Financial Performance - Q1 2025 sales reached $1.229 billion, a 4.9% decrease compared to $1.292 billion in Q1 2024[23] - Adjusted operating margin for Q1 2025 was 9.1%[12, 23] - Adjusted EPS for Q1 2025 was $0.83[12, 24] - The company is maintaining its 2025 FY EPS outlook of $4.70 - $5.10[13] Segment Performance - Aerials sales in Q1 2025 were $450 million, a 27.8% year-over-year decrease[28] with an operating margin of 3.0%[28] - MP (Material Processing) sales in Q1 2025 were $382 million, a 26.5% year-over-year decrease[32] with an operating margin of 10.0%[32] - ES (Environmental Solutions) sales in Q1 2025 were $399 million, a 10.5% year-over-year increase[35] with an operating margin of 19.4%[35] Strategic Initiatives and Outlook - The company's backlog stands at $2.6 billion[39] - The company anticipates net sales between $5.3 billion and $5.5 billion for 2025[44] - The company anticipates segment operating margin of approximately 12% for 2025[44]

Financial Performance - Terex reported Q1 2025 sales of $1.2 billion, with an operating margin of 5.6% and adjusted operating margin of 9.1%[5]. - The company achieved EPS of $0.31 and adjusted EPS of $0.83, compared to $1.60 and $1.74 in Q1 2024 respectively[6]. - Net sales for Q1 2025 were $1,229 million, a decrease of 4.9% compared to $1,292 million in Q1 2024[30]. - Gross profit for Q1 2025 was $230 million, representing a gross margin of 18.7%, down from 23.0% in Q1 2024[35]. - Operating profit decreased to $69 million in Q1 2025, with an operating margin of 5.6%, compared to $158 million and 12.2% in Q1 2024[30]. - Net income for Q1 2025 was $21 million, a significant decline from $109 million in Q1 2024, resulting in earnings per share of $0.32 compared to $1.62[30]. - Adjusted EBITDA for the three months ended March 31, 2025, was $128 million, with an adjusted EBITDA margin of 10.4%[40]. - The company's ROIC as of March 31, 2025, was 15.0%, indicating effective capital utilization[42]. - Operating profit as adjusted for the three months ended March 31, 2025, was $111 million, compared to $97 million in the previous quarter[44]. - The company reported an EBITDA margin of 8.7% for the three months ended March 31, 2025[40]. Sales and Bookings - Bookings increased by 5.3% sequentially to $1.5 billion, resulting in a book-to-bill ratio of 124%, led by Aerials at 144%[6]. - Net sales in the Aerials segment were $450 million, down 27.8% year-over-year, while Materials Processing saw net sales of $382 million, down 26.5%[11]. - Environmental Solutions Group contributed approximately one-third of Q1 sales, with net sales of $399 million, reflecting a 10.5% increase on a pro forma basis compared to Q1 2024[11]. - The Aerials segment saw net sales drop to $450 million in Q1 2025 from $623 million in Q1 2024, with an operating profit of only $2 million[30]. Financial Outlook - Terex maintains its full-year adjusted EPS outlook of $4.70 to $5.10 for 2025[5]. - The company expects full-year net sales between $5.3 billion and $5.5 billion, with an EBITDA of approximately $660 million[12]. - The company anticipates organic sales to decline by 8%-12% compared to 2024, with segment net sales outlooks indicating low to high single-digit changes across various segments[12]. - The company expects a free cash flow of $325 million for the year ending December 31, 2025, based on an outlook of $445 million in net cash provided by operating activities[34]. Liquidity and Capital Structure - As of March 31, 2025, Terex reported liquidity of $1.1 billion and returned $43 million to shareholders through dividends and share repurchases[11]. - Total assets increased to $5,840 million as of March 31, 2025, up from $5,730 million at the end of 2024[26]. - Cash and cash equivalents decreased to $298 million at the end of Q1 2025, down from $388 million at the beginning of the period[27]. - Total debt was $2,586 million as of March 31, 2025, with cash and cash equivalents of $298 million[44]. - Stockholders' equity as adjusted was $1,957 million as of March 31, 2025, compared to $1,908 million as of December 31, 2024[46]. Tax and Other Considerations - The effective tax rate for Q1 2025 was 20.3%, compared to 20.5% in Q1 2024[35]. - The annualized effective tax rate as adjusted for March 31, 2025, was 17.5%, up from 15.6% in the previous quarter[44]. - Terex is closely monitoring geopolitical and macroeconomic factors, including potential tariff impacts, while positioning itself as a more US-centric company[3]. Operational Strategy - The company plans to continue focusing on operational improvements and capital investments to drive future growth[42]. - The company reported a net cash used in operating activities of $21 million for Q1 2025, compared to $34 million used in Q1 2024[27].

