Terex Corporation · NYSE:TEX
Terex — Q1 2025 Earnings Presentation
31 slides from Terex's earnings presentation, May 2, 2025
Slide 1: Q1 2025 Earnings Conference Call
Q1 2025 Earnings Conference Call May 2, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information in this presentation includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”) and the Private Securities Litigation Reform Act of 1995)
Slide 3: Strong Commitment to Zero Harm Culture and Terex Values
Strong Commitment to Zero Harm Culture and Terex Values 3
Slide 4: Q1 2025 Financial Highlights and FY Outlook
Q1 2025 Financial Highlights and FY Outlook $1.2B 9.1% 10.4% 15.0% $0.83 Sales Adj. Operating Adj. EBITDA ROIC* Adj. EPS* Margin* Margin* Maintaining 2025 FY EPS Outlook of $4.70 - $5.10 *Refer to the appendix for GAAP to non-GAAP reconciliation. 4
Slide 5: Made in the USA for the USA
Made in the USA for the USA ~75% of Terex products sold in America are made in America* *Based on 2025 Outlook 5
Slide 6: Market Strength in Waste & Recycling, Utilities and Infrastructure
Market Strength in Waste & Recycling, Utilities and Infrastructure 1 Addressable market size based on Terex management’s most current estimates and analysis of third party publications, market data and earnings releases from market participants. 6
Slide 7: Strategic Priorities
Strategic Priorities Build on Strong Foundation and Accelerate Profitable Growth Maximize Through Cycle Performance and Shareholder Returns 7
Slide 8: Terex Equipment and Technology Doing Amazing Work
Terex Equipment and Technology Doing Amazing Work 8
Slide 9: Q1 Financial Performance
Q1 Financial Performance USD Millions, except Earnings per Share Q1 20251 Q1 20242 Q1 2025 Financial Call-Outs EPS GAAP $0.31 Net Sales $ 1,229 $ 1,292 Accelerated vesting / severance 0.06 Deal related 0.07 % Change vs 20243 (4.9%) Purchase price accounting 0.25 Litigation related 0.13 Operating Pro
Slide 10: Aerials Financial Highlights
Aerials Financial Highlights Q1 2025 Q1 2024 Sales 450 623 (27.8)% YoY Operating Margin* 3.0% 14.9% (1190) bps • Strong Q1 book-to-bill of 144% • Q1 adj. operating margin includes ~550 bps associated with lower YoY factory absorption • Expect to return to double-digit margins in Q2 on seasonally hig
Slide 11: MP Financial Highlights
MP Financial Highlights Q1 2025 Q1 2024 Sales 382 520 (26.5)% YoY Operating Margin* 10.0% 14.0% (400) bps • European market remains challenging impacting replenishment. High fleet utilization and dealer stock levels declining slowly in US • Strong bookings and revenue growth in Concrete vertical • M
Slide 12: ES Financial Highlights
ES Financial Highlights Q1 2025* Q1 20241 Sales 399 361 +10.5% YoY Operating Margin 19.4% 15.2% +420 bps 1 Shown on a pro forma basis • Solid bookings in both Utilities and ESG • Record ESG sales and refuse collection vehicle production • Performance exceeding acquisition model Figures in USD Millio
Slide 13: Continue to Return Value to Shareholders and Invest in Capex
Continue to Return Value to Shareholders and Invest in Capex to Support Future Growth $32M Share Repurchases, ~12x increase vs Q1 2024 $11M Dividends Paid, ~1.8% dividend yield $36M Capital Expenditures to support future growth Investing to expand ESG Heil Refuse Collection Vehicle capacity in Ft. P
Slide 14: Returning to Normal Ordering Patterns
Returning to Normal Ordering Patterns Backlog at $2.6B Bookings at $4.5B LTM • Backlog coverage consistent with historical norms • 124% book-to-bill in Q1, led by Aerials at 144% • Sequential growth of $292 million, or 13% • Sequential growth of $269 million, or 6.4% • Supports 2025 outlook • Reflec
Slide 15: Maintaining 2025 Outlook
Maintaining 2025 Outlook Terex Outlook5,6,7,9 Segment Sales Outlook Sales Mix USD Millions, except Earnings per Share Net Sales8 $5,300 - $5,500 Aerials Segment Operating Margin1,2 ~12% (LDD) EBITDA1 ~$660 Materials Processing EPS1,3 $4.70 - $5.10 (HSD) Free Cash Flow1,4 $300 - $350 FCF Conversion ~
Slide 16: Positioned to Deliver Long-Term Value
Positioned to Deliver Long-Term Value 16
Slide 17: Appendix
TEREX. Appendix EXECUTE . INNOVATE . GROW TEREX.
