Terex Corp【TEX】株式ニュース

Terex Reports First Quarter 2026 ResultsMay 1, 2026 7:00 AM
PR Newswire (US)

Sales of $1.7 billion, up 41% on a reported basis, proforma sales up 11% Income from continuing operations of ($93) million, including significant non-cash and other merger-related charges Adjusted EBITDA7 of $173 million or 9.9% margin EPS from continuing operations of ($0.97) with an adjusted1 EPS from continuing operations of $0.98Backlog grew to $7.1 billion, Book-to-bill of 109%, providing strong forward visibilityReaffirming 2026 Outlook5: Sales of $7.5 to $8.1 billion and EBITDA7 of $930 million to $1 billion, up $100 million or 12% year over year on a proforma13,14 basis with a 12.4% EBITDA margin at the midpointNORWALK, Conn., May 1, 2026 /PRNewswire/ -- Terex Corporation (NYSE: TEX), a global leader in specialized equipment, serving essential sectors such as emergency services, waste and recycling, utilities, and construction, today announced its results for the first quarter 2026.

CEO Commentary
"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," said Simon Meester, Terex President and Chief Executive Officer. "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."First Quarter Operational and Financial HighlightsBacklog increased sequentially to $7.1 billion. Bookings of $2.1 billion were down 1.1% year over year on a pro forma basis driven by timing of orders in ES and SV and reflects a book-to-bill of 109%. Proforma bookings up 14% on a rolling six month basis.Net sales of $1.7 billion were 41.1% higher than the first quarter of 2025. Proforma net sales grew by 11% year over year including growth in every segment.EBITDA was ($7) million, or (0.4%) of net sales, compared to $106 million, or 8.7% of net sales in the prior year. Adjusted1 EBITDA was $173 million, or 9.9% of net sales for the first quarter of 2026, compared to $128 million, or 10.4% of net sales in the prior year. The year-over-year change was primarily due to the accretive addition of Specialty Vehicles, higher sales volumes in MP and operational improvement initiatives, partially offset by tariffs, which were not in effect in the prior year period, and unfavorable mix within Aerials, and product mix in ES.Income from continuing operations was ($93) million, or ($0.97) per share, compared to $21 million, or $0.31 per share, in the first quarter of 2025. Adjusted1 income from continuing operations was $94 million, or $0.98 per share for the first quarter of 2026, compared to $55 million, or $0.83 per share, in the first quarter of 2025.Business Segment ReviewEnvironmental SolutionsNet sales of $412 million were up 3.3% compared to the first quarter of 2025, driven by strong throughput and delivery of utilities products, partially offset by lower shipments of refuse collection vehicles.EBITDA was $73 million, or 17.7% of net sales, compared to $80 million, or 20.1% of net sales in the prior year. Adjusted1 EBITDA was $74 million or 18.0% of net sales for the first quarter of 2026, compared to $81 million, or 20.3% of net sales in the prior year. The change was primarily due to unfavorable product mix, partially offset by higher sales volume and synergy realization.Materials ProcessingNet sales of $419 million were up 9.7% or $37 million year over year, primarily due to higher shipment volumes across most product lines and geographies and positive effects of foreign exchange rates. On a pro forma13 basis, net sales were up 18.3% year over year, driven by growth in Aggregates, Material Handling and Recycling, partially offset by lower sales in Concrete. EBITDA was $68 million, or 16.2% of net sales, compared to $41 million, or 10.8% of net sales in the prior year. Adjusted1 EBITDA was $63 million, or 15.0% of net sales for the first quarter of 2026, compared to $43 million, or 11.2% of net sales in the prior year. The improvement was primarily due to higher sales volume, price realization and efficiency improvement.Specialty VehiclesNet sales of $436 million were up 20% year over year on a pro forma13 basis, driven by growth in all product lines, partially due to weather-related delivery timing.EBITDA was ($53) million, or (12.2%) of net sales due to merger-related non-recurring items more than offsetting operational improvements. Adjusted1 EBITDA was $62 million, or 14.2% of net sales for the first quarter of 2026, compared to $46 million, or 12.6% of net sales on a pro forma13 basis in the prior year. The improvement was primarily due to increased throughput, price realization and improved operational efficiency.AerialsNet sales of $469 million were up 4.2% or $19 million year over year, primarily due to positive effects of foreign exchange rates.EBITDA and Adjusted1 EBITDA were breakeven, or 0.1% of net sales, for the first quarter of 2026, compared to EBITDA of $8 million, or 1.8% of net sales, and Adjusted1 EBITDA of $20 million, or 4.4% of net sales in the prior year. The change in Adjusted EBITDA was primarily due to tariffs, which the business did not incur this time last year. In addition, the business also faced some temporary unfavorable mix and timing of price realization.Balance Sheet and LiquidityFree cash outflow7 of $57 million, similar to the prior year period.As of March 31, 2026, liquidity (cash and availability under our revolving line of credit) was $1.0 billion.During the first quarter of 2026, Terex deployed $26 million in capital expenditures and investments to support future business growth and operational improvements.Through March 31, 2026, Terex returned $19 million to shareholders through dividends and has approximately $183 million available for repurchase under our share repurchase programs.CFO Commentary
