Terex (US:TEX)2025-02-07 21:41Financial 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].