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Terex Corporation's Financial Overview for Q3 2025

On October 30, 2025, Terex Corporation (NYSE: TEX), a leading global manufacturer specializing in equipment for various industries, reported its financial results for the third quarter of 2025, demonstrating robust performance despite ongoing challenges in the marketplace. The company achieved total sales of $1.4 billion, reporting an operating margin of 10.1%, and an adjusted operating margin of 12.1%. Notably, Terex generated $130 million in free cash flow, highlighting its strong cash management abilities. The company also maintained its full-year adjusted earnings per share (EPS) outlook, projecting between $4.70 and $5.10.

Key Financial Highlights

1. Growth in Bookings: Terex saw significant growth in bookings this quarter, with $1 billion reported, representing a 57% increase year-over-year on a pro forma basis. The book-to-bill ratio stood at 72%, consistent with historical seasonal trends.
2. Sales Performance: Total net sales of $1.4 billion reflected an increase of 14.4% compared to the same period in 2024. However, the legacy revenue experienced a decline of 8.2% year-over-year, primarily attributed to decreased demand in aerial and materials processing segments.
3. Higher Operating Profit: Operating profit reached $140 million, translating to 10.1% of net sales, slightly higher than the $122 million, or 10.1%, reported during the same quarter last year. Adjusted operating profit improved to $168 million, showcasing an enhanced margin performance.
4. Net Income Analysis: The company reported net income of $65 million, or $0.98 per share, down from $88 million, or $1.31 per share, compared to Q3 2024. However, adjusted net income was up slightly to $100 million, or $1.50 per share.
5. Return on Invested Capital: Terex's return on invested capital was 11.9%, affirming its effective capital deployment strategy.

Segment Performance Breakdown

• - Aerials: Sales in this segment totaled $537 million, down 13.2% year-over-year due to reduced capital expenditure from rental customers focused on replacing existing equipment. Operating profit declined to $45 million.
• - Materials Processing: With net sales of $417 million, this segment experienced a 6.1% drop primarily due to weaker demand within the North American concrete market. Operating profit was noted at $52 million.
• - Environmental Solutions: This segment showcased resilience with a 13.6% increase in sales to $435 million. Strong demand for refuse collection vehicles drove significant operating profit of $58 million.

Future Outlook

Looking forward, Terex CEO Simon Meester expressed confidence in the company’s strong operational performance, maintaining robust financial expectations despite turbulent market conditions. The adjusted EPS outlook remains intact, reflecting the company’s resilience and adaptability amidst changing tariffs and market challenges. CFO Jennifer Kong-Picarello also highlighted their strong cash flow generation, indicating a cash conversion of 200% for the quarter, which underscores their commitment to returning value to shareholders while investing in long-term growth strategies.

As Terex navigates evolving market dynamics, including anticipated increases in tariff-related costs, the management team remains dedicated to ensuring sustainable profitability and shareholder value. The results signal a promising trajectory for Terex as it continues to optimize its diverse portfolio, ensuring robust support for future growth in the ever-evolving industrial equipment sector.