Terex’s Net Sales Drop 4.9 Percent in Q1; New Environmental Solutions Segment Contributes a Third
Terex posted first quarter 2025 net sales of $1.229 billion compared to $1.292 billion in the first quarter of 2024, a 4.9-percent decrease. The aerial segment led the way with net sales of $450 million but were down 27.8 percent year over year, primarily because of a return to a more customary seasonal delivery pattern and the timing of customers’ expected equipment replacement schedule. Book-to-bill in the quarter was positive at 144 percent.
Operating profit of $2 million, or 0.4 percent of net sales was down from $92 million, or 14.8 percent of net sales a year ago. Adjusted operating profit was $14 million, or 3 percent of net sales for the first quarter of 2025, compared to $93 million, or 14.9 percent of net sales in Q124. The change was primarily because of lower sales volume and unfavorable absorption caused by lower production volumes.
Terex’s Materials Processing segment posted net sales of $382 million, down 26.5 percent. Still the numbers were in line with expectations, primarily because of lower channel requirements and end-market demand across most product lines and geographies.
Operating profit was $36 million, or 9.4 percent of net sales, compared to $72 million, or 13.9 percent of net sales in the year-ago period.
Environmental Solutions jump 10.5 percent
The Environmental Solutions segment posted net sales of $399 million, up 10.5 percent on a pro forma basis compared to Q124.
“Our overall financial results exceeded our initial outlook for the first quarter due to strong execution in our recently acquired Environmental Solutions Group business within our new Environmental Services segment, which accounted for roughly one-third of our revenue in the quarter,” said Simon Meester, Terex and CEO. “Materials Processing and Aerials performance was consistent with our plan to reset production levels in Q4 and Q1 to align supply with demand before returning to sequential growth in Q2. Looking ahead, we are closely monitoring the changing geopolitical and macro environment and the potential impacts of tariffs and related factors on our business. With the addition of ESG, we are a more U.S.-centric company than in the past and expect to produce approximately 75 percent of our 2025 U.S. equipment sales in the United States, which helps limit our exposure. We believe we are competitively well-positioned to effectively deal with the evolving situation going forward, enabling us to maintain our 2025 EPS outlook.”
“Our Q1 results reflect the important addition of ESG to the Terex portfolio,” added Jennifer Kong-Picarello, senior vice president and chief financial officer. “Our ES segment that accounted for about one-third of our Q1 sales is characterized by very low cyclicality and a strong, resilient margin profile. MP and Aerials performed in line with our 2025 plans, as sales and margins are expected to improve heading into the second quarter through higher production and continued cost control.”
In regard to tariffs, Kong-Picarello said, “The majority of the products we sell in the United States, we make in the United States, which largely limits our exposure. Moreover, we initiated mitigation actions last year and in the first quarter of 2025 in anticipation of additional tariffs, leveraging our global capabilities to manage the impact. As a global company with a significant footprint in the United States and around the world, we have optionality and are ready to take additional actions if needed.”
