Slide 1: Q4 2024 Earnings Conference Call
Q4 2024 Earnings Conference Call February 6, 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 Total Recordable Incident Rate (TRIR) 3.2 3.2 3.0 2.8 2.8 2.6 3.27 2.98 2.09 1.52 1.77 1.93 1.98 1.49 2017 2018 2019 2020 2021 2022 2023 2024 TRIR Machinery Manufacturing Average TEREX WAY VALUES... SUPPORT A STRONG COMPANY CULTURE Integrity •
Slide 4: FY 2024 Financial Highlights
FY 2024 Financial Highlights $5.1B 11.3% 12.5% 19.4% $6.11 Sales Adjusted Adjusted EBITDA Adjusted ROIC* Adjusted Operating Margin* EPS* Margin* *Refer to the appendix for GAAP to non-GAAP reconciliation. 4
Slide 5: ESG Performance and Integration On Track
ESG Performance and Integration On Track 5
Slide 6: Market Strength in Waste & Recycling, Utilities and Infrastructure
Market Strength in Waste & Recycling, Utilities and Infrastructure Macro Tailwinds Macro Headwinds • $4 Billion addressable equipment market1 • Economic weakness in Europe impacting scrap material handling demand • Steady growth, low cyclicality • Electrification and transmission • Slow permitting a
Slide 7: Well-Positioned for Sustained Growth
Well-Positioned for Sustained Growth Sources: McKinsey Global Institute; J.P. Morgan; Precedence Research; C&D Recycling Market: Municipal Waste Recycling Market 7
Slide 8: Strategic Priorities
Strategic Priorities Build on Strong Foundation and Accelerate Profitable Growth Maximize Through Cycle Performance and Shareholder Returns Execute + Leverage Terex Operating System * Optimize global footprint * Reduce fixed costs to improve through-cycle performance Innovate + Bring new products an
Slide 9: Innovative New Terex Equipment
Innovative New Terex Equipment Next Generation Genie GSTM Slab Scissor Lifts previewing at ARA Heil RevAMP eASL All-electric Refuse Collection Vehicle Body on route Terex Green-Tec CT8 Brush Chipper devouring cherry logs in New Hampshire 9
Slide 10: Q4 Financial Performance
Q4 Financial Performance Q4 2024 Financial Call-Outs EPS USD Millions, except Earnings per Share Q4 2024 Q4 2023 GAAP $(0.03) Accelerated Vesting / Severance 0.04 Net Sales $ 1,241 $ 1,223 Deal Related 0.21 Purchase Price Accounting 0.43 % Change vs 2023 +1.5% Tax 0.12 Adjusted $0.77 Income (loss) f
Slide 11: Full Year Financial Performance
Full Year Financial Performance FY 2024 Financial Call-Outs EPS USD Millions, except Earnings per Share FY 2024 FY 2023 GAAP $4.96 Accelerated Vesting / Severance 0.17 Net Sales $ 5,127 $ 5,152 Deal Related 0.33 Purchase Price Accounting 0.43 Mark-to-Market 0.10 % Change vs 2023 (0.5%) Tax 0.12 Adju
Slide 12: AWP Financial Highlights
AWP Financial Highlights Adj. Operating Sales Adj. EBITDA* Margin* 2024 2023 2024 2023 2024 2023 FY 2,996 2,922 11.6% 12.7% 378 403 +2.5% YoY (110) bps (6.2)% YoY Q4 573 660 3.3% 9.5% 27 75 (13.2)% YoY (620) bps (64)% YoY • Second half channel adjustments impacted sales growth • Q4 margins consisten
Slide 13: MP Financial Highlights
MP Financial Highlights Adj. Operating Sales Adj. EBITDA* Margin* 2024 2023 2024 2023 2024 2023 FY 1,902 2,227 13.6% 16.4% 276 381 (14.6)% YoY (280) bps (27.6)% YoY Q4 439 555 10.9% 16.2% 52 94 (20.9)% YoY (530) bps (44.7)% YoY • Challenging European market and channel inventory adjustments impacted
Slide 14: ESG Financial Highlights
ESG Financial Highlights Adj. Operating Sales Adj. EBITDA* Margin* 2024 2024 2024 Q4 228 21.9% 51 (post Oct.8 close) • Great execution in the Q4 post-close period • Results reflect growth and margin improvement compared with the prior year period Figures in USD Millions 14 *Refer to the appendix for
Slide 15: Solid Balance Sheet and Flexible Capital Structure
Solid Balance Sheet and Flexible Capital Structure Funded ESG acquisition, and maintained a solid balance sheet Achieved ROIC* of 19.4% on a TTM basis Flexible capital structure with no debt maturities until 2029 2024 Free Cash Flow* of $190 million Continued to invest in CAPEX, funding innovation a
