Terex Reports First Quarter 2026 Results
Rhea-AI Summary
Terex (NYSE: TEX) reported Q1 2026 results: net sales $1.7B (up 41% reported; proforma +11%), adjusted EBITDA $173M (9.9% margin), and backlog $7.1B with a book-to-bill of 109%. GAAP income from continuing operations was ($93M) and adjusted EPS was $0.98. The company reaffirmed 2026 outlook: sales $7.5–$8.1B and EBITDA $930M–$1.0B, and expects ~$28M of synergies in 2026 toward a $75M run-rate within 24 months.
Positive
- Net sales $1.7B; proforma sales up 11% year-over-year
- Backlog increased to $7.1B with book-to-bill of 109%
- Adjusted EBITDA of $173M (9.9% margin)
- Reaffirmed 2026 outlook: $7.5B–$8.1B sales and $930M–$1.0B EBITDA
- Targeted synergies: $28M realized in 2026 toward a $75M run-rate
Negative
- GAAP income from continuing operations of ($93M) and GAAP EPS ($0.97)
- GAAP EBITDA was ($7M), reflecting merger-related and other non-recurring charges
- Specialty Vehicles reported EBITDA loss of ($53M) due to merger-related non-recurring items
- Free cash outflow of $57M in Q1 and diluted share base increased materially to support REV integration
Key Figures
Market Reality Check
Peers on Argus
TEX is up 2.47% on strong Q1 results and reiterated guidance. Peers show mixed moves: ALG, OSK, AGCO, and BLBD are positive, while REVG is negative. With no peers in the momentum scanner, today’s action appears more company-specific than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Q3 2025 earnings | Positive | -15.7% | Strong Q3 sales and margins with maintained adjusted EPS outlook despite tariffs. |
| Jul 31 | Q2 2025 earnings | Positive | +2.1% | Revenue growth, solid margins, and new share repurchase authorization with guidance maintained. |
| May 02 | Q1 2025 earnings | Neutral | +9.4% | Sales decline but strong ESG contribution and maintained full-year EPS outlook. |
| Feb 06 | FY 2024 earnings | Neutral | -3.1% | Second-highest adjusted EPS in history with mixed segment trends and 2025 guidance. |
| Oct 30 | Q3 2024 earnings | Negative | -5.0% | Net sales decline and segment softness partly offset by ESG acquisition benefits. |
Earnings releases have produced mixed reactions: some strong operational reports were sold off, while others with solid guidance support saw gains. Price responses to earnings skew slightly negative on average, indicating that expectations and guidance framing have been important drivers.
Over the past few years, Terex has reported a series of detailed earnings updates featuring growing sales, solid operating margins, and consistent use of adjusted metrics. Prior quarters highlighted strong Environmental Solutions performance, fluctuating Aerials and Materials Processing demand, and increasing tariff headwinds. Guidance for full-year sales and EPS has generally been maintained or reiterated. The current Q1 2026 report, with higher sales, strong adjusted EBITDA and EPS, REV integration progress, and reaffirmed 2026 outlook, fits this pattern of execution-focused financial updates.
Historical Comparison
Past earnings releases moved TEX an average of -2.44%, often with mixed alignment to fundamentals. Today’s positive move on Q1 2026 results and reiterated outlook contrasts with that mildly negative history.
Earnings updates show Terex progressing from Q3 2024 softness to stronger 2025 results, then into 2026 with higher sales, expanded portfolio via ESG and REV, and continued emphasis on adjusted profitability despite tariff headwinds.
Market Pulse Summary
This announcement details strong Q1 2026 sales of $1.7 billion, higher adjusted EBITDA of $173 million, and adjusted EPS of $0.98, alongside a sizable $7.1 billion backlog and reaffirmed 2026 outlook. It highlights REV integration progress, expected $28 million of 2026 synergies, and segment dynamics across Environmental Solutions, Materials Processing, Specialty Vehicles, and Aerials. Investors may watch backlog trends, tariff impacts, and execution against the $7.5B–$8.1B sales and $930M–$1B EBITDA guidance range.
Key Terms
adjusted ebitda financial
book-to-bill financial
free cash outflow financial
non-gaap financial measures financial
AI-generated analysis. Not financial advice.
