Terex Q4 Earnings & Revenues Top Estimates, Decline Y/Y on Low Volumes

Core Insights - Terex Corporation reported adjusted earnings per share of 77 cents, exceeding the Zacks Consensus Estimate of 76 cents, but a significant decline of 45% from the prior-year quarter due to lower volumes [1][2] - Revenues increased by 1.5% year over year to $1.24 billion, surpassing the Zacks Consensus Estimate of$1.23 billion, aided by the acquisition of Environmental Solutions Group (ESG) [3][15] - The company experienced margin contraction, with gross profit falling 11.5% to $236 million and operating profit plunging 54$53 million [5][6] Financial Performance - The cost of goods sold rose 8.7% year over year to $1.04 billion, leading to a decline in gross profit [5] - Adjusted operating profit was$97 million, down from $132.7 million in the previous year, with an adjusted operating margin of 7.8$6.11, beating the Zacks Consensus Estimate of $6.09 [13][14] Segment Performance - The Material Processing segment's revenues fell 21$439 million, attributed to channel adjustments and weak end-market demand [7] - The Aerial Work Platforms segment generated revenues of $573 million, down 13.2$228 million, with an operating profit of $12 million, both figures exceeding initial estimates [10] Cash Flow and Balance Sheet - As of December 31, 2024, Terex had cash and cash equivalents of$388 million, an increase from $371 million a year earlier [12] - The company generated$326 million in cash from operating activities in 2024, down from $459 million in the prior year [12] 2025 Outlook - Terex expects sales for the Materials Processing segment to decline by high single digits from a baseline of$1.9 billion, while the AWP segment's revenues are projected to decline in low double digits from a baseline of $2.41 billion [16] - Net sales are projected to be between$5.3 billion and $5.5 billion, indicating a potential year-over-year growth of 6$4.70 and $5.10, reflecting a year-over-year drop of 20% at the midpoint [17]