Q2 2024 Terex Corp Earnings Call

Question and answer session will follow the formal presentation.

Speaker Change: As a reminder, this conference is being recorded it is now my pleasure to introduce your host John Patterson, Vice President and Treasurer. Please go ahead.

Unknown Executive: A brief question-and-answer session will follow the formal presentation.

Unknown Executive: As a reminder, this conference has been recorded.

Jon Paterson: It is now my pleasure to introduce your host, John Paterson, Vice President and Treasurer. Please go ahead.

Speaker Change: Good morning, and welcome to the <unk> second quarter 2024 earnings Conference call a copy of the press release and presentation slides are posted on our Investor Relations website at investors <unk> Dot com.

Simon Meester: Good morning and welcome to the Terrick's second quarter, 2024 earnings conference call. A copy of the press release and presentation slides are posted on our investor relations website and investors dot terrick.com. In addition, the replay and fly presentation will be available on our website.

Speaker Change: The replay and slide presentation will be available on our website.

Speaker Change: We are joined by Simon Mr President and Chief Executive Officer, and Julian Beck, Senior Vice President and Chief Financial Officer, Theyre prepared remarks will be followed by Q&A.

Unknown Executive: We are joined by Simon Meester, President and Chief Executive Officer, and Julie Beck, Senior Vice President and Chief Financial Officer. Their prepared remarks will be followed by Q&A. Please turn to slide two of the presentation, which reflects our safe harbor statement. Today's conference call continues forward-looking statements, which are subject to risks that could cause actual results to be materially different. From those expressed or implied, these risks are described in greater detail in the earnings materials and in our reports filed at the FTC. In addition, we will be discussing non-GAAP financial information, which is useful in evaluating the company's operating performance.

Speaker Change: Please turn to slide two of the presentations, which reflects our safe Harbor statement.

Speaker Change: 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. These risks are described in greater detail in the earnings materials and in our reports filed with the SEC. In addition, we will be discussing non-GAAP financial information.

Speaker Change: Is useful in evaluating the company's operating performance.

Speaker Change: Reconciliations for these non-GAAP measures can be found in the conference call materials.

Speaker Change: Please turn to slide three and I'll turn it over to Simon.

Unknown Executive: Reconciliation for these non-GAAP measures can be found in the conference call materials.

Simon: Thanks, John and good morning.

Simon: I'd like to welcome everyone to our earnings call and appreciate your interest in Terex.

Simon Meester: Please turn to slide three, and I'll turn it over to Simon.

Simon: I first want to thank and recognize the <unk> team for their extraordinary commitment and dedication to our customers our company and our people.

Simon Meester: Thanks, John, and good morning. I would like to welcome everyone to our earnings call and appreciate your interest in Terrick's. I first want to thank and recognize the Terrick team for their extraordinary commitment and dedication to our customers, our company, and our people. We close another strong quarter, and I continue to be impressed by our team members and their passion to do us best for our stakeholders while keeping each other safe and healthy at the same time. Please turn to slide four. Over the past five years, we transformed Terrick into a strong, diversified, agile company which significantly improves financial performance.

Greetings and welcome to the Terex second quarter 2024 results conference call. At this time, all participants are in a listen-only mode.

Operator: 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. It is now my pleasure to introduce your host, Jon Paterson, Vice President and Treasurer.

Simon: We closed another strong quarter and I continue to be impressed by our team members and their passion to do what's best for our stakeholders, while keeping each other safe and healthy at the same time.

A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jon Paterson, Vice President and Treasurer. Please go ahead.

Simon: Please turn to slide four.

Simon: Over the past five years, we transform terex into a strong diversified agile company with significantly improved financial performance.

Jon Paterson: Good morning and welcome to the Terex second quarter 2024 earnings conference call. A copy of the press release and presentation slides is posted on our investor relations website at investors.terex.com. In addition, the replay and slide presentation will be available on our website. We are joined by Simon Meester, President and Chief Executive Officer, and Julie Beck, Senior Vice President and Chief Financial Officer.

Jon Paterson: Good morning and welcome to the Terex second quarter 2024 earnings conference call. A copy of the press release and presentation slides are posted on our investor relations website at investors.terex.com.

Simon: Hosting another strong quarter generating revenue of $1 4 billion and.

Simon: And delivering adjusted earnings per share of $2 16.

Simon Meester: We're posting another strong quarter, generating revenue of $1.4 billion and delivering adjusted earnings per share of $2.16. And we're on track to deliver a full year adjusted EPS in the range of $7.15 to $7.45. I am proud of our global team that continues to perform at a high level, achieving our near term objectives and implementing our long term strategy of execute, innovate and grow to make Terrick's an even stronger company in the future.

Jon Paterson: In addition, the replay and slide presentation will be available on our website.

Jon Paterson: Their prepared remarks will be followed by Q&A. Please turn to slide two of the presentation, which reflects our Safe Harbor Statement. Today's conference call contains four forward-looking statements, which are subject to risks that could cause actual results to be materially different from those expressed or implied. These risks are described in greater detail in the earnings materials and in our reports filed at the FTC. In addition, we will be discussing non-GAAP financial information, which is useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures can be found in the conference call materials. Please turn to slide three, and I'll turn it over to Simon.

Simon: And we're on track to deliver our full year adjusted EPS in the range of $7 15.

Speaker Change: We are joined by Simon Meester, President and Chief Executive Officer, and Julie Beck, Senior Vice President and Chief Financial Officer. Their prepared remarks will be followed by Q&A. Please turn to slide 2 of the presentations, which reflects our Safe Harbor Statement.

Simon: To $7 45.

Simon: I am proud of our global team that continues to perform at a high level, achieving our near term objectives and implementing our long term strategy of execute innovate and grow to make tariffs an even stronger company in the future.

Simon: Turning to slide five we are seeing a mixed set of global economic variables playing out on what we believe is still a very solid long term macro backdrop for terex.

Simon Meester: Turning to slide five, we're seeing a mixed set of global economic variables playing out on what we believe is still a very solid long-term macro backdrop for Terrick's. We like the resiliency of the US economy; GDP continues to outperform expectations, and inflation continues to receive, including a monthly decline in June. Construction spending remains high, and certain regional and local soft spots are more than offset by the ramp up of mega projects. Our US rental customers are highly disciplined capital managers, and as the operating environment normalizes, we are seeing them return to more customary ordering patterns.

Jon Paterson: In addition, we will be discussing non-GAAP financial information, which is useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures can be found in the conference call materials.

Simon: We like the resiliency of the U S economy, GDP continues to outperform expectations and inflation continues to recede.

Simon: Including a monthly decline in June.

Simon A. Meester: Thanks, John, and good morning. I would like to welcome everyone to our earnings call and appreciate your interest in Terex. I first want to thank and recognize the Terex team for their extraordinary commitment and dedication to our customers, our company, and our people. We closed another strong quarter, and I continue to be impressed by our team members and their passion to do what's best for our stakeholders while keeping each other safe and healthy at the same time. Please turn to slide four.

Jon Paterson: Please turn to slide 3, and I'll turn it over to Simon.

Simon: Construction spending remains high in certain regional and local soft spots are more than offset by the ramp up of Mega projects.

Simon A. Meester: Thanks, John , and good morning. I would like to welcome everyone to our earnings call and appreciate your interest in Terex.

Simon: Our U S rental customers, our highly disciplined capital managers and as the operating environment Normalizes, we are seeing them return to more customary ordering patterns.

Speaker Change: NMC many of our dealers are rebalancing their inventory as more of their customers are ramping machines, while the interest rate outlook remains uncertain and more predictable and shorter lead times are allowing more precise inventory management.

Simon: We closed another strong quarter, and I continue to be impressed by our team members and their passion to do what's best for our stakeholders while keeping each other safe and healthy at the same time.

Simon Meester: In MP, many of our dealers are rebalancing their inventory as more of their customers are renting machines, while the interest rate outlook remains uncertain, and more predictable and shorter lead times are allowing more precise inventory management. Overall, we expect demand in the US market to remain robust. The European economic situation is less clear, with conflicting indications that said, I like our market position across the EU, which was further enhanced by the recent anti-dumping decision. We expect to outperform the market as the macro situation unfolds. We also remain encouraged to see emerging markets such as India, Southeast Asia, the Middle East, and Latin America increasingly adopt our product.

Simon A. Meester: Over the past five years, we transformed Terex into a strong, diversified, agile company with significantly improved financial performance. We're posting another strong quarter, generating revenue of $1.4 billion and delivering adjusted earnings per share of $2.16. And we're on track to deliver a full year adjusted EPS in the range of $7.15 to $7.45.

Simon: Please turn to slide four. Over the past five years, we transformed Terex into a strong, diversified, agile company which significantly improves financial performance.

Speaker Change: Overall, we expect demand in the U S market to remain robust.

Simon: The European economic situation is less clear with conflicting indications that said I like our market position across the EU, which was further enhanced by the recent anti dumping decision.

Simon: We're posting another strong quarter, generating revenue of $1.4 billion and delivering adjusted earnings per share of $2.16.

Simon: We expect to outperform the market as the macro situation unfolds.

Simon: And we're on track to deliver a full year adjusted EPS in the range of $7.15 to $7.45.

Simon: We also remain encouraged to see emerging markets, such as India Southeast Asia, The Middle East and Latin America increasingly adopt our products.

Simon A. Meester: I am proud of our global team that continues to perform at a high level, achieving our near-term objectives and implementing our long-term strategy of execution, innovation, and growth to make Terex an even stronger company in the future. Turning to slide five, we're seeing a mixed set of global economic variables playing out on what we believe is still a very solid long-term macro backdrop for Terex. We like the resilience of the US economy.

Tariq's: I am proud of our global team that continues to perform at a high level, achieving our near-term objectives and implementing our long-term strategy of execute, innovate, and grow to make Terex an even stronger company in the future.

Simon: Please turn to slide six.

Simon: We believe <unk> is poised for consistent sustainable growth long term opportunities driven by Megatrends and continue to be bullish on our long term outlook.

Simon Meester: Please turn to slide six. We believe Terex is poised for consistent sustainable growth, long-term opportunities driven by mega trends and continues to be bullish on our long-term outlook. This is being driven by strong market dynamics in the US, such as ensuring technology advancements and federal investments, including the Infrastructure Investment and Jobs Act, CHIPS Act, and Inflation Reduction Act. This legislative environment is driving record levels of mega projects and data centers, EV and battery manufacturing plants, semiconductor plants, and others, with more projects expected to come online from 2025 to 2027. We anticipate increased activity from infrastructure investments from roads and bridges to airports, railways, and the power grid.

Simon: This is being driven by strong market dynamics in the U S such as on shoring technology advancements and federal investments, including the infrastructure investment and jobs Act Chips Act and inflation reduction Act.

Speaker Change: Turning to slide 5, we're seeing a mixed set of global economic variables playing out on what we believe is still a very solid long-term macro backdrop for Terex.

Simon A. Meester: GDP continues to outperform expectations, inflation continues to recede, including a monthly decline in June, construction spending remains high, and certain regional and local soft spots are more than offset by the ramp-up of mega projects.

Speaker Change: We like the resiliency of the U.S. economy, GDP continues to outperform expectations, and inflation continues to recede, including a monthly decline in June .

Simon: This legislative environment is driving record levels of Mega projects in data centers.

Simon: And battery manufacturing plants semiconductor plants, and others with more projects expected to come online from 2025 to 2027.

Speaker Change: Construction spending remains high, and certain regional and local soft spots are more than offset by the ramp-up of megaprojects.

Simon A. Meester: Our U.S. rental customers are highly disciplined capital managers, and as the operating environment normalizes, we are seeing them return to more customary ordering patterns. In MP, many of our dealers are rebalancing their inventory as more of their customers are renting machines, while the interest rate outlook remains uncertain, and more predictable and shorter lead times are allowing more precise inventory management. Overall, we expect demand in the US market to remain robust. However, the European economic situation is less clear, with conflicting indications.

Simon: We anticipate increased activity from infrastructure investments from roads and bridges, two airports railways and the power grid.

Speaker Change: Our U.S. rental customers are highly disciplined capital managers, and as the operating environment normalizes, we are seeing them return to more customary ordering patterns.

Simon: We expect to continue driving growth on top of our current baseline through innovation, while continuing to optimize our business operations.

Speaker Change: In MP, many of our dealers are rebalancing their inventory as more of their customers are renting machines, while the interest rate outlook remains uncertain, and more predictable and shorter lead times are allowing more precise inventory management.

Simon Meester: We expect to continue driving growth on top of our current baseline through innovation, but continuing to optimize our business operations.

Simon: Please turn to slide seven.

Simon: Our execute innovate and grow strategy underpins, our strong financial performance and positions us well for accelerated growth.

Simon Meester: Please turn to slide seven. Our executes innovate and grow strategy underpins our strong financial performance and positions us for accelerated growth. We have a very strong portfolio of businesses, businesses that are leaders in their respective markets. My predecessor did a great job leading our effort to clean up the portfolio, so we are in a strong position when you look at the fundamental makeup of Terex. Now, later on, the work that we have done in the execute killer of our strategy focused around implementing our Terex operating system, principles like ensuring alignment of manufacturing and sales plants and reducing fixed costs, helps make our financial performance more consistent and predictable.

Speaker Change: Overall, we expect demand in the U.S. market to remain robust.

Simon: We have a very strong portfolio of businesses.

Simon A. Meester: That said, I like our market position across the EU, which was further enhanced by the recent anti-dumping decision. We expect to outperform the market as the macro situation unfolds. We also remain encouraged to see emerging markets such as India, Southeast Asia, the Middle East, and Latin America increasingly adopt our product. Please turn to slide 6.

Speaker Change: The European economic situation is less clear, with conflicting indications. That said, I like our market position across the EU, which was further enhanced by the recent anti-dumping decision.

Simon: Businesses that are leaders in their respective markets.

Speaker Change: My predecessor did a great job, leading our effort to clean up the portfolio. So we are in a strong position. When you look at the fundamental makeup of terex.

Speaker Change: We expect to outperform the market as the macro situation unfolds.

Speaker Change: Now later on the work that we've done in the execute pillar of our strategy focused around implementing our terex operating system principles like ensuring alignment of manufacturing and sales plans and reducing fixed costs.

Speaker Change: We also remain encouraged to see emerging markets such as India, Southeast Asia, the Middle East, and Latin America increasingly adopt our products.

Simon A. Meester: We believe Terex is poised for consistent, sustainable growth and long-term opportunities driven by megatrends, and we continue to be bullish on our long-term outlook. This is being driven by strong market dynamics in the U.S., such as onshoring, technology advancements, and federal investments, including the Infrastructure Investment and Jobs Act, CHIPS Act, and Inflation Reduction Act. This legislative environment is driving record levels of megaprojects and data centers, EV and battery manufacturing plants, semiconductor plants, and others, with more projects expected to come online from 2025 to 2027.

Speaker Change: Please turn to slide 6.

Speaker Change: We believe Terex is poised for consistent, sustainable growth, long-term opportunities driven by megatrends, and continue to be bullish on our long-term outlook.

