Financial Performance - In Q4 2025, the company reported revenue of $1.318 billion, a year-over-year increase of 6.20%, and a net profit of $63 million, a significant increase of 3250%, marking a return to profitability [1] - For the full year 2025, total revenue reached $5.421 billion, up 5.73% compared to the previous year, with earnings per share (EPS) of $3.36, significantly exceeding market expectations [1] Financial Condition - The debt-to-equity ratio improved from 135.7% to 32.09% over the past five years, well below the industry average of 194.31%, indicating enhanced debt repayment capacity [2] - In Q4, operating cash flow was $205 million, with free cash flow at $171 million; for the full year, operating cash flow totaled $440 million, supporting a dividend payout of $0.68 per share and a share buyback plan of $55 million in Q2 2025 [2] Operating Status - The gross margin for Q4 was 18.82%, while the gross margin for Q3 2025 had risen to 20.33%, benefiting from optimized product mix [3] - The company's price-to-earnings (P/E) ratio was 7.38 and the price-to-sales (P/S) ratio was 0.67, both lower than the industry averages of 18.03 and 2.86, respectively, indicating relative undervaluation [3] Institutional Views - Citigroup raised its target price from $52 to $62 on January 13, 2026, maintaining a "Hold" rating; Morgan Stanley upgraded to "Buy" with a target price of $60 on December 10, 2025 [4] Stock Performance - Following the earnings report, the stock price surged by 16.57% on February 11, closing at $69.08; as of February 13, the latest stock price was $69.23, reflecting a cumulative increase of 10.34% over the past five days [5] Recent Company Status - In Q3 2025, revenue declined by 6.05% year-over-year, and EPS fell by 16.57%, primarily due to global supply chain disruptions; increased competition in the industry necessitates attention to market share differences with giants like Caterpillar and Komatsu [6]

Merger and Acquisitions - The merger with REV was completed on February 2, 2026, expanding the customer base to municipalities, government agencies, and private contractors[22] - The company is actively pursuing inorganic investments to add complementary businesses and enhance its portfolio[30] Financial Performance and Backlog - The overall backlog as of December 31, 2025, increased by $61 million to $2,352 million compared to $2,291 million in 2024, driven by increased order activity in Aerials and Materials Processing (MP) segments[49][51] - The Environmental Solutions (ES) backlog decreased approximately 9% from 2024, primarily due to a return to historical pre-COVID ordering patterns[51] - The MP backlog increased approximately 22% from 2024, driven by higher order activity within the aggregates business due to replacement demand[52] - The Aerials backlog increased approximately 12% from 2024, attributed to the timing of certain orders received in December 2025, driven by strength in megaprojects[52] - The company expects second half sales in 2026 to be higher than first half sales, with stronger demand anticipated during the second quarter due to seasonal project spending[72] Operational Strategy and Innovation - The company aims to provide superior life-cycle return on invested capital (Customer ROIC) as a central focus for generating returns for investors[24] - The company operates under the "Execute, Innovate, Grow" framework to enhance operational efficiency and drive growth[27] - The company emphasizes product innovation as a core element of its growth strategy, with robust product development pipelines expected to bring new, differentiated products to market[59] - The company is committed to research, development, and engineering spending to meet customer needs and maintain competitive functionality of its products[60] - The company is developing alternative power solutions across its product lines, including battery-electric and fuel-electric hybrid options, to reduce carbon footprints[58] Governance and Compliance - The company emphasizes strong governance, safety, and environmental stewardship as part of its corporate values[26] - The company is working on enhancing its product safety and environmental compliance, with rigorous safety standards and practices in place[66][68] - The company has established competency centers to support engineering and product development, focusing on customer-responsive solutions and compliance with regulatory standards[56][57] Employee Engagement and