Terex Corporation Reports 7.6% Sales Increase but Declining Net Income in Q2 2025

Terex Corporation reported its financial results for the second quarter of 2025, revealing a net sales increase of 7.6% to $1.487 billion, compared to $1.382 billion in the same period last year. The growth was primarily driven by contributions from the recently acquired Environmental Solutions Group (ESG), which offset declines in legacy sales. However, net income for the quarter fell to $72 million, down from $141 million in the prior year, resulting in earnings per share of $1.10, compared to $2.09 in the same quarter of 2024. The company's operating profit also decreased to $129 million, down 33.2% from $193 million a year earlier, reflecting challenges in the Aerials and Materials Processing segments.

In the first half of 2025, Terex's net sales reached $2.716 billion, a slight increase from $2.674 billion in the same period of 2024. However, net income for the six months dropped to $93 million from $249 million, with earnings per share falling to $1.41 from $3.71. The decline in profitability was attributed to lower sales volumes, unfavorable product mix, and increased tariffs impacting the Aerials and Materials Processing segments. The company’s gross profit margin also contracted, with gross profit for the first half at $521 million, down from $626 million in 2024.

Strategically, Terex completed the acquisition of ESG in October 2024 for $2.01 billion, which has since contributed significantly to its revenue. The ESG segment reported net sales of $430 million in the second quarter, a substantial increase from $152 million in the same quarter of 2024. This acquisition is expected to enhance Terex's market position in the waste and recycling sector, which now accounts for approximately 30% of its global revenue. The company is also focused on integrating ESG's operations and realizing synergies across its portfolio.

Operationally, Terex's total assets increased to $6.152 billion as of June 30, 2025, up from $5.730 billion at the end of 2024. The company reported a healthy backlog of $2.2 billion, supporting its outlook for the second half of the year. However, the company faced challenges with customer demand, particularly in the Aerials segment, where sales decreased by 17.1% year-over-year. The company’s workforce also saw a reduction, with a weighted average of 64.9 million shares outstanding, down from 66.3 million a year earlier.

Looking ahead, Terex anticipates net sales for 2025 to be between $5.3 billion and $5.5 billion, driven by the ESG acquisition, despite expected declines in legacy sales. The company maintains its earnings per share outlook of $4.70 to $5.10, factoring in the impact of tariffs and macroeconomic uncertainties. Terex continues to focus on managing costs and working capital to ensure liquidity, with $374 million in cash and cash equivalents and $800 million available under its revolving credit facility as of June 30, 2025.