Simon: Let's make our financial performance more consistent and predictable.

Simon: I am proud to say that we're on track to deliver more than $7 of earnings per share and more than $300 million in free cash flow for a second year in a row.

Speaker Change: This is being driven by strong market dynamics in the U.S. such as on-shoring, technology advancements, and federal investments, including the Infrastructure Investment and Jobs Act, CHIPS Act, and Inflation Reduction Act.

Simon Meester: I'm proud to say that we're on track to deliver more than $7 of earnings per year and more than $300 million in free cash flow for a second year in a row.

Simon: When it comes to innovation, we think about it in two broad ways first how do we leverage technology externally to deliver more value to our customers.

Simon Meester: When it comes to innovation, we think about it in two broad ways. First, how do we leverage technology externally to deliver more value to our customers? and customers. Over 20% of our sales are related to products that we have introduced in the past three years. This is something of which we are particularly proud. We have a very exciting new product development pipeline that will continue to bring new products to market and increases our customers' ROI. When our customers are more successful using our equipment, we will be more successful. Second, we're leveraging technology internally, making investments in robotics, automation, and digitizing work streams to make us more efficient and more flexible.

Speaker Change: This legislative environment is driving record levels of megaprojects in data centers, PV and battery manufacturing plants, semiconductor plants, and others, with more projects expected to come online from 2025 to 2027.

Simon: Over 20% of our sales are related to products that we've introduced in the past three years. This is something of which we are particularly proud.

Simon: We have a very exciting new product development pipeline that will continue to bring new products to market that increases our customers' ROI.

Simon A. Meester: We anticipate increased activity from infrastructure investments from roads and bridges to airports, railways, and the power grid. We expect to continue driving growth on top of our current baseline through innovation while continuing to optimize our business operations. Please turn to slide seven.

Simon: When our customers are more successful using our equipment, we will be more successful.

Simon: Second, we're leveraging technology internally, making investments in robotics automation digitizing work streams to make us more efficient and more flexible.

Speaker Change: We expect to continue driving growth on top of our current baseline through innovation while continuing to optimize our business operations.

Simon A. Meester: Our Execute, Innovate, and Grow strategy underpins our strong financial performance and positions us well for accelerated growth. We have a very strong portfolio of businesses, businesses that are leaders in their respective markets. My predecessor did a great job leading our effort to clean up the portfolio. So we are in a strong position when you look at the fundamental makeup of Terex.

Speaker Change: Please turn to slide 7.

Simon: Our roadmap to continuously make us more competitive and more resilient regardless of market dynamics.

Speaker Change: Our Execute, Innovate and Grow strategy underpins our strong financial performance and positions us well for accelerated growth.

Simon: And last but not least growth.

Simon Meester: Our roadmap to continuously make us more competitive and more resilient, regardless of market dynamics.

Simon: Over the past several years under the leadership of its president Kieran Hegarty MP has grown at a double digit CAGR and is now a $2 billion business with consistent strong financial performance.

Speaker Change: We have a very strong portfolio of businesses.

Speaker Change: Businesses that are leaders in their respective markets.

Simon Meester: And last but not least, growth. Over the past several years under the leadership of its president, Kieran Hegarty, MP has grown at a double digit CAGR and is now a $2 billion business with consistent strong financial performance. AWP is on track to generate about $3.2 billion in revenue this year. Bold businesses are now posting strong operating margins. And when looking at the market's fundamentals, are well positioned for long-term growth. Then, when you layer on the recently announced agreement to purchase Environmental Solutions Group or ESG, which further diversifies our portfolio and is accretive to our performance, we're truly transforming and growing the company.

Speaker Change: My predecessor did a great job leading our effort to clean up the portfolio, so we are in a strong position when you look at the fundamental makeup of Terex.

Simon A. Meester: Now, later on, the work that we have done in the execution pillar of our strategy, focused around implementing our Terex operating system, principles like ensuring alignment of manufacturing and sales plans and reducing fixed costs, helps make our financial performance more consistent and predictable. I'm proud to say that we're on track to deliver more than $7 in earnings per share and more than $300 million in free cash flow for a second year in a row. When it comes to innovation, we think about it in two broad ways.

Simon: AWP is on track to generate about $3 $2 billion in revenue this year.

Speaker Change: Now later on, the work that we have done in the execute pillar of our strategy focused around implementing our Terex operating system, principles like ensuring alignment of manufacturing and sales plans and reducing fixed costs.

Simon: Both businesses are now posting strong operating margins.

Simon: And when looking at the market fundamentals are well positioned for long term growth.

Simon: Then when you layer on the recently announced agreement to purchase environmental solutions group or ESG, which further diversifies our portfolio and is accretive to our performance, we're truly transforming and growing the company.

Speaker Change: Help make our financial performance more consistent and predictable. I'm proud to say that we're on track to deliver more than $7 of earnings per share and more than $300 million in free cash flow for a second year in a row.

Simon A. Meester: First, how do we leverage technology externally to deliver more value to our customers? Over 20% of our sales are related to products that we have introduced in the past three years. This is something of which we are particularly proud.

Simon: Please turn to slide eight.

Speaker Change: When it comes to innovation, we think about it in two broad ways. First, how do we leverage technology externally to deliver more value to our customers?

Speaker Change: <unk> here is Texas first fully electric minerals processing multi plant operation.

Simon Meester: Please turn to slide 8. Picture here is Charac's first fully electric minerals processing multi-planned operation. Our customer, a leader in sustainable building materials, road construction, and building products, was looking for a solution that met its output requirements and was eco conscious. Our design dramatically reduced emissions and visual consumption while improving output material shape and throughput rates. A great example of the tariff value proposition where we add tangible value in real-world applications.

Speaker Change: Customer a leader in sustainable building materials road construction and building products was looking for a solution that met its output requirements and was eco conscious.

Speaker Change: Over 20% of our sales are related to products that we have introduced in the past three years. This is something of which we are particularly proud.

Simon A. Meester: We have a very exciting new product development pipeline that will continue to bring new products to market that increase our customers' ROI. When our customers are more successful using our equipment, we will be more successful. Second, we're leveraging technology internally, making investments in robotics, automation, and digitizing workstreams to make us more efficient and more flexible, a roadmap to continuously make us more competitive and more resilient regardless of market dynamics. And last but not least, growth.

Speaker Change: We have a very exciting new product development pipeline that will continue to bring new products to market that increases our customers' ROI.

Simon: Our design dramatically reduced emissions and diesel consumption, while improving our group materials shape and throughput rates are great example of the terex value proposition, where we add tangible value in real world applications.

Speaker Change: When our customers are more successful using our equipment, we will be more successful.

Speaker Change: Second, we're leveraging technology internally, making investments in robotics, automation, digitizing work streams to make us more efficient and more flexible.

Simon: Slide nine the recently announced agreements to purchase ESG the largest in <unk> history accelerates long term shareholder value growth.

Simon Meester: Slide 9. The recently announced agreement to purchase ESG, the largest in tariff's history, accelerates long-term shareholder value growth. This acquisition checks all of our boxes. It adds a non-cyclical, financially creative, and market-leading business to the tariff portfolio with tangible synergies in the fast growing waste and recycling market. We're very excited about the transaction and feel privileged to soon welcome the ESG team to the Tariff's family. They have truly built a remarkable business.

Speaker Change: Our roadmap to continuously make us more competitive and more resilient, regardless of market dynamics.

Simon: This acquisition checks all of our boxes it as a non cyclical financially accretive and market leading business to <unk> portfolio with tangible synergies into fast growing waste and recycling markets.

Simon A. Meester: Over the past several years, under the leadership of its president, Kieran Hegarty, MP has grown at a double-digit rate and is now a $2 billion business with consistently strong financial performance. AWP is on track to generate about $3.2 billion in revenue this year. Both businesses are now posting strong operating margins, and when looking at the market fundamentals, they are well positioned for long-term growth. Then, when you layer on the recently announced agreement to purchase Environmental Solutions Group, or ESG, which further diversifies our portfolio and is accretive to our performance, we're truly transforming and growing the company. Please turn to slide 8.

Kieran Hegarty: And last but not least, growth. Over the past several years, under the leadership of its president, Kieran Hegarty, MP has grown at a double-digit kager and is now a $2 billion business with consistent, strong financial performance.

Speaker Change: We're very excited about the transaction and feel privileged to soon welcome to ESG team through the Terex family. They are truly built a remarkable business.

Speaker Change: AWP is on track to generate about 3.2 billion dollars in revenue this year. Bold businesses are now posting strong operating margins.

Speaker Change: And with that let me turn it over to Julie.

Julie: Thanks, Simon and good morning, everyone, let's look at our second quarter financial performance on Slide 10.

Julie Beck: And with that, let me turn it over to Julie. Thanks, Simon, and good morning, everyone. Let's look at our second quarter financial performance on slide 10. Before I dive into our results, I'd like to remind everyone that the second quarter of 2023 was a historically strong quarter, primarily due to sales growth and operational efficiencies executed this time last year. Our net sales were approximately $1.4 billion, a slight decrease of 1.5% year-over-year, with strengthened North America, offset by declines in the rest of the world. We experienced strengths in our AWP segment, with rental activities and equipment replacement product cycles remaining strong.

Speaker Change: And when looking at the market fundamentals, are well positioned for long-term growth.

Julie: Before I dive into our results I'd like to remind everyone that the second quarter of 2023 with a historically strong quarter, primarily due to sales growth and operational efficiencies executed this time last year.

Speaker Change: Then, when you layer on the recently announced agreement to purchase Environmental Solutions Group, or ESG, which further diversifies our portfolio and is accretive to our performance, we're truly transforming and growing the company.

Julie: Our net sales were approximately $1 $4 billion, a slight decrease of one 5% year over year with strength in North America offset by declines in the rest of the world.

Simon A. Meester: Pictured here is Terex's first fully electric minerals processing multi-plant operation. Our customer, a leader in sustainable building materials, road construction, and building products, was looking for a solution that met its output requirements and was eco-conscious, is designed to dramatically reduce emissions and diesel consumption while improving output material shape and throughput rate. A great example of the Terex value proposition, where we add tangible value in real world applications. Slide 9.

Speaker Change: Please turn to slide 8.

Julie: We experienced strength in our AWP segment with rental activity and equipment replacement product cycles remaining strong.

Speaker Change: Our customer, a leader in sustainable building materials, road construction, and building products, was looking for a solution that met its output requirements and was eco-conscious.

Julie: <unk> net sales were up nearly 7% year over year and 14% sequentially.

Julie: Our MP segment was impacted by continued softness in the European market.

Julie Beck: AWP net sales were up nearly 7% year over year and 14% sequentially. Our NP segment was impacted by continued softness in the European market. Growth's profit of 23.8% declined due to unfavorable product mix and anticipated manufacturing inefficiencies as we ramp up production in the Monterey facility. Our S-GNA expenses are comparable to prior year and approximately $2 million favorable to prior year when adjusted for the $2 million one-time gain related to the sale of our Oklahoma City facility last year and this year's $2 million severance investing charges. Corporate S-GNA is down $4 million from the prior year.

Speaker Change: Our design dramatically reduced emissions and diesel consumption while improving output material shape and throughput rates. A great example of the Terex value proposition, where we add tangible value in real-world applications.

Simon: Gross profit of 23, 8% decline due to unfavorable product mix and anticipated manufacturing inefficiencies as we ramp up production in the Monterrey facility.

Julie A. Beck: The recently announced agreement to purchase ESG, the largest in Terex's history, accelerates long-term shareholder value growth. This acquisition checks all of our boxes. It adds a non-cyclical, financially creative, and market-leading business to the Terex portfolio with tangible synergies in the fast-growing waste and recycling market. We're very excited about the transaction and feel privileged to soon welcome the ESG team to the Terex family. They have truly built a remarkable business. And with that, I will turn it over to Julie.

Simon: Our SG&A expenses are comparable to prior year and approximately $2 million favorable to prior year when adjusted for the $2 million, one time gain related to the sale of our Oklahoma City facility last year, and this year $2 million severance and that take charges.

Speaker Change: Slide 9. The recently announced agreement to purchase ESG, the largest in Terex's history, accelerates long-term shareholder value growth.

Simon: Corporate SG&A is down $4 million from the prior year.

Simon: Income from operations was $193 million with an operating margin of 14%.

Speaker Change: We're very excited about the transaction and feel privileged to soon welcome the ESG team to the Terex family. They have truly built a remarkable business.

Simon: Interest expense was relatively consistent with the previous year.

Julie Beck: Income from operations was $193 million with an operating margin of 14%. Interest expense was relatively consistent with the previous year, while other expense increased $2 million from the prior year, primarily due to deal related costs. The second quarter global effective tax rate was 19.2% compared to 16.7% in the second quarter of 2023 due to the reversal of the state tax valuation allowance in the second quarter of 2023. We reported second quarter GAAP EPS of $2.8 per share. We believe adding adjusted EPS to our disclosures provides investors with a better view of our operating performance. Adjusted EPS, which excludes non-recurring and unusual items, was $2.16 per share.

Simon: While other expense increased $2 million from the prior year, primarily due to deal related costs.

Julie A. Beck: Thanks, Simon, and good morning, everyone. Let's look at our second quarter financial performance on slide 10. Before I dive into our results, I'd like to remind everyone that the second quarter of 2023 was a historically strong quarter, primarily due to sales growth and operational efficiencies executed this time last year. Our net sales were approximately $1.4 billion, a slight decrease of 1.5% year over year, with strength in North America offset by declines in the rest of the world.

Speaker Change: And with that, let me turn it over to Julie.

Julie: Thanks, Simon, and good morning, everyone. Let's look at our second quarter financial performance on slide 10.

Simon: The second quarter global effective tax rate was 19, 2% compared to 16, 7% in the second quarter of 2023 due to the reversal of a state tax valuation allowance in the second quarter of 2023.

Simon: We reported second quarter, GAAP EPS of $2 eight per share.

Julie: Our net sales were approximately $1.4 billion, a slight decrease of 1.5% year over year, with strength in North America offset by declines in the rest of the world.

Simon: We believe adding adjusted EPS to our disclosures provides investors with a better view of our operating performance.

Julie A. Beck: We experienced strength in our AWP segment with rental activity and equipment replacement product cycles remaining strong. AWP net sales were up nearly 7% year over year and 14% sequentially. Our MP segment was impacted by continued softness in the European market.

Simon: Adjusted EPS, which excludes nonrecurring and unusual items was $2 16 per share.

Simon: Free cash flow for the second quarter was $42 million.

Speaker Change: AWP net sales were up nearly 7% year-over-year and 14% sequentially.

Simon: Second quarter of 2023 free cash flow included the onetime proceeds on the sale of our Oklahoma City facility.

Speaker Change: Our MP segment was impacted by continued softness in the European market.

