10/30/2024 | Press release | Distributed by Public on 10/30/2024 05:09
Terex Adjusted Outlook3
|
|
Net Sales | $5.0 - $5.2 billion |
Operating Margin
|
11.4% - 11.7% |
EBITDA
|
$635 - $670 |
Interest / Other Expense | ~$90 |
Tax Rate
|
~19% |
EPS | $5.85 - $6.25 |
Share Count | ~68 |
Depreciation / Amortization | ~$65 |
Free Cash Flow4
|
~$200 |
Corp & Other OP | ~($70) |
Segment Adjusted Outlook5
|
||
Net Sales |
Operating Margin1
|
|
Materials Processing | ~$1.9 billion | 14.1% - 14.3% |
AWP
|
~$3.0 billion | 11.5% - 11.8% |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
2024 | 2023 | 2024 | 2023 | |||||
Net sales | $ | 1,212 | $ | 1,290 | $ | 3,886 | $ | 3,929 |
Cost of goods sold
|
(967) | (998) | (3,015) | (3,015) | ||||
Gross profit | 245 | 292 | 871 | 914 | ||||
Selling, general and administrative expenses
|
(123) | (129) | (398) | (393) | ||||
Income (loss) from operations | 122 | 163 | 473 | 521 | ||||
Other income (expense) | ||||||||
Interest income
|
3 | 2 | 9 | 5 | ||||
Interest expense
|
(13) | (17) | (44) | (47) | ||||
Other income (expense) - net
|
(13) | 1 | (28) | (5) | ||||
Income (loss) from continuing operations before income taxes | 99 | 149 | 410 | 474 | ||||
(Provision for) benefit from income taxes
|
(11) | (30) | (73) | (85) | ||||
Income (loss) from continuing operations | 88 | 119 | 337 | 389 | ||||
Gain (loss) on disposition of discontinued operations- net of tax
|
- | - | - | 2 | ||||
Net income (loss) | $ | 88 | $ | 119 | $ | 337 | $ | 391 |
Basic earnings (loss) per Share: | ||||||||
Income (loss) from continuing operations
|
$ | 1.32 | $ | 1.77 | $ | 5.03 | $ | 5.75 |
Gain (loss) on disposition of discontinued operations - net of tax
|
- | - | - | 0.04 | ||||
Net income (loss) | $ | 1.32 | $ | 1.77 | $ | 5.03 | $ | 5.79 |
Diluted earnings (loss) per Share: | ||||||||
Income (loss) from continuing operations
|
$ | 1.31 | $ | 1.75 | $ | 4.98 | $ | 5.69 |
Gain (loss) on disposition of discontinued operations - net of tax
|
- | - | - | 0.03 | ||||
Net income (loss) | $ | 1.31 | $ | 1.75 | $ | 4.98 | $ | 5.72 |
Weighted average number of shares outstanding in per share calculation | ||||||||
Basic
|
66.9 | 67.4 | 67.0 | 67.6 | ||||
Diluted
|
67.4 | 68.2 | 67.7 | 68.4 |
September 30, 2024 | December 31, 2023 | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents
|
$ | 352 | $ | 371 |
Other current assets
|
2,029 | 1,874 | ||
Total current assets
|
2,381 | 2,245 | ||
Non-current assets | ||||
Property, plant and equipment - net
|
602 | 570 | ||
Other non-current assets
|
798 | 800 | ||
Total non-current assets
|
1,400 | 1,370 | ||
Total assets | $ | 3,781 | $ | 3,615 |
Liabilities and Stockholders' Equity | ||||
Current liabilities | ||||
Current portion of long-term debt | $ | 4 | $ | 3 |
Other current liabilities
|
992 | 1,116 | ||
Total current liabilities
|
996 | 1,119 | ||
Non-current liabilities | ||||
Long-term debt, less current portion
|
624 | 620 | ||
Other non-current liabilities
|
204 | 204 | ||
Total non-current liabilities
|
828 | 824 | ||
