Terex Corporation (TEX) Bundle
A Brief History of Terex Corporation
Company Overview
Terex Corporation, a global manufacturer of lifting and material handling solutions, has maintained a significant presence in the industrial sector since its inception. The company operates through various segments, including Aerial Work Platforms (AWP), Materials Processing (MP), and Utility Equipment. As of 2024, Terex continues to innovate and expand its product offerings to meet the evolving demands of the market.
Financial Performance
For the nine months ended September 30, 2024, Terex reported the following financial metrics:
| Metric | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Net Sales | $3,886 | $3,929 | (1.1%) |
| Gross Profit | $871 | $914 | (4.7%) |
| SG&A Expenses | $398 | $393 | 1.3% |
| Income from Operations | $473 | $521 | (9.2%) |
Segment Performance
Net sales by segment for the nine months ended September 30, 2024, are as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | % Change |
|---|---|---|---|
| Aerial Work Platforms | $2,423 | $2,262 | 7.1% |
| Materials Processing | $1,463 | $1,672 | (12.5%) |
| Utility Equipment | $450 | $429 | 4.9% |
Geographical Sales Distribution
Sales by region for the nine months ended September 30, 2024, are detailed below:
| Region | Net Sales (2024) | Net Sales (2023) |
|---|---|---|
| North America | $2,497 | $2,314 |
| Western Europe | $700 | $825 |
| Asia-Pacific | $418 | $482 |
| Rest of World | $271 | $308 |
Stockholder Equity and Dividends
As of September 30, 2024, Terex's stockholder equity stood at:
| Component | Amount (in millions) |
|---|---|
| Common Stock | $1 |
| Additional Paid-in Capital | $914 |
| Retained Earnings | $1,977 |
| Accumulated Other Comprehensive Income | $(279) |
| Total Stockholder Equity | $1,957 |
Dividends declared for 2024 are as follows:
| Quarter | Dividend per Share |
|---|---|
| Q1 | $0.17 |
| Q2 | $0.17 |
| Q3 | $0.17 |
Future Outlook
Terex Corporation continues to focus on operational efficiency and market expansion. The demand for aerial work platforms and utility products remains strong, particularly in North America, while the company addresses challenges in the materials processing segment.
A Who Owns Terex Corporation (TEX)
Major Shareholders
As of 2024, Terex Corporation (TEX) has a diverse ownership structure consisting of institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage | Number of Shares Owned (millions) |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 12.5% | 8.25 |
| Institutional Investor | Vanguard Group Inc. | 10.8% | 7.17 |
| Institutional Investor | State Street Corporation | 8.1% | 5.35 |
| Individual Insider | John L. Garrison Jr. (CEO) | 1.2% | 0.79 |
| Individual Insider | Other Executives | 0.9% | 0.59 |
| Other | Public and Other Investors | 66.5% | 44.38 |
Stock Performance
As of September 30, 2024, Terex Corporation's stock was trading at approximately $54.71 per share. The company experienced a 7.1% increase in net sales for the nine months ended September 30, 2024, compared to the same period in 2023, totaling $3.886 billion.
Share Repurchase Programs
During the third quarter of 2024, Terex Corporation repurchased a total of 231,550 shares at an average price of $54.71, with an approximate dollar value of shares that may yet be purchased under the plans or programs totaling $100.6 million.
Financial Highlights
The financial performance of Terex Corporation as of the third quarter of 2024 is summarized below:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $1.212 billion | $1.290 billion |
| Gross Profit | $245 million | $292 million |
| Operating Income | $122 million | $163 million |
| Net Income | $88 million | $119 million |
Liquidity Position
As of September 30, 2024, Terex Corporation maintained a strong liquidity position with cash and cash equivalents amounting to $352 million and total liquidity of approximately $952 million.
Debt and Equity Structure
Terex Corporation's total liabilities as of September 30, 2024, were reported at $1.824 billion, while total stockholders' equity stood at $1.957 billion.
Market Outlook
For the fiscal year 2024, Terex Corporation anticipates achieving an adjusted EPS of $5.85 to $6.25 on sales projected to be between $5.0 billion and $5.2 billion.
