UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-11978 The Manitowoc Company, Inc. (Exact Name of Registrant as Specified in its Charter) | Wisconsin | 39-0448110 | | --- | --- | ...

Financial Data and Key Metrics Changes - The company generated $540 million in revenue for Q2 2025, a decrease of 4% year over year [21] - Adjusted EBITDA was $26 million, down $10 million year over year [22] - Orders totaled $454 million, an increase of 6% from the previous year, resulting in a backlog of $729 million [20] - Non-new machine sales were $162 million, up 10% year over year [22] - The net leverage ratio increased to approximately four times, with a focus on bringing it back below three times by year-end [25] Business Line Data and Key Metrics Changes - The European Tower Crane business saw new machine orders up 104% year over year [20] - Non-new machine sales reached a record $659 million on a trailing twelve-month basis [22] - The MGX distribution business experienced higher orders as end customers locked in pricing on in-stock units [21] Market Data and Key Metrics Changes - In Europe, demand varied by country, with slow demand in the UK, Netherlands, and France, while Spain, Italy, and Germany showed signs of optimism [8] - The Middle East market is experiencing dynamic growth, particularly in Saudi Arabia and UAE, with significant infrastructure projects underway [12] - In Asia, China faces economic headwinds, while Korea shows improving sentiment due to pro-business initiatives [13] Company Strategy and Development Direction - The company continues to execute its Cranesville 50 strategy, focusing on strengthening its aftermarket business and enhancing customer service [26] - A new service branch was opened in Warsaw, Poland, and expansions occurred in Sydney, Australia, Nantes, France, and Nashville [26] - The company is transitioning from a product-focused to a customer-oriented culture, enhancing its service capabilities [27] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about long-term demand despite current uncertainties around tariffs and pricing [15] - The company anticipates a drag on demand in the U.S. due to significant uncertainty around tariffs, leading to delayed purchasing decisions [15] - Management expects to achieve the low end of previously issued adjusted EBITDA guidance of $120 million to $145 million for the full year [25] Other Important Information - The company achieved a recordable injury rate of 0.67 for the first half of the year, reflecting ongoing safety improvements [7] - The full-year gross impact of tariffs is now estimated at $35 million, with plans to mitigate 90% of these costs [5] Q&A Session Summary Question: What is the expected duration of the backlog and EBITDA cadence for the next quarters? - Most of the backlog is expected to ship this year, with Q4 typically being stronger than Q3 [33] Question: How do regional dynamics affect orders? - The Americas show mixed results, with strong demand in the MGX distribution business but challenges in the dealer-oriented legacy business [34] Question: What is the impact of tariffs on pricing and demand? - The company is experiencing a 15% tariff on certain products, leading to cautious purchasing behavior among customers [44][46] Question: How is the company offsetting the tariff impacts? - The company is implementing price increases to mitigate the tariff impacts [48] Question: What adjustments are being made to protect cash flow? - The company is adjusting build schedules based on backlog and order trends to avoid overwhelming the supply chain [65]

Financial Performance - Q2 2025 - Net sales reached $540 million[17] - Adjusted EBITDA was $26 million[17] - Orders totaled $454 million[17] - Non-new machine sales increased by 10% year-over-year, reaching $162 million[13] Market Conditions - North America is experiencing a market on hold due to tariff-related uncertainty, but with high fleet utilization and declining dealer inventory[20] - Asia Pacific is seeing prolonged weakness in China, but improving sentiment in South Korea and mixed results in Australia[20] - Europe has varying market sentiment depending on the country, with new government stimulus programs and increasing residential permits[20] - The Middle East shows robust market demand driven by major residential, data center, and stadium project activity[20] Full Year 2025 Guidance - Net sales are projected to be between $2.175 billion and $2.275 billion[47] - Adjusted EBITDA is expected to be between $120 million and $145 million[47] - Capital expenditures are estimated at $47 million, with $23 million related to the rental fleet[47] - Adjusted free cash flows are projected to be between $55 million and $85 million, excluding EPA payment[47]

