Terex (NYSE: TEX) posts 41% Q1 sales surge and backs 2026 EPS outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Terex Corporation delivered a strong start to 2026, boosted by its REV merger and broad-based growth. First quarter sales reached $1.7 billion, up 41% year over year, or 10.8% on a proforma basis, with growth across all legacy segments and the new Specialty Vehicles unit.
EPS rose 18% to $0.98, including about $0.10 of one-time tax benefit, while EBITDA margin was 9.9%, slightly lower due to new tariffs. Backlog increased to $7.1 billion and proforma bookings were $2.1 billion, supporting Terex’s decision to reaffirm its 2026 outlook for $7.5–$8.1 billion of sales and $4.50–$5.00 of EPS, including $28 million of expected merger synergies this year.
Positive
- Strong top-line and EPS growth: Q1 2026 sales rose 41% to $1.7 billion and EPS increased 18% to $0.98, with 10.8% proforma revenue growth and contributions from all major segments including the new Specialty Vehicles unit.
- Reaffirmed 2026 outlook with synergy delivery: Management maintained guidance for $7.5–$8.1 billion of 2026 sales, $930 million–$1 billion of EBITDA, and $4.50–$5.00 EPS, including $28 million of expected cost synergies from the REV merger this year and a $75 million run-rate target.
Negative
- Margin pressure from tariffs: Q1 2026 EBITDA margin declined 50 basis points year over year to 9.9%, primarily due to tariffs that were not in effect in the prior-year period, with Aerials particularly impacted.
- Higher share count dilutes per-share metrics: Q1 EPS of $0.98 was earned on 96.1 million shares outstanding versus 66.9 million a year earlier, and management expects approximately 115 million shares for quarters two through four of 2026.
Insights
Terex posts strong Q1 growth, maintains upbeat 2026 guidance.
Terex grew Q1 2026 sales to $1.7 billion, a 41% increase helped by the REV merger and solid organic growth. Proforma revenue rose 10.8%, with especially strong contributions from Specialty Vehicles, Materials Processing, and Terex Utilities.
Profitability was resilient despite tariffs. EBITDA margin of 9.9% was only 50 basis points lower year over year, while EPS increased to $0.98, including a one-time tax benefit. Working capital efficiency improved, with net working capital at 16.7% of sales versus 26% a year earlier, and net leverage at 2.4x.
The company reaffirmed its 2026 outlook of $7.5–$8.1 billion in sales, $930 million–$1 billion in EBITDA, and EPS of $4.50–$5.00, including $28 million of expected synergies from the REV transaction by 2026. Segment commentary highlights healthy demand, strong backlog, and expectations for margin improvement through the year, particularly as Aerials recovers seasonally.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $1.7 billion
Q1 2026 EPS: $0.98 per share
Q1 2026 EBITDA Margin: 9.9%
+5 more
8 metrics
Q1 2026 Revenue
$1.7 billion
Up $505 million or 41% year over year
Q1 2026 EPS
$0.98 per share
18% year-over-year increase, includes ~$0.10 one-time tax benefit
Q1 2026 EBITDA Margin
9.9%
Down 50 basis points versus prior year due to tariffs
Quarter-ending Backlog
$7.1 billion
Supported by 109% proforma book-to-bill ratio
MP Segment Sales
$419 million
18.3% higher year over year on a proforma basis
SV Segment Revenue
$436 million
February–March 2026, up 20% versus same period last year
2026 Sales Outlook
$7.5–$8.1 billion
Approximately 5% proforma growth expected for full year 2026
2026 EPS Outlook
$4.50–$5.00
Full-year 2026 earnings per share guidance
Key Terms
proforma, EBITDA margin, book-to-bill ratio, free cash conversion, +2 more
6 terms
proforma financial
"We grew sales by 11% on a proforma basis, including growth in all four segments"
Proforma describes financial numbers that have been adjusted to show how results would look under a specific scenario or after excluding certain items, like one-time costs or a recent acquisition. Investors use proforma figures as a “what-if” snapshot to compare performance on a more apples-to-apples basis, but they should note which adjustments were made because these tuned figures can make results look clearer than the unadjusted reality.
