特雷克斯专注于连接性产品，包括电线、电缆和连接器，其产品面向军事国防、医疗以及量子计算等多 个行业。 安费诺首席执行官亚当・诺维特表示："特雷克斯独特的高可靠性电缆组件产品组合，将与我们在国防 市场现有的产品形成高度互补。" 来源：环球市场播报 电子设备制造商安费诺公司周一表示，将以约 10 亿美元现金收购电缆组件公司特雷克斯（Trexon）， 旨在借助不断增长的国防开支，扩充其以军事为重点的产品组合。 就在几周前，生产电缆、传感器和天线的安费诺公司还达成了一项 105 亿美元的交易，收购康普公司的 连接性和电缆解决方案部门，以利用人工智能驱动应用和高速数据中心基础设施的激增需求。 安费诺预计将用手头现金为此次特雷克斯收购交易提供资金，该公司股价在盘前交易中小幅上涨。今年 以来，其股价已累计上涨逾 57%。 特雷克斯在美国和英国设有工厂，预计 2025 年销售额约为 2.9 亿美元，息税折旧摊销前利润 （EBITDA）利润率为 26%。 安费诺预计，此次收购将在交易完成后的第一年提升其每股收益。该交易可能于今年第四季度完成。 ...

Core Insights - Terex Corporation has completed a re-pricing of its term loan, which is expected to reduce cash interest costs by approximately $3 million annually [1] - The new term loan rate is set at S+175bps, improving by 25bps from the previous rate [2] Company Overview - Terex Corporation is a global industrial equipment manufacturer specializing in materials processing machinery, waste and recycling solutions, mobile elevating work platforms (MEWPs), and equipment for the electric utility industry [2] - The company designs, builds, and supports products used across various sectors including maintenance, manufacturing, energy, minerals and materials management, construction, waste and recycling, and the entertainment industry [2] - Terex provides lifecycle support through a global parts and services organization and offers digital solutions to maximize customer investment returns [2] - The company focuses on environmentally friendly products, including electric and hybrid offerings that provide quiet and emission-free performance, as well as products that support renewable energy and aid in waste recovery [2] - Terex products are manufactured in North America, Europe, and Asia Pacific, and are sold worldwide [2]

Terex (TEX 0.55%), a global manufacturer of lifting and material processing products, reported Q2 2025 earnings on July 31, 2025. The headline news: Earnings per share (EPS) reached $1.49 (Non-GAAP), surpassing analyst estimates of $1.40 by 6.4%. Revenue (GAAP) rose to $1.50 billion, topping the consensus estimate of $1.44 billion and growing 7.6% from Q2 2024. Performance was strong in the Environmental Solutions segment, while Aerials and Materials Processing showed notable year-over-year declines. Manage ...

Investment Rating - The industry investment rating is "Positive" and maintained [10] Core Viewpoints - The overseas aerial work platform industry continues to show positive growth, with equipment rental income maintaining year-on-year growth in Q2 2025. The largest rental company, United Rentals, expects capital expenditure to remain at historical highs for the entire year of 2025 [2][6] - Leading manufacturers have seen an increase in new orders year-on-year in Q2 2025, with JLG's new orders returning to historical median levels, indicating stabilization in order volumes [2][8] Summary by Sections Overseas Rental Companies - United Rentals reported Q2 2025 equipment rental income of $3.415 billion, a year-on-year increase of 6.2%. The capital expenditure for Q2 2025 was $1.460 billion, up 7.7% year-on-year, with a total expected capital expenditure for 2025 projected to be between $3.65 billion and $3.95 billion, reflecting a slight year-on-year increase of 1.2% [6][19][25] - Sunbelt's Q1 2025 revenue was $2.308 billion, down 3.7% year-on-year, with capital expenditure of $1.808 billion, a decrease of 47% year-on-year. The company has increased its rental outlets in the U.S. [7][31][33] Overseas Equipment Manufacturers - Terex, under the Genie brand, reported Q2 2025 revenue of $607 million, down 17.1% year-on-year, but new orders increased by 70% year-on-year to $310 million. The backlog of orders was $714 million, down 36% year-on-year [8][41] - Oshkosh, which owns the JLG brand, reported Q2 2025 revenue of $638 million, a decline of 5.6% year-on-year, while new orders increased by 45% year-on-year to $640 million. The backlog of orders was $1.189 billion, down 64% year-on-year [8][48]

