Q3 2023 Terex Corp Earnings Call

Speaker 1: Greetings and welcome to the CARAC's third quarter 2023 results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal-

Greetings and welcome to the Terex third quarter 2023 results conference call.

At this time all participants are in a listen only mode.

A brief question and answer session will follow the formal presentation.

As a reminder, this conference is being recorded.

Speaker 1: It is now my pleasure to introduce your host, Péritá Shmutra, Head of Investor Relations.

It is now my pleasure to introduce your host Caritas Felicia head of Investor Relations.

Speaker 2: Good morning and welcome to the Tarot Curve Quarter 2023 earnings conference call. A copy of the press release and presentation slides are posted on our investor relations website at investors.tarotx.com. In addition, the replay and slide presentation will be available on our website. We are joined by John Garrison, chairman and chief executive officer, and Julie Beck, senior vice president and chief financial officer. They have prepared a re-mirten will be called.

Good morning, and welcome to the Terex third quarter 2020 earnings conference call a copy of the press release and presentation slides are posted on our Investor Relations website at investors Terex Dot Com. In addition, the replay and slides presentation will be available on our website.

I'm joined by John Garrison, Chairman, and Chief Executive Officer, and Julie back.

And your wife's president and Chief Financial Officer.

They have prepared remarks will be followed by Q&A.

Speaker 2: Please turn to slide two of the presentation which reflect our safe harbor statement.

Please turn to slide two of the presentation, which reflects of our safe Harbor statement.

Speaker 2: Today's conference call contains forward-looking statements, which are subject to this that could cause actual results to be materially different from those expressed or implied.

Today's conference call contains forward looking statements.

Which are subject to risks that could cause actual results to be materially different from those expressed or implied.

Speaker 2: In addition, we will be discussing non-gap information we believe is useful in evaluating the company's operating performance. Reconciliation for these non- GAAP measures can be found in the conference call material. Please turn to slide three and I'll turn it over to John Garrison.

In addition, we will be discussing non-GAAP information is useful in evaluating the company's operating performance reconciliations.

Reconciliations for these non-GAAP metrics can be found in the conference call materials.

Please turn to slide three and I'll turn it over to John garrison.

Speaker 3: Thank you, parents. Awesome. Good morning. I'd like to welcome everyone to our earnings call and appreciate your interest in Tarek.

Thank you Pere Jonathan Good morning, I'd like to welcome everyone to our earnings call and appreciate your interest in Terex.

Speaker 3: I'd like to begin by thanking all Taris team members around the globe for their exceptional efforts in this challenging global macro economic environment and for their continued commitment towards their harm safety culture and tariff way values. Safety remains the top.

I'd like to begin by thanking all terex team members around the globe for their exceptional efforts in this challenging global macroeconomic environment.

For their continued commitment towards zero harm safety culture, and Terex way values.

<unk> remains the top priority of the company.

Speaker 3: given by pink safe, work safe, home safe. I'm proud of the Taris team members' resilience as they continue to work tirelessly to improve our performance for our customers, dealers and shareholders, while maintaining a safe working environment.

Driven by thanks safe work safe home safe.

Proud of the Terex team members resilience as they continue to work tirelessly to improve our performance for our customers dealers and shareholders, while maintaining a safe working environment.

Speaker 3: We've turned to slide four to review our strong third quarter financial results.

Please turn to slide four to review, our strong third quarter financial results.

Speaker 3: This quarter of the team delivered sales of $1.3 billion, up 15% from last year.

This quarter the team delivered sales of $1 3 billion.

Up 15% from last year.

Speaker 3: operating margins of 12.7% an expansion of 190 basis points from the prior year.

Operating margins of 12, 7% an expansion of 190 basis points from the prior year.

Speaker 3: and earnings per share of $1.75, up 46% on a year-over-year base.

And earnings per share of $1 75 up 46% on a year over year basis.

Speaker 3: As a result of solid execution by our team members throughout the year and a robust backlog, we are increasing our four year earnings outlook to approximately $7.5 per share.

As a result of solid execution by our team members throughout the year and a robust backlog.

We are increasing our full year earnings outlook to approximately $7 five per share.

Please turn to slide five.

Speaker 3: Tariffs products have leading positions in diverse and attractive and market.

Terex products have leading positions in diverse and attractive end markets with.

Unknown Executive: Greetings and welcome to the Terex Third Quarter 2023 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation.

Speaker 3: The global focus on sustainability is driving increasing investments in infrastructure, digitization, waste recycling, and electrification.

The global focus on sustainability is driving increasing investments and infrastructure digitization waste recycling and electrification.

Speaker 3: These mega trends provide additional growth opportunities for all of our business.

These mega trends provide additional growth opportunities for all of our businesses.

Paretosh Misra: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Paretosh Misra, head of investor relations.

Speaker 3: Our empty aggregate business, led by PowerScreen and Finley, have leading positions in global mobile crushing and screening markets that will benefit from growth in the demand for construction materials.

RMT aggregate business, whereby power screen, and finally have leading positions in global mobile crushing and screening markets that will benefit from growth in the demand for construction materials.

Paretosh Misra: Good morning and welcome to the Terex Third Quarter 2023 earnings conference call. A copy of the press release and presentation slides are posted on our investor relations website at investors.terex.com. In addition, the replay and slide presentation will be available on our website.

Speaker 3: Mobile aggregate equipment has the benefit of reducing unnecessary material handling and the ability to recycle materials at the point of use.

Mobile aggregate equipment has the benefit of reducing unnecessary material handling and the ability to recycle material at the point of views.

Speaker 3: MP brands, including EcoTech, CBI and Territz washing systems, are at the forefront of developing innovative solutions to meet rising demand for recycling technology.

MP brands, including Ecotec, CVI and Terex washing systems are at the forefront of developing innovative solutions to meet rising demand for recycling technologies.

Paretosh Misra: We are joined by Jon Garrison, Chairman and Chief Executive Officer, and Julie Beck, Senior Vice President and Chief Financial Officer. Their prepared remarks will be followed by Q&A.

Speaker 3: Our utilities business offers a wide portfolio of products to support strengthening demand from electrification investments.

Our utilities business offers a wide portfolio of products to support strengthening demand from electrification investments.

Paretosh Misra: Please turn to slide two of the presentation which reflect our safe harbor statement. Today's conference call contains forward-looking statements, which are subject to this that could cause actual results to be materially different from those expressed or implied. In addition, we will be discussing non-gap information we believe is useful in evaluating the company's operating performance. Recommendations for these non-gap measures can be found in the conference call materials. Please turn to slide three and I'll turn it over to Jon Garrison.

Speaker 3: and our gene boom, scissors, verticals, and telehammers are essential components of any infrastructure or on-chilling projects.

NRG booms scissors verticals and tailor handlers are essential components of any infrastructure or onshoring project.

Let's turn to slide six.

We remain encouraged by the favorable trends in our key markets, especially in North America.

The U S is investing in infrastructure.

Speaker 3: with the three federal stimulus programs that were passed in 2021 and 2022.

With the three federal stimulus programs that were passed in 2021 and 2022. These.

Speaker 3: These investments provide a source of resilient demand visibility over the next several years.

Paretosh Misra: Thank you, Paretosh and good morning. I'd like to welcome everyone to our earnings call and appreciate your interest in Terex. I'd like to begin by thanking all Terex team members around the globe for their exceptional efforts in this challenging global macroeconomic environment and for their continued commitment towards their harm safety culture and tariff's way values. Safety remains the top priority of the company given by thankssafe, worksafe, homesafe. I'm proud of the Terex team members' resilience as they continue to work tirelessly to improve our performance for our customers, dealers, and shareholders while maintaining a safe working environment.

These investments provide a source of resilient demand visibility over the next several years.

Speaker 3: More than 35,000 projects representing an excess of 120 billion in funding have been announced or awarded.

More than 35000 projects Rep.

Representing in excess of 120 billion in funding have been announced or awarded.

Speaker 3: U.S. non-residential construction spending is up 16% year over year.

U S nonresidential construction spending is up 16% year over year.

Speaker 3: while manufacturing spending is up 63% in the last 12-month period.

While manufacturing spending is up 63% in the last 12 month period.

Speaker 3: driven by multi-billion dollar and multi-year investments related to semiconductor manufacturing, clean energy, and EV battery projects.

Driven by multibillion dollar and multi year investments related to semiconductor manufacturing clean energy and EV battery projects.

Speaker 3: In addition, the biggest growth areas in construction will be publicly financed or built by manufacturers who are ensuring to reduce geoputical risk and these investments are less sensitive to interest.

In addition.

The biggest growth areas in construction will be publicly financed or built by manufacturers, who are onshoring to reduce geopolitical risks and these investments are less sensitive to interest rates.

Paretosh Misra: Please turn to slide four to review our strong third quarter financial results. This quarter of the team delivered sales of $1.3 billion, about 15% from last year. Operating margins of 12.7%, an expansion of 190 basis points from the prior year, an earnings per share of $1.75 of 46% on a year-over-year basis. As a result of solid execution by our team members throughout the year and a robust backlog, we are increasing our four-year earnings outlook to approximately $7.5 per share.

Speaker 3: Our end market diversification is a strength, and we are excited about the opportunities to grow our business. Please turn to slide 7 to

Our end market diversification is the strength and we are excited about the opportunities to grow our business. Please.

Please turn to slide seven to review our backlog.

Speaker 3: Our Q3 backlog of $3.3 billion remains significantly above historical levels and is the second highest in recent history.

Our Q3 backlog of $3 3 billion remained significantly above historical levels and is the second highest in recent history.

Speaker 3: providing healthy momentum going into 2024.

<unk> healthy momentum going into 2024.

Speaker 3: Although backlog has declined sequentially from Q2 levels, this is a function of improved manufacturing production volumes and customer delivery.

Although our backlog has declined sequentially from Q2 levels. This is a function of improved manufacturing production volumes and customer deliveries.

Speaker 3: Consolidated Q3 bookings remain solid at approximately $900 million.

Paretosh Misra: Please turn to slide five. Terex products have leading positions in diverse and attractive end-market. The global focus on sustainability is driving increasing investments in infrastructure, digitization, waste recycling, and electrification. These mega trends provide additional growth opportunities for all of our businesses. Our empty aggregate business, led by power screen and thinly, have leading positions in global crushing and screening markets that will benefit from growth in the demand for clean production materials.

Consolidated Q3 bookings remained solid at approximately $900 million.

Speaker 3: and reflects a return to more normal ordering patterns for our dealers and customers.

And reflects a return to more normal ordering patterns for our dealers and customers.

Speaker 3: Importantly, we're seeing minimal customer and dealer push out and cancellation.

Importantly, we are seeing minimal customer and dealer push outs and cancellations.

Speaker 3: The higher interest rates, inflation, and geopolitical uncertainties have had an impact on Europe , and we are seeing softening in that market, but it's important to emphasize demand in North America is very strong.

The higher interest rates inflation and geopolitical uncertainties have had an impact on Europe.

And we are seeing softening in that market, but it is important to emphasize demand in North America is very strong.

Speaker 3: For more than two years, our backlog levels have increased as we've been constrained in our production ability due to supply chain challenges.

For more than two years, our backlog levels have increased as we've been constrained in our production ability due to supply chain challenges.

Jon Garrison: Mills. Mobile aggregate equipment has the benefit of reducing unnecessary material handling and the ability to recycle materials at the point of use. MP brands, including Ecotech, CBI and Terex washing systems are at the forefront of developing innovative solutions to meet rising demand for recycling technologies. Our utilities business offers a wide portfolio of products to support strengthening demand from electrification investments. And our gene booms, scissors, verticals and telehammers are essential components of any infrastructure or on-chilling projects.

Speaker 3: As we and the industry improve deliveries and lead times, our backlog will eventually return to normalized levels, which is a good thing for our customers.

As we and the industry improve delivery and lead times.

Our backlog will eventually return to normalized levels, which is a good thing for our customers.

Speaker 3: In addition, the elevated customer fleet ages and low dealer inventory levels continue to provide encouraging signs for the demand environment.

In addition to elevated customer fleet ages, and low dealer inventory levels continue to provide encouraging signs for the demand environment.

Speaker 3: In our genie business, the industry replacement cycle and significant global investments in infrastructure, onshoring, and electrification creates a clear opportunity for future growth.

In our <unk> business, the industry replacement cycle and significant global investments and infrastructure.

Onshoring and electrification creates a clear opportunity for future growth.

Speaker 3: In our MT segment, in addition to these favorable trends, dealer inventory levels remain low in several business.

In our MP segment. In addition to these favorable trends dealer inventory levels remained low in several businesses.

Jon Garrison: Let's turn to slide six. We remain encouraged by the favorable trend in our key markets, especially in North America. The U.S, is investing in infrastructure with the three federal stimulus programs that will pass in 2021 and 2022. These investments provide a source of resilient demand visibility over the next several years. More than 35,000 projects representing an excess of 120 billion in funding have been announced or awarded. U.S, non-residential construction spending is up 16 percent year over year while manufacturing spending is up 63 percent in the last 12-month period driven by multi-billion dollar and multi-year investments related to semiconductor manufacturing, clean energy and ED battery projects.

Speaker 3: Overall, our customer feedback, bookings, significant backlog, and leading indicators give us confidence going into 2024.

Overall, our customer feedback bookings significant backlog and leading indicators give us confidence going into 2024.

Please turn to slide eight.

Speaker 3: The global demand for waste recycling solutions is increasing, driven by involving regulations and consumer preference.

The global demand for waste recycling solutions is increasing driven by evolving regulations and consumer preferences.

Speaker 3: The MP segment is well positioned to capitalize on these opportunities.

The MP segment is well positioned to capitalize on these opportunities.

Speaker 3: Our EvoQuip brand recently added a shredder capable of handling multiple applications, including construction and demolition waste.

Our Evo quip brand recently added a shredder capable of handling multiple applications, including construction and demolition waste.

Speaker 3: Our ecotech metal separator can efficiently extract valuable metals from a variety of waste sources. And our CBI business continues to find new market applications for equipment. Such as recycling of windmill blades.

Our ecotec metal separator can efficiently extract valuable metals from a variety of waste sources.

And our CPI business continues to find new market applications for our equipment.

Such as recycling of windmill blades. This.

Speaker 3: This eliminates the need for landfill disposal when blades are decommissioned and replaced.

Jon Garrison: In addition, the biggest growth areas in construction will be publicly financed or built by manufacturers who are ensuring to reduce geoprotical risk and these investments are less sensitive to interest rates. Our end-market diversification is a strength and we are excited about the opportunities to grow our business. Please turn to slide seven to review our backlog. Our G3 backlog of 3.3 billion remains significantly above historical levels and is the second highest in recent history, providing healthy momentum going into 2024.

This eliminates the need for landfill disposal, when blazer decommissioned and replaced.

Speaker 3: I am confident the MP business will continue to provide innovative solutions to support the increasing demand for recycling technologies.

I am confident the MP business will continue to provide innovative solutions to support the increasing demand for recycling technologies.

Please turn to slide nine.

Speaker 3: Our sustainability practices deliver stakeholder value.

Our sustainability practice deliver stakeholder value.

Speaker 3: During each Golden Reinvestor call, we feature one of the pillars of our ESG strategy. This quarter, we are highlighting environmental...

During each quarterly investor call with each one of the pillars of our ESG strategy.

This quarter, we are highlighting environmental stewardship.

Speaker 3: Our 2023 sustainability report, published earlier this week, highlights products and solutions that enable our customers to operate in sustainable ways.

Our 2023 sustainability report published earlier this week.

<unk> products and solutions that enable our customers to operate and sustainable ways.

Jon Garrison: Although backlog has declined sequentially from Q2 levels, this is a function of improved manufacturing production volumes and customer deliveries. Consolidated Q3 bookings remain solid at approximately $900 million and reflects the return to more normal ordering patterns for our dealers and customers. Importantly, we're seeing minimal customer and dealer pushouts in cancellations. The higher interest rates, inflation and geoprotical uncertainties have had an impact on Europe and we are seeing softening in that market but it's important to emphasize demand in North America is very strong.

