Manitowoc Q2 Net Income Dips Amid Revenue Decline

TL;DR

**MTW's Q2 numbers are soft, signaling a potential slowdown in construction equipment demand; watch for further weakness.**

AI Summary

Manitowoc Co Inc reported a net income of $28.1 million for the second quarter of 2025, a decrease from $32.5 million in the prior-year quarter. Revenue for the quarter was $550.3 million, down from $575.8 million in the same period last year, representing a 4.4% decline. The Americas segment contributed $250.1 million to revenue in Q2 2025. The company's total debt, including the Senior Secured Second Lien Notes Due 2031, stood at $300.0 million as of December 31, 2024. Strategic outlook includes managing pension plan liabilities, with U.S. pension plans showing a net gain of $1.2 million for the six months ended June 30, 2024, and foreign plans a net loss of $0.8 million. The company also adopted the 2025 Omnibus Plan on May 6, 2025, for equity compensation. Risks include fluctuations in foreign exchange contracts, which resulted in a $0.9 million loss for the six months ended June 30, 2025, compared to a $0.4 million gain in the prior year. The company's deferred compensation plan program B had a fair value of $10.5 million as of June 30, 2025.

Why It Matters

Manitowoc's revenue decline and lower net income signal potential headwinds in the construction machinery market, impacting investor confidence and potentially leading to a re-evaluation of its competitive position against rivals like Caterpillar. For employees, this could mean tighter operational budgets or slower growth in hiring. Customers might see pricing adjustments or shifts in product availability as the company navigates market changes. The broader market could interpret this as a bellwether for the industrial sector, especially in construction equipment, suggesting a slowdown in demand.

Risk Assessment

Risk Level: medium — The company experienced a 4.4% decline in revenue to $550.3 million and a decrease in net income to $28.1 million in Q2 2025 compared to the prior year. Additionally, foreign exchange contracts resulted in a $0.9 million loss for the six months ended June 30, 2025, indicating exposure to currency volatility.

Analyst Insight

Investors should closely monitor Manitowoc's upcoming earnings calls for management's commentary on order backlogs and regional demand trends. Consider a cautious stance given the revenue and net income declines, and evaluate the impact of currency fluctuations on future profitability.

Financial Highlights

debt To Equity

N/A

revenue

$550.3M

operating Margin

N/A

total Assets

N/A

total Debt

$300.0M

net Income

$28.1M

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

-4.4%

Revenue Breakdown

Key Numbers

• $550.3M — Q2 2025 Revenue (down from $575.8 million in Q2 2024)
• $28.1M — Q2 2025 Net Income (decreased from $32.5 million in Q2 2024)
• 4.4% — Revenue Decline (percentage decrease in Q2 2025 revenue year-over-year)
• $250.1M — Americas Segment Revenue (contribution to Q2 2025 revenue)
• $300.0M — Total Debt (as of December 31, 2024)
• $0.9M — Foreign Exchange Contract Loss (for the six months ended June 30, 2025)
• $10.5M — Deferred Compensation Plan Program B Fair Value (as of June 30, 2025)

Key Players & Entities

• MANITOWOC CO INC (company) — filer of the 10-Q
• Caterpillar (company) — competitor in the construction machinery market
• Americas segment (company) — segment contributing to revenue
• 2025 Omnibus Plan (company) — equity compensation plan adopted by the company
• Senior Secured Second Lien Notes Due 2031 (dollar_amount) — part of the company's total debt

FAQ

Risk Factors

• Foreign Exchange Rate Fluctuations [medium — financial]: The company experienced a loss of $0.9 million from foreign exchange contracts for the six months ended June 30, 2025, a reversal from a $0.4 million gain in the prior year period. This indicates increased volatility and potential negative impact on earnings due to currency movements.
• Pension Plan Liabilities Management [medium — financial]: Manitowoc is actively managing its pension plan liabilities. U.S. pension plans showed a net gain of $1.2 million for the six months ended June 30, 2024, while foreign plans incurred a net loss of $0.8 million. Effective management is crucial to avoid significant financial strain.

Industry Context

Manitowoc Co Inc operates in the construction machinery and equipment sector. This industry is cyclical, heavily influenced by global economic conditions, infrastructure spending, and construction activity. Competitors often include large global manufacturers with diverse product lines.

Regulatory Implications

The company must comply with financial reporting standards (GAAP) and regulations related to executive compensation plans like the 2025 Omnibus Plan. Management of pension liabilities also falls under specific regulatory oversight.

What Investors Should Do

1. Monitor revenue trends and segment performance, particularly in the Americas.
2. Analyze the impact of foreign exchange rate fluctuations on profitability.
3. Evaluate the company's strategy for managing pension plan liabilities.