"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%.   Our operational EPS improvement was $0.05 compared to last year. Notably our current Q1 EPS is based on 96.1 million diluted weighted average shares outstanding, up from 66.9 million diluted weighted average shares outstanding in the first quarter of 2025," commented Jennifer Kong-Picarello, Senior Vice President and Chief Financial Officer. "I was also pleased with our net working capital efficiency improvement in the quarter which decreased to 16.7%, down 930 basis points compared with the prior year largely due to the addition of Specialty Vehicles. Looking ahead, we are confirming our full year outlook, which includes the impact of the recent change in 232 tariffs which is expected to be negligible as the vast majority of our US sales are manufactured in the US."2026 OutlookWith Q1 operational performance in line with our expectations, $7.1 billion in backlog, and end markets trending as anticipated, we are reiterating our full year outlook. We expect 2026 sales to grow ~5% on a pro forma14 basis to $7.5 to $8.1 billion. We expect EBITDA to grow by ~$100 million or ~12% year over year on a pro forma14 basis to between $930 million and $1 billion, or 12.4% EBITDA margin at the mid-point. The EPS outlook of $4.50 - $5.00 includes the following assumptions/commentary:11 months impact of the new Specialty Vehicle segment (former REV)~$28 million of realized synergies for 2026, on-target to achieving a $75 million annual run-rate within 2 yearsExcludes the divested MP cranes and Midwest RV business resultsCurrent tariff rates to stay as-is, including the recently announced changes to 232 tariffsInterest of ~$190 million, consistent with pro-forma 2025Full year effective tax rate of ~21%Full year average shares outstanding of 111 million for 2026, including ~115 million in Q2 to Q4Terex Outlook4,5,6,10,11,12,14Net Sales3$7.5B - $8.1BEBITDA1$930M - $1BEPS1,2$4.50 - $5.00FCF Conversion1580% - 90%
Segment Net Sales Outlook5
Prior Year Baseline2026Environmental Solutions$1,691MSDMaterials Processing8$1,578HSDSpecialty Vehicles9$2,179HSDAerials$2,060Flat
Figures in millions
MSD = revenue up mid single-digits
HSD = revenue up high single-digitsNon-GAAP Measures and Other ItemsResults of operations reflect continuing operations. All per share amounts are on a fully diluted basis. A comprehensive review of the quarterly financial performance is contained in the presentation that will accompany the Company's earnings conference call.In this press release, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. Management believes that presenting these non-GAAP financial measures provide investors with additional analytical tools which are useful in evaluating our operating results and the ongoing performance of our underlying businesses because they (i) provide meaningful supplemental information regarding financial performance by excluding impact of one-time items and other items affecting comparability between periods, (ii) permit investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate our core operating performance across periods, and (iii) otherwise provide supplemental information that may be useful to investors in evaluating our financial results. We do not, nor do we suggest that investors, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.The Glossary at the end of this press release contains further details about this subject.Conference callThe Company has scheduled a conference call to review the financial results on Friday, May 1, 2026 beginning at 8:30 a.m. ET. Simon A. Meester, President and CEO, and Jennifer Kong-Picarello, Senior Vice President and Chief Financial Officer, will host the call. A simultaneous webcast of this call can be accessed at https://investors.terex.com. Participants are encouraged to access the call 15 minutes prior to the starting time. The call will also be archived in the Event Archive at https://investors.terex.com. 1 Non-GAAP financial measures included within this press release are referred to as "Adjusted" or "non-GAAP." Refer to the glossary for definitions and/or reconciliations.2 Full year share count ~111 million; Q2-Q4 share count ~115 million3 Legacy sales expected to increase by 4% vs. 2025 excluding the tower and rough terrain cranes divestiture.4 Outlook assumes that tariffs broadly remain at current rates.5 Includes REV businesses for the period February 2 - December 31.6 Excludes the impact of future acquisitions, divestitures, restructuring and other unusual items.7 Free cash flow, EBITDA and Adjusted EBITDA are non-GAAP financial measures.8 2025 comparable MP revenue excludes Cranes divestiture. 9 2025 comparable SV revenue shown on a pro forma basis reflecting February 2 - December 31 2025, excludes Lance & Midwest RV businesses10 Interest / Other Expense ~$190 million11 Tax rate ~21%12 Depreciation & Amortization of ~$110 million excluding amortization pertaining to purchase price accounting13 Pro forma information presents past performance as if certain events, such as mergers, acquisitions or divestitures, had occurred at an earlier date to illustrate comparable performance.14 The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the exact timing and impact of such items. See "Glossary _ Non-GAAP Measures Definition - 2026 Outlook" below for additional information.15 Based on net income as adjusted.Forward-Looking StatementsCertain information in this press release includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act") and the Private Securities Litigation Reform Act of 1995) regarding future events or our future financial performance that involve certain contingencies and uncertainties, including those discussed in Mr. Meester's and Ms. Kong-Picarello's quotations, our Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent reports we file with the U.S. Securities and Exchange Commission from time to time, in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations – Contingencies and Uncertainties." In addition, when included in this press release, the words "may," "expects," "should," "intends," "anticipates," "believes," "plans," "projects," "estimates," "will" and the negatives thereof and analogous or similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statement is not forward-looking. We have based these forward-looking statements on current expectations and projections about future events. These statements are not guarantees of future performance. