second quarter 2026
Filed Jul 30, 2026Terex Reports Second Quarter 2026 Results
Reported sales rose 50.5%, pro forma sales grew 8.5% across every segment, adjusted EBITDA increased 10.7% on a pro forma basis, free cash flow increased, and the company raised its full-year outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $2.2 billion | – | 50.5% higher than the second quarter of 2025 on a reported basis; grew by 8.5% year over year on a pro forma basis |
| Net incomeGAAP | $110 million | – | – |
| Diluted EPSGAAP | $0.96 per share | – | – |
| Adjusted net incomenon-GAAP | $156 million | – | – |
| Adjusted EPSnon-GAAP | $1.37 per share | – | – |
| Adjusted EBITDAnon-GAAP | $269 million | – | increased on a pro forma basis by $26 million, or 10.7%, compared to the second quarter of 2025 |
| Adjusted EBITDA marginnon-GAAP | 12.0% margin | – | – |
| Backlogother | $6.9 billion | – | increased $257 million, or 3.9% on a pro forma basis, versus the prior year |
| Bookingsother | $2.0 billion | – | increased 25.2% year over year on a pro forma basis |
| Book-to-billother | 90% | – | – |
| Free cash flownon-GAAP | $101 million | – | up $23 million from the prior year period |
| Environmental Solutions adjusted EBITDAnon-GAAP | $80 million | – | – |
| Environmental Solutions adjusted EBITDA marginnon-GAAP | 17.5% of net sales | – | – |
| Materials Processing adjusted EBITDAnon-GAAP | $87 million | – | – |
| Materials Processing adjusted EBITDA marginnon-GAAP | 18.8% of net sales | – | – |
| Materials Processing adjusted EBITDA, pro formanon-GAAP | $87 million | – | – |
| Materials Processing adjusted EBITDA margin, pro formanon-GAAP | 18.8% of net sales | – | – |
| Specialty Vehicles adjusted EBITDAnon-GAAP | $94 million | – | – |
| Specialty Vehicles adjusted EBITDA marginnon-GAAP | 14.5% of net sales | – | – |
| Aerials adjusted EBITDAnon-GAAP | $38 million | – | – |
| Aerials adjusted EBITDA marginnon-GAAP | 5.7% of net sales | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Environmental SolutionsIncreased throughput and delivery of utilities products, partially offset by lower shipments of refuse collection vehicles (RCVs). | $456 million | – | up 5.9% compared to the second quarter of 2025 |
| Materials ProcessingIncreased demand, particularly for mobile crushers in the U.S. supported by road construction, infrastructure projects, and select commercial building activities. | $464 million | – | up 2.2% or $10 million year over year; up 11.1% year over year on a pro forma basis |
| Specialty VehiclesIncreased shipments of fire apparatus and price realization. | $650 million | – | up 6.2% year over year on a pro forma basis |
| AerialsIncreased shipments to national customers for mega projects and positive impacts from exchange rate changes. | $673 million | – | up 10.9% or $66 million year over year |
2026 outlook
- Revenue$7.9B - $8.2B
- Tax rate~21%
- NoteSales to grow approximately 7% on a pro forma basis
- NoteAdjusted EBITDA $960M - $1B
- NoteAdjusted EBITDA to grow by $124 million or 14.5% year over year on a pro forma basis
- Note12.2% Adjusted EBITDA margin at the mid-point
- NoteAdjusted EPS $4.70 - $5.10
- NoteFree Cash Flow $300M - $350M
- Note11 months impact of the new Specialty Vehicle segment (former REV)
- Note~$28 million of realized synergies for 2026, on-target to achieving a $75 million annual run-rate within 2 years
- NoteInterest of ~$185 million, consistent with pro-forma 2025
- NoteFull year average shares outstanding of 110 million for 2026, including ~114 million in Q3 to Q4
- NoteDepreciation & Amortization of ~$110 million excluding amortization pertaining to purchase price accounting
- NoteEnvironmental Solutions prior year baseline $1,691; LSD
- NoteMaterials Processing prior year baseline $1,578; LDD
- NoteSpecialty Vehicles prior year baseline $2,179; HSD
- NoteAerials prior year baseline $2,060; LDD
Capital returns
- During the second quarter of 2026, Terex returned $20 million to shareholders through dividends.
- Approximately $183 million available for repurchase under share repurchase programs.
What drove it
- Pro forma net sales grew by 8.5% year over year including growth in every segment.
