Terex lowers FY24 adj EPS view to $5.80-$6.20 from $7.15-$7.45, consensus $7.17

FY24 EPS guidance excludes the benefit of the Environmental Solutions Group – ESG – acquisition. Lowers FY24 revenue view to $4.85B-$5.05B from $5.1B-$5.3B, consensus $5.18B. “Our channels globally made adjustments faster than we anticipated, resulting in lower than expected sales volume. In AWP, customers reduced planned deliveries to align their fleet configuration with seasonal rental demand. On the MP side, dealers adjusted their inventory levels as end users gauge the macro environment,” commented CEO Simon Meester. “Long-term mega trends remain intact but over the near-term we will continue to take action to align our cost structure and production plans accordingly. We anticipate closing the ESG acquisition early in Q4, which represents a significant step for Terex. ESG further reduces our cyclicality, is immediately financially accretive, adds meaningful scale and offers operational and commercial synergies with both MP and AWP. We are expecting ESG to generate approximately $45M of Adjusted EBITDA in Q4, which is consistent with our prior expectations.”