Core Insights - Terex Corporation reported strong financial results for Q1 2025, exceeding initial expectations, primarily due to the performance of its newly acquired Environmental Solutions Group (ESG) [2][5][6] - The company anticipates a competitive position moving forward, with a focus on U.S. production to mitigate geopolitical risks [2][9] Financial Performance - Net sales for Q1 2025 were $1.229 billion, a decrease of 4.9% compared to Q1 2024 [6][29] - Adjusted EPS for Q1 2025 was $0.83, down from $1.74 in Q1 2024 [6][29] - Operating profit was $69 million, representing 5.6% of net sales, compared to $158 million or 12.2% in the prior year [6][29] Business Segment Performance - Environmental Solutions segment net sales reached $399 million, up 10.5% year-over-year, driven by strong demand for refuse collection vehicles [5][29] - Aerials segment net sales were $450 million, down 27.8% year-over-year, attributed to seasonal delivery patterns [6][29] - Materials Processing segment net sales were $382 million, down 26.5% year-over-year, reflecting lower channel requirements and end-market demand [6][29] Bookings and Outlook - Bookings for Q1 2025 were $1.5 billion, a sequential increase of 5.3%, with a book-to-bill ratio of 124% [6][29] - The company maintains its full-year adjusted EPS outlook of $4.70 to $5.10 for 2025 [10][11] Capital Allocation and Liquidity - As of March 31, 2025, Terex had liquidity of $1.1 billion, with $36 million deployed in capital expenditures during Q1 [14][29] - The company returned $43 million to shareholders through dividends and share repurchases in Q1 2025 [14][29]

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 supports renewable energy and aids 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 first quarter 2025 financial results on May 2, 2025, at 8:00 a.m. Eastern Time [1] - The financial results will be available on the company's investor relations website prior to the call [1]

Core Insights - Terex's international operations are crucial for assessing its financial strength and growth potential, given the interconnected nature of the global economy [2][3] - The company's total revenue for the recent quarter was $1.24 billion, reflecting a 1.5% increase year-over-year [4] International Revenue Breakdown - Western Europe generated $157 million, accounting for 12.65% of total revenue, which was a 32.19% miss against the consensus estimate of $231.54 million [5] - Asia-Pacific contributed $137 million, representing 11.04% of total revenue, falling short by 18.2% compared to the projected $167.48 million [6] Future Revenue Projections - Analysts project total revenue for the current fiscal quarter to reach $1.36 billion, a 5.1% increase from the same quarter last year, with Western Europe expected to contribute $257.14 million and Asia-Pacific $153.7 million [7] - For the full year, total revenue is anticipated to be $5.39 billion, also reflecting a 5.1% increase, with Western Europe and Asia-Pacific expected to contribute $987.49 million and $623.95 million, respectively [8] Market Context - The reliance on international markets presents both opportunities and challenges for Terex, necessitating close monitoring of revenue trends to accurately project future performance [9] - Financial analysts are increasingly focused on international developments and geopolitical factors that may influence earnings estimates for companies like Terex [10]

