Terex Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.31%.
Did TEX Beat Earnings? Q4 2025 Results
Terex closed out 2025 with a mixed but broadly constructive fourth quarter, posting adjusted EPS of $1.12 against a $1.13 consensus estimate, a narrow miss of 0.88%, while revenue of $1.32 billion edged 1.22% above expectations and grew 6.2% year-over-year, underscoring the scale benefits of the recently integrated Environmental Solutions Group. The quarter's headline story was a surge in bookings, which climbed 32% year-over-year on a pro forma basis to $1.90 billion, generating a book-to-bill ratio of 145% and signaling durable demand heading into the new year. Aerials, however, remained a pressure point, with adjusted operating margins compressed to just 2.6% as expanded Section 232 tariffs proved difficult to fully offset. With the REV Group merger now adding a fourth Specialty Vehicles segment, Terex guided 2026 net sales to a range of $7.50 billion to $8.10 billion, with adjusted EPS of $4.50 to $5.00, though analysts are weighing whether the raised outlook reflects genuine momentum or late-cycle optimism against an uncertain tariff backdrop.
- Successful integration of ESG driving Environmental Solutions growth
- Strong Q4 bookings of $1.9 billion, up 32% YoY on pro forma basis, with 145% book-to-bill
- Cost productivity actions and pricing improvements across segments
- Higher volume in Environmental Solutions and Materials Processing offset tariff headwinds
- Aerials growth in North America and EMEA
- Full-year free cash flow of $325 million representing 147% cash conversion
“We concluded a transformational year for Terex, with the successful integration of ESG and the initiation of the merger with REV, coupled with solid execution by our legacy businesses in a very dynamic environment. The team navigated multiple macro and market headwinds to deliver financial results in line with our original 2025 guidance, while transforming our portfolio for the long-term.”
Terex CEO, on the earnings call
Forward Guidance & Outlook
For 2026, Terex expects net sales of $7.5 billion to $8.1 billion (~5% pro forma growth), including 11 months of the REV Specialty Vehicles segment. EBITDA is projected at $930 million to $1 billion, up ~$100 million or ~12% year-over-year on a pro forma basis, with a 12.4% EBITDA margin at midpoint. Adjusted EPS is guided at $4.50 to $5.00. The outlook assumes ~$28 million of realized synergies (on-target for $75 million annual run-rate within 2 years), current tariff rates remaining in place, interest expense of ~$190 million, an effective tax rate of ~21%, and diluted shares of ~111 million. By segment: Environmental Solutions expects mid-single-digit revenue growth, Materials Processing and Specialty Vehicles (REV) expect high-single-digit growth, and Aerials expects flat revenue. Free cash flow conversion is projected at 80%-90%.
TEX YoY Financials
TEX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.