Terex Corp
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.44%.
Did TEX Beat Earnings? Q1 2026 Results
Terex Corporation delivered a convincing first-quarter beat in its debut report as a transformed, post-acquisition company, with adjusted EPS of $0.98 clearing the $0.78 consensus estimate by 26.39% and revenue of $1.73 billion topping expectations by 2.05% while rising 41.1% year over year. The headline driver was the February 2026 close of the REV Group acquisition, whose newly formed Specialty Vehicles segment immediately contributed $436 million in net sales and $62 million in adjusted EBITDA at a 14.2% margin, demonstrating early accretion to the portfolio. On a pro forma basis stripping out merger-related purchase price adjustments and deal costs, organic growth came in at 11%, with Materials Processing standing out through margin expansion to 15.0% from 11.2% a year ago. Aerials remained a pressure point, as tariffs and unfavorable mix pushed segment EBITDA to near breakeven. With a backlog of $7.10 billion and a book-to-bill ratio of 109%, Terex reiterated its full-year 2026 outlook for sales of $7.50 billion to $8.10 billion and adjusted EPS of $4.50 to $5.00, targeting roughly $28 million in REV synergies this year alone.
- Accretive addition of Specialty Vehicles segment (REV Group acquisition)
- Higher sales volumes in Materials Processing driven by Aggregates, Material Handling and Recycling
- Price realization and operational efficiency improvements in MP and SV
- Strong throughput and delivery of utilities products in Environmental Solutions
- Positive effects of foreign exchange rates in MP and Aerials
- Tariff headwinds negatively impacting Aerials segment profitability
- Unfavorable product mix in Environmental Solutions and Aerials
“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 $7.1 billion, supported by strong booking trends in Materials Processing, Aerials, and Terex Utilities, provides solid forward visibility. As a result, we are reiterating our full-year outlook.”
Terex CEO, on the earnings call
Forward Guidance & Outlook
Terex reiterated its full-year 2026 outlook: sales of $7.5 billion to $8.1 billion (approximately 5% pro forma growth), EBITDA of $930 million to $1 billion (approximately 12% year-over-year pro forma growth, 12.4% margin at midpoint), adjusted EPS of $4.50 to $5.00, and free cash flow conversion of 80%-90%. The outlook includes 11 months of the new Specialty Vehicles segment, approximately $28 million of realized REV synergies (on track for $75 million annual run-rate within 2 years), excludes divested MP cranes and Midwest RV businesses, assumes current tariff rates remain in place (including recent 232 tariff changes which are expected to be negligible), interest expense of approximately $190 million, a 21% effective tax rate, and full-year average shares outstanding of 111 million. By segment: Environmental Solutions expected mid-single-digit revenue growth off a $1,691 million baseline; Materials Processing expected high-single-digit growth off $1,578 million; Specialty Vehicles expected high-single-digit growth off $2,179 million; Aerials expected flat off $2,060 million.
TEX YoY Financials
TEX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.