Genie sales drop in Q1 as tariff pressures loom

Terex Corp.’s Aerial Work Platforms (AWP) segment, which includes Genie and Terex Utilities, reported a -27.8% year-over-year decline in first-quarter 2025 net sales, totaling $450 million. The segment’s operating profit dropped -97% to $2 million from $92 million in Q1 2024, as the company said it navigated a strategic production pullback that aligned with softening market conditions.

Simon Meester.

“Aerials and MP operating margins were impacted by production cuts in the past two quarters that exceeded the decline in sales for that period,” said Terex President and CEO Simon Meester. “Those actions were necessary to manage inventory and rebalance supply with demand. The impact is largely behind us, and we expect to see margins improve in Q2.”

Tariffs, supply strategies and customer needs

Terex expects Genie sales to remain on track of its expectations for 2025, stating, “We have planned conservatively with the assumption that our rental customers are primarily deploying replacement CapEx this year.

“Our bookings, actual deliveries and ongoing discussions continue to give us confidence in the Aerials outlook of down low double digits We expect Aerials to return to double-digit margins in Q2, including the impact of tariffs. In Aerials, we have more than seven months forward visibility.”

Turning to global markets, Meester said, “[In Europe], we continue to see a generally weak economic environment in the near term with a more encouraging outlook for infrastructure and related spending growth in the medium to longer term. We also remain encouraged by increasing adoption of our products in emerging markets such as India, Southeast Asia, The Middle East and Latin America. 

Regarding tariffs, Terex is bracing for a $0.40 per share impact from tariffs, primarily related to raw materials imported from China. The financial hit will be felt most heavily in Q3, with smaller effects in Q2 and Q4. AWP is expected to absorb the majority of this burden.

“Looking ahead, in the current environment, it’s difficult to predict where we’re going to land in terms of tariffs,” said Meester. “The good news is that we have been proactive in terms of forward placing inventory and are, like everyone else, working around the clock to mitigate what is currently right in front of us.”

Genie’s GTH-1044

Approximately 75% of Terex’s 2025 U.S. machine sales are expected to be fulfilled by products manufactured domestically at one of its 11 U.S. facilities. Genie’s Washington plant produces roughly 70% of domestic AWP sales, and the company said an additional 20% comes from products manufactured in Monterrey, Mexico, which are currently exempt under the USMCA agreement.

“Like other industrial companies, we have a global supply base and are exposed to tariffs on imported material,” Meester said. “A key element of our tariff mitigation plan was working closely with our global suppliers to absorb the added costs and forward placing inventory to buffer the impact.”

Outlook and overall performance 

At the group level, Terex reported net sales of $1.2 billion for Q1 2025, down -4.9% year-over-year. Excluding the contribution of the newly acquired Environmental Solutions Group (ESG), organic sales declined -25%. Operating profit totaled $69 million (5.6% of net sales), with adjusted operating profit at $111 million (9.1%). Net income came in at $21 million ($0.31 per share), while adjusted EPS was $0.83, compared to $1.74 in the prior year.

Terex is maintaining its full-year adjusted EPS guidance of $4.70 to $5.10, despite ongoing uncertainty surrounding tariffs and regional demand variability. Return on invested capital was 15.0%, and liquidity remained strong at $1.1 billion.

“We remain focused on operational discipline and are confident in our ability to navigate the current environment,” Meester said. “Our outlook for 2025 remains unchanged.”