Columbus McKinnon Corporation (NASDAQ: CMCO), a leading designer and manufacturer of intelligent motion solutions for material handling, reported disappointing financial results for the third quarter of fiscal year 2025, triggering a sharp sell-off in the after-hours trading session.

The company's stock plunged 21.08% in after-hours trading on Monday following the release of its Q3 results, which fell short of analysts' expectations.

For the quarter ended December 31, 2024, Columbus McKinnon reported:

Revenue: $234.1 million, down 7.9% year-over-year and missing the consensus estimate of $251.7 million.

Adjusted EPS: $0.56, a 24.3% decrease from the prior-year quarter and missing the consensus estimate of $0.73.

Adjusted Gross Margin: 36.8%, down from 37.2% in the same period last year.

Adjusted EBITDA Margin: 16.1%, compared to 16.3% in the prior-year quarter.

The company attributed the weaker-than-expected results to a slowdown in industry demand, driven by delayed customer decision-making related to U.S. policy uncertainty, including tariffs, as well as continued economic weakness in Europe.

Despite the disappointing quarterly performance, Columbus McKinnon announced plans to acquire privately held Kito Crosby from funds managed by KKR through a transaction valued at around $2.7 billion.

For fiscal year 2025, the company expects net sales to decrease in the mid-single digit percentage range year-over-year and adjusted EPS to decrease in the low teens percentage compared to the previous year.

Analysts on Wall Street had expected Columbus McKinnon to report fiscal 2025 adjusted EPS of $2.96 on revenue of $1.01 billion, according to LSEG IBES data.

The company's management acknowledged the challenges faced in the third quarter but expressed confidence in its long-term strategic plan and the potential value creation from the Kito Crosby acquisition.