Julie A. Beck: Gross profit of 23.8% declined due to an unfavorable product mix and anticipated manufacturing inefficiencies as we ramp up production in the Monterey facility. Our SG&A expenses are comparable to the prior year and approximately $2 million favorable to the prior year when adjusted for the $2 million one-time gain related to the sale of our Oklahoma City facility last year and this year's $2 million severance and vesting charges. Corporate SG&A was down $4 million from the prior year.

Julie Beck: Free cash flow for the second quarter was $42 million. The second quarter of 2023 free cash flow included the one-time proceeds on the sale of our Oklahoma City facility.

Simon: Turning to bookings and backlog on slide 11, the quarter played out as expected.

Speaker Change: Gross profit of 23.8% declined due to unfavorable product mix and anticipated manufacturing inefficiencies as we ramp up production in the Monterey facility.

Simon: Our current backlog at $2 $4 billion is approximately two times our historical norms.

Julie Beck: Turning to bookings and backlog on flight 11, the quarter played out as expected. Our current backlog at $2.4 billion is approximately two times our historical norms. We expect our bookings and backlog to continue to transition to normal patterns as lead-time stabilized, including AWP customers returning to customary seasonality with bookings highest in the first and fourth quarters. Our AWP segment backlog is approximately 2.4 times normal Q2 levels. Our MP backlog is also slightly higher than pre-pandemic levels. Our perspective normalized backlog for MPs hovers around $400 to $500 million.

Simon: We expect our bookings and backlog to continue to transition the normal patterns as lead times stabilize including AWP customers returning to customary seasonality with bookings highest in the first and fourth quarters.

Speaker Change: and this year's $2 million severance and vesting charges.

Simon: Our AWP segment backlog is approximately two four times normal Q2 levels.

Julie A. Beck: Income from operations was $193 million with an operating margin of 14%. Interest expense was relatively consistent with the previous year, while other expense increased $2 million from the prior year, primarily due to deal-related costs. The second quarter global effective tax rate was 19.2% compared to 16.7% in the second quarter of 2023 due to the reversal of a state tax valuation allowance in the second quarter of 2023.

Speaker Change: Corporate SG&A is down $4 million from the prior year.

Speaker Change: Income from operations was $193 million, with an operating margin of 14%. Interest expense was relatively consistent with the previous year, while other expense increased to $2 million from the prior year, primarily due to deal-related costs.

Simon: Our MP backlog is also slightly higher than pre pandemic levels.

Simon: For perspective normalized backlog for MP hovers around $400 million to $500 million.

Simon: Let's take a look at our segment results. Please turn to slide 12.

Speaker Change: The second quarter global effective tax rate was 19.2% compared to 16.7% in the second quarter of 2023 due to the reversal of the state tax valuation allowance in the second quarter of 2023.

Simon: Over the past few years Mp's operational excellence delivered higher top line growth and double digit margins in the mid teens.

Julie Beck: Let's take a look at our segment results. Please turn to slide 12. Over the past few years, MPs operational excellence delivered higher top line growth and double digit margins in the mid-team. For the second quarter, MP continue to demonstrate operational excellence by performing well in a dynamic market with sales of $499 million. Sales were impacted by market pressures in our German-based Hooks material handling business and dealer inventory rebalancing in our aggregate business, and he reported operating profit of $77 million with strong OP margins of 15.4%. The change in operating profit would do the reduced volume and unfavorable product mix partially upset our expense discipline.

Julie A. Beck: We reported second quarter gap EPS of $2.08 per share. We believe adding adjusted EPS to our disclosures provides investors with a better view of our operating performance. Adjusted EPS, which excludes non-recurring and unusual items, was $2.16 per share.

Simon: For the second quarter MP continues to demonstrate operational excellence I performing well in a dynamic market with sales of $499 million.

Speaker Change: We reported second quarter GAAP EPS of $2.08 per share.

Speaker Change: We believe adding adjusted EPS to our disclosures provides investors with a better view of our operating performance.

Simon: Sales were impacted by market pressures in our German based fuchs material handling business and dealer inventory rebalancing in our aggregates business.

Speaker Change: Adjusted EPS, which excludes non-recurring and unusual items, was $2.16 per share.

Julie A. Beck: Free cash flow for the second quarter of 2023 was $42 million. The second quarter of 2023 free cash flow included the one-time proceeds on the sale of our Oklahoma City facility. Turning to bookings and backlog, on slide 11, the quarter played out as expected. Our current backlog, at $2.4 billion, is approximately two times our historical norm. We expect our bookings and backlog to continue to transition to normal patterns as lead times stabilize, including AWP customers returning to customary seasonality with bookings highest in the first and fourth quarters. Our AWP segment backlog is approximately 2.4 times normal Q2 levels. Our MP backlog is also slightly higher than pre-pandemic levels.

Simon: <unk> reported operating profit of $77 million with strong <unk> margins of 15, 4%.

Speaker Change: Free cash flow for the second quarter was $42 million. The second quarter of 2023 free cash flow included the one-time proceeds on the sale of our Oklahoma City facility.

Simon: The change in operating profit was due to reduced volume and unfavorable product mix, partially offset by expense discipline.

Speaker Change: Turning to bookings and backlog on slide 11, the quarter played out as expected.

Simon: MP is taking action to protect our strong margin, including reduced work schedules factory layout and further cost reduction activities.

Speaker Change: Our current backlog at $2.4 billion is approximately two times our historical norms.

Julie Beck: MP is taking action to protect our strong margins, including reduced work schedules, factory layoffs, and further cost reduction activities. MP ended the quarter with backlog of $558 million.

Simon: <unk> ended the quarter with backlog of $558 million.

Speaker Change: We expect our bookings and backlogs to continue to transition to normal patterns as lead times stabilize, including AWP customers returning to customary seasonality with bookings highest in the first and fourth quarters.

Simon: Please turn to slide 13, which details our AWP performance.

Simon: We delivered solid performance in the second quarter with sales of $882 million up nearly 7% from last year, primarily reflecting higher demand in North America.

Julie Beck: Please turn the slide 13, which details our AWP performance. We delivered solid performance in the second quarter with sales of $882 million, up nearly 7% from last year, primarily reflecting higher demand in North America. In fact, AWP is up 9.5% in sales on a year-to-date basis. AWP reported second quarter operating profit of $134 million. Operating margins were consistent with prior year when adjusting for monitoring, manufacturing, startup inefficiencies, and a one-time gain recorded in 2023 for the sale of our Oklahoma City facility. AWP backlog is at $1.8 billion, approximately 2.4 times higher than normal levels for the second quarter.

Speaker Change: Our AWP segment backlog is approximately 2.4 times normal Q2 levels.

Simon: In fact, AWP is up nine 5% in sales on a year to date basis.

Julie A. Beck: For perspective, normalized backlog for MP hovers around $400 to $500 million. Now, let's take a look at our segment results. Please turn to slide 12.

Speaker Change: Our MP backlog is also slightly higher than pre-pandemic levels. For perspective, normalized backlog for MP hovers around $400 to $500 million.

Simon: AWP reported second quarter operating profit of $134 million.

Simon: Operating margins are consistent with prior year, when adjusting for Monterrey manufacturing startup inefficiencies and a onetime gain recorded in 2023 for the sale of our Oklahoma City facility.

Speaker Change: Let's take a look at our segment results. Please turn to slide 12.

Speaker Change: Over the past few years, MP's operational excellence delivered higher top-line growth and double-digit margins in the mid-team.

Julie A. Beck: Over the past few years, MP's operational excellence has delivered higher top-line growth and double-digit margins in the mid-team. For the second quarter, MP continued to demonstrate operational excellence by performing well in a dynamic market with sales of $499 million. However, sales were impacted by market pressures in our German-based Fuchs material handling business and Dealer Inventory Rebalancing in our Aggregate Business.

Simon: AWP backlog is at $1 $8 billion.

Speaker Change: For the second quarter, NP continued to demonstrate operational excellence by performing well in a dynamic market with sales of $499 million.

Simon: Approximately two four times higher than normal levels for the second quarter.

Simon: Please turn to slide 14.

Simon: We have a very healthy balance sheet that enables us to continue to grow and invest through the cycle.

Speaker Change: Sales were impacted by market pressures in our German-based Fuchs material handling business and dealer inventory rebalancing in our aggregate business.

Julie Beck: Please turn the slide 14. We have a very healthy balance sheet that enables us to continue to grow and invest through the cycle. Parish has ample liquidity with net leverage of 0.5 times. We are reaffirming our 2024 free cash flow outlook range of $325 to $375 million. Our strong balance sheet and expected free cash flow generation continues to provide significant capacity to fuel our strategic growth initiatives, including our agreement to purchase ESG, as well as return capital to shareholders. As we close on the ESG transaction, we anticipate a net debt to even leverage of 2.2 times, which is below our 2.5 times target through the cycle.

Julie A. Beck: MP reported an operating profit of $77 million with strong OP margins of 15.4%. The change in operating profit was due to reduced volume and unfavorable product mix partially offset by expense discipline. MP is taking action to protect our strong margins, including reduced work schedules, factory layoffs, and further cost reduction activities. MP ended the quarter with a backlog of $558 million. Please turn to slide 13, which details our AWP performance. We delivered solid performance in the second quarter with sales of $882 million, up nearly 7% from last year, primarily reflecting higher demand in North America.

Simon: Terex has ample liquidity with net leverage of <unk> five times.

Speaker Change: MP reported operating profit of $77 million, with strong OP margins of 15.4%.

Simon: We are reaffirming our 2020 for free cash flow outlook range of $325 million to $375 million, our strong balance sheet and expected free cash flow generation.

Speaker Change: The change in operating profit was due to reduced volume and unfavorable product mix partially offset by expense discipline.

Simon: <unk> provides significant capacity to fuel our strategic growth initiatives.

Speaker Change: MP is taking action to protect our strong margins, including reduced work schedules, factory layoffs, and further cost reduction activities.

Simon: Including our agreement to purchase ESG as well as return capital to shareholders.

Speaker Change: As we close on the ESG transaction, we anticipate our net debt to EBITDA leverage of two two times, which is below our two five times target through the cycle and we will utilize our enhanced free cash flow position to further deleverage.

Speaker Change: MP ended the quarter with backlog of $558 million.

Speaker Change: Please turn to slide 13, which details our AWP performance.

Speaker Change: We delivered solid performance in the second quarter with sales of $882 million, up nearly 7% from last year, primarily reflecting higher demand in North America.

Speaker Change: We're planning for capital expenditures this year of approximately $145 million or about two 8% of sales at the expected midpoint with the largest investment related to our Monterey facility.

Julie Beck: And we will utilize our enhanced free cash flow position to further leverage. We are planning for capital expenditures this year of approximately $145 million or about 2.8% of sales at the expected midpoint, with the largest investment related to our Monterey facility. We would expect catbacks to take a step down next year and to be a benefit to free cash flow conversion in 2025. Through July 29th, 2024, Derek says returns $50 million to shareholders to share repurchases and dividends. Incidentally Offsetting Equity Compensation Delusion. We have approximately $105 million remaining under our share of repurchase authorization. We reported a return on invested capital of 25.9 percent.

Julie A. Beck: In fact, AWP is up 9.5% in sales on a year-to-date basis. AWP reported a second quarter operating profit of $134 million. Operating margins were consistent with prior year when adjusting for Monterey manufacturing startup inefficiencies and a one-time gain recorded in 2023 for the sale of our Oklahoma City facility. AWP backlog is at $1.8 billion, approximately 2.4 times higher than normal levels for the second quarter. Please turn to slide 14.

Speaker Change: In fact, AWP is up 9.5% in sales on a year-to-date basis.

Speaker Change: We would expect Capex to take a step down next year and to be a benefit to free cash flow conversion in 2025.

Speaker Change: AWP reported second quarter operating profit of $134 million.

Speaker Change: Operating margins were consistent with prior year when adjusting for Monterey Manufacturing startup inefficiencies and a one-time gain recorded in 2023 for the sale of our Oklahoma City facility.

Speaker Change: Through July 29, 2020 for Terex has returned $50 million to shareholders through share repurchases and dividends.

Speaker Change: Essentially offsetting equity compensation dilution.

Speaker Change: AWP backlog is at $1.8 billion, approximately 2.4 times higher than normal levels for the second quarter.

Simon: We have approximately $105 million remaining under our share repurchase authorization.

Simon: We reported a return on invested capital of 25, 9% tariffs remains in a very strong financial position to continue investing in our business and executing our strategic initiatives, while returning capital to shareholders.

Julie A. Beck: We have a very healthy balance sheet that enables us to continue to grow and invest through the cycle, and has ample liquidity with net leverage of 0.5 times. We are reaffirming our 2024 free cash flow outlook range of $325 to $375 million. Our strong balance sheet and expected free cash flow generation continue to provide significant capacity to fuel our strategic growth initiatives, including our agreement to purchase ESG, as well as return capital to shareholders. As we close on the ESG transaction, we anticipate a net debt to EBITDA leverage of 2.2 times, which is below our two and a half times target through the cycle.

Speaker Change: Please turn to slide 14.

Speaker Change: We have a very healthy balance sheet that enables us to continue to grow and invest through the cycle.

Terex: Terex says ample liquidity with net leverage of 0.5 times.

Julie Beck: Terrorist remains in a very strong financial position to continue investing in our business and executing our strategic initiatives while returning capital to shareholders.

Speaker Change: Now I'll turn to slide 15, and our full year outlook.

Terex: We are reaffirming our 2024 free cash flow outlook range of $325 to $375 million.

Speaker Change: It is important to realize we are operating in a complex environment.

Julie Beck: Now turn to slide 15 and our full-year outlook. It is important to realize we are operating in a complex environment with many macroeconomic variables and geopolitical uncertainties, and results could change negatively or positively. With that said, this outlook represents our best estimate as of today. Our outlook does not incorporate any ESG activity. Our sales forecast range has been updated to $5.1 to $5.3 billion, with strengths in the AWP business helping to offset some of the weakness in our MP business. For terrorists overall, we continue to expect the first half sales to be slightly higher than the second half, with the third quarter sales higher than the fourth quarter as we return to more seasonal customer delivery patterns.

Simon: With many of the macroeconomic variables and geopolitical uncertainties and results could change negatively or positively.

Terex: Our Strong Balance Sheet and Expected Free Cash Flow Generation.

Terex: continues to provide significant capacity to fuel our strategic growth initiatives, including our agreement to purchase ESG as well as return capital to shareholders.

Simon: That said this outlook represents our best estimate as of today, our outlook does not incorporate any ESG activity.

Simon: Our sales forecast range has been updated to five 1% to $5 $3 billion.

Terex: As we close on the ESG transaction,

Speaker Change: We anticipate a net debt to EBITDA leverage of 2.2 times, which is below our 2.5 times target through the cycle, and we will utilize our enhanced free cash flow position to further deleverage.

Simon: With strength in the AWP business, helping to offset some of the weakness in our MP business.

Julie A. Beck: And we will utilize our enhanced free cash flow position to further de-leverage. We're planning for capital expenditures this year of approximately $145 million, or about 2.8% of sales at the expected midpoint, with the largest investment related to our Monterey facility. We would expect CapEx to take a step down next year and to be a benefit to free cash flow conversion in 2025. Through July 29, 2024, Terex has returned $50 million to shareholders through share repurchases and dividends, essentially offsetting equity compensation dilution.

