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Hiab Oyj: The Inventor of the Hydraulic Crane Industry
I. Introduction & Episode Roadmap
Deep in the forests of northern Sweden during the closing months of World War II, a ski manufacturer named Eric Sundin faced a mundane but maddening problem. The heavy roundwood timber he needed for his ski production was scattered across muddy logging sites, and getting it onto trucks required teams of laborers using primitive rope-and-pulley systems—backbreaking, dangerous work that ate up precious time and capital. Sundin, an inveterate tinkerer with an eye for mechanical efficiency, became obsessed with a deceptively simple question: What if a truck's own engine could power a crane to load itself?
That question—born from frustration in a Swedish timber yard—would ultimately create an entirely new industrial category. Eric Sundin built the first hydraulic crane in 1944. He was a ski manufacturer and inventor from Hudiksvall, Sweden, who saw the potential of hydraulics and discovered how to use a truck engine to power loader cranes with the help of hydraulics. He created a hydraulic crane to move the heavy roundwood he needed for his ski production. In 1944, he established Hydrauliska Industri AB (Hiab), and the Hiab method was born. This method revolutionised load handling.
Today, eight decades later, Hiab Oyj stands as the culmination of that innovation—a €1.6 billion company that finally emerged as a standalone entity on April 1, 2025, after traversing one of the most Byzantine corporate genealogies in Nordic industrial history. The change of the parent company name from Cargotec Corporation to Hiab Corporation was registered with the Finnish Trade Register on 31 March 2025. This milestone marks a new chapter for Hiab.
The journey from Sundin's forest clearing to the Nasdaq Helsinki involves ski factories and limestone quarries, Finnish industrial dynasties and failed mega-mergers, a triple demerger that split one company into three, and regulators on three continents who torpedoed a $5 billion deal because they didn't trust the companies' "mix and match" remedy proposals.
Why does any of this matter to investors? Because Hiab represents a rare phenomenon: a category-defining innovator that has spent nearly five decades buried within corporate conglomerates, finally emerging as a "pure-play" investment just as the logistics infrastructure supporting global trade faces unprecedented modernization pressures. Hiab (Nasdaq Helsinki: HIAB) is a leading provider of smart and sustainable on road load-handling solutions, committed to delivering the best customer experience every day with the most engaged people and partners. The company's continuing operations sales in 2024 totalled approximately EUR 1.6 billion and it employs over 4,000 people.
The term "HIAB" has become genericized in the United Kingdom—much like "Hoover" for vacuum cleaners—used colloquially to describe any truck-mounted loader crane regardless of manufacturer. That kind of brand recognition, achieved through first-mover advantage and sustained technical leadership, is the sort of moat that investors dream about but rarely find available for purchase outside of decade-old conglomerates.
Now it's available. The question is whether standalone Hiab can convert its historical innovation edge into the 16% operating margins and 25%+ returns on capital employed that management has promised by 2028.
II. Origins: A Ski Manufacturer's Invention (1944–1950s)
The Eureka Moment
The year was 1944, and the world was still at war. In the small Swedish town of Hudiksvall, Eric Sundin had already built a successful business manufacturing skis—a product in high demand as Nordic populations relied on skiing for winter transportation and militaries across Europe equipped their troops for winter campaigns. Sunfab founder Eric Sundin was always interested in mechanics and technology and in 1925 he started a ski factory on a small scale in Arbrå - Sundins Fabriker. Since Eric was good at marketing himself, the ski factory developed quickly, and in a few years had grown to 20 employees. A contributing reason for the development going so fast may be due to the fact that the Vasaloppet (large Swedish ski race) started in 1922 and a great interest in skiing also increased for the general public. The military also became a major customer.
But Sundin's ski factory had a bottleneck that no amount of clever marketing could solve: timber logistics. Quality ski production required specific grades of wood, free of knots and defects, harvested from forests scattered across the Swedish hinterland. Getting that wood from forest floor to factory involved primitive methods that hadn't changed in centuries—manual labor, ropes, animal power. Hiab was started as a side-project in 1944 when Eric Sundin saw the need for a safe and easy way to load and unload timber needed in his ski factory. Sundins was already one of the world's largest ski producers.
Sundin's insight was elegantly simple: every truck already contained a powerful engine sitting idle during loading operations. What if that engine's power could be channeled through hydraulic systems to operate a crane mounted on the truck itself? The truck would load itself—"one man to do the job" of many—eliminating the need for fixed cranes at loading sites or teams of laborers.
Sundin, recognizing the limitations of manual labor and rope-and-pulley systems for loading timber onto trucks, invented a hydraulic crane powered by the truck's own engine, marking the birth of the "Hiab method" for on-road load handling. This innovation addressed post-World War II needs in Sweden's forestry sector by enabling faster, safer material transport directly from forests to roads. In the same year, Sundin developed the first prototype hydraulic crane, which underwent three years of refinement before the HIAB 190 model was ready for market.
The HIAB 190: A Revolution in Load Handling
Three years of development and improvements followed that initial prototype. HIAB founder Eric Sundin began work on the world's first hydraulic crane, the HIAB 190, in 1944. Three years of development and improvements later, it was launched at the international Sankt Erik's Fair and ready for mass production. The crane that emerged—the HIAB 190—was modest by modern standards: a one-tonne lifting capacity and a 3.5-meter arm designed specifically for timber loading. But its impact on Swedish forestry operations was immediate and transformative.
Customers were encouraged to install the crane equipment on their trucks to 'try before they buy' – and they did. The HIAB 190 was an immediate hit, and it was said that every second truck in northern Sweden soon had one installed.