Culture - The company has approximately 10,700 team members as of December 31, 2025, with 87% participation in the global engagement survey, indicating a strong focus on team member engagement and safety[76] - The company emphasizes a culture of inclusion and continuous improvement, aligning its values with its commitment to a supportive workplace[80] - The company values diverse backgrounds, aiming to foster innovation and better decision-making within its workforce[80] Risk Management - The company has a focus on managing risks related to integration of acquired businesses and potential disruptions in operations[6] - The company is engaged in various legal proceedings regarding intellectual property rights but does not expect a material adverse effect on its business or operating performance[65] Financial Management - The company maintains a balanced approach to capital allocation, focusing on net leverage, growth investments, restructuring investments, and efficient return of capital to stockholders[31] - The company is actively pursuing cash generation opportunities and aims to maintain adequate liquidity to meet financial covenants and operational needs[73]

Core Insights - The company reported Q4 2025 revenue of $1.318 billion, a year-over-year increase of 6.20%, exceeding market expectations; total annual revenue reached $5.421 billion, up 5.73% [1] - Q4 net profit was $63 million, a significant increase of 3250% year-over-year; however, annual net profit declined by 34.03% to $221 million [1] - Operating cash flow for the year was $440 million, with free cash flow at $322 million [1] Financial Condition - The debt-to-equity ratio decreased from 135.7% five years ago to 32.09%, significantly lower than the industry average [2] - Current ratio improved to 2.30, indicating enhanced short-term solvency [2] Operational Performance - The aerial work platform segment reported Q4 sales of $466 million, a 6.9% year-over-year increase, with an operating profit margin of 2.1%; however, annual sales declined by 14.5% [3] - The material handling segment's annual sales were $1.9 billion, down 14.6% year-over-year [3] - The environmental solutions segment provided stable revenue contributions [3] Company Valuation - The current price-to-earnings (P/E) ratio is 7.38, and the price-to-sales (P/S) ratio is 0.67, both lower than the industry weighted average, indicating relative valuation advantages [4] Institutional Perspectives - Citigroup raised the target price from $52 to $62, maintaining a "hold" rating, acknowledging the company's cost control and cash flow improvements [5] Industry and Risk Analysis - The US manufacturing PMI has rebounded, indicating improved industry conditions; however, the company still faces challenges from supply chain fluctuations and international competition [6] - Ongoing attention is needed on the sustainability of demand recovery [6]

Financial Performance - Full-year 2025 net sales reached $5.4 billion, a 5.7% increase from $5.1 billion in 2024, with legacy revenue declining by 11.0% excluding ESG[5] - Q4 2025 net sales of $1.3 billion were 6.2% higher than Q4 2024, with legacy revenue increasing by 5.4% year-over-year[7] - Terex Corporation reported Q4 2025 net sales of $1,318 million, a 6.2% increase from $1,241 million in Q4 2024[29] - For FY 2025, net sales totaled $5,421 million, with a gross profit of $1,144 million, resulting in a gross margin of 21.1%[40] - Q4 2024 net sales were $1,241 million, with a gross profit of $236 million, reflecting a gross margin of 19.0%[41] - FY 2024 net sales were $5,127 million, with a gross profit of $1,112 million, resulting in a gross margin of 21.7%[42] Profitability - Full-year 2025 operating margin was 8.8%, with adjusted operating margin at 10.4%[6] - The operating profit for Q4 2025 was $137 million, representing an operating margin of 10.4%, compared to $53 million and 4.3% in Q4 2024[34] - FY 2025 operating profit increased to $566 million, with an operating margin of 10.4%[40] - Q4 2025 operating profit was $123 million, leading to an operating margin of 9.3%[39] - Segment operating profit for Q4 2025 was $97 million, with an adjusted operating profit of $79 million[43] - FY 2025 adjusted operating profit reached $318 million, with net sales of $1,691 million[44] Earnings - Full-year 2025 EPS was $3.33, with adjusted EPS of $4.93, compared to $4.96 and $6.11 in the prior year respectively[10] - For the full year 2025, net income was $221 million, down