Terex Reports Q4 Financial Results

Terex (NYSE: TEX), a leading manufacturer of lifting and material handling equipment, announced its financial results for the fourth quarter (Q4) of calendar year 2024.

Key Highlights:

* Revenue: $1.24 billion, surpassing analyst estimates by 0.8% and up 1.5% year-over-year
* GAAP EPS: -$0.03, significantly below consensus estimates of $0.72
* Adjusted EBITDA: $114 million, missing analyst expectations by 7.2%
* Revenue Guidance (FY2025): $5.4 billion, in line with analyst estimates
* EPS Guidance (FY2025): $4.90, slightly below analyst estimates
* EBITDA Guidance (FY2025): $660 million, below analyst estimates

Company Overview

Terex specializes in the design and manufacture of equipment used in construction, infrastructure development, and industrial applications. The company's product line includes cranes, aerial work platforms, and other heavy machinery.

Sales Growth

Terex has experienced modest sales growth in recent years. Over the past five years, its annualized revenue growth rate was 3.3%, below the industry benchmark. However, the company's revenue has grown by an impressive 7.7% over the past two years, indicating some improving trends.

Operating Margin

Terex has maintained a strong operating margin over the past five years, averaging 9.1%. In the recent quarter, however, its operating margin declined slightly to 4.3% due to increased costs.

Earnings Per Share (EPS)

Terex's EPS has grown significantly in the past five years, at a compounded annual growth rate of 49%. This growth is driven by both revenue expansion and improved profitability.

Q4 Performance

Terex's Q4 results were mixed, with revenue exceeding expectations but earnings and EBITDA falling short. The company's weak profitability was primarily due to lower gross margins.

Key Takeaways

While Terex's revenue growth is encouraging, its earnings and EBITDA performance in Q4 were disappointing. The company's full-year guidance also suggests continued challenges in the near term. Investors should carefully consider Terex's financial health and market outlook before making any investment decisions.