[PART I FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1 Financial Statements](index=5&type=section&id=Item%201%20Financial%20Statements) The financial statements for the period ended June 30, 2025, reflect increased net sales but decreased net income and EPS year-over-year, with total assets and liabilities rising due to operations and the ESG acquisition Condensed Consolidated Statement of Comprehensive Income (Loss) Highlights | Metric | Q2 2025 (M) | Q2 2024 (M) | YoY Change | H1 2025 (M) | H1 2024 (M) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,487 | $1,382 | +7.6% | $2,716 | $2,674 | +1.6% | | **Gross Profit** | $291 | $329 | -11.6% | $521 | $626 | -16.8% | | **Operating Profit** | $129 | $193 | -33.2% | $198 | $351 | -43.6% | | **Net Income (Loss)** | $72 | $141 | -48.9% | $93 | $249 | -62.7% | | **Diluted EPS** | $1.09 | $2.08 | -47.6% | $1.40 | $3.68 | -62.0% | Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 (M) | Dec 31, 2024 (M) | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $2,684 | $2,320 | +$364 | | **Total Assets** | $6,152 | $5,730 | +$422 | | **Total Current Liabilities** | $1,293 | $1,073 | +$220 | | **Long-term Debt** | $2,583 | $2,580 | +$3 | | **Total Liabilities** | $4,187 | $3,898 | +$289 | | **Total Stockholders' Equity** | $1,965 | $1,832 | +$133 | Condensed Consolidated Statement of Cash Flows Highlights (Six Months Ended June 30) | Metric | 2025 (M) | 2024 (M) | Change | | :--- | :--- | :--- | :--- | | **Net cash provided by operating activities** | $81 | $33 | +$48 | | **Net cash used in investing activities** | ($38) | ($52) | +$14 | | **Net cash used in financing activities** | ($84) | ($23) | -$61 | | **Net (Decrease) in Cash** | ($14) | ($52) | +$38 | [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, with the ES segment showing substantial growth from the ESG acquisition, offsetting sales declines in Aerials and MP segments - Effective January 1, 2025, the company realigned its business into **three reportable segments**: (i) **Aerials**, (ii) **Materials Processing ("MP")**, and (iii) **Environmental Solutions ("ES")**[38](index=38&type=chunk) Net Sales by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Aerials** | $607 | $732 | -17.1% | $1,057 | $1,355 | -22.0% | | **MP** | $454 | $499 | -9.0% | $836 | $1,019 | -18.0% | | **ES** | $430 | $152 | +182.9% | $829 | $303 | +173.6% | Operating Profit by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Aerials** | $46 | $115 | -60.0% | $49 | $207 | -76.3% | | **MP** | $49 | $77 | -36.4% | $85 | $149 | -43.0% | | **ES** | $61 | $19 | +221.1% | $117 | $34 | +244.1% | [Note D – Acquisitions](index=18&type=section&id=Note%20D%20%E2%80%93%20ACQUISITIONS) On October 8, 2024, Terex acquired Environmental Solutions Group (ESG) for **$2,010 million** in cash, financed by senior notes and a new term loan, with **$797 million** allocated to goodwill and **$1,114 million** to identifiable intangible assets - The company acquired Environmental Solutions Group (ESG) from Dover Corporation on October 8, 2024, for a cash purchase price of **$2,010 million**[54](index=54&type=chunk) Preliminary Fair Value of ESG Net Assets Acquired (in millions) | Assets/Liabilities | Fair Value | | :--- | :--- | | **Total assets acquired** | $2,253 | | Goodwill | $797 | | Identified intangibles subject to amortization | $1,114 | | **Total liabilities assumed** | $253 | | **Net assets acquired** | $2,000 | - Goodwill of **$797 million**, assigned to the ES segment, consists of intangible assets that do not qualify for separate recognition, such as assembled workforce and expected synergies[60](index=60&type=chunk) [Note J – Long-Term Obligations](index=25&type=section&id=Note%20J%20%E2%80%93%20LONG-TERM%20OBLIGATIONS) To finance the ESG acquisition, Terex increased its revolving credit facility to **$800 million** and added a **$1,250 million** term loan, also issuing **$750 million** in senior notes, with total long-term debt at **$2,583 million** as of June 30, 2025 - On October 8, 2024, the company amended its credit agreement, increasing the revolving credit facility to **$800 million** (expiring 2029) and adding a new **$1,250 million** term loan facility (maturing 2031)[81](index=81&type=chunk) - On October 8, 2024, the company issued **$750 million** of 6.25% Senior Notes due 2032 to help fund the ESG acquisition[87](index=87&type=chunk) Fair Value of Debt as of June 30, 2025 (in millions) | Debt Instrument | Book Value | Fair Value | | :--- | :--- | :--- | | 5% Notes | $600 | $583 | | 6.25% Notes | $750 | $750 | | New Term Facility (net of discount) | $1,241 | $1,247 | [Note L – Stockholders’ Equity](index=28&type=section&id=Note%20L%20%E2%80%93%20STOCKHOLDERS%E2%80%99%20EQUITY) In