Core Insights - Manitowoc reported significant earnings and revenue misses in Q2 2025, with Non-GAAP EPS at $0.08 compared to expectations of $0.18, reflecting ongoing market and operational pressures [1][5] - Adjusted EBITDA decreased to $26.3 million from $36.0 million year-over-year, indicating margin compression and cash flow challenges despite a 6.0% rise in new orders [1][5][6] Financial Performance - Non-GAAP EPS fell 68% year-over-year from Q2 2024, missing estimates by $0.10 [2][5] - Revenue decreased by 4.0% year-over-year to $539.5 million, falling short of analyst estimates by 7.8% [2][5] - Adjusted EBITDA dropped 26.9% from the previous year [2][5] - Free cash flow turned negative at $(73.7 million), compared to $(1.9 million) in Q2 2024 [2][5] Business Overview - Manitowoc designs and manufactures a variety of lifting equipment for the global construction industry, including mobile cranes, tower cranes, and boom trucks [3] - The company emphasizes aftermarket services for crane maintenance and technical support [3] Geographic Segmentation - Manitowoc operates in three key geographic segments: the Americas, Europe and Africa (EURAF), and the Middle East and Asia Pacific (MEAP) [4] - The company focuses on operational efficiency, product innovation, and expanding aftermarket services to stabilize revenue [4] Market Dynamics - Despite revenue declines, new orders increased by 6.0% to $453.9 million, with notable strength in the European tower crane market due to government infrastructure spending [6] - The order backlog decreased from $797.8 million at the end of Q1 to $729.3 million at the end of Q2 2025, indicating a cautious outlook [6] Product Development - The company continues to focus on enhancing product performance, with positive feedback on hybrid all-terrain cranes [7] - Aftermarket services grew by 9.7% year-over-year to $161.6 million, providing a stabilizing factor for revenue [7] Operational Challenges - Inventory increased by 28% since year-end, reaching $782.5 million, contributing to negative cash flow [9] - Management expects to finish fiscal 2025 at the low end of guidance, with ongoing profitability challenges highlighted by an adjusted return on invested capital of 4.2% [10] Future Outlook - Key areas to monitor include the conversion of backlog into revenue, tariff mitigation impacts, inventory reduction efforts, and growth in aftermarket services [11]

Exhibit 99.1 The Manitowoc Company Reports Second-Quarter 2025 Financial Results Second-Quarter 2025 Highlights MILWAUKEE, Wis. - The Manitowoc Company, Inc. (NYSE: MTW) (the "Company" or "Manitowoc") today reported second- quarter net income of $1.5 million, or $0.04 per diluted share. Second-quarter adjusted net income (1) was $2.8 million, or $0.08 per diluted share. Orders in the second quarter were $453.9 million, a 6.0% increase from the prior year, resulting in backlog of $729.3 million. Net sales in ...

Group 1 - The Manitowoc Company, Inc. (NYSE: MTW) has shown a significant recovery in its stock performance over the last few months after experiencing a notable decline earlier in the year [1] - Crude Value Insights focuses on cash flow and companies in the oil and natural gas sector, highlighting their value and growth prospects [1] Group 2 - Subscribers to Crude Value Insights benefit from a stock model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] - A two-week free trial is available for new subscribers to explore the offerings related to oil and gas investments [3]

Core Viewpoint - The Manitowoc Company, Inc. (MTW) has seen a 25.5% increase in share price over the past month, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings and Estimates - No earnings estimate revisions have been made by analysts in the last two months [2] Group 2: VGM Scores - The Manitowoc Company has a subpar Growth Score of D and a similar score for momentum, but it has an A grade for value, placing it in the top quintile for this investment strategy [3] - The overall aggregate VGM Score for the stock is C, which is relevant for investors not focused on a single strategy [3] Group 3: Outlook - The Manitowoc Company holds a Zacks Rank of 4 (Sell), indicating expectations for below-average returns in the coming months [4] Group 4: Industry Performance - The Manitowoc Company is part of the Zacks Manufacturing - Construction and Mining industry, where Caterpillar (CAT) has gained 9.1% over the past month [5] - Caterpillar reported revenues of $14.25 billion for the last quarter, reflecting a year-over-year decline of 9.8%, with EPS dropping from $5.60 to $4.25 [5] - Caterpillar is projected to have earnings of $4.89 per share for the current quarter, representing a year-over-year decrease of 18.4%, with a Zacks Rank of 3 (Hold) [6]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025 and 2024, detailing the company's financial performance, position, and cash flows [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The company reported a net loss of **$6.3 million** in Q1 2025, a significant decline from **$4.5 million** net income in Q1 2024, driven by decreased net sales and higher expenses, while total assets increased and operating cash flow improved Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net sales** | $470.9 million | $495.1 million | | **Gross profit** | $89.8 million | $92.5 million | | **Operating income** | $5.3 million | $15.2 million | | **Net income (loss)** | $(6.3) million | $4.5 million | | **Diluted net income (loss) per share** | $(0.18) | $0.12 | Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $41.4 million | $48.0 million | | **Inventories - net** | $701.7 million | $609.4 million | | **Total assets** | $1,763.8 million | $1,660.0 million | | **Total debt (Current & Long-term)** | $399.0 million | $390.2 million | | **Total stockholders' equity** | $651.6 million | $640.1 million | Condensed Consolidated Statements of Cash Flows (Q1 2025 vs Q1 2024) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by (used for) operating activities** | $12.9 million | $(30.6) million | | **Net cash used for investing activities** | $(23.6) million | $(12.0) million | | **Net cash provided by financing activities** | $3.2 million | $40.2 million | | **Net decrease in cash and cash equivalents** | $(6.6) million | $(2.9) million | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail key accounting policies, a **$12.9 million** asset acquisition, **$399.0 million** in total debt, a **$45.0 million** EPA settlement liability, and segment performance, highlighting a decline in Americas operating income and growth in MEAP - The company is a leading provider of engineered lifting products, operating through three reportable segments: **Americas**, **Europe and Africa (EURAF)**, and **Middle East and Asia Pacific (MEAP)**[21](index=21&type=chunk)[22](index=22&type=chunk) - On February 4, 2025, the company acquired certain assets and distribution rights from Ring Power Corporation for **$12.9 million** in cash, which was accounted for as an asset acquisition[27](index=27&type=chunk) Segment Operating Income (Loss) (Q1 2025 vs Q1 2024) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Americas** | $17.7 million | $29.5 million | | **EURAF** | $(11.3) million | $(11.8) million | | **MEAP** | $11.4 million | $8.2 million | | **Total Segment Operating Income** | $17.8 million | $25.9 million | - The company recorded a liability of **$45.0 million** as of March 31, 2025, for a civil penalty and emissions mitigation project to settle alleged violations of the EPA's Transition Program for Equipment Manufacturers (TPEM), with the civil penalty of **$43.2 million** paid in April 2025[86](index=86&type=chunk)[87](index=87&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a challenging Q1 2025, marked by a **4.9%** decrease in net sales, a **17.9%** decline in backlog, and a **40%** drop in Americas segment operating income, despite improved operating cash flow and sufficient liquidity [Orders and Backlog](index=27&type=section&id=Orders%20and%20Backlog) Q1 2025 orders increased **10.1%** to **$610.3 million** year-over-year, driven by Americas and EURAF, while total backlog decreased **17.9%** from Q1 2024 to **$797.8 million** but increased **22.7%** from year-end 2024 Orders and Backlog Trends | Metric | Q1 2025 | Q1 2024 | % Change YoY | | :--- | :--- | :--- | :--- | | **Orders** | $610.3 million | $554.1 million | +10.1% | | **Backlog (as of March 31)** | $797.8 million | $971.3 million | -17.9% | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q1 2025 consolidated net sales decreased **4.9%** to **$470.9 million**, primarily due to lower new machine sales, while gross profit declined **2.9%** and engineering, selling, and administrative expenses rose **9.1%** to **$82.9 million** Key Operational Results (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $470.9 million | $495.1 million | (4.9)% | | **Gross profit** | $89.8 million | $92.5 million | (2.9)% | | **Gross profit %** | 19.1% | 18.7% | +0.4 p.p. | | **Engineering, selling, and administrative expenses** | $82.9 million | $76.0 million | 9.1% | - The decrease in net sales was primarily attributable to **$39.6 million** of lower new machine sales in all segments, partially offset by **$15.4 million** of higher non-new machine sales[109](index=109&type=chunk) - The increase in Engineering, selling, and administrative expenses was primarily due to costs for the triennial bauma trade show, higher professional services fees, and higher new product development costs[112](index=112&type=chunk) [Segment Operating Performance](index=28&type=section&id=Segment%20Operating%20Performance) The Americas segment experienced an **8.4%** sales decrease and a **40.0%** operating income decline, while EURAF maintained an operating loss, and MEAP's operating income grew **39.0%** to **$11.4 million** despite flat sales Segment Performance (Q1 2025 vs Q1 2024) | Segment | Net Sales (Q1 2025) | % Change YoY | Operating Income (Q1 2025) | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | **Americas** | $259.3 M | (8.4)% | $17.7 M | (40.0)% | | **EURAF** | $145.6 M | 1.8% | $(11.3) M | (4.2)% | | **MEAP** | $66.0 M | (4.2)% | $11.4 M | 39.0% | - The decrease in Americas segment operating income was primarily due to lower net sales, lower absorbed costs from reduced manufacturing volume, and higher engineering, selling, and administrative expenses[118](index=118&type=chunk) [Financial Condition and Liquidity](index=29&type=section&id=Financial%20Condition%20and%20Liquidity) Operating cash flow significantly improved to **$12.9 million** in Q1 2025 due to better working capital management, while total liquidity stood at **$307.1 million** and total debt increased slightly to **$399.0 million** Cash Flow Summary (Q1 2025 vs Q1 2024) | Cash Flow | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating Activities** | $12.9 