• Total Revenue (Q4): $596 million.
• Full-Year Revenue: $2.178 billion, a 2% decrease year over year.
• Adjusted EBITDA (Q4): $35 million, a decrease of 4% year over year.
• Adjusted EBITDA Margin (Q4): 5.9%, a decrease of 20 basis points.
• Adjusted EBITDA (Full Year): $128 million, a decrease of 27% year over year.
• Adjusted EBITDA Margin (Full Year): 5.9%, a decrease of 200 basis points.
• Net Income per Share (Q4): GAAP diluted $1.59; Adjusted $0.10.
• Orders (Q4): $516 million, an increase of 8% year over year.
• Backlog: $650 million, a year over year decrease of 29%.
• Non-New Machine Sales (Full Year): $629 million, a record high.
• Free Cash Flow (Q4): $100 million.
• Liquidity: $321 million at year-end.
• SG&A Expenses (Q4): $77 million, including a $1 million legal charge.
• Net Working Capital as a Percentage of Sales: 21%, flat compared to prior year.
• Debt Leverage: 2.66 times, below the targeted 3 times.

• Warning! GuruFocus has detected 6 Warning Signs with MTW.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Manitowoc Co Inc (NYSE:MTW) set a new record of $629 million in non-new machine sales for 2024.
• The company grew its field service technician count by 7% to over 460 team members.
• Manitowoc Co Inc (NYSE:MTW) launched 13 new cranes, including the next-generation EV self-erecting tower crane.
• The company renegotiated its debt to improve liquidity and extend its tender.
• Manitowoc Co Inc (NYSE:MTW) reported $100 million of free cash flow during the fourth quarter, ending the year with $321 million in liquidity.

Negative Points

• The company's backlog decreased by 29% year over year, ending at $650 million.
• Adjusted EBITDA for the year decreased by 27% year over year, with a margin decrease of 200 basis points.
• The Asia Pacific market remains challenging, with no signs of construction recovery in China.
• The company faced a year over year adjusted EBITDA headwind of $32 million in the European tower crane business.
• Manitowoc Co Inc (NYSE:MTW) expects the first quarter of 2025 to be extremely light, contributing approximately half the usual amount to full-year adjusted EBITDA.

Q & A Highlights

Q: Guidance implies sales up a little bit at the midpoint. Can you discuss regional expectations for 2025? A: Aaron Ravenscroft, President and CEO, explained that they expect marginally better revenue year over year. Europe is anticipated to improve slightly, especially in the tower crane sector, and the U.S. is also expected to be slightly better. However, Asia remains uncertain, particularly South Korea, leading to a wide range in guidance.

Q: How have used crane values trended throughout the quarter and as we head into 2025? A: Aaron Ravenscroft noted that used crane values depend on the age and model. There hasn't been much change in values. Typically, Manitowoc deals directly with cranes that have more interesting value or models, rather than those sold at auctions like Ritchie Brothers, which are often last resort.

Q: Can you elaborate on the performance of non-new machine sales? A: Aaron Ravenscroft highlighted that non-new machine sales reached a record $629 million, reflecting a 67% increase since 2020. This growth is part of their CRANES+50 strategy, focusing on less cyclical, higher-margin aftermarket business.

Q: What are the expectations for the European tower crane market? A: Aaron Ravenscroft mentioned that while the European market remains complicated, there are positive indicators of gradual recovery. Orders for tower cranes have grown modestly year over year, with growth in Germany, Italy, and the UK offsetting weakness in France.

Q: How is the Middle East market performing, and what are the expectations? A: Aaron Ravenscroft reported that the Middle East market remains robust, with fourth-quarter orders up over 44% year over year. Despite tightening funding, numerous projects in Saudi Arabia need completion for upcoming international events, maintaining strong demand.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.