Manitowoc(US:MTW)2025-11-06 21:55Financial Performance - For the three months ended September 30, 2025, net sales increased 5.4% to $553.4 million from $524.8 million in the same period in 2024[120]. - Orders for the three months ended September 30, 2025 increased 15.7% to $491.4 million from $424.7 million for the same period in 2024[117]. - Gross profit for the three months ended September 30, 2025 increased 17.1% to $102.6 million compared to $87.6 million for the same period in 2024[124]. - Consolidated net sales for the nine months ended September 30, 2025 decreased 1.2% to $1,563.8 million from $1,582.0 million for the same period in 2024[123]. - Gross profit percentage for the three months ended September 30, 2025 increased 180 basis points to 18.5% compared to 16.7% for the same period in 2024[125]. - Orders for the nine months ended September 30, 2025 increased 10.5% to $1,555.6 million from $1,407.2 million for the same period in 2024[118]. - The Company reported net income of $5.0 million for the three months ended September 30, 2025, compared to a net loss of $(7.0) million in the same period of 2024[166]. - Operating income for the trailing twelve months ended September 30, 2025, was $49.8 million, showing a positive trend in operational performance[163]. Expenses and Costs - Engineering, selling, and administrative expenses for the three months ended September 30, 2025 increased 5.7% to $83.4 million from $78.9 million for the same period in 2024[128]. - Interest expense for the three months ended September 30, 2025 was $9.8 million, a slight increase from $9.6 million for the same period in 2024[130]. - Other expense - net for the three months ended September 30, 2025, was $0.8 million, a decrease from $4.9 million in the same period of 2024, primarily due to lower currency losses[133]. - For the nine months ended September 30, 2025, other expense - net was $4.8 million, compared to $3.9 million for the same period in 2024, driven by $3.1 million in net currency losses[134]. - The provision for income taxes for the three months ended September 30, 2025, was $2.5 million, compared to a benefit of $0.3 million in 2024, reflecting changes in jurisdictional mix[135]. Segment Performance - Americas segment net sales increased by 6.7% to $306.4 million for the three months ended September 30, 2025, from $287.1 million in 2024, primarily due to higher non-new machine sales[138]. - EURAF segment net sales increased by 28.7% to $163.2 million for the three months ended September 30, 2025, from $126.8 million in 2024, driven by higher tower crane sales[142]. - MEAP segment net sales decreased by 24.4% to $83.8 million for the three months ended September 30, 2025, from $110.9 million in 2024, primarily due to lower new machine sales[146]. Cash Flow and Liquidity - Cash flows used for operating activities increased to $68.9 million for the nine months ended September 30, 2025, from $63.2 million in 2024, mainly due to a $43.2 million payment to settle a legal matter with the EPA[151]. - Net cash provided by financing activities increased to $95.9 million for the nine months ended September 30, 2025, from $81.0 million in 2024, primarily due to additional net borrowings under the ABL Revolving Credit Facility[153]. - The company's total liquidity as of September 30, 2025, was $212.7 million, down from $320.9 million as of December 31, 2024[154]. - As of September 30, 2025, total debt increased to $500.4 million from $390.2 million as of December 31, 2024, representing a 28.3% increase[158]. - Free cash flows for the nine months ended September 30, 2025, were $(93.6) million, slightly improved from $(97.6) million in the same period of 2024[168]. Capital and Investments - Capital expenditures for the nine months ended September 30, 2025, were $24.7 million, down from $34.4 million in the same period of 2024[168]. - The Company plans to opportunistically raise capital in the debt capital markets and bank credit markets[158]. - The Company’s Adjusted ROIC as of September 30, 2025, was 4.8%, indicating the efficiency of capital utilization[162]. - For the three months ended September 30, 2025, adjusted EBITDA was $34.1 million, with an adjusted EBITDA margin of 6.2%[166]. Compliance and Risk Management - The Company was in compliance with all covenants related to its debt instruments as of September 30, 2025[158]. - The company continues to assess the potential impact of tariffs and is evaluating mitigation strategies, including supply chain adjustments and pricing strategies[115].