Terex reported Q3 revenue in line with expectations, with sequential improvements in both AWP and MP segments. The company demonstrated strong cost control, resulting in profitability that outperformed initial outlook. Positive free cash flow was generated through net working capital management.
Q3 revenue improved sequentially by almost 11%, with AWP up almost 8% and MP up approximately 18%.
Customer bookings in Q3 showed a dramatic improvement from Q2, with AWP bookings up over 100% and MP bookings up 36% sequentially.
Terex backlog was consistent with backlog at the end of Q2 and down year-over-year by only 5%.
Approximately 5% operating margin was achieved, with both segments generating positive operating margins.
Terex expects the markets to stabilize, anticipating H2 revenue to be similar to H1 2020. They are committed to managing costs and maintaining a 25% decremental margin target. Full year 2020 free cash flow generation is expected to be approximately the same as in 2019.
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