Terex Corporation · NYSE:TEX
Terex — Q2 2025 Earnings Presentation
32 slides from Terex's earnings presentation, Jul 31, 2025
Slide 1: Q2 2025 Earnings Conference Call
Q2 2025 Earnings Conference Call July 31, 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: Q2 2025 Financial Highlights and FY Outlook
Q2 2025 Financial Highlights and FY Outlook $1.5B 11.0% 12.2% 108% $1.49 Sales Adj. Operating Adj. EBITDA Free Cash Flow Adj. EPS* Margin* Margin* Conversion* Maintaining 2025 FY EPS Outlook of $4.70 - $5.10 *Refer to the appendix for GAAP to non-GAAP reconciliation. 3
Slide 4: 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* Tariff Assumptions Q1-2025 Outlook (May 2, 2025) • China tariffs to ease from 145% • Other tariffs to remain at May 2nd levels, including UK and ROW reciprocal at ~10%, and section 232 steel at 25% • USMCA q
Slide 5: Market Strength in Waste & Recycling, Utilities and Infrastructure
Market Strength in Waste & Recycling, Utilities and Infrastructure $4 Billion addressable equipment market1 characterized by steady growth, low cyclicality Electrification and transmission investments continue to ramp up Significant IIJA & public spending continues to flow Mega project activity rema
Slide 6: Creating Value by Achieving Synergies
Creating Value by Achieving Synergies 6
Slide 7: Q2 Financial Performance
Q2 Financial Performance USD Millions, except Earnings per Share Q2 20251 Q2 20242 Q2 2025 Net Sales Bridge Q2 2024 $1,382 Net Sales $ 1,487 $ 1,382 Legacy, FX-Neutral Change (179) (13.0)% FX Impact 13 0.9% Operating Profit* 164 195 ESG Change 271 Q2 2025 $1,487 7.6% % Margin* 11.0% 14.1% Q2 2025 Fi
Slide 8: Aerials Financial Highlights
Aerials Financial Highlights Q2 2025 Q2 2024 Sales 607 732 % Change vs 2024 (17.1)% % FX Neutral Change vs 2024 (17.8)% Operating Margin* 8.0% 15.7% • Overall Q2 sales in line with expectations primarily driven by replacement demand • Sequential margin improvement of 500 b.p. impacted by unfavorable
Slide 9: MP Financial Highlights
MP Financial Highlights Q2 2025 Q2 2024 Sales 454 499 % Change vs 2024 (9.0)% % FX Neutral Change vs 2024 (10.6)% Operating Margin* 12.7% 15.6% • Sequential sales growth of 19% and 270 b.p. margin improvement • European market remains challenging. High fleet utilization and dealer de-stocking contin
Slide 10: ES Financial Highlights
ES Financial Highlights Q2 2025* Q2 20241 Sales 430 381 % Change vs 2024 12.9% Operating Margin 19.1% 16.8% 1 Shown on a pro forma basis • Continued strong execution in ESG and Terex Utilities • Growth across major product areas including Refuse Collection Vehicles (RCVs), Utility Vehicles, Compacto
Slide 11: Continue to Return Value to Shareholders and Invest in Capex to Support Future Growth
Continue to Return Value to Shareholders and Invest in Capex to Support Future Growth $24M Capital Expenditures to support future growth $21M Share Repurchases, announcing new $150M authorization $11M Dividends Paid, ~1.5% dividend yield Investing to expand ESG Heil Refuse Collection Vehicle capacit
Slide 12: Segment Bookings
Segment Bookings Material Processing Aerials Environmental Solutions* Bookings at $4.7B LTM • Q2 pro forma bookings up 19% YOY • Reflects return to normal seasonality • Supports 2025 second half outlook Figures in USD Millions 12 *ES shown on a pro forma basis
Slide 13: Maintaining 2025 FY EPS Outlook of $4.70 - $5.10
Maintaining 2025 FY EPS Outlook of $4.70 - $5.10 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 ~$640 Materials Processing EPS1,3 $4.70 - $5.10 (HSD) Free Cash Flow1,4 $300
Slide 14: Positioned to Deliver Long-Term Value
Positioned to Deliver Long-Term Value 14
Slide 15: Appendix
TEREX. Appendix EXECUTE . INNOVATE . GROW TEREX.
