Terex Corporation Reports Q1 2025 Financial Results with Decrease in Net Sales and Profit

Terex Corporation reported its financial results for the first quarter of 2025, revealing a net sales figure of $1.229 billion, a decrease of 4.9% compared to $1.292 billion in the same period of 2024. The company's gross profit also fell to $230 million from $297 million year-over-year, reflecting a gross margin of 18.7%, down from 23.0%. Operating profit saw a significant decline of 56.3%, dropping to $69 million from $158 million in the prior year. The net income for the quarter was $21 million, or $0.32 per share, compared to $109 million, or $1.62 per share, in the first quarter of 2024.

The decline in revenue was attributed to lower end-market demand across most geographies within the Materials Processing (MP) and Aerials segments, which was partially offset by contributions from the recently acquired Environmental Solutions Group (ESG). The MP segment reported sales of $382 million, down 26.5% from the previous year, while the Aerials segment saw a 27.8% decrease in sales to $450 million. In contrast, the ESG segment experienced a substantial increase in sales, generating approximately $399 million, a 164.2% rise compared to the prior year, primarily due to the acquisition's impact.

Operationally, Terex's total assets increased to $5.840 billion as of March 31, 2025, up from $5.730 billion at the end of 2024. The company reported a current backlog of $2.6 billion, which is expected to support future revenue growth. The company’s liquidity position remained strong, with cash and cash equivalents totaling $298 million and undrawn availability under its revolving credit facility amounting to $800 million. Terex also repurchased 758,843 shares of common stock for $32 million during the quarter, leaving approximately $54 million available for future repurchases.

Looking ahead, Terex anticipates net sales for the full year 2025 to range between $5.3 billion and $5.5 billion, driven by the ESG acquisition, which is expected to offset declines in organic sales. The company maintains its earnings per share outlook at $4.70 to $5.10, contingent on easing tariffs and macroeconomic conditions. Terex continues to focus on integrating ESG into its operations and achieving operational synergies, with a target of at least $25 million in run-rate synergies by the end of 2026. The company remains vigilant regarding market conditions, including geopolitical uncertainties and inflationary pressures, which could impact its performance.