million | $(30.6) million | | **Investing Activities** | $(23.6) million | $(12.0) million | | **Financing Activities** | $3.2 million | $40.2 million | - The increase in net cash from operating activities was primarily due to **$55.2 million** of lower cash use from changes in operating assets and liabilities, particularly inventory and accounts payable[124](index=124&type=chunk) Liquidity Position | Component | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $41.4 million | $48.0 million | | **Revolver borrowing capacity** | $325.0 million | $325.0 million | | **Less: Borrowings & LCs** | $(86.7) million | $(82.4) million | | **Total Liquidity (excl. other debt)** | $279.7 million | $290.6 million | [Non-GAAP Measures](index=32&type=section&id=Non-GAAP%20Measures) The company's Q1 2025 Adjusted EBITDA decreased to **$21.7 million** with a **4.6%** margin, while free cash flow improved significantly to **$2.1 million**, and trailing twelve-month Adjusted ROIC was **5.1%** Adjusted EBITDA Reconciliation (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net income (loss)** | $(6.3) million | $4.5 million | | **EBITDA** | $15.9 million | $31.3 million | | **Adjusted EBITDA** | $21.7 million | $31.3 million | | **Adjusted EBITDA margin** | 4.6% | 6.3% | - The company's Adjusted Return on Invested Capital (ROIC) for the trailing twelve months ended March 31, 2025 was **5.1%**[135](index=135&type=chunk)[136](index=136&type=chunk) Free Cash Flow Reconciliation (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by (used for) operating activities** | $12.9 million | $(30.6) million | | **Capital expenditures** | $(10.8) million | $(12.2) million | | **Free cash flows** | $2.1 million | $(42.8) million | [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company reports no material changes to its market risk disclosures, including foreign currency and interest rate risks, since its 2024 Annual Report on Form 10-K - The company's market risk disclosures have not materially changed since the 2024 Annual Report on Form 10-K was filed[140](index=140&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The company's CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures are effective[142](index=142&type=chunk) - During the first quarter of 2025, there were no changes that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[143](index=143&type=chunk) PART II. OTHER INFORMATION [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[146](index=146&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) This section discloses that no director or Section 16 officer adopted new Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - During the three months ended March 31, 2025, no director or Section 16 officer of the Company adopted a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement"[147](index=147&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including CEO and CFO certifications and various Inline XBRL data files for financial reporting - The exhibits filed with this report include CEO and CFO certifications (Exhibits 31, 32.1, 32.2) and various Inline XBRL data files (Exhibits 101 and 104)[148](index=148&type=chunk)

Financial Data and Key Metrics Changes - The company generated $471 million in revenue, a decrease of 5% year over year, while adjusted EBITDA was $22 million, down 31% year over year [4][20] - Orders totaled $610 million, representing a 10% increase from the previous year, with a backlog of $798 million [19] - Non-new machine sales reached $161 million, up 11% year over year, contributing to a trailing twelve months total of $645 million [20][34] Business Line Data and Key Metrics Changes - The Americas drove higher order intake, while European tower crane orders increased by 68% year over year, indicating a potential market recovery [19] - Non-new machine sales have shown significant growth, with a 70% increase over the trailing twelve months [34] Market Data and Key Metrics Changes - In North America, orders through third-party dealer channels increased by 35% year over year, reflecting a healthy industry environment [12] - European mobile crane orders were lower year over year but showed sequential improvement, while tower crane orders surged nearly 70% year over year [13][14] - The Middle East experienced a slight decline in orders, but deal activity remains strong, particularly in Saudi Arabia and the UAE [14][15] Company Strategy and Development Direction - The company is focused on its "Cranes plus 50" strategy, aiming to enhance aftermarket services and reduce cyclicality [28][35] - Investments in new products and a rental fleet are being made to better serve customers and capitalize on market recovery [30] - The company is adapting to the global trade reset and is committed to maintaining competitiveness through strategic actions [27][35] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand in North America and Europe, citing low dealer inventory levels and strong customer engagement [12][13] - The company is modeling $60 million in incremental costs due to tariffs but has plans to mitigate 80% to 90% of these costs [6][26] - The overall sentiment is that the current economic environment is challenging, but