Executive Summary

Q1 2024 delivered 8.1% organic revenue growth to $73.3M, gross margin expanded 179 bps to 23.0%, and adjusted EBITDA rose 33.5% to $8.4M (11.4% margin), reflecting improved manufacturing throughput, mix optimization, pricing, and supply-chain cost reductions .
Backlog declined sequentially to $154.2M from $170.3M in Q4, but remains healthy at 6–8 months depending on product category; management cited dealer hesitancy given interest rates/inflation and portfolio rationalization, partly offset by infrastructure and power/transmission projects .
Guidance was reiterated: FY24 revenue $300–$310M and adjusted EBITDA $30–$34M (10.5% margin at midpoint), implying continued margin expansion and execution on Elevating Excellence initiatives .
Consensus estimates from S&P Global for Q1 2024 were unavailable; therefore beat/miss versus Street could not be determined (S&P Global estimates unavailable).
Near-term catalysts include expanding PM Group articulated crane distribution in North America, the PM 70.5 launch, and accelerated rental fleet investment (~$7M front-loaded in H1) to exploit robust North Texas demand .

What Went Well and What Went Wrong

What Went Well

Strong operational execution drove 8% organic revenue growth, expanded gross margin to 23.0%, and 11.4% adjusted EBITDA margin; CEO highlighted progress under Elevating Excellence and sourcing/supply-chain cost reductions .
“We delivered a strong first quarter performance, highlighted by 8% year-over-year organic revenue growth and strong margin realization…” — CEO Michael Coffey .
Lifting Equipment revenue grew 7.9% to $66.0M; Rental revenue grew 9.2% to $7.4M on healthy regional demand and Lubbock ramp .
Net leverage improved to 2.7x (from 2.9x in Q4), with management expecting working capital normalization to bolster free cash flow and further deleveraging .

What Went Wrong

Backlog fell to $154.2M from $170.3M in Q4, reflecting increased production velocity, elimination of lower-margin products, and dealer hesitancy amid rates/inflation; book-to-bill under 1 for multiple quarters was noted in Q&A .
FX losses and higher interest expense weighed on other income; Q1 recorded a $0.476M FX loss and $1.872M interest expense, dampening bottom-line leverage .
Management flagged seasonality (particularly Q3 in Europe) and maintained a cautious stance on raising guidance despite strong Q1 margins .

Financial Results

Consolidated P&L and Profitability (USD Millions unless noted)

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($M)	$71.331	$78.653	$73.343
Diluted EPS (GAAP) ($)	$0.08	$0.26	$0.11
Adjusted Diluted EPS ($)	$0.14	$0.31	$0.17
Gross Margin (%)	23.3%	20.9%	23.0%
Operating Income ($M)	$5.179	$4.766	$4.910
Operating Margin (%)	7.3%	6.1%	6.7%
Adjusted EBITDA ($M)	$8.453	$8.022	$8.389
Adjusted EBITDA Margin (%)	11.9%	10.2%	11.4%
Backlog ($M)	$196.872	$170.286	$154.182

Notes: Q1 2024 revenue -6.8% q/q vs Q4 but +8.1% y/y; gross margin +179 bps y/y; adjusted EBITDA +33.5% y/y .

Segment Revenue

Segment	Q3 2023	Q4 2023	Q1 2024
Lifting Equipment Revenue ($M)	$63.7	$70.8	$66.0
Rental Equipment Revenue ($M)	$7.6	$7.9	$7.4

Operating Expense and Balance Sheet KPIs

Metric	Q3 2023	Q4 2023	Q1 2024
SG&A ($M)	$10.545	$10.780	$11.119
R&D ($M)	$0.861	$0.876	$0.854
Net Leverage (Net Debt / TTM Adj. EBITDA) (x)	2.9x	2.9x	2.7x
Cash & Equivalents ($M)	$4.876	$9.481	$5.051
Total Debt ($M)	$91.275	$94.940	$91.434
Net Debt ($M)	$86.399	$85.459	$86.383

Guidance Changes

Metric	Period	Previous Guidance (Feb 29, 2024)	Current Guidance (May 2, 2024)	Change
Revenue ($M)	FY 2024	$300–$310	$300–$310	Maintained
Adjusted EBITDA ($M)	FY 2024	$30–$34	$30–$34	Maintained
Adjusted EBITDA Margin (%)	FY 2024	10.5% at midpoint	10.5% at midpoint	Maintained

