Manitowoc Company outlined its strategic transition toward higher-margin aftermarket services at the 17th Annual Midwest IDEAS Conference on Wednesday, highlighting a 95% stock return over the past year and a 62% year-to-date gain. The crane manufacturer reported that aftermarket revenue has more than doubled since 2016, rising from approximately $375 million to over $700 million, with a target to reach $1 billion by 2027.
The company’s aftermarket business now accounts for roughly half of total revenue, supported by initiatives such as a screen retrofit program for older machines, wire rope and rigging support, and modular anchorage beams for tower crane bracing. Management also highlighted the addition of tower crane amenities, including urine-to-mist conversion systems and hydraulic/manual slide pinning systems, alongside battery solutions to address grid limitations and high diesel costs.
Non-new machine sales have grown 84% since 2020, contributing to the company’s broader shift away from traditional equipment sales. Manitowoc’s global fleet now includes over 100,000 machines sold in the last two decades, with field technicians added organically to support service operations. Training for field technicians spans approximately three years, reflecting the specialized nature of the role.
The company’s financial position has strengthened under Ravenscroft’s leadership, which began in 2016 following the spin-off of its food services business. Manitowoc’s leverage ratio has declined from above 3.0x to below 3.0x, with a target to fall below 2.0x through the cycle. Cost reductions totaling $150 million since 2016 have further supported profitability. The current ratio stands at 2.11, while capital spending tied to the rental fleet is approximately $60 million.
Aftermarket gross margins are reported at around 35%, with two U.S. dealer acquisitions in 2021 costing $180 million and generating about $45 million in EBITDA—exceeding the original $30 million estimate. Management also noted that large crawler crane capacity is sold out through 2027 due to data center demand, with the 2028 build schedule yet to be finalized.
Global operations include nine manufacturing locations and 47 branches, with a target to expand to 50 branches. The company’s technology integration efforts include ServiceMax, owned by PTC, for tracking machines and managing bills of material, alongside testing of over-the-air software updates for cranes and remote-control tower crane operations in China.
