Loading...
01/11 03:34
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed picture: strong backlog and ES margin improvement are positive, but operating margin decline and higher interest expenses are concerns. The Q&A reveals management's cautious outlook on margins and tariffs, with some reluctance to provide specifics. Despite strong ROIC and shareholder returns, the market may remain cautious due to margin pressures and tariff impacts. Given the mid-sized market cap, the stock is likely to remain neutral, reflecting both positive and negative factors.
Earnings Per Share (EPS) $0.83, down from prior year; impacted by production cuts and lower sales.
Total Net Sales $1.2 billion, 4.9% lower year-over-year; organic sales excluding ESG declined by 25% due to channel adjustments and backlog conversion timing.
Operating Margin 9.1%, down 350 basis points year-over-year; decline driven by volume and unfavorable absorption, partially offset by SG&A reduction.
Interest and Other Expenses $41 million, $26 million higher than last year; increase due to interest on ESG acquisition financing.
EBITDA $128 million; specific year-over-year change not mentioned.
Free Cash Flow Improved compared to Q1 last year; driven by better working capital performance despite lower earnings.
Return on Invested Capital (ROIC) 15%, well above cost of capital; reflects strong financial position.
Liquidity $1.1 billion; consistent with outlook.
Stock Repurchase $32 million in stock repurchased; reflects commitment to returning capital to shareholders.
Dividends $11 million paid in dividends; part of capital return strategy.
Backlog $2.6 billion, up 13% sequentially; indicates strong demand and seasonal patterns.
Environmental Solutions Operating Margin 19.4%, with a 420 basis point year-over-year improvement; driven by strong performance in ESG.
New Product Development: Terex is expanding its product development pipeline focused on maximizing return on investment for customers, including the introduction of ESG's 3rd Eye digital suite for waste collection vehicles.
New Product Launch: The new CBI woodchipper was designed with exceptional performance and ease of maintenance, targeting biomass, food processing, and vegetation management sectors.
Market Expansion: Terex is increasing its presence in emerging markets such as India, Southeast Asia, the Middle East, and Latin America.
U.S. Market Positioning: Approximately 75% of Terex's 2025 U.S. machine sales are expected to come from products manufactured in the U.S., enhancing its U.S.-centric market positioning.
Operational Efficiency: Terex is implementing strategies to improve throughput and increase capacity in utilities product lines, aiming for over $25 million in operational run rate synergies by the end of 2026.
Cost Management: The company is focusing on reducing fixed costs while improving operational performance and efficiency.
Strategic Shift: Terex is integrating ESG into its operations, which is expected to enhance resilience and reduce cyclicality in its business.
Growth Strategy: The company is maintaining its growth strategy by exploring new channels and markets, particularly in the Aerials and MP segments.
Tariffs: The company is facing uncertainty regarding tariffs, which could impact their financial outlook. They have proactively placed inventory to mitigate the effects of tariffs.
Supply Chain Challenges: Terex has a global supply base and is exposed to tariffs on imported materials. They are working closely with suppliers to absorb added costs and mitigate cost inflation.
Economic Environment: The company is experiencing a weak economic environment in Europe, which poses a challenge for their operations and sales.
Interest Rates: Higher interest rates are a headwind for rent-to-own conversions, affecting sales in the Aerials and Materials Processing segments.
Market Demand: Private sector demand is cautious, which could impact overall sales performance.
Production Cuts: Production cuts in the past two quarters have impacted operating margins, although the company expects improvements moving forward.
Geopolitical Dynamics: The company acknowledges exposure to macroeconomic and geopolitical dynamics that could affect their business.
Safety Performance: A fundamental part of Terex's journey to becoming a world-class operating company is achieving world-class safety performance.
ESG Integration: Integrating ESG into Terex is on track, with expectations to deliver more than $25 million in operational run rate synergies by the end of 2026.
Product Development: Terex is focused on maximizing return on investment for customers through an exciting new product development pipeline and expanding digital solutions.
Market Growth: Terex has a $40 billion addressable market with significant upside, driven by organic growth in ESG and Aerials and MP businesses.
Full Year EPS Outlook: Maintaining full year EPS outlook of $4.70 to $5.10.
Sales Outlook: Expecting full year 2025 sales of between $5.3 billion and $5.5 billion, representing $200 million to $400 million higher than the prior year.
Segment Operating Margin: Expecting segment operating margin of approximately 12%.
Free Cash Flow: Anticipating free cash flow between $300 million and $350 million in 2025.
CapEx: Expected CapEx of approximately $120 million.
Aerials and MP Sales Expectations: Maintaining Aerials and MP sales expectations, with Aerials expected to return to double-digit margins in Q2.
Environmental Solutions Sales Outlook: Increasing full year sales outlook for Environmental Solutions up high single digits.
Dividends Paid: $11 million in dividends were paid in Q1 2025.
Share Repurchase: $32 million of Terex stock was repurchased in Q1 2025.
The earnings call summary and Q&A session reveal a positive outlook with strong financial performance, strategic mergers, and synergy potential. Despite some uncertainties, the management's confidence in the business's value, strong backlog, and synergy targets suggest a positive sentiment. The market cap of $3.5 billion indicates a moderate reaction, leading to a 'Positive' sentiment rating.
The earnings call presents mixed signals. Strong ES sales and improved margins are positive, but AWP margins and top-line guidance show declines. The Q&A indicates concerns about tariffs, customer hesitancy, and non-recurring favorable mixes. While the EPS outlook is optimistic, the overall sentiment remains cautious. Given the market cap of $3.58 billion, the stock is likely to remain stable with a neutral reaction of -2% to 2% over the next two weeks.
The earnings call presents a mixed outlook: strong EPS growth and shareholder returns were overshadowed by declining net sales and operating margins. The Q&A highlights concerns about tariffs and margin pressures, yet also reveals optimism about synergies and competitive advantages. The market cap suggests moderate sensitivity to these factors. While some positive elements like backlog growth and dividend payments exist, they are countered by negative trends such as declining sales and margin pressures, resulting in a neutral prediction for the stock price movement.
The earnings call presents a mixed picture: strong backlog and ES margin improvement are positive, but operating margin decline and higher interest expenses are concerns. The Q&A reveals management's cautious outlook on margins and tariffs, with some reluctance to provide specifics. Despite strong ROIC and shareholder returns, the market may remain cautious due to margin pressures and tariff impacts. Given the mid-sized market cap, the stock is likely to remain neutral, reflecting both positive and negative factors.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
