Terex Reports Third Quarter 2026 Results
TEREX CORP (TEX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Terex Reports Third Quarter 2026 Results • Sales of $2.2 billion, up 58.4% on a reported basis, pro forma sales up 11.6% • Net income of $114 million, adjusted 1 net income of $171 million • Adjusted 1 EBITDA 7 of $286 million or 13.0% margin • Diluted EPS of $1.00 and adjusted 1
How this was made
The 30-second read
Why it matters
The earnings beat and updated FY2026 guidance suggest continued growth momentum, potentially attracting buy‑side interest.
Market read
Terex's strong quarter and issued sales outlook could drive short‑term upside in the industrial equipment sector.
Timing
today
Terex Reports Third Quarter 2026 Results
Pro forma net sales grew by 11.6% and pro forma adjusted EBITDA increased by $35 million, or 13.9%, while bookings rose across all four segments and free cash flow increased to $209 million. Environmental Solutions declined and its adjusted EBITDA margin contracted, while Aerials adjusted EBITDA margin also declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 net salesGAAP | $2.20B | – | 58.4% higher |
| Q3 pro forma net salesother | $2.20B | – | 11.6% |
| Q3 gross profitGAAP | $435M | – | – |
| Q3 gross marginGAAP | 19.8 % | – | – |
| Q3 adjusted gross profitnon-GAAP | $440M | – | – |
| Q3 adjusted gross marginnon-GAAP | 20.0 % | – | – |
| Q3 selling, general and administrative expensesGAAP | $199M | – | – |
| Q3 amortization of purchased intangiblesGAAP | $53M | – | – |
| Q3 operating profitGAAP | $183M | – | – |
| Q3 operating marginGAAP | 8.3 % | – | – |
| Q3 adjusted operating profitnon-GAAP | $260M | – | – |
| Q3 adjusted operating marginnon-GAAP | 11.9 % | – | – |
| Q3 net incomeGAAP | $114M | – | – |
| Q3 adjusted net incomenon-GAAP | $171M | – | – |
| Q3 diluted earnings per share from continuing operationsGAAP | $ 1.00 | – | – |
| Q3 adjusted diluted earnings per sharenon-GAAP | $ 1.50 | – | – |
| Q3 adjusted EBITDAnon-GAAP | $286M | – | 13.9% on a pro forma basis |
| Q3 adjusted EBITDA marginnon-GAAP | 13.0 % | – | – |
| Q3 bookingsother | $2.3B | – | 52.7% year over year on a pro forma basis |
| Q3 book-to-billother | 103% | – | – |
| Backlogother | $7B | – | increased $802 million, or 12.9% on a pro forma basis |
| Q3 net cash provided by operating activitiesGAAP | $241M | – | – |
| Q3 free cash flownon-GAAP | $209M | – | up $79 million |
| Nine months net salesGAAP | $6.17B | – | – |
| Nine months operating profitGAAP | $288M | – | – |
| Nine months net incomeGAAP | $135M | – | – |
| Nine months diluted earnings per shareGAAP | $ 1.25 | – | – |
| Nine months adjusted EBITDAnon-GAAP | $727M | – | – |
| Nine months adjusted EBITDA marginnon-GAAP | 11.8 % | – | – |
| Nine months net cash provided by operating activitiesGAAP | $338M | – | – |
| Nine months capital expendituresGAAP | $90M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Environmental SolutionsLower shipments of refuse collection vehicles, partially offset by higher utilities product sales. | $400M | – | down 8.0% or $35 million year over year |
| Materials ProcessingIncreased shipments across most product categories, with the largest increase coming from Aggregates in North America. | $434M | – | up 4.1% or $17 million year over year; up 11.3% year over year on a pro forma basis |
| Specialty VehiclesIncreased shipments of fire apparatus and recreational vehicles. | $657M | – | up 8.1% or $49 million year over year on a pro forma basis |
| AerialsHigher shipment volume resulting from strong demand from national customers and increased customer capital spending on large projects. | $709M | – | up 32.0% or $172 million year over year |
full year 2026 outlook
- Revenue$8.0B - $8.2B
- Tax rate~19%
- NoteNet Sales: $8.0B - $8.2B
- Noteapproximately 8.5% sales growth on a pro forma basis
- NoteAdjusted EBITDA: $930M - $960M
- Noteapproximately 10% Adjusted EBITDA growth year over year on a pro forma basis
- Note11.7% Adjusted EBITDA margin at the mid-point
- NoteAdjusted Diluted EPS: $4.80 - $5.00
- NoteFree Cash Flow: $360M - $400M
- NoteInterest / Other Expense: ~$180 million
- NoteDepreciation & Amortization of ~$95 million excluding amortization pertaining to purchase price accounting and non-cash interest costs
- NoteFull year average diluted shares outstanding of ~110 million for 2026, including ~113 million in Q4
- NoteEnvironmental Solutions: Flat
- NoteMaterials Processing: LDD
- NoteSpecialty Vehicles: HSD
- NoteAerials: LDD
Capital returns
- During the third quarter of 2026, Terex returned $19 million to shareholders through dividends.
