NYSE$TEX
Terex Corporation · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Terex's financial performance strengthened significantly due to cost control and adaptation to the market environment.
Terex reported Q3 revenue in line with expectations, with sequential improvements in both AWP and MP segments. The company demonstrated strong cost control, resulting in profitability that outperformed initial outlook. Positive free cash flow was generated through net working capital management.
- Q3 revenue improved sequentially by almost 11%, with AWP up almost 8% and MP up approximately 18%.
- Customer bookings in Q3 showed a dramatic improvement from Q2, with AWP bookings up over 100% and MP bookings up 36% sequentially.
- Terex backlog was consistent with backlog at the end of Q2 and down year-over-year by only 5%.
- Approximately 5% operating margin was achieved, with both segments generating positive operating margins.
Headline financials
Revenue & EPS history
Terex · Revenue · Quarterly
$766M
Revenue by segment
Terex · $311M total across 1 segment · Q3 2020
- Materials Processing$311M-19.0%100.0%
Forward guidance
Terex expects the markets to stabilize, anticipating H2 revenue to be similar to H1 2020. They are committed to managing costs and maintaining a 25% decremental margin target. Full year 2020 free cash flow generation is expected to be approximately the same as in 2019.
Tailwinds
- Markets have stabilized in the quarter.
- Expect revenue for the second half of 2020 to be similar to the first half of this year.
- Expect the year-over-year revenue declines in Q4 to be smaller than Q3 for both segments.
- Expect full year 2020 free cash flow generation to be approximately the same as in 2019.
- Anticipate having ample cash on the balance sheet during the remainder of 2020 and would not expect to utilize our revolving credit facility.
Headwinds
- Results could change, negatively or positively, very quickly.
- Year-over-year Q4 revenue declines will be greater in AWP versus MP.
- Planning for at least $15 million of severance and restructuring charges in Q4.
- Continue to expect revenue for the second half of 2020 to be similar to the first half of this year.
- Operating in an unprecedented period
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2020
-0.3%
Avg return
Earnings day
-0.8%
Avg return
5 days after
-0.4%
Avg return
30 days after
40%
29 / 72 earnings
Positive
+26.7%
Q2 2012
Best reaction
-10.6%
Q2 2011
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -0.4% | +3.3% | -6.5% | |
| Q4 2025 | +16.6% | +16.8% | +0.3% | |
| Q3 2025 | -2.3% | -19.3% | -19.0% | |
| Q1 2025 | +9.0% | +7.0% | +23.7% | |
| Q4 2024 | -3.1% | -5.0% | -14.6% | |
| Q3 2024 | -4.7% | -5.6% | +1.0% | |
| Q2 2024 | -10.6% | -17.7% | -13.6% | |
| Q1 2024 | -1.6% | -6.9% | +1.8% | |
| Q4 2023 | -8.0% | -13.9% | -8.5% | |
| Q3 2023 | -2.3% | -0.1% | +6.5% | |
| Q2 2023 | +2.1% | +1.7% | +1.4% | |
| Q1 2023 | +8.0% | +4.1% | +3.7% | |
| Q4 2022 | +11.7% | +10.0% | +3.4% | |
| Q3 2022 | +10.6% | +5.8% | +24.8% | |
| Q2 2022 | +6.3% | +9.5% | +1.0% | |
| Q1 2022 | +0.6% | +6.1% | +3.2% | |
| Q4 2021 | -3.8% | +0.1% | -13.0% | |
| Q3 2021 | +1.7% | +1.7% | -2.4% | |
| Q2 2021 | +1.2% | +3.6% | +10.9% | |
| Q1 2021 | +2.3% | +7.8% | +8.7% | |
| Q4 2020 | +0.6% | +2.5% | +20.6% | |
| Q3 2020 | -0.8% | +4.5% | +28.6% | |
| Q2 2020 | -3.1% | +0.7% | +2.6% | |
| Q1 2020 | -10.1% | -12.4% | +3.5% | |
| Q4 2019 | -8.3% | -7.9% | -40.1% | |
| Q3 2019 | -4.4% | +3.3% | -2.6% | |
| Q2 2019 | -2.1% | -14.0% | -28.8% | |
| Q1 2019 | -3.2% | -1.9% | -16.5% | |
| Q4 2018 | +0.2% | +7.1% | -0.5% | |
| Q3 2018 | -6.6% | -5.1% | -1.0% | |
| Q2 2018 | -6.6% | -5.0% | -8.7% | |
| Q1 2018 | +2.7% | +6.8% | +8.4% | |
| Q4 2017 | -3.0% | -5.1% | -10.2% | |
| Q3 2017 | -3.9% | -1.1% | +0.2% | |
| Q2 2017 | -4.5% | +0.2% | -2.1% | |
| Q1 2017 | -5.8% | -5.2% | -3.7% | |
| Q4 2016 | -1.8% | -5.2% | -6.5% | |
| Q3 2016 | -5.2% | -4.1% | +28.2% | |
| Q2 2016 | -3.3% | +1.5% | +0.6% | |
| Q1 2016 | -1.9% | — | — | |
| Q4 2015 | +8.1% | — | — | |
| Q3 2015 | -0.8% | — | — | |
| Q2 2015 | +0.5% | — | — | |
| Q1 2015 | -1.6% | — | — | |
| Q4 2014 | +6.6% | — | — | |
| Q3 2014 | -10.2% | — | — | |
| Q2 2014 | -7.6% | — | — | |
| Q1 2014 | -0.3% | — | — | |
| Q4 2013 | -3.9% | — | — | |
| Q3 2013 | +0.9% | — | — | |
| Q2 2013 | -3.8% | — | — | |
| Q1 2013 | +1.5% | — | — | |
| Q4 2012 | -7.0% | — | — | |
| Q3 2012 | -5.5% | — | — | |
| Q2 2012 | +26.7% | — | — | |
| Q1 2012 | +2.6% | — | — | |
| Q4 2011 | -2.3% | — | — | |
| Q3 2011 | -0.2% | — | — | |
| Q2 2011 | -10.6% | — | — | |
| Q1 2011 | +1.6% | — | — | |
| Q4 2010 | -7.5% | — | — | |
| Q3 2010 | +3.3% | — | — | |
| Q2 2010 | +7.5% | — | — | |
| Q1 2009 | +1.3% | — | — | |
| Q1 2010 | +6.7% | — | — | |
| Q4 2009 | -2.4% | — | — | |
| Q4 2007 | -2.4% | — | — | |
| Q3 2009 | -2.6% | — | — | |
| Q3 2008 | -2.6% | — | — | |
| Q2 2008 | +8.0% | — | — | |
| Q2 2009 | +8.0% | — | — | |
| Q4 2008 | +8.0% | — | — |
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