Speaker 3: Approximately 70% of our MP and GE products are now offered with electric or hybrid options.

Approximately 70% of our empty and Genie products.

Now offer with electric or hybrid options.

Speaker 3: while 10 of our sites are operating using 100% renewable energy.

While 10 of our sites are operating using 100% renewable energy.

Speaker 3: We reached our 2024 greenhouse gas targets two years early and reduced our emissions intensity by 15% from our 2019 level.

We reached our 2020 for greenhouse gas targets two years early.

And reduced our emissions intensity by 15% from our 2019 levels.

Speaker 3: We are proud of our team members' accomplishments in helping build a more sustainable economy.

We are proud of our team members accomplishments and helping build a more sustainable economy.

Speaker 3: Turn to slide 10 for an update on our strategic operational priorities.

Turning to slide 10 for an update on our strategic operational priorities.

Speaker 3: We continue to make great progress on our Execute, Innovate, and Grow strategic initiatives.

We continue to make great progress on our execute innovate and grow strategic initiatives.

Jon Garrison: For more than two years, our backlog levels have increased as we've been constrained and our production ability to supply chain challenges. As we and the industry improve deliveries and lead times, our backlog will eventually return to normalize levels, which is a good thing for our customers. In addition, elevated customer fleet ages and low dealer inventory levels continue to provide encouraging signs for the demand and bond, and our Genie business, the industry replacement cycle, and significant global investments in infrastructure, ensuring, and electrification creates a clear opportunity for future growth.

Speaker 3: Our operations team executed well during the third quarter, maintaining their focus on improving deliveries for our customers.

Our operations teams executed well during the third quarter, maintaining their focus on improving deliveries for our customers and.

Speaker 3: and continuing with cost reduction and productivity improvement initiatives.

And continuing with cost reduction and productivity improvement initiatives.

Speaker 3: On a year-to-date basis, our sales are up 23% and operating margins are up 400 basis points.

On a year to date basis, our sales were up 23%.

And operating margins are up 400 basis points.

Speaker 3: demonstrating the strength of our operating model and the improvements we've made over the last several years.

Demonstrating the strength of our operating model and the improvements we've made over the last several years.

Speaker 3: Supply chain performance has improved throughout the year, but we continue to experience disruptions in the system.

Supply chain performance has improved throughout the year, but we continue to experience disruptions in the system.

Speaker 3: In the third quarter, our Monterey, Mexico team members were focused on increasing production

Jon Garrison: In our M.P, segment, in addition to these favorable trends, dealer-imitory levels remain low in several businesses. Overall, our customer feedback, bookings, significant backlog, and leading indicators give us confidence going in to 2024. Please turn to slide 8. The global demand for waste recycling solutions is increasing, driven by involving regulations and consumer preferences. The M.P, segment is well positioned to capitalize on these opportunities. Our evil quit brand recently added a shredder, capable of handling multiple applications, including construction and demolition waste.

In the third quarter, our Monterrey, Mexico team members were focused on increasing production.

Speaker 3: Start-up of our in-house paint systems and process improvements.

The startup of our in house paint systems and process improvements.

Speaker 3: I want to congratulate our GENIE Monterey team members for earning the prestigious LEED Gold Certification.

Want to congratulate our Genie Monterrey team members for earnings prestigious LEED Gold certification.

Speaker 3: demonstrating our commitment to sustainable practices in design, construction, and operation.

Demonstrating our commitment to sustainable practices and design construction and operations.

Speaker 3: Our investment, the new product and technologies, will enable us to take advantage of the sustainability trends, such as recycling, electrification, and decarbonization.

Our investments in new products and technologies will enable us to take advantage of the sustainability trends such as recycling.

Electrophysiologist and de Carbonization.

Speaker 3: We remain confident in our ability to execute our strategy to deliver long-term shareholder value. And with that, let me turn it over to Julie.

We remain confident in our ability to execute our strategy to deliver long term shareholder value and with that let me turn it over to Julie.

Jon Garrison: Our eco-tech metal separator can efficiently extract valuable metals from a variety of waste sources. And our CBI business continues to find new market applications for equipment, such as recycling of windmill blades. This eliminates the need for landfills disposal when blades are decommissioned and replaced. I am confident the M.P, business will continue to provide innovative solutions to support the increasing demand for recycling technologies. Please turn to slide 9. Our sustainability practice delivers stakeholder value.

Speaker 4: Thanks, John , and good morning, everyone. Let's take a look at our third quarter financial performance found on slide 11.

Thanks, John and good morning, everyone.

Let's take a look at our third quarter financial performance found on slide 11.

Speaker 4: Sales of $1.3 billion were up 15% over year on higher volume and improved price realization necessary to mitigate rising costs.

<unk> of $1 $3 billion were up 15% year over year on higher volume and improved price realization necessary to mitigate rising costs.

Speaker 4: Sales in constant currency were up 13% as foreign currency translation positively impacted sales by $25 million or approximately 2%. Growth margins increased by 150 basis points in the quarter as volume pricing, improved manufacturing efficiency, cost out initiatives, and strict expense discipline helped to offset cost inflation.

Sales in constant currency were up 13% as foreign currency translation positively impacted sales by $25 million or approximately 2%.

Gross margins increased by 150 basis points in the quarter as volume pricing improved manufacturing efficiencies and cost out initiatives and strict expense discipline helped to offset cost inflation.

Jon Garrison: During each quarterly investor call, we feature one of the pillars of our ESG strategy. This quarter, we are highlighting environmental stewardship. Our 2023 Sustainability Building Report published earlier this week highlights products and solutions that enable our customers to operate in sustainable ways. Approximately 70% of our M.P, and G.M, products are now offered with electric or hybrid options, while 10 of our sites are operating using 100% renewable energy. We reach our 2024 greenhouse gas targets two years early and reduce our emissions intensity by 15% from our 2019 levels.

Speaker 4: SG&A increased over the prior year due to inflation, incremental spend on new acquisitions, and increased marketing, engineering, and technology expenses. SG&A was 10% of sales, a decrease of 40 basis points from the prior year, with business investment offset by continued strict expense management throughout the company.

SG&A increased over the prior year due to inflation incremental spend on new acquisition and increased marketing engineering and technology expenses.

SG&A was 10% of sales a decrease of 40 basis points from the prior year with business investment offset by continued project expense management throughout the company <unk>.

Speaker 4: Compared to last year, income from operations of $163 million increased 35% operating margin of 12.7% was at 190 basis points. And our incremental margin was 25%.

Compared to last year income from operations of $163 million increased 35% operating margin of 12, 7% was up 190 basis points and our incremental margin was 25%.

Jon Garrison: We are proud of our team members' accomplishments in helping build a more sustainable economy. Turning the slide 10 for an update on our strategic operational priorities. We continue to make great progress on our execute, innovate, and grow strategic initiatives. Our operations teams executed well during their quarter, maintaining their focus on improving deliveries for our customers, and continuing with cost reduction and productivity improvement initiatives. On a year-to-date basis, our sales are up 23% and operating margins are up 400 basis points.

Speaker 4: Interest and other expense of $14 million increased $1 million from the prior year as higher interest rates were partially offset by favorable market to market adjustment.

Interest and other expense of $14 million increased $1 million from the prior year as higher interest rates were partially offset by favorable mark to market adjustments.

Speaker 4: the third quarter global effective tax rate was 20%.

Third quarter global effective tax rate was 20%.

Speaker 4: Third quarter earnings per share of $1.75 increased 46%, representing a $0.55 improvement over last year. This strong performance was driven by increased volume, discipline pricing, and continued cost management.

Third quarter earnings per share of $1 75 increased 46%, representing a 55% improvement over last year. This strong performance was driven by increased volume disciplined pricing and continued cost management.

Speaker 4: Free cash for the quarter was $106 million, representing a $53 million improvement over the prior year, primarily driven by increased operating profit.

Jon Garrison: Demonstrating the strength of our operating model and the improvements we've made over the last several years. Supply chain performance has improved throughout the year, but we continue to experience disruptions in the system. In the third quarter, a Monterey Mexico team members were focused on increasing production. Start-up of our in-house paint systems and process improvements. I want to congratulate our Genie Monterey team members for earning the prestigious lead-goal certification, demonstrating our commitment to sustainable practices in design, construction, and operations.

Free cash flow for the quarter was $106 million, representing a $53 million improvement over the prior year, primarily driven by increased operating profit.

Speaker 4: Hospital inventory at the end of the third quarter was $20 million, a decrease of $3 million from the second quarter and a 68% improvement from the prior year. Three cash full conversion was 89% in quarter.

Hospital inventory at the end of the third quarter was $20 million, a decrease of $3 million from the second quarter and a 68% improvement from the prior year free cash flow conversion was 89% in the quarter.

Speaker 4: On a year-to-date basis, our sales are up 23% over the prior year. Operating margins have expanded 400 basis points at an incremental margin of 30%. Earnings per share are up 90%, and free cash flows are increased by over $200 million.

On a year to date basis, our sales were up 23% over the prior year operating margins have expanded 400 basis points and an incremental margin of 30% earnings per share are up 90% and free cash flow has increased by over $200 million.

Jon Garrison: Our investment the new product and technologies will enable us to take advantage of the sustainability trends such as recycling, electrification, and decarbonization. We remain confident in our ability to execute our strategy to deliver long-term shareholder value.

Speaker 4: Let's take a look at our segment results, starting with our materials processing segment down on slide 12.

Let's take a look at our segment results starting with our materials processing segment found on slide 12.

Speaker 4: MP had another excellent quarter was consistently strong operational execution.

<unk> had another excellent quarter with consistently strong operational execution sale.

Speaker 4: Sales of $541 million increased 18% compared to the third quarter of 2022 during by strong demand for our aggregate, environmental and concrete products.

Julie Beck: And with that, let me turn it over to Julie. Thanks, John, and good morning, everyone. Let's take a look at our third quarter financial performance found on slide 11. Sales of $1.3 billion were up 15% year-over-year on higher volume and improved price realization necessary to mitigate rising costs. Sales in constant currency were up 13% as foreign currency translation positively impacted sales by $25 million or approximately 2%. Growth margins increased by 150 basis points in the quarter as volume pricing, improved manufacturing efficiency, cost-out initiatives, and strict expense disciplines helped to offset cost inflation.

Sales of $541 million.

Increased 18% compared to the third quarter of 2022, driven by strong demand for aggregates environmental and concrete products.

Speaker 4: On a foreign exchange neutral basis, sales were up 16%.

Aaron exchange neutral basis sales were up 16%.

Speaker 4: MP operating profit increased 37% over the prior year driven by higher sales volume, favorable product and geographic mix, improved manufacturing efficiencies, and discipline cost management with strong operating margins of 16.9% of 230 basis points. MP's incremental margin was 29%.

<unk> operating profit increased 37% over the prior year driven by higher sales volume.

Both product and geographic mix.

Improved manufacturing efficiencies and disciplined cost management with strong operating margins of 16, 9% up 230 basis points Mp's incremental margin was 29%.

Speaker 4: MP ended the quarter with backlog of approximately $900 million. The backlog remained for a buck and is approximately two times historical norms. Bookings were slightly higher than historical averages for the third quarter.

<unk> ended the quarter with backlog of approximately $900 million the backlog remains robust and is approximately two times historical norms.

Julie Beck: SGNA increased over the prior year due to inflation, incremental spend on new acquisitions, and increased marketing, engineering, and technology expenses. SGNA with 10% of sales, a decrease of 40 basis points from the prior year with business investment offset by continued strict expense management throughout the company. Compared to last year, income from operations of $163 million increased 35%. Operating margin of 12.7% was at 190 basis points, and our incremental margin was 25%.

Bookings were slightly higher than historical averages for the third quarter.

Speaker 4: On slide 13, see our Aerial Work Platforms segment financial results.

On slide 13, Seer aerial work platforms segment financial results.

Speaker 4: AWP had a solid quarter with sales of $751 million, up 13% compared to the prior year on higher demand, improved supply chain, and disciplined pricing actions to offset cost pressures. On a foreign exchange neutral basis, sales were up 11%.

AWP had a solid quarter with sales of $751 million up 13% compared to the prior year and higher demand improved supply chain and disciplined pricing actions to offset cost pressures.

Foreign exchange neutral basis sales were up 11%.

Speaker 4: AWP operating profit increased 47% over the prior year, and the team delivered operating margins of 12.5% in the quarter, up 290 basis points from last year with an incremental margin of 34%.

AWP operating profit increased 47% over the prior year and the team delivered operating margins of 12, 5% in the quarter up 290 basis points from last year with an incremental margin of 34%.

Julie Beck: Interest and other expense of $14 million increased $1 million from the prior year as higher interest rates were partially offset by favorable mark-to-market adjustment. The third quarter global effective tax rate was 20%. Third quarter earnings per share of $1.75 increased 46%, representing a 55-cent improvement over last year. This strong performance was driven by increased volume, discipline pricing, and continued cost management. Precash full for the quarter was $106 million, representing a $53 million improvement over the prior year, primarily driven by increased operating profit.

Speaker 4: The improvement was the result of higher sales volumes, favorable geographic mix, and cost reduction initiatives offsetting increasing costs and moderate start-up in efficiencies.

The improvement was the result of higher sales volumes favorable geographic mix and cost reduction initiatives offsetting increasing costs and moderate startup inefficiencies.

Speaker 4: GE had a strong quarter, but our utilities business was negatively impacted by manufacturing inefficiencies due to supply chain issues and related unfavorable product mix.

Clearly had a strong quarter, but our utilities business was negatively impacted by manufacturing inefficiencies due to supply chain issues and related unfavorable product mix.

Speaker 4: Bookings of $536 million were up 4% sequentially and at levels typical of historical Q3 bookings with a solid backlog of $2.5 billion, which is three times the historical norm. Negotiations with the national accounts continue, and we expect to return to seasonally higher bookings in Q4.

Bookings of $536 million were up 4% sequentially and at levels typical of historical Q3 bookings with a solid backlog of $2 $5 billion, which is three times the historical norm.

Julie Beck: Hospital inventory at the end of the third quarter was $20 million, a decrease of $3 million from the second quarter, and a 68% improvement from the prior year. Precash full conversion was 89% in quarter. On a year-to-date basis, our sales were up 23% over the prior year. Operating margins have expanded 400 basis points at an incremental margin of 30%. Earnings per share are up 90%, and free cash flow is increased by over $200 million.

Gaucher patients with our National accounts continue and we expect to return to seasonally higher bookings in Q4.

Speaker 4: Please be slide 14 for an overview of our discipline capital allocation strategy. Our strong balance sheet provides us with financial flexibility to invest in our future growth.

Please see slide 14 for an overview of our disciplined capital allocation strategy.

Our strong balance sheet provides us with financial flexibility to invest in our future growth.

Speaker 4: Year-to-date free cash flow has increased $205 million over the prior year. We continue to invest in our business with Q3 capital expenditures of $34 million primarily related to our Monterey facility.

Year to date free cash flow has increased $205 million over the prior year, we continue to invest in our business with Q3 capital expenditures of $34 million.

Julie Beck: Let's take a look at our segment results, starting with our Materials Processing Segment found on slide 12. MP had another excellent quarter with consistently strong operational execution. Sales of $541 million increased 18% compared to the third quarter of 2022 during by strong demand for our aggregate, environmental, and concrete products. On a foreign exchange neutral basis, sales were up 16%. MP operating profit increased 37% over the prior year driven by higher sales volume, favorable product and geographic mix, improved manufacturing efficiencies, and discipline cost management with strong operating margins of 16.9% of 230 basis points. MP's incremental margin was 29%. MP ended the quarter with backlog of approximately $900 million. The backlog remains robust and is approximately two times historical norms, bookings were slightly higher than historical averages for the quarter.

Primarily related to our Monterey facility.

Speaker 4: We increased our dividend 31% since the beginning of the year, which reflects our continued confidence in the company's strong financial position and future prospects.

We increased our dividend, 31% since the beginning of the year, which reflects our continued confidence in the company's strong financial position and future prospects.

Speaker 4: Year-to-date, we have returned $66 million to our shareholders and are currently perching shares as we believe our shares are an attractive investment.

