Core Viewpoint - Terex Corp. (TEX) is given a sell rating due to significant macroeconomic challenges, particularly in its legacy MP and Aerials segments, and the current forward P/E valuation of 9.5x is deemed insufficient [1] Company Analysis - The investment approach emphasizes understanding the core economics of a business, including competitive moat, unit economics, reinvestment opportunities, and management quality, which are crucial for long-term free cash flow generation and shareholder value creation [1] - The focus is on sectors with strong secular tailwinds, indicating a preference for industries that are expected to grow over time [1] Investment Philosophy - The analysis is rooted in fundamental research, aiming to identify businesses with potential for scaling and unlocking significant terminal value [1] - The goal is to provide insights that help investors concentrate on factors that drive long-term equity value [1]

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!Towards the end 2024 I believed that softness came at the worst time for shares of Terex (NYSE: TEX ) . This followed the company's acquisition of the Environmental Solutions Group from Dover ( DO ...

Core Insights - Terex's international operations are crucial for understanding its financial strength and growth potential, especially given the interconnected global economy [2][3] - The company's total revenue for the quarter ending March 2025 was $1.23 billion, reflecting a year-over-year decline of 4.9% [4] International Revenue Breakdown - Western Europe generated $162 million in revenue, accounting for 13.18% of total revenue, which was a significant miss of -33.91% compared to the projected $245.13 million [5] - Asia-Pacific contributed $102 million, representing 8.30% of total revenue, also falling short by -24.6% against the consensus estimate of $135.27 million [6] Revenue Forecasts - For the current fiscal quarter, total revenue is projected to reach $1.46 billion, an increase of 5.5% from the same quarter last year, with Western Europe expected to contribute 16.5% ($240.62 million) and Asia-Pacific 12.2% ($178.16 million) [7] - For the full year, total revenue is anticipated to be $5.32 billion, indicating a rise of 3.7% from the previous year, with Western Europe at 14.9% ($794.87 million) and Asia-Pacific at 11.8% ($629.27 million) [8] Market Context - The reliance on international markets presents both opportunities and risks, making it essential to monitor international revenue trends for forecasting the company's prospects [9] - Analysts are increasingly focused on international developments and their impact on earnings estimations, influenced by local market conditions [10]

Terex Corporation (TEX) reported adjusted earnings per share of 83 cents, which beat the Zacks Consensus Estimate of 49 cents. The bottom line, however, plunged 52% from the prior-year quarter’s adjusted figure of $1.74 per share. This downfall in earnings was attributed to lower sales volume, Terex’s production adjustment efforts in the wake of weak demand and unfavorable mix in the Materials Processing segment. This was somewhat offset by gains from the company’s cost control initiatives and contribution ...