the company is well-positioned for recovery [35] Other Important Information - The company has integrated AI into its improvement processes, resulting in significant labor savings and efficiency gains [11] - The company has doubled its number of field service technicians globally to nearly 500, enhancing its aftermarket presence [34] Q&A Session Summary Question: Can you unpack the mitigation to the tariff numbers shared? - Management indicated that mitigations include price increases, alternative sourcing, and vendor cooperation, emphasizing that the situation is expected to be short-term [38][39] Question: How much of the tariff cost impact is from China? - Management noted that the tariff impact is a mix of various factors, including steel and aluminum tariffs, and did not provide a clear breakdown [41] Question: What is driving the increased demand in Europe? - Management attributed the demand increase to low dealer inventory and overall economic recovery, though caution was expressed regarding specific regional conditions [43][44] Question: Are higher costs for raw materials factored into the tariff impact? - Yes, higher costs for raw materials such as steel and aluminum are included in the estimated tariff cost impact [51] Question: What is the current momentum in the U.S. non-residential construction markets? - Management noted strong utilization and ongoing large projects, but emphasized the need for clarity on specific end markets [53][54] Question: What are the drivers behind the growth in non-new machine sales? - Growth is broad-based, with strong performance in used machines and European tower crane business, supported by expanding service capabilities [56][57]

Financial Data and Key Metrics Changes - The company generated $471 million in revenue, a decrease of 5% year over year, while adjusted EBITDA was $22 million, down 31% year over year [4][20] - Orders totaled $610 million, representing a 10% increase from the previous year, with a backlog of $798 million [19] - Non-new machine sales reached $161 million, up 11% year over year, contributing to a trailing twelve months total of $645 million [20][34] Business Line Data and Key Metrics Changes - The Americas drove higher order intake, while European tower crane orders increased by 68% year over year, indicating a potential market recovery [19] - Non-new machine sales have shown significant growth, with a 70% increase over the trailing twelve months [34] Market Data and Key Metrics Changes - In North America, orders through third-party dealer channels increased by 35% year over year, reflecting a healthy industry environment [12] - European mobile crane orders were lower year over year but showed sequential improvement, while tower crane orders surged nearly 70% year over year [13][14] - The Middle East experienced a slight decline in orders, but deal activity remains strong, particularly in Saudi Arabia and the UAE [14][15] Company Strategy and Development Direction - The company is focused on its "Cranes plus 50" strategy, aiming to enhance aftermarket services and reduce cyclicality [28][35] - Investments in new products and a rental fleet are being made to better serve customers and capitalize on market recovery [30] - The company is actively managing tariff impacts and exploring alternative sourcing to mitigate costs [6][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand in North America and noted strong customer engagement in Europe following recent infrastructure funding announcements [12][13] - The company is maintaining its full-year guidance despite tariff uncertainties, projecting net sales between $2.175 billion and $2.275 billion [26] Other Important Information - The company has integrated AI into its improvement processes, resulting in significant labor savings [11] - The company is facing approximately $60 million in incremental tariff costs, with plans to mitigate 80% to 90% of these costs [6][26] Q&A Session Summary Question: Can you unpack the mitigation to the tariff numbers shared? - Management indicated that mitigation strategies include price increases, alternative sourcing, and vendor cooperation, but the situation remains fluid [38][40] Question: What proportion of the tariff impact is from China? - Management noted that the tariff impact is complex and includes various factors, making it difficult to provide a clear breakdown [41] Question: What is driving the increased demand in Europe? - Management attributed the demand increase to low dealer inventory and overall market recovery, though caution remains regarding economic conditions in certain regions [43][45] Question: Are higher costs for raw materials like steel and aluminum factored into the tariff impact? - Yes, higher costs for raw materials are part of the estimated tariff impact [52] Question: What is the current state of the U.S. non-residential construction market? - Management reported strong utilization and ongoing large projects, contributing to positive momentum in the market [54][55] Question: Can you elaborate on the growth in non-new machine sales? - Growth in non-new machine sales is broad-based, with strong performance in used machines and European tower crane business [57][58]