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** |

Financial Performance - The company reported Q1 earnings per share of $0.83 on sales of $1.2 billion, with a return on invested capital of 15% [7][24] - Total net sales decreased by 4.9% year-over-year, or 3.6% at constant exchange rates, with organic sales excluding ESG declining by 25% [24][26] - The operating margin for the Environmental Solutions segment was 19.4%, while the overall operating margin was 9.1%, reflecting a decline of 350 basis points year-over-year [25][31] Business Line Performance - Aerials segment sales were $450 million, with operating margins slightly improving sequentially but down from the previous year [27] - Materials Processing (MP) sales were $382 million, maintaining double-digit margins despite lower volume due to cost reduction actions [29] - Environmental Solutions (ES) generated approximately $400 million in sales, representing a third of total sales, with strong performance attributed to record throughput [31] Market Data - Approximately 75% of the company's 2025 U.S. machine sales are expected to come from products manufactured in the U.S., enhancing resilience against tariffs [9][10] - The company noted a generally weak economic environment in Europe but sees potential growth in infrastructure spending in the medium to long term [17] Company Strategy and Industry Competition - The company is focused on integrating ESG into its operations, expecting to deliver over $25 million in operational synergies by the end of 2026 [18][19] - The company aims to maintain price-cost neutrality while mitigating tariff impacts through supply chain adjustments and strategic sourcing [14][53] Management Commentary on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the operating environment, highlighting the need to navigate macroeconomic uncertainties and potential tariff impacts [36][37] - The full-year sales outlook remains between $5.3 billion and $5.5 billion, with expectations of a significant increase in free cash flow compared to 2024 [37][39] Other Important Information - The company ended Q1 with $1.1 billion in liquidity and plans to deleverage in the second half of the year [33] - The current backlog stands at $2.6 billion, up 13% sequentially, indicating strong demand across segments [35] Q&A Session Summary Question: Can you expand on the margin outlook for Environmental Solutions? - Management indicated that strong Q1 performance was driven by increased sales and favorable factory adoption, but expects moderation in margins going forward due to one-off factors and increased expenses [46][47][116] Question: How are you handling orders in the current tariff environment? - The company is in full mitigation mode, having pulled forward material and implemented surcharges where necessary, while maintaining price-cost neutrality as a priority [52][53] Question: What is the impact of tariffs on your manufacturing footprint? - The company highlighted that a significant portion of its products are manufactured in the U.S., providing a competitive advantage in the current tariff landscape [63][64] Question: Can you provide insights on the backlog growth in Materials Processing? - Management noted that the backlog growth is consistent with historical patterns and driven by healthy fleet utilization and replacement demand in North America [120][121]

Financial Performance - The company reported Q1 earnings per share of $0.83 on sales of $1.2 billion, with a return on invested capital of 15% [7][24] - Total net sales decreased by 4.9% year-over-year, or 3.6% at constant exchange rates, with organic sales excluding ESG declining by 25% [24][26] - The operating margin for the Environmental Solutions segment was 19.4%, showing strong execution and a significant improvement from previous periods [31][32] Business Line Performance - Aerials segment sales were $450 million, with operating margins expected to return to double digits in Q2 as production ramps up [27][28] - Materials Processing (MP) sales were $382 million, maintaining double-digit margins due to cost reduction actions despite lower volume [30][31] - Environmental Solutions generated approximately $400 million in sales, representing one-third of total sales, with record throughput contributing to strong margins [31][32] Market Dynamics - Approximately 75% of the company's 2025 U.S. machine sales are expected to come from products manufactured in the U.S., benefiting from the USMCA trade agreement [10][11] - The company sees a generally weak economic environment in Europe but is optimistic about infrastructure spending growth in the medium to long term [18][19] - The waste and recycling market, which represents about 25% of global revenue, is characterized by low cyclicality and steady growth [16] Strategic Direction - The company is focused on integrating ESG into its operations, expecting to deliver over $25 million in operational run rate synergies by the end of 2026 [19][90] - The strategy includes leveraging digital solutions and investing in robotics and automation to enhance operational efficiency [20][21] - The company maintains a strong financial position, planning to deleverage in the second half of the year while continuing to invest in growth [33][34] Management Commentary - Management expressed confidence in navigating the current dynamic environment and emphasized the importance of maintaining price-cost neutrality amid tariff challenges [9][52] - The company anticipates a gradual recovery in the MP segment driven by replacement demand in North America [124][125] - Management highlighted the need for ongoing investments to support demand and improve throughput in the Environmental Solutions segment [90] Other Important Information - The company ended Q1 with $1.1 billion in liquidity and plans to return capital to shareholders through stock repurchases and dividends [33][34] - The current backlog stands at $2.6 billion, up 13% sequentially, indicating strong demand across segments [35][36] Q&A Session Summary Question: Can you expand on the margin outlook for Environmental Solutions? - Management noted that strong Q1 performance was driven by increased sales and record throughput, but expects moderation in margins due to one-off factors and increased expenses in the coming quarters [46][47][118] Question: How are you handling orders in the current tariff environment? - The company is in full mitigation mode, having pulled forward inventory and implemented surcharges where necessary, while maintaining a focus on price-cost neutrality [52][54] Question: What is the impact of tariffs on your manufacturing footprint? - Management indicated that a significant portion of products is manufactured in the U.S., providing a competitive advantage, particularly in the Environmental Solutions and Aerials segments [64][65] Question: What are the expectations for the Materials Processing segment? - The company expects a gradual recovery in MP, driven by healthy fleet utilization and replacement demand, with a cautious outlook on macroeconomic factors [122][124]