- Sales of
$1.7 billion 41% on a reported basis, proforma sales up11% - Income from continuing operations of
( , including significant non-cash and other merger-related charges$93) million - Adjusted EBITDA7 of
$173 million 9.9% margin - EPS from continuing operations of (
$0.97 $0.98 - Backlog grew to
$7.1 billion 109% , providing strong forward visibility - Reaffirming 2026 Outlook5: Sales of
$7.5 $8.1 billion $930 million $1 billion $100 million 12% year over year on a proforma13,14 basis with a12.4% EBITDA margin at the midpoint
CEO Commentary
"We are off to a good start and executing to plan, including the first 58 days with REV Group in our portfolio, now operating as our Specialty Vehicles (SV) segment, which made a meaningful contribution in the quarter. Our quarter-end backlog of
First Quarter Operational and Financial Highlights
- Backlog increased sequentially to
$7.1 billion $2.1 billion 1.1% year over year on a pro forma basis driven by timing of orders in ES and SV and reflects a book-to-bill of109% . Proforma bookings up14% on a rolling six month basis. - Net sales of
$1.7 billion 41.1% higher than the first quarter of 2025. Proforma net sales grew by11% year over year including growth in every segment. - EBITDA was
( , or ($7) million 0.4% ) of net sales, compared to$106 million 8.7% of net sales in the prior year. Adjusted1 EBITDA was$173 million 9.9% of net sales for the first quarter of 2026, compared to$128 million 10.4% of net sales in the prior year. The year-over-year change was primarily due to the accretive addition of Specialty Vehicles, higher sales volumes in MP and operational improvement initiatives, partially offset by tariffs, which were not in effect in the prior year period, and unfavorable mix within Aerials, and product mix in ES. - Income from continuing operations was (
$93) million , or ($0.97 $21 million $0.31 $94 million , or$0.98 $55 million $0.83
Business Segment Review
Environmental Solutions
- Net sales of
$412 million 3.3% compared to the first quarter of 2025, driven by strong throughput and delivery of utilities products, partially offset by lower shipments of refuse collection vehicles. - EBITDA was
$73 million 17.7% of net sales, compared to$80 million 20.1% of net sales in the prior year. Adjusted1 EBITDA was$74 million 18.0% of net sales for the first quarter of 2026, compared to$81 million 20.3% of net sales in the prior year. The change was primarily due to unfavorable product mix, partially offset by higher sales volume and synergy realization.
Materials Processing
- Net sales of
$419 million 9.7% or$37 million 18.3% year over year, driven by growth in Aggregates, Material Handling and Recycling, partially offset by lower sales in Concrete. - EBITDA was
$68 million 16.2% of net sales, compared to$41 million 10.8% of net sales in the prior year. Adjusted1 EBITDA was$63 million 15.0% of net sales for the first quarter of 2026, compared to$43 million 11.2% of net sales in the prior year. The improvement was primarily due to higher sales volume, price realization and efficiency improvement.
Specialty Vehicles
- Net sales of
$436 million 20% year over year on a pro forma13 basis, driven by growth in all product lines, partially due to weather-related delivery timing. - EBITDA was (
$53) million , or (12.2% ) of net sales due to merger-related non-recurring items more than offsetting operational improvements. Adjusted1 EBITDA was$62 million , or14.2% of net sales for the first quarter of 2026, compared to$46 million , or12.6% of net sales on a pro forma13 basis in the prior year. The improvement was primarily due to increased throughput, price realization and improved operational efficiency.
Aerials
- Net sales of
$469 million 4.2% or$19 million - EBITDA and Adjusted1 EBITDA were breakeven, or
0.1% of net sales, for the first quarter of 2026, compared to EBITDA of$8 million 1.8% of net sales, and Adjusted1 EBITDA of$20 million 4.4% of net sales in the prior year. The change in Adjusted EBITDA was primarily due to tariffs, which the business did not incur this time last year. In addition, the business also faced some temporary unfavorable mix and timing of price realization.
