02.05.2025

Sharp decline for Genie

Terex has released its first quarter results with Genie/Terex AWP experiencing a very poor start to the year in terms of both sales and profits.

Terex AWP /Genie

Revenues for the three months to the end of March were $450 million, down 27.8 percent on the same quarter last year when it posted strong growth. Primarily due, says the company, to “a return to a more customary seasonal delivery pattern and the timing of our customers' expected equipment replacement schedule”

Order intake for the period was 14 percent lower than at this point last year at $1.58 billion, leaving the Order book/backlog 39 percent lower at $1.01 billion, but that still equates to almost five months production and is more than 25 percent higher than it was at the start of the year and in line or better than in 2019, 2020 or 2022.

Operating profit for the period collapsed falling 97 percent to $2 million, although this does include $14 million of ‘exceptionals’ most of it a $10 million litigation reserve along with $1 million for exceptional tariff costs.

Full year forecast
The company is anticipating full year revenues of $2.41 million which will be 20 percent lower than in the full year 2024.

Terex Group

Terex as a whole reported a 4.9 percent fall in revenues for the three months to $1.23 billion, while pre-tax profit dropped 81 percent to $26 million.

Net debt at the end of March was $2.59 billion, compared to $724 million at the same point last year – due to the acquisition of the Environmental Solutions Group in a $2 billion deal in the second half of last year.

Chief executive Simon Meester said: "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 a third of our revenue in the quarter.
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 Environmental Solutions, we are a more US centric company than in the past and expect to produce approximately 75% 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."

Vertikal Comment

This is an interesting set of results, cut production and you are sure to see sales fall, the challenge is always ramping up again when the market bounces back. Genie says that 70 percent of what it sells in the USA is now made in the USA – which seems high, but given lower sales of Genie, with possibly higher sales at Terex aerials and perhaps it is understandable.

Sadly, we cannot see the Terex crane sales, as there are buried within the Material Processing business and not disclosed. At Bauma there ‘gossip’ – and it was just that along with rumours that the crane business might just be up for sale, if so – and we found no tangible evidence or foundation for this - it might help pay down the debt incurred to acquire ESG, which looks like a good move for the group and helps dilute the impact of the cyclical construction equipment market.

Genie’s sales are expected to pick up during the current quarter along with margins, and all in all it should be a very interesting and transformational year for Terex.