The Manitowoc Company (MTW) investor relations material

Business Transformation and Strategy

• Shifted focus from cyclical, low-margin crane sales to higher-margin, recurring aftermarket and service revenue streams, aiming to reduce cyclicality and improve margins.

• Achieved 84% growth in non-new machine sales since 2020, targeting $1B+ in non-new sales and $3B+ in total revenue.

• Reduced costs by $150 million and launched an aftermarket strategy, with a goal for aftermarket to reach half of total sales.

• Expanded global footprint with new locations in the Americas, Europe, Australia, and Asia-Pacific, and increased field service and aftermarket sales teams to 574 technicians and 47 branches as of June 2026.

• Leveraged technology platforms like ServiceMax and telematics to track crane lifecycle, enhance service efficiency, and improve customer value.

Aftermarket Growth and Product Innovation

• Aftermarket revenue grew from $375 million to over $700 million in six years, with a target of $1 billion.

• Broadened aftermarket portfolio with new products, distribution agreements, retrofits, modular anchorage beams, ergonomic and safety solutions, and technology-enabled services.

• Developed rental and used equipment strategies, including aggressive trade-ins, RPOs, and $98M invested in rental fleet growth, targeting a 3–5 year payback and supporting 15%+ ROIC.

• Introduced AI-driven tools, remote-control technology, and focused on training and upskilling field service technicians through mobile training centers and apprenticeship programs.

• Emphasized continuous improvement through the Toyota Production System, global kaizen teams, and customer-centric Kaizen events, leading to new product kits, safety enhancements, and an 8-axle all-terrain crane scheduled for Q4 2027 launch.

Market Trends and Demand Drivers

• Strong order rates and backlog over $1 billion, with recent quarters showing high sentiment and recovery from a prolonged downturn.

• Major demand drivers include infrastructure, data centers, semiconductor plants, airports, stadiums, mining, and power transmission projects globally, with secular tailwinds such as global data center construction, utility grid upgrades, and Middle East modernization.

• The average age of crane fleets exceeds 15 years, indicating significant replacement demand.

• Notable activity in Korea, UAE, and South America, with mining and oil sectors expected to ramp up as geopolitical issues resolve; European market in slow recovery, supported by housing shortages and economic plans in Germany and Spain.

• Hybrid and battery-powered crane adoption progressing slowly due to cost and engineering challenges, but specific markets show promise.