Think about that statistic: within a few years, half of all trucks in northern Sweden were equipped with Hiab cranes. This wasn't incremental improvement—it was category creation. Sundin hadn't just built a better mousetrap; he had invented an entirely new way for commercial trucks to function.
The serial production of HIAB 190 started in 1947. This was quickly improved and became HIAB 192, which sold nearly 13,000 units until 1964. Thirteen thousand units of a single product variant—sold before anyone had heard of global supply chains or just-in-time manufacturing—represented an extraordinary commercial success for a small Swedish engineering firm.
Scaling to Global Markets
By 1952, barely five years after serial production began, Hiab had transformed from a side project of a ski manufacturer into a substantial industrial concern in its own right. The HIAB 190 was in production for seven years, from 1948 through 1954, and the brand gained global renown. By 1952 HIAB had a staff of 120 in a new office and factory, a turnover of almost SEK six million and was exported to 33 countries.
The export statistic deserves particular attention: 33 countries by 1952. This was a remarkably fast international expansion for a company barely eight years old, operating from a small Swedish town, selling a product that hadn't existed a decade earlier. Sundin had stumbled upon something with universal applicability—any industry that moved heavy goods onto trucks could benefit from self-loading capability.
The "Elephant" and the Knuckleboom Standard
If the HIAB 190 created the category, the next breakthrough defined its permanent form. When Hiab presented the "Elephant" loader crane in 1956, it was the breakthrough that introduced today's "knuckleboom" crane standard.
The "knuckleboom" design—where the crane arm folds at a joint (the "knuckle") allowing it to extend outward and then fold back for transport—solved a critical practical problem. Traditional straight-arm cranes extending from trucks created clearance issues on roads, hit bridges and overpasses, and made navigation through urban environments difficult. The knuckleboom could fold compactly for travel and then unfold to reach impressive working distances.
This wasn't just product innovation—it was standard-setting. The basic knuckleboom architecture that Hiab pioneered in 1956 remains the dominant design paradigm for truck-mounted loader cranes nearly seven decades later. Every competitor that entered the market subsequently had to either license similar technology or develop workarounds. First-mover advantage in industrial equipment manufacturing can persist for generations when the first mover gets the fundamental design right.
The Sundin Legacy: Parallel Innovations
Eric Sundin's genius extended beyond the loader crane itself. Eric Sundin was involved when the first hydraulic piston pump, Sunfab, was developed in 1954. The youngest son Henry took care of the construction of pumps at Sunfab, while the two older sons Anders and Göran started working at HIAB.
This is a pattern common among great industrial innovators: the core innovation spawns adjacent businesses that supply critical components. Just as the automobile created demand for tires, batteries, and petroleum, Sundin's loader cranes created demand for specialized hydraulic pumps—and Sundin's family built that business too.
It became too much for a family to handle by themselves. Therefore, HIAB was sold in 1965 to an investment company. However, Eric Sundin continued to work at Sundin's factories until his death in 1975.
The 1965 sale marks the end of the founder era and the beginning of Hiab's long journey through successive corporate owners. For investors analyzing Hiab today, that 1965 divestiture is the original sin that would require six decades to undo—the moment when operational control passed from the founding innovators to professional managers operating within larger conglomerate structures.
III. Building a Portfolio Empire: The Partek Era (1977–2002)
Enter Partek: A Limestone Producer Goes Shopping
The story of how a Finnish limestone producer came to own the Swedish innovator of hydraulic cranes illustrates one of the defining trends of 20th-century Nordic industry: conglomerate diversification.
The roots of today's Hiab Company lie in a series of acquisitions from 1977 onwards, when Partek Corporation embarked on a comprehensive diversification and internationalisation strategy. Founded in 1898, Partek Corporation was one of the oldest industrial companies in Finland, originally producing limestone and later a versatile range of materials for the construction industry. In 1977 Partek decided to expand into the engineering industry and thereby decrease its dependence on domestic construction cycles.
The logic was straightforward: construction materials are notoriously cyclical, tied to domestic building activity that swings dramatically with interest rates, demographic trends, and economic confidence. Engineering businesses—particularly those serving global transportation and logistics—offered steadier demand patterns and exposure to international growth. Partek's management looked at their volatile earnings and concluded that buying their way into different industries was preferable to suffering through another construction downturn.
The Acquisition Spree: Building Hiab Brick by Brick
The foundations of Cargotec's Hiab business area were laid in 1977 when Partek Corporation bought Multilift Group. This was the opening move—Partek's first acquisition in the load-handling space was not Hiab itself but Multilift, a Finnish company with its own remarkable origin story.
On the other side of the Bothnian Sea in Raisio, Finland about the same time, three brothers, Mikko, Mauno and Martti Terho developed a mechanical cable-operated interchangeable platform-loader (Cablelift) that utilised the truck's front winch, with which it was possible to use a variety of platform bodies. In 1949 they started Multilift to manufacture their innovative load handling equipment.
The Terho brothers had invented the "demountable" concept—the ability to quickly swap different container bodies on and off a single truck chassis. Combined with Sundin's self-loading crane technology, demountables would create enormous flexibility for logistics operators who could use a single truck for multiple purposes by changing containers.
Eight years later, in 1985, the company bought Hiab with its forestry-crane subsidiary Jonsered. In 1988 they bought Loglift - as the name implies, also a forestry crane manufacturer.
The 1985 Hiab acquisition was the crown jewel—acquiring the original innovator and the brand that had become synonymous with the category. The subsequent acquisition of Loglift extended Partek's forestry crane capabilities, creating a comprehensive portfolio for the logging industry that had been Hiab's original customer base.
Strategic Transformation: From Materials to Engineering
During the late 1990s Partek strategically restructured itself into an engineering company, fully divesting its construction-materials activity and making several acquisitions in the load-handling equipment business.