EBITDA margin financial
"Q1 EBITDA margin was 9.9%, down 50 basis points versus the prior year"
EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.
book-to-bill ratio financial
"Q1 proforma bookings of $2.1 billion represented 109% book-to-bill ratio"
The book-to-bill ratio compares the value of new orders a company receives to the value of products it ships out or bills for over a certain period. If the ratio is above 1, it means the company is getting more orders than it is completing, which can indicate growth. If it's below 1, it suggests demand is slowing down.
free cash conversion financial
"We expect 2026 free cash conversion of between 80% and 90% of net income"
net leverage ratio financial
"We also reduced our net leverage ratio to 2.4x and remained disciplined"
The net leverage ratio measures how much debt a company has compared to its available assets or earnings, after accounting for its cash and liquid assets. It helps investors understand how heavily a company relies on borrowed money to finance its operations and growth. A higher ratio indicates greater financial risk, while a lower ratio suggests a more cautious approach to borrowing.
synergies financial
"we are on track to realize approximately $28 million in 2026 by eliminating duplicate overhead"
Synergies are the extra benefits—such as lower costs, higher sales, or improved efficiency—that result when two businesses combine or when different parts of a company cooperate. Investors watch synergies because they can boost future profits and cash flow, supporting a higher valuation, but they depend on effective integration and are often estimated rather than guaranteed; imagine two households merging to share rent and eliminate duplicate expenses.
Earnings Snapshot
Revenue: $1.7 billion · Guidance included
Q1 2026
Revenue
$1.7 billion
+41% year over year
EPS
$0.98
+18% year over year
EBITDA Margin
9.9%
-50 bps year over year
Backlog
$7.1 billion
Higher sequentially and year over year
Guidance
For 2026, Terex expects $7.5–$8.1 billion in sales, $930 million–$1 billion in proforma EBITDA (12.4% margin at midpoint), and EPS of $4.50–$5.00, including about $28 million of REV synergies and a 21% effective tax rate.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) May 1, 2026
(Exact Name of Registrant as Specified in Charter)
| (State or Other Jurisdiction | (Commission | (IRS Employer | ||||||
| of Incorporation) | File Number) | Identification No.) | ||||||
| (Address of Principal Executive Offices) | (Zip Code) | ||||||||||
Registrant's telephone number, including area code (203 ) 222-7170
| NOT APPLICABLE | ||
| (Former Name or Former Address, if Changed Since Last Report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). | |||||
| Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | ||||
Item 2.02. Results of Operations and Financial Condition.
Attached as Exhibit 99.1 to this Form 8-K of Terex Corporation (“Terex”) are the prepared statements of Terex from its May 1, 2026, conference call providing certain first quarter financial results. In addition, a replay of the teleconference is available to the public at https://investors.terex.com.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 Prepared statements of Terex Corporation from its conference call held on May 1, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 4, 2026
| TEREX CORPORATION | ||
By: /s/Jennifer Kong-Picarello | ||
| Jennifer Kong-Picarello | ||
| Senior Vice President | ||
| and Chief Financial Officer | ||
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First Quarter 2026 Earnings Release Conference Call
May 1, 2026
Derek Everitt – Terex Corporation – Vice President, Investor Relations
Good morning and welcome to the Terex Corporation (“Terex” or “Company”) first quarter 2026 earnings conference call. A copy of the press release and presentation slides are posted on our Investor Relations website at investors.terex.com. In addition, the replay and slide presentation will be available on our website. We are joined today by Simon Meester, President and Chief Executive Officer, and Jennifer Kong, Senior Vice President and Chief Financial Officer. Their prepared remarks will be followed by a question-and-answer.
