The following is a summary of the Terex Corporation (TEX) Q1 2024 Earnings Call Transcript:
Financial Performance:
Terex Corporation showed a sales increase of 5% and expanded operating margins by 20 basis points from last year.
The company reported earnings per share of $1.60 for Q1 and a return on invested capital of over 27%.
Terex is raising its 2024 sales and profit outlook, expecting earnings per share in the range of $6.95 to $7.35.
The MP sales in Q1 declined by 6% to $520 million compared to last year, but had operating profits of $72 million.
AWP reported Q1 sales of $773 million, up nearly 13% from last year, with quarterly operating profits of $107 million, a 29% increase from the prior year.
Business Progress:
Terex launched new products across the portfolio, and continue to progress with their new facility in Monterrey.
The company has a Q1 backlog of $3.1 billion, significantly above historical levels, proving confidence in their sales outlook for the year.
In line with trends such as infrastructure, digitalization, waste recycling, and electrification, Terex's portfolio and strategy are accordingly aligned.
They have started to ramp up efforts to grow the M&A pipeline, targeting opportunities to broaden their market reach and strengthen the portfolio.
Terex is on track to generate over $1.1 billion in free cash flow over a five-year period, giving the firm flexibility to pursue new growth opportunities.
Exploring both inorganic and organic growth options, they're focusing on product development as a key contributor to business expansion.
Recent investments in Acculon and Apptronik form part of long-term technology investment strategy, benefiting their current product portfolio and future offerings.
Terex is on track to meet their Investor Day targets, aiming to hit $6 billion with an operating margin of 13-14%, reflecting a 3.5% compound annual growth rate (CAGR).
They are managing growth whilst dealing with existing supply chain issues, and are expecting a return to more normal delivery patterns as supply chain conditions improve.
More details: Terex Corp IR
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