Terex Reports Fourth Quarter and Full-Year 2022 Results

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Q4
sales of $src.2 billion increased 23% year-over-year, 3src% on FX neutral basis

Q4 income from operations of $src2src million, up 73% year-over-year

Q4 operating profit margin of 9.9% improved 290 bps year-over-year

Q4 EPS of $src.34, up 63% year-over-year

Full-year sales of $4.4 billion increased src4% year-over-year, 20% on FX neutral basis

Full-year income from operations of $420 million up 28% year-over-year

Full-year EPS of $4.32 up 4src% year-over-year

Backlog grew 22% year-over-year to $4.src billion

2023 Outlook: Sales of $4.6 to $4.8 billion and EPS of $4.60 to $5.00

, /PRNewswire/ — Terex Corporation (NYSE: TEX) today announced its results for the fourth quarter and full-year 2022.

CEO Commentary
“The fourth quarter marked an excellent finish to a strong year for Terex. We successfully navigated complex global macro dynamics to deliver significant revenue and earnings growth. I would like to thank the Terex team members for their hard work, dedication, and resilience in managing through this environment. Our 2022 results showcase the strength of our portfolio of diverse market-leading businesses and our continued leadership in attractive growth markets,” said Terex Chairman and Chief Executive Officer John L. Garrison, Jr.

“We were able to achieve price cost neutrality for the full-year, despite global supply chain disruptions and considerable inflationary pressures. Our team remains focused on executing our multi-year growth plan as highlighted at our December Investor Day. We entered 2023 with backlog of $4.src billion, an increase of 22% year-over-year, clearly showing strong demand from our customers. Our globally recognized brands, industry-leading and innovative new products, robust backlog, and balance sheet position us well to manage our business amidst continued macroeconomic volatility. We expect 2023 sales to be between $4.6 and $4.8 billion and earnings per share to be between $4.60 and $5.00 as we capitalize on favorable megatrends and continue to deliver profitable growth.”

Fourth Quarter Operational and Financial Highlights

Net sales of $src.2 billion in the fourth quarter of 2022 increased 23%, compared to $src.0 billion in the fourth quarter of 202src. The increase was primarily driven by increased demand for our products and improved price realization necessary to mitigate rising costs across all segments, which was partially offset by an 8.3% negative impact from changes in foreign exchange rates.
Income from operations of $src20.8 million, or 9.9% of net sales in the fourth quarter of 2022, improved from $69.8 million, or 7.0% of net sales, in the prior year. The year-over-year increase of $5src.0 million was driven by incremental margin achieved on higher sales volume, favorable mix, and price realization which more than offset cost increases and the negative impact of foreign exchange rates during the quarter.
Income from continuing operations in the fourth quarter of 2022 was $92.0 million, or $src.34 per share, compared to $58.0 million, or $0.82 per share, in the fourth quarter of 202src. EPS was up 63% year-over-year.
Our effective tax in the quarter was src3.0% due to one-time discrete items including the reversal of a valuation reserve.

Full-Year 2022 Operational and Financial Highlights

Net sales of $4.4 billion for the full-year 2022 increased src3.7% compared to $3.9 billion in the prior year. The increase was primarily due to healthy demand for our products across multiple businesses and price realization, necessary to mitigate rising costs, across all segments, which was partially offset by a 6.3% negative impact from changes in foreign exchange rates.
Income from operations of $420.0 million, or 9.5% of net sales in the full-year 2022, improved from $328.0 million or 8.4% of net sales in the prior year.
Income from continuing operations for the full-year 2022 was $300.2 million, or $4.32 per share, compared to $2src7.5 million, or $3.07 per share, in the prior year. 2022 EPS was up 4src% year-over-year, but negatively impacted by $0.42 per share of foreign exchange.
Return on invested capital of 2src.3% significantly exceeded our cost of capital as we continued to invest in the business and return cash to shareholders through dividends and share repurchases.
Our effective tax rate for the year was src8.src% due to one-time discrete items including the reversal of a valuations reserve.

