Manitowoc(MTW) - 2025 Q1 - Quarterly Results

Financial and Operational Highlights 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] - The company's backlog at the end of the first quarter stood at $797.8 million[1] - Despite a fluid tariff situation, the company is maintaining its full-year 2025 guidance[3] Company Overview and Investor Information 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] - 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] Forward-Looking Statements 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] Consolidated Financial Statements 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 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 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 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 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] Adjusted Net Income (Loss) and Adjusted DEPS 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 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] - For the trailing twelve months, Adjusted NOPAT was $49.9 million and the 5-quarter average invested capital was $970.2 million[24] Free Cash Flows 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 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% |