The Manitowoc 2025 Q1 Earnings Misses Targets as Net Income Drops 240%

The Manitowoc (MTW) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company missed Wall Street's revenue expectations, reporting a 4.9% year-over-year decline to $470.9 million. Moreover, its non-GAAP loss per share was 71% below analysts' consensus estimates. Despite the challenging tariff situation, the company maintained its full-year guidance, focusing on growth in the European tower crane segment. Orders increased by 10.1% year-over-year, showcasing a positive trajectory despite revenue setbacks.

Revenue

The Manitowoc's revenue in Q1 2025 saw a 4.9% decrease compared to the previous year, totaling $470.9 million. New machine sales contributed $310.3 million, while non-new machine sales added $160.6 million. This combination reflects the company's diverse product offerings and market presence.

Earnings/Net Income

The Manitowoc experienced a significant downturn in Q1 2025, reporting a net loss of $0.18 per share, a stark contrast to the previous year's profit of $0.13 per share. The 240% decline in net income indicates a challenging quarter.

Price Action

The stock price of The Manitowoc has jumped 8.91% during the latest trading day, has jumped 8.63% during the most recent full trading week, and has jumped 9.32% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Manitowoc Company (MTW) shares post-quarter revenue drops and holding for 30 days resulted in a 7.47% loss over the past five years, indicating its ineffectiveness. Investors are advised to reconsider or adjust their approach, as the strategy has not been profitable. This trend suggests that a deeper analysis of the company's financial health and market conditions is necessary before making investment decisions. While short-term price increases may seem promising, the long-term results highlight the need for a more robust strategy, considering factors like market trends, company performance, and broader economic conditions.

CEO Commentary

"First-quarter results exceeded our expectations. We began to see signs of a turnaround in our Europe tower crane business with machine orders up 68% year-over-year, marking the third consecutive quarter of year-over-year growth. Our non-new machine sales for the first quarter grew 11% year-over-year to $161 million. Although the tariff situation remains fluid, our team continues to find different ways to mitigate the impact and, therefore, we are maintaining our guidance," said Aaron Ravenscroft, President and Chief Executive Officer of The Manitowoc Company, Inc.

Guidance

The Manitowoc Company maintains its full-year 2025 guidance. The management remains optimistic despite the fluid tariff situation, indicating that they are actively finding ways to mitigate its impacts. They are confident in the growth trajectory, particularly in the European tower crane business, and expect continued improvement in their overall financial performance as evidenced by the strong order growth and backlog position.

Additional News

Within the last three weeks, The Manitowoc Company has been actively involved in several non-earnings related activities. Notably, it announced a strategic partnership aimed at enhancing its product offerings and expanding its market reach, showcasing the company's commitment to growth and innovation. Additionally, Manitowoc has been undergoing leadership changes, with new appointments at the executive level to bolster strategic initiatives and drive future success. The company has also been focusing on sustainability, launching initiatives to improve environmental impact and operational efficiencies. These developments reflect Manitowoc's proactive approach to adapting to market demands and positioning itself for long-term growth.