Simon: For Terex overall, we continue to expect the first half sales to be slightly higher than the second half with the third quarter sales higher than the fourth quarter as we returned to more seasonal customer delivery patterns.

Speaker Change: We're planning for capital expenditures this year of approximately $145 million or about 2.8% of sales at the expected midpoint with the largest investment related to our Monterey facility.

Simon: We are pleased to increase our full year operating margin for Terex overall to a range of $12 nine to 13, 2% solidly above our full year 2023 performance.

Speaker Change: We would expect CapEx to take a step down next year and to be a benefit to free cash flow conversion in 2025.

Julie Beck: We are pleased to increase our full-year operating margins for Terex overall to a range of 12.9 to 13.2 percent, solidly above our full-year 2023 performance. We have lowered our corporate and other expenses to $18 million per quarter in the second half of the year. We expect interest and other expenses of $55 million in the full year. In addition, we are lowering our effective tax rate to 21 percent. Due to strong operational execution, cost-out activities, and prudent expense management, our outlook is an EPS range of $7.15 to $7.45 on an adjusted basis. This is the second year in a row we expect to deliver earnings per share over $7.

Simon: We have lowered our corporate and other expenses and $18 million per quarter in the second half of the year we.

Speaker Change: Through July 29, 2024, Terex has returned $50 million to shareholders through share repurchases and dividends, essentially offsetting equity compensation dilution.

Simon: We expect interest and other expenses of $55 million for the full year and.

Julie A. Beck: We have approximately $105 million remaining under our share repurchase authorization. Additionally, we reported a return on invested capital of 25.9%. Terex remains in a very strong financial position to continue investing in our business and executing our strategic initiatives while returning capital to shareholders. Now turn to slide 15 and our full year outlook. It is important to realize that we are operating in a complex environment, with many macroeconomic variables and geopolitical uncertainties, and results could change negatively or positively. With that said, this outlook represents our best estimate as of today. Our outlook does not incorporate any ESG activity.

Simon: In addition, we are lowering our effective tax rate to 21%.

Speaker Change: We have approximately $105 million remaining under our share repurchase authorization.

Simon: Due to strong operational execution cost out activities and prudent expense management, our outlook is an EPS range of $7 15 to.

Speaker Change: We reported a return on invested capital of 25.9 percent. Terex remains in a very strong financial position to continue investing in our business and executing our strategic initiatives while returning capital to shareholders.

Simon: The $7 45 on an adjusted basis. This is the second year in a row, we expect to deliver earnings per share over $7.

Speaker Change: Now turn to slide 15 and our full year outlook.

Simon: Let's review our segment outlook.

Simon: We expect <unk> sales to be $1 95 billion to 2.05 billion for the full year with margins in the range of $15 one to 15, 4%.

Speaker Change: It is important to realize we are operating in a complex environment.

Julie Beck: Let's review our segment outlook. We expect MP sales to be 1.95 billion to 2.05 billion for the full year, with margins in the range of 15.1 to 15.4 percent. Sales for the third and fourth quarters will be consistent with Q2 sales, while operating margins are expected to improve slightly from Q2 levels due to management actions taken. For AWP, we expect our 2024 sales range to be 3.15 billion to 3.25 billion dollars and operating margin in a range of 13.7 to 14 percent for the full year. We expect the second half sales to be lower than the first half, with the third quarter higher than the fourth quarter as we return to normal seasonal shipping patterns.

Speaker Change: With many macroeconomic variables and geopolitical uncertainties, M-results could change negatively or positively. With that said, this outlook represents our best estimate as of today. Our outlook does not incorporate any ESG activity.

Simon: Sales for the third and fourth quarters will be consistent with Q2 sales while operating margins are expected to improve slightly from Q2 levels due to management actions taken.

Julie A. Beck: Our sales forecast range has been updated to $5.1 to $5.3 billion with strength in the AWP business helping to offset some of the weakness in our MP business. For Terex overall, we continue to expect the first half sales to be slightly higher than the second half, with the third quarter sales higher than the fourth quarter as we return to more seasonal customer delivery patterns. We are pleased to increase our full year operating margin for Terex overall to a range of 12.9 to 13.2%, solidly above our full year 2023 performance.

Speaker Change: Our sales forecast range has been updated to $5.1 to $5.3 billion, with strength in the AWP business helping to offset some of the weakness in our MP business.

Simon: For AWP, we expect our 2024 sales range to be $3, one 5 billion to $3 billion to $5 billion and operating margin in a range of $13, 7% to 14% for the full year.

Speaker Change: For Terex overall, we continue to expect the first half sales to be slightly higher than the second half, with the third quarter sales higher than the fourth quarter, as we return to more seasonal customer delivery patterns.

Simon: We expect the second half sales to be lower than the first half with the third quarter higher than the fourth quarter as we returned to normal seasonal shipping patterns.

Speaker Change: We are pleased to increase our full-year operating margin for Terex overall to a range of 12.9% to 13.2%, solidly above our full-year 2023 performance.

Simon: We expect margins in the second half to be approximately 200 basis points higher than in 2023 as moderate inefficiencies abate and we realize the benefits of our new facility.

Julie A. Beck: We have lowered our corporate and other expenses to $18 million per quarter in the second half of the year. We expect interest and other expenses of $55 million for the full year. In addition, we are lowering our effective tax rate to 21%.

Julie Beck: We expect margins in the second half to be approximately 200 basis points higher than in 2023 as monitoring inefficiencies of eight, and we realize the benefits of our new facility. We are anticipating a full-year AWP incremental margin greater than 25 percent.

Speaker Change: We have lowered our corporate and other expenses to $18 million per quarter in the second half of the year. We expect interest and other expenses of $55 million for the full year.

Simon: We are anticipating a full year AWP incremental margin greater than 25%.

Simon: Now I will turn it back to Simon.

Simon: Thanks, Julie I will now turn to slide 16.

Julie A. Beck: Due to strong operational execution, cost-out activities, and prudent expense management, our outlook is an EPS range of $7.15 to $7.45 on an adjusted basis. This is the second year in a row we expect to deliver earnings per share over $7. Let's review our segment outlook. We expect MP sales to be between 1.95 billion and 2.05 billion for the full year, with margins in the range of 15.1 to 15.4. Sales for the third and fourth quarters will be consistent with Q2 sales, while operating margins are expected to improve slightly from Q2 levels due to management actions taken.

Speaker Change: In addition, we are lowering our effective tax rate to 21%.

Simon: <unk> is well positioned and we're excited about our long term future.

Simon Meester: Now I will turn it back to Simon. Thanks, Julie. I will now turn into slide 16. Polk Roll, Terex's well-positioned, and we're excited about our long-term future. Terex is a very different company than five years ago, level-owned ten years ago. We are a diversified leader in many different industrial segments. We're more agile and less vulnerable to cyclicality with a strong portfolio, strong operating system, and, last but not least, a highly engaged competitive team.

Speaker Change: New Strong Operational Execution, Crossout Activities,

Simon: <unk> is a very different company than five years ago, let alone 10 years ago.

Speaker Change: and Prudent Expense Management, our outlook is an EPS range of $7.15 to $7.45 on an adjusted basis. This is the second year in a row we expect to deliver earnings per share over $7.

Simon: We are diversified leader in many different industrial segments, we are more agile and less vulnerable to cyclicality with a strong portfolio strong operating system and last but not least a highly engaged competitive team.

Speaker Change: Let's review our segment outlook.

Speaker Change: I'm incredibly proud and feel blessed to have been given the trust to lead this company and I'm very excited about the years ahead and expect a lot more to come from Paris.

Speaker Change: We expect MP sales to be $1.95 billion to $2.05 billion for the full year, with margins in the range of 15.1 to 15.4 percent.

Simon Meester: I'm incredibly proud and feel blessed to have been given this trust to leave this company, and I'm very excited about the years ahead. Expect a lot more to come from Terex.

Speaker Change: And with that I would like to open it up for questions operator.

Speaker Change: Sales for the third and fourth quarters will be consistent with Q2 sales, while operating margins are expected to improve slightly from Q2 levels due to management actions taken.

Unknown Executive: And with that, I would like to open it up for questions. Operator?

Speaker Change: We will now begin the question and answer session. If you have dialed in and would like to ask a question. Please press star one on your telephone keypad to raise your hands and joined the queue. If you would like to withdraw your question simply press Star one again.

Julie A. Beck: For AWP, we expect our 2024 sales range to be $3.15 billion to $3.25 billion, an operating margin of 13.7 to 14% for the full year. We expect the second half of sales to be lower than the first half, with the third quarter higher than the fourth quarter, as we return to a normal seasonal shipping pattern. We expect margins in the second half to be approximately 200 basis points higher than in 2023 as monitoring inefficiencies abate and we realize the benefits of our new facility. We are anticipating a full year AWP incremental margin greater than 25%.

Speaker Change: For AWP, we expect our 2024 sales range to be $3.15 billion to $3.25 billion, an operating margin in a range of 13.7 to 14% for the full year.

Unknown Executive: Now begin the question and answer session.

Unknown Executive: If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hands and join the queue. If you would like to withdraw your question, simply press star one again.

Speaker Change: And if you are called upon to ask your question or listening via loud speaker on your device. Please pickup your handset and ensure that your phone is not on mute when asking your question question.

Speaker Change: We expect the second half sales to be lower than the first half, with the third quarter higher than the fourth quarter, as we return to normal seasonal shipping patterns.

Unknown Executive: If you're called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit your question to one and one follow-up.

Speaker Change: We do request for today's session that you. Please limit your question to one and one follow up.

Speaker Change: And once again for any questions or comments. Please press star one now.

Speaker Change: We expect margins in the second half to be approximately 200 basis points higher than in 2023 as monitoring inefficiencies abate and we realize the benefits of our new facility.

Speaker Change: First question will come from Stanley Elliott with Stifel.

Unknown Executive: And once again, for any questions or comments, please press star one now.

Stanley Elliott: Hey, good morning, everybody. Thank you for the question.

Simon: Okay.

Stanley Elliott: Your first question will come from Stanley Elliott with Stevele. Thank you. Good morning, everybody. Thank you for the question.

Speaker Change: We are anticipating a full year AWP incremental margin greater than 25%.

Stanley Elliott: Talk about I mean, with some of the near term softening youre seeing in Europe, and some of the general construction market.

Simon A. Meester: Now I will turn it back to Simon. Thanks, Julie.

Simon A. Meester: Thanks, Julie. I will now turn it to slide 16.

Stanley Elliott: How does that impact how you all are thinking about pricing really across the portfolio.

Speaker Change: Now I will turn it back to Simon.

Simon A. Meester: Overall, Terex is well positioned, and we're excited about our long-term future. Terex is a very different company than five years ago, let alone 10 years ago. We are a diversified leader in many different industrial segments. We're more agile and less vulnerable to cyclicality, with a strong portfolio, a strong operating system, and, last but not least, a highly engaged competitive team. I'm incredibly proud and feel blessed to have been given the trust to lead this company, and I'm very excited about the years ahead. Expect a lot more from Terex. And with that, I'd like to open it up to questions.

Simon Meester: Let's talk about some of the near-term softening you're seeing in Europe and some of the general construction markets. How does that impact how you all are thinking about pricing really across the portfolio with the context that the past couple of years have been so strong? Yeah, hey, good morning. Thanks for the question. So, yeah, I mean, we stick to our target of being price cost neutral. That's what we're aiming for. There's still very much cost inflation in the market. It's still coming down, but value that component still in showing signs of inflation like electronics and hydraulics, logistics, labor costs.

Simon: Thanks, Julie. I will now turn it to slide 16. Overall, Terex is well-positioned and we're excited about our long-term future.

Speaker Change: Well you know what the context of the past couple of years have been so strong.

Simon: <unk>.

Speaker Change: Yeah, Hey, good morning. Thanks for the question. So, yes, I mean, we stick to our target of being price cost neutral.

Simon: Terex is a very different company than five years ago, let alone ten years ago.

Simon: We are a diversified leader in many different industrial segments. We're more agile and less vulnerable to cyclicality, with a strong portfolio, strong operating system, and last but not least, a highly engaged competitive team.

Speaker Change: That's that's what we're aiming for there is still very much in our.

Speaker Change: Cost inflation.

Speaker Change: In the market steel is coming down but value add component stealing.

Simon: Showing signs of an inflation like electronics and hydraulics.

Simon: I'm incredibly proud and feel blessed to have been given the trust to lead this company and I'm very excited about the years ahead. Expect a lot more to come from Terex.

Speaker Change: Logistics labor costs.

Simon: So we're still in an inflationary environment and as such we're still striving for a price cost neutrality.

Simon: At this point in the journey.

Simon: And with that, I would like to open it up for questions. Operator?

Simon Meester: So we're still in an inflationary environment and such. We're still striving for price cost neutrality at this point of the journey. Great.

Simon: Great.

Speaker Change: In terms of the MP business.

Operator: We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via the loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Speaker Change: Is the softness exclusively Europe are you seeing anything in the Americas and then curious.

Speaker Change: We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again.

Stanley Elliott: In terms of the MP business, is the softness exclusively Europe? Are you seeing anything in the Americas? And I think curious, where do you think inventory in the channel is today? I understand there's a reluctance, I guess, for some to hold on to it.

Speaker Change: Where do you think inventory in the channel is today I understand there is a reluctance I guess for them for for some to hold onto it in a lot of these are kind of on a more of a rent to own.

Speaker Change: If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Speaker Change: In operation, but just curious kind of the health of the channel and then also kind of what Youre seeing in North America.

Simon Meester: In a lot of these are kind of on a more of a rent-to-own sort of an operation, but just curious kind of the health of the channel and then also kind of what you're seeing in North America. Yeah, a great question. We don't think the inventory is necessarily the issue here, and it's a little bit of a mixed bag in Europe. It's very much in demand driven. And what I mean by that is that it's just lower productivity because there's less, less projects. And we think that the inventory in general has been right sized for it.

Simon: Yeah.

Speaker Change: Great question.

Simon:

Speaker Change: We don't think the inventories necessarily.

Speaker Change: We do request for today's session that you please limit your question to one and one follow-up. Thank you. .

Operator: We do request for today's session that you please limit your questions to one and one follow-up. And once again, for any questions or comments, please press star 1 now. Your first question will come from Stanley Elliott, with CFO.

Simon: The issue here is and it's a little bit of a mixed bag in Europe, it's very much in demand driven and what I mean by that is this just lower productivity because there is less less projects.

Speaker Change: And once again, for any questions or comments, please press star 1 now. Your first question will come from Stanley Elliott with CFO .

Stanley Stoker Elliott: Hey, good morning, everybody. Thank you for the question. Can you guys talk about, I mean, with some of the near-term softening you're seeing in Europe and some of the general construction markets, how does that impact how you all are thinking about pricing, you know, really across the portfolio, with the context that the past couple years have been so strong? Yeah.

