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    MTW
    Earnings call· Jun 2026(Q2 FY26)

    MANITOWOC CO Q2 FY26 earnings call MTW

    Aug 7, 2026 Source

    Executive summary

    Manitowoc Q2 FY26 — Strong Orders, Backlog Growth, and Increased Guidance

    Manitowoc delivered a robust second quarter, driven by strong order intake and improved operational execution, leading to increased full-year guidance. The company is actively integrating AI into its operations and expanding its aftermarket business, while navigating geopolitical challenges and high crane utilization. Management is focused on capital allocation for share repurchases and opportunistic acquisitions, having achieved its net leverage target.

    Highlights

    5

    • Sales increased 10% year-over-year to $595 million in Q2 FY26.

    • Adjusted EBITDA nearly doubled year-over-year to $49 million, expanding margin by 330 basis points to over 8%.

    • Orders were strong at $709 million, a 56% increase year-over-year, leading to a 1.2 book-to-bill ratio.

    • Backlog grew to $1.05 billion, up $321 million year-over-year, with $750 million expected to ship this year.

    • Net leverage ratio improved to 2.6 times, below the target of 3 times.

    Concerns

    2

    • The conflict in Iran is creating inflationary pressures across the region, with potential for prolonged instability to affect economic activity.

    • The Encore rebuild business has been slow due to high crane utilization, indicating customers are unwilling to release machines for refurbishment.

    Guidance & targets

    6
    CategoryTargetConfidence
    Full-year Net Sales
    $2.3 billion to $2.4 billion
    high materiality
    High
    Full-year Adjusted EBITDA
    $150 million to $170 million
    high materiality
    High
    Full-year Adjusted Diluted EPS
    $0.80 to $1.20
    high materiality
    High
    Full-year Free Cash Flow
    $50 million to $70 million
    high materiality
    High
    Q3 Incremental Tariff Benefit
    $4 million
    medium materiality
    High
    Full-year Net Tariff Impact to Adjusted EBITDA
    $16 million
    medium materiality
    High

    Operational metrics

    18
    Adjusted EBITDA
    $49 millionnearly doubled year-over-year (vs $26 million)
    Q2 FY26

    Strong performance driven by operational execution and tariff benefits.

    Adjusted EBITDA Margin
    over 8%expanded 330 basis points year-over-year
    Q2 FY26

    Margin expansion reflects improved profitability.

    SG&A Expenses (Adjusted)
    $88 million
    Q2 FY26

    Improved efficiency in selling, general, and administrative costs.

    IEPA Tariff Refunds (Cash Received)
    $26 million
    Q2 FY26

    Cash flow benefited from tariff refunds.

    IEPA Tariff Benefit (Net Year-over-Year Operating Income)
    $9 million
    Q2 FY26

    Net benefit to operating income from tariffs during the quarter.

    Networking Capital
    $567 millionimproved 280 basis points year-over-year
    Q2 FY26 end

    Efficient management of working capital.

    Capital Expenditures
    $14 million
    Q2 FY26

    Investment in property, plant, and equipment, including rental fleet.

    Cash Balance
    $96 million
    Q2 FY26 start

    Cash on hand at the beginning of the quarter.

    Total Liquidity
    $304 million
    Q2 FY26 end

    Total available liquidity at quarter end.

    Net Leverage Ratio
    2.6 timesbelow target of 3 times
    Q2 FY26 end

    Achieved target leverage ratio due to stronger first half performance.

    Non-new Machine Sales
    $172 millionup 6% year-over-year
    Q2 FY26

    Record performance in the aftermarket business, a key part of the Cranes Plus 50 strategy.

    Safety Recordable Rate
    0.79improved substantially
    YTD

    Safety is a top priority, with significant improvement year-to-date.

    AI Users
    over 450doubled this quarter
    Q2 FY26

    Accelerated deployment and adoption of AI tools within the company.

    July Orders
    over $200 million
    July 2026

    Strong order intake continued into July, despite it typically being a slower month.

    Crane Utilization
    very high
    Q2 FY26

    High utilization indicates strong demand for cranes, leading to slow Encore rebuild business as owners are unwilling to give up machines.

    Dealer Inventories
    pretty lean
    Q2 FY26

    Low dealer inventories contributed to strong orders from the traditional dealer channel for replenishment.

    Oil and Gas / Mining Sector Contribution
    not meaningful
    Q2 FY26

    Despite higher commodity prices, these sectors have not yet provided significant demand.

    Data Center and Semiconductor Investments Demand
    strong demandcontinue
    well into 2027

    Expected to be a continued driver of demand for cranes.

