Strong profit growth for Genie

Terex has published its third quarter results, with AWP revenue growth slowing while profits continue to rise rapidly. No mention was made of the Crane division which is now lost in the Material Processing business.

AWP /Genie
Revenues for the nine months to the end of September were $2.26 billion, up 24 percent on the same period last year. Order intake for the period declined 15.5 percent to $2.66 billion, while the order book/backlog at the end of September was nine percent lower at $2.46 billion.
Operating profit for the period more than doubled to $310 million.

Third Quarter
Revenues in the third quarter increased 13.3 percent to $751 million, around $13 million of the growth came from positive effects of exchange rate movements.
Operating profit for the period increased 47.5 percent to $93.6 million, driven
by higher demand, foreign exchange improvements in the supply chain, cost reduction initiatives and price increases, partially offset by cost increases, including costs associated with the ramp-up of the new facility in Mexico and supply chain issues resulting in lost production and manufacturing inefficiencies at Terex Utilities.

Terex Group - YTD
Terex as a whole reported a 23 percent rise in revenues for the nine months to $3.93 billion, while pre-tax profits jumped 82 percent to $474 million. Net debt at the end of September was $356.4 million a 24 percent reduction on the start of the year.

Full year forecasts: Terex has tweaked its full year group revenues forecast to $5.15 billion, most of which come from a slightly higher Genie/AWP forecast, up just over one percent to a conservative $2.92 billion.

Chief executive John Garrison said: "We demonstrated strong execution in the third quarter, and I want to thank all our dedicated team members for their hard work and continued commitment to our Zero Harm Safety Culture and improving deliveries to our customers and dealers.”

Vertikal Comment

This a decent result from Genie, especially in terms of profitability, although in percentage growth terms it is lagging behind JLG and Haulotte, particularly in terms of revenue and backlog growth. The company is however creating some solid momentum and beginning to regain its 'mojo', after a challenging period during the pandemic years.

I would expect Genie to significantly exceed the updated forecast and at least zip past the $3 billion mark for the full year. Although it might be prudent to carry some of the backlog into the new year of course. Much will depend on the fourth quarter order intake from the mega rental companies such as United and Sunbelt etc..

A positive result all the same.