Please turn to slide 2 of the presentation, which reflects our safe harbor statement. Today’s conference call contains forward-looking statements, which are subject to risks that could cause actual results to be materially different from those expressed or implied. These risks are described in greater detail in the earnings materials and in our reports filed with the Securities and Exchange Commission. On this call, we will be discussing non-GAAP financial information, including adjusted figures that we believe are useful in evaluating the Company’s operating performance. Reconciliations for these non-GAAP measures can be found in the conference call materials. Please turn to slide 3 and I’ll hand it over to Simon Meester.
Simon A. Meester – Terex Corporation – President and Chief Executive Officer
Thanks, Derek, and good morning. I would like to welcome everyone to our earnings call and appreciate your interest in Terex. We are off to a good start for the year, including our new Specialty Vehicles (“SV”) segment, which was in the portfolio for two months of the period and already making a meaningful contribution to the group. We grew sales by 11% on a proforma basis, including growth in all four segments, led by SV which grew 20% compared to the same period last year. Terex Utilities was our fastest growing business this quarter. The Utilities team is doing an excellent job ramping up production in a very bullish market. And earnings per share (“EPS”) increased 18% year-over-year to $0.98 cents, or a 6% improvement with a normalized tax rate. Quarter-ending backlog increased to $7.1 billion, which includes strong bookings trends particularly in Materials Processing (“MP”), Aerials (“Aerials”) and Terex Utilities, providing good forward visibility and consistent with our expectations for the year. As a result, we are reiterating our full-year outlook and with the recent additions to our portfolio remain laser focused on execution and integration.
Which brings me to slide 4. The REV integration is progressing as planned. We are executing the same playbook we used for the Environmental Solutions Group (“ESG”) integration, which we completed ahead of schedule and within budget, with synergies above target. For the synergies with REV, we are on track to realize approximately $28 million in 2026 by eliminating duplicate overhead, and have line of sight to achieving a $75 million run‑rate within our 24 month target. With regards to the integration effort, all workstreams are at or ahead of schedule. In addition, I am particularly encouraged by the way the legacy Terex and legacy REV teams are working together and the two cultures are meshing really well.
Last week, the SV team showcased our 3rd Eye digital solution at the fire and emergency trade show in Indianapolis and were very pleased with the level of interest it created. 3rd Eye is an AI-based solution that our Environmental Solutions (“ES”) segment developed for their customers to provide situational awareness around the vehicle and add tangible commercial and operational benefits. It’s an integral part of what is now referred to as Smart Truck technology in the waste collection sector. Our digital team has already developed applications that leverage this technology for utility vehicles, cement mixers and have now added fire and emergency vehicles to their scope. So, good progress on the REV integration and the synergies front. We are also pleased with the progress we are making with the strategic review of our Aerials business. We continue to engage with multiple interested parties and are working towards an outcome that maximizes value for our shareholders. We do not have any specific details to share at this time, but we will continue to update you as the process unfolds.
Moving to page 5. Over the past two years we deliberately shifted our portfolio’s end market exposure to more U.S. based, resilient and predictable sectors with attractive growth profiles. As a result, Terex is far less exposed to global macro dynamics and trade policy than in the past. Based on proforma 2025 results, about 80% of our revenue was generated in North America, of which roughly 85% was manufactured in the United States. Our end markets are more stable, and our supply chain is more durable. Touching briefly on our primary verticals. Demand for fire and emergency vehicles continues to be strong. We are making strategic investments to improve production efficiency and increase capacity in key areas such as ladder trucks, where we are increasing capacity by 35% at our Ocala, Florida plant, and in South Dakota we are increasing capacity for the pre-engineered S-180 Pumpers. Both investments will help to reduce lead times and with the S-180 Pumper, provide our customers with a lower cost alternative that we can deliver in about nine months. In waste and recycling, our customers are indicating that 2026 demand will be more skewed towards the second half, including anticipated pre-buys ahead of the 2027 EPA changes. Heil is well positioned to outperform the market again this year due to its product portfolio, production quality and its lead times. We continue to anticipate growth in
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aftermarket, retrofits and digital sales this year. And, of course, the long-term fundamental growth drivers for the segment remain intact. Utilities is poised for strong growth for 2026 and beyond, as demand on the U.S. grid continues to increase, particularly from data center expansion and AI use cases. Industry forecasts call for 8% to 15% annual capex growth through 2030. And we’re making good progress with our phased investment to bring 30% more capacity on-line by the end of next year. And finally in construction, we see robust infrastructure activity supported by government funding. The pipeline of mega projects provides a tailwind through 2030. MP continues to grow its business in India and we are starting to see improvements in Europe and Australia, although oil prices can potentially hamper some of that growth given the more vulnerable state both of those markets are currently in. In summary, in the past two years, we have built a highly resilient portfolio of businesses that enable us to navigate short-term macro and market specific dynamics and deliver on our financial objectives predictably and consistently going forward. And, with that, I will turn it over to Jenn.