Financial Performance - Full-year 2024 net sales were $5.1 billion, slightly down from $5.2 billion in 2023, primarily due to industry-wide channel adjustments[9]. - Adjusted earnings per share (EPS) for full-year 2024 was $6.11, the second highest in Terex history, compared to $7.06 in the prior year[5][9]. - Fourth quarter 2024 net sales reached $1.2 billion, a 2% increase year-over-year, driven by the addition of Environmental Solutions Group (ESG)[6]. - Net sales for Q4 2024 were $1,241 million, a slight increase from $1,223 million in Q4 2023, while total net sales for the year were $5,127 million, down from $5,152 million in 2023[25]. - For FY 2024, net sales totaled $5,127 million, with a gross profit of $1,112 million, achieving a gross margin of 21.7%[38]. - Q4 2024 earnings per share (EPS) improved to $0.77, compared to a loss of $0.03 in Q4 2023[37]. - FY 2024 EPS was reported at $6.11, up from $4.96 in FY 2023[38]. Profitability and Margins - Adjusted operating margins for ESG in Q4 2024 were 21.9%, contributing significantly to overall performance[5][12]. - Gross profit for Q4 2024 was $197 million, compared to $263 million in Q4 2023, resulting in a gross margin decrease from 21.5% to 15.9%[25]. - Income from operations for Q4 2024 was $53 million, significantly lower than $116 million in Q4 2023, reflecting a decrease in operating margin from 9.5% to 4.3%[31]. - The company reported a net loss of $2 million in Q4 2024, contrasting with a net income of $127 million in Q4 2023, leading to a loss per share of $0.03 compared to earnings of $1.89 per share in the prior year[25]. - Q4 2024 operating income was $97 million, leading to an operating margin of 7.8%[37]. - FY 2024 operating income increased to $582 million, with an operating margin of 11.3%[38]. - Adjusted EBITDA for Q4 2024 was $114 million, with an adjusted EBITDA margin of 9.2%[45]. - Adjusted EBITDA for FY 2024 reached $642 million, with an adjusted EBITDA margin of 12.5%[45]. Cash Flow and Investments - Full-year 2024 free cash flow was $190 million, lower than the previous year due to reduced operating income and higher interest expenses[12]. - Capital expenditures for 2024 were $137 million, slightly higher than $127 million in 2023, indicating ongoing investment in operations[29]. - The company expects 2025 earnings per share to be impacted by potential future acquisitions and restructuring, with an outlook of $445 million in net cash provided by operating activities[35]. Debt and Equity - Long-term debt rose significantly to $2,580 million as of December 31, 2024, compared to $620 million in 2023, indicating increased leverage[26]. - Total debt as of December 31, 2024, was $2,584 million, with cash and cash equivalents of $388 million[48]. - Debt less cash and cash equivalents amounted to $2,196 million as of December 31, 2024[48]. - Stockholders' equity as adjusted was $1,918 million as of December 31, 2024, an increase from $1,682 million in December 2023[49]. Taxation - The effective tax rate for full-year 2024 was 17.8%, up from 10.9% in the prior year, reflecting changes in tax benefits[9]. - The effective tax rate as adjusted for Q4 2024 was 15.6%, consistent across the previous quarters[48]. - The company reported an effective tax rate of 15.6% for the full year 2024, down from 17.8% as reported[49]. Future Outlook - The company expects 2025 net sales between $5.3 billion and $5.5 billion, with EPS guidance of $4.70 to $5.10[3][13]. - Aerial Work Platforms segment net sales for 2025 are expected to decline in low double digits, while Environmental Solutions is projected to grow in mid single digits[13]. - The company plans to focus on deleveraging and investing in business growth while maintaining a flexible balance sheet in 2025[12]. - The company is facing challenges from increased international tariffs, economic conditions, and competitive pressures, which may affect future performance[23].