This is a critical strategic shift worth understanding. Partek didn't just add engineering to its limestone business—it completely exited construction materials to become a pure engineering company. The diversification strategy of the 1970s had succeeded to the point where the "diversification" businesses had become the core, and the original business was divested.
The load-handling side of Partek expanded in 2000 with the acquisition of the Zeteco Group (including among others ZEPRO and WALTCO tail lifts). Tail lifts—the hydraulic platforms at the back of delivery trucks that allow workers to raise and lower cargo to ground level—were a natural adjacency. Same customers, same sales channels, same underlying hydraulic technology.
The year 2000 brought another strategic acquisition: truck-mounted forklifts under the MOFFETT brand. These "piggyback" forklifts ride on the back of trucks and can be deployed on-site for loading and unloading—another "one man to do the job" efficiency innovation that fit naturally with Hiab's product philosophy.
The KONE Acquisition: Finnish Industrial Dynasties Collide
In 2002, the Partek chapter ended when a far larger Finnish industrial player entered the picture. KONE Corporation acquired Partek in 2002.
Kone Corporation had succeeded in taking control of Partek (and thereby Kalmar Industries, Bromma, Multilift, Cargotec, Valtra, etc), with the Finnish state, Partek's biggest shareholder, swinging behind Kone's cash offer of €225 mill (€15.3 per share) for its 30.2 percent stake.
KONE was—and remains—one of Finland's most successful multinational companies, best known globally as a leading manufacturer of elevators and escalators. The Herlin family, who controlled KONE, saw the Partek acquisition as an opportunity to create a diversified Nordic industrial champion.
KONE's minimal debt and strong cash flow made the acquisition possible. The deal increased KONE's debt, but the sale of Partek's non-core operations and the strong cash flow of both companies are anticipated to decrease indebtedness.
In 2004 the load-handling functionality was renamed after its most valuable product brand, HIAB. This rebranding signaled HIAB's importance within the broader Partek portfolio—the brand equity built over 60 years was valuable enough to become the umbrella identity for all of KONE's load-handling operations.
IV. Birth of Cargotec: The KONE Demerger (2005)
Why Demerge? The Conglomerate Discount Problem
By 2005, KONE's management had arrived at a conclusion that many diversified industrial conglomerates reach eventually: the sum of the parts might be worth more than the whole. The elevator/escalator business and the cargo-handling businesses served different customers, operated in different competitive environments, and required different strategic priorities. Keeping them together under one corporate umbrella created a "conglomerate discount" where investors couldn't easily value or invest in either business.
On 1 June 2005 KONE Corporation demerged into new KONE and Cargotec Corporation (listed in Helsinki Stock Exchange).
By 2005, KONE underwent a significant restructuring via demerger on June 1, separating its core elevator and escalator operations from the logistics-focused Cargotec Corporation, allowing sharper focus on global people flow solutions.
The decision reflects a fundamental tension in corporate strategy: diversification can reduce risk and provide internal capital allocation flexibility, but focus typically drives operational excellence and attracts investors who want pure-play exposure to specific industries.
The Three-Legged Stool: Kalmar, Hiab, MacGregor
Cargotec consists of Hiab load-handling, Kalmar container-handling and MacGREGOR marine-cargo handling services.
The newly independent Cargotec wasn't a single-product company—it was itself a conglomerate of three distinct businesses:
Kalmar served ports and terminals with container-handling equipment: straddle carriers, reach stackers, terminal tractors, and automated guided vehicles. Think of the massive equipment you see moving shipping containers around major ports.
Hiab served on-road transportation with loader cranes, demountables, tail lifts, and truck-mounted forklifts. The original Swedish innovation, now expanded across multiple product categories.
MacGregor served the maritime industry with cargo-handling systems for ships: hatch covers, cranes, RoRo equipment, and offshore load-handling systems.
Three different end markets (ports, roads, ships), three different customer bases, three different competitive dynamics—but all united by the theme of "moving cargo." Cargotec positioned itself as the comprehensive cargo-flow solutions provider, offering products for every stage of how goods move around the world.
The Herlin Family: Continuity Through Transformation
The major shareholders of Cargotec are Pekka Herlin's heirs Ilkka Herlin (Wipunen Varainhallinta Oy), Niklas Herlin's estate (Mariatorp Oy) and Ilona Herlin (since 31 August 2015 Pivosto Oy) each managing over 22% of votes. Cargotec's major shareholders are the heirs of Pekka Herlin.
Cargotec's three major shareholders are Wipunen varainhallinta Oy controlled by Ilkka Herlin, Mariatorp Oy controlled by Heikki Herlin and Pivosto Oy, a company controlled by Ilona Herlin. Together these shareholders hold approximately 37% of total shares and 69% of the votes.
The Herlin family's control position—approximately 69% of votes despite holding only 37% of shares—reflects Finland's dual-class share structure, common in Nordic countries, where founding families maintain control through superior-voting shares even as they dilute their economic ownership over time.
The Herlin family is a Finnish family whose members are the main shareholders of the Finnish company Kone Corporation. According to historian Markku Kuisma, the Herlin family is probably "the wealthiest family in both relative and absolute terms in the history of independent Finland". At the beginning of 2015, Helsingin Sanomat calculated that Herlins owned shares in listed companies worth approximately EUR 6.8 billion, many times more than any other family in Finland and more than the 20 next richest families combined.
This family control dynamic matters for understanding Hiab today. The Herlins have maintained controlling stakes through the KONE/Partek merger, the Cargotec demerger, the Kalmar spin-off, and now standalone Hiab. That continuity of ownership—with its long-term orientation and patient capital perspective—has influenced strategic decisions throughout the company's corporate evolution.