Jennifer Kong-Picarello – Terex Corporation – Senior Vice President and Chief Financial Officer
Thank you, Simon, and good morning, everyone. Let’s look at our Q1 results on slide 6. Our operational performance was in line with our expectations. We grew sales to $1.7 billion, an increase of $505 million or 41% compared with the prior year on a reported basis. The growth was due to the merger with REV Group that closed on February 2nd and growth in each of our legacy segments. On a proforma basis we grew 10.8%, led by strong growth in SV, MP and Terex Utilities. Excluding the impact of the merger and the sale of our Crane and Midwest businesses, organic revenue increased 8.1% with increased sales across all legacy segments. Q1 EBITDA margin was 9.9%, down 50 basis points versus the prior year, primarily driven by tariffs, which were not in effect in the prior year period, partially offset by improved performance in MP and SV. Interest and other expenses of $44 million was $1 million lower than Q1 last year and the first quarter effective tax rate was 11%, driven by favorable one-time tax attributes. EPS for the quarter was $0.98, which included approximately $0.10 of one-time tax benefit when the Q1 rate is compared to our 2026 full year expected tax rate of 21%. Our operational EPS improvement was $0.05 compared to last year, despite the tariff headwinds. Notably our current Q1 EPS is based on 96.1 million shares outstanding, up from 66.9 million in the first quarter of 2025. Free cash outflow in the quarter was $57 million, consistent with Q1 last year. Terex historical cash generation is seasonally weighted toward the back half of the year, with first quarter cash outflows reversing as volume increases and working capital unwinds through the remainder of the year. Importantly, our newer businesses, particularly SV, have a more favorable working capital profile with significantly less seasonality. As a result, our Q1 net working capital as a percentage of sales improved to 16.7% compared to 26% in the same period last year. We also reduced our net leverage ratio to 2.4x and remained disciplined with our capital structure focused on maximizing value for our shareholders.
Please turn to slide 7 to review our segment results, starting with ES. As expected, sales growth of 3.3% in ES was driven by Terex Utilities as they begin to ramp up to meet strong demand for bucket trucks, digger derricks and parts and services. Q1 EBITDA margin of 18% was lower than the prior year due to a higher mix of Utilities volume where margins continue to improve, coupled with lower ESG volume, partially offset by higher synergy realization.
Turning to slide 8. MP had a very good first quarter, growing bookings and sales, and expanding operating margin. Sales of $419 million were 18.3% higher than the prior year on a proforma basis, or 12% higher excluding the impact of foreign exchange rates. Growth in aggregates was the primary driver, as sales grew in every region. The handling and environmental verticals also grew in the quarter. MP EBITDA margin continued to improve, reaching 15% in the quarter as higher volume, efficiency improvements and pricing actions drove the 310 basis point increase over the prior year. The margin actions and increasing bookings and backlog sets MP up well for the balance of 2026.
Moving to slide 9. Our new SV segment got off to a great start, generating $436 million of revenue in February and March, representing growth of 20% compared with the same period last year. The growth was a combination of price realization and higher unit deliveries across all product lines, partially due to weather-related delivery timing. EBITDA margin increased by 160 basis points to 14.2% driven by higher throughput, price realization and improved operational efficiency.
