Executive Summary

Q4 2024 net sales were $596.0M; GAAP diluted EPS was $1.59, driven by a $55.1M non-cash tax valuation allowance release, while adjusted EPS was $0.10 .
Adjusted EBITDA was $34.9M (5.9% margin), relatively flat YoY; orders rose 8.4% YoY to $515.6M and backlog ended at $650.2M .
Operating cash flow and free cash flow were strong at $110.8M and $99.5M, respectively, supported by inventory reduction and working capital actions .
FY 2025 guidance introduced: net sales $2.175B–$2.275B, adjusted EBITDA $120M–$145M, adjusted EPS $0.15–$0.85; management highlighted an “extremely light” Q1 2025 due to prior build schedule reductions .

What Went Well and What Went Wrong

What Went Well

Aftermarket strength: non-new machine sales hit a record $629.1M for FY 2024; “Comparing to 2020… non-new machine sales have increased by over 67%,” underscoring CRANES+50 execution .
Orders improved: Q4 orders increased 8.4% YoY to $515.6M, with notable momentum in European tower crane orders for the second quarter in a row and >44% YoY growth in Middle East Q4 orders .
Liquidity and free cash flow: Q4 free cash flow of $99.5M and total liquidity of $321M, with net leverage at ~2.66x below the 3x target after inventory reduction actions .

Management quote: “Our 2024 results highlight the strength of our aftermarket business… non-new machine sales have increased by over 67%” – Aaron Ravenscroft, CEO .

What Went Wrong

Margin compression and mix: Q4 adjusted EBITDA margin 5.9% (down ~20 bps YoY); FY 2024 adjusted EBITDA fell to $128.4M, down ~27% YoY due to product mix and under-absorption amid reduced build schedules and tower crane weakness .
Europe towers headwind: FY 2024 towers were a ~$32M adjusted EBITDA headwind; Europe remains “complicated,” with France weak and recovery expected to be gradual .
Asia softness and cancellations: No signs of construction recovery in China; South Korea experienced ~$8M of cancellations/hot deals drying up amid political upheaval .

Financial Results

Quarterly Performance vs Prior Periods

Metric	Q2 2024	Q3 2024	Q4 2024
Net Sales ($USD Millions)	$562.1	$524.8	$596.0
Orders ($USD Millions)	$428.4	$424.7	$515.6
Backlog ($USD Millions)	$836.3	$742.1	$650.2
Adjusted EBITDA ($USD Millions)	$36.0	$26.2	$34.9
Adjusted EBITDA Margin (%)	6.4%	5.0%	5.9%
GAAP Diluted EPS ($)	$0.04	$(0.20)	$1.59
Adjusted EPS ($)	$0.25	$(0.08)	$0.10
Net Cash from Operating Activities ($USD Millions)	$11.0	$(43.6)	$110.8
Free Cash Flows ($USD Millions)	$(1.9)	$(52.9)	$99.5

Notes: Q4 GAAP EPS reflects a $55.1M tax valuation allowance release; adjusted EPS removes this benefit .

FY 2024 Summary

Metric	FY 2024
Net Sales ($USD Millions)	$2,178.0
Non-new Machine Sales ($USD Millions)	$629.1
Adjusted EBITDA ($USD Millions)	$128.4
Adjusted EBITDA Margin (%)	5.9%
GAAP Diluted EPS ($)	$1.56
Adjusted EPS ($)	$0.41

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($USD Billions)	FY 2025	n/a	$2.175–$2.275	New
Adjusted EBITDA ($USD Millions)	FY 2025	n/a	$120–$145	New
Depreciation & Amortization ($USD Millions)	FY 2025	n/a	$60–$64	New
Interest Expense ($USD Millions)	FY 2025	n/a	$38–$40	New
Provision for Income Taxes ($USD Millions)	FY 2025	n/a	$11–$15	New
Adjusted Diluted EPS ($)	FY 2025	n/a	$0.15–$0.85	New
Capital Expenditures ($USD Millions)	FY 2025	n/a	$47 (≈$23 rental fleet)	New
Free Cash Flows ($USD Millions)	FY 2025	n/a	$55–$85, excl. EPA payment	New
Adjusted EBITDA ($USD Millions)	FY 2024	$125–$140 (updated Aug-2024)	Actual $128.4	Within prior range

