Financial Data and Key Metrics Changes - The company generated $540 million in revenue for Q2 2025, a decrease of 4% year over year [21] - Adjusted EBITDA was $26 million, down $10 million year over year [22] - Orders totaled $454 million, an increase of 6% from the previous year, resulting in a backlog of $729 million [20] - Non-new machine sales were $162 million, up 10% year over year [22] - The net leverage ratio increased to approximately four times, with a focus on bringing it back below three times by year-end [25] Business Line Data and Key Metrics Changes - The European Tower Crane business saw new machine orders up 104% year over year [20] - Non-new machine sales reached a record $659 million on a trailing twelve-month basis [22] - The MGX distribution business experienced higher orders as end customers locked in pricing on in-stock units [21] Market Data and Key Metrics Changes - In Europe, demand varied by country, with slow demand in the UK, Netherlands, and France, while Spain, Italy, and Germany showed signs of optimism [8] - The Middle East market is experiencing dynamic growth, particularly in Saudi Arabia and UAE, with significant infrastructure projects underway [12] - In Asia, China faces economic headwinds, while Korea shows improving sentiment due to pro-business initiatives [13] Company Strategy and Development Direction - The company continues to execute its Cranesville 50 strategy, focusing on strengthening its aftermarket business and enhancing customer service [26] - A new service branch was opened in Warsaw, Poland, and expansions occurred in Sydney, Australia, Nantes, France, and Nashville [26] - The company is transitioning from a product-focused to a customer-oriented culture, enhancing its service capabilities [27] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about long-term demand despite current uncertainties around tariffs and pricing [15] - The company anticipates a drag on demand in the U.S. due to significant uncertainty around tariffs, leading to delayed purchasing decisions [15] - Management expects to achieve the low end of previously issued adjusted EBITDA guidance of $120 million to $145 million for the full year [25] Other Important Information - The company achieved a recordable injury rate of 0.67 for the first half of the year, reflecting ongoing safety improvements [7] - The full-year gross impact of tariffs is now estimated at $35 million, with plans to mitigate 90% of these costs [5] Q&A Session Summary Question: What is the expected duration of the backlog and EBITDA cadence for the next quarters? - Most of the backlog is expected to ship this year, with Q4 typically being stronger than Q3 [33] Question: How do regional dynamics affect orders? - The Americas show mixed results, with strong demand in the MGX distribution business but challenges in the dealer-oriented legacy business [34] Question: What is the impact of tariffs on pricing and demand? - The company is experiencing a 15% tariff on certain products, leading to cautious purchasing behavior among customers [44][46] Question: How is the company offsetting the tariff impacts? - The company is implementing price increases to mitigate the tariff impacts [48] Question: What adjustments are being made to protect cash flow? - The company is adjusting build schedules based on backlog and order trends to avoid overwhelming the supply chain [65]
Manitowoc(MTW) - 2025 Q2 - Earnings Call Transcript