Terex (TEX) reported $1.23 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 4.9%. EPS of $0.83 for the same period compares to $1.60 a year ago.The reported revenue represents a surprise of +0.64% over the Zacks Consensus Estimate of $1.22 billion. With the consensus EPS estimate being $0.49, the EPS surprise was +69.39%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectat ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201%20Financial%20Statements) For the first quarter ended March 31, 2025, Terex reported net sales of $1.23 billion, a decrease from $1.29 billion in the prior-year period, with net income declining to $21 million from $109 million and total assets increasing to $5.84 billion, reflecting the impact of the recent ESG acquisition Condensed Consolidated Statement of Comprehensive Income (Loss) | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net sales** | $1,229 million | $1,292 million | | **Gross profit** | $230 million | $297 million | | **Operating profit** | $69 million | $158 million | | **Net income (loss)** | $21 million | $109 million | | **Diluted EPS** | $0.31 | $1.60 | Condensed Consolidated Balance Sheet Highlights | Indicator | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $2,436 million | $2,320 million | | **Total assets** | $5,840 million | $5,730 million | | **Long-term debt, less current portion** | $2,582 million | $2,580 million | | **Total liabilities** | $3,996 million | $3,898 million | | **Total stockholders' equity** | $1,844 million | $1,832 million | Condensed Consolidated Statement of Cash Flows | Indicator | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | ($21 million) | ($34 million) | | **Net cash provided by (used in) investing activities** | ($26 million) | ($36 million) | | **Net cash provided by (used in) financing activities** | ($50 million) | $71 million | | **Net Increase (Decrease) in Cash and Cash Equivalents** | ($90 million) | ($6 million) | [Note B – Business Segment Information](index=11&type=section&id=Note%20B%20%E2%80%93%20BUSINESS%20SEGMENT%20INFORMATION) Effective January 1, 2025, Terex realigned its segments into Materials Processing, Aerials, and Environmental Solutions, with North America comprising 73% of total sales - Effective January 1, 2025, the company realigned its business into three reportable segments: **Materials Processing (MP)**, **Aerials**, and **Environmental Solutions (ES)**, with the ES segment now including the aggregated Environmental Solutions Group (ESG) and Utilities operating segments[39](index=39&type=chunk) Segment Performance (Q1 2025 vs Q1 2024) | Segment | Net Sales Q1 2025 | Operating Profit Q1 2025 | Net Sales Q1 2024 | Operating Profit Q1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Materials Processing (MP)** | $382M | $36M | $520M | $72M | | **Aerials** | $450M | $2M | $623M | $92M | | **Environmental Solutions (ES)** | $399M | $56M | $151M | $15M | Net Sales by Region (Q1 2025) | Region | Net Sales (in millions) | | :--- | :--- | | North America | $898 | | Western Europe | $162 | | Asia-Pacific | $102 | | Rest of World | $67 | [Note D – Acquisitions](index=16&type=section&id=Note%20D%20%E2%80%93%20ACQUISITIONS) Terex acquired the Environmental Solutions Group (ESG) for $2.01 billion in cash, allocating $792 million to goodwill and $1.114 billion to identifiable intangible assets - The company acquired the Environmental Solutions Group (ESG) from Dover Corporation on October 8, 2024, for a purchase price of **$2.01 billion in cash**[52](index=52&type=chunk) - The goodwill of **$792 million** resulting from the acquisition was assigned to the ES segment and is attributed to assembled workforce and expected synergies[58](index=58&type=chunk) Preliminary Fair Value of Net Assets Acquired (ESG) | Assets/Liabilities | Fair Value (in millions) | | :--- | :--- | | **Goodwill** | $792 | | **Identified intangibles subject to amortization** | $1,114 | | **Total assets acquired** | $2,248 | | **Total liabilities assumed** | $248 | | **Net assets acquired** | $2,000 | [Note J – Long-Term Obligations](index=22&type=section&id=Note%20J%20%E2%80%93%20LONG-TERM%20OBLIGATIONS) To finance the ESG acquisition, Terex secured new credit facilities and issued senior notes, bringing total long-term debt to $2.58 billion as of March 31, 2025 - On October 8, 2024, the company amended its credit agreement, increasing the revolving credit facility to **$800 million** (maturing 2029) and adding a new **$1.25 billion term loan facility** (maturing 2031)[79](index=79&type=chunk) - The company issued **$750 million in 6.25% Senior Notes due 2032** to help fund the ESG acquisition[86](index=86&type=chunk) Fair Value of Debt (as of March 31, 2025) | Debt Instrument | Book Value | Fair Value | | :--- | :--- | :--- | | 5% Notes | $600M | $572M | | 6.25% Notes | $750M | $728M | | New Term Facility (net) | $1,244M | $1,244M | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2025 results exceeded expectations despite a 4.9% sales decline, supported by the ESG acquisition and a $2.6 billion backlog, leading the company to maintain its full-year outlook - Q1 net sales of **$1.2 billion were down 4.9% YoY**, as a 25% decline in organic business sales was partially offset by the addition of the ESG business[116](index=116&type=chunk) - The company's backlog stood at **$2.6 billion**, which supports the full-year outlook[116](index=116&type=chunk) - The full-year 2025 outlook is maintained, with expected net sales of **$5.3 to $5.5 billion** and EPS between **$4.70 and $5.10**[123](index=123&type=chunk) - Return on Invested Capital (ROIC) was **15.0%** as of March 31, 2025[126](index=126&type=chunk)[128](index=128&type=chunk) [Results of Operations](index=33&type=section&id=RESULTS%20OF%20OPERATIONS) Consolidated operating profit fell 56.3% to $69 million, as sharp declines in the MP and Aerials segments were partially offset by a 273.3% profit surge in Environmental Solutions - The decrease in MP operating profit was due to lower sales volume, unfavorable mix, and higher severance costs[136](index=136&type=chunk) - The sharp decline in Aerials operating profit was caused by lower sales volume, unfavorable absorption from lower production, and a one-time litigation charge[138](index=138&type=chunk) Segment Operating Profit Changes (Q1 2025 vs Q1 2024) | Segment | Operating Profit Q1 2025 | Operating Profit Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Materials Processing** | $36M | $72M | (50.0)% | | **Aerials** | $2M | $92M | (97.8)% | | **Environmental Solutions** | $56M | $15M | 273.3% | [Liquidity and Capital Resources](index=35&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintained total liquidity of $1.1 billion and experienced a free cash flow use of $55 million, while returning capital through share repurchases and dividends - Total liquidity was approximately **$1,098 million** at March 31, 2025, consisting of $298 million in cash and $800 million available under the revolving credit facility[146](index=146&type=chunk) - During Q1 2025, the company repurchased **798,723 shares for $33 million** and paid a dividend of **$0.17 per share**[102](index=102&type=chunk)[103](index=103&type=chunk)[153](index=153&type=chunk) Free Cash Flow (Q1 2025) | Item | Amount (in millions) | | :--- | :--- | | Net cash used in operating activities | $(21) | | Capital expenditures, net | $(34) | | **Free cash flow (use)** | **$(55)** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign exchange, interest rates, and commodities, with a 10% currency fluctuation estimated to impact operating income by $4 million - A 10% strengthening or weakening of the U.S. dollar would have had an approximate **$4 million impact on operating income** for Q1 2025[168](index=168&type=chunk) - As of March 31, 2025, **48% of the company's debt was floating rate debt**, though a 10% rate increase was not deemed to have a material impact on interest expense[169](index=169&type=chunk)[170](index=170&type=chunk) - The company faces commodity risks, particularly from **steel price increases and tariffs** on imported components, which it mitigates through global sourcing and hedging[171](index=171&type=chunk)[173](index=173&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of March 31, 2025, with no material changes during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[174](index=174&type=chunk) - **No changes occurred** during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[175](index=175&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201%20Legal%20Proceedings) The company is involved in various routine legal proceedings, which are not expected to have a material adverse effect on its financial statements - Terex is involved in various legal proceedings (product liability, employment, commercial, etc) that have arisen in the normal course of operations[178](index=178&type=chunk) - The company believes the outcome of such matters **will not have a material adverse effect** on its financial statements[178](index=178&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A%20Risk%20Factors) Updated risk factors highlight potential adverse effects from international tariffs, economic sensitivity, and geopolitical instability, including trade conflicts involving Chinese imports - The risk factor concerning the imposition of new, postponed, or increased international tariffs was updated, noting that such tariffs could **materially and adversely affect business and results**[180](index=180&type=chunk)[181](index=181&type=chunk) - Demand is sensitive to economic conditions, government spending, and cyclical markets, with recent channel adjustments reflecting **macro uncertainty and high interest rates**[183](index=183&type=chunk)[185](index=185&type=chunk) - The company faces risks from operating a multinational business, including geopolitical instability, trade protection measures, and **anti-dumping/countervailing duty investigations** against Chinese competitors[186](index=186&type=chunk)[188](index=188&type=chunk)[190](index=190&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, Terex repurchased 758,843 shares for $31.7 million, leaving approximately $54 million available for future repurchases under its authorized programs - As of the end of the quarter, approximately **$54 million remained available for repurchase** under the company's authorized plans[192](index=192&type=chunk) Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **Jan 2025** | 150,825 | $44.91 | | **Feb 2025** | 206,293 | $43.84 | | **Mar 2025** | 408,057 | $39.58 | | **Total** | **765,175** | **$41.78** |

