Second-Quarter 2025 Performance Overview The company reported its second-quarter 2025 financial results, highlighting key performance metrics and management's strategic outlook Key Financial Highlights The company reported mixed Q2 2025 financial results, with increased orders and backlog but decreased net sales and adjusted EBITDA Key Financial Highlights (Q2 2025) | Metric | Q2 2025 (Millions) | YoY Change | | :-------------------------- | :----------------- | :--------- | | Net income | $1.5 | - | | Adjusted net income | $2.8 | - | | Diluted EPS | $0.04 | - | | Adjusted diluted EPS | $0.08 | - | | Orders | $453.9 | +6.0% | | Backlog | $729.3 | - | | Net sales | $539.5 | -4.0% | | Non-new machine sales | $161.6 | +9.7% | | Adjusted EBITDA | $26.3 | -26.9% | Management Commentary & Business Outlook Management highlighted strong order growth and market 'green shoots' despite tariff headwinds, adjusting H2 2025 schedules and anticipating lower-end guidance - Achieved solid 6% year-over-year growth in orders, driven by strong performance in the MGX distribution business and continued momentum in the European tower crane market, despite tariff headwinds3 - Adjusted build schedules for the second half of 2025 and anticipate finishing the year at the lower end of guidance range, expecting six months for the U.S. crane market to find a new equilibrium due to trade deals3 - Identified 'green shoots' in the market: improving general European economy, rebounding European tower crane business, active Middle East, improvements in Asia Pacific, and contracting U.S. crane rental house inventory, all signaling positive trends once the tariff environment stabilizes4 Company Information This section provides an overview of The Manitowoc Company, Inc., detailing its history, headquarters, and comprehensive product offerings About The Manitowoc Company, Inc. Founded in 1902, Manitowoc is a global provider of engineered lifting products and services, headquartered in Milwaukee, Wisconsin - Founded in 1902, with over a 120-year tradition of providing high-quality, customer-focused products and support services6 - Headquartered in Milwaukee, Wisconsin, United States, and is one of the world's leading providers of engineered lifting products and services6 - Designs, manufactures, markets, distributes, and supports comprehensive product lines including mobile hydraulic cranes, lattice-boom crawler cranes, boom trucks, and tower cranes under various brands6 Forward-looking Statements This section outlines the company's forward-looking statements and the various risk factors that could impact future performance Forward-looking Statements Disclaimer and Risk Factors This section contains forward-looking statements, subject to uncertainties and risks including macroeconomic conditions, geopolitical events, and trade policy changes - Statements are based on current management expectations and are subject to uncertainty and changes in circumstances, not guarantees of future performance9 - Factors that could cause actual results to differ materially include macroeconomic conditions (inflation, interest rates, tariffs, supply chain, labor, logistics), actions of competitors, and changes in economic or industry conditions9 - Other significant risks include geopolitical events (conflicts in Ukraine and Middle East), changes in customer demand, adverse changes to trade policy (export duties, tariffs), ability to convert backlog into sales, and uncertainties associated with new product introductions911 Condensed Consolidated Financial Statements This section presents the company's condensed consolidated financial statements, including statements of operations, balance sheets, and cash flows Condensed Consolidated Statements of Operations Q2 2025 net sales decreased to $539.5 million, with operating income falling to $9.8 million and net income at $1.5 million Three Months Ended June 30 | Metric | 2025 (Millions) | 2024 (Millions) | | :-------------------------------- | :----------------- | :----------------- | | Net sales | $539.5 | $562.1 | | Cost of sales | $440.5 | $462.4 | | Gross profit | $99.0 | $99.7 | | Operating income | $9.8 | $12.9 | | Income (loss) before income taxes | $1.3 | $3.2 | | Net income (loss) | $1.5 | $1.6 | | Diluted net income (loss) per common share | $0.04 | $0.04 | Six Months Ended June 30 | Metric | 2025 (Millions) | 2024 (Millions) | | :-------------------------------- | :------------------ | :------------------ | | Net sales | $1,010.4 | $1,057.2 | | Cost of sales | $821.6 | $865.0 | | Gross profit | $188.8 | $192.2 | | Operating income | $15.1 | $28.1 | | Income (loss) before income taxes | $(7.5) | $9.6 | | Net income (loss) | $(4.8) | $6.1 | | Diluted net income (loss) per common share | $(0.14) | $0.17 | Condensed Consolidated Balance Sheets Total assets increased to $1,883.8 million as of June 30, 2025, driven by higher inventories and accounts receivable, with liabilities and equity also rising As of June 30, 2025 vs. December 31, 2024 | Metric | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :------------------------------------ | :----------------------- | :---------------------- | | Total current assets | $1,162.7 | $958.9 | | Total assets | $1,883.8 | $1,660.0 | | Total current liabilities | $560.4 | $474.3 | | Total non-current liabilities | $642.1 | $545.6 | | Total liabilities | $1,202.5 | $1,019.9 | | Total stockholders' equity | $681.3 | $640.1 | - Inventories increased to $782.5 million as of June 30, 2025, from $609.4 million at December 31, 202415 - Long-term debt increased to $459.8 million as of June 30, 2025, from $377.1 million at December 31, 202415 Condensed Consolidated Statements of Cash Flows Q2 2025 saw net cash used for operating activities of $67.7 million, primarily due to inventory changes, resulting in an $8.5 million decrease in cash and equivalents Three Months Ended June 30 | Metric | 2025 (Millions) | 2024 (Millions) | | :------------------------------------------ | :----------------- | :----------------- | | Net cash provided by (used for) operating activities | $(67.7) | $11.0 | | Net cash used for investing activities | $(5.9) | $(9.6) | | Net cash provided by financing activities | $63.8 | $5.5 | | Net increase (decrease) in cash and cash equivalents | $(8.5) | $6.6 | | Cash and cash equivalents at end of period | $32.9 | $38.1 | Six Months Ended June 30 | Metric | 2025 (Millions) | 2024 (Millions) | | :------------------------------------------ | :------------------ | :------------------ | | Net cash provided by (used for) operating activities | $(54.8) | $(19.6) | | Net cash used for investing activities | $(29.5) | $(21.6) | | Net cash provided by financing activities | $67.0 | $45.7 | | Net increase (decrease) in cash and cash equivalents | $(15.1) | $3.7 | | Cash and cash equivalents at end of period | $32.9 | $38.1 | - Changes in inventories used $49.5 million in cash from operating activities for the three months ended June 30, 2025, compared to $15.1 million used in the prior year period17 Non-GAAP Financial Measures Reconciliation This section provides reconciliations of non-GAAP financial measures, offering additional insights into the company's performance Introduction and Rationale The company utilizes non-GAAP measures like Adjusted EBITDA and Free Cash Flows to provide supplemental financial insights and enhance performance comparison - Non-GAAP financial measures include Adjusted net income (loss), Adjusted DEPS, EBITDA, adjusted EBITDA, adjusted operating income, Adjusted ROIC, and free cash flows719 - These measures provide important supplemental information to management and investors regarding financial and business trends19 - Excluding specified items provides a more meaningful comparison, assists investors in analysis, and offers a more relevant measure of operating and management performance19 Adjusted Net Income (Loss) and Adjusted DEPS Adjusted net income for Q2 2025 was $2.8 million ($0.08 Adjusted DEPS), reflecting adjustments for restructuring and non-recurring items Three Months Ended June 30 | Metric | 2025 (Reported) | 2025 (Adjusted) | 2024 (Reported) | 2024 (Adjusted) | | :------------------------------------ | :----------------- | :----------------- | :----------------- | :----------------- | | Net