COLUMBUS MCKINNON CORP

Previous wording

Our revenue base is geographically diverse with approximately 43% of net sales derived from customers outside the U.S. for the six months ended September 30, 2025. 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.

Current wording

Our revenue base is geographically diverse with approximately 43% of net sales derived from customers outside the U.S. for the nine months ended December 31, 2025. 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.

Previous wording

Our principal raw materials and components purchases were approximately $375 million in fiscal 2025 (or 59% of Cost of product 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 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.

Current wording

Our principal raw materials and components purchases were approximately $375 million in fiscal 2025 (or 59% 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 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.

Previous wording

On February 10, 2025, the Company announced that it had entered into a definitive agreement to acquire all of the issued and outstanding equity of Kito Crosby. The Kito Acquisition’s closing is subject to certain conditions, including regulatory approval as required by the HSR Act and other customary closing conditions described in the Stock Purchase Agreement entered into by the Company and Kito Crosby in connection with the Kito Acquisition. The Kito Acquisition is expected to meaningfully improve the Company's scale, enhance our collective geographic reach, significantly expand our lifting securement and consumables portfolio and enhance our customer value proposition.

Current wording

On February 10, 2025, the Company announced that it had entered into a definitive agreement to acquire all of the issued and outstanding equity of Kito Crosby. The Kito Crosby Acquisition is expected to meaningfully improve the Company's scale, enhance our collective geographic reach, significantly expand our lifting securement and consumables portfolio and enhance our customer value proposition.

Previous wording

With global engineering, manufacturing, distribution, and operations, Kito Crosby provides a broad range of products and solutions for the most demanding applications. Kito Crosby’s people, products, solutions, and service have innovated the lifting and securement industry throughout its long history. Kito Crosby's iconic brands include Kito, Crosby, Harrington, Gunnebo Industries, and Peerless. We expect that the Kito Acquisition will strengthen our core lifting business and further the Company's position as 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. The Company anticipates the Kito Acquisition to close during fiscal 2026.

Current wording

With global engineering, manufacturing, distribution, and operations, Kito Crosby provides a broad range of products and solutions for the most demanding applications. Kito Crosby’s people, products, solutions, and service have innovated the lifting and securement industry throughout its long history. Kito Crosby's iconic brands include Kito, Crosby, Harrington, Gunnebo Industries, and Peerless. We expect that the Kito Crosby Acquisition will strengthen our core lifting business and further the Company's position as 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. The Kito Crosby Acquisition closed on February 3, 2026, which was subsequent to the quarter ended December 31, 2025.

Previous wording

Net sales in the three months ended September 30, 2025 were $261,047,000, an increase of $18,773,000 or 7.7% from the three months ended September 30, 2024 net sales of $242,274,000. Net sales were positively impacted by $9,033,000 of sales volume and $4,955,000 due to price increases. Foreign currency translation favorably impacted sales by $4,785,000 for the three months ended September 30, 2025.

Current wording

Net sales in the three months ended December 31, 2025 were $258,655,000, an increase of $24,517,000 or 10.5% from the three months ended December 31, 2024 net sales of $234,138,000. Net sales were positively impacted by $11,733,000 of sales volume and $6,076,000 due to price increases. Foreign currency translation favorably impacted sales by $6,708,000 for the three months ended December 31, 2025.

Previous wording

Gross profit in the three months ended September 30, 2025 was $90,160,000, an increase of $15,417,000 or 20.6% from the three months ended September 30, 2024 gross profit of $74,743,000. Gross profit margin was 34.5% in the fiscal 2026 second quarter compared to 30.9% in the fiscal 2025 second quarter. Higher sales volume and favorable mix increased gross profit by $3,393,000. In addition, gross profit was increased by $10,480,000 due to net factory consolidation activities in the prior year, $655,000 due to a net start-up costs related to the Monterrey, Mexico facility, $171,000 due to Hurricane Helene's costs recognized in the prior year, and a $11,000 of net business realignment costs. Current year acquisition and integration costs reduced gross profit by $67,000 related to the pending acquisition of Kito Crosby. Material inflation and other manufacturing cost changes net of price increases contributed to a reduction in gross profit of $986,000. The translation of foreign currencies had a favorable impact on gross profit of $1,760,000 during the three months ended September 30, 2025.