Terex (TEX) Q1 2025 Earnings Call May 02, 2025 08:00 AM ET Company Participants Derek Everitt - Vice President, Investor RelationsSimon A. Meester - President & CEOJennifer Kong-Picarello - SVP & CFOJerry Revich - Senior Investment Leader & Head of US Machinery, Infrastructure, Sustainable Tech franchiseJamie Cook - Managing Director - Equity ResearchDavid Raso - Senior Managing Director & PartnerTami Zakaria - Executive DirectorAngel Castillo - Executive Director Conference Call Participants Mircea Dobre - ...

Terex (TEX) Q1 2025 Earnings Call May 02, 2025 08:00 AM ET Company Participants Derek Everitt - Vice President, Investor RelationsSimon A. Meester - President & CEOJennifer Kong-Picarello - SVP & CFOJerry Revich - Senior Investment Leader & Head of US Machinery, Infrastructure, Sustainable Tech franchiseJamie Cook - Managing Director - Equity ResearchDavid Raso - Senior Managing Director & PartnerTami Zakaria - Executive DirectorAngel Castillo - Executive Director Conference Call Participants Mircea Dobre - ...

Terex (TEX) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $1.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 69.39%. A quarter ago, it was expected that this machinery products maker would post earnings of $0.76 per share when it actually produced earnings of $0.77, delivering a surprise of 1.32%.Over the last four quarters, the com ...

Terex (TEX) Q1 2025 Earnings Call May 02, 2025 08:00 AM ET Speaker0 Greetings, and welcome to the Carex First Quarter twenty twenty five Results Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. And it is now my pleasure to introduce your host, Derek Everett, Vice President, Investor Relations. Please go ahead. Speaker1 Good morning and welcome to the Terex firs ...