Slide 16: Q2 YOY Sales by Geography
Q2 YOY Sales by Geography North America Western Europe Asia-Pacific Rest of World Actual Legacy* Actual FX-Adj. Actual FX-Adj. Actual FX-Adj. 22% (9)% (13%) (17%) (21%) (22%) (25%) (26%) *Legacy excludes ESG Q2 2025 Q2 2024 16
Slide 17: YTD Q2 YOY Sales by Geography
YTD Q2 YOY Sales by Geography North America Western Europe Asia-Pacific Rest of World Actual Legacy* Actual FX-Adj. Actual FX-Adj. Actual FX-Adj. 18% (14%) (26%) (27%) (26%) (25%) (25%) (23%) *Legacy excludes ESG Q2 2025 Q2 2024 17
Slide 18: Backlog Trend
Backlog Trend Sequential Year on Year ES* $(74) (6%) $(152) (12%) MP (28) (7%) (159) (28%) Aerials (296) (29%) (402) (36%) Total $(398) (15%) $(713) (25%) Figures in USD Millions; Backlog includes deliveries beyond 12 months which reflects continuing operations 18 *ES shown on a pro forma basis
Slide 19: 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 20: GAAP to Non-GAAP Reconciliation: Q2 2025
GAAP to Non-GAAP Reconciliation: Q2 2025 Q2 2025 Q2 2025 Restructuring Deal Purchase Price Equity Security Adjusted (non- GAAP and Other Related Accounting Related Tax GAAP) Net Sales $1,487 — — — — — $1,487 Gross Profit 291 7 — 20 — — 318 % of Sales 19.6% 21.4% SG&A (162) 5 3 — — — (154) % of Sales
Slide 21: 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 Severance Related Market (non-GAAP) Net Sales $1,382 — — — $1,382 Gross Profit 329 — — — 329 % of Sales 23.8% 23.8% SG&A (136) 2 — — (134) % of Sales (9.8%) (9.6%) Operating Profit $193 2 — — $
Slide 22: GAAP to Non-GAAP Reconciliation: YTD Q2 2025
GAAP to Non-GAAP Reconciliation: YTD Q2 2025 YTD YTD Purchase Q2 2025 Q2 2025 Restructuring Deal Price Litigation Equity Security Adjusted (non- GAAP and Other1 Related Accounting Related Related Tax GAAP) Net Sales $2,716 — — — — — — $2,716 Gross Profit 521 9 — 41 — — — 571 % of Sales 19.2% 21.0% S
Slide 23: 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 — — — $2,674 Gross Profit 626 — — — 626 % of Sales 23.4% 23.4% SG&A (275) 7 — — (268) % of Sales (10.3%) (10.0%) Operating Profi
Slide 24: Segment Operating Profit and Adjusted Operating Profit: Q2 2025 and 2024
Segment Operating Profit and Adjusted Operating Profit: Q2 2025 and 2024 Three Months Ended June 30, 2025 2024 Aerials MP ES Aerials MP ES Operating Profit $ 46 $ 49 $ 61 $ 115 $ 77 $ 19 Restructuring and Other 3 9 — — 1 — Purchase Price Accounting — — 21 — — — Litigation Related — — — — — — Adjuste
Slide 25: Segment Operating Profit and Adjusted Operating Profit: YTD Q2 2025 and 2024
Segment Operating Profit and Adjusted Operating Profit: YTD Q2 2025 and 2024 Six Months Ended June 30, 2025 2024 Aerials MP ES Aerials MP ES Operating Profit $ 49 $ 85 $ 117 $ 207 $ 149 $ 34 Restructuring and Other 3 11 — 1 1 — Purchase Price Accounting — — 42 — — — Litigation Related 10 — — — — — A
Slide 26: Free Cash Flow
Free Cash Flow The Company calculates non-GAAP measures of free cash flow and free cash flow conversion. The Company defines free cash flow as Net cash provided by (used in) operating activities less Capital expenditures, net of proceeds from sale of capital assets and free cash flow conversion as f
Slide 27: 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 28: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Three Months Ended June 30, 2025 2024 Net income (loss) $ 72 $ 141 Interest & Other (Income) Expense 40 19 Provision for (benefit from) income taxes 17 33 Operating profit 129 193 Depreciation 17 14 Amortization 22 1 Non-Cash Interest Costs (2) — EBITDA $ 166 $ 208 Restruc
Slide 29: 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 30: 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. Jun '25 Mar '25 Dec '24 Sep '24 Jun '24 Annualized effective tax rate as adjusted1 15.7
Slide 31: ROIC Continued
ROIC Continued 06/30/25 03/31/25 12/31/24 09/30/24 Reconciliation of operating profit: Operating profit as reported $ 129 $ 69 $ 53 $ 122 Adjustments: Restructuring and Other 12 6 4 5 Purchase price accounting 20 21 38 — Deal related 3 5 2 — Litigation related — 10 — — Operating profit as adjusted $
Slide 32: ROIC Continued
ROIC Continued Six Months Ended June 30, 2025 Income (loss) before income (Provision for) benefit from taxes income taxes Income tax rate Reconciliation of annualized effective tax rate: As reported $ 115 $ (22) 18.9% Effect of Adjustments: Restructuring and Other 18 (4) Purchase price accounting 42