from $335 million in 2024, with earnings per share of $3.36 compared to $5.00 in 2024[29] - Q4 2025 net income was $74 million, translating to earnings per share of $1.12[39] - FY 2025 net income rose to $327 million, with earnings per share of $4.93[40] Cash Flow and Liquidity - Free cash flow for 2025 was $325 million, representing a cash conversion rate of 147%[13] - Free cash flow for 2025 was $325 million, with a free cash flow conversion rate of 147%, significantly up from 57% in 2024[38] - As of December 31, 2025, liquidity was $1.6 billion, including cash and availability under the revolving line of credit[13] - Terex's cash and cash equivalents at year-end 2025 were $772 million, up from $388 million at the end of 2024[32] Future Outlook - 2026 sales outlook is projected between $7.5 billion and $8.1 billion, with pro forma EBITDA expected to grow by approximately $100 million or 12% year-over-year[14] - The company anticipates continued growth in 2026, focusing on segment operating margin and free cash flow, excluding unusual items[37] Capital Expenditures and Expenses - Terex's capital expenditures for 2025 were $118 million, down from $137 million in 2024[32] - The company experienced a significant increase in depreciation and amortization expenses, rising to $158 million in 2025 from $82 million in 2024[32] Strategic Initiatives - The company plans to achieve $75 million in annual run-rate synergies from the REV merger within two years[15] - Terex's strategy includes leveraging its diversified portfolio and investing in innovation to drive consistent, profitable growth for shareholders[25] Bookings - Q4 2025 bookings were $1.9 billion, up 32% year-over-year, reflecting a book-to-bill ratio of 145%[6]

Core Viewpoint - Trex's stock price surged by 16.57% on February 11, closing at $69.08, driven by positive earnings expectations, valuation advantages, improved industry conditions, and institutional optimism [1] Company Performance - Trex's Q4 2025 earnings report indicates a positive outlook, with projected revenue of $1.298 billion, a year-on-year increase of 4.62%, and an expected EPS of $1.00, marking a return to profitability [2] - The company's financial structure has improved significantly, with the debt-to-equity ratio decreasing from 135.7% five years ago to 32.09%, well below the industry average of 194.31%, enhancing its debt repayment capacity [2] - Operating cash flow for Q3 2025 reached $154 million, with free cash flow of $130 million, supporting dividend payments and share buyback plans [2] Company Valuation - As of the earnings report, Trex's trailing twelve months (TTM) P/E ratio was 7.38 and P/S ratio was 0.67, both lower than the industry weighted averages of 18.03 and 2.86, respectively, indicating relatively low valuation [3] - The positive earnings outlook has attracted capital inflow, with trading volume significantly increasing to $327 million and a turnover rate of 4.23%, reflecting active market participation [3] Industry Policy and Environment - In early February 2026, the U.S. manufacturing PMI rose to 52.6, indicating a return to expansion, which enhances the outlook for traditional manufacturing sectors [4] - As a top 50 global engineering machinery company (ranked 16th in 2025), Trex stands to benefit from increased capital expenditure in manufacturing and improved supply chain conditions [4] Institutional View - Citigroup raised Trex's target price from $52 to $62 on January 13, 2026, maintaining a "hold" rating, reflecting market recognition of the company's progress in cost control and cash flow improvement, boosting investor confidence [5] Future Development - Despite the positive short-term earnings outlook, Trex experienced a year-on-year revenue decline of 6.05% and a 16.57% drop in EPS for Q3 2025, indicating challenges from global supply chain fluctuations and intensified industry competition [6]

Group 1 - Terex's shares increased by 13% following the release of fourth-quarter earnings, with sales growing by 8% and adjusted earnings per share exceeding analysts' expectations [1] - The standout figure was a 32% growth in bookings for Q4, leading management to project a 12% increase in adjusted EBITDA to $965 million by 2026, with the stock trading at a low EV/EBITDA ratio of 6 [1] - The recent acquisitions of the Environmental Solutions Group (ESG) and REV Group are expected to enhance Terex's business stability by diversifying its revenue sources, with approximately 70% of sales coming from non-discretionary sectors [2] Group 2 - The divestment of Terex's cyclical aerials and cranes business is anticipated to further stabilize revenue, allowing the company to focus on non-discretionary industries [3] - Over the past decade, Terex has increased its dividend from $0.24 to $0.68 while reducing its shares outstanding by 40%, indicating a commitment to returning value to shareholders [3] - Terex is currently trading at 14 times its 2026 earnings guidance, suggesting it is not overpriced in the current market [3]