Company Segments - The company operates in three segments: Materials Processing (MP), Aerial Work Platforms (AWP), and Environmental Solutions Group (ESG) [10] - The MP segment includes products such as crushers, washing systems, and material handlers, serving construction, mining, and recycling industries [11] - The AWP segment offers aerial work platform equipment, enhancing safety and productivity for various construction and maintenance applications [14] - The ESG segment focuses on waste and recycling equipment, including refuse collection bodies and compaction systems, targeting the solid waste industry [16] Financial Performance and Strategy - The company aims for a net leverage target of 2.5x through the cycle, balancing growth investments and efficient capital return to stockholders [27] - The total backlog as of December 31, 2024, was $2,291 million, a decrease of $1,120 million from $3,411 million in 2023 [44] - The Materials Processing (MP) backlog decreased approximately 58% from $767 million in 2023 to $320 million in 2024 [47] - The Aerial Work Platforms (AWP) backlog decreased approximately 45% from $2,644 million in 2023 to $1,451 million in 2024 [48] - The Environmental Solutions Group (ESG) backlog was $520 million as of December 31, 2024 [49] - The company expects second half sales in 2025 to be higher than first half sales, with stronger demand anticipated in the second quarter due to seasonal project spending [69] Innovation and Product Development - The company emphasizes digital transformation and innovation to improve product offerings and operational efficiency [25] - The company is focusing on product innovation and has established robust product development pipelines to introduce new differentiated products in the coming years [56] - The company is developing alternative power solutions across its product range, including battery-electric and fuel-electric hybrid options, to reduce carbon footprints [55] - The company is actively investing in alternative energy solutions and developing products that meet increasingly stringent environmental regulations [66] Safety and Environmental Commitment - The company aims to achieve a lost time injury rate of 0.4 and a total recordable injury rate of 1.4 by the end of 2026, with current rates at 0.37 and 1.49 respectively [71] - The company is committed to reducing greenhouse gas emissions and has developed all-electric utility bucket trucks, which support electrification and sustainability goals [66] - The company maintains a commitment to safety and environmental stewardship, ensuring compliance with health, safety, and environmental laws [63] - The company is committed to complying with environmental laws and regulations, conducting environmental audits at least once every five years [64][68] Workforce and Culture - The company has approximately 11,400 team members, with 88% participating in a global engagement survey, indicating a strong focus on team member engagement [73] - The company has a robust talent review process and offers a wide range of training programs to support team member development [74] - The company emphasizes a culture of inclusion and diversity, aiming to create a supportive and non-discriminatory workplace [77] Legal and Compliance - The company is engaged in various legal proceedings regarding intellectual property rights but does not expect a material adverse effect on its business [62] - The company’s engineering teams are focused on delivering customer-responsive solutions and complying with evolving regulatory standards [54] Customer Focus - In 2024, the largest customer accounted for less than 6% of consolidated net sales, and the top ten customers collectively accounted for less than 29% [60] - The company operates under a best value strategy, focusing on improving customer return on invested capital (ROIC) through quality by design [59] - The company offers a range of services for its products, including inspections, maintenance, and training services [39][43]

