Core Viewpoint - Terex Corporation reported a significant decline in adjusted earnings per share, down 52% year-over-year, despite beating consensus estimates, indicating challenges in sales volume and production adjustments due to weak demand [1][2][3]. Financial Performance - Adjusted earnings per share were 83 cents, surpassing the Zacks Consensus Estimate of 49 cents, but down from $1.74 in the prior-year quarter [1][3]. - Total revenues decreased by 5% year-over-year to $1.23 billion, slightly above the Zacks Consensus Estimate of $1.22 billion [3]. - Including one-time items, earnings were reported at 31 cents per share, down from $1.60 in the same quarter last year [3]. Segment Performance - The Materials Processing segment saw revenues fall by 27% year-over-year to $382 million, with operating income down 50% [8]. - The Aerial Work Platforms segment generated revenues of $450 million, a 28% decline, with operating profit plunging 98% [9]. - The Environmental Services segment, including the recently acquired Environmental Solutions Group, reported revenues of $399 million and an operating profit of $56 million [9]. Cost and Margin Analysis - Cost of goods sold increased by 0.4% year-over-year to $999 million, while gross profit fell by 23% to $230 million [6]. - Adjusted operating profit was $111 million, down from $163 million in the previous year, with an adjusted operating margin of 9.1%, a contraction of 350 basis points [7]. Cash Flow and Shareholder Returns - As of March 31, 2025, cash and cash equivalents were $298 million, down from $388 million at the end of 2024 [10]. - The company returned $43 million to shareholders through share repurchases and dividends during the quarter [11]. Outlook - Terex expects sales in the Materials Processing segment to decline in high single digits from a baseline of $1.9 billion, and AWP segment revenues to decrease in low double digits from a baseline of $2.41 billion [12]. - Projected net sales for 2025 are in the range of $5.3 billion to $5.5 billion, indicating a year-over-year growth of 6% at the midpoint [12]. - Adjusted earnings per share are expected to be between $4.70 and $5.10, reflecting a 20% drop at the midpoint from the previous year's earnings of $6.11 [13]. Stock Performance - Terex's shares have declined by 33.5% over the past year, compared to a 7.1% decline in the industry [16].

Q1 2025 Earnings Conference Call May 2, 2025 Forward Looking Statements Certain information in this presentation includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act") and the Private Securities Litigation Reform Act of 1995) regarding future events or our future financial performance that involve certain contingencies and uncertainties, including those discussed in our Annual Report on For ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 was $35.2 million, an increase of $16.3 million or 86.2% compared to Q1 2024 [6][19] - Adjusted EBITDA margin improved to 10.7%, up 460 basis points year-over-year [7][19] - Adjusted earnings per share were reported at $0.88, significantly higher than $0.34 in Q1 2024 [7][20] - Free cash flow for the quarter was $16.6 million, representing 116% of net income [8][23] Business Line Data and Key Metrics Changes - In the Infrastructure Solutions segment, net sales were driven by strong capital equipment and aftermarket parts sales, despite a slight decline in backlog by 4.1% [7][21] - The Materials Solutions segment faced challenges due to high interest rates and dealer inventory destocking, but aftermarket parts sales remained stable [7][22] - Backlog in the Materials Solutions segment grew by $12.1 million or 10.6% due to increased order activity [17] Market Data and Key Metrics Changes - The overall backlog declined slightly but remained healthy, supported by growth in implied orders [16] - Infrastructure Solutions segment backlog was influenced by strong invoicing for asphalt and concrete plants [16] - Implied orders rose on a quarter-over-quarter basis, with a book-to-bill ratio of 113% for Q1 [18] Company Strategy and Development Direction - The company announced a definitive agreement to acquire TerraSource, a market leader in materials processing equipment, which is expected to enhance the Material Solutions segment [5][25] - The acquisition is anticipated to provide significant synergies and expand the product portfolio, with a focus on aftermarket parts [26][30] - The company is taking proactive measures to mitigate risks associated with tariffs, including price adjustments and supply chain management [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding customer sentiment and infrastructure investment needs, highlighting the importance of ongoing infrastructure improvements [9][12] - The company is maintaining its expectations for adjusted EBITDA for the full year 2025 in the range of $105 million to $125 million, excluding tariff impacts [8][20] - Management noted that while there is uncertainty regarding tariffs, proactive measures have been implemented to manage costs and protect margins [40][41] Other Important Information - The company highlighted the need for continued