Manitowoc (MTW 3.52%), a leading manufacturer of cranes and lifting equipment, released its second-quarter earnings on August 7, 2025, reporting results for the period ending June 30, 2025. The main news was a significant earnings and revenue miss: Non-GAAP earnings per share came in at $0.08, versus analyst expectations of $0.18. The quarter reflected ongoing market and operational pressures, with adjusted EBITDA dropping to $26.3 million from $36.0 million last year and free cash flow turning deeply negative. The downturn was offset by a 6.0% rise in new orders and continued strength in aftermarket services, but overall, the period was marked by margin compression and ongoing cash flow challenges.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.08 | $0.18 | $0.25 | (68.0 %) |
| Revenue (GAAP) | $539.5 million | $584.96 million | $562.1 million | (4.0 %) |
| Adjusted EBITDA | $26.3 million | $36.0 million | (26.9 %) | |
| Free Cash Flow (Non-GAAP) | $(73.7 million) | $(1.9 million) | N/M | |
| Orders | $453.9 million | $428.6 million | 6.0 % |
Source: Analyst estimates for the quarter provided by FactSet.
Business overview and key focus areas
Manitowoc designs, manufactures, and supports a wide range of lifting equipment for the global construction industry. The company offers mobile cranes, tower cranes, and boom trucks as part of its product lines. It also invests in aftermarket services for crane maintenance, parts, and technical support.
Manitowoc organizes its business into key geographic segments: the Americas, Europe and Africa (EURAF), and the Middle East and Asia Pacific (MEAP). Success depends on effective operations in each region, continued product innovation, aftermarket expansion, integration of acquisitions, and executing on operational efficiency through process improvement methods known internally as “The Manitowoc Way.” It has recently emphasized aftermarket services through its CRANES+50 strategy, aiming to diversify and stabilize revenue by growing non-new machine sales to $1.0 billion.
Quarterly performance: Drivers, challenges, and notable developments
Revenue reflected a 4.0% drop from the prior year, falling short of analyst estimates by 7.8% on a GAAP basis. Earnings per share (Non-GAAP) dropped 68% year over year from Q2 2024 and missed by $0.10. This marked the second straight quarter of declining net sales, with GAAP net sales decreasing in both Q1 and Q2 2025. Margin compression was visible in a 26.9% fall in adjusted EBITDA to $26.3 million. Management cited tariffs and softer new machine demand as key causes. Tariff impacts for fiscal 2025 are forecast at $60 million, with mitigation actions in place, though not eliminating all cost pressures. Gross profit (GAAP) decreased slightly, while selling, general, and administrative expenses and inventory increased.
Despite revenue and profit declines, the company reported order growth of 6.0% to $453.9 million. The European tower crane market was notably strong, helped by government infrastructure spending and incentives in Germany, as noted in company commentary. The MEAP region also showed improvements, driven by demand in the Middle East and signs of a pickup in Asia Pacific. In the U.S., crane rental houses remain busy and dealer inventory is contracting, with management expecting it will take about six months for the market to find equilibrium. The company’s order backlog shrank from $797.8 million at the end of Q1 to $729.3 million at the end of Q2 2025, underlining a more cautious outlook for future quarters.
Product development continues to focus on customer demand for enhanced performance, such as longer boom lengths for mobile cranes and better roadability. Manitowoc’s hybrid all-terrain cranes have received positive industry feedback, although no major product launches were detailed for the period. Aftermarket services emerged as a stabilizing factor, with non-new machine sales—including parts, remanufacturing, and technical support—up 9.7% year over year to $161.6 million.
These additions have strengthened Manitowoc’s direct presence in North America and played a role in the ongoing gains in aftermarket revenue. The company’s emphasis on operational efficiency, through lean manufacturing and process discipline, did not translate into improved financials this quarter. Inventory climbed 28% since year-end, reaching $782.5 million as of June 30, 2025, contributing to a net cash outflow and weaker free cash flow.
Looking ahead: Outlook and key areas to watch
Management now expects to finish fiscal 2025 at the low end of its previously stated guidance range, signaling persistent uncertainty, especially in the U.S. market. Leadership pointed to a likely six-month period for the market to find equilibrium and did not revise headline guidance figures for fiscal 2025. Adjusted return on invested capital was 4.2% as of June 30, 2025, falling short of the targeted 15% and highlighting ongoing profitability challenges.
Looking ahead, investors and market watchers should monitor progress in the conversion of the company’s backlog into revenue, the impact of tariff mitigation, inventory reduction efforts, and continued growth in aftermarket services. Cash flow and margin trends remain under scrutiny, while regional order patterns and new product reception are likely to shape the company’s performance in the coming quarters.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