    Industry KPIs

    5
    MetricValueDetails
    Tariff cost impact$9 millionUSD
    Parts aftermarket business$706 millionUSD
    Data center prime power demandstrong demand
    Dealer inventory months of supplypretty lean
    Order backlog order intake by segment$709 million (orders), $1.05 billion (backlog)USD

    Orderbook & backlog

    3
    Total Orders$709 millionQ2 FY26

    increase of 56% from a year ago

    Total Backlog$1.05 billionQ2 FY26 end

    up $110 million from last quarter, and up $321 million from a year ago

    Approximately $750 million expected to ship this year

    Book-to-bill ratio1.2Q2 FY26

    Product announcements

    3
    ProductTypeDetails
    8-axle all-terrain cranelaunch
    Standardized rigging kits and ancillary productsexpansion
    Poton eTech (AI agent)launch

    Deals & partnerships

    1
    Mining customersThree-year service contract for greenfield operation$2.5 million3 years

    Awarded in Peru at one of the world's largest copper-zinc mines, stemming from the Cranes Plus 50 strategy.

    Risks & headwinds

    2
    Geopolitical instability (Iran conflict)ongoing

    Creating inflationary pressures across the region; potential to affect economic activity and customer investment decisions.

    Mitigation: Folks have found alternative shipping routes; management remains cautiously optimistic due to strong customer engagement and pent-up demand.

    Seasonality in ordersQ3 FY26

    July and August are typically slower months due to European holiday period.

    Mitigation: Backlog is over $1 billion, and customer sentiment remains strong; July orders were still over $200 million.

    What to watch in Q3 FY26

    5

    H2 Revenue and EBITDA Cadence

    next quarter
    CurrentQ3 expected to be seasonally slower, but with $4M incremental tariff benefit.
    TargetConfirmation of expected seasonality and tariff benefit impact on Q3/Q4 results.

    Why it matters

    Understanding the seasonal impact and the contribution of tariff benefits is crucial for assessing the company's ability to meet full-year guidance.

    Yes, as I'm sure you know, we have our normal seasonality with Q3 being because of the European holiday. With that said, we do expect about $4 million of incremental tariff benefit in Q3, because some of it's hung up on the balance sheet. But, you know, the normal seasonality outside of that $4 million is what you can expect.

    Q&A highlights

    5

    Can you disaggregate the 56% year-over-year order growth by region (US, Canada, LATAM, Europe) and specify how much was due to dealer stocking versus specific projects?

    Management stated they do not typically share specific regional percentages but confirmed strong demand in the US, with dealers replenishing lean inventories. Demand was generally strong across all regions.

    “I mean, I don't think we share much more color than what we put into the script in terms of actual percentages, but I think we pretty well outlined, you know, there's good strength in the US, definitely dealers were replenishing, although dealer inventory is still on the low side, we feel like. But yes, demand has been pretty strong everywhere.”

    asked by Andrew Ozzy (Wells Fargo) · answered by Brian Regan

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q2 Performance and Market Conditions

    Manitowoc delivered strong second-quarter results with sales up 10% and adjusted EBITDA increasing over 85% year-over-year. The global crane market remains robust, evidenced by orders exceeding $700 million in Q2 and a book-to-bill ratio of 1.2. Crane utilization is very high, and dealer inventories are lean, indicating healthy underlying market conditions, particularly in the Americas.

    02

    AI Integration and Manitowoc Way

    The company is meaningfully integrating artificial intelligence into its operations, with over 450 users and plans to accelerate deployment through training tools and global user groups. AI is being applied to the 'Lessons Learned' program and daily 'Manitowoc Way' activities, with larger projects using AI agents scoped for engineering and aftermarket services. An AI agent, Poton eTech, is already supporting tower crane field service technicians.

    03

    Cranes Plus 50 Strategy and Aftermarket Expansion

    Manitowoc's 'Cranes Plus 50' strategy, focused on non-new machine sales, achieved another record, growing 7% year-over-year to $172 million in Q2 and reaching $706 million on a trailing 12-month basis. Initiatives include expanding service locations, growing aftermarket sales/techs, increasing lifting accessory sales, and leveraging technology. A three-year, $2.5 million service contract was awarded in Peru, and new facilities like a rapid response shop and a boom refurbishing center of excellence were opened in Shady Grove.

    04

    Regional Market Dynamics

    North America shows positive customer sentiment with solid end-market activity and high fleet utilization. Europe presents a mixed environment, with strong mobile crane order growth offsetting a modest decline in self-erecting tower crane orders due to a transition to new EN standards. The Middle East remains solid despite regional instability, with alternative shipping routes mitigating Strait of Hormuz disruptions. Asia, particularly South Korea (semiconductor industry), Vietnam, and Australia, continues to exhibit robust demand into 2027.

    05

    Tariff Impact and Financial Strength

    The company benefited from IEPA tariff refunds, receiving $26 million in cash during the quarter, with a net year-over-year operating income benefit of $9 million. This contributed to the strong financial performance and the increase in full-year adjusted EBITDA guidance. Manitowoc also successfully reduced its net leverage ratio to 2.6 times, below its target of 3 times, enabling opportunistic capital allocation for share repurchases and acquisitions.

    AI-generated summary of the company’s earnings call. Not investment advice.