Terex sales rise despite aerial, materials processing weakness
Aerial segment sales fell 17.1% YoY
Terex Corp.‘s net sales rose in the second quarter as growth in its Environmental Solutions segment offset performance in Aerials and Materials Processing segments, reflecting ongoing capital spending softness from rental customers and end-market demand pressures.
Terex reported Q2 net sales of $1.5 billion, up 7.6% year over year, according to a July 31 Terex release. Equipment demand trends are stabilizing, with bookings of $1.1 billion, up 19% YoY on a pro forma basis, and a healthy backlog supporting sales into the second half of the year.
Aerial segment sales fell 17.1% YoY to $607 million as independent rental customers curtailed new equipment purchases, focusing instead on replacements. Materials Processing sales declined 9% to $454 million, resulting in a legacy revenue decline of 12% YoY due to tariffs and volume and mix adjustments, according to the earnings release. Meanwhile, Environmental Solutions, which the company acquired on Oct. 8, 2024, rose 12.9% pro forma to $430 million, aided by strong delivery of refuse collection vehicles and continued strength in Terex Utilities.
The company posted adjusted EPS of $1.49, maintained its full-year adjusted EPS outlook of $4.70 to $5.10, and authorized a $150 million share repurchase program, according to the release. Despite tariffs posing a temporary risk to margins, Terex emphasized its flexibility to adapt and reaffirmed its 2025 financial targets, including $5.3 billion to $5.5 billion in net sales.
Shares of Terex [NYSE: TEX] were trading at $50.86 per share as of market close on July 31, following the company’s earnings release, down 2.15% or $1.07 since the market opened. Share of Terex declined again today, trading at $48.58, down 4.60% or $2.34 as of 1:44 p.m. ET. The company has a market cap of $3.27 billion.
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