Terex Corporation reported first‑quarter 2026 results that surpassed expectations, with revenue rising 41.1% year‑over‑year to $1.734 billion and adjusted earnings per share of $0.98, a $0.20 beat over the consensus estimate of $0.78. The company’s revenue also outperformed the consensus estimate of $1.716 billion by $17.8 million, underscoring stronger demand than analysts had anticipated.
The Specialty Vehicles segment, created by the February 2 acquisition of REV Group, contributed $436 million in sales and delivered an adjusted EBITDA margin of 14.2%, up from 12.6% on a pro‑forma basis. Environmental Solutions and Materials Processing continued to drive growth, while the Aerials segment experienced volume softness due to tariffs and an unfavorable product mix. These dynamics explain the overall margin compression to 9.9% from 10.4% in the prior year, as tariffs and integration costs weighed on profitability.
Terex’s first‑quarter backlog stood at $7.1 billion, providing strong forward visibility. Management highlighted that the company is on track to realize approximately $28 million in synergies in 2026 from eliminating duplicate overhead, and to reach a $75 million run‑rate within 24 months of the REV acquisition. The company’s adjusted EPS for the quarter was $0.98, which included roughly $0.10 of tax favorability relative to the 21% tax rate expected for the full year.
The company reaffirmed its full‑year 2026 outlook, maintaining guidance of $7.5 billion to $8.1 billion in sales and $4.50 to $5.00 in earnings per share. Management expressed confidence in sustaining this guidance despite ongoing macro‑economic uncertainty and tariff exposure, noting that sequential margin improvement is expected in the Aerials segment after the current tariff‑impacted quarter.
Investors reacted positively to the results, citing the EPS and revenue beats, the robust contribution from the newly formed Specialty Vehicles segment, and the reaffirmation of full‑year guidance as key drivers of confidence in Terex’s strategic shift toward less cyclical, essential‑services markets.
"We are off to a good start and executing to plan, including the first 58 days with REV Group in our portfolio, now operating as our Specialty Vehicles (SV) segment, which made a meaningful contribution in the quarter. Our quarter‑end backlog of $7.1 billion, supported by strong booking trends in Materials Processing, Aerials, and Terex Utilities, provides solid forward visibility. As a result, we are reiterating our full‑year outlook." – Simon Meester, President and CEO
"We continue to execute our strategy, including the integration of REV. We remain on track to deliver approximately $28 million of synergies in 2026 through the elimination of duplicate overhead and to achieve the full $75 million run‑rate within our 24‑month target." – Simon Meester, President and CEO
"Our overall first‑quarter operational financial results were consistent with our expectations. Adjusted EPS for the quarter of $0.98 which included approximately $0.10 of tax favorability when the Q1 rate is compared to our 2026 full‑year expected tax rate of 21%." – Jennifer Kong‑Picarello, Senior Vice President and Chief Financial Officer
"We're operating in an environment that still has a fair amount of uncertainty around macro conditions and tariffs." – Simon Meester, President and CEO
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