Manitowoc(MTW) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For the full year 2024, the company reported sales of $2.2 billion and adjusted EBITDA of$ 128 million, with free cash flow of $100 million generated during the fourth quarter [10][30][34] - The adjusted EBITDA margin decreased by 200 basis points to 5.9%, primarily due to product mix and under-absorption of fixed costs [31][32] - The company achieved a GAAP diluted income per share of$ 1.59 and an adjusted diluted income per share of $0.41, reflecting a penny increase from the prior year [29][34] Business Line Data and Key Metrics Changes - Non-new machine sales reached a record high of$ 629 million, representing a 67% increase since 2020 [10][30][44] - The company grew its field service technician count by 7% to over 467 team members [9][44] - Adjusted EBITDA for the year was $128 million, a decrease of 27% year over year [31] Market Data and Key Metrics Changes - Orders in the fourth quarter totaled$ 516 million, an increase of 8% year over year, with a backlog of $650 million, down 29% from the previous year [16][27] - The Americas market showed signs of recovery post-election, while Europe faced a complicated situation with modest growth in certain regions [16][18] - Orders in the Middle East increased over 44% year over year, driven by ongoing projects related to major upcoming events [20][21] Company Strategy and Development Direction - The company continues to execute its Cranes Plus 50 strategy, focusing on growing the less cyclical, higher-margin aftermarket business [44][46] - New product introductions are aimed at staying competitive against Chinese exporters, particularly in the Middle East [42][46] - The company plans to expand service locations in the Americas and has recently acquired crane assets in several states [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, with expectations of slight improvements in the US and European markets, while Asia remains uncertain [37][41] - The company anticipates a challenging first quarter of 2025 due to reduced build schedules in 2024 [39][40] - Overall sentiment in the US market is improving, but uncertainties regarding interest rates and tariffs persist [37] Other Important Information - The company achieved a record low recordable incident rate of 1.19%, marking 2024 as one of the safest years in its history [11][12] - Environmental initiatives led to a 6% reduction in greenhouse gas intensity, resulting in approximately$ 100,000 in savings [14] Q&A Session Summary Question: Can you discuss regional sales expectations for 2025? - Management indicated that expectations are for marginal improvements in Europe and the US, while Asia remains uncertain, particularly in South Korea [54] Question: How have used crane values trended recently? - Management noted that used crane values have remained stable, with no significant changes observed [56][57]