Terex Corporation reported a slight decline in net sales for the fiscal year ending December 31, 2024, totaling $5.127 billion, down from $5.152 billion in 2023. The company's gross profit also decreased to $1.068 billion, representing a gross margin of 20.8%, compared to 22.8% in the previous year. Operating income fell by 17.4% to $526 million, reflecting challenges in the Materials Processing (MP) segment, which saw a 14.6% drop in sales to $1.902 billion. The Aerial Work Platforms (AWP) segment, however, experienced a 2.5% increase in sales, reaching $2.996 billion, while the newly acquired Environmental Solutions Group (ESG) contributed $228 million in sales during its first quarter of operation.
The company’s financial performance was impacted by various factors, including a return to historical ordering patterns and market weakness in Europe, which affected the MP segment significantly. The backlog as of December 31, 2024, was reported at $2.291 billion, a decrease from $3.411 billion in 2023, primarily due to improved customer deliveries and a reduction in lead times. The AWP segment's backlog also decreased by approximately 45%, while the ESG segment reported a backlog of $520 million.
Strategically, Terex completed the acquisition of ESG for $2.01 billion in cash on October 8, 2024, which is expected to enhance its portfolio in the waste and recycling market. This acquisition is anticipated to provide synergies and expand Terex's customer base. The company also reported a significant increase in its long-term debt to $2.584 billion, primarily due to financing the ESG acquisition. Despite this, Terex maintained a strong liquidity position with $1.188 billion available as of year-end, including $388 million in cash and cash equivalents.
Operationally, Terex employed approximately 11,400 team members as of December 31, 2024, with a focus on maintaining a safe working environment, as evidenced by a lost time injury rate of 0.37. The company continues to emphasize its commitment to safety and employee engagement, with 88% of team members participating in a global engagement survey. Looking ahead, Terex anticipates net sales for 2025 to range between $5.3 billion and $5.5 billion, with earnings per share projected between $4.70 and $5.10, driven by the full-year contribution of ESG and expected growth in key markets, despite ongoing macroeconomic uncertainties.
About TEREX CORP
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