Core Viewpoint - Terex (TEX.N) shows positive performance expectations for Q4 FY2025, with an optimized financial structure and relative valuation advantages, but faces challenges from short-term performance pressure and industry competition [1] Performance and Operating Conditions - Terex is expected to report Q4 FY2025 revenue of $1.298 billion, a year-on-year increase of 4.62%, with earnings per share (EPS) projected at $1.00, indicating a return to profitability [2] Institutional Perspectives - Citigroup maintains a "Hold" rating, raising the target price from $52 to $62. JPMorgan raised its target price to $50 on June 10, 2025, reflecting market recognition of cost control and cash flow improvements [3] Financial Status - Debt-to-equity ratio improved from 135.7% to 32.09% over the past five years, significantly lower than the industry average of 194.31%, enhancing debt repayment capability [4] - Operating cash flow reached $154 million in Q3 2025, with free cash flow at $130 million, supporting dividend payments of $0.17 per share and a buyback plan of $55 million in Q2 2025 [4] - Gross margin increased to 20.33% in Q3 2025, up from 19.64% in the previous quarter, primarily due to product mix optimization [4] Industry Position - Terex ranks 16th in the global construction machinery top 50 for 2025, with sales revenue of $5.1 billion and a market share of 2.1% [5] - Current price-to-earnings (P/E) ratio of 7.38 and price-to-sales (P/S) ratio of 0.67 are both below the industry weighted averages of 18.03 and 2.86, indicating relative undervaluation [5] Industry and Risk Analysis - Short-term performance pressure is evident, with Q3 2025 revenue declining by 6.05% year-on-year and EPS down by 16.57%, impacted by global supply chain and demand fluctuations [6] - Increased competition exists with international giants like Caterpillar and Komatsu, highlighting the need to monitor progress in overseas market expansion [6]

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $4.93 for the year, consistent with expectations, and EBITDA of $635 million, representing an 11.7% margin [10][15] - Free cash flow improved by 71% to $325 million, achieving a cash conversion rate of 147% [15] - Total net sales for Q4 were $1.3 billion, a 6% year-over-year increase, while full-year net sales grew to $5.4 billion [12][13] Business Line Data and Key Metrics Changes - Environmental Solutions segment sales reached $428 million in Q4, a 14.1% year-over-year growth, with full-year sales increasing by 12.7% [16] - Materials Processing (MP) segment sales were $428 million in Q4, down 2.5% year-over-year, but grew by 2.8% on a like-for-like basis when excluding divested businesses [17] - Aerials segment secured nearly $1 billion in new orders in Q4, up 46% from the prior year, with a positive margin expansion trend [11][18] Market Data and Key Metrics Changes - The company noted strong demand in the Utilities market, with forecasts indicating 8%-15% annual CapEx growth through 2030 [9] - The construction sector is supported by government funding, with a growing pipeline of megaprojects expected to provide tailwinds through at least 2030 [9] - The company has a significant addressable market, collectively spending $200 billion per year on capital equipment across municipalities in the U.S. [9] Company Strategy and Development Direction - The merger with REV Group is seen as a defining milestone, creating a leading specialty equipment manufacturer with a strong manufacturing footprint and technology capabilities [5][6] - The company aims to achieve $75 million in run-rate synergies within two years from the merger, with $37.5 million expected within the next 12 months [7] - A strategic review of the Aerials business is ongoing, with strong inbound interest from potential buyers [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and highlighted positive momentum across most segments for 2026 [10][20] - The outlook for 2026 includes expected sales growth of approximately 5% on a pro forma basis, with pro forma EBITDA anticipated to grow by about $100 million [20][21] - The effective tax rate is expected to rise to 21% due to higher U.S. dollar income, with EPS guidance for 2026 set between $4.50 and $5 [21] Other Important Information - The company plans to invest over $118 million in capital expenditures to fuel organic growth, focusing on automation and efficiency improvements [24] - The merger has a modest 3% diluted effect on EPS in 2026 due to an increased number of shares outstanding post-merger [21] Q&A Session Summary Question: What is the pricing outlook for the MP segment? - Management indicated a progressive increase in margins driven by pricing, expecting this trend to continue into 2026 [29] Question: How will tariffs impact the Aerials segment? - Management expects flat revenue and margins in 2026 due to ongoing tariff impacts, with a more favorable pricing-cost dynamic anticipated in the second half of the year [31] Question: What is the plan for the REV integration? - The focus is on maintaining operational momentum and throughput, with a strong backlog in the specialty vehicle segment [40] Question: How is the Environmental Solutions segment performing? - The segment is expected to see continued growth, particularly in Utilities, with a strong backlog and improved margins anticipated [50][51] Question: What is the expected capacity increase in Utilities? - The company plans to expand capacity by 20%-30% over the next two years in the Utilities business to meet rising demand [88]

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $4.93 for the year, consistent with expectations, and EBITDA of $635 million, representing an 11.7% margin [10][15] - Free cash flow improved by 71% to $325 million, achieving a cash conversion rate of 147% [15] - Total net sales for Q4 were $1.3 billion, a 6% year-over-year increase, while full-year net sales grew to $5.4 billion [12][13] Business Line Data and Key Metrics Changes - Environmental Solutions segment sales grew 14.1% year-over-year in Q4, driven by utility and refuse trucks, with full-year sales increasing 12.7% [16] - Materials Processing (MP) segment sales decreased by 2.5% in Q4 but increased by 2.8% on a like-for-like basis when excluding divested businesses [17] - Aerials segment saw a 6.9% year-over-year sales growth in Q4, with strong bookings of nearly $1 billion, up 46% from the prior year [18][11] Market Data and Key Metrics Changes - The company noted strong demand in utilities, with industry forecasts predicting 8%-15% annual CapEx growth through 2030 [9] - The construction market is supported by government funding, with a growing pipeline of megaprojects expected to provide tailwinds through at least 2030 [9] - The company has a significant addressable market, collectively spending $200 billion per year on capital equipment across municipalities in the U.S. [9] Company Strategy and Development Direction - The merger with REV Group is seen as a defining milestone, creating a leading specialty equipment manufacturer with premium brands and clear synergies [5][6] - The company aims to achieve $75 million in run-rate synergies within two years, with $37.5 million expected within the next 12 months [7] - A strategic review of the Aerials business is ongoing, with strong inbound interest from potential buyers [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, citing strong bookings and backlog across segments [20] - The outlook for 2026 anticipates sales growth of approximately 5% on a pro forma basis, with EBITDA expected to grow by about $100 million [20] - The company is navigating a complex environment with macroeconomic variables and geopolitical uncertainties, but remains focused on execution and integration [22] Other Important Information - The effective tax rate for 2026 is expected to be higher at 21%, driven by increased USD income [21] - The company plans to invest over $118 million in capital expenditures to fuel organic growth [24] - The merger has a modest 3% diluted effect on EPS in 2026 due to a higher number of shares outstanding post-merger [21] Q&A Session Summary Question: What is the pricing outlook for the MP segment? - Management indicated that pricing improvements are expected to flow through the P&L, with a progressive step-up in margin profile anticipated throughout 2026 [29] Question: How will tariffs impact the