Slide 16: Returning to Normal Ordering Patterns
Returning to Normal Ordering Patterns Backlog at $2.3B Q4 Book to Bill ratio of 116% • ESG backlog up 16% year over year • Return to normal seasonality with strong national account bookings in AWP. Aerials Q4 book to bill of 153% • MP and AWP backlog in line with historical norms • MP Q4 book to bil
Slide 17: 2025 Outlook
2025 Outlook Terex Outlook Segment Revenue Outlook Revenue Mix USD Millions, except Earnings per Share Net Sales $5,300 - $5,500 Aerials Segment Operating Margin1,2 ~12% (LDD) EBITDA1 ~$660 Materials Processing Interest / Other Expense ~$175 Tax Rate1 ~20% (HSD) EPS1,3 $4.70 - $5.10 Environmental So
Slide 18: Positioned to Deliver Long-Term Value
Positioned to Deliver Long-Term Value Diversified industrial leader well-positioned for profitable growth Market-leading business with attractive end markets and long-term growth drivers Significantly improved through-cycle financial performance Strong balance sheet and cash flow support future grow
Slide 19: Appendix
GROW EXECUTE x Lu : Lw =
Slide 20: Backlog Trend
Backlog Trend 4,149 4,083 4,071 4,137 3,933 3,742 3,331 1,295 1,162 3,346 3,411 1,265 1,174 3,143 2,957 1,213 1,074 767 1,047 890 712 2,408 2,375 2,291 2,041 1,062 558 520 926 1,611 1,370 714 320 1,081 1,015 2,854 2,818 2,897 2,975 371 2,720 2,668 2,644 528 2,284 2,456 2,431 328 788 781 1,895 273 1,
Slide 21: Q4 Sales by Geography (2024 vs. 2023)
Q4 Sales by Geography (2024 vs. 2023) North America Western Europe Asia / Pacific Rest of World Actual Legacy* Actual FX-Adj. Actual FX-Adj. Actual FX-Adj. 21% (10)% (28%) (31%) (24)% (26)% (28%) (28%) *Legacy excludes ESG 6% 9% 11% North America 15% Western Europe 13% Q4 2024 Q4 2023 Asia / Pacific
Slide 22: Full-Year Sales by Geography (2024 vs. 2023)
Full-Year Sales by Geography (2024 vs. 2023) North America Western Europe Asia / Pacific Rest of World Actual Legacy* Actual FX-Adj. Actual FX-Adj. Actual FX-Adj. 11% 4% (18)% (19)% (16%) (16)% (16)% (16)% *Legacy excludes ESG 6% 8% 11% 13% North America Western Europe 17% FY 2024 FY 2023 Asia / Pac
Slide 23: Segment Results
Segment Results MATERIALS PROCESSING AERIAL WORK PLATFORMS Q4 '24 Q4 '23 FY '24 FY '23 Q4 '24 Q4 '23 FY '24 FY '23 Net Sales $439 $555 $1,902 $2,227 Net Sales $573 $660 $2,996 $2,922 % Change vs. '23 (20.9%) (14.6%) % Change vs. '23 (13.2%) 2.5% Operating Profit (Loss)* $48 $90 $258 $365 Operating P
Slide 24: 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 25: GAAP to Non-GAAP Reconciliation: Q4 2024
GAAP to Non-GAAP Reconciliation: Q4 2024 Accelerated Purchase Q4 2024 Vesting / Price Q4 2024 GAAP Severance Deal Related Accounting Tax Non-GAAP Net Sales $1,241 — — — — $1,241 Gross Profit 197 1 — 38 — 236 % of Sales 15.9% 19.0% SG&A (144) 3 2 — — (139) % of Sales (11.6%) (11.2%) Income (Loss) fro
Slide 26: GAAP to Non-GAAP Reconciliation: Q4 2023
GAAP to Non-GAAP Reconciliation: Q4 2023 Accelerated Product Q4 2023 Vesting / Liability Mark-to- Q4 2023 GAAP Severance Verdict Market Tax Non-GAAP Net Sales $1,223 — — — — $1,223 Gross Profit 263 — 4 — — 267 % of Sales 21.5% 21.8% SG&A (147) 13 — — — (134) % of Sales (12.0%) (11.0%) Income (Loss)
Slide 27: GAAP to Non-GAAP Reconciliation: FY 2024
GAAP to Non-GAAP Reconciliation: FY 2024 Accelerated Purchase FY 2024 Vesting / Deal Price Mark-to- FY 2024 GAAP Severance Related Accounting Market Tax Non-GAAP Net Sales $5,127 — — — — — $5,127 Gross Profit 1,068 6 — 38 — — 1,112 % of Sales 20.8% 21.7% SG&A (542) 10 2 — — — (530) % of Sales (10.6%
Slide 28: GAAP to Non-GAAP Reconciliation: FY 2023
GAAP to Non-GAAP Reconciliation: FY 2023 Accelerated Product FY 2023 Vesting / Liability OKC Sale Mark-to- FY 2023 GAAP Severance Verdict Gain Market Tax Non-GAAP Net Sales $5,152 — — — — — $5,152 Gross Profit 1,177 — 4 — — — 1,181 % of Sales 22.8% 22.9% SG&A (540) 13 — (2) — — (529) % of Sales (10.