Current wording

Gross profit in the three months ended December 31, 2025 was $89,157,000, an increase of $7,060,000 or 8.6% from the three months ended December 31, 2024 gross profit of $82,097,000. Gross profit margin was 34.5% in the fiscal 2026 third quarter compared to 35.1% in the fiscal 2025 third quarter. Higher sales volume increased gross profit by $1,673,000. In addition, gross profit was increased compared to the prior year by $1,555,000 due to lower start-up costs related to the Monterrey, Mexico facility, $460,000 of lower business realignment costs, $409,000 of lower factory consolidation activities and by $261,000 of lower product liability expense in the quarter. Price increases net of material inflation and other manufacturing cost changes contributed to an increase in gross profit of $317,000. The translation of foreign currencies had a favorable impact on gross profit of $2,385,000 during the three months ended December 31, 2025.

Previous wording

Selling expenses were $29,122,000 and $26,926,000, or 11.2% and 11.1% of net sales, in the fiscal 2026 and 2025 second quarters, respectively. Foreign currency translation had a $715,000 unfavorable impact on selling expenses in the three months ended September 30, 2025 with the remaining increase attributable to overall increase in sales during the period.

Current wording

Selling expenses were $28,777,000 and $27,348,000, or 11.1% and 11.7% of net sales, in the fiscal 2026 and 2025 third quarters, respectively. Foreign currency translation had a $956,000 unfavorable impact on selling expenses in the three months ended December 31, 2025 with the remaining increase attributable to overall increase in sales during the period.

Previous wording

General and administrative expenses were $36,386,000 and $23,363,000, or 13.9% and 9.6% of net sales, for the three months ended September 30, 2025 and September 30, 2024, respectively. General and administrative expenses increased $9,929,000 as a result of Kito Acquisition related expenses and higher employee related costs of $2,515,000. Foreign currency translation had an unfavorable impact of $314,000 on general and administrative expenses in the three months ended September 30, 2025.

Current wording

General and administrative expenses were $32,148,000 and $24,233,000, or 12.4% and 10.3% of net sales, for the three months ended December 31, 2025 and December 31, 2024, respectively. General and administrative expenses increased $6,342,000 as a result of the Kito Crosby Acquisition and higher employee related costs of $3,188,000. These increases were offset by $1,299,000 of expense in fiscal 2025 to record a reserve against an accounts receivable balance for a customer who declared bankruptcy in January of 2025 which did not recur in fiscal 2026. Foreign currency translation had an unfavorable impact of $407,000 on general and administrative expenses in the three months ended December 31, 2025.

Previous wording

Research and development expenses were $4,781,000 and $6,102,000, or 1.8% and 2.5% of net sales, in both the fiscal 2026 and 2025 second quarter, respectively. The reduction in research and development expenses is primarily related to reduced labor and benefit costs.

Current wording

Research and development expenses were $4,442,000 and $5,325,000, or 1.7% and 2.3% of net sales, in both the fiscal 2026 and 2025 third quarter, respectively. The reduction in research and development expenses is primarily related to reduced labor and benefit costs.

Previous wording

Amortization of intangibles was $7,683,000 and $7,547,000 in the fiscal 2026 and 2025 second quarters, respectively, with the fluctuations related to foreign currency during the respective periods.

Current wording

Amortization of intangibles was $7,622,000 and $7,501,000 in the fiscal 2026 and 2025 third quarters, respectively, with the fluctuations related to foreign currency during the respective periods.

Previous wording

Interest and debt expense was $8,747,000 in the second quarter ended September 30, 2025 compared to $8,352,000 in the second quarter ended September 30, 2024. The increase is the result of increasing variable interest rates year over year due to the expiration of a favorable interest rate swap in February 2025.

Current wording

Interest and debt expense was $8,312,000 in the third quarter ended December 31, 2025 compared to $7,698,000 in the third quarter ended December 31, 2024. The increase is the result of increasing variable interest rates year over year due to the expiration of a favorable interest rate swap in February 2025.

Previous wording

Investment income was $521,000 in the second quarter ended September 30, 2025 compared to $610,000 in the second quarter ended and September 30, 2024. 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.

Current wording

Investment income was $395,000 in the third quarter ended December 31, 2025 compared to $54,000 in the third quarter ended December 31, 2024. 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.

Previous wording

Income tax benefit as a percentage of the pre-tax income was (46)% and income tax benefit as a percentage of the pre-tax loss was 25% in the second quarters ended September 30, 2025 and September 30, 2024, respectively. Typically, these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.

Current wording

Income tax expense as a percentage of the pre-tax income was 23% was 33% in the three months ended December 31, 2025 and December 31, 2024, respectively. Typically, these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.