Business Segment Review

Materials Processing

Net sales were $550.3 million for the fourth quarter of 2022, up 2src.2% or $96.2 million year-over-year. Excluding the impact of foreign exchange rates, net sales increased 3src.8% year-over-year.
Income from operations increased 39% to $87.0 million for the fourth quarter of 2022, or src5.8% of net sales, compared to $62.6 million, or src3.8% of net sales, in the prior year.
Net sales were $src.9 billion for the full-year 2022, up src4.8% or $249.8 million year-over-year. Excluding the impact of foreign exchange rates, net sales increased 22.9% year-over-year.
Income from operations increased 23.6% to $297.8 million for the full-year 2022, or src5.3% of net sales, compared to $240.9 million, or src4.2% of net sales, in the prior year.

Aerial Work Platforms

Net sales were $67src.8 million for the fourth quarter of 2022, up 25.7% or $src37.4 million year-over-year. Excluding the impact of foreign exchange rates, net sales increased 32.2% year-over-year.
Income from operations increased srcsrc2.6% to $54.0 million for the fourth quarter of 2022, or 8.0% of net sales, compared to $25.4 million, or 4.8% of net sales in the prior year.
Net sales were $2.5 billion for the full-year 2022, up src4% or $304.8 million year-over-year. Excluding the impact of foreign exchange rates, net sales increased src8.9% year-over-year.
Income from operations increased 29% to $src96.2 million for the full-year 2022, or 7.9% of net sales, compared to $src52.src million, or 7% of net sales, in the prior year.

Disciplined Capital Allocation

As of December 3src, 2022, the Company had liquidity (cash and availability under our revolving line of credit) of $727.src million.
Working capital of $875.src million was src8.0% of trailing three month annualized net sales and reflects higher inventory levels as a result of supply chain disruptions.
For 2022, Terex deployed $src59.7 million for capital expenditures and growth investments.
Terex executed $96.6 million in share repurchases and paid $35.6 million in dividends in 2022.

CFO Commentary
Julie Beck, Senior Vice President and Chief Financial Officer, said, “We followed our disciplined capital allocation strategy in 2022, returning $src32 million of cash to shareholders over the course of the year, while also investing to improve and grow our businesses. The expansion of our share repurchase program announced in December and the src5% increase in our dividend which we announced today reflect continued confidence of both management and the Board in our strong financial position and ability to drive sustainable, profitable growth going forward. Our net financial leverage of src.0x, ample liquidity and sustainable free cash flow generation put us in a very strong position to achieve our 2023 financial targets and continue executing on our multi-year growth plan.”

Full-Year 2023: Outlook
(in millions, except per share data)

Terex Outlook (src)                           

   FY 2022 

 FY 2023 Outlook 

Net Sales

$4,4src8

$4,600 – $4,800

SG&A % to Sales

src0.2 %

~src0.5%

Operating Margin

9.5 %

src0.0% – src0.4%

Interest / Other Expense

$53

~$60

Tax Rate

src8.src %

~2src.0%

EPS

$4.32

$4.60 – $5.00

Share Count

69.4

~69.0

Depreciation / Amortization

$47

~$50

Free Cash Flow

$src52

$225 – $275 (2)

Corp & Other OP (3)

($74)

~($75)

Segment Outlook (src)

FY 2022

FY 2023 Outlook

Net Sales

Operating
Margin

Net Sales

Operating
Margin

Materials Processing

$src,942

src5.3 %

$2,000 – $2,src00

~src5.5%

Aerial Work Platforms

$2,484

7.9 %

$2,600 – $2,700

~9.0%

(src) Excludes the impact of future acquisitions, divestitures, restructuring and other unusual items

(2) Capital expenditures of ~$src35 million

(3) 2023 Outlook for Corporate & Other net sales of ~($src0) million

Non-GAAP Measures and Other Items
Results of operations reflect continuing operations. All per share amounts are on a fully diluted basis.  A comprehensive review of the quarterly financial performance is contained in the presentation that will accompany the Company’s earnings conference call.

In this press release, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. Terex believes that this non-GAAP information is useful to understanding its operating results and the ongoing performance of its underlying businesses. 

The Glossary at the end of this press release contains further details about this subject.

Conference call
The Company has scheduled a conference call to review the financial results on Friday, February src0, 2023 beginning at 8:30 a.m. ET.  John L. Garrison, Jr., Chairman and CEO, and Julie Beck, Senior Vice President and Chief Financial Officer, will host the call. A simultaneous webcast of this call can be accessed at https://investors.terex.com. Participants are encouraged to access the call src0 minutes prior to the starting time. The call will also be archived in the Event Archive at https://investors.terex.com.