Slide 29: Segment Operating Profit and Adjusted Operating Profit: Q4 2024 and 2023
Segment Operating Profit and Adjusted Operating Profit: Q4 2024 and 2023 USD Millions Three Months Ended December 31, 2024 2023 AWP MP ESG AWP MP Income (loss) from operations $18 $47 $12 $61 $84 Accelerated Vesting / Severance 1 1 — 2 2 Purchase Price Accounting — — 38 — — Product Liability Verdict
Slide 30: Segment Operating Profit and Adjusted Operating Profit: FY 2024 and 2023
Segment Operating Profit and Adjusted Operating Profit: FY 2024 and 2023 USD Millions Twelve Months Ended December 31, 2024 2023 AWP MP ESG AWP MP Income (loss) from operations $342 $252 $12 $371 $359 Accelerated Vesting / Severance 5 6 — 2 2 Purchase Price Accounting — — 38 — — Product Liability Ve
Slide 31: 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 32: EBITDA
EBITDA EBITDA is defined as earnings, before interest, other non-operating income (loss), income (loss) attributable to non-controlling USD Millions interest, taxes, depreciation and amortization. The Company calculates this by subtracting the following items from Net income (loss): (Gain) loss on d
Slide 33: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Three Months Ended December 31, Twelve Months Ended December 31, USD Millions 2024 2023 2024 2023 Net income (loss) ($2) $127 $335 $518 (Gain) loss on disposition of discontinued operations - net of tax — 1 — (1) Income (loss) from continuing operations (2) 128 335 517 Pro
Slide 34: Segment EBITDA and Adjusted EBITDA: Q4 2024 and 2023
Segment EBITDA and Adjusted EBITDA: Q4 2024 and 2023 USD Millions Three Months Ended December 31, 2024 2023 AWP MP ESG AWP MP Income (loss) from operations $18 $47 $12 $61 $84 Depreciation 8 3 1 12 3 Amortization — 1 18 — 1 Non-Cash Interest Costs — — — — — EBITDA 26 51 31 73 88 Accelerated Vesting
Slide 35: Segment EBITDA and Adjusted EBITDA: FY 2024 and 2023
Segment EBITDA and Adjusted EBITDA: FY 2024 and 2023 USD Millions Twelve Months Ended December 31, 2024 2023 AWP MP ESG AWP MP Income (loss) from operations $342 $252 $12 $371 $359 Depreciation 31 16 1 32 14 Amortization — 2 18 — 2 Non-Cash Interest Costs — — — — — EBITDA 373 270 31 403 375 Accelera
Slide 36: 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 37: 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 USDmonths Millions ended for the periods referenced in the tables below. Dec '24 Sep '24 Jun '24 Mar '24 Dec '23 Effective tax rate as adjusted 15.6
Slide 38: ROIC Continued
ROIC Continued 12/31/24 09/30/24 06/30/24 03/31/24 Reconciliation of income (loss) from operations: Income (loss) from operations as reported 53 122 193 158 Adjustments: Accelerated vesting / Severance 4 5 3 4 Purchase price accounting 38 — — — Deal related 2 — — — Income (loss) from operations as a
Slide 39: ROIC Continued
ROIC Continued Twelve Months Ended December 31, 2024 Income (loss) from continuing (Provision for) benefit from operations before income taxes income taxes Income tax rate Reconciliation of the full year 2024 effective tax rate: As reported $ 408 $ (73) 17.8% Effect of Adjustments: Accelerated vesti