the first half of 2025, Terex repurchased **1,360,706** shares for **$53 million** and declared **$0.17** per share dividends, with an additional **$150 million** authorized for future repurchases Share Repurchases (Six Months Ended June 30) | Year | Total Shares Repurchased | Amount (in millions) | | :--- | :--- | :--- | | **2025** | 1,360,706 | $53 | | **2024** | 345,274 | $20 | - The Board declared dividends of **$0.17 per share** for Q1 and Q2 2025. A further dividend of **$0.17 per share** was declared in July 2025[103](index=103&type=chunk) - In July 2025, the Board authorized an additional repurchase of up to **$150 million** of the Company's outstanding shares of common stock[103](index=103&type=chunk) [Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported Q2 2025 net sales growth of **8%** to **$1.5 billion** driven by the ESG acquisition, offsetting legacy sales decline, while operating margin decreased to **8.7%** due to lower volumes and unfavorable mix, with the full-year outlook maintained - Q2 2025 net sales grew **8%** year-over-year to **$1.5 billion**, while legacy sales (excluding ESG) declined by **12%**[117](index=117&type=chunk) - Operating margin for Q2 2025 was **8.7%**, a decrease of **530 basis points** year-over-year, consistent with planned sequential improvement[117](index=117&type=chunk) - The company maintained its full-year 2025 outlook, expecting net sales of **$5.3 to $5.5 billion** and earnings per share between **$4.70 and $5.10**[125](index=125&type=chunk) - The acquisition of ESG has significantly expanded exposure to the waste and recycling end market, which now represents approximately **30%** of global revenue[116](index=116&type=chunk) [Results of Operations](index=35&type=section&id=RESULTS%20OF%20OPERATIONS) Q2 2025 consolidated net sales increased **7.6%** to **$1.487 billion** due to the ESG acquisition, offsetting declines in Aerials and MP segments, while gross profit fell **11.6%** and ES segment sales surged **182.9%** Q2 2025 vs Q2 2024 Segment Performance (in millions) | Segment | Net Sales 2025 | Net Sales 2024 | % Change | Operating Profit 2025 | Operating Profit 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Aerials** | $607 | $732 | (17.1)% | $46 | $115 | (60.0)% | | **Materials Processing** | $454 | $499 | (9.0)% | $49 | $77 | (36.4)% | | **Environmental Solutions** | $430 | $152 | 182.9% | $61 | $19 | 221.1% | - Aerials' performance was impacted by lower end-market demand, unfavorable mix, and tariffs, as sales to independent rental customers declined more than sales to national customers[138](index=138&type=chunk)[139](index=139&type=chunk) - The Environmental Solutions segment's strong growth was primarily due to sales from the newly acquired ESG business and strong performance in Terex Utilities[142](index=142&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) As of June 30, 2025, Terex had total liquidity of approximately **$1.174 billion**, with **$81 million** cash provided by operations and **$23 million** in free cash flow for H1 2025, and no significant debt maturities until 2029 - Total liquidity was approximately **$1.174 billion** at June 30, 2025, with no significant debt maturities until 2029[166](index=166&type=chunk)[167](index=167&type=chunk) Free Cash Flow (in millions) | Metric | H1 2025 | | :--- | :--- | | Net cash provided by operating activities | $81 | | Capital expenditures, net | ($58) | | **Free cash flow** | **$23** | - Working capital as a percentage of trailing three-month annualized net sales was **22.8%** at June 30, 2025[172](index=172&type=chunk) [Item 3 Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Terex is exposed to market risks from foreign exchange rates, interest rates, and commodity prices, with a **10%** change in FX rates impacting H1 2025 operating income by approximately **$10 million**, and **48%** of debt at floating rates as of June 30, 2025 - A **10%** strengthening or weakening of the U.S. dollar would have had an approximate **$10 million** impact on operating income for the six months ended June 30, 2025[189](index=189&type=chunk) - As of June 30, 2025, **48%** of the company's debt was floating rate, with a total weighted average interest rate of **5.59%**[190](index=190&type=chunk) - The company faces risks from inflationary pressure