Forward-Looking Statements

Certain information in this press release includes forward-looking statements (within the meaning of Section 27A of the Securities Act of src933, Section 2srcE of the Securities Exchange Act of src934 (the “Exchange Act”) and the Private Securities Litigation Reform Act of src995) regarding future events or our future financial performance that involve certain contingencies and uncertainties, including those discussed in our Annual Report on Form src0-K for the year ended December 3src, 2022,  and subsequent reports we file with the U.S. Securities and Exchange Commission from time to time, in the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Contingencies and Uncertainties.”  In addition, when included in this press release or in documents referenced herein, the words “may,” “expects,” “should,” “intends,” “anticipates,” “believes,” “plans,” “projects,” “estimates,” “will” and the negatives thereof and analogous or similar expressions are intended to identify forward-looking statements.  However, the absence of these words does not mean that the statement is not forward-looking.  We have based these forward-looking statements on current expectations and projections about future events.  These statements are not guarantees of future performance.  Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those reflected in such forward-looking statements.  Such risks and uncertainties, many of which are beyond our control, include, among others:

changes in the availability and price of certain materials and components, which may result in further supply chain disruptions;

consolidation within our customer base and suppliers;

our operations are subject to a number of potential risks that arise from operating a multinational business, including compliance with changing regulatory environments and political and economic instability;

a material disruption to one of our significant facilities;

our business is sensitive to government spending;

our industry is highly competitive and subject to pricing pressure;

our ability to successfully implement our strategy and the actual results derived from such strategy;

our ability to integrate acquired businesses;

our consolidated financial results are reported in U.S. dollars while certain assets and other reported items are denominated in the currencies of other countries, creating currency exchange and translation risk;

our business is affected by the cyclical nature of markets we serve;

our need to comply with restrictive covenants contained in our debt agreements;

our ability to generate sufficient cash flow to service our debt obligations and operate our business;

our ability to access the capital markets to raise funds and provide liquidity;

the financial condition of customers and their continued access to capital;

exposure from providing credit support for some of our customers;

we may experience losses in excess of recorded reserves;

our ability to attract, develop, engage and retain team members;

possible work stoppages and other labor matters;

increased cybersecurity threats and more sophisticated computer crime;

changes in import/export regulatory regimes, imposition of tariffs, escalation of global trade conflicts and unfairly traded imports, particularly from China, could continue to negatively impact our business;

compliance with environmental regulations could be costly and failure to meet environmental, social and governance (“ESG”) expectations or standards or achieve our ESG goals could adversely impact our business;

litigation, product liability claims and other liabilities;

our compliance with the United States (“U.S.”) Foreign Corrupt Practices Act and similar worldwide anti-corruption laws;

increased regulatory focus on privacy and data security issues and expanding laws;

our ability to comply with an injunction and related obligations imposed by the U.S. Securities and Exchange Commission (“SEC”); and

other factors.

Actual events or our actual future results may differ materially from any forward-looking statement due to these and other risks, uncertainties and material factors.  The forward-looking statements contained herein speak only as of the date of this press release and the forward-looking statements contained in documents referenced herein speak only as of the date of the respective documents.  We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained in, or referenced in, this press release to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

About Terex

Terex Corporation is a global manufacturer of materials processing machinery and aerial work platforms. We design, build and support products used in construction, maintenance, manufacturing, energy, recycling, minerals and materials management applications.  Certain Terex products and solutions enable customers to reduce their impact on the environment including electric and hybrid offerings that deliver quiet and emission-free performance, products that support renewable energy, and products that aid in the recovery of useful materials from various types of waste. Our products are manufactured in North America, Europe, Australia and Asia and sold worldwide.  We engage with customers through all stages of the product life cycle, from initial specification and financing to parts and service support. 

