In This Article:
Crane and lifting equipment company Manitowoc (NYSE:MTW) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 4.9% year on year to $470.9 million. Its non-GAAP loss of $0.16 per share was 72.7% below analysts’ consensus estimates.
Is now the time to buy MTW? Find out in our full research report (it’s free).
Manitowoc (MTW) Q1 CY2025 Highlights:
-
Revenue: $470.9 million vs analyst estimates of $482 million (4.9% year-on-year decline, 2.3% miss)
-
Adjusted EPS: -$0.16 vs analyst expectations of -$0.09 (72.7% miss)
-
Adjusted EBITDA: $21.7 million vs analyst estimates of $16.14 million (4.6% margin, 34.4% beat)
-
Operating Margin: 1.3%, down from 3.1% in the same quarter last year
-
Free Cash Flow was $2.1 million, up from -$42.8 million in the same quarter last year
-
Backlog: $793.7 million at quarter end, down 18.3% year on year
-
Market Capitalization: $416.8 million
StockStory’s Take
Manitowoc’s Q1 performance was shaped by ongoing global trade dynamics and shifting demand across key regions. Management attributed the quarter’s results to tariff-related cost pressures, mixed demand trends in North America and Europe, and the continued growth of aftermarket sales. CEO Aaron Ravenscroft specifically highlighted the impact of new tariffs, stating the company is modeling $60 million in incremental costs this year, with plans to mitigate 80% to 90%. He also pointed to the successful integration of artificial intelligence into operational processes, which is expected to improve efficiency.
Looking ahead, management’s guidance is supported by a strong backlog and optimism regarding a recovery in the European tower crane business. Ravenscroft emphasized that the company’s CRANES+50 strategy, which prioritizes aftermarket sales and customer service, is central to navigating current market uncertainties. The team expressed cautious optimism, noting that evolving tariff negotiations and macroeconomic factors will continue to influence demand patterns and pricing in the coming quarters.
Key Insights from Management’s Remarks
Management’s remarks focused on the interplay between macroeconomic uncertainty, evolving trade policy, and Manitowoc’s aftermarket-driven strategy. The quarter’s performance deviated from expectations due to tariff-related costs, regional demand variability, and investments in product and market development.
-
Tariff Impact and Mitigation: Management outlined $60 million in expected tariff costs for 2025, with mitigation plans including price increases, alternative sourcing, and cost-sharing with vendors. These actions are expected to offset most, but not all, of the incremental costs.
-
Aftermarket Sales Growth: Non-new machine sales increased 11% year over year, driven by expanded field service coverage and a focus on rebuilt and used equipment. This supports the CRANES+50 strategy, which aims to reduce earnings volatility by growing less cyclical business lines.
-
European Tower Crane Recovery: Orders for European tower cranes rose nearly 70% year over year, marking the third consecutive quarter of growth and indicating a potential market rebound. This trend is underpinned by historically low dealer inventory and increased infrastructure investment in Germany.
-
Operational Efficiency Initiatives: Manitowoc integrated artificial intelligence into its improvement process, automating repetitive IT tasks to save an estimated 2,000 man hours and $400,000 in costs. Management views this as an important step in ongoing operational efficiency efforts.
-
Market-Specific Demand Trends: While North American dealer orders increased, management remains cautious due to tariff uncertainty. In the Middle East and India, demand remains stable to strong, while Korean and Australian markets are in a holding pattern due to local political and currency factors.