V. The Brand Portfolio Strategy: Building Category Leaders (2005–2020)
The Multi-Brand Approach
One of the most distinctive aspects of Hiab's business model is its multi-brand architecture. Rather than consolidating all products under a single umbrella brand, Hiab operates a portfolio of specialized brands, each with distinct heritage and market positioning.
Hiab Oyj provides smart and on road load-handling solutions and services in Finland. The company provides loader cranes under the HIAB brand; forestry cranes under the LOGLIFT and JONSERED brand names; recycling cranes under the JONSERED brands; truck mounted forklifts under the MOFFETT brand; skip loaders, hoists, and hook lifts under the MULTILIFT and GALFAB brand; and tail lifts under the ZEPRO and DEL brands. It also offers maintenance, equipment warranty, spare parts, and service kits.
Each brand represents either a founding innovator in its category (like HIAB for loader cranes or MULTILIFT for demountables) or a regional champion acquired to strengthen market position (like EFFER for heavy cranes or ARGOS for Latin American markets).
The Acquisition Strategy: Geography and Capability
Hiab's growth through acquisition followed two primary vectors: geographic expansion and capability enhancement.
In 2017, HIAB acquired the loader crane business of Argos Guindastes in Brazil, enabling entry into the South American market and strengthening its position in emerging economies with locally adapted crane solutions. This was followed in 2018 by the purchase of Effer S.p.A., an Italian manufacturer of knuckle boom cranes, which broadened HIAB's European presence and integrated advanced light- to medium-capacity loaders into its lineup.
The EFFER acquisition deserves particular attention. EFFER was not a small regional player—it was "a renowned premium knuckle-boom crane manufacturer with over 50 years of history," with particular strength in heavy loader cranes above 100 tonne-meters capacity. This acquisition filled a product gap in Hiab's portfolio and brought Italian engineering excellence into the family.
The strategy culminated in North American and component-focused expansions with the 2021 acquisition of Galfab, a U.S.-based producer of demountable hooklifts and roll-off hoists, which enhanced HIAB's refuse and recycling equipment offerings while leveraging Galfab's established dealer network. In 2022, HIAB acquired Olsbergs, a Swedish firm specializing in electro-hydraulic valves, control systems, and tail lifts, further diversifying into industrial components and truck/trailer applications to support integrated load-handling solutions.
The Galfab acquisition illustrates Hiab's "category champion" approach. The U.S. refuse and recycling market has specific requirements and established distribution networks. Rather than trying to penetrate this market organically with European products, Hiab acquired an established player with the dealer relationships and product configurations already optimized for American customers.
Heritage Brands: When Your Subsidiary Predates Your Parent
One of the more remarkable aspects of Hiab's brand portfolio is the age of some constituent brands. The new test track is named Terho, which is Finnish for acorn. It is also the surname of the brothers who invented the world's first demountable. Hailing from Raisio, the Terho brothers went into business in 1949, establishing MULTILIFT, a mechanical, cable lift demountable for trucks.
JONSERED, the forestry and recycling crane brand, traces its origins even further—founded in Sweden in 1833, nearly two centuries ago. These heritage brands carry decades or even centuries of accumulated expertise, customer relationships, and brand equity that would be impossible to replicate through organic development.
VI. INFLECTION POINT #1: The Failed Konecranes Mega-Merger (2020–2022)
The Announcement: Creating a Finnish Industrial Champion
On October 1, 2020, Cargotec and Konecranes dropped a bombshell on the Nordic industrial sector. The two companies announced an agreement to merge in a $5 billion deal in October 2020.
The strategic logic seemed compelling. Cargotec (through Kalmar) and Konecranes both served the port terminal market with container-handling equipment. The combination involved two Finnish suppliers of equipment and services used by port terminal operators, logistics companies, and other industrial firms to lift and handle containers and cargo around the world.
Proponents argued that combining the two would create a European champion capable of competing with rising Asian competitors, accelerate R&D investment in automation and electrification, and generate significant cost synergies from eliminating duplicate functions.
Regulatory Opposition: When Remedies Don't Remedy
The merger required approval from competition authorities worldwide. The European Commission conditionally approved the deal in February 2022, accepting a remedy package that included divesting Konecranes' Lift Truck business and Kalmar's Automation Solutions unit. Cargotec and Konecranes have obtained clearances for the planned merger from numerous competition authorities. As announced on February 24, 2022, the EC conditionally approved the planned merger between Cargotec and Konecranes on the basis of the same remedy package rejected by the CMA, which comprised commitments to divest Konecranes Lift Truck business and Kalmar Automation Solutions.
But the UK Competition and Markets Authority (CMA) had different views. 29 March 2022: The CMA has prohibited the merger between Cargotec Corporation and Konecranes Plc after finding, in its in-depth investigation, that this merger may be expected to give rise to competition concerns in the supply of a wide range of container handling equipment products.
The same day, the U.S. Department of Justice made clear it would sue to block the merger as well. Cargotec Corporation (Cargotec) confirmed today that it has abandoned its intended merger of equals with Konecranes Plc (Konecranes) one day after the Justice Department's Antitrust Division informed the parties that the settlement proposal was not sufficient to address concerns that the proposed combination would eliminate important competition in four types of shipping container handling equipment used by port customers to move goods in the global supply chain.