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those reflected in such forward-looking statements. Such risks and uncertainties, many of which are beyond our control, include, among others:we may be unable to successfully integrate acquired or merged businesses, including REV Group, Inc. ("REV"), and we may not realize the anticipated benefits of any merged or acquired business;we may be unable to effectively manage our expanded operations following the completion of the recent transaction with REV;potential divestitures and any retained liabilities related thereto may negatively impact our business;the timing and amount of benefits from our strategic initiatives may not be as expected;our industry is highly competitive and subject to pricing pressure, and we may fail to compete effectively;we may experience disruptions within our dealer network;the imposition of new, postponed or increased international tariffs;general economic conditions, government spending priorities and the cyclical nature of markets we serve;our outstanding debt and need to comply with covenants contained in our debt agreements;we may be unable to generate sufficient cash flow to service our debt obligations and operate our business;our access to capital markets and borrowing capacity could be limited;we may face cancellations, reductions or delays in customer orders, customer breaches of purchase agreements, backlog reductions or be unable to meet customer delivery schedules;currency exchange and translation risk;the financial condition of customers and dealers and their continued access to capital;exposure from providing credit support for some of our customers and dealers;we may experience losses in excess of recorded reserves;our common stock may be affected by factors different from those previously, and may decline as a result of the transaction with REV;political, economic and other risks that arise from operating a multinational business;changes in the availability and price of certain materials and components, which may result in supply chain disruptions;consolidation within our customer base and suppliers;failure of our equipment to perform as expected;a material disruption to one of our significant facilities;a failure of a key information technology system or a breach of our information security from increased cybersecurity threats and more sophisticated computer crime;issues related to the development, deployment and use of artificial intelligence technologies in our business operations, information systems, products and services;increased regulatory focus on privacy and data security issues and expanding laws;product liability claims, litigation and other liabilities;compliance with the United States ("U.S.") Foreign Corrupt Practices Act, the U.K. Bribery Act and similar worldwide anti-corruption laws;compliance with environmental, health and safety laws and regulations and failure to meet sustainability requirements or expectations;compliance with an injunction and related obligations imposed by the U.S. Securities and Exchange Commission ("SEC");our ability to attract, develop, engage and retain qualified team members;possible work stoppages and other labor matters; andother factors.Actual events or our actual future results may differ materially from any forward-looking statement due to these and other risks, uncertainties and material factors. The forward-looking statements contained herein speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this press release to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.About Terex
Terex Corporation is a global leader in specialized equipment solutions, serving essential sectors such as emergency services, waste and recycling, utilities, and construction. Our diversified portfolio positions us in resilient, high-demand markets with strong long-term growth potential.We design and manufacture advanced specialty vehicles—including fire, ambulance, and recreational vehicles—alongside waste collection vehicles, materials processing machinery, mobile elevating work platforms, and equipment for the electric utility industry. Through our global dealer, parts and service network and true value-creating digital solutions, we deliver best-in-class lifecycle support, helping customers maximize return on investment.With a strong manufacturing footprint in the United States and operations across Europe, India, and Asia Pacific, Terex combines global reach with local expertise to capture opportunities worldwide. Our strategy is clear: exceed customer expectations, invest in innovation, leverage our diversified portfolio, and deliver consistent, profitable growth for our shareholders. For more information, please visit www.terex.com. Contact Information
Derek Everitt
VP Investor Relations
Email: InvestorRelations@Terex.com  TEREX CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME(unaudited)(in millions, except per share data)

