Terex Earnings Call Transcripts
Fiscal Year 2026
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Q2 saw strong revenue and EBITDA growth, with all segments contributing and bookings up 25% year-over-year. Full-year guidance was raised on the back of robust demand, a $6.9 billion backlog, and successful integration of recent acquisitions. Tariff headwinds and mix shifts are being managed, with margin expansion in most segments.
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The meeting highlighted a year of transformation with successful mergers and integrations, expansion of the board, and approval of all shareholder proposals, including director elections, executive compensation, incentive plan, and auditor ratification.
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Sales rose 41% year-over-year to $1.7B, with strong growth in all segments and a robust $7.1B backlog. 2026 guidance is reaffirmed, targeting 5% sales growth, 12% EBITDA growth, and $4.50–$5.00 EPS, as integration of the REV Group progresses ahead of schedule.
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Stockholders approved the issuance of shares for the merger with REV Group, a move described as transformational. The board unanimously supported the proposal, and final voting results will be filed with the SEC.
Fiscal Year 2025
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Merger with REV Group completed, driving scale, synergies, and a diversified portfolio. 2025 results met expectations with 6% sales growth and strong cash flow; 2026 guidance calls for 5% sales growth, $930M–$1B EBITDA, and continued margin expansion, with robust backlogs and segment momentum.
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A merger will create a U.S.-centric specialty equipment leader with a balanced, less cyclical portfolio, targeting $75 million in annual synergies and a 14% EBITDA margin. The deal includes a $425 million cash payout to REV shareholders and an exit from the aerial segment, with completion expected in H1 2026.
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Q2 results met expectations with $1.5B sales, 11% margin, and strong free cash flow. ES outperformed, offsetting Aerials' headwinds, and full-year guidance is maintained with higher H2 EPS expected from tariff mitigation and MP margin gains.
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Q1 2025 results exceeded expectations with strong ES performance and robust backlog. Full-year guidance is maintained despite tariff headwinds, with sales growth driven by the ESG acquisition and ongoing margin improvements expected in Aerials and MP.
Fiscal Year 2024
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Full-year EPS reached $6.11 on $5.1B sales, with strong ESG accretion and robust backlog. 2025 guidance calls for $5.4B sales, 12% margin, and $4.70–$5.10 EPS, with growth led by ESG and steady public sector demand, while legacy segments face headwinds.
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Q3 sales declined 6% year-over-year to $1.2B, with EPS of $1.46 and EBITDA of $141M. The ESG acquisition is accretive, expected to add $40M in Q4 EBITDA, and integration is underway. Full-year guidance includes $5.0B–$5.2B revenue and $635M–$670M EBITDA.
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Q2 2024 saw $1.4B revenue and $2.16 adjusted EPS, with AWP strength offsetting MP softness. 2024 guidance was reaffirmed, and the ESG acquisition is set to diversify growth. Backlog remains strong, with robust US demand and margin improvements expected as operational efficiencies increase.
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A $2B all-cash acquisition of ESG will expand the addressable market, reduce cyclicality, and deliver $25M in annual synergies by 2026. The deal is expected to be double-digit EPS accretive in 2025, with closing targeted for Q4 2024, and will create a new Environmental Solutions segment.
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Strong financial performance and margin expansion are driven by portfolio optimization, innovation, and operational improvements. Growth is supported by infrastructure trends, electrification, and expansion in India, with disciplined M&A and capital allocation strategies.