Terex Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net sales of $2.2 billion, up 58.4% year-over-year; pro forma net sales grew 11.6% year-over-year.
• Net income was $114 million ($1.00 diluted EPS) compared to $65 million ($0.98 diluted EPS) in the prior year quarter.
• Adjusted net income was $171 million ($1.50 diluted EPS), flat compared to $100 million ($1.50 diluted EPS) in the prior year quarter.
• Adjusted EBITDA was $286 million (13.0% margin), up $35 million (13.9%) on a pro forma basis compared to the prior year quarter.
• Free cash flow was $209 million, an increase of $79 million from the prior year period.
• Operating cash flow was $241 million.
• Debt was reduced by $113 million during the quarter.
• As of September 30, 2026, liquidity (cash and revolving line availability) was $1.2 billion.
• Cash and cash equivalents were $407 million as of September 30, 2026, down from $772 million at December 31, 2025.
• Total assets were $10.296 billion as of September 30, 2026, compared to $6.139 billion at December 31, 2025.

Guidance and Future Outlook:

• Refined 2026 full-year sales outlook to $8.0 to $8.2 billion (approximately 8.5% pro forma growth).
• Refined 2026 full-year Adjusted EBITDA outlook to $930 million to $960 million, with an 11.7% margin at the midpoint.
• Refined 2026 full-year Free Cash Flow outlook to $360 million to $400 million.
• Refined 2026 full-year Adjusted Diluted EPS outlook to $4.80 to $5.00.
• Outlook assumptions include ~$28 million of realized synergies for 2026 (on-target to achieve a $75 million annual run-rate within two years), current tariff rates, ~$180 million in interest expense, a ~19% effective tax rate, and ~110 million average diluted shares outstanding.
• Segment revenue outlook for 2026: Environmental Solutions (flat), Materials Processing (low double-digit growth), Specialty Vehicles (high single-digit growth), and Aerials (low double-digit growth).

Business Segments and Product Lines:

• Environmental Solutions: Net sales of $400 million, down 8.0% year-over-year, driven by lower refuse collection vehicle shipments partially offset by higher utilities product sales. Adjusted EBITDA was $61 million (15.3% margin).
• Materials Processing: Net sales of $434 million, up 4.1% year-over-year; pro forma sales up 11.3%, driven by increased shipments in North American Aggregates. Adjusted EBITDA was $84 million (19.3% margin).
• Specialty Vehicles: Net sales of $657 million, up 8.1% year-over-year on a pro forma basis, driven by increased fire apparatus and recreational vehicle shipments. Adjusted EBITDA was $105 million (16.0% margin).
• Aerials: Net sales of $709 million, up 32.0% year-over-year, driven by strong demand from national customers and increased capital spending on large projects. Adjusted EBITDA was $62 million (8.7% margin).
• Bookings were $2.3 billion, up 52.7% year-over-year on a pro forma basis, resulting in a book-to-bill ratio of 103%.
• Backlog increased to $7.0 billion, up $802 million (12.9%) on a pro forma basis versus the prior year.

Market and Competitive Landscape:

• The company serves essential sectors including emergency services, waste and recycling, utilities, and construction.
• Management noted the industry is highly competitive and subject to pricing pressure.
• The company is actively engaging with multiple strategic counterparties regarding the potential separation of the Aerials segment.

Risks and Challenges:

• Risks include potential inability to successfully integrate acquired businesses (REV Group), manage expanded operations, or realize anticipated synergies.
• Challenges include inflationary pressures, tariff rates, and unfavorable customer mix.
• Specific segment challenges included unfavorable mix and production ramp-up inefficiencies in Environmental Solutions, and inflationary and tariff pressures in Aerials.
• Forward-looking statements note risks related to supply chain disruptions, currency exchange rates, customer credit conditions, and regulatory compliance.

Management Commentary and Tone:

• CEO Simon Meester stated the company delivered higher sales, adjusted EBITDA, and cash flow with solid order activity across all four segments.
• Management highlighted progress in integrating the expanded company, capturing synergies, and applying consistent operating discipline.
• CFO Jennifer Kong-Picarello noted improved working capital efficiency contributed to strong cash flow and a balanced capital allocation framework.
• Management expressed a priority to achieve a successful outcome for the Aerials separation that maximizes value for shareholders.

Other Key Points:

• The Board of Directors authorized a new $500 million share repurchase program, bringing total availability to $611 million.
• During the third quarter, the company returned $91 million to shareholders ($19 million in dividends and $72 million in share repurchases).
• Capital expenditures were $32 million during the third quarter.
• The company is refining its outlook based on third-quarter performance, backlog visibility, and synergy realization.
• The Aerials segment remains focused on serving customers and improving performance while the carve-out process advances.