Total liabilities | 1,824 | 1,943 | ||
Total stockholders' equity | 1,957 | 1,672 | ||
Total liabilities and stockholders' equity | $ | 3,781 | $ | 3,615 |
Nine Months Ended September 30, |
||||
2024 | 2023 | |||
Operating Activities | ||||
Net income (loss)
|
$ | 337 | $ | 391 |
Depreciation and amortization
|
45 | 37 | ||
Changes in operating assets and liabilities and non-cash charges
|
(233) | (159) | ||
Net cash provided by (used in) operating activities
|
149 | 269 | ||
Investing Activities | ||||
Capital expenditures
|
(88) | (72) | ||
Other investing activities, net
|
8 | 18 | ||
Net cash provided by (used in) investing activities
|
(80) | (54) | ||
Financing Activities | ||||
Net cash provided by (used in) financing activities
|
(88) | (161) | ||
Effect of exchange rate changes on cash and cash equivalents
|
0 | (6) | ||
Net increase (decrease) in cash and cash equivalents
|
(19) | 48 | ||
Cash and cash equivalents at beginning of period
|
371 | 304 | ||
Cash and cash equivalents at end of period
|
$ | 352 | $ | 352 |
Q3 | Year to Date | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
% of | % of | % of | % of | |||||||||
Net Sales | Net Sales | Net Sales | Net Sales | |||||||||
Consolidated | ||||||||||||
Net sales | $ | 1,212 | $ | 1,290 | $ | 3,886 | $ | 3,929 | ||||
Income from operations | $ | 122 | 10.1% | $ | 163 | 12.6% | $ | 473 | 12.2% | $ | 521 | 13.3% |
MP | ||||||||||||
Net sales | $ | 444 | $ | 541 | $ | 1,463 | $ | 1,672 | ||||
Income from operations | $ | 56 | 12.6% | $ | 92 | 17.0% | $ | 205 | 14.0% | $ | 275 | 16.4% |
AWP | ||||||||||||
Net sales | $ | 769 | $ | 751 | $ | 2,423 | $ | 2,262 | ||||
Income from operations | $ | 83 | 10.8% | $ | 93 | 12.4% | $ | 324 | 13.4% | $ | 310 | 13.7% |
Corp and Other / Eliminations | ||||||||||||
Net sales | $ | (1) | $ | (2) | $ | - | $ | (5) | ||||
Loss from operations | $ | (17) | * | $ | (22) | * | $ | (56) | * | $ | (64) | * |
* Not a meaningful percentage |
Three Months Ended September 30, 2024 |
LTM Ended
September 30, 2024
|
|||
Net income (loss) | $ | 88 | $ | 464 |
(Gain) loss on disposition of discontinued operations - net of tax | - | 1 | ||
Income (loss) from continuing operations | 88 | 465 | ||
Interest & Other (Income) Expense | 23 | 74 | ||
Income Taxes | 11 | 50 | ||
Income (loss) from operations
|
122 | 589 | ||
Depreciation
|
14 | 59 | ||
Amortization
|
1 | 4 | ||
Non-Cash Interest Costs
|
(1) | (2) | ||
EBITDA
|
$ | 136 | $ | 650 |
Accelerated Vesting / Severance | 5 | 25 | ||
Other | - | 4 | ||
Adjusted EBITDA | $ | 141 | $ | 679 |
Net sales
|
$ | 1,212 | 5,109 | |
EBITDA Margin %
|
11.2 | % | 12.7 | % |
Adjusted EBITDA Margin % | 11.6 | % | 13.3 | % |
Three Months Ended September 30, 2024 |
LTM Ended September 30, 2024 |
|||||||
EBITDA
|
$ | 136 | 11.2 | % | $ | 650 | 12.7 | % |
MP Adjustments
|
3 | 0.2 | % | 10 | 0.2 | % | ||
AWP Adjustments
|
2 | 0.2 | % | 5 | 0.1 | % | ||
Corporate & Other Adjustments
|
- | - | % | 14 | 0.3 | % | ||
Adjusted consolidated EBITDA
|
$ | 141 | 11.6 | % | $ | 679 | 13.3 | % |
