Q4 2024 Earnings Conference Call February 6, 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 o ...

Core Insights - Terex reported revenue of $1.24 billion for the quarter ended December 2024, reflecting a 1.5% increase year-over-year and a surprise of +0.63% over the Zacks Consensus Estimate of $1.23 billion [1] - The earnings per share (EPS) for the quarter was $0.77, down from $1.41 in the same quarter last year, with an EPS surprise of +1.32% compared to the consensus estimate of $0.76 [1] Financial Performance Metrics - Net sales for Aerial Work Platforms (AWP) were $573 million, exceeding the average estimate of $547.92 million, but showing a year-over-year decline of -13.2% [4] - Net sales for Materials Processing & Mining (MP) were $439 million, slightly below the average estimate of $450 million, representing a year-over-year decrease of -20.9% [4] - Net sales for Corporate and Other / Eliminations were reported at $1 million, significantly higher than the average estimate of $51.09 million, indicating a year-over-year change of +12400% [4] - Income from Operations for AWP was $18 million, compared to the average estimate of $20.54 million [4] - Income from Operations for Corporate and Other / Eliminations was -$24 million, worse than the average estimate of -$9.03 million [4] - Income from Operations for MP was $47 million, below the average estimate of $63.21 million [4] Stock Performance - Terex shares have returned +6.8% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Terex (TEX) reported quarterly earnings of $0.77 per share, exceeding the Zacks Consensus Estimate of $0.76 per share, but down from $1.41 per share a year ago, indicating a 45.4% year-over-year decline in earnings [1] Group 1: Earnings Performance - The quarterly earnings surprise was 1.32%, with a previous quarter surprise of 14.96% when actual earnings were $1.46 per share against an expectation of $1.27 [1][2] - Over the last four quarters, Terex has surpassed consensus EPS estimates four times [2] - The company posted revenues of $1.24 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.63%, and showing a slight increase from $1.22 billion year-over-year [2] Group 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] - Current consensus EPS estimate for the upcoming quarter is $1.22 on revenues of $1.36 billion, and for the current fiscal year, it is $5.23 on revenues of $5.43 billion [7] - The estimate revisions trend for Terex is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Group 3: Industry Context - The Manufacturing - Construction and Mining industry, to which Terex belongs, is currently in the bottom 10% of Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [5][8]

Core Insights - Terex Corporation reported its fourth quarter and full-year 2024 results, highlighting a strategic focus on resilience and growth opportunities despite industry challenges [1][2] - The company achieved adjusted earnings per share of $6.11 for the full year, marking the second highest in its history, driven by strong portfolio performance [2][4] - For 2025, Terex anticipates net sales between $5.3 billion and $5.5 billion, with earnings per share projected between $4.70 and $5.10 [2][10] Fourth Quarter Operational and Financial Highlights - Fourth quarter net sales reached $1.2 billion, a 2% increase from the same period in 2023, primarily due to the acquisition of Environmental Solutions Group (ESG) [8] - Income from operations for Q4 2024 was $53 million, or 4.3% of net sales, down from $116 million, or 9.5% of net sales, in Q4 2023 [8][22] - Adjusted income from operations for Q4 2024 was $97 million, or 7.8% of net sales, compared to $133 million, or 10.9% of net sales in the prior year [8][22] Full-Year 2024 Operational and Financial Highlights - Total net sales for 2024 were $5.1 billion, slightly down from $5.2 billion in 2023, attributed to industry-wide channel adjustments [8][22] - Full-year income from operations was $526 million, or 10.3% of net sales, compared to $637 million, or 12.4% in the previous year [8][22] - The effective tax rate for 2024 was 17.8%, up from 10.9% in 2023, which included a benefit from operations in Switzerland [8][22] Business Segment Review - Materials Processing segment reported net sales of $439 million in Q4 2024, down 20.9% year-over-year, with income from operations of $47 million [8][27] - Aerial Work Platforms segment had net sales of $573 million in Q4 2024, down 13.2% year-over-year, with income from operations of $18 million [8][27] - The Environmental Solutions Group contributed $228 million in net sales for Q4 2024, with an operating margin of 5.3% [8][27] 2025 Outlook - Terex expects 2025 net sales to be between $5.3 billion and $5.5 billion, with an operating margin of approximately 12% [10][11] - The company anticipates free cash flow of $300 to $350 million for 2025 [10][11] - Segment sales outlook includes low double-digit declines for Aerials and high single-digit declines for Materials Processing, while ESG is expected to grow in the mid single digits [10][11]

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 [3] - 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 [3] - Terex provides lifecycle support through a global parts and services organization and offers digital solutions to maximize customer investment returns [3] Environmental Initiatives - Certain Terex products and solutions are designed to reduce environmental impact, including electric and hybrid offerings that provide quiet and emission-free performance [3] - The company also offers products that support renewable energy and aid in the recovery of useful materials from various types of waste [3] Upcoming Financial Results - Terex Corporation will host a conference call to review its fourth quarter and year-end 2024 financial results on February 6, 2025, at 8:30 a.m. Eastern Time [1] - Financial results will be available on the company's investor relations website prior to the call [2] - Participants are encouraged to access the webcast 15 minutes before the start time, with a replay available afterward [2]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value ...

Shares of Terex Corporation (TEX) have lost 4% since it reported third-quarter 2024 results on Oct. 30, 2024, despite an earnings beat. Investors seem to be worried about the year-over-year declines in its top and bottom lines, reflecting lower end-market demand in Europe. TEX reported adjusted earnings per share of $1.46, which beat the Zacks Consensus Estimate of $1.27. The bottom line fell 17% from the prior-year quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Terex’s Reven ...

Have you assessed how the international operations of Terex (TEX) performed in the quarter ended September 2024? For this machinery products maker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must under ...

Terex (TEX) reported $1.21 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 6.1%. EPS of $1.46 for the same period compares to $1.75 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.14 billion, representing a surprise of +6.12%. The company delivered an EPS surprise of +14.96%, with the consensus EPS estimate being $1.27.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street e ...

Terex (TEX) came out with quarterly earnings of $1.46 per share, beating the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.75 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 14.96%. A quarter ago, it was expected that this machinery products maker would post earnings of $2.03 per share when it actually produced earnings of $2.16, delivering a surprise of 6.40%. Over the last four quarters, the co ...