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 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]

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, resulting in an adjusted EBITDA margin of 4.6% [4][18] - Orders totaled $610 million, an increase of 10% from the previous year, with a backlog of $798 million at the end of the quarter [4][17] - Non-new machine sales reached $161 million, up 11% year over year, contributing to a trailing twelve months total of $645 million, marking a record [4][18] Business Line Data and Key Metrics Changes - The Americas drove higher order intake, while European tower crane orders increased nearly 70% year over year, indicating a recovery in that segment [17][18] - Non-new machine sales have shown strong performance, particularly in the European tower crane business, which has been a focus of growth [18][52] Market Data and Key Metrics Changes - In North America, orders through third-party dealer channels increased by 35% year over year, reflecting a healthy rental market [11] - European mobile crane machine orders were lower year over year but showed sequential improvement, with significant growth in tower crane orders [12][13] - The Middle East experienced a slight decline in orders, but deal activity remains robust, particularly in Saudi Arabia and the UAE [13][14] Company Strategy and Development Direction - The company is focused on its "Cranes plus 50" strategy, which aims to enhance aftermarket services and reduce cyclicality by transitioning to a customer-focused approach [26][32] - Investments in new products and a rental fleet are being made to better serve customers and capitalize on market recovery [27][28] - The company is actively managing tariff impacts and has plans to mitigate approximately 80% to 90% of the expected $60 million in tariff costs [6][24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand in North America and noted positive developments in Europe following the establishment of a significant infrastructure fund [11][12] - The company is navigating a challenging operating environment due to tariffs and global trade dynamics but remains committed to its strategic initiatives [26][32] - Management highlighted the importance of customer engagement and feedback in driving product improvements and service offerings [29][30] Other Important Information - The company has integrated AI into its improvement processes, resulting in significant labor savings and efficiency gains [10] - The company has maintained a strong liquidity position, with total liquidity of $307 million as of March 31 [20] 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 [35][36] Question: What proportion of the $45 million tariff cost is attributed to China? - Management noted that the breakdown is complex, involving various tariffs and sourcing strategies, making it difficult to provide a clear percentage [39][40] Question: What is driving the increased demand in Europe? - Management attributed the recovery to low dealer inventory and increased utilization, although they cautioned that the market is still not at peak levels [41][43] Question: Are higher costs for raw materials like steel and aluminum factored into the tariff impact? - Yes, higher costs for raw materials are included in the estimated $45 million tariff cost impact [48] Question: How is the backlog being managed in light of tariffs? - Management plans to use surcharges to address the backlog as tariffs impact imported units [49] Question: What is the current momentum in the U.S. non-residential construction market? - Management noted strong utilization and ongoing large projects, although they acknowledged variability across different segments [50][51] Question: Can you elaborate on the growth in non-new machine sales? - Growth is broad-based, with strong performance in used machines and European tower cranes, supported by expanding service capabilities [52][54]

Financial Performance - Net sales reached $471 million[12] - Adjusted EBITDA was $22 million[12] - Liquidity remains strong at $307 million[24] - Free cash flows were $2.1 million[40] compared to $(42.8) million in the same period last year[40] - Adjusted ROIC is 5.1%[41] Orders and Sales - Orders totaled $610 million[12] - Non-new machine sales increased by 11% year-over-year[12] - The company plans to mitigate 80-90% of the approximately $60 million in tariff costs[27] Market Conditions - Overall positive customer sentiment exists, but tariffs are creating pockets of uncertainty[18] - North America shows improved order intake and stable rental utilization[18] - Europe shows improved customer sentiment from German infrastructure announcement and towers showing signs of recovery[18] - Asia Pacific shows India remains strong while China weakness continues[18]

Financial Performance - The Manitowoc Company reported a quarterly loss of $0.16 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.10, and compared to earnings of $0.14 per share a year ago, indicating a significant earnings surprise of -60% [1] - The company posted revenues of $470.9 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.90%, and down from $495.1 million in the same quarter last year [2] Stock Performance - Shares of The Manitowoc Company have declined approximately 7.5% since the beginning of the year, while the S&P 500 has seen a decline of -3.9% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $570 million, and for the current fiscal year, it is $0.50 on revenues of $2.23 billion [7] - The trend of estimate revisions for The Manitowoc Company is mixed, which could change following the recent earnings report [6] Industry Context - The Manufacturing - Construction and Mining industry, to which The Manitowoc Company belongs, is currently ranked in the top 8% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