- Bookings increased in each segment.
- Materials Processing benefited from favorable mix, price and higher volume absorption, partially offset by increased transportation costs.
- Specialty Vehicles benefited from higher sales volume, favorable mix, price realization, and operational efficiency, partially offset by inflationary pressures.
- The outlook is based on second quarter performance, backlog visibility, and synergy realization.
Concerns
- Environmental Solutions adjusted EBITDA margin was 17.5% of net sales versus 20.0% of net sales in the prior year, reflecting greater contribution from Utilities, Utilities production-ramp inefficiencies, and under-absorption associated with lower RCV volume within ESG.
- Aerials adjusted EBITDA margin was 5.7% of net sales versus 9.1% of net sales in the prior year, primarily due to more tariffs incurred and inflationary pressures.
- Adjusted EPS included approximately $8 million of IEEPA tariff refunds received, net of a discrete one-time unfavorable customs-related accrual.
- The outlook assumes that tariffs broadly remain at current rates.
What to watch
- Execution toward approximately $28 million of realized synergies for 2026 and the $75 million annual run-rate target within 2 years.
- Second-half earnings and profitability implied by the full-year outlook.
- Backlog conversion and booking trends across each segment.
- Aerials tariff and inflationary pressure, and Environmental Solutions utilities ramp efficiency and RCV volume.
Balance sheet and cash flow
- Free cash flow 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.
Analysis
Terex reported a strong second quarter, with net sales of $2.2 billion, up 50.5% on a reported basis and up 8.5% on a pro forma basis. The company said pro forma growth occurred in every segment. Bookings of $2.0 billion increased 25.2% year over year on a pro forma basis, while backlog reached $6.9 billion and increased $257 million, or 3.9% on a pro forma basis, supporting management's view of favorable demand across much of the portfolio.
Profitability improved at the consolidated adjusted EBITDA level. Adjusted EBITDA was $269 million, or a 12.0% margin, and increased by $26 million, or 10.7%, on a pro forma basis from the second quarter of 2025. GAAP net income was $110 million, or $0.96 per share, compared with $72 million, or $1.09 per share, in the prior-year quarter. Adjusted net income was $156 million, or $1.37 per share, compared with $98 million, or $1.49 per share. The adjusted EPS result included approximately $8 million of IEEPA tariff refunds received, net of a discrete one-time unfavorable customs-related accrual.
Segment mix was favorable in Materials Processing and Specialty Vehicles. Materials Processing posted adjusted EBITDA of $87 million, or 18.8% of net sales, versus $62 million, or 13.8% of net sales, in the prior year, with favorable mix, price and higher volume absorption outweighing higher transportation costs. Specialty Vehicles generated adjusted EBITDA of $94 million, or 14.5% of net sales, versus $76 million, or 12.4% of net sales, on a pro forma basis in the prior year. Environmental Solutions and Aerials grew sales, but their adjusted EBITDA margins declined, with Aerials affected by more tariffs and inflationary pressures.
Cash generation and capital allocation were constructive. Free cash flow was $101 million, up $23 million from the prior-year period, and the company cited lower capital intensity of its new portfolio. Terex deployed $33 million in capital expenditures and investments, returned $20 million through dividends, and had approximately $183 million available for repurchase. Liquidity was $1.1 billion as of June 30, 2026.
Management raised its 2026 outlook to sales of $7.9B - $8.2B, adjusted EBITDA of $960M - $1B, adjusted EPS of $4.70 - $5.10, and free cash flow of $300M - $350M. At the midpoint, the company expects a 12.2% adjusted EBITDA margin. The guide assumes current tariff rates, approximately $28 million of realized synergies for 2026, and a meaningful step-up in second-half earnings and profitability supported by backlog and operational momentum.
Management, verbatim
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.
Simon Meester, Terex President and Chief Executive Officer
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.
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.
Jennifer Kong-Picarello, Terex Senior Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- Gross margin for the second quarter of 2026 and comparable periods
- GAAP operating income for the second quarter of 2026 and comparable periods
- GAAP operating margin for the second quarter of 2026 and comparable periods
- Total net-sales dollar amount for the second quarter of 2025
- Prior-quarter revenue, net income, EPS, adjusted EBITDA, and free cash flow
- Cash balance separately from revolving-credit availability
- Total debt and net debt
- GAAP operating cash flow
- GAAP free cash flow
- Current-quarter effective tax rate
- Prior 2026 outlook required for comparison with actual reported results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.