The "Mix and Match" Problem
The proposed remedy—carving out pieces from each company to sell to a third party—ran into fundamental skepticism from regulators. In Cargotec/Konecranes, the proposed remedy involved the divestment of two separate business units, one from each of the parties, designed to address the specific overlap areas. However, both the DOJ and the CMA sent strong messages that this kind of "mix and match" solution was unacceptable. The CMA, in particular, highlighted concerns that the proposed carve-out was subject to material "composition" risk, stemming from insufficient or missing assets that would be needed to compete effectively, as well as a lack of certainty as to the effectiveness of the carve-out, which would not necessarily be cured by the right purchaser. The CMA was also concerned that the package was not of sufficient scale to create a viable competitor, given value placed by customers on portfolio breadth. The parties would have had to offer elements going beyond the immediate overlaps identified by the CMA to create an acceptable package.
"The identity of the prospective buyer for the divested Cargotec and Konecranes business units was not known, and it was unclear whether the prospective buyer would have the intention and ability to be an effective, long-term competitor to the merged firm." "This is particularly important because container handling equipment is a critical part of Australian supply chains, which are already under severe stress due to the COVID-19 pandemic." "It was also unclear that the proposed divestiture remedy, made up of mix and match assets from both companies, included all the critical assets, personnel and technology essential for the divested businesses to function successfully and compete with a combined Cargotec-Konecranes."
The Financial Cost
By the end of 2021, Konecranes had booked EUR 56 million and Cargotec EUR 57 million of merger related transaction and integration planning costs. The total transaction cost estimate of EUR 125 million (excluding integration planning costs) remains valid.
EUR 125 million in transaction costs alone—not counting integration planning, management distraction, or opportunity costs—for a deal that never closed. This is the hidden tax of failed mega-mergers, borne ultimately by shareholders who get nothing in return.
Broader Lessons for M&A
The deal illustrates (1) the extent to which decisions in different jurisdictions may diverge, with the most restrictive regimes determining outcomes; (2) a growing trend of increased skepticism toward merger remedies, particularly in the UK and United States; (3) heightened risk around transactions touching key elements of critical supply chains, with regulators on the lookout for areas vulnerable to concentration in light of global developments ranging from pandemic to war; and (4), more broadly, the increasingly difficult regulatory landscape that dealmakers must navigate in undertaking global mergers.
For Cargotec shareholders, the failed merger was devastating in the short term but transformational in its long-term consequences. Blocked from consolidating with Konecranes, management was forced to develop a "Plan B" that would ultimately deliver far more value: breaking apart Cargotec itself into focused, pure-play companies.
VII. INFLECTION POINT #2: The Triple Demerger & Pure-Play Emergence (2023–2025)
The Decision to Separate
With the Konecranes merger dead, Cargotec's board faced a fundamental strategic question: if you can't consolidate externally, why not unlock value through internal separation? In April 2023, Cargotec announced that the company board of directors had decided to investigate and start a process to potentially separate the businesses areas Kalmar and Hiab into two standalone companies.
On 27 April 2023, Cargotec's Board of Directors decided to investigate and initiate a process to potentially separate its core businesses Kalmar and Hiab into two standalone companies.
The rationale was essentially the same argument that had driven the original KONE demerger in 2005, applied one level down. Kalmar (ports), Hiab (roads), and MacGregor (ships) served different customers, faced different competitors, and required different strategic priorities. Keeping them together created a mini-conglomerate discount within a company that was itself created to eliminate conglomerate discount.
Kalmar Spins Off: June-July 2024
The completion of the partial demerger (the "Demerger") of Cargotec Corporation ("Cargotec") has today on 30 June 2024 been registered with the Finnish Trade Register. The completion of the partial demerger (the "Demerger") of Cargotec Corporation ("Cargotec") has today on 30 June 2024 been registered with the Finnish Trade Register. Cargotec announced on 1 February 2024 the approval of a demerger plan concerning the Demerger (the "Demerger Plan") according to which all assets, debts and liabilities of Cargotec relating to the Kalmar business area or mainly serving the Kalmar business area shall be transferred without a liquidation procedure to Kalmar Corporation ("Kalmar"). In connection with the completion of the Demerger, Nasdaq Helsinki Ltd ("Nasdaq Helsinki") has approved the listing application concerning the listing of Kalmar's class B shares on the official list of Nasdaq Helsinki.
Trading in the 54,798,029 class B shares of Kalmar will commence on 1 July 2024 under the share trading code "KALMAR" (ISIN code: FI4000571054).
The mechanics were elegant: Cargotec shareholders received one Kalmar share for each Cargotec share they owned, maintaining their proportional economic interest in the port equipment business while creating a separately traded vehicle for that investment.
MacGregor Sale: November 2024 – July 2025
MacGregor's path to separation followed a different route—outright sale rather than spin-off. The enterprise value of the Transaction is EUR 480 million. Cargotec expects to record a tax-exempt loss of approximately EUR 200 million on the Transaction in the fourth quarter 2024 results. The loss will be recorded as a goodwill impairment in items affecting comparability as a part of discontinued operations.
Helsinki (Finland), 14 November 2024 – Funds advised by Triton ("Triton") have signed an agreement to acquire MacGregor, a global leader in maritime cargo handling, from its parent company Cargotec Corporation (Nasdaq Helsinki: CGCBV). The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close by July 1st 2025. Following completion, Triton intends to form a standalone company.
Why sell MacGregor rather than spin it off? The maritime cargo-handling business had struggled with profitability relative to Kalmar and Hiab, and required significant capital investment to remain competitive. MacGregor is a leader in sustainable maritime cargo and load handling with a strong portfolio of products, services and solutions. In 2023 MacGregor recorded sales of EUR 733 million and a comparable operating profit of EUR 33 million. A 4.5% operating margin wasn't attractive for public market investors seeking pure-play exposure to the higher-margin Hiab business.