Terex Corporation (TEX) Mission Statement
As of 2024, Terex Corporation's mission statement emphasizes their commitment to providing innovative solutions for their customers, focusing on safety, quality, and sustainability. They aim to be the leading manufacturer of lifting and material handling solutions by leveraging technology and innovation to enhance their product offerings. The company seeks to build long-term relationships with customers and stakeholders, ensuring satisfaction and trust through operational excellence.
Financial Overview
In the third quarter of 2024, Terex Corporation reported net sales of $1,212 million, a decrease of 6.0% from $1,290 million in the same period of 2023. The gross profit for this quarter was $245 million, representing 20.2% of sales, down from $292 million and 22.6% in the previous year. Income from operations fell to $122 million, down 25.2% from $163 million in Q3 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Sales (in millions) | $1,212 | $1,290 | -6.0% |
| Gross Profit (in millions) | $245 | $292 | -16.1% |
| Income from Operations (in millions) | $122 | $163 | -25.2% |
Market Segments
Terex operates through two main segments: Materials Processing (MP) and Aerial Work Platforms (AWP). For the third quarter of 2024, net sales in the MP segment were $444 million, down 17.9% from $541 million in the same quarter of 2023. Conversely, the AWP segment saw a slight increase in sales to $769 million, up 2.4% from $751 million in the previous year.
| Segment Performance | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Materials Processing (MP) | $444 | $541 | -17.9% |
| Aerial Work Platforms (AWP) | $769 | $751 | +2.4% |
Geographic Performance
In terms of geographic sales distribution, North America remained the largest market, representing approximately 67% of total sales. In Q3 2024, North American sales were $809 million, compared to $780 million in Q3 2023.
| Geographic Sales | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| North America | $809 | $780 |
| Western Europe | $191 | $246 |
| Asia-Pacific | $130 | $169 |
| Rest of World | $82 | $95 |
Capital Allocation and Shareholder Returns
For the nine months ended September 30, 2024, Terex repurchased a total of 567,108 shares at a cost of $32 million. The company also declared dividends of $0.17 per share for each quarter of 2024, reflecting a commitment to returning value to shareholders.
| Share Repurchases | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Total Shares Repurchased | 567,108 | 736,644 |
| Cost of Shares Repurchased | $32 | $34 |
Liquidity and Financial Health
As of September 30, 2024, Terex reported $952 million in available liquidity, with no near-term debt maturities. The company’s working capital as a percentage of trailing three-month annualized net sales was 26.3%.
| Liquidity Metrics | Amount (in millions) |
|---|---|
| Available Liquidity | $952 |
| Working Capital | $1,275 |
| Trailing Three-Month Annualized Net Sales | $4,848 |
How Terex Corporation (TEX) Works
Business Segments
Terex Corporation operates through two primary business segments: Aerial Work Platforms (AWP) and Materials Processing (MP). These segments offer a range of equipment and solutions for various industries including construction, manufacturing, and utility services.
Financial Performance Overview
As of the third quarter of 2024, Terex Corporation reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Sales | $1,212 million | $1,290 million | (6.0%) |
| Gross Profit | $245 million | $292 million | (16.1%) |
| Income from Operations | $122 million | $163 million | (25.2%) |
| SG&A Expenses | $123 million | $129 million | (4.7%) |
| Net Income | $88 million | $119 million | (26.1%) |
Segment Performance
Aerial Work Platforms (AWP)
In Q3 2024, AWP generated net sales of $769 million, a 2.4% increase compared to $751 million in Q3 2023. The operating income for this segment was $83 million, down from $93 million, reflecting a decrease in operating margin from 12.4% to 10.8%.
Materials Processing (MP)
MP reported net sales of $444 million in Q3 2024, down 17.9% from $541 million in Q3 2023. The segment's income from operations also fell to $56 million from $92 million, resulting in a decrease in operating margin from 17.0% to 12.6%.