Balance Sheet and Liquidity
- Free cash outflow7 of
$57 million - As of March 31, 2026, liquidity (cash and availability under our revolving line of credit) was
$1.0 billion - During the first quarter of 2026, Terex deployed
$26 million - Through March 31, 2026, Terex returned
$19 million $183 million
CFO Commentary
"Our overall first quarter operational financial results were consistent with our expectations. Adjusted EPS for the quarter of
2026 Outlook
With Q1 operational performance in line with our expectations,
- 11 months impact of the new Specialty Vehicle segment (former REV)
~ of realized synergies for 2026, on-target to achieving a$28 million $75 million - Excludes the divested MP cranes and Midwest RV business results
- Current tariff rates to stay as-is, including the recently announced changes to 232 tariffs
- Interest of
~ , consistent with pro-forma 2025$190 million - Full year effective tax rate of ~
21% - Full year average shares outstanding of 111 million for 2026, including ~115 million in Q2 to Q4
Terex Outlook4,5,6,10,11,12,14 | |||
Net Sales3 | |||
EBITDA1 | |||
EPS1,2 | |||
FCF Conversion15 | |||
Segment Net Sales Outlook5 | |||
Prior Year Baseline | 2026 | ||
Environmental Solutions | MSD | ||
Materials Processing8 | HSD | ||
Specialty Vehicles9 | HSD | ||
Aerials | Flat | ||
Figures in millions | |||
MSD = revenue up mid single-digits | |||
HSD = revenue up high single-digits | |||
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 (
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, May 1, 2026 beginning at 8:30 a.m. ET. Simon A. Meester, President and CEO, and Jennifer Kong-Picarello, 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 15 minutes prior to the starting time. The call will also be archived in the Event Archive at https://investors.terex.com.
1 Non-GAAP financial measures included within this press release are referred to as "Adjusted" or "non-GAAP." Refer to the glossary for definitions and/or reconciliations. |
2 Full year share count ~111 million; Q2-Q4 share count ~115 million |
3 Legacy sales expected to increase by |
4 Outlook assumes that tariffs broadly remain at current rates. |
5 Includes REV businesses for the period February 2 - December 31. |
6 Excludes the impact of future acquisitions, divestitures, restructuring and other unusual items. |
7 Free cash flow, EBITDA and Adjusted EBITDA are non-GAAP financial measures. |
8 2025 comparable MP revenue excludes Cranes divestiture. |
9 2025 comparable SV revenue shown on a pro forma basis reflecting February 2 - December 31 2025, excludes Lance & Midwest RV businesses |
10 Interest / Other Expense |
11 Tax rate ~ |
12 Depreciation & Amortization of |
13 Pro forma information presents past performance as if certain events, such as mergers, acquisitions or divestitures, had occurred at an earlier date to illustrate comparable performance. |
14 The Company is not able to reconcile these forward-looking non-GAAP financial measures to their 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. See "Glossary _ Non-GAAP Measures Definition - 2026 Outlook" below for additional information. |
15 Based on net income as adjusted. |
Forward-Looking Statements
Certain information in this press release includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act") and the Private Securities Litigation Reform Act of 1995) regarding future events or our future financial performance that involve certain contingencies and uncertainties, including those discussed in Mr. Meester's and Ms. Kong-Picarello's quotations, our Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent reports we file with the
- we may be unable to successfully integrate acquired or merged businesses, including REV Group, Inc. ("REV"), and we may not realize the anticipated benefits of any merged or acquired business;
- we may be unable to effectively manage our expanded operations following the completion of the recent transaction with REV;
- potential divestitures and any retained liabilities related thereto may negatively impact our business;
- the timing and amount of benefits from our strategic initiatives may not be as expected;
- our industry is highly competitive and subject to pricing pressure, and we may fail to compete effectively;
- we may experience disruptions within our dealer network;
- the imposition of new, postponed or increased international tariffs;
- general economic conditions, government spending priorities and the cyclical nature of markets we serve;
- our outstanding debt and need to comply with covenants contained in our debt agreements;
- we may be unable to generate sufficient cash flow to service our debt obligations and operate our business;
- our access to capital markets and borrowing capacity could be limited;
- we may face cancellations, reductions or delays in customer orders, customer breaches of purchase agreements, backlog reductions or be unable to meet customer delivery schedules;
- currency exchange and translation risk;
- the financial condition of customers and dealers and their continued access to capital;
- exposure from providing credit support for some of our customers and dealers;
- we may experience losses in excess of recorded reserves;
- our common stock may be affected by factors different from those previously, and may decline as a result of the transaction with REV;
- political, economic and other risks that arise from operating a multinational business;
- changes in the availability and price of certain materials and components, which may result in supply chain disruptions;
- consolidation within our customer base and suppliers;
- failure of our equipment to perform as expected;
- a material disruption to one of our significant facilities;
- a failure of a key information technology system or a breach of our information security from increased cybersecurity threats and more sophisticated computer crime;
- issues related to the development, deployment and use of artificial intelligence technologies in our business operations, information systems, products and services;
- increased regulatory focus on privacy and data security issues and expanding laws;
- product liability claims, litigation and other liabilities;
- compliance with
the United States ("U.S. ") Foreign Corrupt Practices Act, theU.K. Bribery Act and similar worldwide anti-corruption laws; - compliance with environmental, health and safety laws and regulations and failure to meet sustainability requirements or expectations;
- compliance with an injunction and related obligations imposed by the
U.S. Securities and Exchange Commission ("SEC"); - our ability to attract, develop, engage and retain qualified team members;
- possible work stoppages and other labor matters; 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. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained 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 leader in specialized equipment solutions, serving essential sectors such as emergency services, waste and recycling, utilities, and construction. Our diversified portfolio positions us in resilient, high-demand markets with strong long-term growth potential.