Helsinki (Finland) 31 July 2025 - Funds advised by Triton ("Triton") have successfully completed the acquisition MacGregor business from Hiab (formerly Cargotec). In 2024, MacGregor's sales totalled approximately EUR 800 million and the company employs about 2,000 people across 30 countries.
The Name Change: Cargotec Becomes Hiab
Hiab, a global leader in smart and sustainable load handling solutions, starts trading today as a standalone company on Nasdaq Helsinki. Hiab's entry to Nasdaq Helsinki follows Cargotec's Annual General Meeting's resolution on 26 March 2025 to change Cargotec's name to Hiab. The change of the parent company name from Cargotec Corporation to Hiab Corporation has been registered with the Finnish Trade Register on 31 March 2025. This milestone marks a new chapter for Hiab.
Scott Phillips, President and CEO of Hiab says: "With the company transformation and the name change, the shareholders of former Cargotec have shown their belief in Hiab's future growth. We are proud of this trust and aim at generating strong cash flow and sustainable value for our shareholders, solidifying our position as the leader in the load handling industry."
April 1, 2025, thus marks the culmination of a transformation that began with the failed Konecranes merger in 2022. What was once Cargotec—a three-business conglomerate—had become standalone Hiab, a pure-play on-road load-handling company. The corporate structure finally matches the underlying business: one company, one focus, one investment thesis.
VIII. Technology & Innovation: Why Hiab Maintains Leadership
First Mover Legacy: Defining the Category
The same Hiab method is still being used by crane operators daily all over the world. The hydraulic power take-off principle that Eric Sundin pioneered in 1944 remains the fundamental technology underlying truck-mounted cranes today. First-mover advantage in industrial equipment isn't just about brand recognition—it's about defining how an entire category works.
Digital Transformation: HiConnect and HiVision
Hiab has invested heavily in digital solutions that transform its equipment from "dumb" mechanical devices into connected, intelligent systems.
HiConnect is Hiab's industry leading data driven IoT fleet and asset management solution that collects data from Hiab connected equipment and provides data and insights through dashboards.
HiConnect provides near real time data from Hiab equipment. You can use this data to optimize operator, equipment and fleet performance and maintenance. Valuable insights allow you to make data-driven decisions. This minimizes downtime and maximizes asset utilization, performance and safety.
The connectivity platform creates recurring revenue opportunities through software subscriptions, differentiates Hiab equipment from competitors, and generates data insights that inform product development. Fleet operators can monitor equipment utilization, track maintenance needs, and optimize logistics planning—capabilities that were impossible before digital connectivity.
HiVision is the industry leading innovative digitalization solution that provides individual operators with vision to safely carry out any job without having to leave the cabin. Hiab is the innovating pioneer of the material handling industry by incorporating virtual reality technology, which brings superior operational functionality, unrivaled levels of safety, and increased productivity. HiVision is the industry leading innovative digitalization solution that provides individual operators with vision to safely carry out any job without having to leave the cabin.
HiVision represents an even more transformative application of technology. HiVision™ is the first fully digitalised solution that gives a 270 degree view horizontally and 130 degree view vertically using external cameras mounted to the body of the equipment. The virtual reality technology assesses the external working conditions so the operator can stay safely within the truck cabin.
HiVision creates an Augmented Reality experience by overlaying operation guidance and equipment information to real-life footage captured by rear cameras. The driver sees it on a touch-screen display inside the truck cabin that can also be used to operate the hooklift.
This addresses one of the industry's most pressing challenges: operator recruitment and safety. Tadashi Hatakeyama from Furusato Mokuzai Logistics, Japan, sees the safe and comfortable work environment as the biggest advantage of HiVision™ is the safe and comfortable work environment. HiVision also helps attract new employees to his company.
Sustainability: The Eco Portfolio
Eco portfolio sales increased by 24 percent and totalled EUR 297 (240) million representing 37 (28) percent of consolidated sales.
Hiab's "eco portfolio"—products with enhanced sustainability characteristics including electric and hybrid options—grew to 37% of sales in the first half of 2025, up from 28% a year earlier. This isn't greenwashing; it reflects real customer demand for equipment that can operate in urban low-emission zones and help fleet operators meet their own sustainability commitments.
Hiab is dedicated to sustainability. As a 1.5°C company, Hiab supports its customers' sustainability goals, with a focus on low-emission material sourcing and increased eco portfolio sales.
IX. Business Model Deep-Dive
Geographic Distribution
Net sales are distributed geographically as follows: Finland (2.6%), Europe/Middle East/Africa (46.2%), the United States and Canada (41.6%), Americas (3%) and Asia/Pacific (6.6%).
The geographic mix reveals Hiab as essentially a transatlantic business, with EMEA and North America accounting for nearly 88% of sales. This concentration creates both opportunity and risk: opportunity because these are the largest and most sophisticated markets for load-handling equipment; risk because cyclical downturns in either region disproportionately impact financial results.
The Q3 2025 results illustrated this risk vividly. Hiab's Q3 profitability was affected by lower sales in the U.S. Our orders decreased slightly. Comparable operating profit margin decreased to 11.4% due to lower sales in the U.S., which was caused by elevated market uncertainty due to increased trade tensions.
Revenue Mix: Equipment vs. Services
Net sales break down by source of income into sales of products (71.9%), and services (28.1%; including installation and maintenance services).
The 28% services mix is strategically important. Equipment sales are inherently lumpy—tied to customer capital expenditure cycles and economic conditions. Services revenue (spare parts, maintenance, digital subscriptions) tends to be more stable and often carries higher margins.
Additionally, our Services business continued to grow, representing 34 (29) percent of the sales in the quarter. The services share has been growing, reaching 34% of sales in Q3 2025—a positive trend for revenue stability and margin expansion.
