The Manitowoc 2025 Q2 Earnings Misses Targets with Net Income Down 6.3%

The Manitowoc reported its fiscal 2025 Q2 earnings on Aug 08th, 2025, with mixed results. The company missed expectations with a 4.0% revenue decline and a 6.3% drop in net income. Management revised its full-year guidance to the low end of its EBITDA range due to ongoing tariff challenges and reduced build schedules. The stock has seen mixed performance following the report.

The total revenue of The Manitowoc decreased by 4.0% to $539.50 million in 2025 Q2, down from $562.10 million in 2024 Q2.

The Manitowoc's EPS declined 20.0% to $0.04 in 2025 Q2 from $0.05 in 2024 Q2. Meanwhile, the company's net income declined to $1.50 million in 2025 Q2, down 6.3% from $1.60 million reported in 2024 Q2. The earnings were below expectations, highlighting a challenging operating environment.

The stock price of The Manitowoc has jumped 8.74% during the latest trading day, has tumbled 13.28% during the most recent full trading week, and has plummeted 21.31% month-to-date.

The strategy of buying Manitowoc (MTW) shares 30 days after its earnings release and holding for another 30 days delivered moderate returns but underperformed the market. The strategy’s CAGR was 10.18%, trailing the benchmark by 37.25%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.31, the strategy had minimal risk but lacked significant growth potential.

Aaron H. Ravenscroft, CEO, highlighted Q2 revenue of $540 million and adjusted EBITDA of $26 million, noting 10% year-over-year growth in non-new machine sales. He emphasized ongoing challenges from tariffs, adjusting the full-year impact to $35 million (from $60 million) due to lower purchases and a different tariff mix. The CEO acknowledged a drag on U.S. demand due to uncertainty around pricing and purchasing decisions but expressed cautious optimism about future recovery, especially if dealer inventory reaches historic lows. Strategic investments include expanding service branches and implementing ServiceMax for enhanced customer focus and asset management. Ravenscroft emphasized the importance of the Cranes+50 strategy in building recurring revenue and long-term value despite a turbulent operating environment.

The company guides to the low end of its full-year adjusted EBITDA range of $120 million to $145 million, citing ongoing challenges from tariffs and reduced build schedules. It expects free cash flow to be on the low end of the original range, estimated at $10 million to $15 million for 2025. The CFO noted a net leverage ratio of approximately 4x at the end of Q2, with a focus on reducing leverage to below 3x by year-end. The company anticipates a recovery in the U.S. market if dealer inventory drops significantly, potentially driving demand in 2026.

In Nigeria, the Punch newspaper reported on several major developments, including a significant surge in the used car market driven by financial hardship, where more owners are selling private vehicles. Police in Akwa Ibom State arrested a suspected ritualist for allegedly providing charms to armed robbers, underscoring ongoing security challenges. President Bola Tinubu approved backlog payments for pensioners, addressing long-standing concerns among retirees. Meanwhile, Nigeria’s foreign direct investment dropped by 70% over three months, indicating a broader economic slowdown. These events highlight a turbulent environment across both corporate and geopolitical fronts.