Manitowoc's Q2 2025: Navigating Tariff Impacts and Revenue Contradictions Amid Market Uncertainty

Impact of tariffs on pricing strategy, order backlog and expectations for revenue, backlog and revenue coverage, customer behavior and market uncertainty, supply chain flexibility and adaptability are the key contradictions discussed in Manitowoc's latest 2025Q2 earnings call.



Tariff Impact and Demand Elasticity:
- Manitowoc reported an expected full year gross impact of $35 million from tariffs, with plans to mitigate 90% of these costs.
- The change in assumptions is due to a combination of lower purchases and a different mix of various tariffs, impacting demand elasticity in the U.S. due to price sensitivity.

Regional Sales and Order Dynamics:
- The company's non-new machine sales reached $162 million, up 10% year-over-year, with higher orders driven by the European tower crane business.
- This growth was offset by slower demand in the U.S. due to dealer reluctance to commit to orders amidst tariff uncertainties.

Backlog and Future Demand:
- Manitowoc's backlog ended at $729 million, with most units expected to be shipped in the second half of the year.
- Future demand is anticipated to be impacted by low dealer inventory levels, potentially leading to accelerated market acceleration by early next year.

Profitability and Financial Guidance:
- The company reported an adjusted EBITDA of $26 million, down $10 million year-over-year, due to lower sales and higher SG&A costs.
- Manitowoc maintained guidance for the low end of its adjusted EBITDA range, reflecting the impact of tariffs and build plan reductions.