To date, we have returned $66 million to our shareholders and are currently purchasing shares as we believe our shares are an attractive investment.

Speaker 4: We have no debt materities until 2026, and 85% of our debt is at a fixed rate of 5% until the end of the decade. In addition, we have paid down $118 million of debt over the last 12 months.

We have no debt maturities until 2026, and 85% of our debt is at a fixed rate of 5% until the end of the decade.

In addition, we have paid down $118 million of debt over the last 12 months.

Speaker 4: Our net leverage remains low at 0.5 times, which is well below our two and a half times target through the cycle. We have ample liquidity of $846 million, and we reported a return on invested capital over 29 percent, well above our cost of capital. The company is in an excellent position to execute our plan and grow the business.

Our net leverage remains low at five times, which is well below our two five times target through the cycle.

We have ample liquidity of $846 million and we reported a return on invested capital over 29% well above our cost of capital.

Julie Beck: On slide 13, we are aerial work platforms segment financial results. AWP had a solid quarter with sales of $751 million, up 13% compared to the prior year on higher demand, improved supply chain, and discipline pricing actions to offset cost pressures. On a foreign exchange neutral basis, sales were up 11%. AWP operating profit increased 47% over the prior year, and the team delivered operating margins of 12.5% in the quarter, up 290 basis points from last year was an incremental margin of 34%.

Company is in an excellent position to execute our plan and grow the business.

Speaker 4: Now turning to slide 15 and our updated folder outlook.

Now turning to slide 15, and our updated full year outlook is.

Speaker 4: It is important to realize we are operating in a challenging macro environment with many variables in geopolitical uncertainties. So results could change negatively or positively.

It is important to realize we are operating in a challenging macro environment with many variables and geopolitical uncertainties results could change negatively or positively.

Speaker 4: With that said, this updated outlook represents our best estimate as of today.

With that said this updated outlook represents our best estimate as of today.

Speaker 4: Thanks to the strong performance of our team members and robust backlog, we are raising our 2020 outlook to approximately $7.05 per share and over 60% improvement from 2022.

Thanks to the strong performance of our team members and robust backlog, we are raising our 2020 outlook to approximately $7 <unk> per share and over 60% improvement from 2022.

Speaker 4: Our increased sales outlook of approximately $5.15 billion represents a 17% increase from the prior year and incorporates the latest dialogue with our customers and our suppliers.

Julie Beck: The improvement was the result of higher sales volumes, favorable geographic mix, and cost reduction initiatives offset increasing costs and moderate start-up in efficiencies. DNA had a strong quarter, but our utilities business was negatively impacted by manufacturing in efficiencies due to supply chain issues and related unsavorable product mix. Bookings of $536 million were up 4% sequentially and at levels typical of historical Q3 bookings with a solid backlog of $2.5 billion, which is three times the historical norm. Negotiations with the national accounts continue, and we expect to return to seasonally higher bookings in Q4.

Our increased sales outlook of approximately $5. One 5 billion represents a 17% increase from the prior year and incorporates the latest dialogue with our customers and our suppliers are.

Speaker 4: Our sales of the fourth quarter of the year are expected to be sequentially lower due to normal production seasonality and supply chain challenges, but consistent with prior year.

Our sales in the fourth quarter of the year are expected to be sequentially lower due to normal production seasonality and supply chain challenges, but consistent with prior year, we are maintaining our operating margin outlook of approximately 13% or 350 basis point improvement from the last year.

Speaker 4: We are maintaining our operating margin outlook of approximately 13 percent, a 350 basis point improvement from the last year.

Yeah.

Speaker 4: We reaffirm our free cash flow outlook of $375 million for the full year of approximately $225 million higher than the prior year.

We reaffirm our free cash flow outlook of $375 million for the full year.

<unk> $225 million higher than the prior year.

Speaker 4: Let's take a look at our updated segment outlook. Faced upon MPs continued strong execution, we are increasing our sales outlook to over $2.2 billion at an operating margin of approximately 16.1%. We expect MPs force quarter sales to be up slightly in Q3 and margins to be sequentially lower due to a less favorable geographic and product mix.

Let's take a look at our updated segment outlook.

Based upon Mpc's continued strong execution, we are increasing our sales outlook to over $2 2 billion at an operating margin of approximately 16, 1%, we expect mpc's fourth quarter sales to be up slightly in Q3 and margins to be sequentially lower.

Julie Beck: Please read slide 14 for an overview of our discipline capital allocation strategy. Our strong balance sheet provides us with financial flexibility to invest in our future growth. Year-to-date free cash flow has increased $205 million over the prior year. We continue to invest in our business with Q3 capital expenditures of $34 million primarily related to our Monterey facility. We increased our dividend 31% since the beginning of the year, which reflects our continued confidence in the company's strong financial position and future prospects.

Due to a less favorable geographic and product mix.

Speaker 4: This outlook represents a 15% increase in sales and an 80 basis point improvement in operating margins from the prior year.

Our outlook represents a 15% increase in sales and an 80 basis point improvement in operating margin from the prior year.

Speaker 4: The Genie team has executed well. And as a result, we are increasing our AWP sales outlook to over $2.9 billion. We expect a sequential decline in AWP's fourth quarter sales due to fewer production days. We are updating our full year operating margin outlook to approximately 13.3% due to material supply chain issues impacting our utilities business.

The Genie team as executed well and as a result, we are increasing our AWP sales outlook to over $2 9 billion.

Julie Beck: Year to date, we have returned $66 million to our shareholders and are currently purchasing shares as we believe our shares are an attractive investment. We have no debt materities until 2026 and 85% of our debt is at a fixed rate of 5% until the end of the decade. In addition, we have paid down $118 million of debt over the last 12 months. Our net leverage remains low at 0.5 times, which is well below our 2.5 times target to the cycle.

We expect a sequential decline in Awp's fourth quarter sales due to fewer production days, we are updating our full year operating margin outlook to approximately 13, 3% due to material supply chain issues impacting our utilities business.

Speaker 4: AWT's outlook reflects a 540 basis point improvement from a prior year and an incremental margin over 40%.

Awp's outlook reflects a 540 basis point improvement from our prior year and an incremental margin over 40%.

Speaker 4: On behalf of my fellow Terriks team members, I want to thank John for significant contributions, leadership, and dedicated years of service to Terriks, and we chained his family a happy retirement.

On behalf of my fellow tariffs team members I want to thank John for his significant contribution leadership and dedicated years of service to Terex and wish he and his family a happy retirement.

Julie Beck: We have ample liquidity of $846 million and we reported a return on invested capital over 29% well above our cost of capital. The company is in an excellent position to execute our plan and grow the business.

Speaker 3: John has been instrumental in transforming our company into the tariffs of today, which comprises a very strong portfolio of market leading businesses worldwide. Under his leadership, tariffs have experienced remarkable success and remains a well-positioned for continued growth. And with that said, I will turn it back to you, John . Thank you, John . Turning 516 to conclude my prepared remarks.

John has been instrumental in transforming our company into the tariffs are today, which comprises a very strong portfolio of market leading businesses worldwide Andrew.

Julie Beck: Now turning to slide 15 and our updated folder outlook. It is important to realize we are operating in a challenging macro environment with many variables in geopolitical uncertainties so results could change negatively or positively. With that said, this updated outlook represents our best estimate as of today. Thanks to the strong performance of our team members and robust backlog, we are raising our 2020 outlook to approximately $7.5 per share and over 60% improvement from 2022.

Under his leadership Terex has experienced remarkable success and remains well positioned for continued growth and with that said I will turn it back to you John Thank.

Turning to slide 16 to conclude my prepared remarks.

Speaker 3: Charis is well positioned for growth to deliver long-term value for our stakeholders because we have a strong portfolio of diverse market leading businesses that operate in attractive growth markets and are well positioned for long-term profitable growth.

<unk> is well positioned for growth to deliver long term value for our stakeholders because.

We have a strong portfolio of diverse market, leading businesses that operate in attractive growth markets and are well positioned for long term profitable growth.

Speaker 3: This growth is going to be bolstered by attractive global megatrends.

This growth is going to be bolstered by attractive global Mega trends.

Julie Beck: Our increased sales outlook of approximately $5.15 billion represents a 17% increase from the prior year and incorporates the latest dialogue with our customers and our suppliers. Our sales of the fourth quarter of the year are expected to be sequentially lower due to normal production seasonality and supply chain challenges but consistent with prior year. We are maintaining our operating margin outlook of approximately 13% of 350 basis point improvement from the last year. We reaffirm our free cash flow outlook of $375 million for the full year of approximately $225 million higher than the prior year.

Speaker 3: We deployed our operating systems across the businesses, improving our execution, allowing us to generate consistent profitability and superior return on our invested capital.

We deployed our operating systems across the businesses, improving our execution, allowing us to generate consistent profitability and superior return on our invested capital.

Speaker 3: We have a strong balance sheet in cash flow to support our growth.

We have a strong balance sheet and cash flow to support our growth plan.

Speaker 3: And we have a global, experienced, and resilient leadership team that has clearly demonstrated the ability to create value.

And we have a global experienced and resilient leadership team that has clearly demonstrated the ability to create value.

Speaker 3: It has been an honor to help the company position for sustainable, profitable growth.

It has been an honor to help the company positioned for sustainable profitable growth.

Speaker 3: and to make progress towards becoming a workplace where all team members feel included with a voice in the enterprise. Leading Tarrack has been the

And to make progress towards becoming a workplace, where all team members feel included with a voice in the enterprise.

<unk> has been the highlight of my career.

Julie Beck: Let's take a look at our updated segment outlook. Based upon MP's continued strong execution, we are increasing our sales outlook to over $2.2 billion at an operating margin of approximately 16.1%. We expect MP's fourth quarter sales to be up slightly in Q3 and margins to be sequentially lower due to a less favorable geographic and product mix. This outlook represents a 15% increase in sales and an 80 basis point improvement and operating margin from the prior year.

Speaker 3: Without a doubt, our success and achievements have been driven by our dedicated, engaged team members who live our Terrace Way values and zero harm safety culture each and every day.

Without a doubt our success and achievements have been driven by our dedicated engaged team members, who live our terex way values and zero harm safety culture, each and every day.

Speaker 3: Terraces in a strong position and now ends the right time to begin the transition to the next leader

Tariffs has been a strong position and now is the right time to begin the transition to the next leader.

Speaker 3: I've had the privilege of working closely with Simon for a number of years.

I've had the privilege of working closely with Simon for a number of years.

Speaker 3: He has proven to be a global strategic thinker with a natural ability to lead teams and drive results.

He has proven to be a global strategic thinker with a natural ability to lead teams and drive results.

I have great confidence.

Julie Beck: The Genie team has executed well and as a result, we are increasing our AWP sales outlook to over $2.9 billion. We expect a sequential decline in AWP's fourth quarter sales due to fewer production days. We are updating our full year operating margin outlook to approximately 13.3% due to material supply chain issues impacting our utilities. David U.T. 's outlook reflects a 540 basis point improvement from a prior year and an incremental margin over 40%.

Speaker 3: that he is the right leader for Terex as the company focuses on delivering long-term value for our stakeholders. And with that, let me turn it back to Paritosh.

That is the right leader for Terex as the company focuses on delivering long term value for our stakeholders and with that let me turn it back to <unk>.

Speaker 2: Thanks, John . As a reminder, during the question and answer session, we asked you to limit your questions to one and a follow up to ensure we answer as many questions as possible this morning. But that I would like to open it up for questions operator.

Thanks, John as a reminder, during the question and answer session. We ask you to limit your questions to one and a follow up to ensure we answer as many questions as possible. This morning with that I would like to open it up for questions operator.

Speaker 1: Thank you. If you'd like to ask a question, please press start or follow by the number one on your telephone keypad. So, if you'd draw your question, please press start one again.

Thank you if you'd like to ask a question. Please press star followed by the number one on your telephone keypad to withdraw your question. Please press star one again.

Speaker 1: Our first question comes from Stanley Elliott from Stiefel. Please go ahead, your line is open. Hey, good morning everyone.

Our first question comes from Stanley Elliott from Stifel. Please go ahead. Your line is open.

Julie Beck: On behalf of my fellow Terrick's team members, I want to thank Jon for a significant contribution, leadership, and dedicated years of service to Terrick, and wish he and his family a happy retirement. Jon has been instrumental in transforming our company into the Terricks of today, which comprises a very strong portfolio of market leading businesses worldwide. Under his leadership, Terrick's experience remarkable success and remains a well-positioned for continued growth.

Hey, good morning, everyone.

Speaker 5: John , for starters, thank you so much, and congratulations on the transformation. That's been impressive to watch.

John for starters, thanks, so much and congratulations on the transformation, it's been impressive to watch.

Thanks, Dan up.

First question here on the backlog still incredibly healthy.

Can you talk about the visibility that you have.

Assuming you guys are close to fully booked for 'twenty four.

What sort of visibility would does that give you into 'twenty five.

Then maybe any commentary on pricing or mix in those numbers.

Speaker 3: Yeah, thanks, Dan. If we look at overall backlog of 3.3 billion, it's three times our historical norms. And total bookings of about 900 million in the quarter were solid, and actually slightly higher than our historical averages that would experience.

Jon Garrison: And with that said, I will turn it back to you, Jon. Thanks, Julie.

Yeah. Thanks, Dan if we look our overall backlog of $3 3 billion.

Jon Garrison: Turn inside 16 to conclude my prepared remarks. Terrick is well-positioned for growth to deliver long-term value for our stakeholders because we have a strong portfolio of diverse market leading businesses that operate in attractive growth markets and are well-positioned for long-term profitable growth. This growth is going to be bolstered by attractive global mega trends. We deployed our operating systems across the businesses, improving our execution, allowing us to generate consistent profitability and superior return on our invested capital.

It's three times, our historical norms and total bookings of about $900 million.

In the in the quarter were solid and actually slightly higher than our historical averages that we've experienced are.

Speaker 3: Our book to Bill, I think it's been consistent with improving supply chain and customer deliveries. And really, the thing will be beginning to return for a more normal seasonal pattern, both for our customers and for our deliveries.

Book to Bill I think has been consistent with improving supply chain and customer deliveries and really the theme will be beginning to return to a more normal seasonal pattern, both for our customers and for our deliveries as we mentioned we continue to see minimal order cancellations and push outs with lightning expresses the strengths that we have.

Speaker 3: As we mentioned, we continue to see minimal order cancelations and pushouts with, I think, expresses the strength that we have in that backlog. And the coverage is right. We've got more than, you know, approximately two billion.

And that backlog and the coverage is right we've got more than approximately $2 billion booked for 2024, and we believe that does drive momentum into 2024 across the enterprise and if I look at the respective segments. If you look at MTBE, they've got a backlog of about 900.

Jon Garrison: We have a strong balance sheet and cash flow to support our growth plan. And we have a global experience and resilient leadership team that has clearly demonstrated the ability to create value. It has been an honor to help the company position for sustainable, profitable growth and to make progress towards becoming a workplace where all team members feel included with a voice in the enterprise.

Speaker 3: booked for 2024 and we believe that does drive momentum into 2024 across the enterprise.

Speaker 3: And if I look at the respective segments, if you look at MP, they've got to back out of about 900 million and that remains high. It's twice our historical norms, historically.

And that remains high it's twice our historical norm historically.

Speaker 3: Our MP business is much more of a book to build and usually only has about one quarter of visibility. We have substantially more than that as we go forward. And again, their bookings were slightly higher than our historical averages. So looking into 2024, the order book varies by business. For example, our aggregate order book.

Our MP business is much more of a book to Bill unusually only has about one quarter of visibility we have substantially more than that.

Jon Garrison: Leading Terrick has been the highlight of my career. Without a doubt, our success and achievements have been driven by our dedicated engaged team members who live our Terrick's way values in zero-harm safety culture each and every day.

We go forward and again their bookings were.

Slightly higher than our historical averages so.

Looking into 2020 for the order book varies by business for example, our aggregate order book.

Speaker 3: you know, for Q2 2024 really didn't open in Q3, it opened here in Q4.

Q2, 2024 really didn't open in Q3 it opened here in Q4.

