The Manitowoc Company (MTW) FY Conference August 27, 2025 08:15 AM ET Company ParticipantsNone - ExecutiveAaron Ravenscroft - CEO, President & DirectorNoneHappy to have the Manitowoc company here, trades on New York and NYSE. They've been a client of ours for about a year and a half, maybe two years now, and really enjoyed working with them. You know, this is a name that, we think is an opportune time to be looking at it. The crane cycle has been really rough this last decade or so, but we think we're eithe ...

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 Data and Key Metrics Changes - For the full year 2024, the company reported sales of $2,200,000,000 and adjusted EBITDA of $128,000,000, with free cash flow of $100,000,000 generated in the fourth quarter [6][24][26] - The fourth quarter total revenue was $596,000,000, with adjusted EBITDA of $35,000,000, reflecting a 4% year-over-year decrease [20][23] - The company achieved a record high in non-new machine sales at $629,000,000, a 67% increase since 2020 [5][24] Business Line Data and Key Metrics Changes - Non-new machine sales were $629,000,000 for the full year, showing significant growth compared to $376,000,000 in 2020 [24][34] - The company launched 13 new cranes during the year, including an EV self-erecting tower crane and the MCT 2,205 [5] Market Data and Key Metrics Changes - Orders in the fourth quarter totaled $516,000,000, an 8% increase year-over-year, with a backlog of $650,000,000, down 29% year-over-year [11][21] - The Americas market showed improvement post-U.S. elections, while Europe is gradually recovering, particularly in Germany, Italy, and the UK [11][12] - Orders in the Middle East increased over 44% year-over-year, driven by upcoming major events [15] Company Strategy and Development Direction - The company continues to execute its "Cranes plus 50" strategy, focusing on growing the less cyclical, higher-margin aftermarket business [24][34] - The company is expanding service locations and enhancing field service support to stay competitive against Chinese exporters [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, with expectations of slight improvements in the U.S. and European markets, while Asia remains uncertain [27][30] - The company anticipates a challenging first quarter of 2025 due to reduced build schedules in 2024 [29] Other Important Information - The company achieved a record low recordable incident rate of 1.19, marking a significant improvement in safety [7] - Environmental initiatives led to a 6% reduction in greenhouse gas intensity, resulting in approximately $100,000 in savings [8] Q&A Session Summary Question: Guidance on regional sales expectations - Management indicated that guidance reflects a marginally better outlook, particularly in Europe and the U.S., while Asia remains uncertain [39][40] Question: Trends in used crane values - Management noted that used crane values have remained stable, with no significant changes observed [42][43]