Terex Corporation has updated its 2024 outlook, with the full-year adjusted earnings per share (EPS) now expected to be between $5.80 and $6.20, excluding the benefit of the recently announced environmental solutions group (ESG) acquisition. This is a significant change from the previous outlook.
In addition, the revenue for 2024 is now projected to be between $4.85 billion and $5.05 billion. This indicates a shift in expected sales volume and reflects adjustments made by customers and dealers in response to the macro environment.
Terex President and CEO, Simon Meester, highlighted that the company's global channels made adjustments faster than anticipated, leading to lower sales volume. He noted that customers in the Aerial Work Platforms (AWP) segment reduced planned deliveries to align with seasonal rental demand. Meanwhile, dealers in the Material Processing (MP) segment adjusted their inventory levels in response to the macro environment.
Meester also mentioned that despite the near-term challenges, the long-term mega trends remain intact. The company plans to take action to align its cost structure and production plans accordingly.
Moreover, Terex is expecting to close the ESG acquisition early in Q4, which is anticipated to generate approximately $45 million of adjusted EBITDA in that quarter. This acquisition is expected to reduce cyclicality, be financially accretive, add meaningful scale, and offer operational and commercial synergies with both the MP and AWP segments.
The company will host a conference call to review its third-quarter 2024 financial results on October 30, 2024. This call will provide further insights into Terex's performance and outlook for the upcoming period. As a result of these announcements, the company's shares have moved -3.9% on the market, and are now trading at a price of $51.74. If you want to know more, read the company's complete 8-K report here.
