06.02.2025

Slow year end for Genie

Terex has reported its full year and fourth quarter results.

Terex Cranes' results are buried within the Material Processing division, but Genie - Terex AWP - results are published as one of three divisions within the Terex Group.

Full Year

Genie revenues for the 12 months to the end of December improved almost 2.5 percent to just a fraction under $3 billion, while operating profit dipped almost eight percent to $342 million. The backlog/order book at the end of December was $1.45 billion compared to $2.64 billion a year earlier, a fall of 45 percent, but closer to levels seen up until the end of 2021.

Forecast for 2025 – the company is anticipating a double digit decline up to $2.41 billion but does not explain why.

Fourth Quarter

Fourth quarter revenues declined 13 percent to $573 million, as a result of customers adjusting their delivery schedules to the shorter lead times. Order intake was $1.8 billion down 33 percent on the same period last year, leaving the backlog/order book at $1.45 billion compared to $2.64 billion the year before.

Operating profit for the quarter plunged 70 percent to $18 million, due says the company, to aggressive production cuts, product moves, and unfavourable product mix.

Terex Group

Terex as a whole reported full year revenues of $5.1 billion marginally lower than a year ago, with a pre-tax profit of $408 million, down 30 percent on 2023.

Terex chief executive Simon Meester said: “We continued to make progress executing our strategy in 2024, making Terex a more resilient, less cyclical company with exciting growth and value creation opportunities ahead. Our legacy businesses adapted quickly to industry-wide channel adjustments in the second half of the year, reducing costs and stepping down production levels to align with demand. Our Environmental Solutions Group made a very strong contribution in the fourth quarter, following the October completion of the acquisition, fulfilling the commitment of being financially accretive from day one. Our earnings per share were the second highest in Terex history reflecting the strength of our portfolio and ability to perform better throughout the cycle than in the past."

"In 2025, we will continue to execute our strategy, integrate ESG, and make lasting improvements across Terex. We expect the industry wide channel dynamics that impacted our Aerials and MP businesses in the back half of 2024 to carry into the first half of 2025. We also expect ESG and Terex Utilities to carry strong momentum into 2025 and continue to grow. Overall, we expect 2025 net sales of $5.3 to $5.5 billion."

Vertikal Comment

Not the best numbers from Genie, but certainly not dreadful, particularly in terms of revenues which held steady, although fourth quarter sales were more depressing, but this is probably as more to do with timing given the shorter lead times, and the introduction of new products, which can disrupt sales as they are introduced. The company still ended the year with an order book equivalent to almost six months sales, just enough to encourage order placement but not long enough to push customers towards the competition.

The company’s new products show a fresher more innovative spirit, and the atmosphere on the stand at the ARA was quite positive. With customers seeming to pick up on a renewed optimism, and yet – unless we have missed something the company has issued what seems to be a pessimistic full year forecast.
Perhaps we are just optimists and Terex managers are realists?