The Manitowoc Company (MTW) Q3 2024 earnings summary

Executive summary

• Q3 2024 was marked by significant market uncertainty, especially due to the U.S. presidential election and ongoing political stalemates in Europe, leading to missed sales targets and a cautious industry outlook.

• Net sales for Q3 2024 were $524.8 million, flat year-over-year; orders declined 20% to $424.7 million, with backlog down 19.1% since year-end 2023.

• Adjusted EBITDA for Q3 2024 was $26.2 million (5.0% margin), down 21% year-over-year; net loss was $7.0 million, or $0.20 per diluted share.

• Non-new machine sales rose 9% year-over-year to $169 million, with record trailing twelve-month sales of $617.5 million.

• The company remains focused on operational improvements, inventory reduction, and executing its Cranes+50 strategy.

Financial highlights

• Q3 2024 net sales were $524.8 million, nearly unchanged from $520.9 million in Q3 2023; gross profit was $87.6 million, down from $96.8 million.

• Adjusted EBITDA was $26.2 million, down from $33.3 million in Q3 2023; adjusted EBITDA margin was 5.0%, down from 6.4% last year.

• Net loss for Q3 2024 was $7.0 million, compared to net income of $10.4 million in Q3 2023; diluted EPS was $(0.20).

• Free cash flow for Q3 2024 was negative $52.9 million, with cash and cash equivalents at $22.9 million and total liquidity of $221.9 million.

• Total debt was $467.2 million as of September 30, 2024.

Outlook and guidance

• Full-year adjusted EBITDA is expected at the low end of guidance, assuming $50 million in new machines book-and-ship sales in Q4.

• Achieving the low end of free cash flow guidance requires $130 million in Q4, dependent on inventory reduction and cash collection.

• Management expects liquidity and cash flows from operations to be sufficient for operational needs over the next twelve months and to remain in compliance with debt covenants.

• Management is closely monitoring the post-election environment for a potential rebound in orders, as seen in 2016.