- During the third quarter of 2026, Terex returned $72 million through share repurchases.
- Approximately $111 million was available for repurchase under current share repurchase programs.
- The Board of Directors authorized a new $500 million share repurchase program.
- The new authorization totaled $611 million available for repurchase.
What drove it
- Pro forma net sales growth was driven by growth in Materials Processing, Specialty Vehicles, and Aerials.
- Consolidated adjusted EBITDA increased on a pro forma basis by $35 million, or 13.9%, driven by meaningful improvements in Materials Processing and Specialty Vehicles.
- Materials Processing benefited from higher shipment volume, favorable mix, price cost discipline, and improved absorption driven by higher production volumes.
- Specialty Vehicles benefited primarily from operational efficiency and price cost discipline.
- Aerials sales were supported by strong demand from national customers and increased customer capital spending on large projects.
- Improved working capital efficiency contributed to operating cash flow and free cash flow.
- The company cited synergy realization and expects ~$28 million of realized synergies for 2026.
Concerns
- Environmental Solutions net sales were down 8.0% or $35 million year over year due primarily to lower refuse collection vehicle shipments.
- Environmental Solutions adjusted EBITDA declined to $61 million from $83 million and adjusted EBITDA margin declined to 15.3% from 19.2%.
- Environmental Solutions faced unfavorable mix, Utilities production-ramp inefficiencies, under-absorption associated with lower refuse collection vehicle production volume, and inflationary pressures.
- Aerials adjusted EBITDA margin declined to 8.7% from 10.5%, with unfavorable customer mix, inflationary pressures, and tariff pressures partially offsetting higher sales and cost-out actions.
- Q3 GAAP gross margin was 19.8 % versus 21.6 % in the prior year, and GAAP operating margin was 8.3 % versus 10.1 %.
- Nine-month operating profit was $ 288 million versus $ 338 million, while nine-month net income was $ 135 million versus $ 158 million.
- The outlook assumes current tariff rates.
What to watch
- Execution of the Aerials separation process, including active engagement with multiple strategic counterparties.
- Progress toward achieving a $75 million annual synergy run-rate within 2 years.
- Environmental Solutions recovery in refuse collection vehicle shipments and Utilities production-ramp efficiency.
- Aerials customer mix, inflationary pressures, tariff pressures, and margin performance.
- Delivery against full-year sales of $8.0B - $8.2B, Adjusted EBITDA of $930M - $960M, Adjusted Diluted EPS of $4.80 - $5.00, and Free Cash Flow of $360M - $400M.
- Order activity and conversion of the $7.0 billion backlog.
Balance sheet and cash flow
- As of September 30, 2026, liquidity was $1.2 billion.
- Cash and cash equivalents were $ 407 million as of September 30, 2026, compared with $ 772 million as of December 31, 2025.
- Current portion of long-term debt was $ 24 million as of September 30, 2026, compared with $ 6 million as of December 31, 2025.
- Long-term debt, less current portion, was $ 2,554 million as of September 30, 2026, compared with $ 2,578 million as of December 31, 2025.
- Terex deployed $32 million in capital expenditures and investments during the third quarter of 2026.
- Net cash provided by operating activities was $ 241 million during the third quarter of 2026.
- Free cash flow was $ 209 million during the third quarter of 2026.
- Net cash provided by operating activities was $ 338 million for the nine months ended September 30, 2026, compared with $ 235 million for the nine months ended September 30, 2025.
- Net cash used in investing activities was $ 519 million for the nine months ended September 30, 2026, compared with $ 44 million for the nine months ended September 30, 2025.
- Net cash used in financing activities was $ 177 million for the nine months ended September 30, 2026, compared with $ 98 million for the nine months ended September 30, 2025.
Analysis
Terex reported Q3 net sales of $ 2,197 million, up from $ 1,387 million in the prior-year quarter. On the company’s pro forma basis, net sales increased 11.6%, with growth in Materials Processing, Specialty Vehicles, and Aerials. Bookings of $2.3 billion increased 52.7% year over year on a pro forma basis, book-to-bill was 103%, and backlog reached $7.0 billion after increasing $802 million, or 12.9% on a pro forma basis. Management characterized order activity as increasing across all four segments.