Jon Garrison: Terrick is in a strong position and now he is the right time to begin the transition to the next leader. I have had the privilege of working closely with Simon for a number of years. He has proven to be a global strategic thinker with a natural ability to lead teams and drive results. I have great confidence that he is the right leader for Terrick's as the company focuses on delivering long-term value for our stakeholders.

Speaker 3: And so, you know, that, that, you know, again, as things return to more normal seasonality, we'll see that flow going forward.

And so that again as things return to more normal seasonality, we will see.

Paretosh Misra: And with that, let me sort of ask Peritas. Thanks, John.

That flow going forward.

Speaker 3: You know, we think dealer inventories, especially in certain brands, are relatively low and need to be replenished as well as

We think dealer inventories, especially in certain brands are relatively low and need to be replenished as well as some of the rental fleet. So we think that provides some some some tailwind for us as we go forward as well and then our opening comments and just the investments, especially in North America on infrastructure spending and onshoring.

Speaker 3: some of their rental fleet. So we think that provides some tailwind forces we go forward as well. And then our opening comments and just the investments especially in North America on infrastructure spending and ensuring it's going to help that business, not just in 24, but as we go forward. And then if you look at our AWP segment, we've got about two and a half billion book there, which is three times.

It's going to help that business.

Unknown Executive: As a reminder, during the question and answer session, we ask you to limit your questions to one and I'll follow up to ensure we answer as many questions as possible this morning. But that, I would like to open it up for questions.

Not just in 'twenty four but as we as we go forward and then if you look at our AWP segment. We've got about $2 5 billion book, There, which is three times our historical levels again book to Bill there is consistent with improving supply chains in the beginning of a return to seasonality book.

Speaker 3: are historical levels. And again, book to bill there, consistent with improving supply chains in the beginning of return to seasonality. Bookings again are slightly above.

Unknown Executive: Operator? Thank you. If you would like to ask a question, please press start or follow by the number one on your telephone keypad. To withdraw your question, please press start one again.

Bookings again or slightly above our historical averages.

Speaker 3: our historical averages. And we're right in the middle. Q3 is usually a low period, if you will, for the Genie business. And as we get into Q4, we're right in the middle of our negotiations and conversations with the national council. That's ongoing and we'd expect that to conclude here in Q4.

Stanley Elliott: Our first question comes from Stanley Elliott from Stiefel. Please go ahead to line as open. Good morning, everyone. John, for starters, thank you so much. Congratulations on the transformation. That has been impressive to watch. Thanks, Stan. First question here on the backlog, still incredibly healthy. Can you will talk about the visibility that you have? I'm assuming you guys are close to fully booked for 24. Maybe what sort of visibility does that give you into 25 and then maybe any commentary on pricing or mix in those numbers?

We're right in the Middle of Q3 is usually a low period. If you will for the Genie business and as we get into Q4, we're right in the middle of our negotiations and conversations with the national accounts. So that's ongoing and we would expect that precludes US include here in Q4.

Speaker 3: And again, demand remains quite strong. If you listen to the rental companies, they're seeing really good utilization. They're fleet to beige. They need to be repressed.

Dan.

Demand remains quite strong if you listen to the rental companies, they're seeing really good utilization their fleets of age they need to be refreshed the significant mega trends infrastructure projects. So again North America quite strong and then they are the replacement cycle has been has been delayed if you will and so the replacement of the fleet.

Speaker 3: you know the significant mega trends infrastructure projects so again North America quite strong and then there the replacement cycles been it's been you know delayed if you will and so the replacement of the fleet has to continue given the age of the fleet so we think that provides you know a significant you know tailwind for it as we go forward so overall if we look at our bookings and in our backlog and customer feedback is strong our bookings are strong

Stanley Elliott: Yeah, thanks, Stan. If we look at overall backlog of 3.3 billion, you know, it's three times our history. We have a lot of historical norms and total bookings of about 900 million in the quarter were solid and actually slightly higher than our historical averages that would experience our book to bill. I think it's been consistent with improving supply chain and customer deliveries and really the thing will be beginning to return for a more normal seasonal pattern, you know, both for our customers and for our deliveries.

<unk> has to continue given the age of the fleet. So we think that provides.

A significant tailwind for us as we go forward. So overall, if we look at our bookings and our backlog and customer feedback is strong our bookings are strong the backlog is significantly higher and leading indicators. So that gives us confidence and some momentum as we go into 2024.

Speaker 3: You know, the backlog is significantly higher and leading indicators. So that gives us, you know, confidence and some momentum as we go into 2024.

Speaker 5: And kind of sticking on the MP business, when would you guess dealer inventories might actually normalize given the infrastructure spending on the horizon? And then also, any commentary on some of the newer products and on the recycling products that you guys have been working on or tracking with customers?

Perfect and then kind of sticking on the MP business.

When would you guess dealer inventories might actually normalized given the infrastructure spending on the horizon.

Stanley Elliott: As we mentioned, we continue to see minimal order cancellations and pushouts with, I think, expresses the strength that we have in that backlog and the coverage is right. We've got more than, you know, approximately 2 billion booked for 2024 and we believe that does drive momentum into 2024 across the, you know, the enterprise. And if I look at the respective segments, if you look at MP, they've got a backlog of about 900 million and that remains high.

And then also any commentary on some of the newer products and on the recycling products that you guys have been working on our traction with customers.

Speaker 3: Yeah, so in terms of normalizing inventory, it will vary by business. And I think our aggregate businesses would say kind of, you know, as things continue on this pace in the middle of next year, probably, our foods business, we can talk about that. They do have higher levels of inventory that's been impacted by scrap metal prices. So it does vary by business, but over the course of time, we would expect those to normalize as we move through 2024 stand.

Yes, so in terms of normalizing inventory it will it will vary by by business and I think our aggregates businesses would say kind of as things continue on this pace middle of next year, probably our Fuchs business. We can talk about that they do have higher level of inventory that had been impacted by scrap metal prices. So it does vary by business.

Stanley Elliott: It's twice our historical norms. Historically, you know, our MP business is much more of a book to bill and usually only has about one quarter of visibility. We have substantially more than that as we go forward. And again, their bookings were slightly higher than our historical averages. So, you know, looking into 2024, the order book varies by business. For example, our aggregate order book, you know, for Q2 2024, really didn't open in Q3.

Over the course of time, we would expect those to normalize as we move through <unk>.

24 <unk>.

Speaker 5: Perfect. Thanks so much and best wishes to you, John . Thanks, Sam.

Perfect. Thanks, so much and best wishes to Jon Thanks.

Thanks, Dan.

Speaker 1: Our next question comes from Steve Volkman from Jeffries. Please go ahead. Your line is open.

Okay.

Our next question comes from Steve Volkmann from Jefferies. Please go ahead. Your line is open.

Speaker 6: Great. Good morning. Thank you. And congrats, John . My question is about margins in a WP. And it sounds like there were a couple of kind of temporary headwinds in the quarter. I think we mentioned Monterey startup utility business kind of below normal. Is there any way to kind of ballpark the impact of that on the AWP margin and third quarter?

Great. Good morning, Thank you and congrats John.

My question is about margins in AWP and it sounds like there were a couple of kind of temporary headwinds in the quarter I think we mentioned Monterrey startup utility business kind of below normal.

Stanley Elliott: It opened here in Q4. And so, you know, that, that, you know, again, as things return to more normal seasonality, we'll see that flow going forward. You know, we think fewer inventories, especially in certain brands are relatively low and need to be replenished as well as some of their rental fleets. So we think that provides them some tailwind force as we go forward as well. And then opening comments and, you know, just the investments, especially in North America on infrastructure spending and ensuring, you know, it's going to help that business, not just in 24, but as we, as we go forward.

Is there any way to kind of ballpark.

Impact of that on the AWP margin in the third quarter.

Speaker 4: So thanks for the question Steve. You know, AWP had operating margins of 12.5% in the third quarter and it was up to 290 base points from last year. The improvement was really strong execution by the G&E team. You know, we had higher sales volumes. There's, you know, the supply chain is improving and discipline pricing and that offset some of the cost increases.

Sure.

Thanks for the question Steve.

AWP had operating margins of 12, 5% in the third quarter and it was up 290 basis points from last year and the improvement really strong execution.

The Genie team, we had higher sales volume.

Stanley Elliott: And then if you look at our AWP segment, you know, we've got about two and a half billion book there, which is three times our historical levels. And again, book to bill there is consistent with improving supply chains in the beginning of return to seasonality. And bookings again are slightly above our historical averages. And, you know, we're right in the middle Q3 is usually a low period, if you will, for, you know, for the genie business.

The supply chain is improving and disciplined pricing and that offset some of the cost increases.

Speaker 7: During execution and successful cost-out management, we continue to see that the hard work by the Genie team showing up in our financials and cost-out initiatives as well.

Strong execution and successful cost out management, we continued to see the hard work by the Genie team showing up in our financials and cost out initiatives as well, but these positives were partially offset by the expected inefficiencies due to moderate ramp up so that was it.

Speaker 7: But these positives were partially offset by the expected inefficient fees due to the monetary ramp up. So that was included in our outlook and we talked about that on previous calls. But additionally, this quarter, we were disappointed in supplier performance to the utilities business, which caused unsamble manufacturing and efficient fees and related unsamble product mix.

Stanley Elliott: And as we get into Q4, we're right in the middle of our negotiations and conversations with the national counts. So that's ongoing and we expect that to conclude, conclude here in Q4. And again, demand remains quite strong. If you listen to the, you know, the rental companies, they're seeing, you know, really good utilization. They're fleets of age. They need to be refreshed. You know, the significant mega trends infrastructure projects. So again, North America, quite strong.

Included in our outlook and we've talked about that on previous calls, but additionally, this quarter, we were disappointed and supplier performance in the annuity business, which caused unfavorable manufacturing inefficiencies and related unfavorable product mix, we were able to get sales out.

Speaker 7: We were able to get sales out, but less favorable margin sales in the quarter in the utilities business. And that had an unfavorable impact and probably about 12 cents a share in the quarter.

Favorable margin sales in the quarter and the utilities business and that had an unfavorable impact and probably about 12 cents a share in the quarter.

Stanley Elliott: And then there, the replacement cycles has been, you know, delayed, if you will. And so the replacement of the fleet has to continue given the age of the fleet. So we think that provides, you know, a significant, you know, tailwind for it as we go forward. So overall, if we look at our bookings and in our backlog and customer feedback is strong, our bookings are strong. You know, the backlog is significantly higher and leading indicators. So that gives us, you know, confidence in some momentum as we go into 2024.

Speaker 7: And so overall our Q3 incremental margin, you know, was 34% and AWP increase their profit by almost 50%. And margins improved to 90 points because of geney strong execution in the quarter.

And so overall, our Q3 incremental margin was 34% and AWP increased our profit by almost 50% and margins improved by 290, <unk> because of Genie strong execution in the quarter.

Speaker 7: Great, so the 12 cents would just be the utility business. Right, and that would be offset. And we had favorable performance in the quarter by the MP business, of course, with us by about 10 cents and the genie business is up about 7 cents as well from compared to the outlook.

Great. So the 12 cents would just be the utility business.

And that would be asset we had favorable performance in the quarter by the MP business of course was up by about 10.

And the Genie business was up about 7% as well.

Stanley Elliott: Perfect, kind of sticking on the MP business. When would you guess like dealer inventories might actually normalize given the infrastructure spending on the horizon? And then also any commentary on some of the newer products and on the recycling products that you guys have been working on or tracking with customers? Yeah, so in terms of normalizing inventory, it will vary by business. And I think our aggregate businesses would say kind of, you know, things continue on this pace in the middle of next year probably.

Compared to that outlook.

Speaker 6: Okay, that's helpful. And then just to sort of follow on there, I guess, is it feels like utility has been a bit of a focus, shall we say, for a few quarters now? What's the outlook for kind of getting that where it needs to be?

Okay. That's helpful. And then just a follow on there I guess is it feels like utility has been a bit of.

Hey.

So shall we say for a few quarters now what's the outlook for kind of getting that where it needs to be.

Speaker 3: Yeah, thanks. So, you know, the team, it would be straight forward, disappointed in our performance in the quarter, you know, supplier related. The team on the good news side, the supply chain is improvement on the specific issues that we had in the third quarter, created significant inefficiencies for us.

Yeah. Thanks, so the team.

Be straightforward, we're disappointed in our performance in the quarter.

Supplier related of the team and the good news side the supply chain is improvement on the specific issues that we added in the third quarter created significant inefficiencies for us, but thats continued to improve so the operational execution improvement needs to occur will occur we're anticipating an improvement in Q4, the good thing.

Stanley Elliott: Our foods business, we can talk about that. They do have higher levels of inventory that have been impacted by scrap metal prices. So it does vary by business. But over the course of time, we would expect those to normalize as we move through 2024. Stan. Perfect. Thanks so much and best wishes to John. Thanks, Stan.

Steve is that the backdrop for that business is incredibly strong.

Steve Volkmann: Our next question comes from Steve Volkmann from Jeffries. Please go ahead. Your line is open. Great. Good morning. Thank you and congrats, John. My question is about margins in AWP and it sounds like there were a couple of kind of temporary headwinds in the quarter. I think we mentioned Monterey startup utility business kind of below normal. Is there any way to kind of ballpark the impact of that on the AWP margin in third quarter?

Speaker 1: They're booked out through 2025 for the most part in most product categories. I'm sorry, through 2024. Let me rephrase that through 2024. And so the market demand for that business is quite strong. We just need to improve our operational execution in deliveries, which we will as we go forward. That business is basically really hampered by supply chain issue. Yeah. Right. Good. Got it. Thank you, guys. Thank you. Our next question comes from Seth Weber from Wells Fargo. Please go ahead. Your line is open.

And they're booked out through 2025 for the most part in most product categories I'm sorry through 2024.

Let me rephrase that through 2024, and so the market demand for that business is quite strong we just need to improve our operational execution and deliveries, which we will.

As we go forward.

Speaker 7: That business has been particularly hampered by supply chain issues. Yeah. Yeah.

Great.

Hampered by supply chain issue.

Yes.

Okay got it thank you guys. Thank.

Thank you.

Speaker 1: Our next question comes from Seth's Lapper from Wells Fargo. Please go ahead and align his open.

Steve Volkmann: Sure. Thanks for the question, Steve. You know, AWP had operating margins of 12 and a half percent in the third quarter and it was up to 190 base points from last year. The improvement was really strong execution by the Genie team. You know, we had higher sales volumes. There's, you know, the supply chain is improving and discipline pricing and that offset some of the cost increases. Starting execution is successful cost up management.

Our next question comes from Seth Weber from Wells Fargo. Please go ahead. Your line is open.

Speaker 8: Hi, everybody. Good morning. And John echo, echo, congrats and.

Hey, everybody good morning, and John.

Congrats.

Speaker 8: enjoyed working with you, so happy trails.

Enjoyed working with you so.

Hi.

Speaker 8: Yeah, I wanted to get a better understanding for the 4th, the implied 4th quarter MP margin, which.

Yes.

Want to get a better understanding for the implied fourth quarter MP margin, which.

Speaker 8: Is down your rear and it's down sequentially a bunch, even though revenue, it looks like it's going to be up a little bit. I'm just wondering if you could give us some more details on.

Is down year over year, and it's down sequentially, a bunch, even though revenue it looks like it's going to be up a little bit I'm. Just wondering if you could give us some more details on.

Steve Volkmann: We continue to see that the hard work by the Genie team showing up in our financials and cost up initiatives as well. But these positives were partially offset by the expected inefficiency due to the Monterey ramp up. So that was, you know, included in our outlook and we talked about that on previous calls. But additionally, this quarter, we were disappointed in supplier performance to the utilities business, which caused unfavorable manufacturing and efficient peace and related unfavorable product mix.

Speaker 8: What's going on there, whether it's a mix issue, a product, you know, region issue or what just. Any more color there on the market.

What's going on there, whether it's a mix issue or product reach.

An issue or what.

Any more color there on the S&P market.

Speaker 4: Thanks. MP had, you know, off early margins of 16.9% in the third quarter, up to 130 basic points from last year. I mean, they just continuation before extreme.

