- Sales of $2.2 billion, up 58.4% on a reported basis, pro forma sales up 11.6%
- Net income of $114 million, adjusted1 net income of $171 million
- Adjusted1 EBITDA7 of $286 million or 13.0% margin
- Diluted EPS of $1.00 and adjusted1 Diluted EPS2 of $1.50
- Bookings of $2.3 billion increased 52.7% year over year on a pro forma13 basis
- Refining 2026 Outlook5: Sales of $8.0 to $8.2 billion, Adjusted1 EBITDA7 of $930 million to $960 million with 11.7% Adjusted1 EBITDA7 margin at the midpoint, and Free cash flow of $360 million to $400 million
- Board approves a new $500 million share repurchase authorization
NORWALK, Conn., Oct. 28, 2026 /PRNewswire/ -- Terex Corporation (NYSE: TEX), a global leader in specialized equipment, serving essential sectors such as emergency services, waste and recycling, utilities, and construction, today announced its results for the third quarter 2026.
CEO Commentary
"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 said.
"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."
Third Quarter Operational and Financial Highlights
- $7.0 billion backlog increased $802 million, or 12.9% on a pro forma basis, versus the prior year, driven by increased bookings in each segment. Bookings of $2.3 billion increased 52.7% year over year on a pro forma basis and reflects a book-to-bill of 103%.
- Net sales of $2.2 billion were 58.4% higher than the third quarter of 2025 on a reported basis. Pro forma net sales grew by 11.6% year over year, driven by growth in Materials Processing ("MP"), Specialty Vehicles ("SV"), and Aerials.
- Adjusted1 EBITDA of $286 million increased on a pro forma basis by $35 million, or 13.9%, compared to the third quarter of 2025. The year-over-year change was driven by meaningful improvements in the MP and SV segments.
- Net income was $114 million, or $1.00 per diluted share, compared to $65 million, or $0.98 per diluted share, in the third quarter of 2025. Adjusted1 net income was $171 million, or $1.50 per diluted share for the third quarter of 2026, compared to $100 million, or $1.50 per diluted share, in the third quarter of 2025.
Business Segment Review
Environmental Solutions
- Net sales of $400 million were down 8.0% or $35 million year over year, primarily due to lower shipments of refuse collection vehicles ("RCVs"), partially offset by higher utilities product sales.
- Adjusted1 EBITDA was $61 million or 15.3% of net sales for the third quarter of 2026, compared to $83 million, or 19.2% of net sales in the prior year. The decrease was driven by unfavorable mix, inefficiencies related to a production ramp up in Utilities, under-absorption associated with lower refuse collection vehicle production volume and inflationary pressures.
Materials Processing
- Net sales of $434 million were up 4.1% or $17 million year over year. On a pro forma13 basis, net sales were up 11.3% year over year, driven by increased shipments across most product categories, with the largest increase coming from Aggregates in North America.
- Adjusted1 EBITDA was $84 million, or 19.3% of net sales for the third quarter of 2026, compared to the prior year of $56 million, or 13.5% of net sales and $55 million, or 14.0% of net sales, on a pro forma13 basis. The improvement was driven by higher shipment volume, favorable mix, price cost discipline, and improved absorption driven by higher production volumes.
Specialty Vehicles
- Net sales of $657 million were up 8.1% or $49 million year over year on a pro forma13 basis, driven by increased shipments of fire apparatus and recreational vehicles.
- Adjusted1 EBITDA was $105 million, or 16.0% of net sales for the third quarter of 2026, compared to $79 million, or 13.0% of net sales on a pro forma13 basis in the prior year. The increase was primarily due to operational efficiency and price cost discipline, partially offset by inflationary pressures.
Aerials
- Net sales of $709 million were up 32.0% or $172 million year over year, primarily due to higher shipment volume resulting from strong demand from national customers and increased customer capital spending on large projects.
- Adjusted1 EBITDA was $62 million, or 8.7% of net sales, for the third quarter of 2026, compared to $56 million, or 10.5% of net sales in the prior year. The change was primarily due to higher sales and cost out actions, partially offset by unfavorable customer mix, inflationary and tariff pressures.
Balance Sheet and Liquidity
- Free cash flow7 of $209 million, up $79 million from the prior year period.
- As of September 30, 2026, liquidity (cash and availability under our revolving line of credit) was $1.2 billion.
- During the third quarter of 2026, Terex deployed $32 million in capital expenditures and investments to support future business growth and operational improvements.
- During the third quarter of 2026, Terex returned $19 million to shareholders through dividends and $72 million through share repurchases, leaving approximately $111 million available for repurchase under our current share repurchase programs.
- The Board of Directors authorized a new $500 million share repurchase program, totaling $611 million available for repurchase.
CFO Commentary
"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. We returned $91 million to shareholders through share repurchases and dividends while reducing debt by $113 million," said Jennifer Kong-Picarello, Terex Senior Vice President and Chief Financial Officer. "The Board's new $500 million share repurchase authorization provides additional flexibility to return capital opportunistically within our balanced capital allocation framework, while maintaining the capacity to invest in the business and strengthen the balance sheet."
2026 Outlook
Based on third quarter performance, backlog visibility, and synergy realization, the company is refining its full year outlook. It expects 2026 sales to grow approximately 8.5% on a pro forma14 basis to $8.0 to $8.2 billion, Adjusted1 EBITDA to grow by approximately 10% year over year on a pro forma14 basis to between $930 million and $960 million, or 11.7% Adjusted1 EBITDA margin at the mid-point, and Free cash flow of $360 million to $400 million. The Adjusted1 Diluted EPS2 outlook of $4.80 - $5.00 includes the following assumptions/commentary:
- 11 months impact of the new Specialty Vehicle segment (former REV)
- ~$28 million of realized synergies for 2026, on-target to achieving a $75 million annual run-rate within 2 years
- Excludes the divested MP cranes and Midwest RV business results
- Current tariff rates
- Interest of ~$180 million, consistent with pro-forma 2025
- Full year effective tax rate of ~19%
- Full year average diluted shares outstanding of ~110 million for 2026, including ~113 million in Q4
Non-GAAP Measures and Other Items
Results of operations reflect continuing operations. All per share amounts are on a fully diluted basis. A comprehensive review of the quarterly financial performance is contained in the presentation that will accompany the Company's earnings conference call.
In this press release, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. Management believes that presenting these non-GAAP financial measures provide investors with additional analytical tools which are useful in evaluating our operating results and the ongoing performance of our underlying businesses because they (i) provide meaningful supplemental information regarding financial performance by excluding impact of one-time items and other items affecting comparability between periods, (ii) permit investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate our core operating performance across periods, and (iii) otherwise provide supplemental information that may be useful to investors in evaluating our financial results. We do not, nor do we suggest that investors, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
The Glossary at the end of this press release contains further details about this subject.
Conference call
The Company has scheduled a conference call to review the financial results on Wednesday, October 28, 2026 beginning at 8:30 a.m. ET. Simon A. Meester, President and CEO, and Jennifer Kong-Picarello, Senior Vice President and Chief Financial Officer, will host the call. A simultaneous webcast of this call can be accessed at https://investors.terex.com. Participants are encouraged to access the call 15 minutes prior to the starting time. The call will also be archived in the Event Archive at https://investors.terex.