Stanley Stoker Elliott: Good morning, everybody. Thank you for the question. Can you guys talk about, I mean, with some of the near-term softening you're seeing in Europe and some of the general construction markets,

Simon: And we think that the inventory in general has been has been right sized for it in North America fluke or complicated there's still a lot of fleet productivity. We just see less rental conversions inventory again is not necessarily a problem do we think that most of the right sizing is being done.

Stanley Stoker Elliott: How does that impact how you all are thinking about pricing, you know, really across the portfolio? You know with the the context that the past couple years have been so strong

Simon Meester: In North America's list of more complicated, there's still a lot of fleet productivity. We just see less rental conversions. In this or again is not necessarily a problem. We think it's the most of the right sizing has been done. What's happening is that we sell especially in MP a lot through rent purchase contracts, and typically they converge within six months. Now customers are just holding on to their rental units for just a few more months to see what's going to happen with interest rates. So in North America it's mostly interest rates anxiety, if you will caution for what's going to happen with interest rates before they convert to from rent to purchase, but if we look at fleet utilization, still very high in North America, there's still a lot of work and our units are working in North America.

Simon A. Meester: Yeah, hey, good morning. Thanks for the question. So yeah, I mean, we stick to our target of being price cost neutral. That's what we're aiming for. There's still very much, you know, cost inflation in the market, steel's coming down, but value-added components are still showing signs of inflation, like electronics and hydraulics. Logistics, and labor costs. So we're still in an inflationary environment, and as such, we're still striving for price-cost neutrality.

Simon: But what's happening is is that we sell especially MMP along through rent to purchase contracts.

Speaker Change: Yeah, hey, good morning. Thanks for the question. So yeah, I mean, we stick to our target of being price cost neutral. That's what we're aiming for. There's still very much

Simon: Typically they converge, let's say within six months of metal customers are just holding on to their rental units for just a few more months to see what's going to happen with interest rates. So in North America, it's mostly interest rates anxiety. If you will a caution for what's going to happen with interest rates before.

Speaker Change: You know, cost inflation in the market. Steel's coming down, but value-add components still showing signs of inflation, like electronics and hydraulics.

Speaker Change: Logistics, labor costs. So we're still in an inflationary environment and as such we're still striving for price cost neutrality at this point in the journey.

Simon: Before they convert to.

Simon: From ready to prevent the purchase but if we look at fleet utilization still very high in North America, There's still a lot of work in our units are working in North America, that's kind of the mix story here.

Simon A. Meester: Great. And, you know, in terms of the NP business, is the softness exclusively in Europe? Are you seeing anything in the Americas? And, just curious, where do you think inventory is in the channel today? I understand there's a reluctance, I guess, for some to hold on to it. And a lot of these are kind of on a more of a rent to own, you know, sort of an operation. But just curious, kind of the health of the channel, and then also kind of what you're seeing in North America.

Speaker Change: Great. In terms of the NP business, is the softness exclusively Europe ? Are you seeing anything in the Americas? And then, curious, where do you think inventory in the channel is today? I understand there's a reluctance, I guess, for some to hold onto it, and a lot of these are kind of on more of a rent-to-own sort of an operation. But just curious, kind of the health of the channel, and then also kind of what you're seeing in North America. I'm curious. Thank you.

Speaker Change: Perfect. Thanks for the color and good luck in the back half the year.

Speaker Change: Thank you.

Simon Meester: That's kind of the mixed story here.

Speaker Change: Your next question will come from Jamie Cook with true Securities.

Stanley Elliott: Perfect, Simon, thanks for the color and good luck at the back after you. Thank you.

Jamie Cook: Hi, good morning, nice quarter, I guess two questions.

Jamie Cook: Your next question will come from Jamie Cook with True Securities. Hi, good morning, nice quarter. I guess two questions. You know, one Julie on access equipment, you know, your margins, you know, sound like had 100 bips headwind because of Monterey; yet you're still able to raise your margins, and you're talking about an incremental margin greater than 25%, which is better than your target. So what's driving that? Into what degrees do we think Monterey can help structurally improve incremental margins. I'm just wondering if there's a better longer-term story here.

Jamie Cook: No one Julie on access equipment, you know your margins you know it sounds like at a 100 bps headwind because of Monterrey, yet you're still able to raise your margins and you're talking about an incremental margin greater than 25%, which is better than your target. So what's driving that and to what degree do you rethink Monterey can help structure.

Simon A. Meester: Yeah, great question. We don't think the inventory is necessarily the issue here. It's, and it's a little bit of a mixed bag.

Simon A. Meester: In Europe, it's very much demand driven. And what I mean by that is this just lower productivity because there are fewer less projects. And we think that the inventory, in general, has been right sized for it. In North America, it's a little bit more complicated.

Speaker Change: Yeah, great question.

Speaker Change: The we don't think the inventory is necessarily the the issue here It's and it's a little bit of a mixed bag in Europe It's very much and demand driven and what I mean by that is it's just lower productivity because there's less less project

Speaker Change: Early improved incremental margins I'm, just wondering if there's a better longer term story here and then my second question just on materials processing to what degree I mean, I've never seen a 10% I think your guide implies sales down 10% I've never seen a business down as much.

Speaker Change: And we think that the inventory in general has been right-sized for it. In North America, it's a little bit more complicated. There's still a lot of fleet productivity. We just see less rental conversions. Inventory, again, is not necessarily a problem. We think that most of the right-sizing has been done.

Jamie Cook: And then my second question just on materials processing to what degree. I mean, I've never seen a 10%. I think your guide implies fail found 10%. I've never seen a business down this much. To what degree do you think this business is over-earning or the decline could could continue into 2025. So I guess I'll stop there.

Speaker Change: To what degree do you think this business is over earning or the declines could continue into 2025, So I guess I'll stop there. Thanks.

Speaker Change: Okay. Thanks, Jamie so it is because it was our.

Speaker Change: Our second quarter margins later in P Ware.

Speaker Change: Well, what's happening is that we sell, especially in NP, a lot through rent-to-purchase contracts, and typically they converge, let's say, within six months, and now customers are just holding on.

Speaker Change: So really when you adjust for the Monterey.

Julie Beck: Thanks. Okay, thank you, Jamie. So, you know, so that our second quarter margin is native key. You know, we're we're. It really when you adjust for the Monterey in efficiencies, which were about $5 million, which was better than we anticipated for the course. The Monterey facility is just going extremely well; we're very excited about the facility. And so, as we go through the rest of the year, you know, our margins improve because those inefficiencies, you know, start to phase; those go down. Last year, we also have the gain of Oklahoma City facility. So if you take those two items out, our margins were relatively consistent last year to this year for AWP.

Speaker Change: Inefficiencies, which were about $5 million, which was better than we anticipated but of course, the Monterrey facility is going extremely well, we're very excited about the facility and and so as we go through the rest of the year our margins improve because those inefficiencies.

Speaker Change: to their rental units for just a few more months to see what's going to happen with interest rates. So in North America, it's mostly interest rate anxiety, if you will, a caution for what's going to happen with interest rates.

Speaker Change: To SaaS.

Jamie Cook: Those go down last year, we also had the gain of the Oklahoma City facility. So if you take those two items out our our our margins were relatively consistent last year to this year for AWP. So going forward we will.

Simon A. Meester: There's still a lot of fleet productivity. We just see fewer rental conversions, and inventory again is not necessarily a problem. We think most of the right sizing has been done. What's happening is that we sell, especially in NP, a lot through rent-to-purchase contracts. Typically, they converge, let's say, within six months, and now customers are just holding on to their rental units for just a few more months to see what's going to happen with interest rates.

Speaker Change: Before they convert to, from rent to purchase, but if we look at fleet utilization, still very high in North America, there's still a lot of work and our units are working in North America. That's kind of the mixed story here.

Simon A. Meester: In North America, it's mostly interest rate anxiety, if you will, a caution about what's going to happen with interest rates before they convert to rent-to-purchase. But if we look at fleet utilization, still very high in North America, there's still a lot of work, and our units are working in North America. That's kind of a mixed story here.

Simon A. Meester: Perfect, Simon. Thanks for the color and good luck in the second half of the year.

Simon A. Meester: Thank you. Your next question will be called from Jamie Cook with True Security.

Jamie Cook: We'd expect to experience less disruption and this facility.

Speaker Change: Perfect, Simon. Thanks for the color and good luck in the back half of the year.

Jamie Cook: Completes and gets to where the original.

Julie Beck: So going forward, we would expect to experience less disruption, and this facility, you know, completes and gets to where the original intention at the end of the fourth quarter or, you know, and so, you know, we would expect to start to see those margins improve. And indeed, we put in that 200 basis point margin improvement that I can have the year from where we were a year ago. So again, we're still at target to achieve those 200 basis points of margin improvement that, you know, as we go forward.

Jamie Lyn Cook: Hi, good morning. Nice quarter. I guess I have two questions. You know, one, Julie, on access equipment, your margins, you know, sounds like you had a 100 bps headwind because of Monterey, yet you're still able to raise your margins, and you're talking about an incremental margin greater than 25%, which is better than your target. So what's driving that, and to what degree do we think Monterey can help structurally improve incremental margins? I'm just wondering if there's a better longer-term story here. And then my second question is just on materials processing, to what degree?

Speaker Change: Your next question will come from Jamie Cook with True Securities.

Jamie Cook: Our intention at the end of the fourth quarter or you know and and so we would expect to start to see those margins improve and indeed, we put in a 200 basis point margin improvement in the second half of the year from where we were a year ago. So again, we're still on target to achieve the 200 basis points of margin improvement.

Jamie Lyn Cook: Hi, good morning. Nice quarter. I guess two questions. You know, one, Julie, on access equipment, you know, your margins.

Jamie Lyn Cook: You know, it sounds like I had 100 bips headwind because of Monterey, yet you're still able to raise your margins and you're talking about an incremental margin greater than 25%, which is better than your target.

Jamie Cook: As we go forward.

Speaker Change: But my question is is there a reason to believe your incremental margins in this business construction will it be higher than the 25%.

Speaker Change: So, what's driving that, and to what degree do we think Monterey can help structurally improve incremental margins? I'm just wondering if there's a better, longer-term story here. And then my second question, just on...

Jamie Cook: Yes.

Speaker Change: Well it is.

Julie Beck: But my question is, is there a reason to believe your incremental margins in this business can structurally be higher than the 25%. Well, so for this year, there will still be higher than 25%. We're working on our outlook implies roughly 26%. And so we'll continue to work on improving margins as we go.

Speaker Change: So far this year there'll be higher there's been 25%.

Julie A. Beck: I mean, I've never seen a 10% decline. I think your guide implies sales down 10%. I've never seen a business down this much. To what degree do you think this business is over earning, or will the declines continue into 2025? So I guess I'll stop there.

Speaker Change: Our outlook implies roughly 26%.

Speaker Change: materials processing, to what degree, I mean, I've never seen a 10%, I think your guide implies sales down 10%. I've never seen a business down this much. To what degree do you think this business is over-earning or the declines could continue into 2025?

Speaker Change: And so we will continue it will continue to work on improving margins as we go.

Speaker Change: Okay, and I'm, sorry to follow up on materials processing.

Speaker Change: Yeah no. Thanks for the question Yeah.

Julie A. Beck: Thanks. Okay, thanks, Jamie. So, you know, our second-quarter margins, you know, when you adjust for the moderate inefficiencies, which were about $5 million, which was better than we anticipated for the quarter. So the moderate facility is just going extremely well. We're very excited about the facility, and so as we go through the rest of the year, our margins will improve because those inefficiencies will start to abate. Those go down.

Speaker Change: MTI is a collection of five.

Jamie Cook: Okay, and then sorry to follow up on the care of processing.

Speaker Change: So I guess I'll stop there. Thanks.

Jamie Cook: Verticals, if you will and.

Simon Meester: Yeah, thanks for the question. Yeah, it's, and he is a collection of five verticals, if you will, and within, within those verticals, there's a lot of things happening. If I, if I take folks, for example, our, our material handling, our scrap handling business, you know, very biased to Germany, very biased to Europe, very biased to Europe. And that it was clearly struggling; that was what we called out in the first quarter. Still, what we're calling out now in the second quarter is the business that is probably struggling the most within the MP portfolio. And, you know, and because if you look at the European economy overall, it's Germany and Italy that are, that are struggling. UK and France seem to be coming back a little bit, and then Spain is the positive outlier.

Speaker Change: Okay, thanks, Jamie. So, you know, so our second quarter margins native key, you know, we're, we're

Jamie Cook: Within within those are verticals, there's a lot of things happening if I if I take our Fuchs for example are our material handling our scrap handling business.

Speaker Change: It really, when you adjust for the Monterey inefficiencies, which were about $5 million, which was better than we anticipated for the quarter, the Monterey facility is just going extremely well. We're very excited about the facility.

Speaker Change: It's very bias to Germany.

Speaker Change: Bias to Europe, very biased to scrap prices.

Speaker Change: That business is clearly struggling that was what we called out in the first quarter is still what we're calling out now in the second quarter as the business that is probably struggling the most within the E&P portfolio.

Speaker Change: And so as we go through the rest of the year, you know, our margins improve because those inefficiencies, you know, start to abate.

Julie A. Beck: Last year, we also had the gain of the Oklahoma City facility. So if you take those two items out, our margins were relatively consistent last year to this year for AWP. So going forward, we would expect to experience less disruption, and this facility, you know, completes and gets to where the original intention was at the end of the fourth quarter, or, you know, and so, you know, we would expect to start to see those margins improve.

Speaker Change: And.

Speaker Change: Those go down. Last year we also had the gain of the Oklahoma City Facility. So if you take those two items out, our margins were relatively consistent last year to this year for AWT.

Speaker Change: Because if you look at the European economy, overall is Germany, and Italy that are that are struggling in UK and France are seem to be coming back a little bit and in Spain is the is the positive outlier.

Speaker Change: So going forward, we would expect to experience less disruption and that this facility, you know, completes and gets to where the original intention at the end of the fourth quarter or, you know, and so, you know, we would expect to start to see those margins improve. And indeed, we put in a 200 basis point margin improvement in the second half of the year from where we were a year ago.

Jamie Cook: So it's a little bit of a double whammy, if you will for our for our fluids business. Although we are encouraged to see.

Jamie Cook: Germany steel production has been creeping up since February.

Simon Meester: So it's a little bit of a double whammy, if you will, for our foods business. Although we are encouraged to see that Germany still production has been creeping up since February, our rolling three months book to bill is actually greater than one in June for that business. And then also our quoting activity seems to pick up too early to call, to call, you know, for, for, you know, signs of a bottom, but it that we do see some, some positive signal in folks. And then the other business that has been struggling is also a business tied to Europe, which is our, our cranes business.

Julie A. Beck: And indeed, we put in a 200 basis point margin improvement in the second half of the year from where we were a year ago. So again, we're still targeting to achieve those 200 basis points of margin improvement, you know, as we go forward. But my question is, is there a reason to believe your incremental margins in this business can structurally be higher than 25%?