on components and increased tariffs on steel and other foreign goods, which it actively mitigates through global sourcing and other strategies[194](index=194&type=chunk) [Item 4 Controls and Procedures](index=45&type=section&id=Item%204%20Controls%20and%20Procedures) As of June 30, 2025, the company's CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[195](index=195&type=chunk) - No material changes to the internal control over financial reporting occurred during the quarter ended June 30, 2025[196](index=196&type=chunk) [PART II OTHER INFORMATION](index=46&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1 Legal Proceedings](index=46&type=section&id=Item%201%20Legal%20Proceedings) The company is involved in various legal proceedings arising from normal business operations, with management believing the outcomes will not materially affect consolidated financial statements - Terex is involved in various legal proceedings, including product liability, commercial, and intellectual property litigation, which have arisen in the normal course of operations[199](index=199&type=chunk) [Item 1A Risk Factors](index=46&type=section&id=Item%201A%20Risk%20Factors) The company updated its risk factors, highlighting potential material adverse effects from increased international tariffs, sensitivity to general economic conditions, and challenges of operating a multinational business - Rising international tariffs on goods from China and other regions could materially increase costs and adversely affect business results if they cannot be recovered from customers or mitigated through sourcing strategies[202](index=202&type=chunk)[203](index=203&type=chunk) - Demand for products is sensitive to economic cycles, interest rates, and government spending. Geopolitical instability, inflation, and high interest rates have increased economic uncertainty[204](index=204&type=chunk) - Operating a multinational business exposes the company to risks including political instability, currency controls, changes in tax laws, and trade protection measures[207](index=207&type=chunk)[210](index=210&type=chunk) [Item 2 Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, Terex repurchased **652,984** shares at an average price of **$35.59** per share, with approximately **$33 million** remaining available for repurchase under authorized plans Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | **April 2025** | 622,100 | $35.07 | | **May 2025** | 26,280 | $46.03 | | **June 2025** | 4,604 | $45.85 | | **Total** | **652,984** | **$35.59** | - As of the end of Q2 2025, approximately **$33 million** remained available for share repurchases under the authorized programs[214](index=214&type=chunk)

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $1.49 on sales of $1.5 billion, with an operating margin of 11% [6][23] - Free cash flow reached $78 million, a significant increase compared to the previous year, representing a cash conversion of 108% [7][26] - The effective tax rate for the second quarter was 18.3%, about 170 basis points better than planned [25] Business Line Data and Key Metrics Changes - Aerials segment sales were $607 million, with an operating margin improvement of 500 basis points sequentially, but about 200 basis points lower than expected due to customer mix [26][27] - Materials Processing (MP) sales were $434 million, 9% lower than last year, with an operating margin of 12.7%, showing a sequential improvement from 10% in Q1 [27][29] - Environmental Solutions (ES) generated $430 million in sales, with a 12.9% year-over-year growth and a 19.1% operating margin, reflecting strong operational execution [30] Market Data and Key Metrics Changes - Waste and recycling now represents approximately 30% of global revenue, characterized by low cyclicality and steady growth [16] - The company noted a two-speed profile in U.S. construction, with strength in large projects and infrastructure, while local private projects remain soft [17] - European markets are experiencing a weak economic environment in the near term, but there are encouraging signs for infrastructure and industrial spending growth in the medium to long term [17] Company Strategy and Development Direction - The company is focused on leveraging synergies across its portfolio, particularly following the ESG acquisition, and is ahead