Previous wording

Net sales in the six months ended September 30, 2025 were $496,967,000, an increase of $14,967,000 or 3.1% from the six months ended September 30, 2024 net sales of $482,000,000. Net sales were positively impacted by $7,398,000 due to price increases, offset by $342,000 of unfavorable sales volume. Foreign currency translation favorably impacted sales by $7,911,000 for the six months ended September 30, 2025

Current wording

Net sales in the nine months ended December 31, 2025 were $755,622,000, an increase of $39,484,000 or 5.5% from the nine months ended December 31, 2024 net sales of $716,138,000. Net sales were positively impacted by $13,474,000 due to price increases, and $11,391,000 of favorable sales volume. Foreign currency translation favorably impacted sales by $14,619,000 for the nine months ended December 31, 2025.

Previous wording

Gross profit in the six months ended September 30, 2025 was $167,382,000, an increase of $3,609,000 or 2.2% from the six months ended September 30, 2024 gross profit of $163,773,000. Gross profit margin was 33.7% in the six months ended September 30, 2025 compared to 34.0% in the six months ended September 30, 2024. Gross profit was increased by $10,055,000 due to net factory consolidation activities in the prior year, $379,000 due to net start-up costs related to the Monterrey, Mexico facility and $171,000 of costs due to Hurricane Helene recognized in the prior year. Lower sales volume and unfavorable mix reduced gross profit by $2,044,000. In addition, gross profit was reduced by $982,000 of net business realignment costs and current year acquisition and integration costs reduced gross profit by $67,000 related to the pending acquisition of Kito Crosby. Material inflation and other manufacturing cost changes net of price increases further contributed to a reduction in gross profit of $6,695,000. The translation of foreign currencies had a favorable impact on gross profit of $2,792,000 during the six months ended September 30, 2025.

Current wording

Gross profit in the nine months ended December 31, 2025 was $256,539,000, an increase of $10,669,000 or 4.3% from the nine months ended December 31, 2024 gross profit of $245,870,000. Gross profit margin was 34.0% in the nine months ended December 31, 2025 compared to 34.3% in the nine months ended December 31, 2024. Gross profit compared to the prior year increased by $10,464,000 due to lower factory consolidation activities, $1,934,000 due to lower start-up costs related to the Monterrey, Mexico facility, $261,000 of lower product liability expense and $171,000 of costs due to Hurricane Helene recognized in the prior year. In addition, gross profit was reduced by $522,000 of net business realignment costs, and current year acquisition and integration costs reduced gross profit by $67,000 related to the Kito Crosby Acquisition. Unfavorable mix reduced gross profit by $371,000. Price increases net of material inflation and other manufacturing cost changes reduced gross profit by $6,378,000. The translation of foreign currencies had a favorable impact on gross profit of $5,177,000 during the nine months ended December 31, 2025.

Previous wording

Selling expenses were $57,653,000 and $54,696,000, or 11.6% and 11.3% of net sales, in the six months ended September 30, 2025 and 2024, respectively. Foreign currency translation had a $1,322,000 unfavorable impact on selling expenses in the six months ended September 30, 2025 with the remaining increase attributable to overall increase in sales during the period.

Current wording

Selling expenses were $86,430,000 and $82,044,000, or 11.4% and 11.5% of net sales, in the nine months ended December 31, 2025 and 2024, respectively. Foreign currency translation had a $2,278,000 unfavorable impact on selling expenses in the nine months ended December 31, 2025 with the remaining increase attributable to overall increase in sales during the period.

Previous wording

General and administrative expenses were $67,129,000 and $49,810,000, or 13.5% and 10.3% of net sales, in the six months ended September 30, 2025 and 2024, respectively. General and administrative expenses increased $18,032,000 as a result of Kito Acquisition related expenses offset by lower employee salary and benefit costs of $432,000. Foreign currency translation had an unfavorable impact of $503,000 on general and administrative expenses in the six months ended September 30, 2025.

Current wording

General and administrative expenses were $99,277,000 and $74,043,000, or 13.1% and 10.3% of net sales, in the nine months ended December 31, 2025 and 2024, respectively. General and administrative expenses increased $24,373,000 as a result of the Kito Crosby Acquisition and higher employee related costs of $2,756,000. These increases were offset by $1,299,000 of expense to record a reserve against an accounts receivable balance for a customer who declared bankruptcy in January of 2025. Foreign currency translation had an unfavorable impact of $910,000 on general and administrative expenses in the nine months ended December 31, 2025.