Thanks, Steph, Yes, MP had operating margins of 16, 9% in the third quarter up 230 basis points from last year I mean, they just continued to perform extremely well.

Speaker 7: They continue to invest in the business as well and we made food investments to grow the business.

Steve Volkmann: We were able to get sales out but less favorable margin sales in the quarter in the utilities business and that had an unfavorable impact and probably about 12 cents a share in the quarter. And so overall our Q3 incremental margin, you know, was 34 percent and AWP increase their profit by almost 50 percent and margins improved by 2090 points because of Genie's strong execution in the quarter. Great. So the 12 cents would just be the utility business.

We continue to invest in the business as well and we made prudent investments to grow the business, but the margins benefited in the quarter from unfavorable regional and product mix and improved manufacturing efficiencies and also.

Speaker 4: So they had, in the quarter, we received about $3 million of R&D credits. We get this annually. It came in Q3, and so that was a favorable, you know, amount received in Q3. Going forward, we expect strong MP full-year sales, you know, over $2.2 billion. We expect Q4 sales to be up slightly from the third quarter. We did increase our outlook to 16.1% as the team continues to have their excellent performance. And the margins of the 15% in the Q4 will be strong, but sequentially lowered due to a less favorable geographic and product mix.

In the quarter, we received about $3 million of R&D credits, we get this annually. It came in Q3 and so that was a favorable.

Amounts are received in Q3 going forward, we expect strong full year sales.

Steve Volkmann: Right. And that would be offset and we had favorable performance in the quarter by the MP business of course with us by about 10 cents and the Genie business is up about 7 cents as well. From compared to the outlook. Okay. That's helpful. And then just to sort of follow on there, I guess, is it feels like utilities been a bit of a focus, shall we say, for a few quarters now.

The $2 2 billion.

Q4 sales to be up slightly from the third quarter, we did increase our outlets and 16, 1% as the team continues to have their excellent performance.

Speaker 2: And the margins of the 15% and the Q4 will be strong, but sequentially lowered due to a less favorable geographic and product mix, as well as some higher sequential engineering expense because the R&D credits that we received in Q3 will repeat itself. But overall, Mp continues to deliver consistent and strong operating performance.

And the margins in the 15% in the Q4 will be stronger sequentially lower due to a less favorable geographic and product mix as well as some higher sequential engineering expenses.

The R&D credits that we received in Q3 won't repeat itself, but overall MP continues to deliver consistently strong operating performance.

Steve Volkmann: What's the outlook for kind of getting that where it needs to be. Yeah, thanks. So, you know, the team, be straightforward, disappointed in our performance in the quarter, you know, supplier related. The team on the good news side, the supply chain is improvement on the specific issues that we had in the third quarter, created significant inefficiencies for us, but that's continued to improve. So the operational execution improvement, you know, needs to occur, will occur, we're anticipating an improvement in Q4, you know, the good thing, you know, Steve is that, you know, the backdrop for that business is incredibly strong.

That's helpful. Thanks, and then just.

Speaker 8: Maybe just the commentary around Europe , can you just expand on the softness that you're seeing there? Is that across both MP and AWP? And is that the source of the cancellations that you've been seeing?

Maybe just the commentary around Europe can you just expand on the softness that youre seeing there or is that across both MP in AWP.

And is that the source of the cancellations that you've been seeing.

Speaker 3: Thanks, Seth. In terms of cancellations, again, we've had minimal cancellations and pushouts, but we have seen and we did call out some softness in the European market. You know, we've actually been pleasantly surprised.

And in terms of cancellations again, we've had minimal cancellations and push outs, but we have seen and we did call out some some softness in the European market, we've actually been pleasantly surprised how well it's held up but if we look at Europe in our MP business on the aggregate side, our sales were up.

Steve Volkmann: And, you know, they're booked out through 2025, for the most part in most product categories. I'm sorry, through 2024, let me say that through 2024. And so the market demand for that business is quite strong. We just need to improve our operational execution and deliveries, which we will as we go forward. That business is completely hampered by supply chain issue. Yeah, right. Good, got it. Thank you, guys. Thank you.

And backlogs are quite high there customer sentiment in Europe.

Is not nearly as strong as the customer sentiment.

Speaker 3: Our foods business, you know, was, we saw some softness in the foods, foods business, again, associated with falling scrap metal prices. Now the good news for that business, the team's worked hard over the years to diversify. We're seeing some of the sales into our environmental business with the foods machine brand of eat.

In North America, our Fuchs business.

It was we saw some softness in the food Fuchs business again associated with falling.

Scrap metal prices now the good news for that business. The teams worked hard over the years, we've diversified we're seeing some of the sales into our environmental business with the Fuchs machines per entity.

Steve Volkmann: Our next question comes from Seth Weber from Wells Fargo. Please go ahead. Your line is open. Hey, everybody. Good morning and John echo, echo the graphs and enjoyed working with you. So happy to have you here else. Yeah, I wanted to get a better understanding for the fourth, the implied fourth quarter MP margin, which is down, you know, your rear and it's down sequentially a bunch, even though revenue looks like it's going to be up a little bit.

Speaker 3: Ecotech. So again, a mix there. But clearly, Fuchs saw some softness. And I would say in general, softness in Germany, where Fuchs is headquartered and has a long, a strong market.

<unk>, so again, a mixed there, but clearly folks saw some softness and I would say in general softness in Germany, where fuchs is headquartered and has a long.

Our strong market and then we called out last quarter, our tower Crane sales softness and.

And we saw continued softness in the tower Crane business.

In Europe and on the Genie side sales.

Steve Volkmann: I'm just wondering if you could give us some more details on what's going on there, whether it's a mix issue, a product, you know, a region issue or what, just any more color there on the MP market. Thanks. You know, MP had, you know, off early margins of 16.9% in the third quarter, up 230 basis points from last year. I mean, they just continue to perform extremely well. They continue to invest in the business as well.

Speaker 3: and bookings were holding, but again, at that customer sentiment, it's not quite as strong. And so we're just, we're highlighting that, that the European market, especially the UK and Germany, we're seeing some softness there. Again, we believe it's going to be offset by the strength we're seeing in North America, but Europe is in a different place due to the geopolitical risk, the inflation, than North America right now. So those are the businesses that we're seeing, softness, we're watching closely the bookings, you know, in those respective business segments. But again, it's really about the customer sentiment, being very different in Europe right now, especially in the UK and in Germany, especially as compared to North America, where customer sentiment is quite...

Bookings were holding but again as that customer sentiment is not quite as strong and so we're just we're highlighting that that the European market, especially the U K and Germany, we're seeing some softness there again, we believe it's going to be offset by the strength, we're seeing in North America.

But Europe is in a different place due to the geopolitical risk inflation.

The North America right now so those are the businesses that we're seeing softness we're watching closely the bookings.

Steve Volkmann: And we made proven investments to grow the business, but the margins benefited in the quarter from favorable regional and product mix and improved manufacturing efficiency. And also, they had, and the quarter we received about $3 million of R&D credits. We get this annually, it came in Q3. And so that was a favorable, you know, amount of receiving in Q3. Going forward, we expect strong MP full year sales, you know, over 2.2 billion. We expect Q4 sales to be up slightly from the third quarter. We did increase our outlook to 16.1% as the team continues to have their excellent performance.

Those respective.

Speaker 3: business segments. But again, it's really about the customer sentiment being very different in Europe right now, especially in the UK and in Germany, especially as compared to North America, where customer sentiment is quite strong.

Business segments, but again, it's really about the customer sentiment being very different in Europe, right now, especially in the UK and Germany, as especially as compared to North America, where customer sentiment is quite strong.

Speaker 8: It makes sense. Thanks. Thanks to everybody to talk to you soon. Thanks, Seth.

That makes sense. Thanks, Thanks, everybody, we'll talk to you soon.

Thank you Seth.

Our next question comes from Steven Fisher from UBS. Please go ahead. Your line is open.

Speaker 9: But thanks. Good morning, John . Best wishes. It's been a pleasure just to confirm the utilities impact and you reduce the AWP segment margin guidance by 50 basis points for the year. I think the 12 cents you called out would translate directly to that 50 cents. I think they're just to confirm you haven't assumed any impact on negative utilities supply chain for Q4.

Okay.

Thanks, Good morning, John Best wishes, it's been a pleasure.

Just to confirm the utilities impact and you reduce the AWP segment margin guidance by 50 basis points for the year.

Steve Volkmann: And the margins of the 15% and the Q4 will be strong, but sequentially lowered due to a less favorable geographic and product mix as well as some higher sequential engineering expense because the R&D credits that we received in Q3 will repeat itself. But overall, MP continues to deliver consistent and strong operating performance. That's helpful. Thanks.

Thank the 12 since you called out would translate directly to that 50.

Hi, Thanks, So just to confirm you haven't assumed any impact on negative utilities supply chain for Q4.

Speaker 7: Well, we're expecting it to improve in Q4 from Q3, but we're not expecting it to return to pre-pandemic levels. We're expecting it to return to more of our normal patterns in the first and second quarter.

And while we're expecting it to improving in Q4 from Q3, but we're not expecting it to return to pre pandemic levels, where we're expecting it to return to more of our normal patterns in the first and second quarter.

Seth Weber: And then just maybe just the commentary around Europe. Can you just expand on the softness that you're seeing there is that across both MP and AWP. And is that the source of the cancellations that you've been seeing? Thanks, Seth. In terms of cancellations, again, we've had minimal cancellations and pushouts, but we have seen and we did call out some softness in the European market. We've actually been pleasantly surprised how well it's held up.

Speaker 9: Okay, great. That's helpful. And then at this point, I know it's early, but I'm curious about the signals that you look at. And you talk a lot about backlog and visibility for next year, but I guess, you know, overall, did the signals suggest that you could have a year of growth in your two businesses? Are there any subsegments that you can say with sort of most confidence that demand should be growing in 24?

Okay, Great that's helpful and then.

At this point I know, it's early but I'm curious about the signals that you look at.

<unk> talked a lot about backlog and visibility for next year, but I guess.

Overall.

The signals suggest that you could have a year of growth in your two businesses or are there any sub segment that you're going to say with sort of the most confidence that demand should be growing in 'twenty four.

Seth Weber: But if we look at Europe in our MP business, on the aggregate side, our sales were up and backlogs are quite high there. But customer sentiment in Europe is not nearly as strong. It's the customer sentiment in North America. Our foods business, you know, was we saw some softness in the foods foods business. Again, associated with falling scrap metal prices. Now, the good news for that business. The teams worked hard over the years to diversify.

Speaker 3: Thanks, David. As you know, in Q3, we will provide a, you know, the team will provide a detailed outlook on our Q4 earnings call. And as you know, our customers and us right now are in the middle of our planning cycle. But with the strong backlogs we have with the $2 billion book.

Thanks, Stephen as you know in Q3, we will provide the team will provide a detailed outlook on our Q4 earnings call and as you know our customers and US right now are in the middle of our planning cycle, but with the strong backlog, we have with the $2 billion booked we do believe that that drives momentum into 2000.

Speaker 3: We do believe that that drives momentum into 2024. You know, we did just discuss some of the offset, if you will, with some softness in Europe . But in the U.S. market, it's quite strong. In my opening comments, you heard me talk about, you know, the tail tail winds that's occurring because of these three legislative acts.

Seth Weber: We're seeing some of the sales into our environmental business with the foods machine brandy. Ego tech. So again, a mix there, but clearly foods soft and softness. And I would say in general softness in Germany, where foods is headquartered and has a long a strong market. And then we called out last quarter, our tower crane sales softness in and we saw continued softness in the tower crane business in Europe. And on the genie side, you know, sales and bookings were holding, but again, at that customer sentiment, it's not quite as strong.

<unk> 24.

We did just discussed some of the offset if you will with some softness in Europe, but in the U S market is quite strong in my opening comments you heard me talk about the tail tailwind that's occurring because of these three legislative acts the significant increase in non residential construction spending if you listened to.

Speaker 3: significant increase in non-residential construction spending.

Speaker 3: If you listen to, especially in the genie business, if you listen to the rental customers, you know, they're, you know, they're buoyant. They're seeing growth in their business because of these incredible amount of physical stimulus that's occurring in the mega projects, the size of the projects, the duration of the project.

Especially in the Genie business, if you listened to the rental customers.

They are buoyant, they're seeing growth in their business because of these incredible amount of physical stimulus that's occurring the mega projects the size of the projects the duration of the projects. So that provides a very nice tailwind and we believe that provides a nice tailwind across our businesses in North America as we go into 2024.

Seth Weber: And so we're just we're highlighting that that the European market, especially the UK and Germany, we're seeing some softness there. Again, we believe it's going to be offset by the strength we're seeing in North America, but but but Europe is in a different place due to the geophilic risk, inflation, then North America right now. So those are the businesses that we're seeing. You know softness, we're watching closely the bookings, you know, in those respective business segments, but again, it's really about the customer sentiment being very different in Europe right now, especially in the UK and in Germany, especially as compared to North America, where customer sentiment is quite strong. It makes sense. Thanks. Thanks to everybody to talk to you soon. Thanks.

Speaker 3: So that provides a very nice tailwind. We believe that's right, the nice tailwind across our businesses in North America as we go into 2024. So I would say customer feedback, especially in North America is strong. Our bookings are, you know, add or near our kind of historical levels.

So I would say customer feedback, especially in North America is strong our bookings are at or near our kind of historical levels.

Speaker 3: So that's a good signal. Backlogs significantly higher than historical levels. And then just leading indicators around construction and construction spending, and the type of construction spending, IE.

So that's a good signal backlog significantly higher than historical level levels, and then just leading indicators around construction and construction spending in the type of construction spending I E. Public finance and then these onshore and projects that are going to occur irrespective of what interest rates are but as I said in my opening comments that's.

Speaker 3: public finance, and these onshoring projects are going to occur irrespective of what interest rates are. As I said in my opening comments, that's to reduce geopolitical risk to control the supply chain going forward. And so that's going to continue. So it does give us confidence, you know, and some momentum going into 2024. But again, at $2 billion of backlog, that's good for us historically. It provides that momentum into 2024. And for all, you know, the team will provide a 2024 outlook in our Q4 earnings call.

The reduced geopolitical risks control the supply chain going forward and so that's going to continue so it does give us confidence.

Steven Fisher: Our next question comes from Steven Fisher from UBS. Please go ahead and line is open. Thanks. Good morning. John best wishes. It's been a pleasure. Just to confirm the utilities impact and you reduce the AWP segment margin guidance by 50 basis points for the year, I think the 12 cents you called out would translate directly to that 50 cents. I think they're just to confirm you haven't assumed any impact on negative utilities supply chain for Q4.

And some momentum going into 2024, but again at $2 billion of backlog.

Good for US historically, it provides that momentum into 2024 and for all the team will provide a 2020 for outlook on our Q4 earnings call.

Speaker 10: Perfect, thank you very much.

Perfect. Thank you very much.

Speaker 1: Our next question comes from David Razo from Evercore ISI. Please go ahead your line and go.

Our next question comes from David Raso from Evercore ISI. Please go ahead. Your line is open.

Speaker 11: Hi, thank you very much. Sean Best of luck. Just enjoy family. Thanks David. And obviously congratulations.

Alright. Thank you very much John best of luck enjoy saying, thanks, David and obviously congratulations Simon the spirit of the question is just trying to frame the potential incremental margins in AWP for next year, just thinking about trying to leverage that got backlogs.

Speaker 11: The spirit of the question is just trying to frame the potential incremental margins in AWP for next year, just thinking about trying to leverage that backlog. The numbers I'm running for the impact on utilities on the segment for 3Q and 4Q, it feels like X the utility impact.

Steven Fisher: And well, we're we're expecting it to improve in Q4 from Q3, but we're not expecting it to return to pre pandemic levels, we're, you know, we're expecting it to return to more of our normal patterns in the first and second quarter. Okay, great. That's helpful. And then at this point, I know it's early, but I'm curious about the signals that you look at. I need to talk a lot about backlog and visibility for next year, but I guess, you know, overall to the signal suggests that you could have a year of growth in your two businesses. Are there any sub segments that you can say with sort of most confidence that that demand should be growing in 24? Thank you, Steven.