Jamie Cook: Our rolling.

Jamie Cook: Three months book to Bill was actually greater than one in June for that business and then also our quoting activity seems to pick up to early to coal to coal.

Speaker Change: So again, we're still on target to achieve those 200 basis points of margin improvement as we go forward. But my question is, is there a reason to believe your incremental margins in this business can structurally be higher than the 25%?

Speaker Change: <unk> four.

Speaker Change: Signs of a bottom, but we do see some some pauses.

Speaker Change: Signal and Fuchs.

Speaker Change: The other big.

Speaker Change: A business that has been struggling is also a business is tied to Europe versus our cranes business and they are headquartered as you know in Italy, which the second European market. That's currently struggling.

Julie A. Beck: Well, for this year, they'll be higher than 25%. Our outlook implies roughly 26%. And so we'll continue to work on improving margins as we go.

Speaker Change: Well, so for this year they'll be higher than 25%. Our outlook implies roughly 26%.

Jamie Cook: Both both of those countries, Germany, Italy is very manufacturing focus with the exports because Europe is down overall, but I would just say <unk> overall in the last 10 years that business has grown almost double digit consistently for the last 10 years and it's been a very very steady performer for us.

Julie A. Beck: Okay, and then, sorry, the follow-up on the materials process. Yeah, thanks.

Speaker Change: And so we'll continue to work on improving margins as we go.

Simon Meester: And they are headquartered, as you know, in Italy, which is the second European market that's currently struggling. And both, both those countries, Germany and Italy are just very manufacturing focused at the exports because Europe is down overall, but I would just say MP overall in the last 10 years that business has grown almost the whole digit consistently for the last 10 years. And it's been a very, very steady performer for us. Again, you know, north of 15% operating margins in the current environment, we think it's great performance that business. And the reason we're still, you know, very encouraged is because of what we're seeing in North America: high utilization.

Simon A. Meester: Yeah, thanks for the question. Yeah, NP is a collection of five verticals, if you will, and within those verticals, there are a lot of things happening.

Speaker Change: Okay, and then, sorry, the follow-up on materials processing.

Speaker Change: Yeah, thanks for the question. Yeah, NP is a collection of five.

Simon A. Meester: If I take Fuchs, for example, our material handling, our scrap handling business, it's very biased to Germany, very biased to Europe, and very biased to scrap prices. That business is clearly struggling. That was what we called out in the first quarter.

Speaker Change: verticals, if you will. And within those verticals, there's a lot of things happening. If I take Fuchs, for example, our material handling, our scrap handling business,

Jamie Cook: Again, you know north of 15% operating margins in the current environment. We think is a great performance of the business and the reason we're still very encouraged because of what we're seeing in North America high utilization and we believe it is.

Speaker Change: And I was very biased to Germany, very biased to Europe ,

Speaker Change: The Detroit thing happens with interest rates and we are actually hitting.

Simon A. Meester: Still, what we're calling out now in the second quarter is the business that is probably struggling the most within the MP portfolio. And, you know, because if you look at the European economy overall, it's Germany and Italy that are struggling. The UK and France seem to be coming back a little bit. And then Spain is the positive outlier.

Speaker Change: And that business is clearly struggling. That was what we called out in the first quarter. Still, what we're calling out now in the second quarter is the business that is probably struggling the most within the MP portfolio.

Speaker Change: Heading towards spoke lending theres plenty of upside in <unk>.

Simon Meester: And we believe that is, you know, if the right thing happens with interest rates and we are actually heading towards both landing, there's plenty of upside in North America coming from the mega project alone.

Jamie Cook: North America coming from the Mega projects.

Speaker Change #101: That's a little bit okay around empty.

Speaker Change: And, you know, and because if you look at the European economy overall, it's Germany and Italy that are that are struggling. UK and France are seem to be coming back a little bit. And then Spain is the positive outlier.

Speaker Change: Thank you so much.

Jamie Cook: Thank you.

Jamie Cook: Your next question will come from David Raso with Evercore ISI.

Jamie Cook: So that's a little bit boring around MP. Thank you so much. Thank you.

David Raso: Hi, Thank you I'm trying to figure out the initial look into 'twenty five in AWP with how you think about your book to Bill in the AWP the rest of the year.

Simon A. Meester: So it's a little bit of a double whammy, if you will, for our food business. Although we are encouraged to see that German Steel Production has been creeping up since February. Our rolling three months' book to bill is actually greater than one in June for that business. And then also, our quoting activity seems to pick up too early to call to call, you know, for signs of a bottom, but we do see some positive signals in folks.

David Rossel: Your next question will come from David Rossel, whatever core ISI. Hi, thank you. I'm trying to figure out the initial look into 25 and AWP with how you think about your book to bill and AWP the rest of the year. I'm just trying to think through, before the last few years where you had a huge backlog starting the new year, the backlog would usually in the year, you know, call it 40% of the following year sales. And I'm just trying to figure out to get lower than that, right, to feel 25 is more risk of a down AWP year than normal, giving your starting year with a low backlog.

Speaker Change: So it's a little bit of a double whammy, if you will, for our for our foods business, although we are encouraged to see

David Raso: I'm just trying to think through.

Speaker Change: The Germany Steel Production has been creeping up since February . Our rolling three-month book-to-bill is actually greater than one in June for that business, and then also our quoting activity seems to pick up.

Speaker Change: Before the last few years, where you had a huge backlog starting the new year.

Speaker Change: Clog would usually in the year, you know call it 40% of the following year sales.

Speaker Change: And I'm, just trying to figure out to get lower than that right to field twenty-five has more risk of a down AWP or.

Speaker Change: It's too early to call for signs of a bottom, but we do see some positive signals in folks.

Simon A. Meester: And then the other business that has been struggling is also tied to Europe, which is our crane business. And they are headquartered, as you know, in Italy, which is the second European market that's currently struggling. And both those countries, Germany and Italy, are just very manufacturing-focused. They struggle with exports because Europe is down overall.

David Raso: Normal given you're starting the year with a low backlog.

David Raso: It would imply your book to Bill.

Speaker Change: And then the other business that has been struggling is also a business tied to Europe , which is our cranes business.

David Raso: Even in the fourth quarter really can't even see above one.

Simon Meester: It would imply your book to bill, even in the fourth quarter, really can't even see above one. And, but historically it's well above one. So I guess the direct question is to get a sense where the backlog could end the year from your conversation so far. I know it's early. Is there any reason to believe your book-to-bill in the fourth quarter for AWP should not be constantly above one? I just want to know how hesitant, you know, your conversations have been already on commitment at all for 25 on AWP demand. Yeah.

Speaker Change: Historically, its well above one so I guess the direct question is to get a sense of where the backlog could end the year from your conversations so far I know it's early.

Speaker Change: And they are headquartered, as you know, in Italy, which is the second European market that's currently struggling. And both those countries, Germany and Italy, are just very manufacturing...

Simon A. Meester: But I would just say, MP overall, in the last 10 years, their business has grown almost double-digitally consistently for the last 10 years. And it's been a very, very steady performer for us. Again, north of 15% operating margins in the current environment, we think it's great performance for the business. And the reason we're still, you know, very encouraged is because of what we're seeing in North America, high utilization.

Speaker Change: Is there any reason to believe your book to Bill in the fourth quarter for AWP should not be comfortably above one I just want to know how hesitant.

Speaker Change: Your your conversations have been already on.

Speaker Change: Commitment at all of our 25 on AWP demand yeah.

Speaker Change: Again, you know, north of 15% operating margins in the current environment, we think it's great performance for the business. And the reason we're still, you know, very encouraged is because of what we're seeing in North America, high utilization, and we believe that if, you know, if the right thing happens with interest rates, and we are actually heading towards the fault landing, there's plenty of upside in North America coming from the megaproject alone. So that's a little bit of the story around MP.

Speaker Change: It's a tough question to answer.

Simon A. Meester: And we believe that if, you know, if the right thing happens with interest rates, and we are actually heading towards the fourth landing, there's plenty of upside in North America coming from the megaproject alone. So that's a little bit of the story around MP. Thank you so much.

Speaker Change: Honestly, we get qualitative.

Speaker Change: Data points, not really quantified that but we're not guiding for 2025 first and foremost but yes.

Simon Meester: I mean, it's a tough question. To answer, you know, obviously we get qualitative data points, not really quantitative, and we're not guiding for 2025 first and foremost. But yeah, generally speaking, the discussions are that has just started, David, as you know. We typically start discussions for the next year in Q3, and then we'll hit the backlog with Q4 and very often in Q1 as well. So I would say a general response to your question is we do expect, obviously, Q4 book to be able to be better than Q3, but what is the exact number is going to be?

Speaker Change: Generally speaking.

Speaker Change: The discussions are that has just started David as you know we typically start discussions for the next year in Q3, and then it will hit the backlog from Q4 and very often in Q1 as well. So I would say a general response to your question is we do expect obviously Q4 book to bill to be better than Q3.

David Michael Raso: Your next question will come from David Raso with Evercore ISI.

Speaker Change: Thank you so much.

David Michael Raso: Hi, thank you. I'm trying to figure out the initial look into 25 and AWP with how you think about your book to bill and AWP the rest of the year. I'm just trying to think through... before the last few years where you had a huge backlog starting the new year, backlog would usually, in the year, call it 40% of the following year's sales. And I'm just trying to figure out how to get lower than that, right?

Jamie Cook: But what was the exact number is going to be it all depends on how 2025 is going to pan out and it's too early for us to really peg that down so far the discussions that we've had with our customers are positive for 2025.

Speaker Change: Hi, thank you. I'm trying to figure out the initial look into 25 and AWP with how you think about your book to bill and AWP the rest of the year. I'm just trying to think through, I mean, before the last few years where you had a huge backlog starting the new year.

Simon Meester: It all depends on how 2025 is going to pay out, and it's too early for us to really pack that down. So far, the discussion that we've had with our customers are positive for 2025, whether it's up, down, slightly, clever to early for us to tell.

Speaker Change: Whether it is down slightly classes too early for us to tell.

Speaker Change: So I know I know, it's a bit of unfair question, but it's just the whole idea of how much goodness of the large backlog that we went into 'twenty four with we can still leave 24 with at least relative to history.

David Michael Raso: To feel 25 is more at risk of a down AWP year than normal, given your starting year with a low backlog, it would imply your book to bill, even in the fourth quarter, really can't even be above one. But historically, it's well above one.

Speaker Change: And I'm just trying to figure out, to get lower than that, right, to feel 25's more at risk of a down AWP year.

Simon Meester: I know it's a bit of a fair question, but just the whole idea of how much goodness of the large backlog that we went into 24 with, we can still leave 24 with at least relative to history. And in that same conversation, are we already at least getting customers bringing up the idea of there's a lot more capacity coming to the industry in 25, or are we starting to have those conversations where, you know, clearly you're in the driver's seat with pricing the last couple of years, and now the pendulum power is swinging the other direction.

Speaker Change: And that same conversation are we.

Speaker Change: Than normal, given you're starting the year with a low backlog, it would imply.

Speaker Change: Ready at least getting customers, bringing up the idea of there's a lot more capacity coming to the industry and twenty-five or are we starting to have those conversations were clear.

Speaker Change: You're booked a bill.

Simon A. Meester: So I guess the direct question is to get a sense where the backlog could end the year. From your conversations so far, I know it's early. Is there any reason to believe you're booked a bill in the fourth quarter for AWP that should not be comfortably above one? I just want to know how hesitant, you know, your conversations have been already on. Commitment at All for 25 on AWP. Yeah, I mean,

Speaker Change: But historically, it's well above one. So I guess the direct question is to get a sense of where the backlog could end the year from your conversations so far, I know it's early.

Speaker Change: Clearly you are in the driver's seat with pricing in the last couple of years and now the pendulum of power.

Speaker Change: Swinging the other direction I'm, just curious the industry capacity issue bid Chinese.

Speaker Change: Is there any reason to believe you're booked a bill in the fourth quarter for AWP should not be comfortably above one? I just want to know how hesitant, you know, your conversations have been already on.

Speaker Change: Manufacturing in Mexico, JCB opening up San Antonio I mean, you name. It I'm just curious how that's playing out in conversations so far.

Simon Meester: I'm just curious the industry capacity issue, be it Chinese manufacturing in Mexico, JCB opening up San Antonio. I mean, you name it. I'm just curious how that's playing out in conversation so far. Yeah, we don't, we don't share that concern over capacity in North America and in Europe for that matter. Not China's a different story; there's definitely over capacity and an undisciplined, you know, price management in our mind. Or irresponsible price management, I would say. But in North America and Europe, we don't share that concern in terms of capacity, and we can only see for ourselves. And we've shared on our last call kind of where we stand in terms of capacity; we're not adding, we're just changing.

Simon A. Meester: Yeah, I mean, it's a tough question to answer. You know, obviously, we get qualitative data points, not really quantitative, and we're not guiding for 2025, first and foremost. But yeah, generally speaking, the discussions have just started, David. As you know, we typically start discussions for the next year in Q3, and then it will hit the backlog in Q4, and very often in Q1. So I would say a general response to your question is, obviously, we do expect the Q4 book to build to be better than Q3.

Speaker Change: Yes, we do.

Speaker Change: We don't share that concern over overcapacity in North America and in Europe for that matter now China is a different story there is definitely overcapacity in an undisciplined.

Speaker Change: Commitment at all for 25 on AWP demand.

Speaker Change: Yeah, I mean, it's a tough question to answer. You know, obviously, we get qualitative data points, not really quantitative. And we're not guiding for 2025, first and foremost. But...

Speaker Change: Price management.

Speaker Change: Our mind.

Speaker Change: Yeah, generally speaking, the discussions are, they have just started, David, as you know. We typically start discussions for the next year in Q3, and then it will hit the back wall in Q4, and very often in Q1 as well.

Speaker Change: Or irresponsible price management, all those sites, but in North America, and Europe, we don't share that concern in terms of capacity and we can only speak for ourselves and we've shared on our last call kind of where we stand in terms of capacity, we're not adding we're just changing.

Speaker Change: So I would say a general response to your question is we do expect obviously Q4 book to build to be better than Q3.

Speaker Change: But yeah, we see some of the headlines as well.

Simon A. Meester: But what is the exact number going to be? It all depends on how 2025 is going to pan out, and it's too early for us to really tag that down. So far, the discussions that we've had with our customers are positive for 2025; whether it's up, down, slightly closer, it's too early for us to tell.

Speaker Change: But what is the exact number is going to be, it all depends on...

Speaker Change: We don't think it necessarily as off to a massive overcapacity of the industry. So I did not have any personal discussions with customers, where they've kind of turned it back from offsetting or what's going on here.

Simon Meester: But yeah, we see some of the headlines as well. We don't think it necessarily adds up to a massive overcapacity of the industry, so I did not have any personal discussions with customers where they kind of turned it back on us saying, "What's going on here?" Is it excessive? We haven't seen that.

Speaker Change: Well, how 2025 is going to pan out. And it's too early for us to really tag that down. So far, the discussions that we've had with our customers are positive for 2025. Whether that's up, down, slightly flat, it's too early for us to tell.

