Terex 2025 Q2 Earnings Net Income Declines 48.9%

Terex reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The company experienced a revenue growth of 7.6%, reaching $1.49 billion. However, net income fell significantly, dropping 48.9% to $72 million compared to the previous year. Despite the decline in earnings, Terex maintained its full-year adjusted EPS outlook, expecting earnings between $4.70 and $5.10 per share, in line with previous guidance.

Revenue

Terex's total revenue increased by 7.6%, reaching $1.49 billion in Q2 2025, compared to $1.38 billion in Q2 2024.

Earnings/Net Income

Terex's EPS declined by 47.4% to $1.10 in Q2 2025 from $2.09 in Q2 2024, and net income decreased to $72 million, down 48.9% from $141 million in the previous year. The decreased EPS reflects significant financial challenges.

Price Action

The stock price of Terex edged down by 0.37% during the latest trading day, declined 2.19% over the past full trading week, but increased by 8.93% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Terex shares after announcing a quarter-over-quarter revenue increase and selling them 30 days later has been profitable over the past three years, yielding a return of 109.79%, outperforming the benchmark's 85.57% return. This resulted in an excess return of 24.22%, with a CAGR of 16.10%, showcasing notable capital appreciation. Despite its maximum drawdown of 0.00%, the strategy carried a moderate risk profile with a Sharpe ratio of 0.37 and a volatility of 43.00%.

CEO Commentary

Terex Corporation's President and CEO, Simon Meester, highlighted the strong performance of the Environmental Solutions segment, which surpassed expectations in the second quarter due to robust sales and margins in both the Environmental Solutions Group and Terex Utilities. He acknowledged that these results compensated for challenges in the Aerials segment, where rental customers reduced capital expenditures. Additionally, the Materials Processing segment showed sequential growth and margin improvement. Meester emphasized the strategic implementation and addition of the Environmental Solutions Group as factors enhancing Terex's resilience in a dynamic market.

Guidance

Terex Corporation maintains its full-year adjusted EPS outlook of $4.70 to $5.10. The company is confident in navigating a dynamic environment with strategic initiatives to strengthen its market position and operational performance. Leadership remains optimistic about leveraging the evolving portfolio for future growth amidst industry-wide headwinds.

Additional News

Terex Corporation is focusing on strategic growth initiatives, including potential acquisitions and product developments, to position itself for sustained growth. The company has emphasized the strategic integration of ESG into its portfolio, which contributes to a significant portion of its sales. Terex is also closely monitoring international trade policies, ensuring that a significant portion of its U.S. sales stem from domestically manufactured products to reduce tariff exposure. The company is well-prepared to address potential tariff impacts by leveraging its global operations.