So I'm running for the impact on utilities on this segment for <unk> It feels like X the utility.

Impact.

You wouldn't really have changed much to the AWP guidance much right a little up on the revenue, but the margins still feel like there would've been about 13.8.

Speaker 11: guidance much right a little up on the revenue but the margins still feel like they would have been about

Speaker 11: And I know that was your guidance, but I think people are looking for a little more leverage some some upside and the profitability. Can you take us through just your thoughts around what's different in 24 versus 23?

And I know that was your guidance, but I think people are looking for a little more leverage some some upside in the profitability.

Can you take us through just your thoughts around what's different in 24 versus 23.

Steven Fisher: As you know, in Q3, we will provide a, you know, the team will provide a detailed outlook on our Q4 earnings call. And as you know, our customers and us right now are in the middle of our planning cycle. But with the strong backlogs we have with the $2 billion book, we do believe that that drives momentum into 2024. You know, we did just discuss some of the offset, if you will, with some softness in Europe.

Speaker 11: what could impact the margins and i'm i'm thinking about monoray i'm thinking about the mix the price cost i think people are just trying to figure out as you know what your competitors had decent leverage

What could impact the margins and I'm thinking about Monterey I'm thinking about the mix the price cost I think people are just trying to figure out and as you know what your competitors have decent leverage yesterday in that segment.

Speaker 11: I'm trying to get a sense of how we should think about the puts and takes on incremental 24.

Just trying to get a sense of how we should think about the puts and takes on Incrementals 24 versus 23. Thank you yeah. So I'll jump in and then Julie can jump in so at the highest level from a price cost standpoint again, our pricing strategy is not going to change we price to offset material freight and labor cost increases we are seeing.

Speaker 3: Yeah, so I'll jump in and Julie can jump in. So you know, at the highest level, you know, from a price cost standpoint, again, our pricing strategy is not gonna change week and week and week price to offset the tier of freight and labor cost increases.

Steven Fisher: But in the US market, it's quite strong. In my opening comments, you heard me talk about, you know, the tail, tailwinds that's occurring because of these three legislative acts, the significant increase in non-residential construction spending. If you listen to, especially in the genie business, if you listen to the rental customers, you know, they're, you know, they're buoyant. They're, they're seeing growth in their business because of these incredible amount of physical stimulus that's occurring, the mega projects, the size of the projects, the duration of the projects.

Speaker 3: You know, we are seeing continued inflationary pressures. Our team's working hard to offset that, David, but we do, you know, believe that there is pricing and there's pricing in our backlog for 2024. So, you know, price-cost, price-cost neutral is what we've been driving for. Our job is to control cost, push cost.

<unk> inflate.

Inflationary pressures our teams working hard to offset that David but we do.

And believe that there is pricing in this pricing in our backlog for 2024, so price cost price cost neutral as what we've been driving for our job is to control cost push cost get the price that we needed a marketplace to offset that so.

Speaker 3: get the price that we needed to marketplace off set that. So, that's how a common on price costs, no significant differences we transitioned from 23, you know, into 24. We're spoken about Monterey. You know, Monterey, as we ramp up over the course in the next 18 months and through.

Steven Fisher: So that provides a very nice tailwind. We believe that drives a nice tailwind across our businesses in North America as we go into 2024. So I would say customer feedback, especially in North America, is strong. Our bookings are, you know, at or near our kind of historical levels. So that's a good signal. Backlogs significantly higher than historical level levels. And then just leading indicators around construction and construction spending and the type of construction spending, i.e, public finance and these ensuring projects are going to occur irrespective of what interest rates are.

That's how I'd comment on price costs, no significant differences, we transitioned from 'twenty three.

<unk> into 'twenty four.

Were spoken about Monterey Monterey.

As we ramp up over the course of the next 18 months and through 2024 that does create some inefficiencies with the product line moves and again, our Q3 forecast the Monterrey team delivered what we expected they were right on.

Speaker 3: 2024. That does create some inefficiencies with the product line moves. And again our Q3 forecast the Monterey team delivered what we expected. They were they were right on. You know we expected that in our outlook. We would expect that continuing David.

We expected that in our outlook, we would expect that continuing David through 2024, and as we enter into 2025, that's that 200 basis point overall kind of margin improvement.

Speaker 3: through 2024 and as we enter into 2025, that's that 200 basis point overall kind of margin improvement for the genie business as we go forward.

Steven Fisher: As I said in my opening comments, that's to reduce geopolitical risk to control the supply chain going forward. And so that's, that's going to continue. So it does give us confidence. You know, and some momentum going into 2024. But again, with at two day in a backlog, that's, that's good for us. Historically, it provides that momentum into 2024.

For for the Genie business as we go forward within that AWP segment, we do need to see and that's on US we do need to see improved performance on our utility segment, because we did not get leverage actually was quite negative leverage in the quarter and so we need to get that business to that 25% incremental margin.

Speaker 3: Within that AWP segment, we do need to see, and that's on us, we do need to see improved performance.

Speaker 3: on our utility segment because that we did not get leverage. Actually, it was quite negative leverage in the quarter. And so we need to get that business to that 25% incremental, you know, margin target that we set. So we would expect our utilities business to improve performance.

Steven Fisher: And, and for all, you know, the team will provide a 2024 outlook on our Q4 earnings call.

What we said so we would expect our utilities business to improve performance from 23 to 24, so that should give us some leverage and then in our MP business. I mean, they are rock solid consistent and we're going to continue to invest in that sometimes our incremental margins above David are 25% targets some quarters it's below.

Steven Fisher: Perfect. Thank you very much.

David Raso: Our next question comes from David Razo from Evercore, ISI. Please go ahead. Your line is open. Hi, thank you very much. I'm best of luck to enjoy family and obviously congratulations to Simon.

David Raso: The spirit of the question is just trying to frame the potential incremental margins and AWP for next year. You know, just thinking about trying to leverage that that backlog. The numbers I'm running for the impact on utilities on the segment for 3Q and 4Q. It feels like X, the utility impact. You wouldn't really have changed much to the AWP guidance much right a little up on the revenue, but the margins still feel like they would have been about the 13.8.

Based on where we are from an investment investment profile, but they delivered consistent strong operating margin performance and so that's how I'd answer. The question as you know David we are in the middle of the planning process, we'll be pushing the team obviously for our cross dock cost out initiatives will be pushing the team to drive manufacturing efficiency improvements.

Speaker 3: from an investment-to-investment profile, but they deliver consistent, strong operating margin performance. And so that's how I'd answer the question. As you know, David, we're in the middle of the planning process. We'll be pushing the team. Obviously, for our cost-out and cost-out initiatives, we'll be pushing the team to drive manufacturing efficiency improvements as the supply chain. And again, I think it's a reasonable assumption to assume the supply chain continues to improve. We're not all the way back yet, but we have seen improvement in 23. So I think it's a reasonable assumption to say we should see some manufacturing efficiency improvements as supply chain improves and disruptions decline into 2024. So just macro, high-level from a CEO's standpoint, I think that's how I'd answer the question, David.

The supply chain and again I think it's a reasonable assumption to assume the supply chain continues to improve we're not all the way back yet, but we have seen improvement in 'twenty. Three so I think it's a reasonable assumption to say, we should see some manufacturing efficiency improvements and supply chain improves in disruptions decline into 2024.

Speaker 3: we should see some manufacturing efficiency improvements as supply chain improves and disruptions decline into 2024. So, you know, just macro high level from a CEO's standpoint, I think that's how I'd answer the question, David.

David Raso: And I know that was your guidance, but I think people are looking for a little more leverage some some upside and the profitability. Can you take us through just your thoughts around what's different in 24 versus 23? What could impact the margins? And I'm thinking about Monterey. I'm thinking about the mix, the price cost. I think people are just trying to figure out, as you know, what your competitors have decent leverage yesterday and that segment. Just trying to get a sense of how we should think about the puts and takes on incremental 24, versus 23. Thank you.

Just macro high level from a CEO standpoint, I think that's how I'd answer the question David.

Speaker 11: I appreciate that. And I don't mean to push on your, maybe your last call here, but maybe if the CFO had your nature, David, you won't be listening to the call. The next time I ask the question. Oh, yes, I will. But, but Julie, just so I, we can frame it. Obviously, utility is hurting right now, but when I think of the size of that business, you know, call it five, fifty five, seventy five million a rev.

I appreciate that and I don't mean to push on your maybe your last call here, but maybe your CFO hat nature Davis.

You will be listening to the call. The next time you asked the question Oh, yes.

But Julie just so we can frame. It obviously utility is hurting right now, but when I think of the size of that business, you know call it $5 $55 $75 million of revs.

Jon Garrison: Yeah, so I'll jump in and then Julie can jump in. So, you know, at the highest level, you know, from a price cost standpoint, again, our pricing strategy, you know, it's not going to change week. And we priced offset material freight and labor costs increases, you know, we are seeing continued inflationary pressures, our teams working hard to offset that, David. But we do, you know, believe that there, there is pricing and there's pricing in our backlog for 2024.

Jon Garrison: So, you know, price cost, price cost, neutral. Control is what we've been driving for our job is to control costs, push costs, get the price that we need into marketplace to offset that. So, you know, that's that's how I comment on price costs, no significant differences. We transitioned from 23, you know, in into 24, we're spoken about Monterey, you know, Monterey, you know, we're, as we ramp up over the course in the next 18 months and through 2024, that does create some inefficiencies with the product line moves.

Speaker 11: Can we see a swing back in that business worth, you know, four, 500 basis points in that segment?

Can we see.

Swing back in that business worse.

Four or 500 basis points in that segment.

Speaker 11: over a year just I know wasn't quite that big a hit for them right now but

Year over year, just I know it wasn't quite that big you have for them.

Yeah.

For the year.

Speaker 7: I would say that we would expect improvement in the utility business which will impact the segment. So let's talk about, and so, you know, when you think about the margins, you know, we talked about the impact of 12 cents a share in the quarter. And you think about that, that they were significantly below the run rate in Q1 and Q2. So in Q4, we're expecting that to come back. And they still have opportunity, we still want to return this business.

I would say that we would expect improvement in the utility business, which will impact. This segment. So let's talk about and so they were you know when you think about the margin we talked about the impact.

<unk> of $12 a share in the quarter and you think about that they were significantly below that run rate in Q1 and Q2. So in Q4, we're expecting that to.

To come back and they still have have opportunity, we still want to return the business to low.

Speaker 7: to low double digit margins and we do think that that's within site. And so we'll continue to start.

Low double digit margins and we do think that with insight and so we'll continue to strive for that.

Jon Garrison: And again, our two, three, we're, you know, forecast the Monterey team delivered what we expected there. They were right on, you know, we expected that in our outlook. We would expect that continuing, David, through 2024. And as we enter into 2025, that's that 200 basis point overall, kind of margin improvement for for the genie business as we go forward. Within that AWP segment, we do need to see, and that's on us.

Speaker 11: and monitor it and the impact just to think about the path to the to the 200 bit.

And Monterrey and the impact just to think about the path to the 200 bps. What would you expect 24 versus 23 that framework, what's the word versus 'twenty three.

Speaker 11: What would you expect 24 versus 23, that framework? W-

Speaker 7: So I would expect that we will see disruption. Remember, when you think about it, you think about it, there's disruption for the receiving location in Monterey as well as the sending.

So I would expect that we will see we will see.

Disruption remember it and when you think about it you think about it there's disruption for the.

Jon Garrison: We do need to see improved performance on our utility segment because that we did not get leverage. Actually, it was quite negative leverage in the quarter. And so we need to get that business to that 25% incremental, you know, margin target that we set. So we would expect our utilities business to improve performance from 23 to 24. So that should give us, you know, some leverage. And then in our MP business, I mean, they are, you know, rock solid consistent.

The receiving location in Monterrey, as well as the spending but I think that that will.

Speaker 4: But I think that we'll see that, but the benefit of that is the 200 basis points when we come out of 2025. So the Monterey team was right on target and we'll continue to work hard to eliminate to do better than what we've guided to. And we've talked about that it could be somewhere between a $10 and $15 million impact in 2023. And we would expect some of that to continue into 20.

See that.

<unk> of that is the 200 basis points when we come out of 2025. So the minor 18 was right on target and we'll continue to do.

We work hard to eliminate.

That that.

To do better than what we've guided to and we've talked about that it could be somewhere between $10 million to $15 million impact in 2023.

Jon Garrison: And we're going to continue to invest on that. Sometimes our incremental margins above David are 25% target. Some quarters it's below, based on where we are from, you know, investment investment profile, but they deliver consistent, you know, strong operating margin performance. And so, you know, that's how I'd answer the question is, you know, David, we're in the middle of the planning process. We'll be pushing the team. Obviously for our cost out and cost out of the students.

We'd expect some of that to continue into 2024.

Speaker 11: And lastly, for me, any broad thoughts with Simon to think about where the balance sheet is? I mean, I would.

And lastly from me any any broad thoughts with Simon.

So think about where the balance sheet is I mean.

Our euro terex as balance sheets about as strong as we've ever seen it. So just trying to think about any capital allocation commentary that you are Simon or.

Speaker 11: So just trying to think about any capital allocation commentary that you or Simon are the transition.

Jon Garrison: We'll be pushing the team to drive manufacturing efficiency improvements as the supply chain. And again, I think it's a reasonable. The assumption to assume the supply chain continues to improve. We're not all the way back yet, but we have seen improvement in 23. I think it's a reasonable assumption to say, we should see some manufacturing efficiency improvements as supply chain improves in disruptions, decline into 2024.

The transition might provide investors how to think about the use of the balance sheet. Thank you.

Speaker 7: Yeah, I think you from our so yes, we do have a strong balance sheet, you know, we have ample liquidity. We have $146 million and that leverage is at point five time

Yeah, I think so yes, we do have a strong balance sheet, we have ample liquidity we have.

$846 million and net leverage is at that 0.5 times.

Speaker 7: And as we discussed, you know, the first thing we like to do is organic growth and we're investing in our facilities in a particular moderate rate right now and those investments are paying off with a 29% return on investor capital.

And as we discussed the first thing we'd like to do is organic growth and we're investing in our facilities.

Julie Beck: So, you know, just macro high level from a CEO standpoint. I think that's how I'd answer the question. David, I appreciate that. And I don't mean to push on your, maybe your last call here. But maybe if you see a foe hat, you'll be listening to the call the next time I ask the question. Oh, yes, I will. But Julie, just so we can frame it, obviously, utility is hurting right now.

In particular, Monterrey, right now and those investments are paying off with a 29% return on invested capital.

Speaker 7: Of course, we've talked about even in my compare remarks, the increase of the dividend.

Of course, we've talked about even in my prepared remarks, the increase of the dividend.

Speaker 7: And we've increased it 31% since the start of the year. So we'll do that.

And we've increased it 31% since the start of the year that will do that and then we'll look at what we do it will generate significant cash and we will look at whether we do inorganic or share repurchases.

Speaker 7: And then we'll look at what we do. It will generate significant cash and we'll look at whether we do inorganic or share repurchases. So inorganic, you know, we've made some smaller investments and we've discussed them earlier. We have an active pipeline. We'll continue to look at those. We'll be, you know, disciplined in that process.

Julie Beck: But when I think of the size of that business, you know, call it 550, 575 million of revs, can we see a swing back in that business worth, you know, 400, 500 basis points in that segment. You're over a year, just I know wasn't quite that big a hit for them right now, but for the truck. I would say that we would expect improvement in the utility business, which will impact the segment.

Inorganic.

We've made smaller investments and we've discussed in earlier, we have an active pipeline. We will continue to look at those will be.

Disciplined.

And in that process.

Speaker 7: And we'll also look at share purchases. And so, you know, we have repurchased that $34 million worth of shares near the data. At the end of the quarter, we had $159 million remaining on that authorization. Our goal, you know, we always state that we want to offset the solution from instead of comp and also make opportunistic prices. And at these prices, we believe our shares are an attractive investment and we're out purchasing shares.