We design and manufacture advanced specialty vehicles—including fire, ambulance, and recreational vehicles—alongside waste collection vehicles, materials processing machinery, mobile elevating work platforms, and equipment for the electric utility industry. Through our global dealer, parts and service network and true value-creating digital solutions, we deliver best-in-class lifecycle support, helping customers maximize return on investment.
With a strong manufacturing footprint in
For more information, please visit www.terex.com.
Contact Information
Derek Everitt
VP Investor Relations
Email: InvestorRelations@Terex.com
TEREX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (unaudited) (in millions, except per share data) | |||||
Three Months Ended March 31, | |||||
2026 | 2025 | ||||
Net sales | $ | 1,734 | $ | 1,229 | |
Cost of goods sold | (1,528) | (982) | |||
Gross profit | 206 | 247 | |||
Selling, general and administrative expenses | (241) | (161) | |||
Amortization of purchased intangibles | (47) | (17) | |||
Operating (loss) profit | (82) | 69 | |||
Other income (expense) | |||||
Interest income | 4 | 2 | |||
Interest expense | (47) | (43) | |||
Other expense – net | (1) | (2) | |||
(Loss) income before income taxes | (126) | 26 | |||
Benefit from (provision for) income taxes | 33 | (5) | |||
(Loss) income from continuing operations | (93) | 21 | |||
Gain on disposition of discontinued operations – net of tax | 4 | — | |||
Net (loss) income | (89) | 21 | |||
Basic (loss) earnings per share | |||||
(Loss) income from continuing operations | $ | (0.97) | $ | 0.32 | |
Gain on disposition of discontinued operations – net of tax | 0.04 | — | |||
Net (loss) income | (0.93) | 0.32 | |||
Diluted (loss) earnings per share: | |||||
(Loss) income from continuing operations | $ | (0.97) | $ | 0.31 | |
Gain on disposition of discontinued operations – net of tax | 0.04 | — | |||
Net (loss) income | (0.93) | 0.31 | |||
Weighted average number of shares outstanding in per share calculation | |||||
Basic | 96.1 | 66.3 | |||
Diluted | 96.1 | 66.9 | |||
Net (loss) income | $ | (89) | $ | 21 | |
Other comprehensive (loss) income | (12) | 32 | |||
Comprehensive (loss) income | $ | (101) | $ | 53 | |
TEREX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) (in millions, except par value) | |||||
March 31, 2026 | December 31, 2025 | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 392 | $ | 772 | |
Other current assets | 2,779 | 1,953 | |||
Total current assets | 3,171 | 2,725 | |||
Non-current assets | |||||
Property, plant and equipment – net | 935 | 760 | |||
Other non-current assets | 6,082 | 2,654 | |||
Total non-current assets | 7,017 | 3,414 | |||
Total assets | $ | 10,188 | $ | 6,139 | |
Liabilities and Stockholders' Equity | |||||
Current liabilities | |||||
Current portion of long-term debt | $ | 4 | $ | 6 | |
Other current liabilities | 1,720 | 1,181 | |||
Total current liabilities | 1,724 | 1,187 | |||
Non-current liabilities | |||||
Long-term debt, less current portion | 2,745 | 2,578 | |||
Other non-current liabilities | 897 | 279 | |||
Total non-current liabilities | 3,642 | 2,857 | |||
Total liabilities | 5,366 | 4,044 | |||
Total stockholders' equity | 4,822 | 2,095 | |||
Total liabilities and stockholders' equity | $ | 10,188 | $ | 6,139 | |
TEREX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) (in millions) | |||||
Three Months Ended March 31, | |||||
2026 | 2025 | ||||
Operating Activities | |||||
Net (loss) income | $ | (89) | $ | 21 | |
Depreciation and amortization | 77 | 39 | |||
