The Manitowoc Company, Inc. Q4 FY2025 earnings call

• Achieved a recordable injury rate (RIR) of 0.94, the first time below one in the company's history, with first aid incidents down 10% year over year.
• Cranes Plus 50 strategy: Non-new machine sales grew 10% to $690 million; expanded aftermarket footprint with territory coverage in the US and France, and new/upgraded locations; field service technician population grew to over 500.
• New product development: Launched 11 new cranes in 2025, including the MCT 2205, GRT 550, and MCR 815; set to unveil two special cranes at CONEXPO in March: an 80-ton boom truck and an 800-ton all-terrain crane.
• Recognitions: MGX Brands in Chesapeake for blast hopper concept improving efficiency and safety; sales team in Portugal for work on military contract.

Non-new machine sales grew 10% to $690 million, reaching another record. This segment was a significant contributor to the company's financial performance during the fourth quarter.

• Expect net sales in 2026 to range from $2.25 billion to $2.35 billion and adjusted EBITDA between $125 million and $150 million.
• Project free cash flow to be $40 million to $65 million, with $45 million to $50 million in capital expenditures.
• Aim to improve net leverage to below three times in 2026, leveraging $10 million in restructuring savings to offset inflation and foreign currency headwinds.

• Tariff situation in The Americas remains fluid, affecting customer sentiment and order timing.
• Currency fluctuations pose a risk to financial results.
• Ongoing volatility in global markets impacts business operations.

Q: How should we think about the 2026 outlook for sales growth by region?

A: The tower crane business continues to be a strong tailwind, but the U.S. market is mixed due to ongoing tariff headwinds.

Q: What were orders in January?

A: Approximately $225 million, with a good month driven by a strong winter campaign for tower cranes and robust demand for large rough terrain and crawler cranes.

Q: Provide an update on the Manitowoc Way and Lean implementation?

A: Shop floor is making progress with applications like SMED, AI is being explored in the office for data crunching, and focus is on enhancing customer experience through sharing lessons learned from new locations.

Q: How does seasonality look for the first quarter of 2026?

A: Q1 is expected to be impacted by tariffs and foreign exchange headwinds, but restructuring actions will provide a positive impact later in the year; Q2 and Q4 are generally the strongest quarters.