Profitability improved on an adjusted EBITDA basis but GAAP and adjusted margin comparisons were lower. Q3 adjusted EBITDA was $ 286 million, or 13.0 %, compared with $ 186 million, or 13.4 %, a year earlier. The company reported pro forma adjusted EBITDA growth of $35 million, or 13.9%. GAAP gross margin was 19.8 % versus 21.6 %, GAAP operating margin was 8.3 % versus 10.1 %, and adjusted operating margin was 11.9 % versus 12.1 %. Net income increased to $ 114 million from $ 65 million, while adjusted net income rose to $ 171 million from $ 100 million. Diluted EPS was $ 1.00 versus $ 0.98, and adjusted diluted EPS was unchanged at $ 1.50.
The segment mix was uneven. Environmental Solutions net sales declined 8.0% or $35 million and adjusted EBITDA declined to $61 million from $83 million, as lower refuse collection vehicle shipments, unfavorable mix, Utilities ramp inefficiencies, lower-volume under-absorption, and inflationary pressures weighed on results. Materials Processing posted $434 million of sales and $84 million of adjusted EBITDA, with higher volume, favorable mix, pricing discipline, and absorption supporting improvement. Specialty Vehicles generated $657 million of sales and $105 million of adjusted EBITDA on a pro forma comparison. Aerials sales reached $709 million, up 32.0% or $172 million, but adjusted EBITDA margin declined to 8.7% from 10.5% due to customer mix, inflation, and tariffs.
Cash generation strengthened in the quarter. Operating cash flow was $ 241 million and free cash flow was $ 209 million, compared with $ 154 million and $ 130 million, respectively, in the prior-year period. The company returned $19 million through dividends and $72 million through share repurchases, while the board approved a new $500 million repurchase authorization. Terex reported $1.2 billion of liquidity as of September 30, 2026, and the CFO said debt was reduced by $113 million during the quarter.
The company refined its 2026 outlook based on third-quarter performance, backlog visibility, and synergy realization. It expects sales of $8.0B - $8.2B, Adjusted EBITDA of $930M - $960M, Adjusted Diluted EPS of $4.80 - $5.00, and Free Cash Flow of $360M - $400M. The outlook includes approximately 8.5% pro forma sales growth, approximately 10% pro forma Adjusted EBITDA growth, and a 11.7% Adjusted EBITDA margin at the midpoint. It assumes current tariff rates, ~$28 million of realized synergies for 2026, interest of ~$180 million, and a full-year effective tax rate of ~19%.
Management, verbatim
Terex delivered higher sales, adjusted EBITDA and cash flow in the third quarter versus the prior year, with solid order activity increasing across all four segments, resulting in $7 billion backlog that provides meaningful forward visibility across the portfolio. We are also making progress integrating the expanded company, capturing synergies, and applying more consistent operating discipline to improve execution and returns.
Simon Meester, Terex President & CEO
Over the past few months we have made good progress in the process of separating the Aerials segment, by advancing the carve-out work and moving from evaluating inbound interest to active engagement with multiple strategic counterparties. At the same time, the Aerials team remains focused on serving customers, growing the business and improving performance. Our priority is to achieve a successful outcome that maximizes value for Terex shareholders.
Simon Meester, Terex President & CEO
Terex delivered solid third-quarter financial performance, with pro forma sales growth of approximately 12% and pro forma adjusted EBITDA growth of 14%, reflecting higher volumes, solid operating execution and realized synergies. Improved working capital efficiency contributed to $241 million of operating cash flow and $209 million of free cash flow during the quarter.
Jennifer Kong-Picarello, Terex Senior Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- Previous-release outlook and prior guidance comparisons
- Q3 total debt as a single reported line item
- Q3 GAAP free cash flow
- Q3 and full-year GAAP EPS outlook
- Q3 sequential revenue, margin, profit, EPS, bookings, backlog, operating cash flow, and free cash flow comparisons
- Full-year 2026 gross margin guidance
- Full-year 2026 operating expense guidance
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Terex Corp (NYSE:TEX) released its Q3 2026 earnings via an SEC Form 8‑K.
Ticker impact
Terex Corp reported Q3 2026 results with sales of $2.2B and issued guidance for FY2026 sales of $8.0‑$8.2B.
likely support as investors price in issued sales guidance
Quarterly sales jumped 58% YoY and the company provided an issued full‑year sales outlook, indicating improved operating momentum.
Market effects
Positive results may lift other specialized equipment makers.
North American industrial sector could see modest gains.
Limited to industrial equipment niche.
Key entities
- ExecutiveSimon Meester
President & CEO of Terex Corp
- ExecutiveJennifer Kong-Picarello
Senior Vice President and CFO of Terex Corp