Previous wording

Research and development expenses were $9,602,000 and $12,268,000, or 1.9% and 2.5% of net sales, in the six months ended September 30, 2025 and 2024, respectively. The reduction in research and development expenses is primarily related to reduced labor and benefit costs.

Current wording

Research and development expenses were $14,044,000 and $17,593,000, or 1.9% and 2.5% of net sales, in the nine months ended December 31, 2025 and 2024, respectively. The reduction in research and development expenses is primarily related to reduced labor and benefit costs.

Previous wording

Amortization of intangibles was $15,318,000 and $15,047,000 in the six months ended September 30, 2025 and 2024, respectively, with fluctuations related to foreign currency during the respective periods.

Current wording

Amortization of intangibles was $22,940,000 and $22,548,000 in the nine months ended December 31, 2025 and 2024, respectively, with fluctuations related to foreign currency during the respective periods.

Previous wording

Interest and debt expense was $17,445,000 in the six months ended September 30, 2025 compared to $16,587,000 in the six months ended September 30, 2024. The increase is the result of increasing variable interest rates year over year due to the expiration of a favorable interest rate swap in February 2025.

Current wording

Interest and debt expense was $25,757,000 in the nine months ended December 31, 2025 compared to $24,285,000 in the nine months ended December 31, 2024. The increase is the result of increasing variable interest rates year over year due to the expiration of a favorable interest rate swap in February 2025.

Previous wording

Investment income was $1,570,000 in the six months ended September 30, 2025 compared to $819,000 in the six months ended September 30, 2024. 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.

Current wording

Investment income was $1,965,000 in the nine months ended December 31, 2025 compared to $873,000 in the nine months ended December 31, 2024. 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.

Previous wording

Income tax benefit as a percentage of the pre-tax income was (78)% and income tax benefit as a percentage of the pre-tax loss was 19% in the six months ended September 30, 2025 and September 30, 2024, respectively. Typically, these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.

Current wording

Income tax expense as a percentage of the pre-tax income was 6% and income tax benefit as a percentage of the pre-tax loss was (22)% in the nine months ended December 31, 2025 and December 31, 2024, respectively. Typically, these percentages vary from the U.S. statutory rate of 21% primarily due to varying statutory tax rates at the Company's foreign subsidiaries, and the jurisdictional mix of income for these subsidiaries.

Previous wording

During the three months ended September 30, 2025, income tax expense was favorably impacted by the phased reduction of the German corporate income tax rate under the New German Tax Law beginning in 2028, with the full reduction effective in 2032. The Company's effective tax rate for the three months ended September 30, 2025, also reflects an unfavorable impact due to the recording of a U.S. state tax reserve. Additionally, during the three months ended September 30, 2025 and September 30, 2024, the impact of equity compensation increased income tax expense. Refer to Note 13 of the financial statements for additional information.

Current wording

During the nine months ended December 31, 2025, income tax was favorably impacted by the Act for an Immediate Tax Investment Program to Strengthen Germany as a Business Location (the "New German Tax Law"). The New German Tax Law enacted in July 2025 will lower the German corporate income tax rate from 15% to 10% by 2032. The associated revaluation of the Company’s German net deferred tax liabilities results in an income tax benefit of approximately $3,200,000 for the nine months ended December 31, 2025. The effective tax rate for the nine months ended December 31, 2025 also reflects an unfavorable impact of approximately $749,000 related to the recognition of a U.S. state tax reserve. The reserve primarily relates to the valuation of state tax attributes and if settled would have minimal cash tax impact. Refer to Note 13 of the financial statements for additional information.

Previous wording

Cash, cash equivalents, and restricted cash totaled $28,289,000 at September 30, 2025, a decrease of $25,644,000 from the March 31, 2025 balance of $53,933,000.

Current wording

Cash, cash equivalents, and restricted cash totaled $35,734,000 at December 31, 2025, a decrease of $18,199,000 from the March 31, 2025 balance of $53,933,000.

