Terex Corporation Q1 2025 Earnings Report

Terex Corporation, a global manufacturer of lifting and material processing products, has released its first quarter 2025 earnings report. The company, which operates in various industrial segments, provided a detailed overview of its financial performance, business operations, and strategic initiatives. Financial Highlights For the first quarter of 2025, Terex reported earnings per share (EPS) of $0.83 on sales of $1.2 billion. This represents a 4.9% decrease in total net sales compared to the prior year. The company's return on invested capital stood at 15%. The operating margin was 9.1%, which is 350 basis points lower than the previous year but showed a sequential improvement of 130 basis points from Q4 2024. Free cash flow improved due to better working capital performance despite lower earnings. Business and Operational Highlights Terex's business segments showed varied performance. The Aerials segment reported sales of $450 million, with an operating margin of 3%. The Materials Processing (MP) segment had sales of $382 million and maintained double-digit margins despite lower volume. The Environmental Solutions (ES) segment, which includes the Environmental Solutions Group (ESG) and Terex Utilities, generated approximately $400 million in sales, representing a third of the company's total sales for the quarter. ES achieved a 19.4% operating margin, with ESG showing significant improvement. Strategic Initiatives and Corporate Developments Terex continues to integrate ESG into its operations, expecting to deliver more than $25 million in operational run-rate synergies by the end of 2026. The company is also focusing on innovation, with a new product development pipeline and investments in robotics, automation, and digital solutions. Terex repurchased $32 million of its stock and paid $11 million in dividends during the first quarter, demonstrating its commitment to returning capital to shareholders. Management's Perspective Simon Meester, President and CEO of Terex, emphasized the company's commitment to safety, operational excellence, and environmental stewardship. He highlighted the strong performance of the ES segment and the proactive measures taken to mitigate the impact of tariffs. Jennifer Kong, Senior Vice President and CFO, noted the company's strong liquidity position and the expectation of increased cash flow from operations in the second half of the year. Future Outlook Terex maintains its full-year EPS outlook of $4.70 to $5.10, with expected sales between $5.3 and $5.5 billion. The company anticipates a significant increase in free cash flow, driven by working capital reductions and a full year of ESG cash generation. The outlook for the Aerials and MP segments remains consistent, while the sales outlook for the ES segment has been increased.SEC Filing: TEREX CORP [ TEX ] - 8-K - May. 05, 2025