[Financial and Operational Highlights](index=1&type=section&id=First-Quarter%202025%20Highlights) Manitowoc's Q1 2025 orders increased 10.1% to $610.3 million, driven by European tower cranes, despite a 4.9% net sales decline and a 30.7% Adjusted EBITDA drop, with operating cash flow significantly improving Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Change (YoY) | | :--- | :--- | :--- | | Orders | $610.3 million | ▲ 10.1% | | Net Sales | $470.9 million | ▼ 4.9% | | Non-new machine sales | $160.6 million | ▲ 10.6% | | Adjusted EBITDA | $21.7 million | ▼ 30.7% | | Net cash provided by operating activities | $12.9 million | ▲ $43.5 million | - Order growth was primarily driven by a **68.3% increase** in new machine orders in the European tower crane business and a **23.8% increase** in the Americas segment[1](index=1&type=chunk) - The company's backlog at the end of the first quarter stood at **$797.8 million**[1](index=1&type=chunk) - Despite a fluid tariff situation, the company is maintaining its full-year 2025 guidance[3](index=3&type=chunk) [Company Overview and Investor Information](index=1&type=section&id=Investor%20Conference%20Call) Manitowoc will host an investor conference call on May 7, 2025, to discuss its Q1 2025 results, highlighting its position as a leading global provider of engineered lifting products - An investor conference call is scheduled for **Wednesday, May 7, 2025, at 11:00 a.m. ET**[4](index=4&type=chunk) - Manitowoc is a leading provider of engineered lifting products, including mobile hydraulic cranes, crawler cranes, and tower cranes under brands like Aspen Equipment, Grove, Manitowoc, MGX, National Crane, Potain, and Shuttlelift[5](index=5&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-looking%20Statements) This section outlines significant risks and uncertainties, including macroeconomic conditions, geopolitical events, supply chain disruptions, and changes in customer demand, that could impact future financial results - The company identifies several key risk factors that could impact future performance, including: macroeconomic conditions (inflation, interest rates, tariffs), geopolitical events (conflicts in Ukraine and the Middle East), changes in customer demand and ability to convert backlog to sales, supply chain, labor, and logistics constraints, and actions of competitors and changes in trade policy[8](index=8&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025 and 2024, encompassing the Statements of Operations, Balance Sheets, and Cash Flows [Condensed Consolidated Statements of Operations](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2025, net sales decreased to $470.9 million, resulting in a net loss of $6.3 million or ($0.18) per share, a reversal from net income in Q1 2024 Q1 Statement of Operations Summary (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $470.9 | $495.1 | | Gross profit | $89.8 | $92.5 | | Operating income | $5.3 | $15.2 | | Net income (loss) | $(6.3) | $4.5 | | Diluted net income (loss) per share | $(0.18) | $0.12 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets increased to $1,763.8 million, primarily due to higher inventories, with total liabilities and stockholders' equity also rising Balance Sheet Summary (in millions) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $41.4 | $48.0 | | Inventories - net | $701.7 | $609.4 | | Total current assets | $1,054.5 | $958.9 | | Total assets | $1,763.8 | $1,660.0 | | Total current liabilities | $554.8 | $474.3 | | Long-term debt | $381.4 | $377.1 | | Total stockholders' equity | $651.6 | $640.1 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, the company generated $12.9 million in cash from operating activities, a significant improvement from the prior year, despite a net decrease in cash overall Q1 Statement of Cash Flows Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $12.9 | $(30.6) | | Net cash used for investing activities | $(23.6) | $(12.0) | | Net cash provided by financing activities | $3.2 | $40.2 | | Net decrease in cash and cash equivalents | $(6.6) | $(2.9) | | Cash and cash equivalents at end of period | $41.4 | $31.5 | [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP financial measures, including Adjusted Net Income, Adjusted DEPS, Adjusted ROIC, Free Cash Flows, and Adjusted EBITDA, for enhanced performance insight - The company uses non-GAAP measures like Adjusted EBITDA, Adjusted DEPS, Adjusted ROIC, and free cash flows to provide what it believes is a more meaningful comparison of performance by excluding specified items[18](index=18&type=chunk) [Adjusted Net Income (Loss) and Adjusted DEPS](index=7&type=section&id=Adjusted%20Net%20Income%20(Loss)%20and%20Adjusted%20DEPS) After adjustments, Q1 2025 saw an adjusted net loss of $5.7 million or ($0.16) per share, contrasting with an adjusted net income in Q1 2024 Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) (as reported) | $(6.3) | $4.5 | | Adjustments | $0.6 | $0.6 | | Adjusted net income (loss) | $(5.7) | $5.1 | | Adjusted diluted net income (loss) per share | $(0.16) | $0.14 | [Adjusted ROIC](index=8&type=section&id=Adjusted%20ROIC) The company's Adjusted Return on Invested Capital (ROIC) for the trailing twelve months ending March 31, 2025, was 5.1% - Adjusted ROIC as of March 31, 2025 was **5.1%**[23](index=23&type=chunk) - For the trailing twelve months, Adjusted NOPAT was **$49.9 million** and the 5-quarter average invested capital was **$970.2 million**[24](index=24&type=chunk) [Free Cash Flows](index=8&type=section&id=Free%20Cash%20Flows) Free cash flow for Q1 2025 was $2.1 million, a significant improvement from a negative $42.8 million in Q1 2024, driven by positive operating cash flow Free Cash Flow Calculation (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $12.9 | $(30.6) | | Capital expenditures | $(10.8) | $(12.2) | | **Free cash flows** | **$2.1** | **$(42.8)** | [EBITDA and Adjusted EBITDA](index=9&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 decreased to $21.7 million, with the margin falling to 4.6% from 6.3% year-over-year Adjusted EBITDA Reconciliation (in millions) | Metric | Q1 2025 | Q1 2024 | Trailing Twelve Months | | :--- | :--- | :--- | :--- | | Net income (loss) | $(6.3) | $4.5 | $45.0 | | EBITDA | $15.9 | $31.3 | $98.9 | | **Adjusted EBITDA** | **$21.7** | **$31.3** | **$118.8** | | **Adjusted EBITDA margin** | **4.6%** | **6.3%** | **5.5%** |

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It has been about a month since the last earnings report for The Manitowoc Company, Inc. (MTW) . Shares have lost about 15% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is The Manitowoc Company due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Be ...