Financial Data and Key Metrics Changes - The company reported net sales of $677 million for Q4 2025, a 14% increase year-over-year, supported by strong shipments in North America and Europe [14] - Adjusted EBITDA for the quarter was $40 million, up $5 million year-over-year, representing a margin of 5.8% [14] - For the full year, net sales reached $2.24 billion, with non-new machine sales at $690 million, a 10% increase year-over-year [14][15] - The company generated $78 million in free cash flow during Q4 and ended the year with a cash balance of $77 million [13][16] Business Line Data and Key Metrics Changes - Non-new machine sales grew to $690 million, reflecting progress on the CRANES+50 strategy, with a goal to reach $1 billion [15] - The company launched 11 new cranes in 2025, including the GRT 550 and MCR 815, expanding its product portfolio [5][6] Market Data and Key Metrics Changes - Orders in Q4 totaled $803 million, a 56% increase year-over-year, with a backlog of $794 million, up 22% from the previous year [9][13] - In Europe, new machine orders increased by 64% year-over-year, while mobile crane orders rose by 39% [10] - The Middle East market remains optimistic, although cash flow issues in Saudi Arabia are a concern [11] Company Strategy and Development Direction - The company aims to achieve a return on invested capital of 15% and continues to focus on expanding its non-new machine sales, which deliver higher gross margins [19] - A restructuring plan is in place to streamline operations, projected to save approximately $10 million in 2026 [16] - New distribution agreements and expansion into new markets, including Portugal, Mexico, and Chile, are part of the growth strategy [18] Management Comments on Operating Environment and Future Outlook - The management expressed optimism for 2026, expecting improved results driven by pricing strategies, European market growth, and continued non-new machine sales [16][18] - The American market is anticipated to rebound as interest rates trend down and the tariff environment stabilizes [18] Other Important Information - The company achieved a recordable injury rate (RIR) of 0.94, marking a significant improvement in safety performance [7] - Tariffs had a gross unfavorable impact of $39 million for the year, but the company managed to mitigate approximately 85% of these headwinds [15] Q&A Session Summary Question: 2026 outlook and regional sales growth - The tower crane business is expected to continue strong, particularly in Europe, while the U.S. market presents mixed signals due to tariffs [25] Question: Crane-space safety strategy for 2026 - The cadence for non-new machine sales is expected to remain stable, with some headwinds from tariffs affecting unit movement [26][27] Question: Orders in January - January orders were approximately $225 million, supported by a successful winter campaign for tower cranes [32] Question: Update on the Manitowoc Way and LEAN implementation - The company is focusing on improving operational efficiency and customer experience through LEAN practices and AI integration [33][34] Question: First quarter expectations - Q1 is expected to face headwinds from tariffs and foreign exchange impacts, leading to lower performance compared to other quarters [36]

Financial Data and Key Metrics Changes - The company reported net sales of $677 million for Q4 2025, a 14% increase year-over-year, supported by strong shipments in North America and Europe [13][14] - Adjusted EBITDA for the quarter was $40 million, up $5 million year-over-year, representing a margin of 5.8% [14] - For the full year, net sales reached $2.24 billion, with non-new machine sales at $690 million, reflecting a 10% increase year-over-year [14][16] - The company generated $78 million in free cash flow during Q4 and ended the year with a cash balance of $77 million [13][17] Business Line Data and Key Metrics Changes - Non-new machine sales grew to $690 million, marking a 10% increase year-over-year, indicating progress on the CRANES+50 strategy [14][16] - The company launched 11 new cranes in 2025, including the largest models in their respective categories, contributing to product portfolio expansion [5][6] Market Data and Key Metrics Changes - Orders in Q4 totaled $803 million, a 56% increase year-over-year, with a backlog of $794 million, up 22% from the previous year [9][13] - In Europe, new machine orders increased by 64% year-over-year, while mobile crane orders rose by 39% [10][13] - The Middle East market remains positive, although cash flow issues in Saudi Arabia are causing some concern [11] Company Strategy and Development Direction - The company is focused on expanding its crane-space safety strategy and plans to open new locations in Portugal, Mexico, Chile, and France [19] - A restructuring plan is in place to streamline operations, with projected savings of approximately $10 million in 2026 [18] - The long-term goal is to achieve a return on invested capital of 15%, with a focus on growing non-new machine sales, which deliver higher gross margins [19][20] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism for 2026, anticipating improved results driven by pricing strategies, European market growth, and continued non-new machine business expansion [18][19] - The American market is expected to rebound as interest rates trend down and the tariff environment stabilizes [19] Other Important Information - The company achieved a recordable injury rate (RIR) of 0.94, marking a significant improvement in workplace safety [4][6] - Tariffs had a gross unfavorable impact of $39 million for the year, but the company managed to mitigate approximately 85% of these headwinds through pricing and sourcing actions [16] Q&A Session Summary Question: What is the sales growth outlook for 2026 by region? - The tower crane business is expected to continue strong, particularly in Europe, while the U.S. market presents mixed signals due to tariffs [26] Question: Can you discuss the crane-space safety strategy for 2026? - The strategy is expected to maintain a flat cadence, with non-new machine sales anticipated to remain stable despite some headwinds from tariffs [27][28] Question: What were the orders in January? - January orders were approximately $225 million, supported by a successful winter campaign for tower cranes [33] Question: Can you provide an update on the Manitowoc Way and LEAN implementation? - The company is making significant progress in LEAN practices, focusing on shop floor efficiency and customer experience improvements [34][35] Question: How do you see the first quarter looking? - The first quarter is expected to face headwinds from tariffs and foreign exchange impacts, leading to lower performance compared to the rest of the year [37]