and volume growth from a favorable demand environment.
Short cycle sales growth (pro forma)
9%
Q1 FY27
On a pro forma basis, short cycle sales increased 9% with benefits from both pricing and volume growth from a favorable demand environment.
Adjusted gross margin
38.1%improved 380 bps year-over-year
Q1 FY27
Adjusted gross margin, which removes the impact of the inventory step-up and acquisition integration costs, improved 380 basis points year-over-year.
Working capital use of cash
$20 million betteryear-over-year
Q1 FY27
Normalizing for the non-cash inventory step-up adjustment, working capital was a use of cash in the quarter, as is typical for us in Q1. However, the use of cash was approximately $20 million better than the first quarter last year.
Debt paid down
$18.4 million
Q1 FY27
We paid down $18.4 million in debt in the quarter.
FX impact on sales/EBITDA
unfavorable
FY27 outlook
Our revised guidance also reflects unfavorable foreign exchange movements impacting both sales and adjusted EBITDA, order of magnitude about 30 basis points of that we see for each quarter for the rest of the year relative to our last outlook.
Short cycle orders growth
low single digits
Q2 FY27 quarter-to-date
On a quarter-to-date basis, we are seeing demand in short cycle business up in the low single digits on a quarter-to-date basis so far this quarter.
Price increase total
1% to 2%
FY27
I would anticipate for the year we'll still see something on the 1% to 2% price increase total.
Synergy realization (SG&A)
benefiting SG&A
Q1 FY27
Most of these synergies so far are benefiting SG&A. We expect the COGS-related synergies to pick up steam as the execution continues and benefit later in the year and future years.
CapEx underspend
slightly lighter
Q1 FY27
CapEx was maybe a little lighter than our original expectations for the quarter, and that helped the cash flow a bit.
Legacy CMCO sales growth
low-teens
Q1 FY27
Low-teens growth in the legacy CMCO portfolio.
Legacy Kito Crosby sales growth
high single-digit percentage
Q1 FY27
High single-digit percentage growth in the legacy Kito Crosby portfolio.
Core business EBITDA margin expansion (ex-one-time)
100 bpsyear-over-year
Q1 FY27
Excluding the one-time benefit in Q1, the core business still expanded EBITDA margins by about 100 basis points in the quarter.
Implied rest-of-year EBITDA margin
18.9%
FY27 (rest of year)
The midpoint of the full-year guide is 19.5%, and Q1 was 21%, implying the rest of the year is around 18.9%.
Orders
$568.1 millionincreased $309.6 million or 120%
Q1 FY27
Orders of $568.1 million increased $309.6 million, or 120% from the prior year, largely driven by the benefit of the Kito Crosby acquisition.
Net Sales
$531.5 millionincreased $295.5 million or 125%
Q1 FY27
We delivered net sales of $531.5 million, which increased $295.5 million, or 125% from the prior year, driven by the acquisition of Kito Crosby, volume, pricing, and favorable currency translation, partially offset by the divestiture.
Gross Profit
$146.3 millionincreased $69 million or 89%
Q1 FY27
Gross profit of $146.3 million increased $69 million or 89% versus the prior year on a GAAP basis reflecting the Kito Crosby acquisition, pricing and volume, as well as benefits to material costs specific to the quarter, partially offset by the $55.2 million non-cash inventory step-up expense, the impact of the divestiture, and inflation in COGS.
GAAP Gross Margin
27.5%
Q1 FY27
On a GAAP basis, our gross margin was 27.5%.
SG&A Expenses (GAAP)
$128.6 millionincreased $64.5 million
Q1 FY27
Our SG&A expenses increased $64.5 million to $128.6 million on a GAAP basis due to the addition of Kito Crosby, higher integration costs, and increased incentive compensation expense, partially offset by cost-saving synergies.
Adjusted SG&A
$111.9 millionincreased $57.1 million
Q1 FY27
Adjusted SG&A, which excludes acquisition integration costs and other one-time expenses, increased by $57.1 million to $111.9 million.
Adjusted SG&A as % of sales
21.1%declined 220 bps
Q1 FY27
As a percentage of sales, adjusted SG&A declined 220 basis points to 21.1%, driven by scale benefits from the acquisition and cost synergy realization.
Adjusted EBITDA increase
$78.9 million242%
Q1 FY27
Adjusted EBITDA of $111.5 million increased $78.9 million, or 242%.
Net loss
$88.4 million
Q1 FY27
Net loss in the quarter was $88.4 million on a GAAP basis, primarily due to the non-cash inventory step-up amortization, interest expense, and integration costs.
GAAP Net loss per share
$2.05
Q1 FY27
Net loss in the quarter was $88.4 million, or $2.05 per share on a GAAP basis.
Adjusted net income
$30.5 million
Q1 FY27
Adjusted net income was $30.5 million, or $0.61 a share, up $0.11 from the prior year.