Manitowoc (NYSE:MTW) raised its 2026 earnings outlook after third-quarter sales rose 11% and orders climbed 38%, as demand in the Americas and for European tower cranes helped offset weakness in the European mobile crane market.
The crane manufacturer reported net sales of $614 million, up approximately $60 million from a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 39% to $47 million, while the adjusted EBITDA margin increased to 7.7% from 6.2%.
Orders totaled $676 million, with the Americas providing the largest contribution to growth, Chief Financial Officer Brian Regan said on the earnings call. Backlog ended the quarter above $1.1 billion, up $444 million from a year earlier. The company expects roughly half of that backlog to ship in the fourth quarter.
Higher Outlook, With Cash Flow Pressure
Manitowoc raised its full-year adjusted EBITDA guidance to a range of $160 million to $175 million and its adjusted diluted earnings per share forecast to 90 cents to $1.25. The company did not provide its prior ranges on the call.
Regan said Manitowoc would need to generate approximately $90 million in fourth-quarter free cash flow to reach the midpoint of its full-year guidance. While the company has a path to that figure, he said, strong demand is requiring investment in inventory to meet first-quarter customer commitments, putting pressure on the target.
The company used $33 million in operating cash during the third quarter and reported a $42 million free cash outflow. It ended the period with $65 million in cash and $261 million in total liquidity. Net leverage was 2.7 times, below the company’s target of 3 times.
President and Chief Executive Officer Aaron Ravenscroft said Manitowoc expects net leverage to approach 2 times by year-end. Regan added that the company is exploring acquisition opportunities focused on the aftermarket and plans to continue paying down debt while it evaluates options.
Orders Rise, Though Europe Remains Mixed
Americas order rates increased 60% year over year, as dealers replenished lean inventories and customers adjusted to tariffs, Ravenscroft said. He said North American 2027 production schedules for large crawler and large rough-terrain cranes are sold out, with significant customer interest in 2028 production slots.
October orders were approximately $250 million, Ravenscroft said, adding that December volatility makes the pace for the rest of the year difficult to predict. Regan said the company’s revenue range continues to account for risks related to the Strait of Hormuz.
In Europe, tower crane orders rose 20% from a year earlier, while mobile crane orders declined significantly. Ravenscroft described the region’s quarter as “one step forward, one step back.” He said he was cautiously optimistic about Europe overall but expected the French market to remain fragile.
Middle East orders rose 72% year over year, Ravenscroft said. Although shipping routes have opened for crane deliveries, he cautioned that risks from the conflict surrounding the Strait of Hormuz remain.
Aftermarket Growth and Margin Headwinds
Non-new machine sales were $174 million in the quarter, relatively flat year over year as lower used-crane shipments offset other activity. On a trailing 12-month basis, those sales rose 5% to $703 million.
Ravenscroft said used-crane sales fell $10 million year over year in the quarter, a decline he characterized as representing only a couple of machines. Parts and service grew, he said, contributing to a more profitable quarter for the business because those activities carry better margins.
Manitowoc is pursuing growth in non-new machine sales through its CRANES + 50 strategy, including new service centers, technician training, additional lifting products and technology investments. Ravenscroft said new locations in Brisbane and Melbourne, Australia, and Monterrey, Mexico, are operational.
He said the company expects non-new machine sales to have grown by approximately $100 million by the end of 2026 compared with 2023, contributing roughly $25 million in adjusted EBITDA after selling, general and administrative expenses. However, tariffs, inflation and the downturn in European tower cranes have obscured that contribution in consolidated results, he said.
Regan said third-quarter adjusted EBITDA included approximately $4 million in International Emergency Economic Powers Act refund benefits that offset tariff costs. He said tariffs remain an overall headwind, though Manitowoc is making progress in offsetting increased costs.
About Manitowoc (NYSE:MTW)
The Manitowoc Company, Inc (NYSE: MTW) is a global manufacturer of cranes and lifting equipment. Its product portfolio includes crawler cranes, tower cranes, mobile telescopic cranes, boom trucks and industrial cranes used in construction, infrastructure, energy and other heavy-lifting applications.
The company markets its equipment under brands including Manitowoc, Potain, Grove, National Crane and Shuttlelift. In addition to new equipment, Manitowoc provides replacement parts, technical support, maintenance services, operator training and other aftermarket solutions intended to support customers throughout the life of their cranes.
Founded in 1902, Manitowoc has historical roots in shipbuilding and marine engineering and later expanded into crane manufacturing and other industrial businesses.