Changes in operating assets and liabilities and non-cash charges | (19) | (81) | |||
Net cash used in operating activities | (31) | (21) | |||
Investing Activities | |||||
Capital expenditures | (26) | (36) | |||
Other investing activities, net | (441) | 10 | |||
Net cash used in investing activities | (467) | (26) | |||
Financing Activities | |||||
Net cash provided by (used in) financing activities | 122 | (50) | |||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (4) | 7 | |||
Net Decrease in Cash and Cash Equivalents | (380) | (90) | |||
Cash and Cash Equivalents at Beginning of Period | 772 | 388 | |||
Cash and Cash Equivalents at End of Period | $ | 392 | $ | 298 | |
TEREX CORPORATION AND SUBSIDIARIES SEGMENT RESULTS DISCLOSURE (unaudited) (in millions) | ||||||
Q1 | ||||||
2026 | 2025 | |||||
% of | % of | |||||
Net | Net | |||||
Consolidated | ||||||
Net sales | $ | 1,734 | $ | 1,229 | ||
Adjusted EBITDA | 173 | 9.9 % | 128 | 10.4 % | ||
ES | ||||||
Net sales | $ | 412 | $ | 399 | ||
Adjusted EBITDA | 74 | 18.0 % | 81 | 20.3 % | ||
MP | ||||||
Net sales | $ | 419 | $ | 382 | ||
Adjusted EBITDA | 63 | 15.0 % | 43 | 11.2 % | ||
SV | ||||||
Net sales | $ | 436 | $ | — | ||
Adjusted EBITDA | 62 | 14.2 % | — | * | ||
Aerials | ||||||
Net sales | $ | 469 | $ | 450 | ||
Adjusted EBITDA | — | 0.1 % | 20 | 4.4 % | ||
Corp and Other / | ||||||
Net sales | $ | (2) | $ | (2) | ||
Adjusted EBITDA | (26) | * | (16) | * | ||
* 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 (
The amounts described below are unaudited, are reported in millions of
2026 Outlook
The Company's 2026 outlook for segment operating margin, earnings per share, EBITDA, free cash flow, and free cash flow conversion are non-GAAP financial measures because they exclude the impact of potential future acquisitions, divestitures, restructuring, tariffs, trade policies and other unusual items. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their 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 2026 GAAP financial results. This forward looking information provides guidance to investors about the Company's 2026 Outlook 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 that is defined as Net cash provided by (used in) operating activities less Capital expenditures, net of proceeds from sale of capital assets. The Company believes this measure provides management and investors further useful information on cash generation or use in our primary operations and the efficiency with which the Company converts earnings into cash. The following table reconciles Net cash provided by (used in) operating activities to free cash flow (in millions):
Three Months Ended March 31, | ||||
2026 | 2025 | |||
Net cash used in operating activities | $ (31) | $ (21) | ||
Capital expenditures, net of proceeds from sale of | (26) | (34) | ||
Free cash (outflow) | $ (57) | $ (55) | ||
GAAP to Non-GAAP Reconciliation: Q1 2026 | |||||||||
Q1 2026 GAAP | Restructuring | Deal related | Purchase | Divestitures | Tax | Q1 2026 Adjusted | |||
Net Sales | $ | 1,734 | — | — | — | — | — | $ | 1,734 |
Gross Profit | 206 | 1 | — | 118 | — | — | 325 | ||
% of Sales | 11.9 % | 18.8 % | |||||||
SG&A | (241) | — | 68 | 1 | (3) | — | (175) | ||
Amortization of Purchased | (47) | — | — | 47 | — | — | — | ||
SG&A % of Sales | (13.9 %) | (10.1 %) | |||||||
Operating (Loss) Profit | $ | (82) | 1 | 68 | 166 | (3) | — | $ | 150 |
Operating Margin | (4.7 %) | 8.6 % | |||||||
Net Interest (Expense) Income | (43) | — | — | — | — | — | (43) | ||
Other (Expense) Income - Net | (1) | — | — | — | — | — | (1) | ||
(Loss) Income Before Income | (126) | 1 | 68 | 166 | (3) | — | 106 | ||
Benefit From (Provision for) | 33 | — | (10) | (39) | 1 | 3 | (12) | ||
Effective Tax Rate | 26.5 % | 11.0 % | |||||||
(Loss) Income from | $ | (93) | 1 | 58 | 127 | (2) | 3 | $ | 94 |
Earnings (Loss) per Share | $ | (0.97) | $ 0.01 | $ 0.61 | $ 1.32 | $ (0.02) | $ 0.03 | $ | 0.98 |
GAAP to Non-GAAP Reconciliation: Q1 2025 | |||||||||
Q1 2025 GAAP | Restructuring | Deal Related | Purchase | Litigation | Mark to | Q1 2025 Adjusted | |||
Net Sales | $ | 1,229 | — | — | — | — | — | $ | 1,229 |
Gross Profit | 247 | 2 | — | 4 | — | — | 253 | ||
% of Sales | 20.1 % | 20.5 % | |||||||
SG&A | (161) | 4 | 5 | — | 10 | — | (142) | ||
Amortization of Purchased | (17) | — | — | 17 | — | — | — | ||
SG&A % of Sales | (13.1 %) | (11.6 %) | |||||||
Operating Profit | $ | 69 | 6 | 5 | 21 | 10 | — | $ | 111 |
Operating Margin | 5.6 % | 9.1 % | |||||||
Net Interest Income (Expense) | (41) | — | — | — | — | — | (41) | ||
Other Income (Expense) - Net | (2) | — | 1 | — | — | 1 | – | ||
Income (Loss) Before Income | 26 | 6 | 6 | 21 | 10 | 1 | 70 | ||
(Provision for) Benefit From | (5) | (1) | (1) | (5) | (2) | (1) | (15) | ||
Effective Tax Rate | 20.3 % | 21.0 % | |||||||
Net Income (Loss) | $ | 21 | 5 | 5 | 16 | 8 | — | $ | 55 |
Earnings (Loss) per Share | $ | 0.31 | $ 0.07 | $ 0.07 | $ 0.25 | $ 0.13 | $ — | $ | 0.83 |
1Includes previously disclosed adjustments in Q1 2025 pertaining to Accelerated vesting / Severance and Tariff related activity |
Segment Operating Profit and Adjusted Operating Profit: Q1 2026 and Q1 2025 | ||||||||
Three Months Ended | ||||||||
2026 | 2025 | |||||||
ES | MP | SV | Aerials | ES | MP | Aerials | ||
Operating Profit | $ 49 | $ 63 | $ (88) | $ (7) | $ 56 | $ 36 | $ 2 | |
Restructuring and Other | 1 | — | — | — | — | 2 | 2 | |
Purchase Price Accounting | 20 | — | 144 | — | 21 | — | — | |
Litigation Related | — | — | — | — | — | — | 10 | |
Divestitures | — | (5) | 2 | — | — | — | — | |
Adjusted Operating Profit | $ 70 | $ 58 | $ 58 | $ (7) | $ 77 | $ 38 | $ 14 | |
Net Sales | $ 412 | $ 419 | $ 436 | $ 469 | $ 399 | $ 382 | $ 450 | |
OP Margin % | 11.9 % | 15.0 % | (20.2 %) | (1.5 %) | 14.0 % | 9.4 % | 0.4 % | |
Adjusted OP Margin % | 17.0 % | 13.8 % | 13.3 % | (1.5 %) | 19.4 % | 10.0 % | 3.0 % | |
Reconciliation of Q1 2026 Pro Forma Net Sales Performance | |
Three Months Ended | |
2026 Net Sales (as reported) | $ 1,734 |
2025 Net Sales (as reported) | 1,229 |
Less: MP Cranes Impact1 | (28) |
Plus: Specialty Vehicles (Feb 2 - March 31) | 364 |
2025 Net Sales (pro forma) | $ 1,565 |
Pro Forma YoY Change in Net Sales | $ 169 |
11 % | |
1 The Adjusted EBITDA impact from the divested MP Cranes business was |
EBITDA
EBITDA is defined as earnings, before interest, other non-operating income (loss), income (loss) attributable to non-controlling interest, taxes, depreciation and amortization. The Company calculates this by subtracting the following items from Net income (loss): (Gain) loss on disposition of discontinued operations- net of tax; and (Income) loss from discontinued operations – net of tax. Then adds the Provision for (benefit from) income taxes; Interest & Other (Income) Expense; the Depreciation and Amortization amounts reported in the Consolidated Statement of Cash Flows less amortization of debt issuance costs that are recorded in Interest expense. Adjusted EBITDA is defined as EBITDA plus certain SG&A and other income/expenses.
Terex believes that disclosure of EBITDA and Adjusted EBITDA will be helpful to those reviewing its performance, as EBITDA provides information on Terex's ability to meet debt service, capital expenditure and working capital requirements, and is also an indicator of profitability.
Three Months Ended March 31, | |||
2026 | 2025 | ||
Net (loss) income | $ (89) | $ 21 | |
(Gain) loss on disposition of discontinued operations - net of tax | (4) | — | |
Income (loss) from continuing operations | (93) | 21 | |
Interest & Other (Income) Expense | 44 | 43 | |
Provision for (benefit from) income taxes | (33) | 5 | |
Operating (loss) profit | (82) | 69 | |
Depreciation | 23 | 17 | |
Amortization | 54 | 22 | |
Non-Cash Interest Costs | (2) | (2) | |
EBITDA | $ (7) | $ 106 | |
Restructuring and Other | 1 | 6 | |
Deal Related | 68 | 5 | |
Purchase Price Accounting | 114 | 1 | |
Litigation Related | — | 10 | |
Divestitures | (3) | — | |
Adjusted EBITDA | $ 173 | $ 128 | |
Net Sales | $ 1,734 | $ 1,229 | |
EBITDA Margin % | (0.4 %) | 8.7 % | |
Adjusted EBITDA Margin % | 9.9 % | 10.4 % | |
Segment EBITDA and Adjusted EBITDA: Q1 2026 and Q1 2025 | ||||||||
Three Months Ended | ||||||||
2026 | 2025 | |||||||
ES | MP | SV | Aerials | ES | MP | Aerials | ||
Net income (loss)1 | $ 49 | $ 60 | $ (91) | $ (8) | $ 56 | $ 33 | $ 2 | |
Interest expense | — | 3 | 3 | — | — | 3 | — | |
Other expense | — | — | — | 1 | — | — | — | |
Operating (Loss) Profit | $ 49 | $ 63 | $ (88) | $ (7) | $ 56 | $ 36 | $ 2 | |
Depreciation | 4 | 5 | 4 | 7 | 4 | 4 | 6 | |
Amortization | 20 | — | 31 | — | 20 | 1 | — | |
EBITDA | 73 | 68 | (53) | — | 80 | 41 | 8 | |
Restructuring and Other | 1 | — | — | — | — | 2 | 2 | |
Purchase Price Accounting | — | — | 113 | — | 1 | — | — | |
Litigation Related | — | — | — | — | — | — | 10 | |
Divestitures | — | (5) | 2 | — | — | — | — | |
Adjusted EBITDA | $ 74 | $ 63 | $ 62 | $ — | $ 81 | $ 43 | $ 20 | |
Net Sales | $ 412 | $ 419 | $ 436 | $ 469 | $ 399 | $ 382 | $ 450 | |
EBITDA Margin % | 17.7 % | 16.2 % | (12.2 %) | 0.1 % | 20.1 % | 10.8 % | 1.8 % | |
Adjusted EBITDA Margin % | 18.0 % | 15.0 % | 14.2 % | 0.1 % | 20.3 % | 11.2 % | 4.4 % | |
1 Management does not allocate income taxes, interest costs incurred at the Corporate level, and certain other Corporate items to the segments. |
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SOURCE Terex Corporation