Terex Sales Jump 58% On REV Deal, But Aerials Margin Slips As Separation Work Advances
Terex also authorized a new $500 million buyback and refined its 2026 outlook as it talks with multiple strategic counterparties about Aerials.
Terex, which makes specialized equipment for waste, utilities, construction and emergency services, said Wednesday that third-quarter sales rose 58.4% on a reported basis to $2.2 billion, lifted by the expanded company after the REV deal. CEO Simon Meester said the carve-out of its Aerials segment has moved from weighing inbound interest to active engagement with multiple strategic counterparties.
Reported growth versus pro forma growth
Pro forma sales, which treat the REV and crane changes as if they had happened earlier, rose 11.6%. Net income was $114 million, or $1.00 per diluted share, against $65 million, or $0.98, a year earlier.
Adjusted earnings were $1.50 per diluted share, flat with last year's $1.50. Adjusted net income rose to $171 million from $100 million, while diluted shares grew to 114.0 million from 66.2 million.
Adjusted EBITDA reached $286 million, a 13.0% margin, up $35 million, or 13.9%, on a pro forma basis. Backlog stood at $7.0 billion and bookings were $2.3 billion; bookings rose 52.7% on a pro forma basis.
Aerials grows, but earns less per dollar
Terex reports four segments. Aerials sales climbed 32.0% to $709 million on demand from national customers and larger customer capital spending. Its adjusted EBITDA margin slid to 8.7% from 10.5%, which the company tied to unfavorable customer mix and inflation and tariff pressures, partly offset by higher sales and cost cuts.
Environmental Solutions fared worse. Sales fell 8.0% to $400 million on fewer refuse collection vehicles, and its adjusted EBITDA margin dropped to 15.3% from 19.2%.
Materials Processing margin rose to 19.3% from 13.5%, and Specialty Vehicles, the former REV, earned 16.0%.
A $500 million buyback and a narrower outlook
The board approved a new $500 million repurchase program, bringing the total available to $611 million. In the quarter Terex spent $72 million on buybacks and $19 million on dividends. Free cash flow was $209 million, up $79 million.
For 2026 it now expects sales of $8.0 billion to $8.2 billion, adjusted EBITDA of $930 million to $960 million, adjusted earnings of $4.80 to $5.00 per share and free cash flow of $360 million to $400 million.
Meester said the aim in Aerials is an outcome that "maximizes value for Terex shareholders." Management hosts a call at 8:30 a.m. ET Wednesday.
The Aerials margin of 8.7% is the number prospective counterparties will see, set against 10.5% a year ago.
Sources
- 8-K Filing — TEREX CORP (TEX) — SEC EDGAR
- Exhibit terexearningsreleaseexq3-26.htm — TEREX CORP 8-K exhibit — SEC EDGAR
- Terex Reports Third Quarter 2026 Results — prnewswire.com
