Manitowoc Company outlined plans to reduce reliance on new crane sales by expanding its aftermarket and services business, targeting $1 billion in annual revenue from these segments within two years. Speaking at the Midwest IDEAS Conference on August 26, 2026, CEO Aaron Ravenscroft said the company expects aftermarket and non-new-machine sales to account for 50% of total revenue, up from roughly one-third currently.
The Milwaukee-based manufacturer has already made progress, with aftermarket revenue more than doubling to over $700 million since 2016, while sales excluding new machines rose 84% since 2020. Total annual revenue now exceeds $2 billion. Gross profit margins for the aftermarket segment stand at about 35%, supported by a global service network that includes over 200 field technicians added organically over the past five years.
Ravenscroft described the strategic shift as a move away from selling "big toys for big guys" toward addressing smaller, recurring customer needs. He characterized Manitowoc as a "lifting solutions business" that still manufactures cranes but now supports customers throughout the entire machine lifecycle. The company operates 47 global branches and plans to expand to 50 in the near term.
The crane sector's historical boom-and-bust cycles, including a decade-long downturn following the 2008-2009 financial crisis, have driven the push for more stable revenue streams. Manitowoc's backlog exceeds $1 billion, with large crawler crane capacity fully booked through 2027 due to demand from data center construction.
On cost management, the company reported $150 million in reductions since 2016 and a leverage ratio below 3.0x, down from above 3.0x previously. It targets bringing leverage below 2.0x over the cycle. Capital expenditures for the rental fleet totaled about $60 million, while two U.S. dealer acquisitions in 2021 for $180 million generated $45 million in EBITDA, exceeding the original $30 million estimate.
Ravenscroft acknowledged Manitowoc's position as an "agile follower" rather than a technology leader in hybrid and battery-powered cranes, focusing instead on meeting immediate customer demands.