of initial synergy targets [19][21] - The company plans to maintain its full-year EPS outlook of $4.7 to $5.1, expecting stronger performance in Environmental Solutions in the second half [7][35] - The company is also looking to invest in organic growth while returning capital to shareholders, with a new $150 million share buyback program announced [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by high interest rates and tariff-related uncertainties impacting capital decisions [15] - The company expects to see a significant increase in free cash flow compared to 2024, anticipating between $300 million and $350 million in 2025 [35] - Management expressed confidence in the company's ability to navigate the current dynamic environment and deliver long-term value to shareholders [38] Other Important Information - The company is experiencing direct and indirect tariff-related inflation on materials, estimating a net impact of approximately €0.50 for the full year [13] - The company has a strong liquidity position with $1.2 billion available, and plans to deleverage in the second half of the year [31] Q&A Session Summary Question: What is driving the strong ES margins? - Management attributed the strong ES margins to operational efficiencies, improved execution in utilities, and favorable customer and product mix [42][43] Question: What drove the $20 million adjustment in EBITDA guidance? - The adjustment was driven by stronger outlook in ES, offset by unfavorable mix in Aerials and higher tariffs [50][51] Question: How do you view the margin outlook for Aerials in the second half? - Margins are expected to decline in the second half due to tariffs, lower sequential volume, and unfavorable customer mix [58] Question: What is the outlook for replacement demand? - Normal discussions on replacement demand are ongoing, with some signs of fleets aging in certain segments [71] Question: How are tariffs impacting the cost profile? - The company does not expect material impact from steel inflation due to hedging and local sourcing [108] Question: What is the outlook for digital revenue streams? - The company is expanding its Third Eye technology and exploring additional digital revenue opportunities [121]

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $1.49 on sales of $1.5 billion, with an operating margin of 11% [5][20] - Free cash flow reached $78 million, a significant increase from the previous year, representing a cash conversion of 108% [6][23] - The effective tax rate for the quarter was 18.3%, about 170 basis points better than planned due to favorable discrete items [21][22] - EBITDA was $182 million, up 12.2% of sales [22] Business Line Data and Key Metrics Changes - Aerials segment sales were $607 million, with an operating margin improvement of 500 basis points sequentially, but about 200 basis points lower than expected due to customer mix [23][24] - Materials Processing (MP) sales were $434 million, down 9% year-over-year, with an operating margin of 12.7%, showing a sequential improvement from 10% in Q1 [24][25] - Environmental Solutions (ES) generated $430 million in sales, with a 12.9% year-over-year growth and a 19.1% operating margin, reflecting strong performance [26] Market Data and Key Metrics Changes - Waste and recycling now represents approximately 30% of global revenue, characterized by low cyclicality and steady growth [14] - Utilities account for about 10% of revenue, with growth driven by the need to expand the power grid [14] - General construction has decreased to less than one-third of total markets, with strength in large projects and infrastructure, while local private projects remain soft [15] Company Strategy and Development Direction - The company is focused on leveraging synergies across its portfolio, particularly following the ESG acquisition, and is ahead of initial synergy targets [16][19] - The company plans to maintain its full-year EPS outlook of $4.7 to $5.1, expecting stronger performance in Environmental Solutions in the second half [6][30] - The company is exploring digital revenue streams, particularly through the Third Eye platform, which enhances operational efficiency and safety [17][120] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic factors, including high interest rates and tariff-related uncertainties, continue