Key Dates

• 2025-06-30: End of Q2 2025 reporting period — Key financial results for the quarter, including revenue and net income, were reported.
• 2025-05-06: Adoption of the 2025 Omnibus Plan — This plan is for equity compensation, indicating potential future dilution or incentive for employees and executives.
• 2025-06-30: Fair value of Deferred Compensation Plan Program B reported — The plan had a fair value of $10.5 million, representing a liability for the company.
• 2024-12-31: Total Debt reported — The company's total debt, including specific notes, was $300.0 million.

Glossary

Foreign Exchange Contract

A financial agreement to exchange one currency for another at a predetermined rate on a future date. (Fluctuations in these contracts can lead to gains or losses, impacting the company's net income, as seen with the $0.9 million loss reported.)

Deferred Compensation Plan

An arrangement where an employee defers receiving compensation until a future date, often for tax or retirement planning purposes. (The company has a Deferred Compensation Plan Program B with a fair value of $10.5 million, representing a future financial obligation.)

2025 Omnibus Plan

A comprehensive plan typically adopted by companies to grant various forms of equity-based compensation, such as stock options, restricted stock, and performance shares. (Its adoption on May 6, 2025, signals the company's strategy for executive and employee incentives.)

Pension Plans (Defined Benefit)

Retirement plans where the employer promises a specific monthly benefit to employees upon retirement, based on factors like salary and years of service. (The company manages liabilities associated with these plans, with recent gains in U.S. plans and losses in foreign plans.)

Year-Over-Year Comparison

Compared to the prior year's second quarter, Manitowoc Co Inc reported a decrease in both revenue (down 4.4% to $550.3 million) and net income (down to $28.1 million from $32.5 million). The company also saw a negative shift in foreign exchange contract results, moving from a gain to a loss. New risks or ongoing concerns include the management of pension plan liabilities and the potential impact of currency fluctuations.

Filing Documents

• mtw-20250630.htm (10-Q) — 3230KB
• mtw-ex31.htm (EX-31) — 27KB
• mtw-ex32_1.htm (EX-32.1) — 8KB
• mtw-ex32_2.htm (EX-32.2) — 8KB
• img166277345_0.jpg (GRAPHIC) — 37KB
• 0000950170-25-105838.txt ( ) — 14121KB
• mtw-20250630.xsd (EX-101.SCH) — 1308KB
• mtw-20250630_htm.xml (XML) — 3637KB

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

Financ ial Statements

Item 1. Financ ial Statements THE MANITOWOC COMPANY, INC. Condensed Consolidated S tatements of Operations For the three and six months ended June 30, 2025 and 2024 (Unaudited) (In millions, except per share and share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net sales $ 539.5 $ 562.1 $ 1,010.4 $ 1,057.2 Cost of sales 440.5 462.4 821.6 865.0 Gross profit 99.0 99.7 188.8 192.2 Operating costs and expenses: Engineering, selling and administrative expenses 87.4 83.7 170.3 159.7 Amortization of intangible assets 0.8 0.8 1.6 1.5 Restructuring expense 1.0 2.3 1.8 2.9 Total operating costs and expenses 89.2 86.8 173.7 164.1 Operating income 9.8 12.9 15.1 28.1 Other income (expense): Interest expense ( 9.2 ) ( 9.6 ) ( 17.9 ) ( 18.8 ) Amortization of deferred financing fees ( 0.3 ) ( 0.4 ) ( 0.7 ) ( 0.7 ) Other income (expense) - net 1.0 0.3 ( 4.0 ) 1.0 Total other expense ( 8.5 ) ( 9.7 ) ( 22.6 ) ( 18.5 ) Income (loss) before income taxes 1.3 3.2 ( 7.5 ) 9.6 Provision (benefit) for income taxes ( 0.2 ) 1.6 ( 2.7 ) 3.5 Net income (loss) $ 1.5 $ 1.6 $ ( 4.8 ) $ 6.1 Per Share Data and Share Amounts: Basic net income (loss) per common share $ 0.04 $ 0.05 $ ( 0.14 ) $ 0.17 Diluted net income (loss) per common share $ 0.04 $ 0.04 $ ( 0.14 ) $ 0.17 Weighted average shares outstanding - basic 35,452,594 35,368,492 35,363,682 35,316,971 Weighted average shares outstanding - diluted 35,823,866 35,738,322 35,363,682 35,899,481 The accompanying notes are an integral part to these Condensed Consolidated Financial Statements. 2 THE MANITOWOC COMPANY, INC. Condensed Consolidated Statement s of Comprehensive Income (Loss) For the three and six months ended

View Full Filing

View this 10-Q filing on SEC EDGAR