Core Insights - Terex reported Q2 2025 earnings with EPS of $1.49, exceeding analyst estimates of $1.40 by 6.4% and revenue of $1.50 billion, surpassing the consensus estimate of $1.44 billion with a year-over-year growth of 7.6% [1][2] - The Environmental Solutions segment showed strong performance, while Aerials and Materials Processing faced notable declines [1][4] Financial Performance - EPS (Non-GAAP) for Q2 2025 was $1.49, down 31.0% from $2.16 in Q2 2024 [2] - Revenue (GAAP) reached $1.50 billion, an 8.0% increase from $1.38 billion in Q2 2024 [2] - Operating margin (Non-GAAP) decreased to 11.0%, down 3.1 percentage points from 14.1% in the previous year [2] - Net income (Non-GAAP) was $98 million, a decline of 32.9% from $146 million in Q2 2024 [2] - Free cash flow (Non-GAAP) improved to $78 million, an increase of 81.4% from $43 million in Q2 2024 [2] Segment Performance - The Environmental Solutions segment saw net sales increase by 12.9% on a pro forma basis, driven by higher throughput of refuse collection vehicles and utility equipment installations [5] - Aerials segment net sales dropped 17.1%, with operating profit cut by more than half due to reduced capital spending by rental customers and tariff pressures [6] - Materials Processing segment experienced a 9.0% decline in GAAP sales, although bookings increased by 24% year-over-year, indicating some positive trends [7][8] Business Strategy and Innovation - Terex is focusing on business transformation by expanding into steady-growth sectors like waste and recycling through its Environmental Solutions segment [4] - The company is integrating its 3rd Eye digital platform into its products, enhancing safety and generating subscription-based revenue [9] - New electric and hybrid offerings are being developed to meet sustainability demands and regulatory standards [9] Financial Management and Guidance - Free cash flow (non-GAAP) improved significantly, with liquidity maintained at $1.2 billion and $75 million returned to shareholders through dividends and share repurchases [10] - Management reaffirmed FY2025 guidance, targeting revenue between $5.3 billion and $5.5 billion and adjusted EPS of $4.70 to $5.10 [11] - Net free cash flow for FY2025 is expected to reach $300–$350 million, supported by disciplined capital spending and contributions from ESG [12]