Geographical Sales Distribution
For the nine months ended September 30, 2024, the geographical sales distribution was as follows:
| Region | Net Sales (in millions) |
|---|---|
| North America | $2,497 |
| Western Europe | $700 |
| Asia-Pacific | $418 |
| Rest of World | $271 |
Liquidity and Capital Resources
As of September 30, 2024, Terex maintained total liquidity of approximately $952 million, which includes cash and cash equivalents of $352 million and undrawn availability under its revolving line of credit of $600 million. The company reported no significant debt maturities until 2029.
Cash Flow Analysis
For the nine months ended September 30, 2024, Terex reported the following cash flow metrics:
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $149 |
| Capital Expenditures | $(88) |
| Free Cash Flow | $61 |
Stockholder Equity and Share Repurchase
As of September 30, 2024, Terex's total stockholders' equity amounted to $1,957 million, an increase from $1,672 million at the end of 2023. The company repurchased 562,371 shares for $31 million during the nine months ended September 30, 2024.
Debt and Interest Expense
During the nine months ended September 30, 2024, Terex reported total debt of $628 million and interest expense, net of interest income, of $35 million.
Outlook
Terex anticipates adjusted earnings per share (EPS) for 2024 in the range of $5.85 to $6.25, with projected sales of $5.0 to $5.2 billion.
How Terex Corporation (TEX) Makes Money
Revenue Segments
Terex Corporation generates its revenue primarily through two business segments: Aerial Work Platforms (AWP) and Materials Processing (MP).
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) | Income from Operations (Q3 2024) | Income from Operations (Q3 2023) | Change (%) |
|---|---|---|---|---|---|---|
| Aerial Work Platforms | $769 million | $751 million | 2.4% | $83 million | $93 million | (10.8%) |
| Materials Processing | $444 million | $541 million | (17.9%) | $56 million | $92 million | (39.1%) |
| Total | $1,212 million | $1,290 million | (6.0%) | $122 million | $163 million | (25.2%) |
Geographic Distribution of Sales
In the third quarter of 2024, Terex's sales were heavily concentrated in North America, which accounted for approximately 67% of total sales.
| Region | Net Sales (Q3 2024) | Net Sales (Q3 2023) |
|---|---|---|
| North America | $809 million | $780 million |
| Western Europe | $191 million | $246 million |
| Asia-Pacific | $130 million | $169 million |
| Rest of World | $82 million | $95 million |
Financial Performance Overview
For the nine months ended September 30, 2024, Terex reported the following financial results:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $3,886 million | $3,929 million | (1.1%) |
| Gross Profit | $871 million | $914 million | (4.7%) |
| SG&A Expenses | $398 million | $393 million | 1.3% |
| Income from Operations | $473 million | $521 million | (9.2%) |
Market Trends and Demand Factors
Terex has experienced fluctuations in market demand, particularly in the AWP segment, which has benefited from increased demand for telehandlers and utility products in North America. However, the MP segment faced challenges due to lower end-market demand and channel adjustments.
Cost Management
In terms of cost structure, Terex has been managing its SG&A expenses effectively, with a slight decrease observed in the third quarter of 2024 compared to the previous year.
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| SG&A Expenses | $123 million | $129 million | (4.7%) |
Cash Flow and Capital Allocation
For the nine months ended September 30, 2024, Terex generated $149 million in cash from operations, a decrease from $269 million in the prior year. Capital expenditures for the same period totaled $88 million.
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash from Operating Activities | $149 million | $269 million |
| Capital Expenditures | $88 million | $72 million |
Future Outlook
Terex anticipates achieving adjusted earnings per share for 2024 in the range of $5.85 to $6.25, with projected sales between $5.0 billion and $5.2 billion.
As of September 30, 2024, Terex reported total assets of $3,781 million and total liabilities of $1,824 million, indicating a solid balance sheet position.
| Balance Sheet Metric | Amount (in millions) |
|---|---|
| Total Assets | $3,781 million |
| Total Liabilities | $1,824 million |
| Stockholders' Equity | $1,957 million |
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Article updated on 8 Nov 2024
Resources:
- Terex Corporation (TEX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Terex Corporation (TEX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Terex Corporation (TEX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.