Slide 1: Q2 2024 Earnings Conference Call
Q2 2024 Earnings Conference Call July 31, 2024 EXECUTE • INNOVATE • GROW
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 Total Recordable Incident Rate (TRIR) 3.4 3.2 3.2 3.0 2.8 2.8 2.6 3.82 3.27 2.98 2.09 1.52 1.77 1.93 1.98 1.70 1.40 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 2026 Target TRIR Machinery Manufacturing Average TEREX WAY VALUES... SUPPORT A S
Slide 4: Q2 2024: Strong Execution by the Terex Team
Q2 2024: Strong Execution by the Terex Team $1.4B $193.1M 14.0% 25.9% $2.08 / $2.16 (GAAP / Adjusted)* (2%) (8%) (100) bps 370 bps EPS OUTLOOK Full-Year Adjusted EPS Outlook of $7.15 to $7.45 *See the appendix for GAAP to Non-GAAP reconciliation 4
Slide 5: Market Strength in Infrastructure, Utilities, Manufacturing & Recycling
Market Strength in Infrastructure, Utilities, Manufacturing & Recycling 5
Slide 6: Well-Positioned for Sustained Growth
Well-Positioned for Sustained Growth Megatrends Government Investment Sources: Mckinsey Global Institute; J.P. Morgan; Precedence Research; C&D Recycling Market: Municipal Waste Recycling Market 6
Slide 7: Strategic Priorities Build on Strong Foundation and Accelerate Profitable Growth
Strategic Priorities Build on Strong Foundation and Accelerate Profitable Growth Execute Innovate Grow • Leverage Terex Operating • Bring new products and • Leverage diverse portfolio System services to market that to enter new geographies, maximize customer ROI new customer segments • Optimize foot
Slide 8: Innovation: UK's First All Electric Modular Minerals Processing Plant
Innovation: UK’s First All Electric Modular Minerals Processing Plant First Terex MPS (Minerals Processing System) fully electric large modular setup, 4 plants Customer is a leader in sustainable building materials, road contracting, and building products Reduced dust emissions and lowered diesel co
Slide 9: ESG Accelerates Long-Term Shareholder Value
ESG Accelerates Long-Term Shareholder Value Adds meaningful scale and significantly reduces cyclicality Financially accretive Tangible cost and revenue synergies Market leader in waste recycling Adds attractive addressable market in North America Reduces capital intensity 9
Slide 10: Q2 Financial Performance
Q2 Financial Performance USD Millions, except Earnings per Share Q2 2024 Q2 2023 Q2 2024 EPS Net Sales $ 1,381.7 $ 1,403.1 GAAP $2.08 Accelerated vesting / severance 0.03 % Change vs 2023 (1.5%) Deal related 0.03 Gross Profit 328.4 342.9 Mark-to-market on third party investments 0.02 % of Sales 23.8
Slide 11: Returning to Normal Ordering Patterns
Returning to Normal Ordering Patterns Backlog elevated at $2.4B, ~2.0x historical average Bookings reflect return to more normal seasonality • Improved customer deliveries and lead times have • North America healthy, but Europe remains soft allowed us to reduce backlog from peak levels • Megatrends
Slide 12: Materials Processing: Resilient in a Dynamic Market
Materials Processing: Resilient in a Dynamic Market Sales Operating Margin Backlog (13.6%) YoY (160) bps YoY (48%) YoY 17.0% 577 15.4% 1,074 499 558 Q2 '23 Q2 '24 Q2 '23 Q2 '24 Q2 '23 Q2 '24 Results Drivers • Lower sales driven by softer demand and dealer inventory rebalancing across multiple busine
Slide 13: Aerial Work Platforms: Strong Performance
Aerial Work Platforms: Strong Performance Sales Operating Margin Backlog (100) bps YoY (32%) YoY +6.9% YoY 882 16.2% 2,668 825 15.2% 1,817 Q2 '23 Q2 '24 Q2 '23 Q2 '24 Q2 '23 Q2 '24 Results Drivers • Q2 sales growth driven by higher North American demand at Genie • Q2 margins impacted by Monterrey st
Slide 14: Strong Balance Sheet and Free Cash Flow Generation
Strong Balance Sheet and Free Cash Flow Generation Highlights Shares Outstanding Reaffirming 2024 FCF Outlook of $325 - $375 109 38% Reduction through buybacks Ample liquidity of $879; Net leverage of 0.5x Over $1.6B in buybacks since 2015 ROIC of 25.9% on a TTM basis 68 Dividend up 31% since start
Slide 15: Full-Year Adjusted EPS Outlook of $7.15 to $7.45
Full-Year Adjusted EPS Outlook of $7.15 to $7.45 Updated Outlook Previous Outlook Updated Outlook Previous Outlook Terex Outlook (1) Adjusted Adjusted (1) Outlook Operating Operating Net Sales Net Sales Net Sales $5,200 - $5,400 $5,100 - $5,300 Margin Margin MP $2,200 - $2,300 15.6% - 15.9% $1,950 -
Slide 16: Positioned to Deliver Long-Term Value
Positioned to Deliver Long-Term Value Diversified industrial leader well-positioned for profitable growth Excellent portfolio of market-leading business positioned to benefit from megatrends Operating system enables profitability through cycles and high ROIC Strong balance sheet and cash flow suppor
Slide 17: Appendix
Appendix
Slide 18: Backlog Trend
Backlog Trend 4,149 4,083 4,071 4,137 3,933 3,742 3,331 1,162 3,346 3,411 1,295 1,265 1,174 3,143 2,957 1,213 1,074 767 1,047 890 712 2,408 2,375 1,062 2,041 558 926 1,370 714 1,163 2,854 2,818 2,897 2,975 1,081 1,015 2,720 2,668 2,644 2,284 2,456 2,431 810 788 781 528 416 329 273 1,895 1,817 316 26
Slide 19: Q2 Sales by Geography (2024 vs. 2023)
Q2 Sales by Geography (2024 vs. 2023) North America Western Europe Asia-Pacific Rest of World Actual FX-Adj. Actual FX-Adj. Actual FX-Adj. Actual FX-Adj. 5% 5% (14%) (14%) (11%) (10%) (6%) (5%) 7% 8% 10% 11% North America Western Europe Q2 2024 Q2 2023 18% Asia / Pacific 21% 60% 65% Rest of World No
Slide 20: YTD Q2 Sales by Geography (2024 vs. 2023)
YTD Q2 Sales by Geography (2024 vs. 2023) North America Western Europe Asia-Pacific Rest of World Actual FX-Adj. Actual FX-Adj. Actual FX-Adj. Actual FX-Adj. 10% 10% (12%) (13%) (7%) (6%) (12%) (12%) 7% 8% 11% 12% North America Western Europe YTD YTD 19% Q2 2024 Q2 2023 Asia / Pacific 58% 63% 22% Re
Slide 21: Segment Results
Segment Results MATERIALS PROCESSING AERIAL WORK PLATFORMS Q2 '24 Q2 '23 YTD' 24 YTD' 23 Q2 '24 Q2 '23 YTD' 24 YTD' 23 Net Sales $498.6 $577.4 $1,018.6 $1,131.2 Net Sales $881.8 $824.9 $1,654.5 $1,510.8 % Change vs. '23 (13.6%) (10.0%) % Change vs. '23 6.9% 9.5% Operating Profit (Loss) $77.0 $98.2 $
Slide 22: Glossary
Glossary In this document, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. These non- GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. Management believes that presenting these non-GAAP
Slide 23: Glossary: Free Cash Flow
Glossary: 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 mana
Slide 24: Glossary: Free Cash Flow Continued
Glossary: Free Cash Flow Continued Year Ended December 31, 2024 2020 2021 2022 2023 Outlook Net cash provided by (used in) operating activities $ 225.4 $ 293.4 $ 261.2 $ 459.3 $ 495.0 Increase (decrease) in TFS Assets (40.1) (110.6) — — — Capital expenditures, net of proceeds from sale of capital as
Slide 25: Glossary: Net Leverage
Glossary: Net Leverage Net Leverage is defined as Net Debt divided by last twelve months (LTM) EBITDA. We believe that this measure reflects its ability to cover its net debt obligations with results from core operations. June 30, 2024 Net Debt $ 346.3 Divided by: LTM EBITDA 689.7 Net Leverage 0.5x
Slide 26: Glossary: Debt & Net Debt
Glossary: Debt & Net Debt Debt is calculated using the Condensed Consolidated Balance Sheet amounts for Current portion of long- term debt plus Long-term debt, less current portion plus debt from liabilities held for sale. Net Debt is calculated as Debt less Cash and cash equivalents, including amou
Slide 27: Glossary: EBITDA
Glossary: 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 disp
Slide 28: Glossary: ROIC
Glossary: 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 Sto
Slide 29: Glossary: 2024 ROIC Continued
Glossary: 2024 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. Jun '24 Mar '24 Dec '23 Sep '23 Jun '23 Annualized effective tax rate as
Slide 30: Glossary: 2024 ROIC Continued
Glossary: 2024 ROIC Continued Six Months Ended June 30, 2024 Income (loss) from continuing (Provision for) benefit from operations before income taxes income taxes Income tax rate Reconciliation of annualized effective tax rate: As reported $ 310.6 $ (61.4) 19.8% Effect of Adjustments: Tax related t
Slide 31: GAAP to Non-GAAP Reconciliation: Q2 2024
GAAP to Non-GAAP Reconciliation: Q2 2024 Accelerated Q2 2024 Q2 2024 Vesting / Deal Mark-to- Adjusted GAAP Other Related Market (non-GAAP) Net Sales $1,381.7 – – – $1,381.7 Gross Profit 328.4 0.2 – – 328.6 % of Sales 23.8% 23.8% SG&A (135.3) 2.0 – – (133.3) % of Sales (9.8%) (9.6%) Income (Loss) fro
Slide 32: GAAP to Non-GAAP Reconciliation: YTD Q2 2024
GAAP to Non-GAAP Reconciliation: YTD Q2 2024 YTD YTD Accelerated Q2 2024 Q2 2024 Vesting / Deal Mark-to- Adjusted GAAP Severance Related Market (non-GAAP) Net Sales $2,674.2 – – – $2,674.2 Gross Profit 625.7 0.2 – – 625.9 % of Sales 23.4% 23.4% SG&A (274.3) 6.2 – – (268.1) % of Sales (10.3%) (10.0%)