Previous wording

Net cash provided by operating activities was $248,000 for the six months ended September 30, 2025 compared to net cash used for operating activities of $1,370,000 for the six months ended September 30, 2024. Net income of $2,697,000 along with non-cash adjustments of $27,094,000 contributed to cash inflows from operations. The non-cash adjustments included $24,485,000 of depreciation and amortization, $4,820,000 of non-cash lease expense, and $4,626,000 of stock-based compensation offset by $7,940,000 of deferred income taxes and related valuation allowances. Changes in working capital which reduced cash from operations by $24,615,000 as a result of an increase of $11,256,000 in inventories, an increase in trade accounts receivable of $8,570,000, an increase in prepaid expenses and other current assets of $6,077,000, and a decrease in accrued expenses of $127,000, offset by an increase of $1,415,000 in trade payables. The increase in inventories relates to purchases made in advance of future tariffs. Cash provided for operations was also reduced by a decrease of $6,359,000 in other non-current liabilities primarily due to lease payments for the six months ended September 30, 2025.

Current wording

Net cash provided by operating activities was $20,595,000 for the nine months ended December 31, 2025 compared to net cash provided by operating activities of $10,000,000 for the nine months ended December 31, 2024. Net income of $8,695,000 along with non-cash adjustments of $40,858,000 contributed to cash inflows from operations. The non-cash adjustments included $36,620,000 of depreciation and amortization, $7,779,000 of stock-based compensation and $7,321,000 of non-cash lease expense offset by $11,472,000 of deferred income taxes and related valuation allowances. Changes in working capital which reduced cash from operations by $22,686,000 as a result of an increase of $15,997,000 in inventories, a decrease of $3,616,000 in trade payables, an increase in trade accounts receivable of $3,480,000, and an increase in prepaid expenses and other current assets of $403,000, offset by an increase in accrued expenses of $810,000. The increase in inventories relates to purchases made in advance of expected future demand. Cash provided for operations was also reduced by a decrease of $8,875,000 in other non-current liabilities primarily due to lease payments for the nine months ended December 31, 2025.

Previous wording

Net cash used for investing activities was $6,345,000 for the six months ended September 30, 2025 compared to $8,908,000 for the six months ended September 30, 2024. The use of cash for the six months ended September 30, 2025 primarily consisted of $6,523,000 in capital expenditures.

Current wording

Net cash used for investing activities was $6,830,000 for the nine months ended December 31, 2025 compared to $14,222,000 for the nine months ended December 31, 2024. The use of cash for the nine months ended December 31, 2025 primarily consisted of $10,347,000 in capital expenditures offset by $3,257,000 of proceeds received from sale of two previously closed manufacturing facilities.

Previous wording

Net cash used for financing activities was $18,722,000 and $47,839,000 for the six months ended September 30, 2025 and September 30, 2024, respectively. The most significant uses of cash in fiscal 2026 were for $12,482,000 of debt repayments and $4,014,000 of dividend payments. Cash flows from hedging activities related to the Company's cross currency swap are classified as financing activities in the Statement of Cash Flows which resulted in a net cash outflow of $866,000 during the six months ended September 30, 2025.

Current wording

Net cash used for financing activities was $30,520,000 and $69,499,000 for the nine months ended December 31, 2025 and December 31, 2024, respectively. The most significant uses of cash in fiscal 2026 were for $21,821,000 of debt repayments and $6,025,000 of dividend payments. Cash flows from hedging activities related to the Company's cross currency swap are classified as financing activities in the Statement of Cash Flows which resulted in a net cash outflow of $1,301,000 during the nine months ended December 31, 2025.

Previous wording

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 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 September 30, 2025, $24,798,000 of cash and cash equivalents were held by foreign subsidiaries.

Current wording

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 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 December 31, 2025, $34,314,000 of cash and cash equivalents were held by foreign subsidiaries.

Previous wording

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 six months ended September 30, 2025 and September 30, 2024 were $6,523,000 and $10,068,000, respectively. We expect capital expenditure spending in fiscal 2026 to range from $15,000,000 to $20,000,000.

Current wording

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 nine months ended December 31, 2025 and December 31, 2024 were $10,347,000 and $15,266,000, respectively. We expect capital expenditure spending in fiscal 2026 to range from $12,000,000 to $16,000,000.

Previous wording

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 three reporting units: the Linear Motion Products reporting unit, the Rest of Products reporting unit, and the Precision Conveyance reporting unit, which have goodwill totaling $9,699,000, $319,838,000, and $401,681,000, respectively, as of September 30, 2025.

Current wording

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 three reporting units: the Linear Motion Products reporting unit, the Rest of Products reporting unit, and the Precision Conveyance reporting unit, which have goodwill totaling $9,699,000, $320,083,000, and $401,764,000, respectively, as of December 31, 2025.