Manitowoc Company Inc (NYSE:MTW) closed its 2025 fiscal year with a fourth-quarter performance that surpassed revenue expectations but delivered a slight earnings miss, as the crane manufacturer navigates a mixed global demand environment. The company’s initial 2026 guidance, however, appears to set a cautious tone relative to current analyst forecasts.
Quarterly Results vs. Estimates
The company reported fourth-quarter net sales of $677.1 million, a 13.6% increase year-over-year. This figure came in above the analyst consensus estimate of approximately $643.1 million. The top-line strength was supported by a significant surge in orders, which jumped 55.8% to $803.4 million, boosting the ending backlog to $793.5 million.
On the profitability front, Manitowoc reported adjusted earnings per share (EPS) of $0.26. This result narrowly missed the consensus estimate of $0.27 per share. The company’s adjusted EBITDA for the quarter was $39.6 million, marking a 13.5% increase from the prior year.
Key quarterly highlights include:
- Revenue: $677.1M reported vs. $643.1M estimated (Beat)
- Adjusted EPS: $0.26 reported vs. $0.27 estimated (Slight Miss)
- Orders: $803.4M, a 55.8% year-over-year increase
- Backlog: $793.5M, up 22% from the end of 2024
Full-Year 2025 and Strategic Execution
For the full year 2025, Manitowoc’s net sales increased 2.9% to $2.24 billion. Adjusted net income was $11.6 million, or $0.32 per diluted share, a decrease from the prior year. President and CEO Aaron Ravenscroft described it as a "challenging year" but highlighted a strong finish, with full-year adjusted EBITDA of $122 million meeting expectations.
A central focus for the company remains its "CRANES+50" strategy, aimed at growing its higher-margin parts and service business. Non-new machine sales, a key metric for this initiative, reached $690.5 million for the year, a 9.8% increase.
2026 Guidance and Market Outlook
Management provided its initial financial guidance for the full year 2026, projecting net sales between $2.25 billion and $2.35 billion. This range has a midpoint of $2.3 billion, which sits slightly below the current analyst sales consensus estimate of $2.32 billion for the year.
The company expects adjusted EBITDA in the range of $125 million to $150 million and forecasts adjusted diluted EPS between $0.45 and $0.90. The wide EPS range reflects the company's caution regarding market conditions, particularly in the United States, where it anticipates "more of the same conditions." Conversely, management expressed growing optimism for the European market.
Other elements of the 2026 outlook include:
- Capital expenditures of $45-$50 million.
- Free cash flow projected between $40 million and $65 million.
- A recently implemented restructuring plan expected to deliver $10 million in annualized savings.
Market Reaction and Price Action
Following the earnings release, the market reaction has been muted to slightly positive in the near term. The stock's performance over the last month shows an increase of approximately 9.7%. This suggests investors may be balancing the slight earnings miss and cautious 2026 sales guidance against the strong order growth, increased backlog, and the company's ongoing execution of its strategic shift toward services.
Conclusion
Manitowoc ended 2025 with robust order intake, providing visibility into 2026. While the fourth-quarter EPS fell just short of expectations, the revenue beat and substantial backlog growth are positive indicators. The company’s forward guidance implies a year of steady, if not spectacular, growth as it focuses on operational efficiency through restructuring and continues to expand its aftermarket services globally. The market’s steady response indicates a wait-and-see approach as investors assess the company's ability to convert its strong backlog into profits amid the cyclical crane market.
For a detailed look at Manitowoc’s historical earnings and future analyst estimates, visit the earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
