Manitowoc Faces Short-Term Headwinds, Long-Term Optimism Persists
The Manitowoc Company (NYSE: MTW) faces headwinds in the short term due to softness in the Americas and continued European challenges, which may temper overall FY25 revenue growth. Despite doubling orders for new tower cranes, uncertainty persists. However, the company's long-term outlook remains positive, with expected demand recovery in FY26 and significant Middle East infrastructure investments.
The Americas region experienced high single-digit growth during the quarter but faced a drag in demand and order intake due to tariff uncertainties. Orders for new tower cranes doubled, which should slightly offset these headwinds. However, overall uncertainty remains in the short term.
The company's total backlog declined by about 12% year on year to $729 million, as most of the Q2 revenue was sustained by converting backlog. Volume deleverage and increased SG&A expenses are expected to continue margin pressure in the coming quarters. Despite an easier comparison, MTW reported another quarter with a single-digit decline across its topline.
The Manitowoc Company's valuation appears overvalued due to a drop in earnings estimates. While the long-term outlook is favorable, with expected demand recovery and Middle East infrastructure investments, short-term challenges persist. The company has not announced leadership changes, with Terry D. Growcock currently serving as Chairman of the Board and Director. MTW stock has been up in the high single digits since the last neutral article, underperforming the broader market.
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