Terex Surpasses Third Quarter Expectations and Raises Year-End Forecasts

NEW YORK - Terex Company (NYSE:TEX) reported third-quarter earnings that exceeded analysts' expectations and raised its full-year guidance above Wall Street forecasts. Shares of the construction equipment manufacturer rose 0.44% in pre-market trading following the announcement.
Terex reported a third-quarter adjusted earnings per share of $1.46, surpassing the analyst expectation of $1.26. Revenue came in at $1.2 billion, slightly above the expected $1.19 billion but reflecting a 6% decline compared to the same period last year.
CEO Simon Meester stated, "The Terex team quickly adapted to channel adjustments in the industry and delivered strong performance throughout the third quarter."
The company's Material Processing segment saw sales decline by 18% to $444 million, whereas revenues from Aerial Work Platforms increased by 2.4% to $769 million. Overall operating margin decreased from 12.6% in the same period last year to 10.1%.
Looking ahead, Terex raised its full-year outlook for 2024, forecasting earnings per share in the range of $5.85 to $6.25, above the Wall Street expectation of $6.01. The company also raised its revenue forecast to $5.0-$5.2 billion, exceeding analysts' predictions of $4.98 billion.
CFO Julie Beck expressed, referencing the recently acquired Environmental Solutions Group, "I am very pleased that our future financial results will benefit from ESG’s contributions and that our cyclical nature is expected to decrease moving forward."
As of September 30, Terex maintained a strong balance sheet with $352 million in cash and total liquidity of $952 million. The company has returned $66 million to shareholders through share buybacks and dividends year to date.