Q4 2024 Terex Corp Earnings Call Transcript
Key Points
- Terex Corp (TEX) reported the second highest full-year EPS in the company's history, reflecting the strength of its portfolio.
- The integration of ESG has been financially accretive from day one, with strong performance and a 22% EBITDA margin on $228 million in revenue.
- Approximately 25% of Terex Corp (TEX)'s revenue now comes from waste and recycling markets, which are characterized by low cyclicality and steady growth.
- The company has a strong backlog of $2.3 billion, with significant commitments from large customers, particularly in the Aerials segment.
- Terex Corp (TEX) is well-positioned to benefit from megatrends such as onshoring, technology advancements, and federal investments, with a $40 billion addressable market.
- Legacy segment sales were down 17% in the fourth quarter, largely due to industry-wide channel adjustments.
- The European market remains weak, impacting the company's performance, particularly in the MP segment.
- Interest and other expenses increased by $24 million year-over-year due to acquisition-related financing.
- The company anticipates a slower start to 2025, with only about 10% of full-year earnings per share expected in the first quarter.
- Elevated interest rates and uncertainty around the Fed outlook pose macroeconomic headwinds, impacting rate-sensitive private projects.
Greetings, and welcome to the Terex Fourth Quarter 2024 Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Derek Everett, Vice President, Investor Relations.
Good morning, and welcome to the Terex Fourth Quarter 2024 Earnings Conference Call. A copy of the press release and presentation slides are posted on our Investor Relations website at investors.terex.com. In addition, the replay and slide presentation will be available on our website. We are joined today by Simon Meester, President and Chief Executive Officer; and Julie Beck, Senior Vice President and Chief Financial Officer; along with Jennifer Kong, who will succeed Julie as Senior Vice President and Chief Financial Officer; shortly after Terex files its 2024 annual report on Form 10-K. Their remarks will be followed by Q&A.
Please turn to slide 2 of the presentation, which reflects our safe harbor statement. Today's conference call
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