Manitowoc's Q4 2024 Earnings: A Mixed Bag of Growth and Challenges

As an investor, I've always been drawn to companies that demonstrate a strong focus on growth and innovation. Manitowoc Company Inc. (MTW), a leading provider of engineered lifting solutions, has certainly caught my attention with its recent earnings call for the fourth quarter of 2024. While the results were a mixed bag, there were some notable highlights and challenges that warrant a closer look.



First, let's address the elephant in the room: Manitowoc's earnings per share (EPS) of -$0.23 in Q4 2024 were significantly lower than the -$0.04 reported in the same period last year. However, it's essential to consider that the company's adjusted EPS of $0.09 was a substantial improvement over the adjusted EPS of -$0.03 in Q4 2023. This discrepancy highlights the importance of looking beyond the headline numbers and examining the underlying trends and factors that contribute to a company's performance.

One of the most encouraging aspects of Manitowoc's Q4 2024 earnings call was the company's focus on growing its non-new machine sales and expanding its aftermarket business. In the fourth quarter, non-new machine sales increased by $16.5 million year-over-year, reaching $629.1 million. This represents a 67% increase compared to the year before the launch of its CRANES+50 strategy. This focus on aftermarket sales and services has contributed to the company's overall growth and has helped to offset any declines in new machine sales.



However, there were also some challenges and concerns raised during the earnings call. One notable issue was the decline in Manitowoc's backlog, which decreased notably in the fourth quarter of 2024. This raises concerns about future growth momentum and the ability to maintain the current level of aftermarket sales and services. Additionally, the company's revenue remained flat compared to the prior year, which may indicate that the market for new machine sales is still struggling to recover from the impacts of the COVID-19 pandemic and other economic factors.

To address these challenges, Manitowoc has taken steps to expand its aftermarket footprint in the U.S. by acquiring the distribution rights for the Carolinas and Georgia. This acquisition will allow the company to better serve its customers in the southeastern region and potentially increase its aftermarket sales and services in this area. Additionally, the company is focused on showcasing its new innovative products and aftermarket services at industry events such as bauma 2025, which can help to drive demand for its products and services and further expand its market reach.

In conclusion, Manitowoc's Q4 2024 earnings call presented a mixed bag of growth and challenges. While the company's focus on growing non-new machine sales and expanding its aftermarket business is a positive sign, the decline in backlog and flat revenue raise concerns about future growth momentum. To address these challenges, Manitowoc is taking steps to expand its aftermarket footprint and showcase its new products and services at industry events. As an investor, I will continue to monitor Manitowoc's progress and assess its ability to execute on its long-term growth strategy.