Speaker Change: Is it excessive.

Speaker Change: Haven't seen that.

Simon A. Meester: I know it's a bit of an unfair question, but it's just the whole idea of how much goodness the large backlog that we went into 24 with, we can still leave 24 with, at least relative to history. In that same conversation, are we already at least getting customers bringing up the idea that there's a lot more capacity coming to the industry in 25, or are we starting to have those conversations where, you know, clearly you were in the driver's seat with Swinging the other way, I'm just curious about the industry capacity issue, be it Chinese manufacturing in Mexico, JCB opening up San Antonio, I mean, you name it. I'm just curious how that's playing out in the conversation so far. Yeah, we don't.

Speaker Change: Okay. That's interesting alright, thank you so much.

Speaker Change: Thank you.

Speaker Change: Your next question will come from Jerry Revich with Goldman Sachs.

David Rossel: Okay, that's interesting. All right, thank you so much.

Jerry Revich: Yes, hi, good evening, everyone and.

Unknown Executive: Thank you.

Jerry Revich: Congratulations again on the acquisition announcement.

Jerry Revich: Your next question will come from Jerry Reavage with Golden and Sex. Yes, hi, good morning, everyone. Congratulations again on the acquisition announcement. Simon, I just want to ask, if you wouldn't mind just expanding on your comments on the European Union ruling. How does that impact the competitive landscape at the face value? It looks like everyone except the French manufacturers getting hit by a similar amount, but I wonder if you just feel backed on in for us and just talk about the competitive landscape if the suggested tariffs are implemented. Yeah, thanks for the question. I mean, we're very excited by the ruling.

Speaker Change: At least relative to history. In that same conversation, are we already at least getting customers bringing up the idea of there's a lot more capacity?

Jerry Revich: And then I just wanted to ask you if you wouldn't mind just expanding on your comments on the European Union ruling how does that impact the competitive landscape at face value it looks like.

Speaker Change: Coming to the industry in 25, or are we starting to have those conversations where, you know, clearly you were in the driver's seat with pricing the last couple years and now the pendulum of power.

Speaker Change: Everyone, except the French manufacturers getting hit.

Speaker Change: By similar amount, but I'm wondering if you could just peel back the onion for us and just talking about the competitive landscape.

Speaker Change: is swinging the other direction. I'm just curious, the industry capacity issue, be it Chinese manufacturing in Mexico, JCB opening up San Antonio, I mean, you name it. I'm just curious how that's playing out in conversation so far.

Speaker Change: Yes, the tariffs are implemented.

Speaker Change: Thanks for the question I May note, we're very excited by the ruling we.

Simon A. Meester: Yeah, we don't share that concern over overcapacity in North America and in Europe, for that matter. But China is a different story.

Speaker Change: We were encouraged that.

Speaker Change: Two of the industry players.

Speaker Change: <unk> filed the complaint and does the commission ruled favorably.

Speaker Change: Yeah, we don't share that concern over overcapacity in North America and in Europe for that matter. Now, China is a different story. There's definitely overcapacity and undisciplined, you know, price management in our mind.

Simon Meester: We were encouraged that to the industry players file the file to complain and that the commission rules favorably. I think it was mid June that it came out. We were very pleased with the, you know, the evidence that the commission found that there was actually dumping happening. It's happening in the European market, and in such a day imposed tariffs. So we think it's the right thing for the industry. We obviously encourage level playing fields. We don't necessarily change. I think it will change much going forward to just in our mind avoid this market would go down this, this, this negative spiral.

Simon A. Meester: There's definitely overcapacity and undisciplined, you know, price management in our minds, or irresponsible price management, I would almost say. But in North America and Europe, we don't share that concern in terms of capacity. We can only speak for ourselves, and we've shared on our last call kind of where we stand in terms of capacity. We're not adding. We're just changing. But yeah, we see some of the headlines as well. We don't think it necessarily adds up to a massive overcapacity of the industry. So I did not have any personal discussions with customers where they kind of turned it back on us, saying, well, what's going on here? Is it excessive?

Speaker Change: I think it was mid June that the.

Speaker Change: <unk> came out.

Speaker Change: We were very pleased with the B.

Speaker Change: <unk> evidenced that the commission found that there was actually dumping happening in the European market and as such they imposed tariffs.

Speaker Change: or irresponsible price management, I would almost say. But in North America and Europe , we don't share that concern in terms of capacity. We can only speak for ourselves. And we've shared on our last call kind of where we stand in terms of capacity. We're not adding, we're just changing.

Speaker Change #102: So we think it's the right thing for the industry and we obviously encourage level playing field. So we don't necessarily change things it will change much going forward to adjust in our minds avoid that the market would go down. This this this.

Speaker Change: But yeah, we see some of the headlines as well. We don't think it necessarily adds up to a massive overcapacity of the industry. So I did not have any personal discussions with customers where...

Speaker Change: This negative spiral so we're happy that the ruling was made and we continue to be price leaders for the European market going forward and we think we're in a great position to compete going forward So happy with the results.

Simon Meester: So we're happy that the ruling was made, and we continue to be price leaders for the European market going forward. And we think we're in a great position to compete going forward. So happy with the result.

Speaker Change: They kind of turned it back on us saying, well, what's going on here? Is it excessive? We haven't seen that.

Simon A. Meester: We haven't seen that yet.

David Michael Raso: Okay, that's interesting. All right. Thank you so much. Thank you.

Speaker Change: Super.

Jerry David Revich: Your next question will come from Jerry Revich with Goldman Sachs.

Speaker Change: Would you mind, just commenting on how the utilization numbers are looking at in the U S. Based on your telematics data it looks like based on a couple of rental company reports pricing for AWP is still positive, but time might be different year over year.

Jerry David Revich: Yes, hi, good morning, everyone. And congratulations again on the acquisition announcement. Simon, I just wanted to ask you if you wouldn't mind just expanding on your comments on the European Union ruling. How does that impact the competitive landscape, at face value? It looks like everyone except the French manufacturers will get hit by a similar amount. But I'm wondering if you can just peel back the onion for us and just talk about the competitive landscape if the suggested tariffs are in place. Yeah, thanks.

Speaker Change: Your next question will come from Jerry Revich with Goldman Sachs.

Unknown Executive: Super.

Simon Meester: And would you mind just commenting on how the utilization numbers are looking at in the US based on your telematics data. It looks like, based on a couple of rental company reports, pricing for AWP is so positive, but time you might be dipping your rear. I'm wondering if you just talk about what your, your data shows on utilization specifically. Yeah, as a general statement, utilization is holding. We do see that particularly products that are more commonly used in mega projects do a better than projects that aren't used in more of the local projects, the smaller projects.

Jerry David Revich: Yes, hi. Good morning, everyone, and congratulations again on the acquisition announcement. Simon, I just wanted to ask if you wouldn't mind just expanding on your comments on the European Union ruling. How does that impact the competitive landscape at face value, it looks like?

Speaker Change: Wondering if you just talk about what your data shows on utilization specifically.

Speaker Change: Yes, as a general statement utilization is holding we do see that it's particularly products that are more commonly used in mega projects are doing better than projects that are used in more of a local projects to smaller projects. So there is a little bit of a diverging happening there, but if you add them together is still strong utilization.

Jerry David Revich: Everyone except the French manufacturer is getting hit by a similar amount, but I'm wondering if you could just peel back the onion for us and just talk about the competitive landscape if the suggested tariffs are implemented.

Simon A. Meester: Yeah, thanks for the question. We're very excited by the ruling. We were encouraged that two of the industry players filed the complaint and that the commission ruled favorably. I think it was mid-June that it came out.

Simon: Yeah, thanks for the question. I mean, we're very excited by the ruling. We were encouraged that two of the industry players filed the complaint and that the commission ruled favorably.

Speaker Change: Year over year.

Simon Meester: So there's a little bit of a diverging happening there, but if you add them together, still strong utilization year over year.

Speaker Change: Okay. Thank you.

Speaker Change: Thank you.

Speaker Change: Your next question will come from Tami Zakaria with Jpmorgan.

Tami Zakaria: Hi, good morning. Thank you so much as to my first question is on the current backlog can you give us a sense of how much do you expect to deliver are worked out by the end of this year for both AWP and MP I'm I'm basically trying to understand is if the backlog.

Unknown Executive: Thank you.

Jerry David Revich: I think it was mid-June that it came out. We were very pleased with the, you know, the evidence that the Commission found that there was actually dumping happening in the European market and as such they imposed tariffs.

Tami Zakaria: Your next question will come from Tammy Zakoria or JP Morgan.

Simon A. Meester: We were very pleased with the evidence that the commission found that there was actually dumping happening in the European market, and as such, they imposed tariffs. So we think it's the right thing for the industry. We obviously encourage a level playing field, but we don't necessarily think it will change much going forward. It would just, in our mind, avoid the market going down this negative spiral. So we're happy that the ruling was made, and we will continue to be price leaders in the European market going forward, and we think we're in a great position to compete going forward.

Tami Zakaria: Hi, good morning. Thank you so much. So my first question is on the current backlog. Can you give us a sense of how much do you have to deliver a work down by the end of this year for both AWP and MP. I'm basically trying to understand if the backlog can provide support to sales even next year. Yeah, it's kind of hard to answer the question without getting into 2025 guidance, but if we look at overall backlog coverage today. If you look at tariffs and our outlook is five from two billion dollars midpoint, which means we have another 2.5 ish to go for the remainder of the year.

Jerry David Revich: So we think it's the right thing for the industry and we obviously encourage level playing field.

Speaker Change: <unk> can provide support to sales.

Speaker Change: <unk> next year.

Jerry David Revich: We don't necessarily think it will change much going forward. It would just...

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Kind of hard to answer the question without getting into 2025 guidance, but if we look at overall backlog coverage today.

Speaker Change: If you look at Terex, nor outlook outlook was $5 2 billion midpoint.

Speaker Change: Which means we have another 2.5 ish to go for the remainder of the year, we have $2 4 billion in backlog roughly let's say a third of that is.

Jerry David Revich: The European market going forward, and we think we're in a great position to compete going forward. So, happy with the results.

Simon A. Meester: Super. And would you mind just commenting on how the utilization numbers are looking in the US based on your telematics data? It looks like, based on a couple of rental company reports, pricing for AWP is still positive, but time you might be dipping year over year. I'm wondering if you could just talk about what your data shows on utilization specifically. Yeah, as a general statement, utilization

Speaker Change: Super. And would you mind just commenting on how the utilization numbers are looking at in the U.S. based on your telematics data? It looks like based on a couple of rental company reports, pricing for AWP is still positive, but time might be dipping year over year. I'm wondering if you could just talk about what your data shows on utilization specifically.

Speaker Change: So already allocated through 2025, so that means we have two thirds coverage for the remainder of the year and that's still higher than we are than where we normally are in July in terms of backfill coverage. So we feel we are pretty good.

Julie Beck: We have 2.4 million in backlog. Roughly, let's say a third of that is already allocated to 2025. So that means we have 2.3 coverage for the remainder of the year, and that's still higher than where we normally are in July in terms of backlog coverage. So we feel we have three good backlog coverage to get to our outlook. Now, what's going to happen between 25 is a little bit early to sell, and how that's going to plan up, but we feel good about our backlog coverage for the output that we've currently laid out.

Simon A. Meester: Yeah, as a general statement, utilization is holding. We do see that particularly products that are more commonly used in megaprojects are doing better than projects that are used in more of the local projects, the smaller projects. So there's a little bit of a divergent happening there, but if you add them together, there's still strong utilization year over year.

Speaker Change: Coverage to get to our outlook.

Speaker Change: What's going to happen for 2020 five as little a little early to tell.

Speaker Change: Yeah, as a general statement utilization is holding. We do see that particularly products that are more commonly used in megaprojects are doing better than projects that are used in more of the local projects, the smaller projects.

Speaker Change: But we feel good about our backlog coverage for the outlets are incredibly laid out.

Speaker Change: Got it no that's very helpful detail and then the second question for Julie just.

Speaker Change: So there's a little bit of a divergence happening there, but if you add them together, still strong utilization year over year.

Julie: Wanted to understand the updated EPS guide.

Tami Zakaria: No, that's very helpful detail.

Speaker Change: Thank you restate it.

Julie Beck: And then the second question is probably for Julie. I just wanted to understand the updated EPS guide. I think you re-stated the first quarter EPS and margin. So how much of the new EPS guide is driven by restatements versus changes in the different line items for the rest of the year. It seems like EPS guide is essentially the same. I mean, X3 statement, but am I thinking about the right way, or is there anything to think about there? Yeah, I would, I would take for the question, Tammy, and I agree with you, but in essence, our adjusted EPS outlook is consistent with what we provided in the Q1 early outlook.

Speaker Change #105: First quarter EPS.

Tami Zakaria: Your next question will come from Tami Zakaria, with J.P. Morgan.

Speaker Change: Thank you.

Speaker Change: And margin.

Speaker Change #110: How much of the new EPS guidance, driven by lease statement versus changes in the different line items for the rest of the it seems like EPS that is essentially the same X series statement, but I am I thinking about this the right way or is there anything to think about there.

Speaker Change: Thank you.

Tami Zakaria: Hi, good morning. Thank you so much.

Speaker Change: Your next question will come from Tami Zakaria with J.P. Morgan.

Tami Zakaria: Hi, good morning. Thank you so much.

Tami Zakaria: So my first question is on the current backlog. Can you give us a sense of how much you expect to deliver or work down by the end of this year for both AWP and MP? I'm basically trying to understand if the backlog can provide support to sales even next year. Yeah.

Tami Zakaria: So my first question is on the current backlog. Can you give us a sense of how much do you expect to deliver or work down by the end of this year for both AWP and...

Speaker Change: Yeah.

Speaker Change: Uh huh.

Speaker Change #103: Thanks for the question Tammy and I agree with you that in essence, our our our adjusted EPS.

Speaker Change: I'm basically trying to understand if the backlog can provide support to sales even next year.

Simon A. Meester: Yeah, it's kind of hard to answer the question without getting into 2025 guidance. But if we look at overall backlog coverage today, and if you look at Terex, you know, our outlook is 5.2 billion dollars to midpoint, which means we have another 2.5-ish to go for the remainder of the year. We have $2.4 billion in backlog, and roughly, let's say a third of that is already allocated to 2025. So that means we have two-thirds coverage for the remainder of the year, and that's still higher than where we normally are in July in terms of backlog coverage. So we feel we have pretty good backlog coverage to get to our outlook. Now, what's going to happen for 2025 is a little too early to tell.

Speaker Change: Our outlook is consistent with what we provided in the Q1 earnings outlook. If you take our Q1 midpoint and add in the Q1 call out.

Speaker Change: Yeah, it's kind of hard to answer the question without getting into 2025 guidance, but if we look at overall backlog coverage today, and if you look at Terex, our outlook is $5.2 billion to the midpoint.

Speaker Change: Hum pretty close to what our adjusted EPS midpoint is.