Three Months Ended March 31,

2026
2025Net sales$1,734
$1,229Cost of goods sold
(1,528)

(982)Gross profit
206

247Selling, general and administrative expenses
(241)

(161)Amortization of purchased intangibles
(47)

(17)Operating (loss) profit
(82)

69Other income (expense)

Interest income
4

2Interest expense
(47)

(43)Other expense – net
(1)

(2)(Loss) income before income taxes
(126)

26Benefit from (provision for) income taxes
33

(5)(Loss) income from continuing operations
(93)

21Gain on disposition of discontinued operations – net of tax
4

—Net (loss) income
(89)

21

Basic (loss) earnings per share

(Loss) income from continuing operations$(0.97)
$0.32Gain on disposition of discontinued operations – net of tax
0.04

—Net (loss) income
(0.93)

0.32Diluted (loss) earnings per share:

(Loss) income from continuing operations$(0.97)
$0.31Gain on disposition of discontinued operations – net of tax
0.04

—Net (loss) income
(0.93)

0.31Weighted average number of shares outstanding in per share calculation

Basic
96.1

66.3Diluted
96.1

66.9

Net (loss) income$(89)
$21Other comprehensive (loss) income
(12)

32Comprehensive (loss) income$(101)
$53 TEREX CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEET(unaudited) (in millions, except par value)
March 31, 2026
December 31, 2025

Assets

Current assets

Cash and cash equivalents$392
$772Other current assets
2,779

1,953Total current assets
3,171

2,725Non-current assets

Property, plant and equipment – net
935

760Other non-current assets
6,082

2,654Total non-current assets
7,017

3,414Total assets$10,188
$6,139

Liabilities and Stockholders' Equity

Current liabilities

Current portion of long-term debt$4
$6Other current liabilities
1,720

1,181Total current liabilities
1,724

1,187Non-current liabilities

Long-term debt, less current portion
2,745

2,578Other non-current liabilities
897

279Total non-current liabilities
3,642

2,857Total liabilities
5,366

4,044

Total stockholders' equity
4,822

2,095Total liabilities and stockholders' equity$10,188
$6,139 TEREX CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS(unaudited)(in millions)