Year Ending December 31, 2024 Outlook |
||
Net cash provided by (used in) operating activities | $ | 325 |
Capital expenditures, net of proceeds from sale of capital assets | (125) | |
Free cash flow (use) | $ | 200 |
September 30, 2024 | ||
Net Debt
|
$ | 276 |
Divided by: Adjusted LTM EBITDA
|
679 | |
Net Leverage
|
0.4x |
September 30, 2024 | ||
Long-term debt, less current portion | $ | 624 |
Current portion of long-term debt | $ | 4 |
Debt | $ | 628 |
Less: Cash and cash equivalents | $ | (352) |
Net Debt | $ | 276 |
Sep '24 | Jun '24 | Mar '24 | Dec '23 | Sep '23 | ||||||
Annualized effective tax rate as adjusted(1)
|
17.3 | % | 17.3 | % | 17.3 | % | 18.2 | % | ||
Income (loss) from operations | $ | 122 | $ | 193 | $ | 158 | $ | 116 | ||
Multiplied by: 1 minus annualized effective tax rate | 82.7 | % | 82.7 | % | 82.7 | % | 81.8 | % | ||
Net operating income (loss) after tax | $ | 101 | $ | 160 | $ | 131 | $ | 95 | ||
Debt | $ | 628 | $ | 666 | $ | 724 | $ | 623 | $ | 709 |
Less: Cash and cash equivalents | $ | (352) | $ | (319) | $ | (365) | $ | (371) | $ | (352) |
Debt less Cash and cash equivalents | $ | 276 | $ | 347 | $ | 359 | $ | 252 | $ | 357 |
Stockholders' equity | $ | 1,957 | $ | 1,824 | $ | 1,732 | $ | 1,672 | $ | 1,496 |
Debt less Cash and cash equivalents plus Stockholders' equity | $ | 2,233 | $ | 2,171 | $ | 2,091 | $ | 1,924 | $ | 1,853 |
September 30, 2024 ROIC | 23.7 | % |
NOPAT as adjusted (last 4 quarters) | $ | 487 |
Average Debt less Cash and cash equivalents plus Stockholders' equity (5 quarters) | $ | 2,054 |
Nine Months Ended
September 30, 2024
|
Income (loss) from continuing operations before income taxes | (Provision for) benefit from income taxes | Income tax rate | |||
Reconciliation of annualized effective tax rate: | ||||||
As reported | $ | 410 | $ | (73) | 17.8 | % |
Effect of adjustments: | ||||||
Tax related to full-year effective tax rate expectation | - | (5) | ||||
Tax related to Swiss deferred tax asset | - | 7 | ||||
As adjusted | $ | 410 | $ | (71) | 17.3 | % |
Q3 2024
GAAP
|
Accelerated Vesting / Severance | Deal Related | Mark-to-Market |
Q3 2024
Adjusted (non-GAAP)
|
|||
Net Sales | $ | 1,212 | - | - | - | $ | 1,212 |
Gross Profit | 245 | 4 | - | - | 249 | ||
% of Sales | 20.2 | % | 20.5 | % | |||
SG&A | (123) | 1 | - | - | (122) | ||
% of Sales | (10.1 | %) | (10.1 | %) | |||
Income (Loss) from Operations | 122 | 5 | - | - | 127 | ||
Operating Margin | 10.1 | % | 10.5 | % | |||
Net Interest (Expense) | (10) | - | - | - | (10) | ||
Other (Expense) | (13) | - | 8 | - | (5) | ||
Income (Loss) from Cont. Ops. Before Taxes | 99 | 5 | 8 | - | 112 | ||
Benefit from (Provision for) Income Taxes | (11) | (1) | (2) | - | (14) | ||
Effective Tax Rate | 11.1 | % | 12.5 | % | |||
Income (Loss) from Continuing Operations | $ | 88 | 4 | 6 | - | $ | 98 |
Earnings (Loss) per Share | $ | 1.31 | 0.06 | 0.09 | - | $ | 1.46 |
YTD
Q3 2024
GAAP
|
Accelerated Vesting / Severance | Deal Related | Mark-to-Market |
YTD
Q3 2024
Adjusted (non-GAAP)
|
|||
