Sign in

You're signed outSign in or to get full access.

MI

Manitex International, Inc. (MNTX)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 2024 delivered modest top-line growth with strong margin execution: revenue $76.2M (+3.7% y/y; +3.9% q/q), gross margin 22.5% (+220 bps y/y), and adjusted EBITDA $8.1M (10.6% margin, +137 bps y/y) .
  • Management lowered full-year revenue guidance to $290–$300M (from $300–$310M) on slowing orders and dealer/customer caution tied to high rates/election, but reiterated adjusted EBITDA $30–$34M, highlighting operational execution and mix benefits .
  • Backlog fell to ~$116M (from ~$154M in Q1 and ~$170M at YE23) as manufacturing velocity improved and order intake slowed; net leverage improved to 2.5x with ~$33M cash and availability, supporting financial flexibility .
  • Strength in Rental (North Texas/Lubbock) and cost reductions offset macro headwinds; upcoming PM articulated crane dealer appointments in North America and infrastructure/power grid projects are medium-term growth levers .
  • Street consensus via S&P Global was unavailable for Q2, but the revenue guidance cut and maintained EBITDA guide suggest estimate mix/EBITDA margin resets rather than broad profit downgrades (S&P Global consensus unavailable via tool) .

What Went Well and What Went Wrong

What Went Well

  • Margin execution: gross margin expanded 220 bps to 22.5%; adjusted EBITDA margin rose to 10.6% (+137 bps y/y) on lower material costs, improved manufacturing throughput, and increased Rental contribution .
    Quote (CEO): “We produced further margin expansion… resulting in nearly 20% year-over-year growth in adjusted EBITDA.”
  • Rental strength: Rental revenue +15% y/y on robust demand and earlier fleet capex pull-forward; Lubbock performing well with high utilization .
  • Balance sheet progress: net debt decreased ~$2.4M q/q to $83.9M; net leverage improved to 2.5x; ~$33M liquidity supports growth initiatives .
    Quote (CFO): “We finished the second quarter with net debt of $83.9 million… net debt to TTM adjusted EBITDA was 2.5x… approximately $33 million of cash and availability” .

What Went Wrong

  • Orders/backlog: Backlog declined to ~$116M (vs. ~$154M in Q1 and ~$170M at YE23) as dealers/customers delayed orders amid high rates/macro/election uncertainty; some delivery pushouts occurred .
  • Revenue outlook: Full-year revenue guidance cut to $290–$300M (from $300–$310M) reflecting recent order trends .
  • Interest/FX drag: Other P&L items (FX losses; interest expense) continue to weigh; company clarified EBITDA reconciliation nets interest income vs. expense in recon tables .

Financial Results

Income Statement Summary

MetricQ2 2023Q1 2024Q2 2024
Net Revenues ($M)$73.5 $73.3 $76.2
Gross Profit ($M)$14.9 $16.9 $17.2
Gross Margin (%)20.3% 23.0% 22.5%
Operating Income ($M)$3.3 $4.9 $5.1
Net Income – Attrib. to Shareholders ($M)$0.4 $2.3 $1.5
Diluted EPS (GAAP)$0.02 $0.11 $0.07
Adjusted EBITDA ($M)$6.8 $8.4 $8.1
Adjusted EBITDA Margin (%)9.3% 11.4% 10.6%

Non-GAAP adjustments: Adjusted EPS +$0.04 vs GAAP in Q2 (stock comp $0.36M; FX $0.353M among items); adj. net income $2.2M vs GAAP $1.5M .

Segment Revenue

Segment ($M)Q1 2024Q2 2024
Lifting Equipment$66.0 $67.9
Rental$7.4 $8.4

Notes: Q2 y/y growth—Lifting +2.4% on increased manufacturing velocity; Rental +15% on strong demand and fleet investments .

Backlog and Balance Sheet KPIs

KPIQ4 2023Q1 2024Q2 2024
Backlog ($M)$170.3 $154.2 $115.8
Net Debt ($M)$85.5 $86.4 $83.9
Net Leverage (x TTM Adj. EBITDA)2.9x 2.7x 2.5x
Cash & Availability ($M)~$31 ~$30 ~$33

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($M)FY 2024$300–$310 $290–$300 Lowered
Adjusted EBITDA ($M)FY 2024$30–$34 $30–$34 Maintained
Adj. EBITDA Margin (midpoint)FY 202410.5%* 10.8%* Implied higher at midpoint

*Assumes midpoint of guidance range.

