This article first appeared on GuruFocus .
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Orders:$709 million in Q2 2026, up 56% year-over-year.
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Backlog:$1.05 billion at quarter end, up $110 million from last quarter and up $321 million year-over-year.
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Net Sales:$595 million in Q2 2026, up 10% year-over-year.
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Non-New Machine Sales:$172 million in the quarter, up 6% year-over-year; trailing 12-month sales reached a record $706 million.
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Adjusted EBITDA:$49 million in Q2 2026, up from $26 million in the prior year; margin expanded 330 basis points to over 8%.
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SG&A Expenses:$90 million in the quarter; adjusted SG&A was $88 million, or 15% of net sales, 130 basis points lower year-over-year.
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Net Working Capital:$567 million at quarter end, improving 280 basis points year-over-year as a percent of trailing 12-month sales.
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Cash Flow from Operating Activities:$8 million in the quarter.
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Capital Expenditures:$14 million in the quarter, including $9 million for a rental fleet.
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Free Cash Flow:A use of $6 million in the quarter, an improvement of $68 million from the prior year.
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Cash and Liquidity:Ended the quarter with $96 million in cash and total liquidity of $304 million.
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Net Leverage Ratio:Approximately 2.6 times, below the target of 3 times.
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Full Year 2026 Guidance:Net sales of $2.3 billion to $2.4 billion; adjusted EBITDA of $150 million to $170 million; adjusted diluted EPS of $0.80 to $1.20; free cash flow of $50 million to $70 million.
Release Date: August 07, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sales increased 10% and adjusted EBITDA surged over 85% year-over-year, marking one of the strongest quarters in recent years.
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Orders reached $709 million, a 56% increase from the prior year, with backlog expanding to $1.05 billion, up $321 million year-over-year.
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Non-new machine sales hit a record $706 million on a trailing 12-month basis, driven by strong aftermarket performance and strategic initiatives like the Peru service contract.
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Net leverage improved to 2.6 times, below the target of 3 times, enhancing financial flexibility for potential share repurchases and acquisitions.
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The company raised full-year guidance, reflecting strengthening crane market conditions and a net benefit from tariff refunds.
Negative Points
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The conflict in Iran is creating inflationary pressures in Europe and poses risks to economic activity and customer investment decisions in the Middle East.
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Tower crane orders declined modestly year-over-year due to the transition to new EN standards, impacting self-erecting crane demand.
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Free cash flow was negative at $6 million in the quarter, though improved by $68 million year-over-year.
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The company faces ongoing tariff costs, with a $3 million year-over-year headwind in Q2 and potential future impacts from the Iran conflict.
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July and August are typically slower months due to seasonality and European holidays, which could temper near-term order momentum.
Q & A Highlights
Q: Can you disaggregate the 56% year-over-year growth in orders by region and how much reflected dealer stocking or specific projects? A: Aaron Ravenscroft, President and CEO, noted that while specific regional percentages were not shared, there was strong demand across all regions. In the US, dealers were replenishing inventory, though dealer inventory levels remain on the low side, indicating continued strength in underlying demand.
Q: How should we think about the cadence of revenue and EBITDA through the second half, and what incremental margins can we expect into 2027? A: Aaron Ravenscroft, President and CEO, explained that normal seasonality will apply, with Q3 being lighter due to the European holiday period. He added that an additional $4 million of incremental tariff benefit is expected in Q3, as some refunds are still on the balance sheet, but aside from that, normal seasonal patterns should be expected.
Q: Can you provide the IEPA tariff bridge from the $26 million received to the $12 million year-over-year benefit? A: Brian Regan, CFO, detailed that of the $26 million in refunds received, $12 million was recognized in operating income during the quarter. An additional $4 million is expected in Q3. The remaining $10 million is allocated to refunds to customers, corrections of previously recognized tariff costs, and approximately $1 million in interest income recognized during the quarter.
Q: Now that net leverage is below three times, how do you view your capital allocation strategy? A: Aaron Ravenscroft, President and CEO, stated that the company feels much better about its balance sheet and is happy to be below the three times target. The company will continue to be opportunistic regarding share repurchases and acquisitions, while maintaining a focus on cash management and capex discipline.
Q: What are your July orders like? A: Aaron Ravenscroft, President and CEO, reported that July was another great month with orders exceeding $200 million, which is typically a slow month due to seasonality. He noted that September will be a good indicator of the order cadence heading into the fourth quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