infrastructure investment, as indicated by the American Society of Civil Engineers' report card [9][10] - The acquisition of TerraSource is expected to close in early Q3 2025, subject to regulatory considerations [33] Q&A Session Summary Question: Why not raise guidance despite strong performance? - Management indicated that while there is upside potential, uncertainty around tariffs and customer behavior influenced the decision not to raise guidance at this time [39][40] Question: How is the company positioned regarding current tariffs? - Management stated that they have been proactive in managing the impact of tariffs and have implemented price increases to mitigate costs [42][43] Question: How has TerraSource performed compared to legacy Material Solutions? - Management noted that TerraSource has a smaller exposure to mobile markets and a significant portion of its business comes from aftermarket parts, which contributes to higher gross margins [46][48] Question: What is the expected impact of tariffs on costs? - Management estimated a potential impact of 4% to 10% on costs if no actions are taken, but emphasized their proactive measures to manage this risk [54][58] Question: Will the acquisition of TerraSource be accretive to EBITDA? - Management confirmed that the acquisition is expected to be accretive from day one, with significant synergy opportunities anticipated [33][34]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 was $35.2 million, an increase of $16.3 million or 86.2% compared to Q1 2024 [6][19] - Adjusted EBITDA margin improved to 10.7%, up 460 basis points year-over-year [7][19] - Adjusted earnings per share were reported at $0.88, significantly higher than $0.34 in Q1 2024 [7][20] - Free cash flow for the quarter was $16.6 million, representing 116% of net income [8][23] Business Line Data and Key Metrics Changes - Infrastructure Solutions segment saw strong net sales driven by capital equipment and aftermarket parts, despite some softness in mobile paving and forestry units [7][21] - Material Solutions segment faced challenges due to high interest rates and dealer inventory destocking, but aftermarket parts sales remained stable [7][22] - Backlog in Material Solutions grew by $12.1 million or 10.6% due to increased order activity [16] Market Data and Key Metrics Changes - The backlog of $402.6 million moderated sequentially by 4.1%, but implied orders showed improvement [6][7] - Infrastructure investment remains critical, with a report indicating that 39% of America's public roadways are in poor or mediocre condition [9][10] Company Strategy and Development Direction - The company announced a definitive agreement to acquire TerraSource, a market leader in materials processing equipment, which is expected to enhance the Material Solutions segment [5][25] - The acquisition is anticipated to provide significant synergies and expand the product portfolio, with a focus on aftermarket parts [26][30] - The company is actively managing risks associated with tariffs and is taking proactive measures to protect margins [13][35] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding customer sentiment and the construction market, despite uncertainties related to tariffs [34] - The company is maintaining its adjusted EBITDA expectations for 2025 in the range of $105 million to $125 million, excluding tariff impacts [8][19] - Management highlighted the importance of infrastructure investment and the long-term stable demand for their equipment and services [11][12] Other Important Information - The company ended the quarter with cash and cash equivalents of $90.1 million and total available liquidity of $238.9 million [23] - The acquisition of TerraSource is expected to close in early Q3 2025, subject to regulatory considerations [33] Q&A Session Summary Question: Why not raise guidance despite strong performance? - Management indicated uncertainty around tariffs and customer behavior as reasons for not raising guidance at this time [39][40] Question: How is the company positioned regarding current tariffs? - Management noted proactive measures taken to mitigate tariff impacts and emphasized their strong position as a U.S. manufacturer [41][44] Question: How has TerraSource performed compared to legacy Material Solutions? - Management highlighted that TerraSource has a smaller exposure to mobile markets and a significant portion of its business comes from aftermarket parts, which contributes to higher gross margins [45][46] Question: Clarification on guidance excluding tariff impacts? - Management confirmed that the guidance provided excludes any impact from tariffs [50][52] Question: What is the potential impact of tariffs on costs? - Management estimated a potential impact of 4% to 10% on COGS if no actions are taken, but they are actively managing this risk [52][56] Question: Can the backlog be repriced? - Management stated that they cannot reprice the backlog but feel well covered compared to previous situations [57] Question: What is the trailing EBITDA for TerraSource? - Management refrained from providing historical EBITDA numbers for TerraSource at this stage [63]