We will also look at share repurchases and so we have repurchased $34 million worth of shares year to date at the end of the quarter, we had $159 million remaining on that authorization.

Julie Beck: So let's talk about and so, you know, they were, you know, when you think about the margins, you know, we talked about the impact of 12 cents a share in the quarter, and you think about that, that they were significantly below the run rate in Q1 and Q2. So in Q4, we're expecting that to come back, and they still have opportunity. We still want to return this business to a low double digit margins, and we do think that that that's within site, and so we'll continue to strive for that.

Our goal, we always state that we want to offset dilution from incentive comp and also make opportunistic that prices in at these prices. We believe our shares are an attractive investment and were out purchasing shares.

Speaker 11: So our strong balance sheet allows us the flexibility and allows us to invest for future growth. And... All right, I appreciate the answer.

Our on balance sheet allows us flexibility and allows us to invest for future growth.

Alright, I appreciate the answer and again congratulations thank you so much David.

Speaker 1: Our next question comes from Tammy Zakaria from JP Morgan. Please go ahead, your line is open.

Our next question comes from Tami Zakaria from Jpmorgan. Please go ahead. Your line is open.

Julie Beck: And Monorite and the impact is to think about the path to the 200 bits. What would you expect 24 versus 23 that framework? What's the actual 24 versus 23? So I would expect that we will see disruption. Remember, when you think about it, you think about if there's disruption for the receiving location in Monorite as well as the sending, but you know, I think that that, you know, we'll see that, but the benefit of that is the 200 basis points when we come out of 2025.

Speaker 12: Hi, good morning. Thank you so much for taking my questions. So on your slide, you noted about over 35,000 projects approved or awarded in infrastructure, probably more to come. And one of your competitors is increasing capacity and access equipment. How are you thinking about growing market share if demand accelerate because of these children?

Hi, good morning. Thank you so much for taking my question.

On your slide you noted about over 35000 project.

Awarded and infrastructure.

Probably more to come.

And one of your competitors is increasing capacity in access equipment.

Thinking about growing market share in demand activity because of the tailwind.

Speaker 3: Yeah, a great question. So, you know, from a footprint standpoint, specifically, and access with our team.

Yeah, Great question, so from a from a footprint standpoint specific agent access.

Julie Beck: So the Monorite team was right on target, and we'll continue to work hard to eliminate, you know, that, that, you know, to do better than what we've guided to, and we've talked about that it could be somewhere between a $10 and $15 million impact in 2023, and we would expect some of that to continue into 2024.

With our Genie business.

Speaker 3: You know, our Monterey Facility really helps us to be globally cost competitive.

Our Monterey facility really helps us to be globally cost competitive. We are we'll have incremental capacity as we begin to ramp that facility as we go forward and so we believe we're in a good position from a capacity standpoint.

Speaker 3: We are, we'll have incremental capacity as we begin to ramp that facility as we go forward. And so we believe we're in a good position from a capacity standpoint. We're still producing significantly less than unit volumes, you know, than we did in the 2018, you know, type time frame. So from a capacity standpoint, we believe we'll have adequate capacity to take advantage of market growth.

I mean, we're still producing significantly less in unit volumes.

Julie Beck: And lastly, for me, any, any broad thoughts with Simon to think about where the balance sheet is. I mean, you know, how would argue right, Terrix is balance sheets about as strong as, you know, we were seeing it. So just trying to think about any capital allocation commentary that you or Simon or the transition might provide investors have to think about the use of the balance sheet. Thank you. Yeah, it takes you from our so yes, we do have a strong balance sheet, you know, we have ample liquidity.

We did in the 2018 type timeframe. So from a capacity standpoint, we believe we'll have adequate capacity to take advantage of market growth.

Speaker 3: From a market shares standpoint, our market shares held relatively consistent this year. The team focused on new product development, and as we look at new product development, we do believe that new product development will help us as we go forward, that will launch the new products that we've launched, we've seen a respected increase in the market position of those products that we launch. I'm gonna assure you the team has a very active new product development program as we go forward. So we'll have leading edge products that deliver the best total cost of ownership in the industry, and we believe that will position as well going forward in the genie business.

From a market share standpoint, our market shares held relatively consistent this year. The team is focused on new product development and as we look at new product development. We do believe that new product development will help us as we go forward.

We've launched the new products that we've launched we've seen our respective increase in them in the market position of those products that we launch I can assure you. The team has a very active new product development program. As we go forward. So we will have leading edge.

Julie Beck: We have $846 million and that leverage is at point five times. And as we discussed, you know, the first thing we like to do is organic growth and we're investing in our facilities, in particular, Monorite right now, and those investments are paying off with a 29% return on invested capital. Of course, we've talked about, even in my compare remarks, the increase of a dividend, and we've increased it 31% since the start of the year.

Products that deliver the best total cost of ownership in the industry and we believe that will position us well going forward in the Genie business.

Speaker 12: Got it. That's very helpful. Quick follow up. Are you able to quantify the incremental capacity you expect from Monterey? Is it like a 5 to 10, 10, 15, any numbers?

Got it that's very helpful. A quick follow up are you able to quantify the incremental capacity you expect some moderate is it like to fly to 10 10 15 any numbers.

Julie Beck: So we'll do that. And then we'll look at what we do. We'll generate, you know, significant cash and we'll look at whether we do inorganic or share repurchases. So inorganic, you know, we've made some smaller investments and we've discussed them earlier. We have an active pipeline will continue to look at those, which will be, you know, disciplined and in that process. And we'll also look at share repurchases. And so, you know, we have repurchased that $34 million worth of shares near the data at the end of the quarter.

Speaker 3: I would quantify this one and just say today, we're still at, you know, call it 15% plus or minus, maybe even 20% less than we were in 2018, 2019 timeframe. So on a unit volume basis.

I would quantify it this way and just say today, we're still at call it 15% plus or minus maybe even 20% less than we were in 2018 2019 timeframe. So on a unit volume basis.

Okay, great. Thank you for months.

Okay.

Speaker 1: And next question comes from Nicole. Nicole the blaze from Deutsche Bank. Please go ahead, your line is up.

Our next question comes from Nicole Nicole the Blaze from Deutsche Bank. Please go ahead. Your line is open.

Speaker 13: Yeah, thanks for morning guys and John , congratulations on a very well-deserved retirement.

Yes, Thanks, good morning, guys and John Congratulations on a very well deserved retirement.

Julie Beck: We had $159 million remaining on that authorization. Our goal, you know, we always state that we want to offset the solution from instead of comp and also make opportunistic prices. And at these prices, we believe our shares are an attractive investment and we're out purchasing shares. So our strong balance sheet, you know, allows us flexibility and allows us to invest for future growth.

Thanks Nicole.

David Raso: Thank you. I appreciate the answer and, again, congratulations. Thank you so much.

Speaker 13: Maybe just first on the backlog within AWP. Can you just talk a little bit about the mix of NRC versus IRC customers and also anything interesting that you've seen from a product?

Maybe just first on <unk>.

Backlog with an AWP can you just talk a little bit about the mix.

And our C versus IRC customers and also anything interesting that you've seen from a products perspective.

Speaker 3: On the call I would say the mix is relatively consistent with what we've had historically so it has been flows quarter to quarter You know with with the the larger Customers, you know in Q4 when you when you sign there, you know their annual agreements You'll see that quarter bump up But if you just look at the backlog I'd say it's relatively consistent with historical norms But it does have been flow quarter to quarter especially when when you book some of the larger national account order

Nicole I would say the mix was relatively consistent with what we've had historically, so it ebbs and flows quarter to quarter.

With the larger.

Tami Zakaria: Our next question comes from Tami Zakaria from JP Morgan. Please go ahead. Your line is open.

<unk> customers in Q4, when you when you assign their annual agreements youll see that quarter bump up but if you just look at the backlog I would say, it's relatively consistent with historical norms, but it does ebb and flow quarter to quarter, especially when you book some of the larger national account orders.

Tami Zakaria: Good morning. Thank you so much for taking my questions. So on your slide, you noted about over 35,000 projects approved or awarded in infrastructure. Probably more to come. And one of your competitors is increasing capacity and access equipment. How are you thinking about growing market share if demand accelerate because of these children? Yeah, a great question. So, you know, from a footprint standpoint, specifically in access with our Genie business, you know, our Monterey facility really helps us to be globally cost competitive.

Speaker 13: got it. Thank you. And then just thinking about free cash flow into 4Q and then into 2024. I guess it, you know, it seems like you guys still have quite a bit of opportunity from a working capital perspective. How do you think about that opportunity, particularly on the inventory side? Like, can you get back to historical levels of inventory? Can you just walk through that?

Got it. Thank you and then just thinking about free cash flow into <unk> and then into 2024 I guess it seems like you guys still have quite a bit of opportunity from a working capital perspective, how do you think about that opportunity, particularly on the inventory side like can you get back to historical levels of inventory.

Can you just walk through that thank you.

Speaker 7: Sure, thanks for the question, Nicole. Yes, the management team is focused on networking capital with the percentage of sales. And it's actually part of our set of programs. So we're very focused on it. And we talk about inventory in particular, a lot in our management meeting.

Sure Yes.

Thanks for the question Nicole Yes.

Yes, the management team is focused.

Net working capital as a percentage of sales and it's actually part of our incentive comp programs that were very positive about it when we talk about inventory in particular.

Tami Zakaria: We are, we'll have incremental capacity as we begin to ramp that facility as we go forward. And so we believe we're in a good position from a capacity standpoint. We're still producing significantly less than unit volumes, you know, than we did in the 2018, you know, type time frame. So from a capacity standpoint, we believe we'll have adequate capacity to take advantage of market growth. So from a market share standpoint, our market share is held relatively consistent this year.

Sure.

A lot in our <unk>.

And our management meeting.

Speaker 7: We continue to have a hospital inventory, you know, today, but we have reduced that by 68% from last year and so is that about $20 million. So certainly that's an opportunity to reduce inventory as well as we continue extra inventory. And we will continue to do that until the supply chain destruction is the bait. But we're very focused on working capital and we'll continue to be focused on it and generate.

We continue to have a hospital inventory today, but we have reduced debt by 68%.

Last year, and so is that about $20 million.

And certainly that's an opportunity to reduce inventory as well as we continue extra inventory and we will continue to do that until the supply chain disruptions abate, we're very focused on working capital and we will continue to beat it.

Tami Zakaria: The team is focused on new product development. And as we look at new product development, we do believe that new product development will help us as we go forward. We've launched the new products that we've launched, we've seen a respected increase in them in the market position of those products that we launch. I'm going to assure you the team has a very active new product development program as we go forward. So we'll have leading edge, you know, products that deliver the best total cost of ownership in the industry.

Our focus on it.

Speaker 3: Yeah, Nicole probably heard me say in the past in the just in time turned out to be just late and

Generate cash and on the call you probably heard me say in the past in the just in time turned out to be just wait and see.

So in the in the channels, we're asking our suppliers will carry a little bit more inventory again to eliminate the disruptions that we've been seeing and so but as Julie said it is part of our incentive comp system.

Speaker 3: to eliminate the disruptions that we've been seeing. And so, but as Julie said, it is part of our incentive system. Return on Advested Capital is important to the company and improving return on capital of our working capital. We're incentivized to drive improvement in that metric as well. And the only caveat I'll say is a little bit, is keeping a little bit more inventory until we see more steady state supply from the suppliers. So, but we're focused on it. Thanks. I'll pass it on.

Tami Zakaria: And we believe that will position as well going forward in the genie business. God, if that's very helpful, quick follow up, are you able to quantify the incremental capacity, you expect some monitoring, is it like a 5 to 10, 10, 15, any numbers? I would quantify this one and just say today, we're still at, you know, call it 15% plus or minus, maybe even 20% less than we were in 2018, 2019 time frame. So on a unit volume basis.

Return on invested capital is important to the company and.

Jon Garrison: Okay, great. Thank you so much.

<unk>.

In improving return on capital of our working capital, we're incentivized to drive improvement in that metric as well and the only caveat I'll say is a little bit us keeping a little bit more inventory until we see more steady state supply from from the suppliers, so but we're focused on it.

Speaker 3: supply from the supplier. So, but we're focused about it.

Thanks, I'll pass it on.

Speaker 1: Our next question comes from Jerry Revitch from Goldman Sachs. Please go ahead to line his up.

Our next question comes from Jerry Revich from Goldman Sachs. Please go ahead. Your line is open.

Speaker 14: Yes, hi. Good morning and John let me add my congratulations as well. You know, when you took over in 2015 Active equipment was at a pretty high point in the cycle and the company was earning sub two dollars per share and you know over seven dollars today. So congratulations on the strong transformation here. Thank you, Jared.

Nicole DeBlase: Our next question comes from Nicole. Nicole the blaze from Deutsche Bank. Please go ahead. Your line is open. Yeah, thanks. Good morning, guys. And John, congratulations on a very well-deserved retirement. Thanks, Nicole.

Yes, Hi, good morning, and John Let me add my congratulations as well.

Took over in 2015.

The equipment was.

Pretty high point in the cycle when the company was there any.

Nicole DeBlase: Maybe just first on the backlog within AWP, can you just talk a little bit about the mix of NRC versus IRC customers and also anything interesting that you've seen from a product perspective? Nicole, I would say the mix is relatively consistent with what we've had historically. So it adds and flows quarter to quarter. You know, with the larger customers, you know, in Q4, when you assign their, you know, their annual agreements, you'll see that quarter bump up.

Sub $2 per share.

$7 today.

Congratulations.

On the strong transformation here thank.

Thank you Jerry.

It was a team effort.

Speaker 14: Can I ask in terms of the outlook for normalizing production rates now that logistics for the industry are catching up, you know, as we think about what the production cadence looks like in 2024, it feels like we should be looking for a heavier

Yes.

Can I ask you in terms of.

Nicole DeBlase: But if you just look at the backlog, I'd say it's relatively consistent with historical norms, but it does have been flow quarter to quarter, especially when you book some of the larger national account order. I got it. Thank you.

The outlook for normalizing production rates now that logistics for the industry.

Are catching up.

As we think about what the production cadence looks like in 2024. It feels like we should be looking for a heavier <unk> mix of total compared to what we've seen over the past couple of years as well.

Speaker 14: 2Q and 3Q as a mix of total compared to what we've seen over the past couple of years as you know, we've given deliveries to customers at, you know, first quarter, fourth quarter that I've been heavier. Is that right? Can we talk about that obviously for areas you're guiding to sales that are bladdish year, rear and fourth quarter based on cap, I think that's it sounds like first quarter is gonna be down. We're

Given deliveries to customers first.

First quarter fourth quarter.

Julie Beck: And then just thinking about free cash flow into 4Q and then into 2024, I guess it, you know, it seems like you guys still have quite a bit of opportunity from a working capital perspective. How do you think about that opportunity, particularly on the inventory side? Like, can you get back to historical levels of inventory? Can you just walk through that? Thank you. Thanks for the question, Nicole. Yes, the management team is focused on networking capital as a percentage of sales.

Is that right can we talk about that obviously for aerials youre guiding to sales that are flattish year over year and fourth quarter based on Capex.

It sounds like first quarter is going to be down.

Speaker 14: your year potentially for your customers and bigger shipments and two Q and three Q. I just want to run that by and see if that's consistent with how you're thinking about normalization.

Year over year potentially to your customers and bigger shipments of <unk> and <unk> I just want to run that by you and see if thats good.

System with how youre thinking about normalization.

Speaker 3: Yeah, I think that's a reasonable assumption is, is, is, is we indicated that I think the businesses all as supply chain continues to improve, we're going to return to more seasonal patterns. They underlying customer demand seasonal patterns didn't.

Alright, I think thats, a reasonable assumption as we indicated I think the businesses all the supply chain continues to improve we're going to return to more seasonal patterns. The underlying customer demand seasonal patterns didn't change what changed was the industry's ability to meet those patterns. So supply chain is improved I think as we transition into <unk>.