Julie Beck: If you take our Q1 midpoint and add in the Q1 call out, you know, you become, you know, pretty close to what our adjusted EPS to midpoint is, so it's always the way consistent. Thank you.

Speaker Change: Relatively consistent.

Tammy: Got it thank you.

Speaker Change: Thank you. Thank you.

Speaker Change: Which means we have another 2.5-ish minutes.

Speaker Change: And your final question will come from Angel Castillo from Morgan Stanley.

Speaker Change: To go for the remainder of the year, we have $2.4 billion in backlog.

Angel Castillo: Hi, Thanks for taking my question just wanted to go back to the price cost neutral comment you talked about some of the dynamics, perhaps within MP, but just more broadly.

Speaker Change: Roughly, let's say, a third of that is already allocated to 2025, so that means we have two-thirds coverage for the remainder of the year, and that's still higher than we are...

Angel Castillo: Your final question will come from Angel Castillo from Morgan Stanley. Thanks for taking my question. I just wanted to go back to the price cost, neutral comment. You talked about, you know, the similar dynamics perhaps within MP, but just more broadly, you know, customer decisions to perhaps rent a little longer driven by, you know, interest rate decisions, etc. Just curious from a price sensitivity perspective of, you know, your customers, as you're seeing trends such as that.

Angel Castillo: Customer decisions to perhaps rent a little longer driven by interest rate decisions et cetera, just curious from a price sensitivity perspective of your customers as.

Speaker Change: where we normally are in July in terms of factual coverage. So we feel we have pretty good factual coverage to get to our outlook.

Speaker Change: As you are seeing trends such as that like can you just talk about what gives you confidence in being able to pass through.

Speaker Change: Now, what's going to happen for 2025 is a little too early to tell how that's going to pan out. But we feel good about our backlog coverage versus the output that we've currently laid out.

Speaker Change: Any incremental inflation, if investor if our customers are showing kind of greater price sensitivity.

Tami Zakaria: Got it. No, that's a very helpful detail. And then the second question is probably for Julie.

Simon Meester: Did you just talk about, you know, what gives you confidence in being able to pass through any incremental inflation, if investors, if our customers are showing kind of greater price sensitivity in both MP and AWP would be helpful. Yeah, it all comes down to just being transparent, and we've been transparent all along with our customers. And this is obviously a daily conversation. You know, we are still seeing cost inflation in our industry. And, you know, we need to be, we need to be disciplined in how, how we treat the cost inflation. It was it was a very tough story.

Speaker Change: Both the MTN AWP would be helpful.

Tammy: It all comes down to just being transparent and we have been transparent all along.

Speaker Change: Got it. No, that's very helpful detail. And then the second question is probably for Julie. Just wanted to understand the updated EPS guide. I think you restated the first quarter EPS and margin.

Tami Zakaria: Just wanted to understand the updated EPS guide. I think you restated the first quarter EPS and margin. So how much of the new EPS guide is driven by restatements versus changes in the different line items for the rest of the year? It seems like the new EPS guide is essentially the same as the restatement.

Tammy: With our customers and this is obviously a daily conversation.

Tammy: We are still seeing.

Tammy: Cost inflation in our industry.

Speaker Change: So how much of the new EPS guide is driven by restatements versus changes in the different line items?

Tammy: We need to be we need to be disciplined in how we treat the cost inflation. It was it was a very tough story.

Speaker Change: for the rest of the year. It seems like EPA's guide is essentially the same, extra restatement, but am I thinking about this the right way or is there anything to think about there?

Tammy: Please leave during the during the pandemic, but coming out of this pandemic. There are still cost inflation as I mentioned earlier, even though steel is coming down and so we're just by being very transparent on the cost, but we have to pass on as an industry and as I mentioned in electronics and hydraulics even in.

Julie A. Beck: Yeah, I would take the question, Tammy, and I agree with you that, in essence, our adjusted EPS outlook is consistent with what we provided in the Q1 earnings outlook. If you take our Q1 midpoint and add in the Q1 callouts, you come pretty close to what our adjusted EPS midpoint is. So it's relatively consistent.

Julie A. Beck: But am I thinking about this the right way? Or is there something to think about there? Yeah, I would, I would, I would.

Simon Meester: Obviously, during the pandemic, but coming out of the pandemic, there's still cost inflation, as I mentioned earlier, those fields coming down. And so that we're just by being, you know, very transparent on the cost that we have to pass on as an industry. And as I mentioned in electronics, in hydraulics, even in heavy facts, there's still cost inflation, but also labor obviously is everyone can see. And else in logistics and ocean, ocean rates for still in an inflationary environment.

Speaker Change: Thank you for the question Tammy and I agree with you that in essence our adjusted EPS outlook is consistent with what we provided in the Q1 earnings outlook if you take our

Tammy: Heavy facts, there is still cost inflation, but also labor obviously as everyone can see and then also in logistics in the ocean.

Speaker Change: Our Q1 midpoints and add in the Q1 callouts, you know, you come, you know, pretty close to what our adjusted DTHC midpoint is. So it's relatively consistent.

Tammy: Ocean freight we're still in an inflationary environment.

Tammy: So just by by being transparent.

Speaker Change: Uh huh.

Angel Castillo: Your final question will come from Angel Castillo of Morgan Stanley.

Speaker Change #111: Anything to add to that correct.

Tammy: Got it. Thank you.

Speaker Change: Your final question will come from Angel Casio from Morgan Stanley.

Speaker Change #115: That's very helpful. Thank you and maybe just another stab at kind of a 2025 question just thinking about it.

Angel Castillo: So just by being transparent on health, anything to add to. Yeah, that's very helpful. Thank you.

Angel Castillo: Hi, thanks for taking my question. I just wanted to go back to the price-cost neutral comment.

Speaker Change #114: Familiar what you're hearing today, but just more specific to kind of the age of the fleet that youre seeing out there in some of the underlying factors that would typically drive kind of replacement demand for your products in particular.

Angel Castillo: And maybe just another stab at kind of the 2025 question. I'm just thinking about it, you know, less so from maybe what you're hearing today, but just more specific to kind of the age of the fleet that you're seeing out there and some of the underlying factors. That would typically drive kind of replacement demand for your products in particular. What, what do those kind of imply as you think about, you know, prepare for 2025, that replacement demand would be versus 2024? Yeah, I mean, if you think about the last kind of wave, if you will, 2018 was a big wave of machines making their way into the market, and that's now all hitting the five, six, six-year mark.

Angel Castillo: You talked about, you know, some of the dynamics perhaps within MP, but just more broadly, you know, customer decisions to perhaps rent a little longer, driven by, you know, interest rate decisions, etc. Just curious from a price sensitivity perspective of, you know, your customers,

Simon A. Meester: Just curious from a price-sensitivity perspective of your customers, as you're seeing trends such as that, can you just talk about what gives you confidence in being able to pass through any incremental inflation if customers are showing greater price sensitivity in both MP and AWP would be helpful?

Speaker Change: What do those kind of imply as you think about that for about.

Speaker Change: 25 of that replacement demand would be versus 2024.

Speaker Change #100: Yes, I mean, if you think about.

Speaker Change: As you're seeing trends such as that, can you just talk about what gives you confidence in being able to pass through any incremental inflation if customers are showing greater price sensitivity in both NP and AWP would be helpful.

Speaker Change #107: The last.

Speaker Change #112: Kind of wave. If you will 2018 was a big wave of of our machines, making their way into the market.

Simon A. Meester: Yeah, it all comes down to just being transparent. And we've been transparent all along with our customers, and this is obviously a daily conversation.

Speaker Change #112: That's all hitting the five to six year Mark so theoretically.

Speaker Change: Yeah, it all comes down to just being transparent. And we've been transparent all along with our customers. And this is obviously a daily conversation. You know, we are still seeing cost inflation in our industry.

Speaker Change: That is coming up for for replacement, but I would say all of our customers as I mentioned in my opening remarks are very seasoned.

Simon A. Meester: You know, we are still seeing cost inflation in our industry. And, you know, we need to be, we need to be disciplined on how we treat cost inflation. It was, obviously, a very tough story, obviously, during the pandemic.

Simon Meester: So theoretically, you know, that is coming up for replacement, but I would say all our customers, as I mentioned in my opening remarks, are very seasoned, you know, fleet managers, and their fleet age is all within targets. You know, it's probably, you know, varying a couple of months here and there, but overall it's in the 48 to 52 months range. So fleet age is where it needs to be, but there is a little bit of a replacement tailwind, if you will, because of that peak supply in 2018. Very helpful. Thank you.

Speaker Change #116: <unk> managers and their fleet age is all within within targets.

Speaker Change: We need to be disciplined in how we treat the cost of inflation. It was a very tough story.

Speaker Change: It's probably risks.

Speaker Change: <unk> varying a couple of months here and there but overall, it's in the 48 to 52 months' range. So fleet age is where it needs to be but there is there is a little bit of a replacement tailwind if you will because of that peak.

Simon A. Meester: But coming out of the pandemic, there's still cost inflation, as I mentioned earlier, even though steel is coming down. And so we're just being, you know, very transparent on the cost that we have to pass on as an industry. And as I mentioned, in electronics, in hydraulics, even in heavy fabs, there's still cost inflation, but also labor, obviously, as everyone can see, and also in logistics and ocean freight. We're still in an inflationary environment. So just by being transparent, until Do you have anything to add, Julie? No, I think it's exactly right.

Speaker Change: Obviously, during the pandemic, but coming out of the pandemic, there's still cost inflation, as I mentioned earlier, even though steel is coming down.

Speaker Change: And so that we're just by being, you know, very transparent on the cost that we have to pass on as an industry. And as I mentioned, in electronics...

Speaker Change: Peak supply in 2018.

Speaker Change: Very helpful. Thank you.

Speaker Change: Thank you.

Speaker Change: In hydraulics, even in heavy fats, there's still cost of inflation, but also labor, obviously, as everyone can see, and also in logistics and ocean.

Speaker Change: Your final question will come from Steve Barker with Keybanc capital markets.

Steve Barker: Hey, thanks.

Steve Barker: Simon going back to your comment on interest rate anxiety for rental conversion in M. P where do you think the interest rate sensitivity is meaning do people need to see 50 basis points over the next year or are they looking for 100 basis points just trying to.

Steve Berger: Your final question comes from Steve Berger with Key Bank Capital Market. Hey, thanks. Hey, Simon, going back to your comment on interest rate anxiety for rental conversion and MP, where do you think the interest rate sensitivity is, meaning do people need to see 50 basis points over the next year, or are they looking for 100 basis points? Just trying to figure out what they're waiting for. Yeah, great question. I really don't know how to answer that, but I would say it's maybe not so much the number other than the perception that the market is heading towards the salt landing.

Speaker Change: Ocean Freights, we're still in an inflationary environment, so just by being transparent on health.

Angel Castillo: That's very helpful. Thank you. And maybe just another stab at the kind of the 2025 question, just thinking about it, you know, less so from maybe what you're hearing today, but just more specific to kind of the age of the fleet that you're seeing out there and some of the underlying factors that would typically drive kind of replacement demand for your products in particular. What do those kind of imply as you think about, you know, preparing for 2025, what that replacement demand would Yeah, I mean, if you think about it.

Speaker Change: Anything to add, Julie? No, I think it's exactly right.

Speaker Change: Figure out what they're waiting for.

Speaker Change: That's very helpful. Thank you. And maybe just another stab at the kind of the 2025 question, just thinking about it, you know, less so from maybe what you're hearing today, but just.

Speaker Change: Yeah, Great question, I really don't know how to answer that but I would say, it's maybe not so much the number other than the <unk>.

Speaker Change: More specific to the age of the fleet that you're seeing out there and some of the underlying factors that would typically drive replacement demand for your products in particular, what do those imply as you think about prepare for 2025, that replacement demand would be versus 2024?

Speaker Change #104: The perception that the market is heading towards the soft lending I think thats more of the issue and if that was $25 50 or 100, whatever it takes but I think.

Simon A. Meester: Yeah, I mean, if you think about the last kind of wave, if you will, 2018 was a big wave of machines making their way into the market, and that's now all hitting the five, six-year mark. So theoretically, you know, that is coming up for replacement, but I would say all our customers, as I mentioned in my opening remarks, are very seasoned fleet managers, and their fleet age is all within targets. It's probably, you know, varying a couple of months here and there, but overall, it's in the 48 to 52-month range, so fleet age is where it needs to be, but there is a little bit of a Thank you. Thank you. Your final question will come from Steve Barker with KeyBank Capital Markets.

Speaker Change: We just need to get to a place as a place where people feel confident that we're going in the right direction.

Speaker Change: Yeah, I mean, if you think about the last

Simon Meester: I think that's more the issue. And if that's 25, 50, or 100, whatever it takes, but I think we just need to get to a place where people feel confident that we're going in the right direction. That would be my answer. Understood. Thanks.

Speaker Change: kind of wave, if you will. 2018 was a big wave of machines making their way into the market, and that's now all hitting the five, six year mark. So theoretically, you know, that is coming up for replacement. But I would say all our customers, as I mentioned in my opening remarks, are very seasoned, you know, fleet managers and their fleet age is all within targets. You know, it's probably, you know, varying a couple of months here and there, but overall it's in the 48 to 52 months range. So fleet age is where it needs to be.

Speaker Change: That would be my answer.

Speaker Change #109: Understood. Thanks, I got on late that's all I had today.

Speaker Change #106: Thank you.

Speaker Change #106: There are no further questions at this time I will now turn the call back over to Simon for any closing remarks.

Steve Berger: I got on my head; that's all I had today. Thank you.

Simon: Thank you operator.

Speaker Change #113: Do you have any additional questions. Please follow up with Julie or John and with that thank you very much for your interest in Terex and operator. Please disconnect the call.

Unknown Executive: There are no further questions at this time.

Simon Meester: I will now turn the call back on Simon for any closing remarks. All right. Thank you, operator. If you have any additional questions, please follow up with Julie or John. And with that, thank you very much for your interest and interest and operator.

Speaker Change #108: Thank you and ladies and gentlemen that concludes today's conference. Thank you for joining you may now disconnect.

Unknown Executive: Please disconnect the call. Thank you, ladies and gentlemen.

Speaker Change: But there is a little bit of a replacement tailwind, if you will, because of that peak supply in 2018.

Unknown Executive: That concludes today's conference. Thank you for joining.

Unknown Executive: You may now disconnect.

Speaker Change: Very helpful, thank you.

Speaker Change: Thank you.

Speaker Change: Your final question will come from Steve Barker with KeyBank Capital Markets.

Steven Fisher: Hey, thanks. Simon, going back to your comment on interest rate anxiety for rental conversion and MP, where do you think the interest rate sensitivity is? Meaning, do people need to see 50 basis points over the next year? Are they looking for 100 basis points? Just trying to

Steven Fisher: Yeah, great question. I really don't know how to answer that. But I would say it's maybe not so much the number other than the percent.

Speaker Change: Yeah, great question. I really don't know how to answer that, but I would say it's maybe not so much