income | $1.5 | $2.8 | $1.6 | $8.8 | | Diluted net income per share | $0.04 | $0.08 | $0.04 | $0.25 | Six Months Ended June 30 | Metric | 2025 (Reported) | 2025 (Adjusted) | 2024 (Reported) | 2024 (Adjusted) | | :------------------------------------ | :------------------ | :------------------ | :------------------ | :------------------ | | Net income (loss) | $(4.8) | $(2.9) | $6.1 | $13.9 | | Diluted net income (loss) per share | $(0.14) | $(0.08) | $0.17 | $0.39 | - Adjustments in 2024 included $5.3 million of costs associated with a legal matter with the U.S. Environmental Protection Agency (EPA) and $0.1 million of one-time costs for the three months ended June 30, 202421 Adjusted Return on Invested Capital (ROIC) Adjusted ROIC was 4.2% as of June 30, 2025, calculated from adjusted NOPAT and average invested capital - Adjusted ROIC as of June 30, 2025, was 4.2%2526 Adjusted NOPAT (Trailing Twelve Months Ended June 30, 2025) | Metric | Amount (Millions) | | :-------------------------- | :---------------- | | Operating income | $38.8 | | Amortization of intangible assets | $3.0 | | Restructuring expense | $3.5 | | Other non-recurring items - net | $3.6 | | Adjusted operating income | $48.9 | | Provision for income taxes | $(7.3) | | Adjusted NOPAT | $41.6 | Invested Capital (5-Quarter Average as of June 30, 2025) | Metric | Amount (Millions) | | :-------------------------- | :---------------- | | Invested capital | $985.1 | Free Cash Flows Free cash flows for Q2 2025 were negative $73.7 million, a significant decrease from the prior year, reflecting operating activities and capital expenditures Three Months Ended June 30 | Metric | 2025 (Millions) | 2024 (Millions) | | :------------------------------------------ | :----------------- | :----------------- | | Net cash provided by (used for) operating activities | $(67.7) | $11.0 | | Capital expenditures | $(6.0) | $(12.9) | | Free cash flows | $(73.7) | $(1.9) | Six Months Ended June 30 | Metric | 2025 (Millions) | 2024 (Millions) | | :------------------------------------------ | :------------------ | :------------------ | | Net cash provided by (used for) operating activities | $(54.8) | $(19.6) | | Capital expenditures | $(16.8) | $(25.1) | | Free cash flows | $(71.6) | $(44.7) | EBITDA and Adjusted EBITDA Q2 2025 Adjusted EBITDA was $26.3 million, with a 4.9% margin, down from $36.0 million and 6.4% in Q2 2024 Three Months Ended June 30 | Metric | 2025 (Millions) | 2024 (Millions) | | :-------------------------- | :----------------- | :----------------- | | Net income (loss) | $1.5 | $1.6 | | EBITDA | $26.3 | $28.6 | | Adjusted EBITDA | $26.3 | $36.0 | | Adjusted EBITDA margin percentage | 4.9% | 6.4% | Six Months Ended June 30 | Metric | 2025 (Millions) | 2024 (Millions) | | :-------------------------- | :------------------ | :------------------ | | Net income (loss) | $(4.8) | $6.1 | | EBITDA | $42.2 | $59.9 | | Adjusted EBITDA | $48.0 | $67.3 | | Adjusted EBITDA margin percentage | 4.8% | 6.4% | Trailing Twelve Months Ended June 30, 2025 | Metric | Amount (Millions) | | :-------------------------- | :---------------- | | Net income (loss) | $44.9 | | EBITDA | $96.6 | | Adjusted EBITDA | $109.1 | | Adjusted EBITDA margin percentage | 4.9% | Additional Information This section provides details regarding the upcoming investor conference call and investor relations contact information Investor Conference Call An investor conference call to discuss Q2 2025 earnings will be held on August 8, 2025, with a live webcast available - Conference call for security analysts and institutional investors to discuss second-quarter 2025 earnings results on Friday, August 8, 2025, at 10:00 a.m. ET (9:00 a.m. CT)5 - A live audio webcast of the call, along with the related presentation, will be available via webcast on the Manitowoc website at http://ir.manitowoc.com in the 'Events & Presentations' section5 Investor Relations Contact Contact details for investor relations inquiries are provided - Contact: Ion Warner, SVP, Marketing and Investor Relations31 - Phone: +1 414-760-480531
Manitowoc(MTW) - 2025 Q2 - Quarterly Results