Slide 18: Backlog Trend
Backlog Trend Sequential Year on Year ES* $(14) (1.2%) (70) (6%) MP 107 33% (285) (40%) Aerials 199 25% (656) (39%) Total $292 13% $(1,011) (28%) Figures in USD Millions; Backlog includes deliveries beyond 12 months which reflects continuing operations 18 *ES shown on a pro forma basis
Slide 19: Q1 YOY Sales by Geography
Q1 YOY Sales by Geography North America Western Europe Asia-Pacific Rest of World Actual Organic* Actual FX-Adj. Actual FX-Adj. Actual FX-Adj. 13% -20% (38%) (36%) (31%) (28%) (24%) (20%) *Organic excludes ESG Q1 2025 Q1 2024 19
Slide 20: Segment Bookings
Segment Bookings Material Processing Aerials Environmental Solutions* Figures in USD Millions 20 *ES shown on a pro forma basis
Slide 21: Glossary
Glossary In an effort to provide investors with additional information regarding the Company’s results, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures which management believes provides useful information to investors. These non-GAAP meas
Slide 22: GAAP to Non-GAAP Reconciliation: Q1 2025
GAAP to Non-GAAP Reconciliation: Q1 2025 Accelerated Purchase Q1 2025 Q1 2025 Vesting / Deal Price Litigation Mark-to- Tariff Adjusted GAAP Severance Related Accounting Related Market Related (non-GAAP) Net Sales $1,229 — — — — — — $1,229 Gross Profit 230 2 — 21 — — 1 254 % of Sales 18.7% 20.6% SG&A
Slide 23: GAAP to Non-GAAP Reconciliation: Q1 2024
GAAP to Non-GAAP Reconciliation: Q1 2024 Q1 2024 Q1 2024 Accelerated Mark-to- Adjusted GAAP Vesting / Other Market (non-GAAP) Net Sales $1,292 — — $1,292 Gross Profit 297 — — 297 % of Sales 23.0% 23.0% SG&A (139) 5 — (134) % of Sales (10.8%) (10.4%) Operating Profit $158 5 — $163 Operating Margin 12
Slide 24: Segment Operating Profit and Adjusted Operating Profit
Segment Operating Profit and Adjusted Operating Profit: Q1 2025 and 2024 Three Months Ended March 31, 2025 2024 Aerials MP ES Aerials MP ES Operating Profit $ 2 $ 36 $ 56 $ 92 $ 72 $ 15 Accelerated Vesting / Severance 1 2 — 1 1 — Purchase Price Accounting — — 21 — — — Litigation Related 10 — — — — —
Slide 25: Free Cash Flow
Free Cash Flow We calculate a non-GAAP measure of free cash flow. We define free cash flow as Net cash provided by (used in) operating activities less Capital expenditures, net of proceeds from sale of capital assets. We believe this measure of free cash flow provides management and investors furthe
Slide 26: EBITDA
EBITDA EBITDA is defined as earnings, before interest, other non-operating income (loss), income (loss) attributable to non-controlling interest, taxes, depreciation and amortization. The Company calculates this by subtracting the following items from Net income (loss): (Gain) loss on disposition of
Slide 27: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Three Months Ended LTM Ended March 31, March 31, 2025 2024 2025 Net income (loss) $ 21 $ 109 $ 247 Interest & Other (Income) Expense 43 21 140 Provision for (benefit from) income taxes 5 28 50 Operating profit 69 158 437 Depreciation 17 14 61 Amortization 22 1 45 Non-Cash
Slide 28: ROIC
ROIC ROIC and other Non-GAAP Measures (as calculated below) assist in showing how effectively we utilize capital invested in our operations. ROIC is determined by dividing the sum of NOPAT for each of the previous four quarters by the average of Debt less Cash and cash equivalents plus Stockholders’
Slide 29: ROIC Continued
ROIC Continued Amounts described below are reported in millions of U.S. dollars, except for the effective tax rate. Amounts are as of and for the three months ended for the periods referenced in the tables below. Mar '25 Dec '24 Sep '24 Jun '24 Mar '24 Annualized effective tax rate as adjusted1 17.5
Slide 30: ROIC Continued
ROIC Continued 03/31/25 12/31/24 09/30/24 06/30/24 Reconciliation of operating profit: Operating profit as reported $ 69 $ 53 $ 122 $ 193 Adjustments: Accelerated vesting / Severance 5 4 5 3 Purchase price accounting 21 38 — — Deal related 5 2 — — Litigation related 10 — — — Tariff related 1 — — — O
Slide 31: ROIC Continued
ROIC Continued Three Months Ended March 31, 2025 Income (loss) before income (Provision for) benefit from taxes income taxes Income tax rate Reconciliation of annualized effective tax rate: As reported $ 26 $ (5) 20.3% Effect of Adjustments: Accelerated vesting / severance 5 (1) Purchase price accou