What the changes say
- Kito Crosby is now completed, replacing transaction-closing risks with integration, impairment, controls, and financing risks.
- Debt increased substantially through $1.65 billion Term Loan B and $900 million of 7.125% notes.
- New risks highlight fiscal 2026 impairment charges, Kito internal controls, artificial intelligence, and higher interest-rate exposure.
What changed since the prior 10-K
New
- NewFinancial Risks
increase the cost or reduce the availability of debt financing, and adversely impact customer spending patterns in markets in which we operate
Escalating conflicts could disrupt supply chains, trade routes, markets, European oil and gas supplies, international expansion, taxes, or export controls.
- NewFinancial Risks
An increase in interest rates would increase the cost of servicing our debt and could reduce our profitability, decrease our liquidity and impact our solvency
Higher rates could materially increase servicing costs on variable-rate debt, reducing profitability, cash flow, liquidity, or solvency despite possible hedging.
- NewGeneral Risks
We have recorded impairment charges in fiscal 2026 related to goodwill and other intangible assets acquired pursuant to our prior acquisitions and may be required to recognize additional impairment changes in the future, which could adversely affect our future operating results
Goodwill and intangible assets equal 29.4% of total assets, creating risk of additional material impairment charges after fiscal 2026 charges.
- NewGeneral Risks
We may not be able to implement effective internal control over financial reporting at Kito Crosby in a timely manner or once implemented, such controls may not operate effectively
Kito Crosby lacked public-company financial reporting controls, and Columbus McKinnon may not implement or operate effective controls promptly.
- NewGeneral Risks
regulatory or industry standards with respect to privacy and data protection, and it is possible that these providers may suffer a cyber-security attack that negatively impacts us
Technology changes, privacy laws, SEC cybersecurity disclosure rules, and attacks on third-party providers could harm operations, products, or compliance.
- NewGeneral Risks
Use of artificial intelligence in our operations and product offerings could result in reputational or competitive harm, legal or regulatory liability and adverse impacts on our results of operations
Early use of artificial intelligence could produce errors, legal or regulatory liability, reputational damage, or competitive disadvantage.
Dropped
- DroppedRisks related to the Kito Acquisition
The Kito Acquisition is contingent upon the satisfaction of a number of conditions, including regulatory approval, that may be outside either party’s control and that either party may be unable to satisfy or obtain that could cause the stock purchase agreement to be terminated in accordance with its terms
- DroppedRisks related to the Kito Acquisition
The Kito Acquisition may present certain risks to our business and operations prior to the closing
- DroppedRisks related to the Kito Acquisition
We may fail to successfully close the Kito Acquisition, and if we do successfully close the Kito Acquisition, we may fail to realize all of the anticipated benefits of the Kito Acquisition or those benefits may take longer to realize than expected
- DroppedRisks related to the Kito Acquisition
Upon closing of the Kito Acquisition, the Kito business may underperform relative to our expectations
- DroppedRisks related to the Kito Acquisition
We expect to incur substantial expenses related to the Kito Acquisition and to the integration of Kito into our business, and the expenses may be greater than anticipated due to unexpected events
- DroppedRisks related to the Kito Acquisition
Pursuant to the terms of the Investment Agreement, we are required to recommend that our shareholders approve certain matters and terms relating to the Preferred Shares. We cannot guarantee that our shareholders will approve these matters
Reworded
- 71% rewrittenGeneral Risks
We issued a substantial number of Preferred Shares (as defined below) in connection with the financing of the Kito Crosby Acquisition
The financing is completed: 800,000 Preferred Shares were issued, and their preferential rights may create divergent interests with common shareholders.
Was: We will issue a substantial number of Preferred Shares (as defined below) and incur a substantial amount of indebtedness in connection with the financing of the Kito Acquisition
- 68% rewrittenBusiness Risks
Our growth strategy depends on successful integration of acquisitions, including the recently completed Kito Crosby Acquisition
The risk now refers to integrating the recently completed Kito Crosby Acquisition rather than integrating it after closing.
Was: Our growth strategy depends on successful integration of acquisitions, including upon closing of such transaction, the Kito Acquisition
- 58% rewrittenBusiness Risks
Our future operating results may be affected by price fluctuations and trade tariffs on steel, aluminum, and other raw materials purchased to manufacture our products. We may not be able to pass on increases in raw material costs to our customers
No substantive change is shown; the discussion still covers volatile steel, aluminum, component costs and tariffs.
- 54% rewrittenFinancial Risks
In connection with the completion of the Kito Crosby Acquisition, our indebtedness has increased significantly. Our indebtedness could limit our cash flow available for operations and our flexibility
Debt details changed substantially: $1.65 billion Term Loan B, $500 million revolver, $900 million 7.125% notes, and $1.457 billion outstanding.
Was: In connection with the completion of the Precision Conveyance acquisitions, our indebtedness has increased significantly. Our indebtedness could limit our cash flow available for operations and our flexibility
- 46% rewrittenFinancial Risks
Our operations outside the U.S. pose certain risks that may adversely impact sales and earnings
Japan and Australia were added to the listed foreign operations; non-U.S. sales remained approximately 44%.
