Terex Corporation (NYSE:TEX) delivered stronger-than-expected earnings for the second quarter, buoyed by a solid showing in its Environmental Solutions division, even as other business units faced headwinds. Shares rose modestly by 0.44% in pre-market trading after the results were announced.
The company reported adjusted earnings of $1.49 per share, outpacing the consensus estimate of $1.45. Revenue reached $1.49 billion, slightly above analyst projections of $1.44 billion, though down 12% year-over-year for its legacy operations—excluding the recent acquisition of the Environmental Solutions Group.
“Our overall financial performance demonstrates the power of the evolving Terex portfolio,” said Simon Meester, Terex’s President and CEO. “Our Environmental Solutions segment exceeded our outlook for the second quarter with strong sales and margin performance.”
Performance across the company’s segments varied. Environmental Solutions stood out, posting $430 million in sales, a 12.9% increase on a pro forma basis, and an adjusted operating margin of 19.1%. Meanwhile, the Aerials unit saw revenue decline 17.1% to $607 million, largely due to cutbacks in spending by rental clients. Revenue in the Materials Processing segment dropped 9% to $454 million.
Despite the mixed segment performance, Terex reaffirmed its full-year 2025 adjusted EPS guidance of $4.70 to $5.10, aligning with market expectations. The company also reiterated its full-year revenue forecast of $5.3 to $5.5 billion.
“Looking ahead, bookings across the company have returned to normal seasonal patterns, and the year-over-year pro forma growth of 19% and healthy backlog supports our second half sales outlook,” said Jennifer Kong-Picarello, Senior Vice President and CFO.
Free cash flow for the quarter rose sharply to $78 million, up from $43 million in the same period a year ago. Reflecting its confidence in long-term growth, Terex’s board approved a new $150 million share repurchase authorization.
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