Contact Information

Paretosh Misra

Head of Investor Relations

Phone: 203-604-3977

Email: paretosh.misra@terex.com

TEREX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(in millions, except per share data)

Three Months Ended
December 3src,

Twelve Months Ended
December 3src,

2022

202src

2022

202src

Net sales

$

src,2src7.6

990.src

4,4src7.7

3,886.8

Cost of goods sold

(982.2)

(8src8.2)

(3,546.5)

(3,src29.4)

Gross profit

235.4

src7src.9

87src.2

757.4

Selling, general and administrative expenses

(srcsrc4.6)

(src02.src)

(45src.2)

(429.4)

Income (loss) from operations

src20.8

69.8

420.0

328.0

Other income (expense)

Interest income

0.7

0.8

2.8

3.7

Interest expense

(src3.3)

(src0.9)

(49.src)

(5src.5)

Loss on early extinguishment of debt

(0.2)

(src.7)

(0.3)

(29.4)

Other income (expense) – net

(2.2)

src0.3

(6.8)

src3.0

Income (loss) from continuing operations before income taxes

src05.8

68.3

366.6

263.8

(Provision for) benefit from income taxes

(src3.8)

(src0.3)

(66.4)

(46.3)

Income (loss) from continuing operations

92.0

58.0

300.2

2src7.5

Gain (loss) on disposition of discontinued operations- net of tax

0.2

0.8

(0.2)

3.4

Net income (loss)

$

92.2

58.8

300.0

220.9

Basic earnings (loss) per share:

Income (loss) from continuing operations

$

src.37

0.83

4.38

3.src2

Gain (loss) on disposition of discontinued operations – net of tax

0.0src

0.05

Net income (loss)

$

src.37

0.84

4.38

3.src7

Diluted earnings (loss) per share:

Income (loss) from continuing operations

$

src.34

0.82

4.32

3.07

Gain (loss) on disposition of discontinued operations – net of tax

0.0src

0.05

Net income (loss)

$

src.34

0.83

4.32

3.src2

Weighted average number of shares outstanding in per share calculation

Basic

67.5

69.8

68.5

69.7

Diluted

68.6

70.9

69.4

70.9

TEREX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
 (in millions, except par value)

December 3src,
2022

December 3src,
202src

Assets

Current assets

Cash and cash equivalents

$

304.src

$

266.9

Other current assets

src,657.9

src,500.9

Total current assets

src,962.0

src,767.8

Non-current assets

Property, plant and equipment – net

465.6

429.6

Other non-current assets

690.5

666.src

Total non-current assets

src,src56.src

src,095.7

Total assets

$

3,srcsrc8.src

$

2,863.5

Liabilities and Stockholders’ Equity

Current liabilities

Current portion of long-term debt

$

src.9

$

5.6

Other current liabilities

996.7

904.3

Total current liabilities

998.6

909.9

Non-current liabilities

Long-term debt, less current portion

773.6

668.5

Other non-current liabilities

src64.7

src75.5

Total non-current liabilities

938.3

844.0

Total liabilities

src,936.9

src,753.9

Total stockholders’ equity

src,src8src.2

src,src09.6

Total liabilities and stockholders’ equity

$

3,srcsrc8.src

$

2,863.5

TEREX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(in millions)

Year Ended December 3src,

2022

202src

Operating Activities

Net income (loss)

$

300.0

$

220.9

Depreciation and amortization

47.2

50.2

Changes in operating assets and liabilities and non-cash charges

(86.0)

22.3

Net cash provided by (used in) operating activities

26src.2

293.4

Investing Activities

Capital expenditures

(src09.6)

(59.7)

Other investing activities, net

(44.5)

(42.5)

Net cash provided by (used in) investing activities

(src54.src)

(src02.2)

Financing Activities

Net cash provided by (used in) financing activities

(54.9)

(580.src)

Effect of exchange rate changes on cash and cash equivalents

(src5.0)

(src4.3)

Net increase (decrease) in cash and cash equivalents

37.2

(403.2)

Cash and cash equivalents at beginning of year

266.9

670.src

Cash and cash equivalents at year end

$

304.src

$

266.9

TEREX CORPORATION AND SUBSIDIARIES

SEGMENT RESULTS DISCLOSURE
(unaudited)
(in millions)

Q4

Year to Date

2022

202src

2022

202src

% of

% of

% of

% of

Net Sales

Net Sales

Net Sales

Net Sales

Consolidated

Net sales

$

src,2src7.6

$

990.src

$

4,4src7.7

$

3,886.8

Income from operations

$

src20.8

9.9 %

$

69.8

7.0 %

$

420.0

9.5 %

$

328.0

8.4 %

MP

Net sales

$

550.3

$

454.src

$

src,94src.6

$

src,69src.8

Income from operations

$

87.0

src5.8 %

$

62.6

src3.8 %

$

297.8

src5.3 %

$

240.9

src4.2 %

AWP

Net sales

$

67src.8

$

534.4

$

2,483.6

$

2,src78.8

Income from operations

$

54.0

8.0 %

$

25.4

4.8 %

$

src96.2

7.9 %

$

src52.src

7.0 %

Corp and Other / Eliminations

Net sales

$

(4.5)

