Terex (TEX) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were $1.23B, down 4.9% year-over-year, with adjusted EPS of $0.83 and ROIC at 15.0%.

• Environmental Solutions (ES/ESG) segment delivered record sales of $399M, 19.4% margin, and offset declines in Aerials and MP.

• Backlog grew 13% sequentially to $2.6B, with a book-to-bill ratio of 124%.

• Integration of ESG is on track, with over $25M in expected run-rate synergies by end of 2026.

• Full-year adjusted EPS outlook maintained at $4.70–$5.10, factoring in tariff impacts.

Financial highlights

• Adjusted operating margin was 9.1% (down from 12.6% YoY); adjusted EBITDA margin at 10.4%.

• Free cash flow for Q1 was negative $55M, improved YoY; net income was $21M ($0.31 per share).

• Interest and other expenses rose to $41M–$43M, mainly due to ESG acquisition financing.

• Share repurchases totaled $32M–$33M and $11M in dividends paid in Q1.

• ROIC for the trailing twelve months was 15.0%.

Outlook and guidance

• FY 2025 net sales expected between $5.3B and $5.5B, with organic sales projected to decline 8–12%.

• Segment operating margin expected at ~12%; free cash flow guidance of $300M–$350M; CapEx at $120M.

• Full-year adjusted EPS guidance reaffirmed at $4.70–$5.10, assuming easing of tariffs.

• Backlog of $2.6B supports the outlook; Q2 and Q3 EPS expected to be stronger than Q1 and Q4.

• ESG integration on track, with at least $25M in run-rate synergies by end of 2026.