Three Months Ended March 31,
2026
2025Operating Activities

Net (loss) income$(89)
$21Depreciation and amortization
77

39Changes in operating assets and liabilities and non-cash charges
(19)

(81)Net cash used in operating activities
(31)

(21)Investing Activities

Capital expenditures
(26)

(36)Other investing activities, net
(441)

10Net cash used in investing activities
(467)

(26)Financing Activities

Net cash provided by (used in) financing activities
122

(50)Effect of Exchange Rate Changes on Cash and Cash Equivalents
(4)

7Net Decrease in Cash and Cash Equivalents
(380)

(90)Cash and Cash Equivalents at Beginning of Period
772

388Cash and Cash Equivalents at End of Period$392
$298 TEREX CORPORATION AND SUBSIDIARIESSEGMENT RESULTS DISCLOSURE(unaudited)(in millions)

Q1
20262025

% of

% ofNet
SalesNet
SalesConsolidated

Net sales$1,734
$1,229
Adjusted EBITDA
1739.9 %
12810.4 %

ES

Net sales$412
$399
Adjusted EBITDA
7418.0 %
8120.3 %

MP

Net sales$419
$382
Adjusted EBITDA
6315.0 %
4311.2 %

SV

Net sales$436
$—
Adjusted EBITDA
6214.2 %
—*

Aerials

Net sales$469
$450
Adjusted EBITDA
—0.1 %
204.4 %

Corp and Other /
Eliminations

Net sales$(2)
$(2)
Adjusted EBITDA
(26)*
(16)** Not a meaningful percentage
GLOSSARYNon-GAAP Measures DefinitionsIn an effort to provide investors with additional information regarding the Company's results, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures which management believes provides useful information to investors. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. In addition, the Company believes that non-GAAP financial measures should be considered in addition to, and not in lieu of, GAAP financial measures. Terex believes that this non-GAAP information is useful to understanding its operating results and the ongoing performance of its underlying businesses. Management of Terex uses both GAAP and non-GAAP financial measures to establish internal budgets and targets and to evaluate the Company's financial performance against such budgets and targets.The amounts described below are unaudited, are reported in millions of U.S. dollars (except share data and percentages), and are as of or for the period ended March 31, 2026, unless otherwise indicated.2026 OutlookThe Company's 2026 outlook for segment operating margin, earnings per share, EBITDA, free cash flow, and free cash flow conversion are non-GAAP financial measures because they exclude the impact of potential future acquisitions, divestitures, restructuring, tariffs, trade policies and other unusual items. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the exact timing and impact of such items. The unavailable information could have a significant impact on the Company's full-year 2026 GAAP financial results. This forward looking information provides guidance to investors about the Company's 2026 Outlook excluding unusual items that the Company does not believe is reflective of its ongoing operations.Free Cash Flow
The Company calculates a non-GAAP measure of free cash flow that is defined as Net cash provided by (used in) operating activities less Capital expenditures, net of proceeds from sale of capital assets. The Company believes this measure provides management and investors further useful information on cash generation or use in our primary operations and the efficiency with which the Company converts earnings into cash. The following table reconciles Net cash provided by (used in) operating activities to free cash flow (in millions):

Three Months Ended March 31,

2026
2025Net cash used in operating activities
$                  (31)
$                  (21)Capital expenditures, net of proceeds from sale of
capital assets
(26)
(34)Free cash (outflow)
$                  (57)
$                  (55) GAAP to Non-GAAP Reconciliation: Q1 2026

Q1 2026GAAPRestructuring
and OtherDeal relatedPurchase
Price
AccountingDivestituresTaxQ1 2026Adjusted
(non-GAAP)Net Sales$1,734—————$1,734Gross Profit
2061—118——
325% of Sales
11.9 %

18.8 %SG&A
(241)—681(3)—
(175)Amortization of Purchased
Intangibles
(47)——47——
—SG&A % of Sales
(13.9 %)