Turning to page 10. Aerials had another strong bookings quarter, with 132% book-to-bill, generating a $1 billion backlog, giving us forward visibility as we head into the annual selling season. Sales in the quarter were $469 million, up 4.2% year-over-year largely due to positive foreign exchange rates. As expected, Aerials EBITDA was breakeven because Q1 is typically a seasonally low volume quarter, and due to tariffs which the business did not incur this time last year. In addition, the business faced some temporary unfavorable mix but expects favorable price/cost dynamics for the remainder of the year.
Turning to bookings on slide 11. Before going into each segment, for Terex overall, Q1 proforma bookings of $2.1 billion represented 109% book-to-bill ratio and led to modestly higher backlog on a sequential and year-over-year basis. In ES, Q1 bookings were $347 million, slightly lower than prior quarters due to the timing of several large Utilities bookings that were recorded in Q4. We expect booking levels in Utilities to remain strong, and our focus remains on ramping up throughput to meet demand. On the ESG side we expect orders to be more heavily weighted to the second half of the year, including additional orders for delivery in advance of the
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new 2027 EPA regulations. MP bookings of $623 million reflects 38% year-over-year growth on a proforma basis. While aggregates was the main driver, bookings also increased in Concrete, Material Handling, and Environmental. MP ended the quarter with $594 million in backlog, up $205 million or 53% versus the prior year setting it up for strong performance through 2026. SV bookings came in at $501M. As you can see on the chart, orders can be lumpy in the segment, but overall, the backlog remains elevated and the team is focusing on bringing lead-times down with calculated investments. Finally, Aerials bookings of $620 million in Q1 combined with $971 million in Q4 is 21% higher than the same six-month period a year ago. While growth was strongest in North America, we also saw modest growth in EMEA, providing good visibility for the balance of 2026.
Now turn to slide 12 for our 2026 outlook. We are operating in a complex environment with many macroeconomic variables and geo-political uncertainties, and results could change negatively or positively. The outlook we are providing today reflects our current portfolio and does not account for any cost to achieve the synergies, purchase accounting adjustments, nor other non-recurring items. Our first quarter performance, bookings trends and backlog of $7.1 billion supports re-confirming the full year 2026 outlook that we provided in February. Overall, we continue to expect 2026 sales to grow approximately 5% on a proforma basis to $7.5 to $8.1 billion. We further expect proforma EBITDA to grow by approximately $100 million or 12% year over year to between $930 million and $1 billion, or 12.4% EBITDA margin at the mid-point. Included in our EBITDA outlook is approximately $28 million of synergies that we are well on our way to realizing. This is in line with our goal to achieve $75 million of run rate synergies within two years of closing the merger. We continue to anticipate interest and other expenses to be approximately $190 million, consistent with proforma 2025, based on average debt outstanding of about $2.7 billion. The effective tax rate for the full year is still expected to be 21%. We expect 2026 EPS between $4.50 and $5.00. Please note, the share count for quarters two through four will be approximately 115 million. For modeling purposes, approximately 25% of our full year EPS is anticipated in the second quarter as we expect profitability in Aerials and ES to improve in the second half. We expect 2026 free cash conversion of between 80% and 90% of net income. Our net leverage is expected to improve over the course of the year.
