Terex (US:TEX)2025-10-30 11:34Financial Performance - Sales for Q3 2025 were $1.4 billion, representing a 14.4% increase compared to Q3 2024[5] - Net income for Q3 2025 was $65 million, or $0.98 per share, down from $88 million, or $1.31 per share in Q3 2024[6] - Net sales for Q3 2025 reached $1,387 million, a 14.5% increase from $1,212 million in Q3 2024[23] - Gross profit for Q3 2025 was $282 million, compared to $245 million in Q3 2024, reflecting a gross margin of 20.3%[23] - Operating profit for Q3 2025 was $140 million, up from $122 million in Q3 2024, maintaining an operating margin of 10.1%[23] - Net Sales for YTD Q3 2025 reached $4,103 million, with a Gross Profit of $875 million, representing a Gross Margin of 21.3%[36] - Operating Profit for YTD Q3 2025 was $443 million, resulting in an Operating Margin of 10.8%[36] - Net Income for YTD Q3 2025 was $253 million, with Earnings per Share (EPS) of $3.81[36] Bookings and Outlook - Bookings reached $1 billion, reflecting a 57% year-over-year growth on a pro forma basis, with a book-to-bill ratio of 72%[6] - The company maintained its full-year adjusted EPS outlook of $4.70 to $5.10 despite macroeconomic challenges[11] - The full-year net sales outlook is projected between $5.3 billion and $5.5 billion[11] - The company anticipates a 2025 outlook for free cash flow of approximately $325 million, reflecting ongoing operational efficiency[34] Cash Flow and Capital Expenditures - Free cash flow generated was $130 million, achieving a cash conversion rate of 200%[5] - Capital expenditures for Q3 2025 were $24 million, with a total of $87 million returned to shareholders through dividends and share repurchases[10] - Capital expenditures for the first nine months of 2025 totaled $84 million, slightly lower than $88 million in the same period of 2024[27] - Free cash flow for Q3 2025 was $130 million, with a free cash flow conversion rate of 200%[34] Assets and Equity - Total assets increased to $6,166 million as of September 30, 2025, compared to $5,730 million at the end of 2024[25] - Cash and cash equivalents rose to $509 million at the end of Q3 2025, up from $388 million at the end of 2024[25] - Stockholders' equity as reported increased to $2,017 million as of September 30, 2025, up from $1,965 million in the previous quarter[45] - Adjusted stockholders' equity reached $2,166 million, compared to $2,088 million in the prior quarter, indicating robust financial health[45] Margins and Profitability - Operating margin was reported at 10.1%, with an adjusted operating margin of 12.1%[5] - The company reported a year-to-date operating profit margin of 8.2% for the first nine months of 2025, down from 12.2% in the same period of 2024[29] - Adjusted Operating Profit for Q3 2025 was $443 million, with an Adjusted Operating Margin of 10.8%[36] - Adjusted Operating Profit for YTD Q3 2025 was $484 million, with an Adjusted Operating Margin of 12.5%[38] Tax and Income Adjustments - The Effective Tax Rate for YTD Q3 2025 was 19.7%[36] - Income before income taxes for the nine months ended September 30, 2025, was reported at $209 million, with an effective tax rate of 24.5%[45] - Adjusted income before income taxes was $314 million, with a significantly lower effective tax rate of 15.6%[45] - The company recorded restructuring and other adjustments totaling $5 million for the three months ended September 30, 2025[45] - Purchase price accounting adjustments amounted to $20 million for the three months ended September 30, 2025[45] - The company experienced a tax-related benefit from foreign tax legislative changes, contributing to the adjusted income figures[45] - The overall financial adjustments reflect the company's strategic focus on restructuring and optimizing its tax position[45] Segment Performance - Environmental Solutions segment showed strong growth, contributing to overall margin improvements[6]