Terex (TEX) Earnings Date & Reports

Key Takeaways

• Terex reported third-quarter 2026 net sales of $2.197 billion, up 58.4% on a reported basis and 11.6% on a pro forma basis versus the prior year.
• Adjusted diluted earnings per share (EPS) came in at $1.50, topping the consensus estimate of $1.42.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $286 million, a 13.0% margin, roughly in line with expectations.
• Bookings jumped 52.7% on a pro forma basis to $2.3 billion, lifting total backlog to $7.0 billion and producing a book-to-bill ratio of 103%.
• Free cash flow rose to $209 million, up $79 million year over year, and the board approved a new $500 million share repurchase authorization.
• For more detail on TEX's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated Terex pages.
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Earnings Context and Why It Matters

Terex's third-quarter 2026 report matters because it offers the clearest look yet at how the company is absorbing its expanded, REV Group-integrated portfolio while managing margin pressures from tariffs, inflation, and production ramp-ups. The quarter highlighted divergent segment performance: strong growth in Materials Processing, Specialty Vehicles, and Aerials offset softness in Environmental Solutions. With backlog climbing past $7 billion and orders accelerating across all four segments, investors are watching whether improved demand visibility translates into sustained earnings conversion. The results also carry strategic weight, as management continues advancing the planned separation of the Aerials (Genie) business, a move that could reshape the company's portfolio and long-term growth profile.

Reported Results

Terex reported third-quarter 2026 net sales of $2.197 billion, up 58.4% on a reported basis and 11.6% on a pro forma basis, beating consensus estimates of roughly $2.16–$2.17 billion. Net income was $114 million, or $1.00 per diluted share, versus $65 million, or $0.98 per share, a year earlier. On an adjusted basis, net income was $171 million, or $1.50 per diluted share, above the consensus estimate of $1.42.

Adjusted EBITDA totaled $286 million, a 13.0% margin, up 13.9% on a pro forma basis but marginally below the consensus estimate of about $287.7 million. Bookings of $2.3 billion rose 52.7% on a pro forma basis, while total backlog reached $7.0 billion, up 12.9% year over year. Free cash flow was $209 million, up $79 million from the prior-year period.

For fiscal 2026, management refined its outlook to sales of $8.0–$8.2 billion, adjusted EBITDA of $930–$960 million, adjusted diluted EPS of $4.80–$5.00, and free cash flow of $360–$400 million. The sales midpoint of $8.1 billion came in modestly below consensus expectations of roughly $8.14 billion.

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Market Reaction and Investor Sentiment

Shares of Terex rose about 6.6% to $52.96 following the announcement, as investors reacted favorably to the better-than-expected quarterly sales and the expanding order backlog. The positive tone was reinforced by stronger-than-anticipated adjusted EPS and management's decision to lift the lower end of its full-year sales guidance. Sentiment was tempered somewhat by the full-year sales midpoint coming in slightly below consensus and by margin compression in the Aerials and Environmental Solutions segments. Overall, the market read the report as evidence that underlying demand remains healthy even as near-term profitability faces cost and mix headwinds.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors should focus on how Terex converts its record-level backlog into profitable revenue. The $7.0 billion backlog and 103% book-to-bill ratio provide strong visibility, but margin trajectory will depend on execution. Management expects Environmental Solutions inefficiencies tied to the Waukesha utilities ramp-up to normalize into 2027, while Aerials is positioned for sequential margin improvement as production volumes rise and cost actions take hold.

Tariffs, inflation, and customer mix remain the key external risks to watch. The company's guidance assumes tariffs broadly stay at current rates, so any policy changes could alter the outlook. Integration of the REV Group portfolio is another focal point, with about $28 million of synergies expected in 2026 and a target of a $75 million annual run-rate within two years.

Strategically, the planned separation of the Aerials (Genie) business is a major catalyst. Management has moved from evaluating inbound interest to active engagement with multiple counterparties, though no timeline has been set. Capital allocation is also in focus after the board approved a new $500 million buyback, bringing total repurchase capacity to $611 million. Together, these factors will shape how investors assess Terex's earnings power through 2026 and beyond.

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