We use cookies to improve your experience, analyze site usage, and show relevant ads. Go to our Privacy Policy for details.
The call showed strong operational momentum: double-digit pro forma/top-line growth, segment-level margin expansion (notably in Materials Processing and Specialty Vehicles), robust bookings and a $7.1 billion backlog. Integration of REV is progressing with near-term synergies confirmed and capacity investments underway in Utilities. Key challenges include tariff-related margin pressure (notably in Aerials), seasonal cash outflows, share count dilution and some near-term cost inflation risks (freight). Management reiterated the full-year guidance prudently given macro and tariff uncertainty. On balance, the positives — broadened revenue base, improving margins in core growth segments, backlog/bookings strength and synergy execution — outweigh the near-term headwinds.
Terex reconfirmed its full‑year 2026 guidance, expecting pro forma sales to grow ~5% to $7.5–$8.1 billion and pro forma EBITDA to rise roughly $100 million (≈12% y/y) to $930 million–$1.0 billion (≈12.4% EBITDA margin at midpoint), which includes about $28 million of merger synergies in 2026 and a target $75 million run‑rate within 24 months; interest and other expense are expected at ≈$190 million (based on average debt of ≈$2.7 billion), the full‑year effective tax rate is expected to be 21%, and 2026 EPS is guided to $4.50–$5.00 (with ~115 million shares in Q2–Q4 and ~25% of full‑year EPS anticipated in Q2). Additional metrics/supporting detail: Q1 pro forma bookings were $2.1 billion (109% book‑to‑bill) with backlog of $7.1 billion, Q1 reported sales were $1.7 billion (+41% reported, +10.8% pro forma), Q1 EBITA margin was 9.9% (down 50 bps), Q1 EPS was $0.98 (including ≈$0.10 one‑time tax benefit), Q1 free cash outflow was $57 million, net working capital improved to 16.7% of sales (vs. 26% LY), net leverage was ~2.4x and is expected to improve, free cash conversion is expected at 80–90% of net income, and segment outlooks included Environmental Solutions growing mid‑single digits, Materials Processing growing high‑single digits (MP Q1 sales $419M, EBITDA margin 15%, +310 bps y/y), Specialty Vehicles expected to grow high‑single digits with margin improvement (SV Feb–Mar revenue $436M, Q1 SV EBITDA margin 14.2%, +160 bps), and Aerials guided to 2026 sales and margins similar to 2025 with >$1 billion backlog and sequential margin improvement in Q2–Q3.
Q1 sales of $1.7 billion, up $505 million or 41% YoY on a reported basis (driven by the REV merger); pro forma revenue growth of ~10.8% (CEO cited 11%). Management notes ~80% of 2025 pro forma revenue generated in North America, with ~85% manufactured in the U.S., improving portfolio resilience.
Reported EPS of $0.98 for Q1, representing an 18% YoY increase; operational EPS improved ~$0.05 versus prior year. Q1 included ~ $0.10 of one-time tax benefit (Q1 ETR 11% vs expected full-year 21%).
Company-wide Q1 pro forma bookings of $2.1 billion representing a 109% book-to-bill and quarter-end backlog of $7.1 billion, providing forward visibility across segments (notably Materials Processing, Aerials and Terex Utilities).
Specialty Vehicles grew ~20% YoY in the two-month post-close period (Feb–Mar), generated ~$436 million in Feb–Mar revenue, and improved EBITDA margin by 160 basis points to 14.2%. Management expects high-single-digit sales growth for full year with continued margin expansion.
MP sales of $419 million, up 18.3% YoY on a pro forma basis (12% ex-FX). MP EBITDA margin expanded to 15%, a 310 basis-point improvement YoY, driven by higher volume, efficiency and pricing actions; backlog up 53% YoY to $594 million.
Aerials (Arris) achieved a 132% book-to-bill in the quarter, generating a ~$1 billion backlog; quarterly sales of $469 million (up 4.2% YoY). Management expects sequential margin recovery in Q2–Q3 and full-year price/cost neutrality despite tariffs.
Environmental Solutions sales up 3.3% driven by Terex Utilities ramp; Q1 EBITDA margin of 18%. Management is increasing ladder truck capacity by 35% at Ocala and adding capacity in South Dakota for S-180 pumpers; targeting ~30% more Utilities capacity by end of next year.
REV integration on plan with all work streams at or ahead of schedule. On track to realize ~$28 million of synergies in 2026 and targeting a $75 million run-rate within 24 months. Prior ESG integration completed ahead of schedule and within budget with synergies above target.
Net working capital improved to 16.7% of sales vs 26% a year ago. Net leverage reduced to ~2.4x. Guidance expects interest & other expense ~ $190 million and full-year free cash conversion of 80%–90% of net income.
Management reiterated full-year 2026 outlook: pro forma sales growth of ~5% to $7.5–$8.1 billion; pro forma EBITDA up ~ $100 million (to $930M–$1.0B) implying ~12.4% EBITDA margin at midpoint; EPS guidance $4.50–$5.00 (share count Q2–Q4 ~115M).
Greetings, and welcome to the Terex First Quarter 2026 Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host, Derek Everitt, Vice President, Investor Relations. Derek, please go ahead.
Good morning, and welcome to the Terex First Quarter 2026 Earnings Conference Call. A copy of the press release and presentation slides are posted on our Investor Relations website at investors.terex.com. In addition, the replay and slide presentation will be available on our website. We are joined today by Simon Meester, President and Chief Executive Officer; and Jennifer Kong, Senior Vice President and Chief Financial Officer. Their prepared remarks will be followed by a Q&A. Please turn to Slide 2 of the presentation, which reflects our safe harbor statement. Today's conference call contains forward-looking statements, which are subject to risks that could cause actual results to be materially different from those expressed or implied. These risks are described in greater detail in the earnings material and in our reports filed with the SEC.
On this call, we will be discussing non-GAAP financial information, including adjusted figures that we believe are useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures can be found in the conference call materials. Please turn to Slide 3, and I'll hand it over to Simon Meester.
Thanks, Derek, and good morning. I would like to welcome everyone to our earnings call and appreciate your interest in Terex. We're off ...
