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# Terex CFO Says Half Of Its EBITDA Outlook Cut Comes From Segment Mix
- URL: https://www.bullished.co/terex-cfo-says-half-of-its-ebitda-outlook-cut-comes-from-segment-mix-e0f9bdf7/
- Published: 2026-10-28T14:05:34.000Z
- Updated: 2026-10-29T16:37:22.000Z
- Description: Freight costs and a slow utilities ramp explain the rest of the trimmed $930 million to $960 million adjusted EBITDA range.
- Author: Matteo Parrino
- Tags: Earnings, TEX, Industry: Industrials

Terex Chief Financial Officer Jennifer Kong told analysts on the company's third-quarter earnings call that about half of the reduction in full-year profit guidance comes from a shift in segment mix, after a Baird analyst said he was "a little bit confused with the guidance relative to your commentary." [Terex](https://www.bullished.co/tag/tex/), which makes aerial lifts, refuse truck bodies and rock-crushing equipment, now expects [adjusted pro forma EBITDA of $930 million to $960 million](https://www.prnewswire.com/news-releases/terex-reports-third-quarter-2026-results-302921404.html?ref=bullished.co).

## Three buckets behind the cut

The Baird analyst noted that $30 million to $40 million had come out of the EBITDA guide even though the third quarter looked close to plan, so the reduction must sit in the fourth quarter. Kong said the third quarter came in "largely in line" with expectations, with three of four segments posting double-digit EBITDA margins.

She split the revision this way:

- About 50% comes from segment mix, as environmental solutions sales guidance drops from low single-digit growth to flat and aerials is raised a little.
- About 25% comes from higher freight rates incurred in the third quarter that management expects to continue into the fourth.
- The last 25% reflects utilities ramp-up inefficiencies plus removing Capacity and LayMor from fourth-quarter guidance after [their sale](https://markets.ft.com/data/announce/detail?dockey=600-202610260930BIZWIRE%5FUSPRX%5F%5F%5F%5F20261026%5FBW429500-1&ref=bullished.co).

## Freight and Waukesha fade slowly

Kong called freight inflation a timing issue. Cost mitigation or customer surcharges generally take three to nine months to offset it, she said. Ramp-up inefficiencies at the Waukesha facility should ease in early 2027.

Capacity and LayMor generate roughly $125 million to $150 million of revenue through the cycle, Kong said, at mid- to high-single-digit EBITDA margins, which analysts can use to adjust 2027 models.

The quarter itself was solid. Chief Executive Simon Meester said [sales of $2.2 billion rose about 12%](https://www.prnewswire.com/news-releases/terex-reports-third-quarter-2026-results-302921404.html?ref=bullished.co) and adjusted EBITDA of $286 million rose about 14% on a pro forma basis. Orders climbed 53% and backlog reached $7 billion. Kong said the company is raising its free cash flow outlook to $360 million to $400 million. The board also approved a new $500 million buyback, bringing total capacity to $611 million.

## Aerials sale and the 2027 price lever

Meester said the aerials separation has moved from weighing inbound interest to active engagement with multiple strategic counterparties. He said Terex will not comment on individual counterparties or set a timeline.

On inflation, Meester said Terex is planning for at least flat year-over-year inflation in 2027 and aims to be neutral between price and cost. At some point it will have to pull the pricing lever, he said.

Terex will give 2027 guidance in February, including more clarity on the pricing actions needed to reach price-cost neutrality.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

### Sources

- [Terex (TEX) Q3 Earnings and Revenues Top Estimates](https://finance.yahoo.com/markets/stocks/articles/terex-tex-q3-earnings-revenues-113507226.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Terex Non-GAAP EPS of $1.50 beats by $0.08, revenue of $2.2B beats by $40M (TEX:NYSE)](https://seekingalpha.com/news/4658754-terex-non-gaap-eps-of-1%5F50-beats-by-0%5F08-revenue-of-2%5F2b-beats-by-40m?ref=bullished.co) — seekingalpha.com
- [Right Lane Industries Completes Acquisition of Capacity Trucks and LayMor from Terex Corporation – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610260930BIZWIRE%5FUSPRX%5F%5F%5F%5F20261026%5FBW429500-1&ref=bullished.co) — Financial Times
- [Terex Reports Third Quarter 2026 Results](https://www.prnewswire.com/news-releases/terex-reports-third-quarter-2026-results-302921404.html?ref=bullished.co) — prnewswire.com

### More on Terex

- [Terex CEO Says Aerials Sale Talks Are Now Active With Multiple Buyers, Sets No Timeline](https://www.bullished.co/terex-ceo-says-aerials-sale-talks-are-now-active-with-multiple-buyers-sets-no-timeline-136171eb/)
- [Terex Sales Jump 58% On REV Deal, But Aerials Margin Slips As Separation Work Advances](https://www.bullished.co/terex-sales-jump-58-on-rev-deal-but-aerials-margin-slips-as-separation-work-advances-0a7bcb03/)

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