Manitex International, Inc. (MNTX)·Q3 2024 Earnings Summary

Executive Summary

• Q3 2024 net revenue fell 6.7% year over year to $66.5M, while gross margin expanded 83 bps to 24.1%; GAAP diluted EPS was $0.02 and adjusted diluted EPS was $0.09 .
• Lifting Equipment revenue declined 10.1% YoY to $57.3M, but Rental Equipment grew 22.0% YoY to $9.3M, underpinning margin resilience and mix improvement .
• Management withdrew financial guidance and did not host a Q3 call due to the pending acquisition by Tadano; merger consideration is $5.80 per share, a ~52% premium to the prior close at announcement, with closing expected early Q1 2025 pending approvals .
• Backlog compressed to $97M (from $116M in Q2 and $154M in Q1), reflecting cautious order intake amid high rates and macro uncertainty; transaction costs of ~$1.0M related to Tadano impacted operating income in Q3 .

What Went Well and What Went Wrong

What Went Well

• Margin expansion despite revenue decline: gross margin rose to 24.1% (up 83 bps YoY) supported by lower material costs from supply chain initiatives and higher rental contribution .
• Rental segment strength: revenue +22% YoY to $9.3M on robust end-market demand and fleet investments .
• Leverage and liquidity stable: net leverage 2.5x (vs. 2.9x at FY23), net debt ~$83.7M, with continued deleveraging trajectory noted across 2024 .
  “During the second quarter, we made additional progress on our supply chain initiatives, resulting in lower materials costs, and further improved our manufacturing velocity.” — CEO Michael Coffey .

What Went Wrong

• Topline decline: net revenue down 6.7% YoY to $66.5M due to lower aerial work platform and chassis sales, weighing on Lifting segment results .
• Operating income down: Q3 operating income was $4.4M vs. $5.2M last year, reflecting ~$1.0M in transaction costs tied to the Tadano deal; operating margin fell to 6.7% vs. 7.3% YoY .
• Backlog erosion: backlog fell to $97M (from $116M in Q2 and $154M in Q1), consistent with management commentary on slower orders amid higher rates and macro uncertainty .

Financial Results

Segment breakdown

KPIs

Notes: Q3 operating results include ~$0.985M of transaction costs, impacting operating income and margin .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Our second quarter results highlight our continued progress under our Elevating Excellence strategy… resulting in nearly 20% year-over-year growth in adjusted EBITDA.” — CEO Michael Coffey .
• “Order intake has slowed in the year, likely due to increased interest rates… We remain confident in the long-term drivers of our business.” — CEO Michael Coffey (Q2 call) .
• “We remain committed to our disciplined capital allocation strategy… net leverage… 2.5x, down from 2.9x at the end of 2023.” — CFO Joseph Doolan .
• “The acquisition by Tadano will help mitigate cyclical risk, while providing the Company with scale and broader international scope.” — CEO Michael Coffey (merger release) .

Q&A Highlights

• Bookings/backlog health: Management expects book-to-bill to recover as infrastructure and power grid projects ramp; healthy backlog range 4–8 months as supply chain normalization shortens lead times .
• Rental resilience: Despite industry commentary on rate/utilization softness, Manitex’s North Texas rental markets remained robust, aided by fleet investments and local market strength (Rabern Rentals) .
• PM articulated cranes distribution: Active talks with five dealers; expectation to announce 2–3 appointments; U.S.-based support structure and fast-moving parts inventory established to backstop service .
• Adjusted EBITDA reconciliation clarity: Interest income is netted in reconciliation tables, explaining differences vs. income statement presentation .

Estimates Context

• S&P Global consensus estimates were unavailable for MNTX at the time of query; therefore, a formal beat/miss analysis versus Wall Street consensus cannot be provided. If/when CIQ mapping is updated, we will incorporate EPS, revenue, and EBITDA consensus for Q3 2024 and FY 2024 to assess variances.

Key Takeaways for Investors

• Q3 2024 showed resilient margin performance (gross margin 24.1%, adjusted EBITDA margin 12.8%) despite a 6.7% revenue decline, driven by supply chain cost actions and rental mix — a supportive signal on operating discipline .
• Rental growth (+22% YoY) is a bright spot and continues to offset softness in aerial work platforms and chassis sales; this mix shift underpins margin durability .
• Backlog compression to $97M highlights near-term demand caution tied to high rates; monitoring order trends is key to near-term revenue trajectory .
• Non-GAAP adjustments (including ~$1.0M deal costs) affected operating income; investors should focus on normalized operating metrics and adjusted EBITDA for underlying performance .
• Strategic overhang: With guidance withdrawn and no Q3 call, the merger with Tadano is the dominant stock narrative; $5.80 per-share cash consideration and expected Q1 2025 close shift near-term trading to deal-spread dynamics and approval risk .
• Deleveraging progress remains intact (net leverage 2.5x), positioning the business well into a combined entity with potential for scale, technology access, and working capital benefits post-close, per management .
• Absent consensus estimates, updates to Street models likely reflect revenue softness and margin resilience; once S&P Global data is available, we’ll reassess beat/miss and revisions trajectory.

Additional Documents Read

• Q3 2024 8-K (Item 2.02) with Exhibit 99.1 press release and financials .
• Q2 2024 8-K and press release; earnings call transcript; slide deck – –.
• Q1 2024 8-K and press release; earnings call transcript; slide deck – –.
• Merger 8-K and press release (Sep 12, 2024): Tadano acquisition details .

Note: The company stated no Q3 earnings call and withdrew guidance due to the pending Tadano acquisition .