Terex Q1 Earnings & Revenues Beat Estimates, Decline Y/Y on Low Volumes

Terex Corporation TEX reported adjusted earnings per share of 83 cents, which beat the Zacks Consensus Estimate of 49 cents. The bottom line, however, plunged 52% from the prior-year quarter’s adjusted figure of $1.74 per share. This downfall in earnings was attributed to lower sales volume, Terex’s production adjustment efforts in the wake of weak demand and unfavorable mix in the Materials Processing segment. This was somewhat offset by gains from the company’s cost control initiatives and contribution from the acquisition of Environmental Solutions Group.Including one-time items, Terex reported earnings of 31 cents per share in the first quarter of 2025 compared with $1.60 in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Terex Corporation Price, Consensus and EPS Surprise Terex Corporation price-consensus-eps-surprise-chart | Terex Corporation QuoteTerex’s Revenues Down Y/Y on Low VolumesRevenues declined 5% year over year to $1.23 billion, which surpassed the Zacks Consensus Estimate of $1.22 billion. In October 2024, Terex completed the acquisition of Environmental Solutions Group (“ESG”), adding a market leader in waste and recycling to its portfolio. In the first quarter of 2025, ESG accounted for around one-third of TEX’s total revenues. This contribution was offset by declines in the Materials Processing and Aerial Work Platforms segments. This was in line with Terex’s recent efforts to reset production levels to match weak demand and position the segments for sequential growth going forward. Excluding ESG, Terex’s organic revenues declined 25% year over year in the quarter. Bookings increased 5.3% sequentially to $1.5 billion, reflecting a book-to-bill of 124%, led by Aerial Work Platforms at 144%.TEX Witness Margin Contraction in Q1The cost of goods sold inched up 0.4% year over year to $999 million. Gross profit fell 23% to $230 million. Selling, general and administrative expenses were $161 million, up 16% from the prior-year quarter.Terex reported an operating profit of $69 million, which marked a 56% plunge from the prior-year quarter. The operating margin was 5.6% compared with 12.2% in the last quarter.Adjusted operating profit was $111 million compared with $163 million in the year-ago quarter. Adjusted operating margin was 9.1%, a 350-basis point contraction from the year-ago quarter.TEX’s Segment Performances in Q1The Material Processing segment’s revenues totaled $382 million, reflecting a year-over-year fall of 27% due to channel adjustments and weak end-market demand across most product lines and regions. The segment reported an operating income of $36 million, down 50% year over year. Adjusted operating profit was $38 million.The Aerial Work Platforms segment generated revenues of $450 million, down 28% from the year-ago quarter.  The segment reported an operating profit of $2 million, which marked a 98% plunge year over year. Adjusted operating profit was $14 million in the first quarter of 2025 compared with $93 million.The Environmental Services (ES) segment (which includes ESG) reported revenues of $399 million and an operating profit of $56 million. Adjusted operating profit was $77 million. Terex’s Cash Flow & Balance Sheet UpdatesTerex had cash and cash equivalents of $298 million as of March 31, 2025, compared with $388 million as of Dec. 31, 2024. The company used $21 million in cash from operating activities in the first quarter of 2025 compared with $34 million in the prior-year period. Terex returned $43 million to shareholders in the quarter through share repurchases and dividends.Terex Maintains 2025 OutlookTerex expects sales for the Materials Processing segment to be down in high single digits compared with the prior-year baseline of $1.9 billion. The AWP segment’s revenues are expected to decline in low double digits from the prior-year baseline of $2.41 billion.Net sales are projected to be in the range of $5.3-$5.5 billion. The midpoint of the guidance implies year-over-year growth of 6%.  EBITDA is expected to be around $660 million. Terex expects adjusted earnings per share to be between $4.70 and $5.10. The guidance indicates a year-over-year drop of 20% at the midpoint from the earnings of $6.11 per share reported in 2024.TEX Stock’s Price Performance & Zacks RankTerex's shares have lost 33.5% over the past year compared with the industry’s 7.1% decline.Image Source: Zacks Investment ResearchTEX currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Terex’s Industry PeersCaterpillar Inc. CAT reported adjusted earnings per share of $4.25 for the first quarter of 2025, which missed the Zacks Consensus Estimate of $4.30 by a margin of 1%. The bottom-line figure was down 24% year over year due to volume declines across its segments.Caterpillar reported first-quarter revenues of around $14.2 billion, which missed the consensus estimate of $14.5 billion. The top line declined 10% year over year due to a decline in volumes in its segments and unfavorable price realization and currency impact. The Manitowoc Company MTW reported a loss of 16 cents per share in the first quarter of 2025, missing the Zacks Consensus Estimate of a loss of 10 cents per share. The company had reported earnings per share of 14 cents in the first quarter of 2024. Manitowoc’s revenues were down 5% to $471 million, missing the consensus estimate of $480 million. Hyster-Yale, Inc. HY reported earnings of 49 cents per share, beating the Zacks Consensus Estimate of 47 cents. It marked an 83% plunge from the year-ago quarter.Hyster-Yale’s revenues declined 14% to $910.4 million, missing the consensus estimate of $948 million.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Hyster-Yale, Inc. (HY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks