Terex Corp. Reports Q2 Revenue Growth in All Segments

Terex Corporation announced its results for the second quarter 2026.

The company’s RV Segment includes the Decatur, Indiana-based American Coach, Fleetwood RV and Holiday Rambler brands and Renegade RV in Bristol, Indiana.

“Terex delivered a strong second quarter, with revenue growth in all segments, improved profitability, and positive booking trends that reflect healthy demand across much of the portfolio,” said Simon Meester, Terex president and CEO.

“Our second quarter performance reflects strength in key businesses, strong execution by our teams, and increasing operational momentum across the company,” he said. “While conditions remain mixed in certain end markets, demand continues to be favorable across most of our significantly improved portfolio, and we are making meaningful progress on our integration plans as we realize the benefits of expected synergies. With solid backlog visibility, improving demand indicators, and an operational plan that supports stronger second-half performance, we are raising our full-year outlook.”

Second Quarter Operational & Financial Highlights

• $6.9 billion backlog increased $257 million, or 3.9% on a pro forma basis, versus the prior year, driven by increased bookings in each segment. Bookings of $2.0 billion increased 25.2% year over year on a pro forma basis and reflects a book-to-bill of 90%.
• Net sales of $2.2 billion were 50.5% higher than the second quarter of 2025 on a reported basis.  Pro forma net sales grew by 8.5% year over year including growth in every segment.
• Adjusted¹ EBITDA of $269 million increased on a pro forma basis by $26 million, or 10.7%, compared to the second quarter of 2025. The year-over-year change was driven by meaningful improvements in the Materials Processing and Specialty Vehicles segments.
• Net income was $110 million, or $0.96 per share, compared to $72 million, or $1.09 per share, in the second quarter of 2025.  Adjusted¹ net income was $156 million, or $1.37 per share for the second quarter of 2026, compared to $98 million, or $1.49 per share, in the second quarter of 2025.

Business Segment Review

Environmental Solutions

• Net sales of $456 million were up 5.9% compared to the second quarter of 2025, driven by increased throughput and delivery of utilities products, partially offset by lower shipments of refuse collection vehicles (RCVs).
• Adjusted¹ EBITDA was $80 million or 17.5% of net sales for the second quarter of 2026, compared to $86 million, or 20.0% of net sales in the prior year. The decrease was driven by greater contribution from Utilities, inefficiencies related to a production ramp up in Utilities, and under-absorption associated with lower RCV volume within ESG.

Materials Processing

• Net sales of $464 million were up 2.2% or $10 million year over year. On a pro forma¹³ basis, net sales were up 11.1% year over year, driven by increased demand, particularly for mobile crushers in the U.S. supported by road construction, infrastructure projects, and select commercial building activities.
• Adjusted¹ EBITDA was $87 million, or 18.8% of net sales for the second quarter of 2026, compared to the prior year of $62 million, or 13.8% of net sales and $60 million, or 14.4% of net sales, on a pro forma¹³ basis. The improvement was driven by favorable mix, price and higher volume absorption, partially offset by increased transportation costs.

Specialty Vehicles

• Net sales of $650 million were up 6.2% year over year on a pro forma¹³ basis, driven by increased shipments of fire apparatus, and price realization.
• Adjusted¹ EBITDA was $94 million, or 14.5% of net sales for the second quarter of 2026, compared to $76 million, or 12.4% of net sales on a pro forma¹³ basis in the prior year. The increase was primarily due to higher sales volume, favorable mix, price realization, and operational efficiency, partially offset by inflationary pressures.

Aerials

• Net sales of $673 million were up 10.9% or $66 million year over year, primarily due to increased shipments to national customers for mega projects and positive impacts from exchange rate changes.
• Adjusted¹ EBITDA was $38 million, or 5.7% of net sales, for the second quarter of 2026, compared to $55 million, or 9.1% of net sales in the prior year. The decrease was primarily due to more tariffs incurred in the current year period and inflationary pressures, partially offset by price realization, and cost actions.

Balance Sheet and Liquidity

• Free cash flow⁷ of $101 million, up $23 million from the prior year period.
• As of June 30, 2026, liquidity (cash and availability under our revolving line of credit) was $1.1 billion.
• During the second quarter of 2026, Terex deployed $33 million in capital expenditures and investments to support future business growth and operational improvements.
• During the second quarter of 2026, Terex returned $20 million to shareholders through dividends and has approximately $183 million available for repurchase under our share repurchase programs.

“Second quarter results reflected solid execution across the portfolio, including strong year-over-year incremental margin conversion in the Materials Processing and Specialty Vehicles segments, and free cash flow of $101 million, demonstrating the lower capital intensity of our new portfolio. Adjusted EPS for the quarter of $1.37 included approximately $8 million of IEEPA tariff refunds received, net of a discrete one-time unfavorable customs-related accrual,” said Jennifer Kong-Picarello, Terex senior vice president and chief financial officer. “We are encouraged by the team’s ability to navigate a dynamic backdrop, and deliver results that exceeded expectations in the first half of the year. As a result, today we are increasing our full-year outlook. At the midpoint, our outlook implies a meaningful step up in second-half earnings and profitability, supported by a healthy backlog and operational momentum.”

2026 Outlook

Based on second quarter performance, backlog visibility, and synergy realization, the company is raising  its full year outlook.  It expects 2026 sales to grow approximately 7% on a pro forma¹⁴ basis to $7.9 to $8.2 billion, and Adjusted¹ EBITDA to grow by $124 million or 14.5% year over year on a pro forma¹⁴ basis to between $960 million and $1 billion, or 12.2% Adjusted¹ EBITDA margin at the mid-point. The Adjusted¹ EPS² outlook of $4.70 – $5.10 includes the following assumptions/commentary:

• Full year average shares outstanding of 110 million for 2026, including ~114 million in Q3 to Q411 months impact of the new Specialty Vehicle segment (former REV)
• ~$28 million of realized synergies for 2026, on-target to achieving a $75 million annual run-rate within 2 years
• Excludes the divested MP cranes and Midwest RV business results
• Current tariff rates
• Interest of ~$185 million, consistent with pro-forma 2025
• Full year effective tax rate of ~21%

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