Terex Reports Fourth Quarter and Full-Year 2024 Results: A Resilient Performance Amid Industry Challenges

Terex Corporation (NYSE: TEX), a global manufacturer of materials processing machinery and aerial work platforms, has released its fourth quarter and full-year 2024 results, showcasing a resilient performance amidst industry-wide challenges. The company's ability to adapt and innovate has positioned it well to navigate the ever-changing landscape of the heavy equipment industry.



In the fourth quarter of 2024, Terex reported net sales of $1.2 billion, a 2% increase compared to the fourth quarter of 2023. This growth was primarily driven by the addition of Environmental Solutions Group (ESG), which contributed to the company's financial performance. Adjusted income from operations for the quarter was $97 million, or 7.8% of net sales, compared to $133 million, or 10.9% of net sales, during the prior year. The year-over-year change was primarily due to lower sales volume, lower production resulting in unfavorable manufacturing variances, and unfavorable mix in the legacy businesses, partially offset by cost reductions, lower incentive compensation, and ESG accretion.

For the full-year 2024, Terex's net sales were $5.1 billion, down slightly compared to $5.2 billion in the full-year 2023. The decline was primarily driven by industry-wide channel adjustments in Materials Processing (MP), offset by modest growth in Aerial Work Platforms (AWP) and the fourth quarter addition of ESG. Adjusted income from operations for the full-year 2024 was $582 million, or 11.3% of net sales, compared to $652 million, or 12.7% of net sales in the prior year. The decrease was primarily driven by lower sales volume, unfavorable manufacturing variances, and mix in the legacy businesses, partially offset by cost reductions, lower incentive compensation, and fourth quarter ESG accretion.

Terex's acquisition of ESG in the fourth quarter of 2024 has proven to be a strategic move, contributing to the company's financial performance and reducing its cyclicality. As Simon Meester, Terex's President and Chief Executive Officer, stated, "ESG adds a non-cyclical, financially accretive, and market-leading business to Terex's portfolio with tangible synergies in the fast-growing waste and recycling end market." By integrating ESG and leveraging Terex's operating system, the company aims to drive sustainable, accelerated long-term growth.



As Terex looks ahead to 2025, it expects the industry-wide channel dynamics that impacted its Aerials and MP businesses in the back half of 2024 to carry into the first half of 2025. However, the company also expects ESG and Terex Utilities to carry strong momentum into 2025 and continue to grow. Overall, Terex expects 2025 net sales of $5.3 to $5.5 billion, earnings per share between $4.70 and $5.10, and free cash flow of $300 to $350 million.

In conclusion, Terex's fourth quarter and full-year 2024 results demonstrate the company's ability to adapt and innovate in the face of industry-wide challenges. The acquisition of ESG has proven to be a strategic move, contributing to Terex's financial performance and reducing its cyclicality. As the company looks ahead to 2025, it remains well-positioned to capitalize on growth opportunities and maintain its strong performance.