$

src.6

$

(7.5)

$

src6.2

Loss from operations

$

(20.2)

*

$

(src8.2)

*

$

(74.0)

*

$

(65.0)

*

* – Not a meaningful percentage

GLOSSARY

Non-GAAP Measures Definitions

In an effort to provide investors with additional information regarding the Company’s results, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures which management believes provides useful information to investors. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. In addition, the Company believes that non-GAAP financial measures should be considered in addition to, and not in lieu of, GAAP financial measures. Terex believes that this non-GAAP information is useful to understanding its operating results and the ongoing performance of its underlying businesses. Management of Terex uses both GAAP and non-GAAP financial measures to establish internal budgets and targets and to evaluate the Company’s financial performance against such budgets and targets.

The amounts described below are unaudited, are reported in millions of U.S. dollars (except share data and percentages) and are as of or for the period ended December 3src, 2022, unless otherwise indicated.

As changes in foreign currency exchange rates have a non-operating impact on our financial results, we believe excluding effects of these changes assists in assessment of our business results between periods. We calculate the translation effect of foreign currency exchange rate changes by translating current period results using rates that the comparable prior periods were translated at to isolate the foreign exchange component of the fluctuation from the operational component. Similarly, the impact of changes in our results from acquisitions and divestitures that were not included in comparable prior periods may be subtracted from the absolute change in results to allow for better comparability of results between periods.

2023 Outlook
The Company’s 2023 outlook for earnings per share is a non-GAAP financial measure because it excludes the impact of potential future acquisitions, divestitures, restructuring, and other unusual items. The Company is not able to reconcile this forward-looking non-GAAP financial measure to its most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the exact timing and impact of such items. The unavailable information could have a significant impact on the Company’s full-year 2023 GAAP financial results. This forward looking information provides guidance to investors about the Company’s EPS expectations excluding unusual items that the Company does not believe is reflective of its ongoing operations.

Free Cash Flow
The Company calculates a non-GAAP measure of free cash flow. The Company defines free cash flow as Net cash provided by (used in) operating activities, plus (minus) increases (decreases) in Terex Financial Services finance receivables consisting of sales-type leases and commercial loans (“TFS Assets”), less Capital expenditures, net of proceeds from sale of capital assets. The Company believes that this measure of free cash flow provides management and investors further useful information on cash generation or use in our primary operations. The following table reconciles Net cash provided by (used in) operating activities to free cash flow (in millions):

Year Ended
December 3src, 2022

Year Ended
December 3src, 202src

Net cash provided by (used in) operating activities

$                   26src.2

$                   293.4

Increase (decrease) in TFS assets

(srcsrc0.6)

Capital expenditures, net of proceeds from sale of capital assets

(src09.4)

(57.8)

Free cash flow

$                   src5src.8

$                   src25.0

ROIC
ROIC and other Non-GAAP Measures (as calculated below) assist in showing how effectively we utilize capital invested in our operations. ROIC is determined by dividing the sum of NOPAT for each of the previous four quarters by the average of Debt less Cash and cash equivalents plus Stockholders’ equity for the previous five quarters.  NOPAT for each quarter is calculated by multiplying Income (loss) from operations by one minus the full year 2022 effective tax rate (“Effective Tax Rate”).

Furthermore, debt is calculated using amounts for Current portion of long-term debt plus Long-term debt, less current portion. We calculate ROIC using the last four quarters’ NOPAT as this represents the most recent src2-month period at any given point of determination. In order for the denominator of the ROIC ratio to properly match the operational period reflected in the numerator, we include the average of five quarters’ ending balance sheet amounts so that the denominator includes the average of the opening through ending balances (on a quarterly basis) thereby providing, over the same time period as the numerator, four quarters of average invested capital.

