Q2 2024 Terex Corp Earnings Call Transcript
Key Points
- Terex Corp (TEX) reported strong revenue of $1.4 billion and adjusted earnings per share of $2.16 for Q2 2024.
- The company is on track to deliver full-year adjusted EPS in the range of $7.15 to $7.45.
- Terex Corp (TEX) has a robust backlog of $2.4 billion, approximately 2x historical norms, providing strong future revenue visibility.
- The company is poised for consistent sustainable growth driven by mega trends and federal investments such as the Infrastructure Investment and Jobs Act, CHIPS Act, and Inflation Reduction Act.
- Terex Corp (TEX) has a healthy balance sheet with net leverage of 0.5x and is expected to generate $325 million to $375 million in free cash flow for 2024.
- Net sales decreased by 1.5% year over year, with strength in North America offset by declines in the rest of the world.
- The European economic situation remains unclear with conflicting indications, impacting the company's performance in the region.
- Gross profit declined to 23.8% due to unfavorable product mix and anticipated manufacturing inefficiencies.
- The MP segment was impacted by continued softness in the European market, particularly in the German-based Fuchs materials handling business.
- Interest rate anxiety in North America is causing customers to delay rental conversions, impacting sales.
Greetings, and welcome to the Terex second-quarter 2024 results conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Jon Paterson, Vice President and Treasurer. Please go ahead.
Good morning, and welcome to the Terex second-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 by Simon Meester, President and Chief Executive Officer; and Julie Beck, Senior Vice President and Chief Financial Officer. Their prepared 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 contains forward-looking statements, which are subject to risks that could cause actual results to be materially different from those expressed or implied. These risks
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