The Manitowoc Company — Second Quarter 2026 Earnings Summary

Financial Performance

• Net sales reached $594.9 million for the quarter, a 10.3% increase year-over-year from $539.5 million.
• Non-new machine sales totaled $172.2 million, up 6.6% year-over-year.
• Net income was $14.2 million ($0.39 per diluted share), compared to $1.5 million ($0.04 per diluted share) in the prior year period.
• Adjusted net income was $16.8 million ($0.46 per diluted share), compared to $2.8 million ($0.08 per diluted share) in the prior year period.
• Adjusted EBITDA was $48.9 million, an 85.9% increase year-over-year from $26.3 million, with margin expansion of 330 basis points to 8.2%.
• Operating income was $31.1 million, compared to $9.8 million in the prior year period.
• Cash flows provided by operating activities were $8.0 million, an increase of $75.7 million year-over-year from a usage of $67.7 million.
• Free cash flow for the quarter was $(6.1) million, compared to $(73.7) million in the prior year period.
• Total assets were $1,921.5 million as of June 30, 2026, compared to $1,818.2 million as of December 31, 2025.
• Long-term debt was $460.6 million as of June 30, 2026, compared to $447.1 million as of December 31, 2025.
• Adjusted ROIC was 6.9% as of June 30, 2026, compared to 4.2% in the prior year period.

Guidance and Future Outlook

• Updated full-year 2026 net sales guidance raised to $2.3 to $2.4 billion from a prior range of $2.25 to $2.35 billion.
• Updated full-year 2026 adjusted EBITDA guidance raised to $150 to $170 million, including a $16 million net benefit from tariff refunds, from a prior range of $125 to $150 million.
• Updated full-year 2026 adjusted diluted earnings per share guidance raised to $0.80 to $1.20 from a prior range of $0.45 to $0.90.
• Updated full-year 2026 adjusted free cash flows guidance raised to $50 to $70 million from a prior range of $40 to $65 million.
• Full-year 2026 provision for income tax expense guidance raised to $17 to $24 million (excluding one-time expenses) from a prior range of $11 to $15 million.
• Management indicated a focus on executing the "CRANES+50" strategy and maintaining momentum in non-new machine sales.

Business Segments and Product Lines

• Orders for the quarter were $708.7 million, a 56.1% increase year-over-year.
• Backlog stood at $1,050.1 million at the end of the quarter.
• Management highlighted continued momentum in non-new machine sales.
• The company operates through Grove, Manitowoc, National Crane, Potain, Shuttlelift, and Upfits by Aspen Equipment brands, supported by MGX Equipment Services.

Market and Competitive Landscape

• Customer sentiment remained positive with strong quoting activity translating into higher order intake.
• The market environment is described as dynamic.
• Management cited strong customer relationships and a disciplined approach as positioning factors for growth.

Risks and Challenges

• Macroeconomic conditions, including inflation, elevated interest rates, and tariffs, may negatively impact the ability to convert backlog into revenue.
• Uncertainty regarding trade policy, including tariffs, reciprocal tariffs, and trade agreements, poses risks.
• Geopolitical events, including conflicts in Ukraine and the Middle East, may lead to market disruptions and volatility in commodity prices.
• Risks include changes in customer demand for high-capacity lifting equipment and used lifting equipment.
• Potential risks involve the ability to convert backlog, orders, and order activity into sales and the timing of those sales.
• Risks associated with high debt leverage and the ability to generate cash consistent with stated goals.
• Potential for impairment of goodwill and/or intangible assets.
• Risks related to labor negotiations, work stoppages, and labor costs.
• Risks associated with data security, technological systems, and manufacturing or design defects.

Management Commentary and Tone

• President and CEO Aaron H. Ravenscroft stated that second-quarter results exceeded expectations.
• Ravenscroft expressed being "extremely pleased" with the team's performance and the momentum in non-new machine sales.
• Management remains focused on executing the CRANES+50 strategy and believes strategic initiatives position the company well for the remainder of 2026.

Other Key Points

• The press release includes a conference call scheduled for August 7, 2026, at 10:00 a.m. ET.
• Adjusted EBITDA guidance includes a $16 million net benefit from tariff refunds.
• Capital expenditures guidance for the full year remains $45 to $50 million, with $25 million related to the rental fleet.
• Depreciation and amortization guidance remains $60 million for the full year.
• Interest expense guidance remains $35 to $38 million for the full year.
• Adjustments to non-GAAP financial measures included addbacks for restructuring expenses and costs associated with legal matters ($2.0 million in Q2 2026; $2.5 million in H1 2026).
• Inventory increased to $785.3 million as of June 30, 2026, from $683.9 million as of December 31, 2025.
• Accounts receivable increased to $294.4 million as of June 30, 2026, from $281.3 million as of December 31, 2025.