NYSE$TEX

Terex Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Terex reported consistent sales and increased gross margins, with earnings per share impacted by non-recurring items.

Terex reported Q4 sales of $1.2 billion, consistent with the prior year, and a gross margin of 21.5%, up 220 basis points. Earnings per share were $1.88, including a net favorable impact of $0.47 from non-recurring items. Excluding these items, EPS was $1.41. The company's backlog remains strong at $3.4 billion.

  • Sales of $1.2 billion were consistent with prior year, reflecting healthy demand.
  • Gross margins increased 220 basis points to 21.5% due to pricing and improved efficiencies.
  • Earnings per share of $1.88 included a $0.47 net favorable impact from non-recurring items.
  • Q4 backlog of $3.4 billion is significantly above historical levels.

Headline financials

Total Revenue

$1.22B

Previous: $1.22B+0.4%
EPS (adj)

$1.41

Previous: $1.34+5.2%
Operating Margin

10.9%

Previous: 9.9%+10.1%
Capital Expenditures

-$55.6M

No prior period
Net Income

$116M

Previous: $92.2M+25.8%
Operating Income

$116M

Previous: $121M-4.1%
Gross Profit

$258M

Previous: $235M+9.6%
Stock-Based Comp

$17.8M

Previous: $7.4M+140.5%

Revenue & EPS history

Terex · Revenue · Quarterly

$1.22B

Q4 2023+0.4%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Terex · $541M total across 1 segment · Q3 2023

  • Materials Processing
    $541M+18.1%

Forward guidance

Terex anticipates earnings per share of $6.85 to $7.25 based on sales of $5.1 to $5.3 billion.

Tailwinds

  • Healthy volumes supported by customer demand.
  • Improved full-year operating margins in a range of 12.8% to 13.1%.
  • Continued cost out activity and favorable absorption at mature plants.
  • Strong margins in the range of 15.6% to 15.9% for the full year in MP segment.
  • AWP sales of $2.9 to $3.0 billion, with improved operating margins of 13.4% to 13.7% for the full year.

Headwinds

  • Complex environment with macroeconomic variables and geopolitical uncertainties.
  • Caution around supply chain and labor constraints.
  • Softening in Europe.
  • Monterrey start up inefficiencies.
  • 2024 effective tax rate of approximately 22%, versus 2023 normalized rate of 18.2%.

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 Q4 2023

Historical avgQ4 2023

-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

Earnings price reactions
QuarterReport dateReaction (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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