The Manitowoc Company (MTW) 15th Annual Midwest IDEAS Investor Conference summary

Financial performance and market environment

• Revenue guidance for 2023 is $2.2 billion, with EBIT expected between $125–$140 million, reflecting market softness, especially in tower and mobile cranes.

• Reported 2023 revenue of $2.2B, adjusted EBITDA of $175M (7.9% margin), and adjusted ROIC of 11.1%.

• Long-term revenue target is $3 billion, with $1 billion from non-new machine sales and one-third from aftermarket/non-new machine sales.

• Gross margins in aftermarket business are approximately 35%, supporting profitability and ROIC goals.

• Adjustments to build schedules are underway to maintain a strong balance sheet entering next year.

Strategic transformation and growth initiatives

• Since 2016, focus has shifted from cyclical new machine sales to higher-margin, less cyclical aftermarket and services.

• Major restructuring and cost reductions ($100–$120 million) enabled growth and acquisitions.

• CRANES+50 strategy targets growth in aftermarket, including used sales, rental, service, and parts, with expansion in North America, EU, and Belt & Road regions.

• Two dealer acquisitions in 2021 expanded aftermarket footprint and reduced cyclicality; $180M in acquisitions since 2021 expanded service locations and technician headcount to over 150.

• Non-new machine sales grew 34% from $449M in 2021 to $603M TTM June 2024, with a new target of $1 billion.

Operational excellence and culture

• The Manitowoc Way, modeled after the Toyota Production System, drives lean manufacturing, quality, safety, and environmental improvements.

• Continuous improvement initiatives have saved $1 million in environmental costs, especially through paint booth optimization.

• Lean practices are now applied to aftermarket operations, including rental fleet management and field service optimization.