- 44% rewrittenGeneral Risks
Our business operations may be adversely affected by information technology systems interruptions or intrusion
No substantive change is shown; the discussion still covers IT interruptions, cyberattacks, downtime, data compromise, and financial losses.
- 43% rewrittenFinancial Risks
We are subject to debt covenant restrictions
The covenant trigger now applies when New Revolving Facility borrowings exceed 30% of commitments, replacing the prior any-borrowing condition.
- 22% rewrittenFinancial Risks
We are subject to currency fluctuations from our sales outside the U.S
Foreign-currency revenue increased from approximately $425.5 million to $525.1 million, and Japanese yen was added to the principal currencies.
All 33 risk factors
Headings as the filing states them, in filing order.
Business Risks
- 01Our business is affected by industrial economic and macroeconomic conditions
- 02Our business, particularly with respect to our material handling and precision conveyance products, is highly competitive and subject to consolidation of competitors. Increased competition could reduce our sales, earnings, and profitability
- 03Our growth strategy depends on successful integration of acquisitions, including the recently completed Kito Crosby Acquisition68% rewritten
- 04Our future operating results may be affected by price fluctuations and trade tariffs on steel, aluminum, and other raw materials purchased to manufacture our products. We may not be able to pass on increases in raw material costs to our customers58% rewritten
- 05Our results of operations could be materially adversely affected if we are unable to obtain sufficient pricing for our products and services to meet our profitability expectations
- 06If critical components or raw materials used to manufacture our products become scarce or unavailable, then we may incur delays in manufacturing and delivery of our products, which has damaged, and could continue to damage, our business, results of operations and financial condition
- 07Our backlog is subject to modification, termination or reduction of orders, which could negatively impact our sales
- 08We rely in large part on independent distributors for sales of our products
- 09Our future success depends, in part, on our ability to continue to attract, develop, engage and retain qualified employees
- 10Our ability to understand our customers’ specific preferences and requirements, and to develop, manufacture and market products that meet customer demand as we expand into additional international markets, could significantly affect our business results
Financial Risks
- 11In connection with the completion of the Kito Crosby Acquisition, our indebtedness has increased significantly. Our indebtedness could limit our cash flow available for operations and our flexibility54% rewritten
- 12Our ability to raise capital in the future may be limited
- 13Our operations outside the U.S. pose certain risks that may adversely impact sales and earnings46% rewritten
- 14increase the cost or reduce the availability of debt financing, and adversely impact customer spending patterns in markets in which we operateNew
- 15We are subject to currency fluctuations from our sales outside the U.S22% rewritten
- 16We are subject to debt covenant restrictions43% rewritten
- 17A ratings downgrade or other negative action by a ratings organization could adversely affect the trading price of our common stock
- 18An increase in interest rates would increase the cost of servicing our debt and could reduce our profitability, decrease our liquidity and impact our solvency New
Legal Risks
- 19Our products involve risks of personal injury and property damage, which exposes us to potential liability
- 20We are subject to various environmental laws, which may require us to expend significant capital, incur substantial cost and could lower our margins
- 21We may face claims of infringement on the intellectual property of others, or others may infringe upon our intellectual property
- 22We rely on subcontractors or suppliers to perform their contractual obligations
General Risks
- 23We have recorded impairment charges in fiscal 2026 related to goodwill and other intangible assets acquired pursuant to our prior acquisitions and may be required to recognize additional impairment changes in the future, which could adversely affect our future operating resultsNew
- 24We may not be able to implement effective internal control over financial reporting at Kito Crosby in a timely manner or once implemented, such controls may not operate effectivelyNew
- 25The market price of our common stock has been, and may in the future continue to be, volatile
- 26Adverse changes in global economic conditions may negatively affect our industry, business, and results of operations
- 27Climate change, or legal, regulatory or market measures to address climate change, may materially adversely affect our financial condition and business operations
- 28Our business operations may be adversely affected by information technology systems interruptions or intrusion44% rewritten
- 29regulatory or industry standards with respect to privacy and data protection, and it is possible that these providers may suffer a cyber-security attack that negatively impacts usNew
- 30Use of artificial intelligence in our operations and product offerings could result in reputational or competitive harm, legal or regulatory liability and adverse impacts on our results of operationsNew
- 31We operate in many different jurisdictions, and we could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-corruption laws
- 32We depend on our management team and the loss of any member could adversely affect our operations
- 33We issued a substantial number of Preferred Shares (as defined below) in connection with the financing of the Kito Crosby Acquisition71% rewritten
Other Columbus Mckinnon 10-Ks
- FY2025 10-K risk factors33 risks
Columbus McKinnon's risk profile is heavily defined by transaction execution risks, specifically the pending Kito Acquisition, associated debt, and preferred share issuance.
Filed May 28, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.