Aerials segment? - Management expects more headwinds from tariffs in 2026, translating to about $16 million more in costs, but plans to offset this through productivity and pricing [31] Question: What is the plan for the REV integration? - The focus is on maintaining throughput and operational momentum, with a strong backlog in the specialty vehicle segment [40] Question: How is the Environmental Solutions segment performing? - The segment recorded outstanding performance, with growth expected to continue, particularly in utilities [42] Question: What is the expected capacity increase in the Utilities business? - The company plans to expand capacity by 20%-30% over the next two years, with some capacity coming online in 2026 [88]

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $4.93 for the full year, consistent with expectations, and a fourth-quarter EPS of $1.12, which is $0.35 higher than the previous year [10][12] - Total net sales for Q4 were $1.3 billion, a 6% year-over-year increase, while full-year net sales grew 6% to $5.4 billion [12][13] - The operating margin for Q4 was 9.3%, up 150 basis points from the prior year, and the full-year operating margin was 10.4%, down 90 basis points from 2024 [12][13] - Free cash flow for the full year improved by 71% to $325 million, representing a cash conversion rate of 147% [14] Business Line Data and Key Metrics Changes - Environmental Solutions segment sales grew 14.1% year-over-year in Q4, with full-year sales increasing 12.7% [15][16] - Materials Processing (MP) segment sales for Q4 were $428 million, down 2.5% year-over-year, but increased by 2.8% on a like-for-like basis when excluding divested businesses [17] - Aerials segment sales grew 6.9% year-over-year in Q4, with operating margins of 2.6%, which is 200 basis points better than the prior year [18] Market Data and Key Metrics Changes - The company serves a diverse addressable market with stable growth profiles, particularly in utilities, waste, and recycling sectors, with municipalities spending $200 billion annually on capital equipment [9] - Utilities are expected to see strong growth from 2026 onward, with industry forecasts predicting 8%-15% annual CapEx growth through 2030 [9] Company Strategy and Development Direction - The merger with REV Group is seen as a defining milestone, creating a leading specialty equipment manufacturer with significant synergies expected [4][5] - The company aims to achieve $75 million in run-rate synergies within two years from the merger, with $37.5 million expected within the next 12 months [6] - A strategic review of the Aerials business is ongoing, with strong inbound interest from potential buyers [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and highlighted positive momentum across most segments for 2026 [10][20] - The outlook for 2026 includes expected sales growth of approximately 5% on a pro forma basis, with EBITDA projected to grow by about $100 million [20][21] - The effective tax rate is anticipated to rise to 21% due to higher USD income, and EPS is expected to be between $4.50 and $5 for 2026 [21] Other Important Information - The company plans to invest over $118 million in capital expenditures to fuel organic growth, focusing on automation and efficiency improvements [24] - The company returned $98 million to shareholders through dividends and share buybacks in the previous year [24] Q&A Session Summary Question: What is the pricing outlook for the MP segment? - Management indicated that pricing improvements are expected to continue flowing through the P&L, with a progressive step-up in margin profile anticipated throughout 2026 [27][28] Question: How will tariffs impact the Aerials segment? - Management expects flat revenue and margin profiles for Aerials in 2026, with tariff impacts being more pronounced compared to 2025 [29][30] Question: What is the plan for the REV integration? - The focus is on maintaining throughput and operational momentum, with strong bookings and a two-year backlog in the specialty vehicle segment [38][39] Question: How is the Environmental Solutions segment performing? - The segment is expected to see mid-single-digit growth, with utilities driving demand, while ESG is anticipated to remain flat [96][97] Question: What is the capacity expansion plan for Environmental Solutions? - The company is expanding capacity in the utilities business by 20%-30% over the next two years, with some capacity coming online in 2026 [86][88]