NYSE$TEX

Terex Corporation · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Terex's financial performance in the final quarter of 2024 was consistent with Q3 outlook, with the full year delivering the second-highest earnings per share in the company's history.

Terex reported Q4 net sales of $1.2 billion, slightly up from the prior year due to the addition of ESG, though sales in legacy segments were down 17%. Full-year EPS reached $6.11 on sales of $5.1 billion. The company is implementing its revised Execute, Innovate and Grow strategy, focusing on reducing fixed costs, improving operational efficiency, and driving organic growth, particularly through the integration of ESG.

  • Q4 net sales reached $1.2 billion, a slight increase year-over-year, driven by the ESG acquisition.
  • Full-year earnings per share was $6.11, marking the second-highest in Terex's history.
  • ESG achieved a 21.9% operating margin on net sales of $228 million post-acquisition.
  • The company's backlog stands at $2.3 billion, including $520 million for ESG and $1.8 billion for legacy businesses.

Headline financials

Total Revenue

$1.24B

Previous: $1.22B+1.5%
EPS (adj)

$0.77

Previous: $1.41-45.4%
Operating Margin

4.3%

Previous: 10.9%-60.6%
Adjusted Operating Margin

7.8%

No prior period
Free Cash Flow Conversion

57.0%

No prior period
MP Operating Margin

10.7%

No prior period
MP Adjusted Operating Margin

10.9%

No prior period
Aerials Operating Margin

0.2%

No prior period
Aerials Adjusted Operating Margin

0.6%

No prior period
Capital Expenditures

-$49M

Previous: -$55.6M+11.9%
Net Income

$97M

Previous: $116M-16.4%
Operating Income

$97M

Previous: $116M-16.4%
Gross Profit

$228M

Previous: $258M-11.6%

Revenue & EPS history

Terex · Revenue · Quarterly

$1.24B

Q4 2024+1.5%vs Q4 2023
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 net sales of approximately $5.4 billion with a segment operating margin of about 12% and EBITDA of roughly $660 million. Earnings per share are expected to be between $4.70 and $5.10.

Tailwinds

  • Expect overall growth in 2025 with the full-year contribution of ESG.
  • Anticipate MP to achieve decremental margins well within our 25% target.
  • Utilities demand remains strong with backlog stretching into 2026.
  • Expect a significant increase in free cash flow compared to 2024, anticipating between $300 and $350 million in 2025 driven by working capital reductions and a full year of ESG cash generation.
  • ESG had a strong fourth quarter and we expect that momentum to carry into 2025 combining with Utilities to generate mid-single-digit sales growth for the ES segment.

Headwinds

  • Expect 2025 earnings per share of between $4.70 and $5.10 on lower legacy volume, partially offset by accretive ESG growth.
  • Interest and other expenses will increase compared to 2024 due to acquisition related financing to an expected full year total of about $175 million.
  • We expect a slower start to the year, delivering about 10% of our full year earnings per share in the first quarter.
  • We expect sales to be down low double digits compared to $2.4 billion in 2024 for Aerials.
  • We expect MP sales to be down high single digits compared to the prior year, Europe to remain generally weak with North America starting slowly then picking up steam as the year unfolds.

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 2024

Historical avgQ4 2024

-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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