Core Insights - Terex Corporation reported adjusted earnings per share of 77 cents, exceeding the Zacks Consensus Estimate of 76 cents, but a significant decline of 45% from the prior-year quarter due to lower volumes [1][2] - Revenues increased by 1.5% year over year to $1.24 billion, surpassing the Zacks Consensus Estimate of $1.23 billion, aided by the acquisition of Environmental Solutions Group (ESG) [3][15] - The company experienced margin contraction, with gross profit falling 11.5% to $236 million and operating profit plunging 54% to $53 million [5][6] Financial Performance - The cost of goods sold rose 8.7% year over year to $1.04 billion, leading to a decline in gross profit [5] - Adjusted operating profit was $97 million, down from $132.7 million in the previous year, with an adjusted operating margin of 7.8%, a contraction of 310 basis points [6] - Terex's adjusted earnings per share for 2024 declined 13.5% year over year to $6.11, beating the Zacks Consensus Estimate of $6.09 [13][14] Segment Performance - The Material Processing segment's revenues fell 21% year over year to $439 million, attributed to channel adjustments and weak end-market demand [7] - The Aerial Work Platforms segment generated revenues of $573 million, down 13.2% from the previous year, impacted by delivery schedule adjustments [9][10] - The ESG segment reported revenues of $228 million, with an operating profit of $12 million, both figures exceeding initial estimates [10] Cash Flow and Balance Sheet - As of December 31, 2024, Terex had cash and cash equivalents of $388 million, an increase from $371 million a year earlier [12] - The company generated $326 million in cash from operating activities in 2024, down from $459 million in the prior year [12] 2025 Outlook - Terex expects sales for the Materials Processing segment to decline by high single digits from a baseline of $1.9 billion, while the AWP segment's revenues are projected to decline in low double digits from a baseline of $2.41 billion [16] - Net sales are projected to be between $5.3 billion and $5.5 billion, indicating a potential year-over-year growth of 6% at the midpoint [16] - Adjusted earnings per share guidance for 2025 is set between $4.70 and $5.10, reflecting a year-over-year drop of 20% at the midpoint [17]

Financial Performance - The company reported earnings per share of $6.11 on sales of $5.1 billion for the full year, marking the second highest EPS performance in its history [10][37] - In Q4, total net sales were $1.2 billion, slightly up from the prior year due to the addition of ESG, while legacy segment sales were down 17% [31][32] - Gross margin for Q4 was 19%, reflecting lower margins in legacy segments, partially offset by accretive margins from ESG [32] - Full year gross margin was 21.7%, down 120 basis points year-over-year due to volume and unfavorable mix in legacy segments [35] - Free cash flow for Q4 was $129 million, down from $135 million in Q4 2023, while full year free cash flow was $190 million, down from the previous year [34][38] Business Segment Performance - Aerial Work Platforms (AWP) sales for the year were $3 billion, representing 3% growth compared to 2023, with an operating margin of 11.6% [38] - The Material Processing (MP) segment saw full year sales of $1.9 billion, down 14.6% due to industry-wide adjustments and macroeconomic challenges in Europe [41] - ESG achieved a 21.9% operating margin on net sales of $228 million in Q4, indicating strong growth and profitability improvement [43] Market Insights - The company noted a strong public sector spending on infrastructure and utilities, but private projects are being impacted by elevated interest rates [16][17] - North America accounts for over two-thirds of revenue, and a strong U.S. economy is seen as a tailwind [17] - Europe is expected to remain weak, although there are signs of improvement in emerging markets like India and Southeast Asia [19][92] Strategic Direction - The company is focused on integrating ESG and expects to deliver at least $25 million in operational run rate synergies by the end of 2026 [14][25] - The revised strategy emphasizes evaluating the global footprint, reducing fixed costs, and enhancing operational efficiency [22][23] - The company anticipates a $40 billion addressable market with significant growth potential across its segments [25] Management Commentary - Management expressed confidence in the long-term growth outlook despite short-term adjustments in legacy markets [20] - The company is optimistic about the impact of the new administration's focus on infrastructure investments [21] - Management highlighted the importance of maintaining a disciplined pricing strategy in light of potential tariffs [120] Other Important Information - The company maintained a solid balance sheet with a year-end leverage ratio of 2.6 times and plans to deleverage as cash flow increases [45] - The current backlog stands at $2.3 billion, with $520 million attributed to ESG, indicating strong future demand [48] Q&A Session Summary Question: Comments on ESG margin sustainability - Management noted that ESG is performing exceptionally well, with no significant mix issues affecting margins [66][68] Question: Impact of tariffs on sourcing - Management emphasized the company's U.S.