On this page of StockholderLetter.com we present the latest annual shareholder letter from TEREX CORP — ticker symbol TEX. Reading current and past TEX letters to shareholders can bring important insights into the investment thesis.

 •  4/1/2025 Letter Continued (Full PDF)
 •  3/31/2023 TEX Stockholder Letter
 •  4/5/2024 TEX Stockholder Letter
 •  More "Industrial Machinery & Equipment" Category Stockholder Letters
 •  TEX Benford's Law Stock Score = 97

TEX Shareholder/Stockholder Letter Transcript:

2024 ANNUAL REPORT
Execute     Innovate     Grow Terex Corporation 2024 Annual Report
E X E C U T E 4 I N N O VAT E 4 G R O W

OUR INVESTMENT THESIS
Terex provides market-leading products and
    Market Leading Businesses

to maximize customer return on investment. We are
    Attractive and Diverse
End Markets
and operating discipline aiming to deliver best-in-
    Portfolio Synergies

We believe the company is strongly positioned to
    Engaged Team Members
and Values-based Culture
solutions to the global industrial sector, that strive
a globally diversified company with strong values
class financial performance for our shareholders.
benefit from the world   s megatrends, enabling us
to accelerate our growth for years to come.
NYSE: TEX

FRO M T H E P R E SI D E N T & C E O
A Stronger Portfolio,
Poised for Growth
Dear Shareholders,
2024 was a transformational year for Terex
as we completed the largest acquisition
in the company   s history, acquiring
Environmental Solutions Group (ESG) in
October, establishing Terex as a leader in
the growing waste and recycling market.
Adding ESG reduces our cyclicality, adds
a market-leading business to Terex   s
portfolio and creates tangible synergies
across the company while accelerating
long-term growth.
Solid 2024 Financial Results
In 2024, we delivered $6.11 adjusted
earnings per share1, the second highest
full year EPS in the company   s history,
on sales of $5.1 billion. Despite industry
channel adjustments, after years of supply
constraints, which impacted our two
legacy segments, Materials Processing
(MP) and Aerial Work Platforms (AWP)
both still delivered double-digit operating
margins. As planned, ESG was immediately
financially accretive, contributing
$51 million or 22% adjusted EBITDA2
on revenue of $228 million in the
fourth quarter period following the
October 8 close.
We funded the ESG acquisition at
favorable rates and terms and maintained
our corporate ratings. Our balance sheet
remains solid and our capital structure is
flexible with ample liquidity. We reported
return on invested capital of 19.4%3,
well above our cost of capital. Returning
capital to shareholders remains a priority.
In 2024, Terex returned $92 million to
shareholders through share repurchases
and dividends.
Terex is in a strong financial position to
continue investing in our business and
executing our strategic initiatives, while
returning capital to shareholders.
2024 Terex Annual Report
WHY INVEST IN TEREX?
Market Leading Businesses
As a diverse, global, industrial company,
Terex is well positioned to offer investors
an attractive opportunity to out-perform
in the industrial markets. It is important
to recognize that Terex is a much
different company than in years past. The
businesses that make up our portfolio
today, including globally renowned brands
such as Heil, Marathon, Powerscreen, Finlay,
Ecotec, CBI, Terex Recycling Systems,
Genie and Terex Utilities are leaders in
their respective markets, each focused on
providing the best ROI for our customers
through our high quality, innovative
products and world-class aftermarket
parts and support. We generate a growing
revenue stream from our value-enhancing
digital SAAS (software as a service)
solutions where we see application and
leverage opportunities across the portfolio.
The backbone of our portfolio is our global
manufacturing and sourcing footprint which
gives us scale and flexibility, enabling us to
manage political and economic dynamics.
Attractive End Markets
Adding ESG increased the size and scope
of our addressable markets. Approximately
25% of our global revenue is from waste
and recycling markets characterized by
low cyclicality and steady growth. Waste
collection is an essential service with
limited exposure to macroeconomic
or other industrial cyclical dynamics.
Population growth, recycling innovation,
collection productivity and replacement
demand is expected to fuel growth for
the foreseeable future.
About 20% of our business is related to
infrastructure where significant investment
is being put in place in the United States
and around the world. Our Aggregates
businesses support the early stages
including demolition and site preparation.
Our Concrete businesses follow to put
foundations and structures in place. Genie
is next on scene with a full line of boom,
scissor and portable lifts to enable safe
work at height and our telehandlers are
jobsite work horses, moving material
anywhere it is needed.
The growing Utilities market represents
about 10% of our revenue. Spending on
Utilities will continue to increase to meet
growing energy demand coming from
AI, digitization and electrification and to
strengthen distribution infrastructure.
General construction, which in the past
had represented the majority of our end
markets, is now less than a third. When you
consider the housing shortage in North
American, the re-shoring of manufacturing,
and the growth in digitization and data
centers, the longer-term outlook for
construction is positive.
Our equipment is also used in
commercial and industrial
applications, including electric
Genie scissors in data centers
1