Looking at our segments, we expect ES to grow mid-single digits in 2026, led by Utilities where we continue to ramp up production to meet strong demand. We expect margin to improve in the second half due to higher volume including digital and aftermarket, productivity improvements, and improved customer mix. We do not foresee a material impact from recent tariff changes on ES performance. Turning to MP, the strong start to the year and growth in bookings and backlog gives us confidence in our high single digit proforma growth outlook for the segment, largely driven by aggregates. We also expect margins to improve through 2026 due to higher volume, productivity and favorable price cost. It’s important to understand that mobile crushing and screening equipment, the primary products in the aggregate vertical that we import from the U.K. are not subject to 232 tariffs. Our new SV segment got off to a great start, and with roughly two years of backlog, provides very good visibility for the balance of the year. We continue to expect sales growth of high single digits from an 11-month, proforma, prior year total of $2.2 billion. We also continue to expect meaningful margin improvement compared to the prior year EBITDA margin of approximately 12.5%, due to higher throughput, price realization and on-going operational improvements. From a modeling perspective, we expect run rate revenue and margins in Q2 and Q3 to be similar to Q1 with a modest seasonal step down in Q4 due to fewer working days. We do not foresee a material impact from recent tariff changes on SV performance. Finally, in Aerials we continue to anticipate 2026 sales and margins to be similar to 2025. We have good visibility with over $1 billion in backlog following back-to-back quarters with strong bookings. Margins are expected to improve sequentially in the second and third quarters, with higher volume, price realization, favorable customer mix and disciplined cost management. Even with the higher impact of tariffs versus last year, we expect Aerials to be largely price/cost neutral for the full year. With Q1 behind us, healthy backlog and fleet utilization, we expect the business to have bottomed and start its path to cyclical recovery. In summary, given that we are only one quarter into the year, and there are macro variables that we do not control, we believe it is prudent to hold our 2026 outlook at this point in time. We will obviously refine our outlook as the year unfolds. Please turn to slide 14, and I will turn it back to Simon.
Simon A. Meester – Terex Corporation – President and Chief Executive Officer
Thanks, Jenn. We delivered a solid start to 2026, with strength in MP and Utilities and a strong initial contribution from our new SV segment. Integration execution is progressing as planned, and we are on track to deliver our synergy commitments. Our portfolio is more resilient and predictable, with greater North America exposure and less sensitive to macro volatility and tariff changes than in prior years. Our teams are focused on disciplined execution against our strategy and our annual plan as we build on the progress we have made to date. And with that, I would like to open it up for questions. Operator?
3
FAQ
How did Terex (TEX) perform in Q1 2026 in terms of revenue and growth?
Terex generated Q1 2026 sales of $1.7 billion, up 41% year over year. On a proforma basis, which includes the REV merger, revenue grew 10.8%, with all legacy segments contributing and strong growth from the new Specialty Vehicles segment and Materials Processing.
What was Terex (TEX) Q1 2026 EPS and profitability profile?
Q1 2026 EPS was $0.98, an 18% increase versus last year, including about $0.10 of one-time tax benefit. EBITDA margin was 9.9%, down 50 basis points year over year, mainly due to tariffs, while operational EPS still improved by $0.05 compared with the prior year.
What 2026 full-year outlook did Terex (TEX) reaffirm?
Terex reaffirmed 2026 sales guidance of $7.5–$8.1 billion, implying about 5% proforma growth. It expects proforma EBITDA of $930 million–$1 billion, a roughly 12% year-over-year increase, and EPS between $4.50 and $5.00, supported by strong backlog and bookings trends.
How significant are REV merger synergies for Terex (TEX) in 2026?
Terex expects approximately $28 million of REV-related synergies to be realized in 2026, mainly from eliminating duplicate overhead and operational improvements. The company also has a line of sight to achieving a $75 million synergy run-rate within 24 months of closing the merger.
What is Terex (TEX) backlog and bookings position after Q1 2026?
Terex reported quarter-ending backlog of $7.1 billion, supported by Q1 proforma bookings of $2.1 billion, a 109% book-to-bill ratio. Segments like Aerials, Materials Processing, and Utilities showed strong bookings, providing solid visibility for the remainder of 2026.
How did Terex (TEX) manage working capital and leverage in Q1 2026?
Net working capital improved to 16.7% of sales in Q1 2026, down from 26% a year earlier, driven partly by the profile of new businesses like Specialty Vehicles. Terex reduced its net leverage ratio to 2.4x, while free cash outflow of $57 million reflected normal seasonal patterns.