Core Points - The event is focused on sustainability initiatives by Konecranes, featuring presentations and a Q&A session [1][2] - Linda Hakkila, the Chief Investor Relations Officer, introduces the event and the main speaker, Anniina Virta-Toikka, VP of Sustainability [1] - Attendees are encouraged to submit questions via chat during the webcast [2]

Core Insights - Hiab has signed a strategic dealer agreement with MGX Equipment Services to expand its distribution and service network for HIAB loader cranes across 13 states in the US [1][3] Group 1: Partnership Details - MGX Equipment Services operates in 13 locations across 11 states in the USA, providing sales, rental, parts, service, and training [2] - The partnership will enhance sales and services in states including Colorado, Delaware, Iowa, Maryland, Minnesota, Montana, Nebraska, New Jersey, North Dakota, South Dakota, Virginia, Wyoming, and Utah [2] Group 2: Strategic Importance - The partnership is a significant milestone for Hiab's strategy to grow in the North American market, enhancing coverage in previously underserved regions [3] - The collaboration aims to provide premium sales and service support for HIAB loader cranes, creating growth opportunities for Hiab, MGX, and their customers [3] Group 3: Growth and Value Creation - The agreement is expected to accelerate growth for MGX and Manitowoc in the U.S. by improving direct-to-customer reach, response times, service capability, and customer engagement [4] - Together, Hiab and MGX are strengthening their market position and creating new opportunities for scaling across a broader range of lifting solutions [4]

Core Insights - Manitowoc Company, Inc. has completed a strategic dealer agreement with Hiab to enhance its distribution of HIAB loader cranes and aftermarket services in the U.S. market [1][2] - The partnership aims to accelerate growth for both MGX and Manitowoc by expanding their direct-to-customer reach, improving service capabilities, and increasing customer engagement [2][3] - Hiab views this partnership as a significant milestone in its strategy to grow in the U.S. market, enhancing its coverage and creating new growth opportunities [3] Company Overview - Manitowoc, founded in 1902 and headquartered in Milwaukee, Wisconsin, provides high-quality lifting products and services globally through various brands including Grove, Manitowoc, and National Crane [4] - Hiab is a leading provider of load-handling solutions, with sales in 2024 totaling approximately EUR 1.6 billion and a workforce of over 4,000 employees [5]

Financial Data and Key Metrics Changes - Orders increased by 2% year over year to $259 million, driven by an 8% growth in project-related orders, particularly in EMEA [5][6] - Sales for Q1 were $235.9 million, down 2% from the prior year, attributed to a 3% decline in short cycle sales [12][16] - Gross profit decreased by $11.8 million year over year to $77.2 million, impacted by lower sales volume and tariff-related costs [14][16] - Adjusted earnings per diluted share were $0.50, a decrease of $0.12 compared to the prior year, primarily due to a $0.11 tariff-related impact [16][17] Business Line Data and Key Metrics Changes - Short cycle orders were down 4% due to surcharges and price increases, while project-related sales remained unchanged from the prior year despite order growth [5][12] - SG&A expenses decreased by 5% excluding acquisition-related costs, resulting in an adjusted SG&A of $54.8 million [10][15] - Adjusted operating income was $18.5 million with an adjusted operating margin of 7.8% [15] Market Data and Key Metrics Changes - The backlog increased by $67 million or 23% year over year to $360 million, driven by longer cycle project orders [6][12] - Strength was noted in vertical end markets such as battery production, e-commerce, food and beverage, aerospace, oil and gas, and rail projects [6][7] - Tariffs were identified as a headwind, with an expected $10 million impact on operating profit in the first half of the year [9][17] Company Strategy and Development Direction - The company is focused on operational execution, cost control, and advancing its strategic plan, particularly in targeted end markets [18][58] - The pending acquisition of Keto Crosby is expected to scale the business, expand customer capabilities, and enable synergies [10][18] - The company anticipates achieving tariff cost neutrality by 2026 and margin neutrality by fiscal 2027 [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the order backlog and the potential for growth in targeted industries despite macroeconomic uncertainties [6][57] - The company expects the next few quarters to remain volatile but anticipates stabilization in demand over time [6][18] - Management remains focused on mitigating tariff impacts and is implementing price adjustments to offset these costs [9][17] Other Important Information - The company is preparing for the integration of Keto Crosby and expects to close the acquisition by the end of the calendar year [10][36] - Free cash flow was a use of cash of $21.4 million in the quarter, reflecting normal working capital seasonality [16][46] Q&A Session Summary Question: Can you help parse out the gross margin performance in the quarter? - Management noted a 180 basis point erosion in gross margin tied to tariffs and a mix of lower volume of higher margin products [20][22] Question: How should we think about gross margins moving forward? - Management expressed confidence in expanding margins, anticipating improvements as the year progresses and production ramps up [24][25] Question: Can you provide more detail on order backlog in areas like EV battery and e-commerce? - Management highlighted a strong funnel of opportunities in battery production, e-commerce, and defense industries, with positive trends in steel and heavy equipment [27][28] Question: Can you provide an update on the Keto Crosby acquisition? - Management confirmed that the acquisition is advancing and expects to close by the end of the year, with preparations for integration underway [34][36] Question: How much of the backlog is actionable this year? - Management indicated that 70-80% of the current backlog is actionable within the fiscal year, with the remainder extending beyond that timeframe [40][41] Question: What are the expectations for cash flow this year? - Management noted that cash flow predictions are challenging due to deal costs and timing of the acquisition closure, but improvements in working capital are expected [46][47]