Manitowoc's Q1 2025: Unpacking Contradictions in Tariff Strategies, Construction Markets, and Crane Demand

Tariff mitigation strategies and effectiveness, U.S. non-residential construction market dynamics, European tower crane market recovery, and crane demand and order patterns are the key contradictions discussed in Manitowoc's latest 2025Q1 earnings call.



Strong Financial Performance in Q1 2025:
- The Manitowoc Company reported $471 million in revenue and $22 million in adjusted EBITDA for Q1 2025.
- Orders were a strong $610 million and backlog ended the period at $798 million.

Order Trends and Market Recovery:
- Manitowoc saw a 10% increase in total orders, driven by the Americas, including a 68% year-over-year increase in new machine orders in the European tower crane business.
- This signals the beginning of a market recovery, particularly in Europe where machine orders were up nearly 70% year-over-year.

Tariff Impact and Mitigation Strategies:
- Manitowoc is modeling $60 million of incremental costs due to tariffs, with plans to mitigate 80% to 90% of these costs.
- Mitigation strategies include price increases, surcharges, alternative sourcing, and vendor sharing of pain.

Non-New Machine Sales Growth:
- Non-new machine sales were $161 million, up 11% year-over-year, with trailing 12 months non-new machine sales reaching a record of $645 million.
- Growth is driven by a focus on the CRANES+50 strategy, which includes increasing aftermarket sales and expanding service capabilities globally.

Regional Market Performance:
- North America saw a 35% year-over-year increase in orders through the third-party dealer channel.
- In Europe, overall tower crane orders were up nearly 70% year-over-year, reflecting a recovery in the market.