Julie Beck: And it's actually part of our set of comp programs. So we're very focused on it. And we talk about inventory in particular, you know, a lot in our management meetings. We continue to have a hospital inventory, you know, today, but we have reduced that by 68% from last year. And so it's at about $20 million. So. Certainly, that's an opportunity to reduce inventory as well as we continue extra inventory. And we will continue to do that until the supply chain destruction debate. But we were very focused on working capital and will continue to be focused on it and generate cash.

Speaker 3: what changed was the industry's ability to meet those patterns. So as supply chains improve, I think as we transition into 2004, we're going to see a return to more normal seasonal patterns on booking, backlogs, deliveries.

Four we're going to see a return to more normal seasonal patterns on bookings backlogs deliveries customer order patterns when customers would like to take equipment. So I think thats a reasonable assumption as we head into 2020 for Gerry.

Speaker 3: customer or patterns when customers would like to take equipment. So I think that's a reasonable assumption as we add into 2024, Jerry.

Speaker 14: In Europe , AWP, there's been ebbs and flows based on product availability. Recently, you folks have been able to wrap up deliveries from Asia that have driven the strong growth.

Super.

Jay.

Europe AWP.

There's been ebbs and flows based on product availability. So recently.

Jon Garrison: Yeah, Nicole probably heard me say in the past in the just in time turned out to be just late. And so in the channels, we're asking our suppliers will carry a little bit more inventory again to eliminate disruptions that we've been seeing. And so, but as Julie said, it is part of our incentive system, you know, return on invested capital is important to the company and improving return on capital of our working capital.

<unk> been able to ramp up deliveries from Asia that have <unk>.

Given the strong growth this year.

Speaker 14: This year, you had mentioned demand might be a touch softer. Can you just talk about how you view us normalized levels of demand in Europe , AWP, considering before this year there's been more supply constraints for that part of your footprint?

And demand might it might be a touch softer can you just talk about how you view as normalized levels of demand in Europe AWP considering.

Before this year there has been more supply constraints.

For that part of your footprint.

Speaker 3: Right. So this year's supply constraints really started to alleviate in Europe , actually ahead of North America. Our sales and bookings in Europe are holding pretty constant in Q3. But again, just going back to that customer sentiment. The customer sentiment is not nearly as buoyant. And so we're watching that. We'll see. Obviously, there's some not as many large national accounts in Europe , but we're engaged in those conversations as there are in North America. So, you know, more to come, but we thought it was worth calling out this sentiment in Europe . It's definitely not nearly as strong as it is in North America.

So this year supply constraints really which started to alleviate in Europe actually ahead of North America.

Jon Garrison: You know, we're incentivized to drive improvement in that metric as well. And the only caveat I'll say is a little bit is keeping a little bit more inventory until we, you know, we see more steady state supply from the supplier. So, but we're focused on it.

Our sales and bookings in Europe are holding pretty constant in Q3, but again, just going back to that customer sentiment the.

Nicole DeBlase: Thanks. I'll pass it on.

Customer sentiment is not nearly as buoyant and so we're watching that we will see where obviously there is some not as many large national accounts in Europe, but we're engaged in those conversations as there are in North America, so more to come but we thought it was worth calling out this sentiment in Europe has definitely not nearly as strong as it is in North America.

Jerry Revich: Our next question comes from Jerry Revit from Goldman Sachs. Please go ahead to line is open. Yes, hi. Good morning. And John, let me add my congratulations. Well, you know, when you took over in 2015. Access equipment was at a pretty high point in the cycle and the company was earning some $2 per share and, you know, over $7 today.

Okay.

Speaker 3: Yeah, I appreciate the transparency and the discussion. Thanks. Yeah. And Jerry, let me just say on that, and really as we look and it goes to our telematic data, as well, at UK and Germany, other markets are holding up, but UK and Germany we're seeing that sentiment.

Yes, I appreciate the transparency and the discussion thanks, Yeah, and Gerry let me just say on that and it really is we look and it goes through our telematics data as well in the UK in Germany. Other markets are holding up a U K and Germany, we're seeing we're seeing that sentiment.

Jerry Revich: So congratulations on the strong transformation here. Thank you, Jerry. It was the team effort. Can I ask in terms of the outlook for normalizing production rates now that logistics for the industry are catching up, you know, as we think about what the production cadence looks like in 2024. It feels like we should be looking for a heavier 2Q and 3Q as a mix of total compared to what we've seen over the past couple of years as, you know, we've given deliveries to customers at, you know, first quarter, fourth quarter that that I've been heavier.

Thanks, Sean.

Speaker 1: Our last question will come from Mick Dobre from Baird. Please go ahead, your line is open.

Our last question will come from Mig <unk> from Baird. Please go ahead. Your line is open.

Speaker 6: you squeeze me in. Thank you. Appreciate it and John .

Hey, you squeeze me in thank you I appreciate it and John all the best Congrats.

Speaker 6: I have a general question in a specific follow-up. Because the general one is, is you sort of look back at your tenure here, you obviously...

I guess I think the general question, Yeah, I have a general question in a specific follow up.

The general one is.

Look back at your tenure here.

We've done great things for this company is there anything that you sort of fuel.

I have to say that he left undone, but you wish you could've gotten too, but you just couldn't that Simon and the team you think need to follow up on.

Jerry Revich: Is that right? Can we talk about that? Obviously for areas you're guiding to sales that are bladish your rear and fourth quarter based on capital cadence. It sounds like first quarter is going to be down your year potentially to your customers and bigger shipments and 2Q and 3Q. I just want to run that by and see if that's consistent with how you're thinking about the normalization. Yeah, Jerry, I think that's a reasonable assumption is as we indicated, I think the business is all supply chain continues to improve.

Speaker 3: You know, we're talking about distance and team and the reality is when you sit where we sit and you've got a value of continuous improvement, you look at all the things, man, we made a lot of progress and it's hard not to acknowledge.

Thanks, Megan you know we were talking about this is with Dave and the reality is when you sit where we sit in and you've got a.

Our value of continuous improvement and you look at all of the things man, we've made a lot of progress and it's hard not to acknowledge the progress the portfolio of the businesses the improvements in the operating side and but but what are your values is continuous improvement you're never satisfied and so continuing.

Speaker 3: the progress, the portfolio of the businesses, the improvements and the operating side.

Continuing to drive that improvement area I will say our safety performance. We were on a good curve that's flattened out and so that's one thing I'll be encouraging deemed is driving improvement on and clearly with the balance sheet. The M&A activity has been slow here. This year, we've been on a couple of things that didn't work out.

Jerry Revich: We're going to return to more seasonal patterns. The underlying customer demand seasonal patterns didn't change what changed was the industry's ability to meet those patterns. So as supply chains improve, I think as we transition into 24, we're going to see a return to more normal seasonal patterns on bookings, backlogs, deliveries, customer patterns, when customers would like to take equipment. So I think that's a reasonable assumption is as we add into 2024, Jerry.

Speaker 6: you know, this year would be not a couple of things that didn't work out. And so, you know, would like to return to inorganic growth on the M&A side and, and, and, you know, hope not being a plan that we'll see that as we go forward. But again, we'll be disciplined. And that would be an area that, you know, I think there will be opportunity, I think there is opportunity for the future. And we've got the balance sheet and the castle to support that. And or share we purchase if, if, you know, taking, taking advantage is, as Julie said it, you know, at these valuations that this share price, it's a pretty, pretty high IRR return to our shareholders to be buying shares. Understood. Now, my follow-up is, is on MP and, and I'm struggling a little bit to make sense of kind of what's going on from the...

<unk>.

I would like to return to inorganic growth on the M&A side.

And hope not being a plant that we will see that as we go forward, but again, we'll be disciplined.

And that would be an area that I think there will be opportunities I think there is opportunity for the future and we've got the balance sheet and the cash flow to support that <unk> share repurchase.

Jerry Revich: Super. In Europe, AWP, you know, there's been as inflows based on product availability. So recently, you folks have been able to wrap up deliveries from Asia that have driven the strong growth. This year, you had mentioned demand might be a touch softer. Can you just talk about how you view us normalize levels of demand in Europe, AWP considering, you know, before this year, there's been more supply constraints for that part of your footprint?

Taken taken advantage as Julie said at these valuations at this share price, it's a pretty pretty high IRR return to our shareholders to be buying shares.

Speaker 6: you know, these valuations at this share price, it's a pretty high IRR return to our shareholders to be buying shares. The winners said, that my follow-up is on MP. And I'm struggling a little bit to make sense of kind of what's going on from a domain.

Understood.

And then my follow up.

As an M P.

I'm struggling a little bit to make sense of kind of what's going on from a demand standpoint because.

If we're looking at your orders in the quarter.

Jerry Revich: Right. So this year, supply constraints really started to alleviate in Europe, actually ahead of North America, Jerry, our sales and bookings in Europe are holding, you know, pretty constant in Q3. But again, just going back to that customer sentiment, you know, the customer sentiment is not nearly as buoyant. And so we're watching that. We'll see we're obviously there's some not as many large national accounts in Europe, but we're engaged in those counts. Conversations as are in North America. So, you know, more to come, but we thought it was worth calling out the sentiment in Europe. It's definitely not nearly as strong as it is in North America.

Probably the lowest level of order intake that we've seen in several years here.

When I listen to what your European competitors like Sandburg, or if Iraq, we're kind of thinking about that.

Processing side of their businesses.

They are kind of seeing softer orders in demand and infrastructure as well. So I guess, maybe an update for you as to sort of what's going on there and.

Do you expect demand actually rebound in 2024 or should we sort of prepare for discontinued gradual.

Order and backlog erosion. Thank you.

Jon Garrison: Yeah, I appreciate the transparency in the discussion. Thanks. Yeah. And Jerry, let me just say on that, and really as we look and it goes to our telematics data as well, UK and Germany, other markets are holding up, but UK and Germany we're seeing, you know, we're seeing that sentiment. Thank you.

Speaker 3: So again, backlog else they will trend to more normal levels as production levels increase. I think book to bill is going to return to more normal levels as our lead times gets the other thing. Our lead times are so extended in certain product categories.

So again backlog I think we will trend to more normal levels as production levels increase I think book to Bill is going to return to more normal levels as our lead times because the other thing our lead times are still extended in certain product categories.

Speaker 3: You know, again, our aggregate business is strong. I mentioned the sentiment in Europe . Concrete is strong in the US. I called out folks.

Again, our aggregates business is strong.

Mick Dobre: Our last question will come from Mick Dobre from Baird.

I mentioned the assignment.

In Europe concrete has been as strong in the U S. I called out folks that scenario of potential softness environmental business, though was strong and it's offset that in our roofing business, we mentioned lifting softness in tower cranes, but real strengthen our front our business down in Australia. They are booked out for.

Mick Dobre: Please go ahead. Your line is open. Hey, you squeeze me in.

Mick Dobre: Thank you. Appreciate it. And John, all the best. Congrats. I guess I have a general question. Yeah, I have a general question in a specific follow up because the general one is, is you sort of look, look back at your, your tenure here. You've obviously done great things for this company. Is there anything that you sort of feel?

For the year. So overall, we're obviously very cognizant of whats going on global business global diversification the diversification within MP I think theres going to be some puts and takes as we as we head into 2024, and I would say probably the north American market remained.

Jon Garrison: I have to say that you left undone, but you wish you could have gotten to, but you just couldn't that Simon and the team you think need to follow up on. Thanks, Megan. You know, we're talking about this as a team and the reality is when, when you sit where we sit and you've got a, you know, a value of continuous improvement, you look at all the things, man, we made a lot of progress and it's hard not to acknowledge the progress.

Speaker 3: If they probably do the North American market, you know, remain strong, given the customer sentiment on this side of the fund, which is much stronger than Europe right now, especially in the UK and Germany. All right, thank you, good luck. Thanks, Meg. We have no further questions. I'd like to turn the call back over to John Garrison for closing remarks. Thank you, operator. It has been a pleasure and I appreciate all of the kind comments that the analysts had to interact with all of you in the investor community. You know, I look forward to speaking with you over the coming months and introducing Simon as we transition responsible.

Jon Garrison: The portfolio of the businesses, the improvements and the operating side. And, but, but when one of your values is continuous improvement, you're never satisfied. And so, you know, continuing to drive that improvement area, I will say our safety performance, we were on a good curve that's flattened out. And so that's one thing I'll be encouraging team to drive an improvement on. And clearly with the balance sheet, the M&A activity has been slow here, you know, this year we've been on a couple of things that didn't work out.

Strong given the given the customer sentiment on this side of the pond, which is which is much stronger than than Europe, right now, especially in the UK and Germany.

Speaker 15: Thank you very much.

Alright, Thank you and good luck.

Thanks Meg.

Speaker 1: We have no further questions. I'd like to turn a call back over to John Garrison for closing our marks.

We have no further questions I'd like to turn the call back over to John garrison for closing remarks.

Speaker 3: Thank you operator. It has been a pleasure and I appreciate all of the kind comments that the analyst had to interact with all of you in the investor community. You know, I look forward to speaking with you over the coming months and introducing Simon as we transition responsibility over the coming months. If you have any additional questions, please don't hesitate to follow up with Julie, John or Parrotosh. And again, as always, thank you for your interest in Taracks. Operator, you can disconnect the call.

Thank you operator, it has been a pleasure and I appreciate the kind comments at the analysts had to interact with all of you in the Investor community I look forward to speaking with you over the coming months and introducing Simon as we transition responsibility over the coming months. If you have any additional questions. Please don't hesitate to follow up with <unk>.

Jon Garrison: And so, you know, would like to return to inorganic growth on the M&A side and hope not being a plan that we'll see that as we go forward. But again, we'll be disciplined. And that would be an area that, you know, I think there will be opportunity. I think there is opportunity for the future and we've got the balance sheet and the castle to support that. And, or share, we purchase if, if, you know, taking, taking advantage as Julie said it, you know, these valuations that this share price, it's a pretty, pretty high IRR return to our shareholders to be buying shares.

Julie John or <unk> and again as always thank you for your interest in Terex operator, you can disconnect the call.

Speaker 1: This concludes today's conference call. Thank you for your participation. You may not disconnect.

This concludes today's conference call. Thank you for your participation you may now disconnect.

Okay.

Jon Garrison: Understood. Then my follow-up is on MP, and I'm struggling a little bit to make sense of kind of what's going on from a demand standpoint, because, you know, if we're looking at your orders in the quarter, probably the lowest level of order intake that we've seen in, you know, several years here, and when I listen to what your European competitors like Sandvik or Epirot were kind of saying about the processing side of their businesses, they're kind of seeing softer orders and demand and infrastructure as well, so I guess maybe an update for you is to sort of what's going on there, and do you expect demand to actually rebound in 2024, or should we sort of prepare for this continue gradual order and backlog erosion?

Jon Garrison: Thank you. So, again, backlog, I'll think we'll trend to more normal levels as production levels increase. I think book to bill is going to return to more normal levels as our lead times gets the other thing our lead times are so extended in certain product categories. You know, again, our aggregate businesses is strong. I mentioned the sentiment in Europe concrete is strong in the US. I called out folks that's an area of potential softness environmental business though is strong, and it's it's offset that in our lifting business.

Jon Garrison: We mentioned lifting softness and tower cranes but real strength in our front of business down in Australia, they're booked out for, you know, for the year. So, you know, overall, you know, we're obviously very cognizant of what's going on global business, global diversification, the diversification within MP. I think there's going to be some puts and takes as we as we head into 2024. And I would say probably the North American market, you know, remains strong given the given the customer sentiment on this side of the fund, which is, you know, which is much stronger than than Europe right now, especially in the UK and Germany.

Mick Dobre: All right. Thank you. Good luck. Thanks, Meg.

Unknown Executive: We have no further questions.

Jon Garrison: I'd like to turn a call back over to John Garrison for closing remarks. Thank you operator. It has been a pleasure. I appreciate all the kind comments that the analysts had to interact with all of you in the investor community. You know, I look forward to speaking with you over the coming months and introducing Simon as we transition responsibility over the coming months. If you have any additional questions, please don't hesitate to follow up with Julie, John or peritosh. And again, as always, thank you for your interest in tariffs operator.

Unknown Executive: You can disconnect the call. This concludes today's conference call. Thank you for your participation.

Unknown Executive: You may not disconnect.