Terex Q2 Earnings Call Highlights

Terex raised its 2026 outlook after reporting $2.24 billion in second-quarter revenue, an 8.5% pro forma sales increase, and a 10.7% rise in adjusted EBITDA to $269 million. The company now expects $7.9 billion–$8.2 billion in sales, $960 million–$1 billion in adjusted EBITDA, and adjusted EPS of $4.70–$5.10. Demand indicators strengthened, with pro forma bookings up 25% to $2 billion and backlog reaching $6.9 billion. Materials Processing and Specialty Vehicles posted improved margins, while Aerials benefited from stronger infrastructure-related demand despite tariff pressure. Terex generated $101 million in free cash flow and reduced net leverage to 2.3 times adjusted EBITDA. Management also said REV Group integration is on track, while the company continues reviewing strategic alternatives for its Aerials segment.

Terex reported second-quarter revenue of $2.24 billion and raised its full-year outlook, citing growth across all four segments, stronger bookings, backlog coverage and progress integrating REV Group. On a pro forma basis, excluding the sale of its Cranes and Midwest businesses, second-quarter sales increased 8.5% year over year. Adjusted EBITDA rose 10.7% to $269 million, while adjusted EBITDA margin reached 12.0%, compared with 11.8% on a pro forma basis in the prior-year period. Adjusted earnings per share were $1.37, including an $8 million net benefit from IEEPA tariff refunds and a one-time unfavorable customs-related accrual.

President and Chief Executive Officer Simon Meester said the company’s results reflected higher revenue, better earnings conversion and execution against strategic priorities. Consolidated bookings increased 25% year over year on a pro forma basis to $2 billion, and Terex ended the quarter with $6.9 billion of backlog. Demand backdrop and portfolio execution Meester said the company is seeing a positive and improving demand environment in many of its verticals. He pointed to U.S. non-residential construction starts, which rose 18% year to date to $368 billion, driven by data centers, energy investments and civil infrastructure projects. Mega-project starts totaled approximately $80 billion through May, according to the company.

Terex said higher equipment utilization, increased customer capital spending and favorable channel-partner sentiment are supporting demand. The company also cited municipal replacement activity for fire apparatus, ambulances and refuse collection vehicles. During the quarter, the City of Chicago approved purchases of 80 fire trucks and 40 ambulances, Terex said. Meester said the company’s acquisition of Environmental Solutions Group and merger with REV Group, completed over the past two years, are both tracking ahead of their respective business cases to date. The REV integration is progressing as planned, he said, with synergy realization proceeding as expected. In Specialty Vehicles, Terex is expanding its ladder-truck plant in Ocala, Florida, and nearing completion of an expansion in Brandon, South Dakota. The Brandon project is intended to increase capacity for the S-180 semi-custom pumper and reduce lead times, with first deliveries expected in the fourth quarter. Meester said the company expects the new capacity additions to reach normal run rates in 2027. The company continues to pursue a strategic review of its Aerials segment. Meester said Terex has interest from multiple parties and is working toward an outcome intended to maximize shareholder value, but he did not provide a timetable or further details.

Segment results Environmental Solutions: S...