Reporting Structure: Equipment and Services Segments
Hiab has as of 1 January 2025 two reporting segments, Equipment and Services, with reporting to commence in the January-March 2025 interim report. The Equipment reporting segment comprises of new equipment: loader cranes, forestry and recycling cranes, truck mounted forklifts, demountables and tail lifts. The Services reporting segment comprises of spare parts, maintenance, accessories, installations, digital services and refurbished equipment.
The new segment reporting provides investors with cleaner visibility into business dynamics. Equipment margins can fluctuate with raw material costs, production efficiency, and pricing power; services margins tend to be more consistent and typically higher.
The Equipment segment's comparable operating profit margin decreased by 130 basis points to 13.9 (15.2) percent while the Services segment improved by 330 basis points to a record-high 25.0 (21.7) percent.
A 25% operating margin in Services versus 14% in Equipment illustrates why growing the services mix matters for overall profitability. Each percentage point shift from Equipment to Services drops straight to the bottom line.
X. Financial Performance & Long-Term Targets
Historical Performance
Our 10-year average annual sales growth was at the target level of 7 percent, last twelve months' comparable operating profit margin increased to 13.7 percent and operative ROCE to 29.6 percent.
A 7% compound annual growth rate over ten years—achieved through a combination of organic growth, bolt-on acquisitions, and market share gains—demonstrates that the load-handling market offers meaningful expansion opportunities for well-positioned players.
2025 Performance
The first three quarters of 2025 showed both the strengths and vulnerabilities of the business model.
EBITA was EUR 127 (126) million, representing 15.7 (14.8) percent of sales. Operating profit was EUR 126 (124) million.
Strong H1 performance was followed by a challenging Q3. Hiab Oyj reported a decline in its Q3 2025 earnings, with comparable operating profit falling by 24% to €40 million, compared to €52 million the previous year. The company's sales also decreased by 11%.
Hiab estimates its continuing operations' comparable operating profit margin in 2025 to be above 13.5 percent (2024: 13.2 percent).
Despite the Q3 setback, management maintained full-year guidance for margins above 13.5%, implying confidence in Q4 recovery or cost actions to offset U.S. market weakness.
Long-Term Targets: The 2028 Roadmap
Cargotec's Board of Directors has set the following financial targets for Standalone Hiab to measure success by 2028: Annual sales growth over seven percent over the cycle (unchanged) ... Standalone Hiab also aims for a growing dividend of 30–50 percent of EPS and to keep gearing below 50 percent.
The last twelve months' comparable operating profit margin increased compared to previous year's level and was 13.6 (12.6) percent, showing significant progress towards the target of 16 percent.
The gap between current performance (~13.5% operating margin) and the 2028 target (16%) represents approximately 250 basis points of margin expansion. That's a meaningful but achievable improvement through a combination of: - Product mix shift toward higher-margin services - Eco portfolio growth (often commanding price premiums) - Operational efficiency improvements - Scale benefits as the top line grows
We were also able to improve our operative ROCE to 29.8 (27.1) percent with successful working capital management. We were also able to improve our operative ROCE to 29.8 percent with successful working capital management.
The 29.8% operative ROCE already exceeds the 25%+ target, demonstrating that Hiab generates excellent returns on the capital invested in the business.
XI. Competitive Landscape & Strategic Analysis
Key Competitors
The global vehicle mounted crane market is highly competitive and fragmented, with key players such as Palfinger AG, Hiab, Tadano Ltd., Liebherr Group, Manitowoc Company, Inc., and KATO WORKS CO., LTD. leading the field through their innovative technologies and extensive product offerings.
Palfinger has 12,358 employees and is ranked 1st among it's top 10 competitors. Hiab is Palfinger's #1 rival.
The Hiab-Palfinger rivalry is the defining competitive dynamic in the loader crane market. The main product of Palfinger AG is the loader crane, Palfinger has over 100 models of this product and is the world market leader in this field. The main product of Palfinger AG is the loader crane, Palfinger has over 100 models of this product and is the world market leader in this field.
Palfinger, headquartered in Austria, competes directly with Hiab across most product categories and geographies. Palfinger achieved a revenue of €2.45 billion in the fiscal year 2023 with 12,728 employees. The company has production and sales locations in Europe, North and South America, as well as Asia. Palfinger has more than 5,000 sales and service points in more than 130 countries.
Porter's Five Forces Analysis
Threat of New Entrants: LOW - High capital requirements for manufacturing, R&D, and global distribution - Established brands with decades of customer relationships - Certification and safety compliance requirements create barriers - Scale economies in component sourcing favor incumbents
Bargaining Power of Suppliers: MODERATE - Specialized hydraulic components have limited suppliers - Steel and other raw materials are commodity inputs with multiple sources - Backward integration (like the Olsbergs acquisition) reduces supplier power
Bargaining Power of Buyers: MODERATE TO HIGH - Large fleet operators and OEM truck manufacturers have negotiating leverage - Fragmented customer base of smaller operators has less power - Switching costs exist (training, parts inventory, service relationships) but aren't prohibitive
Threat of Substitutes: LOW - No viable alternative to hydraulic cranes for on-truck loading applications - Manual labor is more expensive and less safe - Fixed-site cranes can't provide the mobility advantage
Competitive Rivalry: HIGH - Palfinger and Hiab compete intensely for market leadership - Italian competitors (Fassi, Effer before acquisition) add pressure in Europe - Chinese manufacturers (Zoomlion, XCMG) present emerging threat - Innovation race in digitalization and electrification
Hamilton Helmer's 7 Powers Framework
Scale Economies: Present but not overwhelming. Both Hiab and Palfinger operate at sufficient scale to achieve competitive manufacturing costs.
