Highlights

  • Second quarter 2026 consolidated sales were $2.24 billion, with adjusted EBITDA of $269 million and adjusted EPS of $1.37.
  • Backlog stood at $6.9 billion, and consolidated second quarter bookings were $2 billion, up 25% year over year on a proforma basis.
  • Terex raised 2026 guidance to sales of $7.9 to $8.2 billion and adjusted EPS of $4.70 to $5.10.
  • Management said it is running a strategic review of the Aerials segment and has no specific details to share.

Terex (NYSE: TEX) shares were trading at USD 50.05 on October 27, 2026, down 1.94%, with a relative volume at time of 3.84. The equipment maker held its second quarter 2026 earnings call on July 30, 2026, raised its full-year 2026 guidance, and filed prepared remarks from that call with the SEC on August 3, 2026.

Terex Corporation is incorporated in Delaware and lists its principal executive offices in Norwalk, Connecticut. Following its merger with REV Group and the sale of its Cranes and Midwest businesses, it reports four segments. Environmental Solutions includes Terex Utilities and the Environment Solutions Group, which serves refuse collection vehicle demand. Materials Processing includes mobile crushing and screening. Specialty Vehicles, added through the REV Group merger, includes fire trucks and ambulances. The fourth segment is Aerials.

Second Quarter 2026 Results

Consolidated sales, including Specialty Vehicles, were $2.24 billion, up $751M or 51% as reported. On a proforma basis, excluding the sale of the Cranes and Midwest businesses, sales increased $175 million, or 8.5%. Adjusted EBITDA was $269 million, which management said was $26 million higher on a proforma basis, and the adjusted EBITDA margin was 12.0%, compared with 11.8% on a proforma basis a year earlier. Management said results came in spite of higher tariffs than a year ago.

Adjusted earnings per share was $1.37. That figure included a net benefit of $8 million from IEEPA tariff refunds, plus a one-time customs-related accrual. Management said Terex is not accruing for future refunds not yet received.

By segment, Environmental Solutions sales were $456 million, up 5.9%, with an adjusted EBITDA margin of 17.5%, down 250 basis points. Materials Processing sales were $464 million, up 11.1%, with an adjusted EBITDA margin of 18.8%, up 440 basis points; management said one-time benefits contributed approximately 180 basis points. Specialty Vehicles sales were $650 million, up 6.2%, with a margin of 14.5%, up 210 basis points. Aerials sales were $673 million, up 10.9%, with a margin of 5.7%, down 340 basis points from last year.

Cash Flow, Debt and Bookings

Terex generated $128 million of operating cash flow and $101 million of free cash flow in the quarter. Net working capital was 15.2% of sales. Net debt was $2.28 billion, including $407 million of cash on hand, and net leverage was 2.3X net debt to 12-month adjusted EBITDA. The company paid $20 million in dividends.

Backlog was $6.9 billion. Segment bookings were $417 million in Environmental Solutions, $469 million in Materials Processing, $588 million in Specialty Vehicles and $530 million in Aerials. Aerials ended the quarter with a $914 million backlog and Materials Processing with $599 million.

2026 Outlook and Strategic Review

Management now expects 2026 sales of $7.9 to $8.2 billion, adjusted EBITDA of $960 to $1.0 billion, and adjusted EPS of $4.70 to $5.10. It expects interest and other expenses of approximately $185 million, a full-year effective tax rate of 21%, a second-half share count of approximately 114 million, and free cash flow of $300 to $350 million. The outlook includes approximately $28M of synergies and does not account for costs to achieve synergies, purchase accounting adjustments or other non-recurring items. Management said results could change negatively or positively given macroeconomic variables and geopolitical uncertainties.

By segment, management expects low-single digit second-half revenue growth in Environmental Solutions. It no longer expects a material second-half pre-buy of refuse collection vehicles ahead of the 2027 EPA regulation. It expects low double digit sales growth in Materials Processing and Aerials, and high-single digit revenue growth in Specialty Vehicles for the year.

On the Aerials strategic review, management said it has interest from multiple parties and is working toward an outcome that maximizes value for shareholders, but has no specific details to share. It expects the first deliveries from its Brandon, South Dakota expansion within the fourth quarter.