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]

About Hiab "The partnership with MGX is an important milestone in our strategy to grow in the attractive U.S. market. Their scale and industry expertise significantly enhances our coverage in the U.S. With MGX, we can offer premium sales and service support for our HIAB loader cranes in many previously insufficiently covered key regions. This brings excellent growth opportunities for Hiab, MGX, and our customers,†said Pauliina Kunvik, Senior Vice President Sales and Services, North America at Hiab. About Th ...

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]