Additional quarterly cadence note: Q1 2025 expected to be “extremely light,” roughly half a typical Q1 adjusted EBITDA contribution due to build schedule reductions .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Aftermarket/CRANES+50	Non-new machine sales growth; updated FY24 guide; focus on inventory and cash	TTM non-new machine sales ~$618M; MGX kaizen; UK service expansion	FY24 non-new machine sales $629.1M; expanded distribution rights in Carolinas/Georgia via MGX	Improving execution
European Tower Cranes	Ongoing headwind, sluggish orders	Orders up YoY for second quarter; ~$32M FY headwind to adj. EBITDA; bottoming cycle	Orders modestly improved; recovery expected gradual; France weak, Germany/Italy/UK better	Gradual bottoming
Americas Demand	Mobile customers cautious (rates, election)	Q3 missed book-and-ship by >$40M; dealers cautious; aging fleets	Sentiment improved post-election; utilization/rental rates stable	Improving sentiment
Middle East	Strong activity	Strong; Chinese competition intense; NFT advantage	Q4 orders +44% YoY; large events driving demand (Expo 2030, World Cup 2034)	Strong
Asia (China/Korea)	Weak; competition, discounting	China stagnation; South Korea orders -50% YTD	No recovery signs in China; ~$8M cancellations in Korea	Weak
Cost/Margins	Mix and under-absorption pressures; guide lowered	Product mix, reduced build schedules pressured margins	Adjusted EBITDA margin 5.9%; SG&A included $1M EPA charge	Stabilizing at lower level
Liquidity/Leverage	Focus on FCF; actions on build schedules	Debt refinanced; liquidity $222M; net leverage 3.4x	Liquidity $321M; net leverage ~2.66x; strong Q4 FCF	Improved balance sheet
Technology/IoT	—	Lean improvements, kitting, electrical test device; kaizen at MGX	EV self-erecting tower crane; IoT tools for TPM in Portugal	Ongoing initiatives

Management Commentary

“Fourth quarter results were in line with our expectations… our aftermarket business generated a record $629.1 million of revenue.” – Aaron H. Ravenscroft, CEO .
“Orders were $516 million… European tower crane orders were up year-over-year for the second quarter in a row… adjusted EBITDA margin was 5.9%.” – Brian Regan, CFO .
“We generated $100 million of free cash flow during the fourth quarter and ended the year with $321 million in liquidity.” – CEO .
“The midpoint of our 2025 guidance reflects a marginally better year… we expect Q1 2025 to be extremely light.” – CFO .
Strategic footprint expansion: MGX acquisition of certain Ring Power crane assets expands direct-to-customer coverage in GA/NC/SC .

Q&A Highlights

Regional outlook embedded in guidance: Europe slightly better (tower cranes), U.S. slightly better; Asia uncertain (South Korea) .
Used crane values stable: pricing depends on age/model; direct deals preferred over auction dynamics .
Quarterly cadence: Q1 2025 expected to contribute ~half of historical Q1 adjusted EBITDA due to build schedule reductions .

Estimates Context

S&P Global consensus EPS and revenue estimates for Q4 2024 were unavailable at time of analysis due to SPGI rate limit. We will update beat/miss analysis once accessible.

Metric	Q4 2024 Actual	Q4 2024 S&P Global Consensus	Beat/Miss
Revenue ($USD Millions)	$596.0	Unavailable	n/a
Primary EPS ($)	$1.59 GAAP; $0.10 Adjusted	Unavailable	n/a

Note: Consensus values typically sourced from S&P Global; unavailable due to API limit at time of request.

Key Takeaways for Investors

Free cash flow inflection: Q4 operating cash flow and FCF materially improved, de-risking the balance sheet and lowering net leverage below the 3x target, a positive near-term catalyst for equity and credit perception .
Quality of EPS: Q4 GAAP EPS benefitted from a one-time $55.1M tax allowance release; adjusted EPS of $0.10 better reflects underlying performance, important for modeling and valuation multiples .
Aftermarket resilience: Record FY non-new machine revenue underscores a structural mix shift per CRANES+50, supporting margin stability and cyclicality reduction through 2025 .
Order momentum and regional mix: Post-election improvement in the Americas and continued strength in the Middle East offset lingering European tower crane softness; watch for incremental Europe recovery into 2H 2025 .
2025 setup: Guidance implies modest improvement with a soft Q1; near-term trading could be sensitive to quarterly cadence but medium-term thesis hinges on aftermarket expansion, inventory normalization, and gradual European recovery .
Risk factors: Product mix and under-absorption could cap margin upside until volumes normalize; competitive intensity from Chinese manufacturers in emerging markets remains a watchpoint .

MANITOWOC CO INC (MTW)·Q4 2024 Earnings Summary