#United States #Norwalk #Q2 2025 #Terex Corporation #Environmental Solutions

Terex Corporation Reports Impressive Second Quarter 2025 Results

On July 31, 2025, Terex Corporation (NYSE: TEX) released its financial results for the second quarter of 2025, showcasing noteworthy developments across its diverse operational segments. The company, known for manufacturing materials processing machinery and waste solutions, reported net sales of $1.5 billion, reflecting a substantial 7.6% increase compared to Q2 2024.

CEO Insights
Simon Meester, Terex's President and CEO, emphasized the strategic transformation within the company, stating, "Our overall financial performance demonstrates the power of the evolving Terex portfolio." He highlighted the exceptional performance of the Environmental Solutions (ES) segment, which significantly outperformed expectations, despite facing challenges in the Aerials category due to reduced capital expenditure from independent rental customers.

The Environmental Solutions Group (ESG) and Terex Utilities sectors displayed robust sales and margin results, effectively offsetting the downturns in the Aerials segment, where net sales dipped by 17.1%, amounting to $607 million.

Operational and Financial Highlights

The highlights of Terex's second quarter results include:

• - Bookings reached $1.1 billion, marking 19% year-on-year growth and maintaining a book-to-bill ratio of 73%, consistent with usual seasonal booking patterns.
• - Operating profit settled at $129 million, representing 8.7% of net sales, though lower than the $193 million posted in the prior year, primarily due to declines in legacy sales volume in certain market segments.
• - Net income for the quarter was $72 million, translating to $1.09 per diluted share, compared to $141 million and $2.08 per diluted share from Q2 2024.
• - The adjusted net income stood at $98 million, or $1.49 per diluted share, a decrease from the previous year's adjusted figure of $146 million.

Segment-Specific Performance

Environmental Solutions

One of the standout performers during this period was the Environmental Solutions sector, which reported sales of $430 million, an impressive increase of 12.9% year-over-year. This growth was bolstered by a high demand for refuse collection vehicles and robust installation rates in Terex Utilities. The operating profit within this segment surged to $61 million, marking 14.2% of net sales, with adjusted operating profit reaching $82 million—a substantial improvement reflecting enhanced margins.

Aerials

In contrast, the Aerials segment experienced a downturn, registering sales of $607 million, a 17.1% decline partially attributed to rental customers prioritizing replacement investments over new equipment purchases. Operating profits for Aerials fell to $46 million, or 7.6% of net sales.

Materials Processing

The Materials Processing division faced expectations of reduced demand as well, achieving net sales of $454 million, down 9.0% compared to the previous year. Operating profit for this sector stood at $49 million, or 10.8% of net sales, with a realization of cost-saving measures partially offsetting lower volume.

Strong Liquidity Position

Terex's liquidity position remains strong, showcasing a free cash flow of $78 million, an increase from $43 million in the previous year. The company's total available liquidity amounts to $1.2 billion as of June 30, 2025. Notably, Terex has also authorized a new $150 million share repurchase program, further emphasizing its commitment towards shareholder value.

Full-Year 2025 Outlook

Looking ahead, Terex maintained its full-year EPS outlook in the range of $4.70 to $5.10, and net sales anticipated to fall between $5.3 billion and $5.5 billion. CFO Jennifer Kong-Picarello remarked, "I was pleased with our strong cash flow generation in the second quarter... As a global company with a significant footprint in the United States and around the world, we have the flexibility to navigate various tariff scenarios."

In summary, Terex Corporation's second quarter results reveal both a challenging demand environment in some sectors and strong performance in emerging segments like environmental solutions. The company's broad strategy seems to focus on resilience and adaptability, which positions it well for future growth.