to impact capital decisions [13][15] - The company expects a significant increase in free cash flow compared to 2024, anticipating between $300 million and $350 million in 2025 [31] - Management expressed confidence in the resilience of its diversified end markets, particularly in waste and recycling, utilities, and infrastructure [14][15] Other Important Information - The company ended the second quarter with $1.2 billion in liquidity and plans to deleverage in the second half of the year [27] - A new $150 million share buyback program was authorized, with $33 million remaining from the previous authorization [28] Q&A Session Summary Question: What is driving the strong ES margins? - Management attributed the strong ES margins to operational efficiencies, better execution in utilities, and favorable customer and product mix, although the favorable mix is not expected to recur in the second half [39][40][42] Question: What drove the $20 million adjustment in EBITDA guidance? - The adjustment was driven by stronger performance in ES, offset by unfavorable mix in Aerials and higher tariffs [47][49] Question: How do you view the margin outlook for Aerials? - Management expects Aerials' operating margin to be mid-single digits in Q3, driven by tariffs and unfavorable customer mix [55][56] Question: What is the impact of tariffs on the cost profile? - The company does not expect material impact from steel inflation due to hedging and local sourcing, but tariffs are included in the $0.50 guidance for the year [106][108] Question: How is the company addressing customer caution in the market? - Management noted that larger customers are maintaining their cadence for negotiations, while smaller customers remain cautious due to economic uncertainty [64][94]

Company Performance - Terex reported quarterly earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.44 per share, but down from $2.16 per share a year ago, representing an earnings surprise of +3.47% [1] - The company posted revenues of $1.49 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.23% and up from $1.38 billion year-over-year [2] - Over the last four quarters, Terex has consistently surpassed consensus EPS estimates and revenue estimates [2] Future Outlook - The sustainability of Terex's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.43 on revenues of $1.4 billion, and for the current fiscal year, it is $4.72 on revenues of $5.37 billion [7] - The estimate revisions trend for Terex was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Manufacturing - Construction and Mining industry, to which Terex belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Terex's performance [5]

Q2 2025 Earnings Conference Call July 31, 2025 Forward Looking Statements Certain information in this presentation includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act") and the Private Securities Litigation Reform Act of 1995) regarding future events or our future financial performance that involve certain contingencies and uncertainties, including those discussed in our Annual Report on F ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) Terex reported **Q2 2025 sales of $1.5 billion**, up **7.6%** year-over-year, with adjusted EPS at **$1.49** Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1.5B | $1.38B | +7.6% | | Operating Profit (GAAP) | $129M | $193M | -33.2% | | Operating Margin (GAAP) | 8.7% | 14.0% | -530 bps | | Adjusted Operating Profit | $164M | $195M | -15.9% | | Adjusted Operating Margin | 11.0% | 14.1% | -310 bps | | EPS (GAAP) | $1.09 | $2.08 | -47.6% | | Adjusted EPS | $1.49 | $2.16 | -31.0% | - Bookings of **$1.1 billion** grew **19%** year-over-year on a pro forma basis, with a book-to-bill ratio of **73%**, consistent with seasonal patterns[6](index=6&type=chunk) - Excluding the contribution from the new Environmental Solutions Group (ESG), legacy revenue declined by **12%** year-over-year, driven by channel adjustments and backlog conversion timing[6](index=6&type=chunk) - The Board of Directors authorized a new **$150 million** share repurchase program, signaling confidence in the company's long-term strategy[5](index=5&type=chunk)[11](index=11&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strong ES performance offsetting Aerials headwinds, while maintaining the full-year EPS