Group 1: Earnings Performance - Terex reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.49 per share, but down from $1.60 per share a year ago, representing an earnings surprise of 69.39% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - Terex's revenues for the quarter ended March 2025 were $1.23 billion, surpassing the Zacks Consensus Estimate by 0.64%, but down from $1.29 billion year-over-year [2] Group 2: Stock Performance and Outlook - Terex shares have declined approximately 21.3% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $1.47 on revenues of $1.43 billion, and for the current fiscal year, it is $4.49 on revenues of $5.29 billion [7] Group 3: Industry Context - The Manufacturing - Construction and Mining industry, to which Terex belongs, is currently ranked in the top 6% of over 250 Zacks industries, indicating strong performance potential [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Terex's stock performance [5][6]

Financial Performance - The company reported Q1 earnings per share of $0.83 on sales of $1.2 billion, with a return on invested capital of 15% [6][23] - Total net sales decreased by 4.9% year-over-year, or 3.6% at constant exchange rates, with organic sales excluding ESG declining by 25% [23][35] - The operating margin for the overall company was 9.1%, down 350 basis points from the prior year, but showed a sequential improvement of 130 basis points from Q4 2024 [24][30] Business Line Performance - Aerials segment sales were $450 million, with operating margins down 3% year-over-year but expected to return to double digits in Q2 due to seasonal demand [26][36] - Materials Processing (MP) sales were $382 million, maintaining double-digit margins despite lower volume, with expectations for sequential improvement throughout the year [27][36] - Environmental Solutions (ES) generated approximately $400 million in sales, representing a third of total sales, with an operating margin of 19.4%, showing strong performance and record throughput [29][30] Market Data - Approximately 75% of the company's 2025 U.S. machine sales are expected to come from products manufactured in the U.S., enhancing resilience against tariffs [8][10] - The company noted a generally weak economic environment in Europe but sees potential growth in infrastructure spending in the medium to long term [15][16] Company Strategy and Industry Competition - The company is focused on integrating ESG into its operations, expecting to deliver over $25 million in operational run rate synergies by the end of 2026 [17][38] - The company is leveraging its global sourcing capabilities to mitigate tariff impacts and maintain price-cost neutrality [13][50] - The company is optimistic about its position in the market, particularly in the U.S. and North America, where a significant portion of its products are manufactured [60] Management Commentary on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment and geopolitical uncertainties but maintained a full-year EPS outlook of $4.7 to $5.1 [7][35] - The company anticipates a gradual recovery in MP driven by replacement demand in North America, with a focus on maintaining operational efficiency [36][118] Other Important Information - The company ended Q1 with $1.1 billion in liquidity and plans to deleverage in the second half of the year while continuing to invest in growth [31][32] - The company repurchased $32 million of its stock and paid $11 million in dividends during the first quarter [32] Q&A Session Summary Question: Margin outlook for Environmental Solutions - Management noted that strong Q1 performance was driven by increased sales, record throughput, and integration synergies, but expects moderation in margins going forward due to one-off items and increased expenses [41][44][46] Question: Handling of orders and tariff assumptions - Management confirmed they are in mitigation mode regarding tariffs, having pulled forward inventory and implemented surcharges where necessary, while maintaining price-cost neutrality [47][49][50] Question: Guidance dynamics and competitive advantage - Management explained that the Q1 performance exceeded expectations, and while tariffs are a concern, the majority of products are manufactured in the U.S., providing a competitive edge [53][59] Question: Aerials and Material Processing margin progression - Management indicated that Aerials are expected to see a seasonal ramp-up in Q2, with MP showing a gradual recovery driven by replacement demand [63][66][68] Question: Impact of tariffs on the UK and pricing strategies - Management acknowledged the impact of tariffs on raw materials from China and indicated that pricing strategies would be adjusted as necessary to maintain competitiveness [79][82] Question: Sustainability of ES margins - Management expressed confidence in the sustainability of ES margins due to strong demand and expected synergies from the ESG acquisition [84][86] Question: Clarification on tariff assumptions - Management clarified that the $0.40 tariff impact assumption includes expected easing of China tariffs, with a focus on maintaining competitive pricing [91][92] Question: Impact of Germany's stimulus plan - Management noted that while the stimulus plan in Germany is not included in current sales outlook, it could positively impact the Material Processing segment in the future [93][94]

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]