The Manitowoc Company (MTW) 16th Annual East Coast IDEAS Conference summary

Strategic growth initiatives

• Focus on expanding the higher-margin Aftermarket business, targeting $690 million in 2025 and $1 billion longer-term, supported by acquisitions and direct customer engagement.

• CRANES+50 strategy aims to drive recurring revenue and less cyclical performance, with Aftermarket margins at 35%.

• Service technician workforce expanded by 50 in Q1, with ongoing investments in training and retention to support Aftermarket growth.

• M&A strategy includes acquiring dealers and expanding service locations, with recent moves in Australia and the U.S. Southeast.

• Digital tools like PTC and ServiceMax are being leveraged to track fleet and enhance proactive service capabilities.

Market outlook and competitive positioning

• Anticipates a global crane fleet refresh driven by secular tailwinds in infrastructure, energy, and industrial sectors.

• Competes as one of three major Western crane manufacturers, with strong positions in Europe, the Americas, and emerging markets.

• Effective competition in emerging markets, especially in Tower Cranes, supported by local manufacturing and rapid product development.

• Rental fleet supports customers with flexible options like rent-to-own, maintaining a young fleet for high-margin used sales.

• Ancillary product innovation, such as high-margin accessories, is being scaled across regions to boost profitability.

Financial targets and capital allocation

• Aspirational revenue target of $3 billion within five years, with EBITDA margin goal of 12% and ROIC target of 15%.

• Aftermarket CAGR expected at 5%+ annually, with recurring revenue raising the profitability floor.

• CapEx for 2026 guided at $45–$50 million, split between maintenance and rental fleet replacement.

• Prioritizing debt reduction to bring leverage below 3x, with $40–$65 million free cash flow expected this year.

• Stock repurchases considered once leverage targets are met, with $29 million currently authorized.