Terex Corporation, a global leader in specialized equipment solutions, serving essential sectors such as emergency services, waste and recycling, utilities, and construction, announced its results for the fourth quarter and full-year 2025.
RV PRO reported on the completion of the Terex Corp. and REV Group merger earlier this month. Yesterday, RV PRO reported on Alliance RV’s acquisition of Midwest Automotive Designs, which previously operated within REV Group’s Recreational Vehicles segment.
CEO Commentary
“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,” said Simon Meester, Terex president and chief executive officer. He added, “I am very proud of our team adapting quickly to changes in trade policy and market dynamics throughout the year while continuing to innovate, improve operations and deliver exciting new products to our customers. We head into 2026 with considerable momentum from strong Q4 bookings and backlog levels. We will focus on execution, successfully integrating REV and delivering on our synergy targets.”
Fourth Quarter Operational & Financial Highlights
- Bookings of $1.9 billion grew 32% year-over-year on a pro forma basis, including growth in all three segments, reflects a book-to-bill of 145%.
- Net sales of $1.3 billion in the fourth quarter of 2025 were 6.2% higher than the fourth quarter of 2024. Excluding ESG, legacy revenue increased 5.4% year-over-year, driven by higher sales in Aerials and Utilities business.
- Operating profit was $137 million, or 10.4% of net sales, compared to $53 million, or 4.3% of net sales, during the prior year. Adjusted operating profit was $123 million, or 9.3% of net sales for the fourth quarter of 2025, compared to $97 million, or 7.8% of net sales during the prior year. The higher year-over-year margin resulted from improvements in all three segments as cost productivity actions and higher volume in Environmental Solutions (“ES”) and Materials Processing (“MP”) more than offset higher tariff costs and other inflation.
- Net income was $63 million, or $0.95 per share, compared to $(2) million, or $(0.03) per share, in the fourth quarter of 2024. Adjusted net income was $74 million, or $1.12 per share for the fourth quarter of 2025, compared to $52 million, or $0.77 per share, in the fourth quarter of 2024.
Full-Year 2025 Operational & Financial Highlights
- Net sales of $5.4 billion for the full-year 2025 were 5.7% higher compared to $5.1 billion for the full-year 2024 as the addition of ESG offset declines in Aerials and MP. Excluding ESG, legacy revenue decreased 11.0%.
- Operating profit was $475 million, or 8.8% of net sales for the full-year 2025, compared to $526 million or 10.3% of net sales in the prior year. Adjusted operating profit was $566 million, or 10.4% of net sales for the full-year 2025, compared to $582 million, or 11.3% of net sales in the prior year. The decrease was primarily driven by lower Aerials and MP sales volume, unfavorable manufacturing variances from deliberate production cuts and tariffs, partially offset by cost productivity actions, and the accretive addition of ESG.
- Net income for the full-year 2025 was $221 million, or $3.33 per share, compared to $335 million, or $4.96 per share, in the prior year. Adjusted net income was $327 million, or $4.93 per share for the full-year 2025, compared to $413 million, or $6.11 per share, in the prior year.
- The effective tax rate was 24.3% for the full-year 2025, compared to 17.8% in the prior year. The adjusted tax rate was 17.2% for the full-year in both 2025 and 2024.
CFO Commentary
Jennifer Kong-Picarello, senior vice president and chief financial officer, said, “I am very pleased that we delivered on all our key 2025 financial expectations, including $325 million of free cash flow reflecting 147% cash conversion. By completing the REV merger, we enter 2026 with even more opportunities to create value for our shareholders.”