-based manufacturing capabilities and optionality to mitigate potential tariff impacts [74][75] Question: AWP order trends and customer fleet management - Management indicated a return to normal seasonal patterns, with strong order intake and healthy fleet utilization [84][86] Question: Outlook for Europe - Management expects Europe to remain soft in 2025, with some signs of demand for replacement equipment [91][92] Question: ESG growth expectations - Management confirmed that the ESG segment is expected to continue strong performance, with no changes to the initial growth outlook [118] Question: Clarification on decremental margins - Management clarified that while Q1 may see lower margins, they expect to return to within the 25% decremental margin target in subsequent quarters [133][134]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported total net sales of $1.2 billion, slightly up from the prior year due to the addition of ESG [31] - Full year net sales reached $5.1 billion, generally in line with 2023, with a gross margin of 21.7%, which is 120 basis points lower year-over-year [35] - Earnings per share for the year was $6.11, marking the second highest in the company's history [37] - Free cash flow for the quarter was $129 million, down from $135 million in Q4 2023, while full year free cash flow was $190 million, a decrease from the previous year [34][38] Business Line Data and Key Metrics Changes - AWP sales for the year were $3 billion, representing a 3% growth compared to 2023, with an operating margin of 11.6% [38] - MP full year sales were $1.9 billion, down 14.6% from the prior year, with a solid operating margin of 13.6% despite lower volume [41] - ESG achieved a 21.9% operating margin on net sales of $228 million, indicating significant growth and profitability improvement [43] Market Data and Key Metrics Changes - Approximately 25% of revenue now comes from waste and recycling markets, characterized by low cyclicality and steady growth [14] - The company noted a generally weak economic environment in Europe, while emerging markets like India and Southeast Asia showed increasing adoption of their products [19] Company Strategy and Development Direction - The company is focused on integrating ESG into its operations and expects to deliver at least $25 million in operational run rate synergies by the end of 2026 [14][25] - The revised strategy emphasizes evaluating the global footprint, reducing fixed costs, and improving operational performance [22] - The company anticipates significant infrastructure investments in the U.S. and is optimistic about the long-term growth outlook despite current macroeconomic challenges [20][21] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of elevated interest rates and uncertainty around the Fed's outlook as macro headwinds, but noted strong public sector spending on infrastructure [16] - The sentiment improved following the U.S. elections, with expectations for regulatory easing and growth encouragement from the new administration [17] - For 2025, the company expects net sales of approximately $5.4 billion and EBITDA of roughly $660 million, with a segment operating margin of about 12% [51] Other Important Information - The company maintained a solid balance sheet with a year-end leverage ratio of 2.6 times and plans to deleverage in future periods [45] - The current backlog stands at $2.3 billion, with a healthy $520 million for ESG and $1.8 billion for legacy businesses [48] Q&A Session Summary Question: Comments on ESG margin sustainability and share performance - Management confirmed strong ESG performance and indicated that margins are expected to remain robust moving into 2025, with no significant changes anticipated [65][68] Question: Impact of tariffs on sourcing and manufacturing - Management discussed the company's ability to adapt to potential tariff changes, emphasizing a strong U.S. manufacturing base and optionality in production [74][75] Question: AWP order trends and customer fleet management - Management noted a return to normal seasonal patterns for AWP, with expectations for strong order intake and healthy fleet utilization [84][85] Question: Outlook for Europe and demand dynamics - Management expects Europe to remain soft in 2025, with some signs of improvement in specific markets, but overall demand is anticipated to be weak [92] Question: ESG growth expectations and synergy capture - Management reiterated confidence in ESG's performance and the expected synergies from the acquisition, with no changes to the initial guidance [162] Question: Clarification on decremental margins and operating performance - Management clarified that while Q1 may see lower margins, they expect to return to within the 25% decremental margin target for the remainder of the year [133][138]