Terex Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.84%.
Did TEX Beat Earnings? Q2 2025 Results
Terex Corporation delivered a solid second-quarter beat on both the top and bottom lines, posting adjusted EPS of $1.49 against a consensus estimate of $1.40, a 6.46% beat, while revenue climbed 8.6% year-over-year to $1.50 billion, clearing Wall Street's $1.44 billion forecast by 4.45%. The clearest driver of the upside was the Environmental Solutions segment, which generated $430.00 million in sales with 19.1% operating margins and pro forma growth of 12.9%, as synergies from the ESG acquisition ran ahead of initial targets and cross-selling wins, including an 80-plus unit bucket truck order, validated the strategic rationale of the deal. The results came despite a 310-basis-point year-over-year compression in consolidated operating margins to 11.0%, with the Aerials segment facing roughly 200 basis points of margin pressure from an unfavorable shift toward national accounts. Terex maintained its full-year EPS guidance of $4.70 to $5.10 and revenue outlook of $5.30 billion to $5.50 billion, with management noting that Q4 EPS is expected to exceed Q3 as tariff mitigation accelerates and Materials Processing margins improve.
- Strong Environmental Solutions performance with 12.9% pro forma revenue growth and 19.1% operating margin offset Aerials headwinds
- Free cash flow of $78 million improved $35 million year-over-year despite lower earnings due to better working capital
- ESG synergies running ahead of initial targets across sourcing, digital platforms, and cross-selling
- National rental customer strength offset independent rental customer capex caution in Aerials
- MP sequential margin improvement of 270 basis points driven by aggregates vertical
- Bookings grew 19% year-over-year on a pro forma basis with Aerials up 70% and MP up 24%
“The power of our evolving portfolio was evident in the quarter as strong performance in Environmental Solutions offset industry-wide headwinds in Aerials. Materials Processing executed well, delivering strong sequential growth and margin improvement.”
Terex CEO, on the earnings call
Forward Guidance & Outlook
Terex maintained its full-year 2025 EPS guidance of $4.70 to $5.10, including approximately $0.50 of net tariff impact. Full-year sales are expected between $5.3 billion and $5.5 billion, representing $200-$400 million of growth driven by the ESG acquisition offsetting lower legacy sales. Segment operating margin is expected at approximately 12%. Free cash flow is anticipated at $300-$350 million with capex of approximately $120 million. Interest and other expenses are now expected at about $170 million with an improved effective tax rate of approximately 17.5%. Aerials full-year sales are expected down low double digits with unfavorable customer mix persisting in H2 and margin pressure from tariffs. MP sales are expected down high single digits with decremental margins well within 25% targets. ES full-year sales outlook was raised to up low double digits. Q4 EPS is expected to exceed Q3, departing from historical cadence, due to tariff mitigation ramp-up and higher MP margins. Tariff outlook assumes rates broadly remain at current levels with reasonable deals made with key countries.
TEX YoY Financials
TEX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.