Terex (US:TEX)2025-10-31 15:11Financial Performance - Net sales for Q3 2025 reached $1,387 million, a 14.5% increase from $1,212 million in Q3 2024[13] - Gross profit for Q3 2025 was $282 million, compared to $245 million in Q3 2024, reflecting a gross margin improvement[13] - Operating profit for Q3 2025 was $140 million, up from $122 million in Q3 2024, indicating a 14.8% year-over-year growth[13] - Net income for Q3 2025 was $65 million, down from $88 million in Q3 2024, resulting in a diluted earnings per share of $0.98[13] - The company reported comprehensive income of $57 million for Q3 2025, down from $152 million in Q3 2024[13] - Net income for the nine months ended September 30, 2025, was $158 million, compared to $337 million for the same period in 2024, reflecting a decrease of 53%[22] - Operating profit for the nine months ended September 30, 2025, was $338 million, down from $473 million in the same period of 2024, indicating a decrease of 28.5%[13] - The company’s interest expense for Q3 2025 was $45 million, significantly higher than $13 million in Q3 2024[13] - Comprehensive income for the nine months ended September 30, 2025, was $256 million, down from $345 million in the same period of 2024[13] Assets and Liabilities - Total assets increased to $6,166 million as of September 30, 2025, compared to $5,730 million at the end of 2024[16] - Current liabilities rose to $1,275 million as of September 30, 2025, up from $1,073 million at the end of 2024[16] - Long-term debt remained stable at $2,580 million, indicating no change from December 31, 2024[16] - Cash and cash equivalents increased to $509 million as of September 30, 2025, compared to $388 million at the end of 2024[16] - Retained earnings grew to $2,087 million as of September 30, 2025, up from $1,964 million at the end of 2024[16] - Trade accounts receivable increased to $734 million as of September 30, 2025, from $560 million at December 31, 2024[30] - Total inventories increased to $1,207 million as of September 30, 2025, up from $1,147 million at December 31, 2024[68] - Property, plant, and equipment – net was reported at $738 million as of September 30, 2025, compared to $714 million at December 31, 2024[69] Revenue Segments - For the nine months ended September 30, 2025, consolidated net sales reached $4,103 million, up from $3,886 million in the same period of 2024, reflecting a year-over-year growth of approximately 5.6%[47] - The Aerials segment reported net sales of $1,594 million for the nine months ended September 30, 2025, compared to $1,974 million in the same period of 2024, showing a decline of approximately 19.2%[47] - The Environmental Solutions segment achieved net sales of $1,264 million for the nine months ended September 30, 2025, compared to $454 million in the same period of 2024, representing a significant increase of approximately 178.5%[47] - Aerial Work Platforms generated $442 million in sales for the three months ended September 30, 2025, while Materials Processing Equipment contributed $278 million[51] - The company reported consolidated net sales of $1,387 million for the three months ended September 30, 2025, with segment contributions of $537 million from Aerials, $417 million from Materials Processing, and $435 million from Environmental Solutions[46] Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2025, were $84 million, compared to $88 million in 2024, indicating a slight decrease of 4.5%[22] - Capital expenditures for the total company in the three months ended September 30, 2025, were $24 million, a decrease from $29 million in the same period of 2024, indicating a decline of approximately 17.2%[48] - The company reported net cash used in investing activities was $(44) million for the nine months ended September 30, 2025, compared to $(80) million in 2024, showing an improvement of 45%[22] - The company repurchased shares worth $55 million during the nine months ended September 30, 2025[22] Tax and Regulatory Matters - The Company recognized an income tax expense of $29 million on income of $94 million for the three months ended September 30, 2025, resulting in an effective tax rate of 31.4%, compared to 11.1% in the same period of 2024[53] - The effective tax rate for the nine months ended September 30, 2025, was 24.5%, an increase from 17.8% in the same period of 2024, primarily due to unfavorable discrete items related to changes in German tax legislation[54] Mergers and Acquisitions - The acquisition of Environmental Solutions Group was completed for a purchase price of $2,010 million in cash, enhancing the Company's portfolio in the waste and recycling market[55] - The company entered into a merger agreement with REV Group, with a total cash component of $425 million expected to close in the first half of 2026[109] - The Company’s total sales for the nine months ended September 30, 2025, included $2,737 million attributable to the U.S., its country of domicile[50] - The company expects to close the divestiture of its tower and rough terrain cranes businesses for $115 million in Q4 2025, enhancing its capital structure[65] Shareholder Returns - Dividends declared for 2025 were consistent at $0.17 per share for each quarter, similar to 2024[108] - The Company awarded 1 million shares of Restricted Stock to employees with a weighted average fair value of $41.31 per share during the nine months ended September 30, 2025[103] - The Company repurchased 1,360,706 shares for $53 million during the nine months ended September 30, 2025, compared to 567,108 shares for $32 million in the same period of 2024[107]