Manitowoc Q1 Earnings Call Highlights

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Manitowoc (NYSE:MTW) reaffirmed its full-year 2026 outlook after reporting first-quarter results that management said were broadly in line with expectations, supported by solid orders, a higher backlog and continued growth in its less cyclical aftermarket and non-new machine businesses.

On the company’s first-quarter earnings call, President and Chief Executive Officer Aaron Ravenscroft said Manitowoc has continued executing its CRANES+50 strategy over the past year, helping the company “weather the downturn in the crane cycle” while positioning it for the next upturn. He cited uncertainty tied to the Middle East, Ukraine and U.S. tariffs, but said the overall market has remained resilient.

“Our orders during the first quarter were almost $650 million, and our backlog ended the period at $940 million,” Ravenscroft said. “In addition, order rates in April remain strong.”

Orders Hold Steady as Backlog Rises

Executive Vice President and Chief Financial Officer Brian Regan said first-quarter orders totaled $646 million, relatively flat from a year earlier on a currency-neutral basis. He noted that comparisons were difficult because of a post-election increase in 2025 and large stocking orders received at the end of last year.

Backlog ended the quarter at $940 million, up $146 million from the end of 2025 and up $142 million year over year. Regan said the backlog supports Manitowoc’s revenue expectations for the year.

Net sales were $495 million in the quarter, also essentially flat on a currency-neutral basis. Non-new machine sales totaled $166 million in the quarter and reached a record $696 million on a trailing 12-month basis, up 8% from the prior year. Regan said growth in the category lagged expectations in the first quarter, mainly because of used equipment sales, but the mix favored higher-margin categories.

Adjusted EBITDA was $20 million, down $2 million, or 10%, from the prior-year quarter. Regan said tariffs reduced results by $2 million, as expected. Selling, general and administrative expenses were $91 million, with adjusted SG up $7 million. Foreign currency accounted for $3 million of that increase, while the remainder was primarily driven by the CONEXPO trade show and inflation in employee-related costs.

Guidance Reaffirmed Despite Tariff Uncertainty

Manitowoc reaffirmed its previously issued full-year guidance for net sales of $2.25 billion to $2.35 billion and adjusted EBITDA of $125 million to $150 million.

Regan said the company’s first-quarter results did not change its expectations for the full year. In response to an analyst question about tariffs, he said the net go-forward impact of current tariffs remains in line with the company’s expectations coming into the year, though uncertainty remains around Section 301 country-by-country tariffs and their net effect compared with current Section 232 tariffs.

Regan said Manitowoc paid approximately $25 million in IEEPA-related tariffs and has filed for a refund through the CAPE process. He also said the company voluntarily submitted a prior disclosure to customs related to potential errors in its methodology for calculating Section 232 steel and steel derivative tariffs. The company paid about $18 million before the April change in Section 232 tariffs, he said.

Asked about the cadence of results, Regan said the second half of the year should look better from a comparison standpoint because tariffs had a larger impact in the second half of 2025. He also said restructuring actions in the plan are expected to have a more favorable effect in the second half. “Q2 will be better than Q1, but I think the second half is going to be better than the first half,” Regan said.

CRANES+50 Strategy Expands Aftermarket Focus

Ravenscroft said Manitowoc is continuing to grow its non-new machine sales, which he described as less affected by economic cycles and higher-return. He outlined four areas of focus: adding service locations, increasing aftermarket sales representatives and field service technicians, expanding complementary lifting accessories and leveraging technology.

In Australia, Ravenscroft said Manitowoc doubled capacity at its Sydney facility and approved new service centers in Brisbane and Melbourne, with Brisbane set to host the 2032 Olympics. The company ended the quarter with 567 field service technicians, up 50 in three months, helped by changes to North American recruiting and a move in India from a dealer model to a direct model.

Ravenscroft also highlighted new lifting accessories, including anti-intrusion panels for European tower cranes, urinals to replace traditional bucket systems, and outrigger pads and a rear-mounted storage compartment in the U.K. In response to an investor question, he said a recent French tower crane order worth 6.5 million euros included an additional 900,000 euros in commissioning and dismantling services and 300,000 euros in accessories, including anti-intrusion panels, lighting cameras, anti-collision software, aircraft warning systems and lifts.

The company also completed implementation of the ServiceMax Asset Management System in April and is developing dispatching and work order modules that Ravenscroft said should improve visibility into service work and help capture incremental revenue opportunities.

Regional Demand Shows Signs of Resilience

Ravenscroft described customer sentiment at CONEXPO as “very positive,” saying crane rental houses were optimistic and project work remains abundant despite dissatisfaction with tariffs. Dealer inventory levels declined in the first quarter, which he called a positive sign, and all-terrain crane inventory levels are at a 10-year low.

In Europe, he said demand for tower cranes continues to grow, with new machine orders up 76% year over year, while mobile crane demand has remained relatively steady. In the Middle East, Ravenscroft said major projects such as the new Dubai Airport continue to move forward, though Saudi Arabia has pulled back on Neom and Trojena. He said Manitowoc is monitoring the region given the Iran conflict.

In Asia Pacific, Ravenscroft said momentum is increasing in Hong Kong, Vietnam, Australia and South Korea. He noted that roughly 100 Potain tower cranes are operating at new SK hynix and Samsung semiconductor projects in South Korea, adding that he left the region optimistic about demand in coming quarters.

Cash Flow Improves; Credit Rating Upgraded

Manitowoc reported net working capital of $536 million at quarter-end, up $47 million year over year, primarily because of higher inventory. Regan said the increase included $26 million from foreign currency, $15 million from tariffs and $10 million in prototypes, partially offset by operational improvements.

Operating activities provided $27 million in cash during the quarter, and capital expenditures were $8 million, including $6 million for the rental fleet. Free cash flow was $19 million, a $17 million improvement from a year earlier, driven by increased collections on accounts receivable.

The company ended the quarter with $316 million in liquidity and a net leverage ratio of 3.1 times. Regan also said S upgraded Manitowoc’s corporate credit rating from B to B+ in April, which he said reflects progress in strengthening the company’s financial profile while investing in long-term growth.

Ravenscroft closed the call by saying he sees “many reasons to be optimistic,” including a rebound in Europe, continued activity in the Middle East, strength in parts of Asia, potential mining investment in Latin America and ongoing U.S. demand tied to data centers, power generation and transmission infrastructure. However, he also said uncertainty remains, including the situation around the Strait of Hormuz and the company’s ability to execute certain Middle East orders within the year.

About Manitowoc (NYSE:MTW)

The Manitowoc Company, Inc (NYSE: MTW) is a global manufacturer of heavy-lift cranes and lifting equipment. The company's product portfolio includes tower cranes marketed under the Potain brand, mobile hydraulic cranes sold under the Grove, Manitowoc and National Crane names, and engineered lifting solutions such as mast climbers and platform hoists. Manitowoc serves a wide range of industries, including construction, infrastructure, energy and industrial markets.

Headquartered in Milwaukee, Wisconsin, Manitowoc operates manufacturing facilities, sales offices and rental centers across North America, Europe, Asia, Latin America and the Middle East.

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