Network Effects: Limited in traditional sense, but HiConnect creates data network effects—more connected equipment generates more data, enabling better predictive maintenance and product development.
Counter-Positioning: Hiab's digital-first strategy and sustainability focus may leave traditional competitors unable to respond without cannibalizing existing business models.
Switching Costs: Moderate. Fleet operators invest in training, parts inventory, and service relationships. HiConnect subscription creates additional stickiness.
Branding: Strong. "Hiab" has achieved generic trademark status in some markets—extraordinary brand recognition for industrial equipment.
Cornered Resource: The Hiab brand name and 80+ years of accumulated engineering expertise represent difficult-to-replicate assets.
Process Power: Decades of manufacturing optimization and supply chain development create operational advantages.
Bull Case
- Pure-play status attracts focused investors and may reduce conglomerate discount
- Services growth toward 30-35% of sales improves margin stability
- Digitalization (HiConnect, HiVision) creates recurring revenue and competitive differentiation
- Electrification/sustainability trends favor Hiab's eco portfolio
- Strong balance sheet enables opportunistic acquisitions
- 16% margin target achievable through operational improvements
- Family ownership provides long-term orientation and stability
Bear Case
- U.S. market weakness (41% of sales) could persist or worsen
- Trade tensions create demand uncertainty
- Competition from Chinese manufacturers may intensify
- Cyclical exposure to construction and logistics capital spending
- Limited geographic diversification (Asia-Pacific only 6.6%)
- Premium pricing may be vulnerable in economic downturns
- Key man risk with leadership transitions
XII. Investment Considerations
Key Performance Indicators to Monitor
For investors tracking Hiab's ongoing performance, three metrics deserve primary focus:
1. Services Revenue as Percentage of Total Sales Currently around 28-34% depending on quarter, with management targeting continued growth. Higher services mix improves margin stability and recurring revenue characteristics. Watch for quarterly trends and commentary on digital subscription uptake.
2. Comparable Operating Profit Margin The 2028 target is 16%; current performance is around 13.5%. Progress toward this target demonstrates pricing power, operational efficiency, and mix improvements. Quarterly fluctuations are normal, but sustained margin compression would signal competitive or structural challenges.
3. Order Book and Order Intake Trends Orders received provide forward visibility into equipment demand. Hiab noted orders have been "stable for the eleventh consecutive quarter"—stability is good, but acceleration would signal demand recovery. Geographic breakdown (particularly U.S. vs. EMEA) indicates regional momentum.
Ownership Dynamics
Of Hiab's major shareholders, Wipunen varainhallinta Oy is a company controlled by Ilkka Herlin, Mariatorp Oy a company controlled by Heikki Herlin and Pivosto Oy a company controlled by Ilona Herlin.
The Herlin family's controlling stake (approximately 69% of votes) means minority shareholders have limited ability to influence strategic direction. This is typical for Nordic companies with dual-class shares but may concern governance-focused investors.
The positive interpretation: family control encourages long-term thinking and resists short-term activist pressure. The negative interpretation: minority shareholders are along for the ride regardless of whether they agree with strategic decisions.
Regulatory and Legal Considerations
The failed Konecranes merger demonstrated the importance of antitrust risk for industrial equipment companies. Any future M&A—whether Hiab as acquirer or target—would face intense regulatory scrutiny given the concentrated nature of the loader crane market.
Current trade tensions, particularly between the U.S. and China, create policy uncertainty that affects customer capital spending decisions. Supply chain vulnerabilities, particularly with less than 10% Chinese component exposure, could affect production. Hiab's limited Chinese component exposure reduces direct tariff impact but doesn't eliminate secondary effects from broader trade disruption.
Valuation Context
With an EV/EBITDA ratio of 14.1 and P/E ratio of 18.51, the company's valuation metrics suggest reasonable pricing relative to its earnings potential.
The company's strong financial position is evidenced by its healthy current ratio of 1.59 and low debt-to-equity ratio of 0.27.
The balance sheet is notably clean following the MacGregor sale proceeds. We continue to operate with a net cash position, which for continuing operations amounted to EUR 78 million at the end of the quarter. The expected cash impact of the transaction is estimated at approximately EUR 225 million.
XIII. Conclusion: 80 Years in the Making
Eric Sundin never intended to create a global industrial company. He just wanted an easier way to load timber onto his ski factory trucks. But that practical problem-solving instinct—the "Hiab method" of using what you have (a truck engine) to do what you need (lift heavy things)—proved so universally applicable that it spawned an 80-year lineage of innovation, acquisition, consolidation, and ultimately, separation.
The April 2025 emergence of standalone Hiab represents a full-circle moment. A Swedish innovation, acquired by a Finnish limestone producer, rolled up into a Finnish elevator company, demerged into a cargo conglomerate, prevented from merging with a crane competitor, and finally separated into three distinct companies—has returned to something resembling its original state: a focused business, traded independently, accountable to its own performance.
"Hiab has a strong track record of profitable growth. We aim to reach even higher with our new strategy, which our new targets demonstrate. We continue to shape the essential industries we serve with our innovative lifting and delivery solutions and increase customer's productivity, safety and sustainability."
For investors, Hiab offers something increasingly rare: a category-defining brand with genuine first-mover heritage, now available as a pure-play investment for the first time in nearly five decades. The question isn't whether Hiab has competitive advantages—the 80-year track record answers that. The question is whether standalone Hiab can accelerate margin expansion, grow the services business, and navigate cyclical headwinds while converting that heritage into shareholder value.
The Herlin family has bet their controlling stake that it can. The next three years to 2028 will determine whether that bet pays off.
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