Hiab Oyj

Overview

- **How the company got here** Hiab Oyj, formerly known as Cargotec Corporation, has a history dating back to 1944. The company's roots are in the Swedish engineering industry, with the invention of the first hydraulic loader crane by Eric Sundin in 1944. Over the decades, through a series of acquisitions and strategic developments, the company grew and diversified its load-handling solutions. In 2005, Cargotec was formed when Kone Corporation was split, and it initially comprised three business areas: Kalmar, Hiab, and MacGregor. In recent years, Cargotec underwent a significant transformation, separating the Kalmar business into a new listed company and selling the MacGregor business. This strategic shift led to Cargotec changing its name to Hiab Oyj in March 2025, becoming a standalone company focused solely on on-road load-handling solutions. - **What it actually does** Hiab Oyj designs, manufactures, and sells smart and sustainable on-road load-handling solutions and services. These solutions are crucial for essential industries like construction, waste management, defense logistics, and retail. Essentially, Hiab provides the equipment that helps move goods and materials efficiently and safely, keeping everyday life moving. The company's offerings include a wide range of products such as loader cranes, truck-mounted forklifts, forestry and recycling cranes, demountable systems, and tail lifts. - **Equipment** This segment is where Hiab makes and sells its new machinery. It includes a variety of load-handling equipment like loader cranes, which are mounted on trucks to lift and move heavy items, and forestry cranes used for logging operations. You'll also find truck-mounted forklifts, which are compact forklifts that can be carried on the back of a truck for easy unloading, as well as demountable systems and tail lifts, which are platforms that raise and lower goods from the back of a vehicle. This part of the business represents the majority of Hiab's sales, with products forming about 70% of its revenue. - **Services** The Services segment focuses on supporting Hiab's equipment throughout its lifecycle. This includes providing spare parts to keep machines running, offering maintenance and repair services to ensure optimal performance, and supplying accessories to enhance equipment functionality. Hiab also offers digital services, such as connected fleet management, which helps customers monitor their equipment remotely and improve efficiency. This segment is a growing area for Hiab, contributing about 30% of its revenue and offering opportunities for recurring income. - **What management is betting on now** Hiab's management is focused on profitable growth and aims to become the number one partner in smart and sustainable load handling solutions. A key part of their strategy is expanding their presence and sales in North America, recognizing it as a significant growth opportunity. They are also heavily investing in growing their services business, aiming to increase customer loyalty and generate more recurring revenue through maintenance contracts and digital services. Furthermore, Hiab is committed to innovation, planning to double its research and development (R&D) investments to focus on sustainability, such as electric cranes, and to improve the productivity and safety of its equipment. The company is also working towards becoming carbon neutral by 2030, aligning its operations with environmental goals.