Net Sales | $ | 3,886 | - | - | - | $ | 3,886 |
Gross Profit | 871 | 5 | - | - | 876 | ||
% of Sales | 22.4 | % | 22.5 | % | |||
SG&A | (398) | 6 | - | - | (392) | ||
% of Sales | (10.2 | %) | (10.1 | %) | |||
Income (Loss) from Operations | 473 | 11 | - | - | 484 | ||
Operating Margin | 12.2 | % | 12.5 | % | |||
Net Interest (Expense) | (35) | - | - | - | (35) | ||
Other (Expense) | (28) | - | 10 | 9 | (9) | ||
Income (Loss) from Cont. Ops. Before Taxes | 410 | 11 | 10 | 9 | 440 | ||
Benefit from (Provision for) Income Taxes | (73) | (2) | (2) | (3) | (80) | ||
Effective Tax Rate | 17.8 | % | 18.2 | % | |||
Income (Loss) from Continuing Operations | $ | 337 | 9 | 8 | 6 | $ | 360 |
Earnings (Loss) per Share | $ | 4.98 | 0.13 | 0.12 | 0.09 | $ | 5.32 |
Q3 2023
GAAP
|
Accelerated Vesting / Severance | Deal Related | Mark-to-Market |
Q3 2023
Adjusted (non-GAAP)
|
|||
Net Sales | $ | 1,290 | - | - | - | $ | 1,290 |
Gross Profit | 292 | - | - | - | 292 | ||
% of Sales | 22.6 | % | 22.6 | % | |||
SG&A | (129) | - | - | - | (129) | ||
% of Sales | (10.0 | %) | (10.0 | %) | |||
Income (Loss) from Operations | 163 | - | - | - | 163 | ||
Operating Margin | 12.6 | % | 12.6 | % | |||
Net Interest (Expense) | (15) | - | - | - | (15) | ||
Other (Expense) | 1 | - | - | (2) | (1) | ||
Income (Loss) from Cont. Ops. Before Taxes | 149 | - | - | (2) | 147 | ||
Benefit from (Provision for) Income Taxes | (30) | - | - | - | (30) | ||
Effective Tax Rate | 20.0 | % | 20.4 | % | |||
Income (Loss) from Continuing Operations | $ | 119 | - | - | (2) | $ | 117 |
Earnings (Loss) per Share | $ | 1.75 | - | - | (0.03) | $ | 1.72 |
YTD
Q3 2023
GAAP
|
Mark-to-Market |
OKC Sale Gain
|
YTD
Q3 2023
Adjusted (non-GAAP)
|
|||
Net Sales | $ | 3,929 | - | - | $ | 3,929 |
Gross Profit | 914 | - | - | 914 | ||
% of Sales | 23.3 | % | 23.3 | % | ||
SG&A | (393) | - | (2) | (395) | ||
% of Sales | (10.0 | %) | (10.1 | %) | ||
Income (Loss) from Operations | 521 | - | (2) | 519 | ||
Operating Margin | 13.3 | % | 13.2 | % | ||
Net Interest (Expense) | (42) | - | - | (42) | ||
Other (Expense) | (5) | (1) | - | (6) | ||
Income (Loss) from Cont. Ops. Before Taxes | 474 | (1) | (2) | 471 | ||
Benefit from (Provision for) Income Taxes | (85) | - | 1 | (84) | ||
Effective Tax Rate | 18.0 | % | 17.8 | % | ||
Income (Loss) from Continuing Operations | $ | 389 | (1) | (1) | $ | 387 |
Earnings (Loss) per Share
|
$
|
5.69 | (0.01) | (0.01) |
$
|
5.67 |
Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 | |||||||
Consolidated operating income (GAAP)
|
$ | 122 | 10.1 | % |
$
|
473 | 12.2 | % |
MP Adjustments
|
3 | 0.3 | % | 4 | 0.1 | % | ||
AWP Adjustments
|
2 | 0.1 | % | 3 | 0.1 | % | ||
Corporate & Other Adjustments
|
- | - | % | 4 | 0.1 | % | ||
Adjusted consolidated operating income (non-GAAP) | 127 | 10.5 | % | 484 | 12.5 | % | ||
Consolidated operating income (GAAP)
|
$
|
122 | 10.1 | % |
$
|
473 | 12.2 | % |
Accelerated Vesting / Severance | 5 | 0.4 | % | 11 | 0.3 | % | ||
Adjusted consolidated operating income (non-GAAP) | 127 | 10.5 | % | 484 | 12.5 | % | ||