and booms on set in the growing
entertainment market. It is also important
to recognize that over two-thirds of our
revenue base is in North America. We are a
more US-centric company than in the past.
Portfolio Synergies
The value-enhancing thread that we
continue to weave is capturing the
growing synergies across our portfolio.
For example, technology investments
that Genie is making in robotics will
be leveraged by ESG, Utilities and
Materials Processing (MP). ESG   s digital
products, like Third Eye, have application
opportunities in MP and Utilities, just one
of many examples of commercial upside.
We also have more traditional synergy
opportunities across our global supply
chain, manufacturing footprint and
operating system. For example, the
Heil refuse collection truck business
that was part of the ESG acquisition is
regarded among best-in-class at building
a vocational body on a heavy duty truck
chassis. Our Utilities business does
fundamentally the same thing, building
bucket trucks and digger derricks on
chassis and will benefit from the significant
productivity gains made at Heil over the
past several years. With backlog stretching
into 2026, unlocking capacity at Terex
Utilities will enable more growth for that
business.
Key Strategic Priorities
We continue to implement our Execute,
Innovate and Grow strategy, and will
continue to drive more progress in 2025
and the years to come.
An execution priority is to deploy our Terex
Operating System (TOS), which is our
common framework for driving excellence
across our company. Simply put, TOS
enables us to deliver compounding
results through continuous improvement.
While the specific transformational
initiatives vary, the overall aim of TOS is
focused on three critical areas: increasing
predictability and accountability across our
company, accelerating profitable growth,
and continuously improving efficiency.
When it comes to Innovation, we have a
very exciting new product development
pipeline focused on maximizing return on
investment for our customers. A great
example is Heil   s RevAMP eASL, the
industry   s first all-electric refuse collection
body. Our customers are excited about its
fuel savings, productivity improvements
and its contribution to their sustainability
and contamination reduction objectives.
We also continue to invest in robotics,
automation, and digitizing workstreams to
make our operations more efficient and
more flexible.
Turning to growth, completing the
ESG acquisition was a significant step
forward. We fully expect organic growth
in that business to continue in line with
its demonstrated performance over the
past decade. On the Utilities front, we are
unlocking growth potential by improving
productivity and expanding capacity, as
the long-term demand outlook continues
to expand. Starting in 2025, ESG and
Utilities will be combined to create our
new Environmental Solutions (ES) segment
which will be led by the executive team
that charted ESG   s impressive growth over
the past 15 years. I am excited about the
growth and profitability enhancements
ahead for our new ES segment.
Our Materials Processing business
has been a consistent performer
demonstrating growth and solid doubledigit margins throughout the cycle. MP
continues to leverage its operational and
commercial capabilities to gain share
in new attractive market segments like
vegetation management and mobile
crushing and screening in India. I am
pleased by the market share gains
the Genie team continues to achieve
by implementing its Quality by Design
strategy focused on providing the
highest ROI products to its global
customers. Genie is well positioned to
continue to gain share in North America,
Europe and other key markets.
In total, Terex has a $40B addressable
market with significant organic growth
potential.
Looking Ahead
Our diverse portfolio of market leading
businesses will benefit from global megatrends including high levels of infrastructure
investments, digitalization, power grid
upgrades, on-shoring and recycling.
We expect the U.S. economy to remain
strong and the business environment to
continue to improve, while Europe is likely to
stabilize. The industry channel adjustments
that impacted MP and Aerials in 2024, we
believe are largely behind us, allowing those
businesses to return to their traditional
seasonal patterns in 2025 supported by a
healthy backlog. On top of that, we expect
the positive momentum in Environmental
Solutions to continue through the year.
We will continue to work to improve
through-cycle financial performance as
we integrate ESG, refine our structure and
realize synergies across the company.
We have a tremendous global team that is
highly engaged and committed to executing
our strategy and delivering value to our
customers and shareholders. We have
made great strides together, and we will
continue to grow our company together.
Simon Meester
President and Chief Executive Officer
1 Adjusted earnings per share is a non-GAAP financial measure. Fiscal 2024 GAAP diluted earnings per share was $4.96, and, as adjusted, $6.11. Fiscal 2024 GAAP diluted
earnings per share included accelerated vesting/severance of $0.17, deal related of $0.33, purchase price accounting of $0.43, mark-to-market of $0.10, and tax of $0.12.
2 ESG   s adjusted EBITDA is a non-GAAP financial measure. In the fourth quarter period following the October 8 close, ESG   s GAAP income (loss) from operations of
$12 million included depreciation of $1 million, amortization of $18 million, and purchase price accounting of $20 million. Adjusted EBITDA was $51 million.
3 Return on invested capital is a non-GAAP financial measure. See Item 7 of the Annual Report on Form 10-K for reconciliation of this non-GAAP financial measure.
2
2024 Terex Annual Report



 4/1/2025 Letter Continued (Full PDF)