outlook - CEO Simon Meester emphasized that the Environmental Solutions segment's strong sales and margin performance more than offset headwinds in Aerials[3](index=3&type=chunk) - CFO Jennifer Kong-Picarello highlighted strong free cash flow generation of **$78 million**, achieving a **108%** cash conversion rate in Q2[12](index=12&type=chunk)[13](index=13&type=chunk) - The healthy backlog and **19%** year-over-year pro forma booking growth support the sales outlook for the second half of the year[13](index=13&type=chunk) - The company is maintaining its full-year EPS outlook of **$4.70 to $5.10**, assuming tariffs remain broadly at current rates[13](index=13&type=chunk) [Business Segment Review](index=2&type=section&id=Business%20Segment%20Review) [Aerials Segment](index=2&type=section&id=Aerials) Aerials segment **net sales declined 17.1% to $607 million**, with operating margin at **7.6%**, impacted by reduced rental capex Aerials Segment Q2 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $607M | $732M | -17.1% | | Operating Profit | $46M | $115M | -60.0% | | Operating Margin | 7.6% | 15.7% | -810 bps | | Adjusted Operating Profit | $49M | $115M | -57.4% | | Adjusted Operating Margin | 8.0% | 15.7% | -770 bps | - The sales decline was driven by rental customers deploying less capex and focusing on replacement requirements Sales to independent rental customers were down proportionately more than to national customers[12](index=12&type=chunk) [Materials Processing (MP) Segment](index=2&type=section&id=Materials%20Processing) MP segment **net sales declined 9.0% to $454 million**, with operating margin at **10.8%**, due to lower channel and end-market demand Materials Processing Segment Q2 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $454M | $499M | -9.0% | | Operating Profit | $49M | $77M | -36.4% | | Operating Margin | 10.8% | 15.4% | -460 bps | | Adjusted Operating Profit | $58M | $78M | -25.6% | | Adjusted Operating Margin | 12.7% | 15.6% | -290 bps | - The sales decline was attributed to lower channel requirements and end-market demand across most product lines and geographies[12](index=12&type=chunk) [Environmental Solutions (ES) Segment](index=2&type=section&id=Environmental%20Solutions) ES segment delivered strong results with **net sales of $430 million**, up **12.9%** pro forma, and an adjusted operating margin of **19.1%** Environmental Solutions Segment Q2 Performance | Metric | Q2 2025 | Q2 2024 (Pro Forma) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $430M | $381M (Est.) | +12.9% | | Operating Profit | $61M | $19M | +221.1% | | Operating Margin | 14.2% | 12.5% | +170 bps | | Adjusted Operating Profit | $82M | N/A | N/A | | Adjusted Operating Margin | 19.1% | 16.8% (Est.) | +230 bps | - Growth was driven by strong delivery of refuse collection vehicles (RCVs) and strong book-to-bill installs in Terex Utilities[12](index=12&type=chunk) [Financial Position and Capital Allocation](index=2&type=section&id=Financial%20Position%20and%20Capital%20Allocation) [Liquidity and Cash Flow](index=2&type=section&id=Strong%20Liquidity) Terex maintained **$1.2 billion** in liquidity and generated **$78 million** in free cash flow, achieving a **108%** cash conversion rate - Total liquidity was **$1.2 billion** as of June 30, 2025[12](index=12&type=chunk) Q2 Cash Flow Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Free Cash Flow | $78M | $43M | | Cash Conversion Rate | 108% | 30% | [Capital Allocation](index=2&type=section&id=Capital%20Allocation) Company deployed **$24 million** in capex, returned **$75 million** to shareholders, and authorized a new **$150 million** share repurchase program - A new share repurchase program of up to **$150 million** was authorized by the Board of Directors[11](index=11&type=chunk) - Year-to-date through June 30, 2025, Terex returned **$75 million** to shareholders via dividends and buybacks[12](index=12&type=chunk) - The company repurchased **1.4 million** shares at an average price of **$38.74** per share[12](index=12&type=chunk) [Full-Year 2025 Outlook](index=3&type=section&id=Full-Year%202025%20Outlook) [Full-Year 2025 Guidance](index=3&type=section&id=Full-Year%202025%20Guidance) Terex maintained its full-year 2025 guidance, projecting **net sales between $5.3 billion and $5.5 billion** and adjusted EPS of **$4.70 