Manitowoc (NYSE:MTW) reported fourth-quarter and full-year 2025 results that management said were in line with expectations, highlighted by a sharp increase in quarterly orders, year-over-year sales growth, and progress in expanding its aftermarket and other “non-new machine” revenue streams.
Orders and backlog rose sharply in the quarter
President and CEO Aaron Ravenscroft said the company delivered “solid results” in the fourth quarter despite a challenging operating environment in 2025 that he linked in part to what he called the “Great Trade Reset” in the U.S. He pointed to strength in the Middle East and improving trends in Europe and Asia-Pacific as offsets.
Fourth-quarter sales grew; tariffs weighed on profitability
For the fourth quarter, Manitowoc posted net sales of $677 million, up 14% year-over-year. Regan attributed the increase to strong shipments in North America, European tower cranes, and continued growth from the company’s non-new machine sales strategy. Non-new machine sales in the quarter were $191 million.
Adjusted EBITDA was $40 million, up $5 million year-over-year, for an adjusted EBITDA margin of 5.8%. Regan said tariffs unfavorably impacted quarterly results by $4 million. SG&A expenses were $89 million, or 13.2% of sales.
Regan also highlighted working capital progress, saying the company generated $78 million of free cash flow during the quarter as it reduced working capital.
Full-year 2025 results and cash flow details
For full-year 2025, Manitowoc reported net sales of $2.24 billion and adjusted EBITDA of $122 million, which management said was in line with expectations. Adjusted EBITDA margin declined 50 basis points to 5.4%, which Regan said was primarily due to higher SG&A and incremental tariff costs, partially offset by stronger European tower crane results.
Tariffs had a gross unfavorable impact of $39 million for the year. Regan said the company mitigated approximately 85% of the tariff headwinds through pricing and sourcing actions. On a GAAP basis, Manitowoc reported a provision for income taxes of $5 million, GAAP diluted EPS of $0.20, and adjusted diluted EPS of $0.32, down $0.09 from the prior year. Regan said net tariffs created an unfavorable impact of $0.13 to adjusted diluted EPS year-over-year.
Cash flow from operations was $22 million for the year, which Regan said was negatively impacted by approximately $45 million of payments tied to settlement of an EPA matter. Capital expenditures were $38 million, including $19 million for rental fleet investment. Free cash flow was a use of $15 million, and the company ended 2025 with $77 million of cash. Excluding the EPA matter, Regan said free cash flow would have been $30 million. Net leverage ended the year at 3.15x, and total liquidity was $298 million.
Aftermarket expansion and new product introductions
Ravenscroft emphasized progress under Manitowoc’s CRANES+50 strategy, with non-new machine sales rising 10% year-over-year to a record $690 million in 2025. He said the company expanded aftermarket territory coverage in North Carolina, South Carolina, and Georgia, and in several key provinces in France. Manitowoc also opened or upgraded locations in Nashville, Phoenix, and Baton Rouge; Sydney, Australia; and two locations in France, and expanded its field service technician population to over 500.
On product development, Ravenscroft said the company launched the MCT 2205 at the end of 2024, describing it as the largest topless tower crane Manitowoc has produced, and said the company sold 19 units in 2025. During 2025, Manitowoc launched 11 new cranes, including the GRT 550 rough-terrain model, a 5-axle hybrid all-terrain crane, and the MCR 815, which he called the largest luffing tower crane the company has sold. He also said Manitowoc plans to unveil two additional cranes at ConExpo in March: an 80-ton boom truck (its largest boom truck) and an 8-axle, 700-ton all-terrain crane (its largest all-terrain crane).
2026 guidance, restructuring plan, and regional outlook
For 2026, Manitowoc guided to net sales of $2.25 billion to $2.35 billion and adjusted EBITDA of $125 million to $150 million. Regan said the expected improvement at the midpoint is driven by pricing to offset incremental tariff headwinds, the European tower crane market, and continued growth in the non-new machine business.
The company implemented a restructuring plan intended to streamline the organization, with projected savings of roughly $10 million in 2026. Regan said the savings are expected to offset inflation and foreign currency headwinds. Manitowoc projected 2026 free cash flow of $40 million to $65 million, including $45 million to $50 million of capital expenditures, and said it expects to reduce net leverage to below 3x during the year.
In prepared remarks and Q&A, management described mixed regional conditions:
- Americas: Ravenscroft said customer sentiment improved around U.S. elections but later reversed due to a “fluid” tariff situation, with customers waiting until late to place orders. He also flagged flat rental rates as a concern as new crane costs rise.
- Europe: He said improvement is being driven by new economic programs, with a notable recovery in tower cranes and better dealer sentiment.
- Middle East: Ravenscroft said he remains optimistic but expects a “bumpier” ride, citing tighter cash conditions in Saudi Arabia, strong residential activity in Dubai, and a slower-than-expected pace at the Stargate data center project in Abu Dhabi.
- Asia-Pacific: He said momentum and sentiment are improving, pointing to South Korea optimism tied to large Samsung and SK hynix semiconductor projects, and a positive trend in Australia while awaiting a major power transmission project.
On an emailed question during the call, Ravenscroft said January orders were “approximately $225 million,” citing a stronger tower crane winter campaign and continued demand for large rough-terrain cranes and crawlers, while noting that North America was down somewhat following large fourth-quarter stocking orders.
Management also addressed seasonality, with Regan saying the company generally expects the second and fourth quarters to be strongest and that the first quarter of 2026 will face headwinds from tariffs and foreign exchange, with restructuring benefits expected later in the year.
Looking ahead, Ravenscroft said the company plans new locations in Portugal, Mexico, Chile, and France and noted a new distribution agreement with Hiab under which MGX will represent Hiab products across 13 states. He reiterated a long-term aspirational goal of achieving 15% return on invested capital, emphasizing the role of less-cyclical non-new machine sales, which he said carry gross margins of “around 35%.”
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.
