Manitowoc NYSE: MTW reported higher second-quarter sales, orders and adjusted EBITDA, citing strong crane demand, improved operating execution and a net benefit from tariff-related items. The company raised its full-year outlook for sales, adjusted EBITDA, earnings per share and free cash flow.
Second-quarter net sales increased 10% from a year earlier to $595 million. Adjusted EBITDA nearly doubled to $49 million from $26 million in the prior-year period, while adjusted EBITDA margin expanded 330 basis points to more than 8% of sales.
“The Manitowoc team delivered great results in the second quarter,” President and Chief Executive Officer Aaron Ravenscroft said. He said the company’s core financial performance was among its strongest quarterly performances in recent years.
Orders and Backlog Expand
Orders totaled $709 million in the second quarter, up 56% from a year earlier, producing a book-to-bill ratio of 1.2. Backlog ended the quarter at $1.05 billion, increasing $110 million sequentially and $321 million from the prior year. The company expects approximately $750 million of backlog to ship during 2026.
Ravenscroft said crane utilization remained high in North America and dealer inventories had become lean, supporting strong orders from the traditional dealer channel as dealers replenished inventory. Activity in the company’s MGX business was relatively stable, he said.
In Europe, Manitowoc described market conditions as mixed. Its mobile crane business generated strong order growth, while tower crane orders declined modestly year over year because of a transition in self-erecting cranes to new EN standards scheduled for January. Ravenscroft said certain models had seen accelerated demand in recent quarters and their production schedules were sold out for the rest of the year.
The company also cited robust demand in South Korea tied to the semiconductor industry, along with continued strength in Vietnam and Australia. Ravenscroft said Manitowoc sees broad regional strength extending into 2027.
During the question-and-answer session, Ravenscroft said July orders exceeded $200 million, despite July typically being a slower month for the business.
Aftermarket Sales Reach Record Level
Non-new machine sales, which include aftermarket-related business, increased 6% year over year to $172 million in the quarter. On a trailing 12-month basis, those sales reached a record $706 million.
The company continued to pursue its CRANES+50 strategy, which includes expanding service locations, adding aftermarket salespeople and field technicians, increasing sales of lifting accessories and using technology to support operations.
Ravenscroft highlighted a three-year, $2.5 million service contract awarded to Manitowoc’s Peru operation at a copper-zinc mine. The company opened the Peru operation in 2023 to pursue service work with mining customers.
Manitowoc also opened a rapid-response shop at its Shady Grove campus to speed turnaround on critical aftermarket components and established an East Coast center of excellence for boom refurbishment. The company developed a specialized fixture, known internally as the “Boominator,” designed to improve safety and productivity in disassembling and reassembling booms. Manitowoc plans to replicate the fixture at selected MGX and global service locations.
Tariffs Aid Quarterly Results
Executive Vice President and Chief Financial Officer Brian Regan said the year-over-year improvement in adjusted EBITDA reflected operational execution and the net impact of tariffs. The company received $26 million in cash tied to IEEPA tariff refunds during the quarter.
Of that amount, Manitowoc recognized a $12 million benefit in operating income during the second quarter. The company expects another $4 million of tariff-related benefit in the third quarter. Regan said the remaining amounts relate to expected customer refunds, corrections to previously recognized tariff costs and approximately $1 million of interest income recognized during the quarter.
The company said the net year-over-year tariff benefit to profit in the second quarter was $9 million, consisting of the $12 million refund-related benefit offset by $3 million of additional tariff costs. For the full year, the net adjusted EBITDA impact of tariff refunds is expected to be $16 million.
Manitowoc generated $8 million of operating cash flow in the quarter and reported free cash flow usage of $6 million, an improvement of $68 million from the prior-year period. Capital expenditures were $14 million, including $9 million for the rental fleet. The company ended the quarter with $96 million in cash and total liquidity of $304 million.
Net leverage declined to approximately 2.6 times, below the company’s target of three times. Ravenscroft said the company would opportunistically consider share repurchases and acquisitions while leverage remains below that threshold.
Guidance Raised
Manitowoc raised its 2026 outlook and now expects:
- Net sales of $2.3 billion to $2.4 billion
- Adjusted EBITDA of $150 million to $170 million
- Adjusted diluted earnings per share of $0.80 to $1.20
- Free cash flow of $50 million to $70 million
Regan said the updated midpoint adjusted EBITDA outlook increased to $160 million from $137.5 million previously, reflecting higher expected revenue, tariff effects and higher anticipated variable compensation. He added that the guidance range accounts for risks related to the conflict in Iran.
Ravenscroft said the company has not yet seen a meaningful contribution from oil and gas or mining end markets despite higher commodity prices, but expects demand related to data centers and semiconductor investment to remain strong through 2027.
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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