Terex Corp. reported fourth‑quarter 2025 revenue of $1.318 billion, a 6.2% year‑over‑year increase that fell just short of the $1.33 billion consensus estimate. The growth was driven by a 32% rise in bookings and strong performance in the Environmental Solutions and Materials Processing segments, which together contributed $137 million in operating profit, up 14.1% and 9% respectively from the same quarter a year earlier.
GAAP earnings per share were $0.95, missing the consensus of $1.00, while adjusted EPS reached $1.12, matching the $1.11–$1.12 consensus range. The adjusted beat was largely a result of disciplined cost management and higher volume in high‑margin segments, offsetting tariff‑related cost pressures that weighed on the GAAP figure.
The Environmental Solutions segment posted $59 million in operating profit, up 14.1% YoY, reflecting robust demand for its waste‑and‑recycling solutions. Materials Processing added $78 million, driven by increased throughput and favorable pricing. Together, these segments helped offset weaker performance in legacy crane businesses, which saw modest margin compression due to higher input costs.
Management guided 2026 sales to $7.5 billion–$8.1 billion, with a $7.8 billion midpoint that is roughly 31% above analyst expectations. Adjusted EBITDA guidance of $930 million–$1.0 billion reflects a 12% improvement in operating margins, underscoring confidence in cost discipline and demand momentum.
The merger with REV Group, completed on February 2, 2026, is a key strategic milestone. Integration is expected to unlock $75 million of run‑rate value by 2028, with about half realized in the first year, reinforcing the company’s transformation into a diversified specialty equipment leader.
CEO Simon Meester emphasized the company’s successful portfolio transformation, noting that the firm navigated tariff headwinds and maintained execution momentum. CFO Jennifer Kong‑Picarello highlighted a $325 million free‑cash‑flow figure and expressed confidence in the 2026 outlook, citing the merger’s synergies and strong backlog.
Investor sentiment reflected optimism around the robust guidance and merger completion, tempered by the GAAP EPS miss, indicating a balanced view of short‑term profitability versus long‑term growth prospects.
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