to $5.10** Full-Year 2025 Financial Outlook | Metric | 2025 Outlook | | :--- | :--- | | Net Sales | $5,300M - $5,500M | | Segment Operating Margin (Adjusted) | ~12% | | EBITDA (Adjusted) | ~$640M | | EPS (Adjusted) | $4.70 - $5.10 | | Free Cash Flow | $300M - $350M | | FCF Conversion | >120% | 2025 Segment Net Sales Outlook vs. 2024 Baseline | Segment | 2024 Baseline | 2025 Outlook | | :--- | :--- | :--- | | Aerials | $2,410M | Down low double-digits (LDD) | | Materials Processing | $1,902M | Down high single-digits (HSD) | | Environmental Solutions | $1,500M | Up low double-digits (LDD) | [Financial Statements](index=6&type=section&id=Financial%20Statements) [Condensed Consolidated Statement of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations) Q2 2025 net sales increased to **$1.487 billion**, but operating profit declined to **$129 million**, resulting in diluted EPS of **$1.09** Q2 Statement of Operations (in millions, except EPS) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net sales | $1,487 | $1,382 | | Gross profit | $291 | $329 | | Operating profit | $129 | $193 | | Net income | $72 | $141 | | Diluted EPS | $1.09 | $2.08 | [Condensed Consolidated Balance Sheet](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets were **$6.152 billion**, total liabilities **$4.187 billion**, and stockholders' equity **$1.965 billion** Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $2,684 | $2,320 | | Total assets | $6,152 | $5,730 | | Total current liabilities | $1,293 | $1,073 | | Long-term debt | $2,583 | $2,580 | | Total liabilities | $4,187 | $3,898 | | Total stockholders' equity | $1,965 | $1,832 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operating activities for YTD Q2 2025 was **$81 million**, leading to a **$14 million** decrease in cash and equivalents Six-Month Cash Flow Summary (in millions) | Account | YTD Q2 2025 | YTD Q2 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $81 | $33 | | Net cash from investing activities | ($38) | ($52) | | Net cash from financing activities | ($84) | ($23) | | Net change in cash | ($14) | ($52) | | Cash at end of period | $374 | $319 | [Segment Results Disclosure](index=9&type=section&id=Segment%20Results%20Disclosure) Q2 2025 segment sales: Aerials **$607 million** (7.6% margin), MP **$454 million** (10.8% margin), and ES **$430 million** (14.2% margin) Q2 2025 Segment Performance (in millions) | Segment | Net Sales | % of Total | Operating Profit | Operating Margin | | :--- | :--- | :--- | :--- | :--- | | Aerials | $607 | 40.8% | $46 | 7.6% | | MP | $454 | 30.5% | $49 | 10.8% | | ES | $430 | 28.9% | $61 | 14.2% | | **Consolidated** | **$1,487** | **100%** | **$129** | **8.7%** | [Appendix: Non-GAAP Reconciliations](index=10&type=section&id=Appendix%3A%20Non-GAAP%20Reconciliations) [GAAP to Non-GAAP Reconciliation](index=11&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) Q2 2025 adjustments of **$35 million** increased operating profit from **$129 million** (GAAP) to **$164 million** (non-GAAP) and EPS to **$1.49** Q2 2025 GAAP to Non-GAAP Reconciliation Summary (in millions) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Operating Profit | $129 | $35 | $164 | | Operating Margin | 8.7% | | 11.0% | | Net Income | $72 | $26 | $98 | | EPS | $1.09 | $0.40 | $1.49 | [Segment Adjusted Operating Profit Reconciliation](index=13&type=section&id=Segment%20Adjusted%20Operating%20Profit%20Reconciliation) Q2 2025 segment adjustments led to adjusted operating margins of **8.0%** for Aerials, **12.7%** for MP, and **19.1%** for ES Q2 2025 Segment Operating Profit Reconciliation (in millions) | Segment | Operating Profit (GAAP) | Adjustments | Adjusted Operating Profit | | :--- | :--- | :--- | :--- | | Aerials | $46 | $3 | $49 | | MP | $49 | $9 | $58 | | ES | $61 | $21 | $82 | [Return on Invested Capital (ROIC)](index=14&type=section&id=Return%20on%20Invested%20Capital%20%28ROIC%29) Terex reported a Return on Invested Capital (ROIC) of **12.3%** as of June 30, 2025, reflecting effective capital utilization - The company's ROIC was **12.3%** as of June 30, 2025[44](index=44&type=chunk)[46](index=46&type=chunk) - ROIC is calculated using adjusted NOPAT of **$421 million** over the last four quarters and average invested capital of **$3.414 billion** over the last five quarters[46](index=46&type=chunk)