Company Overview

Terex is a global industrial equipment manufacturer that designs, builds, and supports products used in various industries, including materials processing, waste and recycling, vehicle solutions, mobile elevating work platforms, and the electric utility and recreational vehicle markets. The company operates in four segments: Environmental Solutions (ES), Materials Processing (MP), Specialty Vehicles (SV), and Aerials.

Second Quarter 2026 Performance

Terex delivered strong second quarter results in 2026, with revenue growth in all segments and higher Adjusted operating profit and Adjusted EBITDA compared to the same period in the prior year. Net sales for the three months ended June 30, 2026, were $2,238 million, including $650 million in sales from the SV segment. Adjusted EBITDA for the same period was $269 million, including $94 million from the SV segment.

The company’s free cash flow for the three months ended June 30, 2026, was $101 million, compared to $78 million in the same period in 2025, reflecting better working capital management. Backlog as of June 30, 2026, was $6.9 billion, providing solid forward visibility.

In the second quarter of 2026, Terex’s largest market remained North America, representing approximately 83% of total sales, up from 73% in the corresponding period of the prior year. The company continues to execute its capital allocation strategy by driving more operational cash through better net working capital management and returning value to shareholders through dividends and opportunistic share repurchases.

Segment Performance

Environmental Solutions (ES): Net sales for the three months ended June 30, 2026, increased $26 million, primarily due to increased throughput and shipments of utilities products, partially offset by lower shipments of refuse collection vehicles. Adjusted EBITDA decreased $6 million, primarily due to greater contribution from Utilities, inefficiencies related to a production ramp-up in Utilities, and under-absorption associated with lower refuse collection vehicle volume.

Materials Processing (MP): Net sales for the three months ended June 30, 2026, increased $10 million. Excluding the impact of the company’s tower and rough terrain crane businesses, which were sold on October 31, 2025, net sales increased $46 million, primarily driven by increased shipments of mobile crushers in the U.S. Adjusted EBITDA increased $25 million, primarily due to favorable mix, higher volume absorption, and lower SG&A costs.

Specialty Vehicles (SV): Net sales and Adjusted EBITDA for the three months ended June 30, 2026, represent the results of operations of REV from the REV Transaction, which closed in the first quarter of 2026. Net sales were $650 million, and Adjusted EBITDA was $94 million.

Aerials: Net sales for the three months ended June 30, 2026, increased $66 million, primarily due to increased shipments to national customers for mega projects and positive impacts from exchange rate changes. Adjusted EBITDA decreased $17 million, primarily due to higher tariff costs and inflationary pressures, partially offset by higher volume, price realization, and cost actions.

Key Strengths and Weaknesses

Terex’s key strengths include:

• Diversified portfolio of products and solutions across resilient, high-demand markets
• Improved focus on U.S.-based, predictable sectors
• Solid backlog and forward visibility
• Disciplined working capital management and strong liquidity position

Potential weaknesses or challenges include:

• Exposure to global economic volatility, tariffs, and inflationary pressures
• Potential changes in customer credit profiles and used equipment values
• Supplier payment terms based on the company’s credit rating
• Variability in sales due to general economic conditions, weather, and competition

Outlook and Future Prospects

Terex’s key end markets remain resilient, with reliable replacement and aftermarket demand. The company expects continued strong demand in areas such as waste and recycling, utility infrastructure, and fire and emergency vehicles. In Aerials and MP, infrastructure activity is expected to remain robust, supported by government funding and a growing pipeline of mega projects.

The company sees opportunities to improve operating performance across the portfolio through the ongoing integration process, deploying the Terex Operating System, investing in productivity-enhancing technology, and leveraging its broader portfolio and scale to better serve customers.

Conclusion

Terex delivered a strong second quarter in 2026, with revenue growth, higher profitability, and improved cash flow generation. The company’s diversified portfolio, focus on resilient end markets, and disciplined capital allocation strategy position it well for the future. However, Terex remains exposed to global economic volatility, changes in customer and supplier dynamics, and variability in sales. The company’s ability to navigate these challenges and continue executing its strategic initiatives will be key to its long-term success.