Rationale: Order slowdown and dealer/customer caution on high rates/election drove the revenue cut; cost actions and mix support maintaining EBITDA .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’23 and Q1’24)Current Period (Q2’24)Trend
Orders/BacklogYE23 backlog $170M (~9 months); backlog declining as throughput improves; dealers cautious on rates/inflation Backlog $116M; orders slowed; some delivery pushouts; caution tied to high rates/election Softening demand near term; improved delivery times
Supply Chain/CostsPricing/surcharges offset steel; new suppliers; seeing savings begin in Q1 Lower material costs flowing through; further sourcing gains expected Improving cost tailwind
Rental PerformanceLubbock ramp; rental demand robust; pulled forward 1H24 fleet capex Rental +15% y/y; North Texas strength; high utilization Strengthening
PM Articulated Cranes NA expansionPlan to add 2–3 dealers; PM 70.5 launch planned for NA In active talks with 5 dealers; expect 2–3 appointments in 2024; U.S.-based support and parts in place Execution progressing
Macro (rates/election)Dealer hesitancy from rates/inflation; Q1 guide maintained Rates/election cited for order caution; revenue guide cut Macro headwind persists
Infrastructure/Power gridAnticipated boost from infrastructure and T&D projects Confident in long-term drivers (infrastructure, grid, critical minerals) Medium-term positive

Management Commentary

  • Strategic focus: Elevating Excellence driving margin expansion and EBITDA growth despite mixed end-markets .
    CEO: “Our second quarter results highlight our continued progress… resulting in nearly 20% year-over-year growth in adjusted EBITDA.”
  • Guidance rationale: “As a result of the recent order trends, we are lowering our full-year 2024 revenue guidance to $290–$300M. However, we continue to expect our 2024 adjusted EBITDA to be $30–$34M.”
  • Capital allocation: “We remain committed to… reducing our debt levels and net leverage… approximately $33 million of cash and availability… ample financial flexibility” .
  • Operations/Costs: “Additional progress on our supply chain initiatives, resulting in lower materials costs, and further improved our manufacturing velocity” .

Q&A Highlights

  • Bookings and geography: Weakness centered in North America due to dealer carrying cost concerns; mining/minerals-exposed areas “completely unaffected”; utilities demand for MNTX products not weakening per management .
  • Rental dynamics: Company not seeing the rate/utilization softening cited by larger peers; North Texas markets are strong and more insulated; Rabern execution highlighted .
  • PM articulated-crane distribution: Active discussions with 5 NA dealers; expect 2–3 appointments in 2024; U.S. support hub in Georgetown with critical parts inventory to backstop dealers without materially changing the balance sheet .
  • EBITDA reconciliation detail: Interest income/expense netted in the EBITDA reconciliation tables in 2024; split on income statement—explains apparent mismatch .

Estimates Context

  • S&P Global/Capital IQ consensus for Q2 2024 EPS and revenue was unavailable via our tool for Manitex (mapping missing), so we cannot provide a beat/miss assessment or show estimate comparisons for the quarter (consensus unavailable) .
  • Given the revenue guidance cut to $290–$300M and maintained EBITDA guide of $30–$34M, Street models may need to lower FY revenue while holding FY EBITDA/margin relatively steady, implying mix and cost-driven resilience .

Key Takeaways for Investors

  • Margin story intact: Execution on supply-chain savings, manufacturing velocity, and Rental mix continues to expand margins despite macro softness; Q2 gross margin 22.5% and adj. EBITDA margin 10.6% .
  • Revenue headwind acknowledged: FY revenue guide cut on order softness and dealer caution tied to high rates/election; watch order intake/backlog trajectory into 2H .
  • Balance sheet improving: Net leverage at 2.5x with ~$33M liquidity provides runway for growth initiatives and cushions macro volatility .
  • Rental strength a buffer: North Texas/Lubbock momentum should continue to offset core equipment order cyclicality near term .
  • Structural growth levers: NA dealer expansion for PM articulated cranes and infrastructure/power grid demand should support medium-term volume/mix uplift .
  • Modeling implications: Expect revenue downticks in FY24 models vs prior, but limited EBITDA impact given cost actions/mix; monitor FX/interest headwinds and working-capital-driven cash conversion .
  • Catalysts: Dealer appointment announcements, order trends as rates evolve, and continued deleveraging/free cash flow improvement .

Additional Data and KPIs

Backlog Trend Detail

PeriodBacklog ($M)
Q2 2023$223.2
Q4 2023$170.3
Q1 2024$154.2
Q2 2024$115.8

Non-GAAP Reconciliations (select items)

  • Adjusted Net Income bridge (Q2 2024): GAAP NI attrib. to shareholders $1.49M + adjustments $0.713M = Adjusted NI $2.203M; adjusted diluted EPS $0.11 vs GAAP $0.07 .
  • Adjusted EBITDA (Q2 2024): EBITDA $7.39M + adjustments $0.713M = Adjusted EBITDA $8.10M (10.6% margin) .

Search notes: We read the full Q2 2024 8-K (including Exhibit 99.1 press release and 99.2 slides) and the full Q2 2024 earnings call transcript; we also reviewed Q1 2024 and Q4 2023 8-Ks and the Q1 2024 call. No other MNTX press releases were found within the Q2 window (Apr 1–Aug 6, 2024). – – – – –