Terex (TEX) Q1 2025 Earnings Call May 02, 2025 08:00 AM ET Speaker0 Greetings, and welcome to the Carex First Quarter twenty twenty five Results Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. And it is now my pleasure to introduce your host, Derek Everett, Vice President, Investor Relations. Please go ahead. Speaker1 Good morning and welcome to the Terex firs ...

Group 1: Market Expansion and Revenue Growth - The company is implementing a ROW (rest of the world) strategy to actively develop global markets outside North America, with non-North American market revenue reaching nearly 10% by the end of 2024 [2][3] - In 2024, the company's revenue grew by 45.05%, and net profit increased by 44.94%, driven by product and market expansion [2][3] - The North American pneumatic tools market is recovering, with major clients increasing procurement, contributing to the company's growth [3] Group 2: Financial Performance - In Q1 2025, the company's revenue increased by 61.33% year-on-year, while net profit rose by 43.84% [3] - The gross margin of key products such as vacuum cleaners and air compressors showed limited year-on-year variation, with plans to optimize product structure and increase high-margin products [4][5] Group 3: Product Development and R&D Focus - Future R&D will focus on upgrading small air compressors and wet/dry vacuum cleaners, as well as developing new air power technology products [4][5] - The company plans to enhance its nursing robot technology, ensuring stable growth in R&D investment and developing more functionalities [5][6] Group 4: Sales Models and Profit Contribution - The main sales models are ODM and brand authorization, each contributing over 45% to total sales [4][5] - The company aims to promote the OBM (own brand) model while enhancing high-end and high-margin products within ODM and brand authorization [5] Group 5: Cost Management and Risk Mitigation - The company employs vertical integration in production to control costs and improve product quality, with plans to continue this model [5][6] - To address raw material price fluctuations, the company has established long-term agreements with suppliers and employs flexible pricing strategies [6][7] Group 6: Operational Updates and Future Outlook - The new factory in Malaysia is expected to start large-scale production in May 2025, which will mitigate the impact of U.S. tariffs on exports [7] - The company anticipates stable production and shipping operations despite recent tariff changes [7]