Manitowoc Reports 4.9% Decline in Q1 2025 Net Sales, Net Loss of $6.3 Million

The Manitowoc Company, Inc. reported a decline in financial performance for the first quarter of 2025, with net sales decreasing by 4.9% to $470.9 million compared to $495.1 million in the same period of 2024. The decrease was primarily attributed to a $39.6 million drop in new machine sales across all segments, although this was partially offset by a $15.4 million increase in non-new machine sales, particularly in the Americas and Europe/Africa segments. The company's gross profit also fell by 2.9% to $89.8 million, reflecting lower sales and manufacturing volume, despite an increase in gross profit margin percentage from 18.7% to 19.1%.

Operating income for the quarter was significantly impacted, dropping to $5.3 million from $15.2 million in the prior year, resulting in a net loss of $6.3 million, compared to a net income of $4.5 million in Q1 2024. The increase in engineering, selling, and administrative expenses, which rose by 9.1% to $82.9 million, contributed to the decline in profitability. The company also reported a benefit for income taxes of $2.5 million for the quarter, contrasting with a provision of $1.9 million in the previous year.

In terms of operational developments, Manitowoc completed an asset acquisition from Ring Power Corporation for $12.9 million, enhancing its distribution capabilities in Georgia, North Carolina, and South Carolina. The company’s total backlog increased by 22.7% to $797.8 million from $650.2 million at the end of 2024, although it represented a 17.9% decrease from the previous year. Orders for the quarter rose by 10.1% to $610.3 million, driven by higher demand in the Americas segment.

Geographically, the Americas segment saw a decline in net sales of 8.4% to $259.3 million, while the EURAF segment experienced a slight increase of 1.8% to $145.6 million, primarily due to higher tower crane sales. The Middle East and Asia Pacific (MEAP) segment's sales remained relatively stable at $66.0 million. The company’s cash and cash equivalents stood at $41.4 million as of March 31, 2025, down from $48.0 million at the end of 2024, while total debt increased to $399.0 million from $390.2 million.

Looking ahead, Manitowoc's management expressed cautious optimism regarding future performance, emphasizing the importance of converting backlog into revenue amidst ongoing macroeconomic challenges, including inflation and supply chain constraints. The company remains focused on strategic initiatives to enhance operational efficiencies and capitalize on market opportunities, while maintaining compliance with its debt covenants.