Management reiterated FY24 guidance, citing strong backlog, favorable infrastructure/T&D/mining demand, and operational initiatives .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
Supply chain, sourcing, costs	Implemented surcharges to offset steel; margin expansion	Pricing actions; continued efficiencies	New suppliers, coordinated procurement delivering cost reductions	Improving cost profile
Backlog and orders/book-to-bill	Backlog decline due to increased throughput; healthy vs pre-pandemic	Backlog at ~$170M (~9 months), portfolio optimization	Backlog $154.2M; 6–8 months; dealers hesitant on rates/inflation; infrastructure/power offset	Normalizing with shorter lead times
Product portfolio & PM Group	Targeting new introductions and dealer expansion	Focus on PM/Oil & Steel/Valla in NA	Launch of PM 70.5; expanding PM distribution in NA	Increasing NA penetration
Rental strategy	Lubbock ramp; pricing gains	Strong demand; 7.3% growth	~$7M growth capex pulled into H1; robust NTX demand	Accelerated investment
Margin execution	Gross margin +427 bps; adj. EBITDA margin 11.9%	Gross margin +162 bps; adj. EBITDA margin 10.2%	Gross margin 23.0%; adj. EBITDA margin 11.4%	Sustained expansion
Macro (rates/inflation) & infrastructure	Favorable energy/infrastructure demand	Steel price headwinds offset by pricing	Dealer caution on rates/inflation; infrastructure and T&D projects supportive	Mixed: near-term caution, medium-term support
Seasonality	N/A	N/A	Q3 European seasonality cited; caution on raising guide early	Seasonal dip expected

Management Commentary

“We delivered a strong first quarter performance, highlighted by 8% year-over-year organic revenue growth and strong margin realization… more than 33% year-over-year growth in first quarter Adjusted EBITDA.” — CEO Michael Coffey .
“We’ve enhanced our procurement and supply chain capabilities, adding several new suppliers, resulting in meaningful cost reductions… contributed to an Adjusted EBITDA margin of 11.4%.” — CEO Michael Coffey .
“We finished the first quarter with a ratio of net debt to trailing twelve-month adjusted EBITDA of 2.7x… and nearly $30 million of cash and availability under our credit facilities.” — CFO Joseph Doolan .
“Current backlog ranges between 6 and 8 months… healthy level… providing visibility well through the end of the year.” — CEO Michael Coffey .
“We are reiterating our full year 2024 financial guidance… revenue $300–$310M and adjusted EBITDA $30–$34M.” — CFO Joseph Doolan .

Q&A Highlights

Bookings/book-to-bill and backlog: Management expects backlog to normalize as lead times shorten; dealer hesitancy (rates/inflation) weighs on bookings, while infrastructure/T&D projects are supportive; healthy backlog viewed at 4–8 months .
Mix and margins: Heavier straight boom demand expected; articulated cranes (PM) layering into NA should favor margins; some lower-margin products were discontinued .
Guidance conservatism and seasonality: Q1 margins were strong, but management cited typical Q3 seasonality (Europe) and preference to avoid early guide raises; TTM adjusted EBITDA margin ~10.7% vs 11–13% target .
Rental capex: ~$7M rental fleet expansion in North Texas, front-loaded in H1 to capture demand; Lubbock performance ahead of expectations .

Estimates Context

S&P Global consensus estimates for Q1 2024 (EPS and revenue) were unavailable due to missing company mapping; we cannot determine beat/miss versus Street (S&P Global estimates unavailable).
Given adjusted EPS of $0.17 and revenue of $73.3M, sell-side models may need to reflect sustained margin improvements from sourcing/throughput initiatives and segment demand resilience, but formal revisions depend on availability of consensus data .

Key Takeaways for Investors

Margin expansion appears durable, driven by sourcing efficiencies, mix optimization, and throughput improvements; adj. EBITDA margin at 11.4% in a seasonally slower quarter suggests upside to FY24 margin trajectory if execution continues .
Backlog normalization lowers lead times and may enhance margin protection; watch for bookings inflection as dealer inventories remain low and infrastructure/T&D projects ramp .
Strategic PM Group rollout in North America (including PM 70.5) and dealer expansion are medium-term growth/mix tailwinds; monitor announcements of new distribution partners .
Rental fleet investment (~$7M in H1) positions Rabern to capitalize on strong North Texas demand; expect rental contribution to remain supportive of consolidated margins and cash flow .
Balance sheet discipline continues: net leverage at 2.7x with expectations for working capital reduction and improved free cash conversion in 2024 .
Seasonality caution (Q3 Europe) suggests near-term volatility; management’s reiterated guide and cautious tone provide a buffer against over-optimism .
Near-term trading: Stock could respond to tangible updates on PM dealer agreements, backlog/order trends, and realized supply-chain savings; medium-term thesis hinges on executing Elevating Excellence targets into 2025 .

Manitex International, Inc. (MNTX)·Q1 2024 Earnings Summary