Our management and Board of Directors use ROIC as one measure to assess operational performance, including in connection with certain compensation programs. We use ROIC as a metric because we believe it measures how effectively we invest our capital and provides a better measure to compare ourselves to peer companies to assist in assessing how we drive operational improvement. We believe ROIC measures return on the amount of capital invested in our businesses and is an accurate and descriptive measure of our performance. We also believe adding Debt less Cash and cash equivalents to Stockholders’ equity provides a better comparison across similar businesses regarding total capitalization, and ROIC highlights the level of value creation as a percentage of capital invested.  As the tables below show, our ROIC at December 3src, 2022 was 2src.3%.

Amounts described below are reported in millions of U.S. dollars, except for the Effective Tax Rate.  Amounts are as of and for the three months ended for the periods referenced in the tables below:

Dec ’22

Sep ’22

Jun ’22

Mar ’22

Dec ‘2src

Effective tax rate

src8.src %

src8.src %

src8.src %

src8.src %

Income (loss) from operations

$        src20.8

$        src20.8

$        src03.9

$          74.5

Multiplied by: src minus effective tax rate

8src.9 %

8src.9 %

8src.9 %

8src.9 %

Net operating income (loss) after tax

$          98.9

$          98.9

$          85.src

$          6src.0

Debt

$        775.5

$        826.5

$        828.2

$        740.3

$           674.src

Less: Cash and cash equivalents

(304.src)

(23src.7)

(253.3)

(2src8.4)

(266.9)

Debt less Cash and cash equivalents

47src.4

594.8

574.9

52src.9

407.2

Stockholders’ equity

src,src8src.2

src,034.7

src,048.9

src,srcsrc4.src

src,src09.6

Debt less Cash and cash equivalents plus Stockholders’ equity

$      src,652.6

$      src,629.5

$      src,623.8

$      src,636.0

$         src,5src6.8

December 3src, 2022 ROIC

2src.3 %

NOPAT as adjusted (last 4 quarters)

$                 343.9

Average Debt less Cash and cash equivalents plus Stockholders’ equity (5 quarters)

$              src,6srcsrc.7

Working Capital
Working Capital is calculated using the Condensed Consolidated Balance Sheet amounts for Trade receivables (net of allowance) plus Inventories, less Trade accounts payable and Customer advances. The Company views excessive working capital as an inefficient use of resources and seeks to minimize the level of investment without adversely impacting the ongoing operations of the business. For the periods below, working capital was:

December 3src, 2022

Inventories

$988.4

Trade Receivables

547.5

Less: Trade Accounts Payables

(624.6)

Less: Customer Advances

(36.2)

Total Working Capital

$875.src

Trailing Three Months Annualized Net Sales is calculated using the net sales for the quarter multiplied by four.

3 months Sales

$src,2src7.6

Number of quarters

x

4.0

Annualized Quarterly Sales

$4,870.4

WC % of Annualized Quarterly Sales

src8.0 %

The ratio is calculated by dividing working capital by trailing three months annualized net sales. The Company believes this measures its resource use efficiency.

Performance Measures Definitions

We use the following operational metrics in monitoring the performance of our business. We believe the operational metrics are useful to investors and other users of our financial information in assessing the performance of our segments.

Backlog
We define backlog as firm orders that are expected to be filled, including orders that are expected to be filled beyond one year, although there can be no assurance that all such backlog orders will be filled. Our backlog orders represent primarily new equipment orders.  Parts orders are generally filled on an as ordered basis.

Our management views backlog as one of many indicators of the performance of our business. Because many variables can cause changes in backlog and these changes may or may not be of any significance, we consequently view backlog as an important, but not necessarily determinative, indicator of future results.

Q4 202src

Q4 2022

% Change

< src2 Months > src2
Months

Backlog

< src2 Months > src2
Months

Backlog

< src2 Months > src2
Months

Backlog

MP

$src,034

$src3

$src,047

$9srcsrc

$263

$src,src74

(src2 %)

src923 %

src2 %

AWP

$src,956

$328

$2,284

$2,493

$404

$2,897

27 %

23 %

27 %

Total

$2,990

$34src

$3,33src

$3,404

$667

$4,07src

src4 %

96 %

22 %

View original content to download multimedia:https://www.prnewswire.com/news-releases/terex-reports-fourth-quarter-and-full-year-2022-results-30src743425.html

SOURCE Terex Corporation

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