The Manitowoc Company (MTW) investor relations material

Strategic transformation and business focus

• Transitioning from manufacturing to a service-oriented model, emphasizing non-new machine sales such as parts, services, rentals, and used cranes, which are less cyclical and higher margin, now reaching $676 million in trailing 12-month sales.

• Expansion of service footprint with nearly 50 locations and 500 field service techs, aiming to double or triple this workforce to support growth and customer engagement.

• Continuous improvement in safety, employee engagement, and operational efficiency, including mentorship programs, best practice sharing, and innovative tools developed by staff.

• Strategic acquisitions and facility upgrades in North America, Europe, and Australia to enhance service capabilities and market reach, with $180 million invested in acquisitions over five years.

• Focus on working capital management and inventory leverage to drive return on invested capital, with plans to scale up as the business grows.

Market dynamics and industry trends

• Crane industry remains cyclical, closely tied to commodity prices, infrastructure, and construction cycles, with recent years impacted by tariffs, inflation, and aging rental fleets.

• Secular demand drivers include global infrastructure needs, data center expansion, energy transition, and major projects in Europe and the Middle East, such as nuclear plants and Saudi Vision 2030.

• European tower crane business, previously a headwind, is now recovering with five consecutive quarters of year-over-year growth, high utilization, and low inventory.

• U.S. infrastructure spending has lagged expectations, but data center and AI-related construction present significant opportunities.

• Regional revenue mix: roughly 50% U.S., 28% Europe/Africa, balance in Middle East and Asia Pacific.

Technology, innovation, and future outlook

• Launching CCS 2.0 to improve crane operator experience and ease of use, with a focus on seamless transition between different crane brands.

• AI and automation seen as productivity tools rather than headcount reducers, with ServiceMax software enabling global knowledge sharing among field techs.

• Rental fleet strategy emphasizes young fleets for high-margin used sales and flexible support for large construction projects.

• Targeting $3 billion in revenue through a combination of M&A, organic growth in non-new machine sales, and market tailwinds, with double-digit EBITDA and improved ROIC as key financial goals.

• Conservative capital allocation with a focus on reducing net leverage below 3x before considering share repurchases.