Columbus McKinnon Corporation

Item 1A. Risk Factors.

There have been no material changes from the risk factors as previously disclosed in the 2025 Form 10-K.

 except as set forth below. The risks and uncertainties described in our 2025 Form 10-K and below are those that we have identified as material, but are not the only risks or uncertainties facing Columbus McKinnon. This list in our 2025 Form 10-K and below are not all-inclusive, and our business could also be materially adversely affected by additional risks that are not presently known to us or that we currently consider to be immaterial. As a result, the trading price of our common stock could decline, and you could lose all or part of your investment in our common stock.

We have recorded goodwill and other intangible assets in connection with our prior acquisitions. Goodwill and other acquired intangible assets could become impaired and adversely affect our future operating results.

We have accounted for business acquisitions, including our prior acquisitions of montratec, Dorner Mfg. Corp and Garvey Corporation, which are each part of our Precision Conveyance reporting unit, as business combinations under the acquisition method of accounting in accordance with U.S. generally accepted accounting principles. Under the acquisition method of accounting, the total purchase price is allocated to net tangible assets and identifiable intangible assets of acquired businesses based on their fair values as of the date of completion of the acquisition. The excess of the purchase price over those fair values is recorded as goodwill.

To the extent the value of goodwill or other intangible assets becomes impaired, we may be required to incur charges and such charges may be material. We conduct our goodwill and indefinite-lived intangible asset impairment analysis annually, or more frequently if we believe indicators of impairment exist. As part of our annual goodwill impairment analysis with respect to our Precision Conveyance reporting unit, we performed a qualitative assessment as of February 28, 2025, and, based upon the results of this qualitative assessment, we determined that a quantitative test was required to be performed as the businesses in this reporting unit were recently acquired resulting in a relatively small difference between the Precision Conveyance reporting units book and fair value. The quantitative test results indicated that the goodwill of the Precision Conveyance reporting unit was not impaired at the time of that test as its fair value exceeded its book value by 2.6%. While the goodwill of the Precision Conveyance reporting unit was not determined to be impaired at that time, it may be at risk of future impairment, in which charges may be material, if the related business does not perform as projected, or if market assumptions utilized in the impairment analysis deteriorate, including an unfavorable change in the discount rate. Refer to Note 7 in the accompanying condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding our goodwill and intangible assets.

Any such impairment charges relating to goodwill or other intangible assets could have a material impact on our operating results in future periods, and the announcement of a material impairment could have an adverse impact on the trading price of the shares of our common stock.