(10.1 %)Operating (Loss) Profit$(82)168166(3)—$150Operating Margin
(4.7 %)

8.6 %Net Interest (Expense) Income
(43)—————
(43)Other (Expense) Income - Net
(1)—————
(1)(Loss) Income Before Income
Taxes
(126)168166(3)—
106Benefit From (Provision for)
Income Taxes
33—(10)(39)13
(12)Effective Tax Rate
26.5 %

11.0 %(Loss) Income from
Continuing Operations$(93)158127(2)3$94Earnings (Loss) per Share
from Continuing Operations$(0.97)$         0.01$       0.61$       1.32$      (0.02)$       0.03$0.98 GAAP to Non-GAAP Reconciliation: Q1 2025

Q1 2025GAAPRestructuring
and Other1Deal RelatedPurchase
Price
AccountingLitigation
RelatedMark to
MarketQ1 2025Adjusted
(non-GAAP)Net Sales$1,229—————$1,229Gross Profit
2472—4——
253% of Sales
20.1 %

20.5 %SG&A
(161)45—10—
(142)Amortization of Purchased
Intangibles
(17)——17——
—SG&A % of Sales
(13.1 %)

(11.6 %)Operating Profit$69652110—$111Operating Margin
5.6 %

9.1 %Net Interest Income (Expense)
(41)—————
(41)Other Income (Expense) - Net
(2)—1——1
–Income (Loss) Before Income
Taxes
266621101
70(Provision for) Benefit From
Income Taxes
(5)(1)(1)(5)(2)(1)
(15)Effective Tax Rate
20.3 %

21.0 %Net Income (Loss)$2155168—$55Earnings (Loss) per Share$0.31$         0.07$       0.07$       0.25$       0.13$          —$0.831Includes previously disclosed adjustments in Q1 2025 pertaining to Accelerated vesting / Severance and Tariff related activity Segment Operating Profit and Adjusted Operating Profit: Q1 2026 and Q1 2025

Three Months Ended
March 31,
2026
2025
ESMPSVAerials
ESMPAerialsOperating Profit$       49$       63$      (88)$       (7)
$       56$       36$        2Restructuring and Other1———
—22Purchase Price Accounting20—144—
21——Litigation Related————
——10Divestitures—(5)2—
———Adjusted Operating Profit$       70$       58$       58$       (7)
$       77$       38$       14

Net Sales$     412$     419$     436$     469
$     399$     382$     450OP Margin %11.9 %15.0 %(20.2 %)(1.5 %)
14.0 %9.4 %0.4 %Adjusted OP Margin %17.0 %13.8 %13.3 %(1.5 %)
19.4 %10.0 %3.0 % Reconciliation of Q1 2026 Pro Forma Net Sales Performance

Three Months Ended
March 31,2026 Net Sales (as reported)$                     1,734

2025 Net Sales (as reported)1,229Less: MP Cranes Impact1(28)Plus: Specialty Vehicles (Feb 2 - March 31)3642025 Net Sales (pro forma)$                     1,565

Pro Forma YoY Change in Net Sales$                        169
11 %1 The Adjusted EBITDA impact from the divested MP Cranes business was $1 million for the three months ended March 31, 2025
EBITDA
EBITDA is defined as earnings, before interest, other non-operating income (loss), income (loss) attributable to non-controlling interest, taxes, depreciation and amortization. The Company calculates this by subtracting the following items from Net income (loss): (Gain) loss on disposition of discontinued operations- net of tax; and (Income) loss from discontinued operations – net of tax. Then adds the Provision for (benefit from) income taxes; Interest & Other (Income) Expense; the Depreciation and Amortization amounts reported in the Consolidated Statement of Cash Flows less amortization of debt issuance costs that are recorded in Interest expense. Adjusted EBITDA is defined as EBITDA plus certain SG&A and other income/expenses.Terex believes that disclosure of EBITDA and Adjusted EBITDA will be helpful to those reviewing its performance, as EBITDA provides information on Terex's ability to meet debt service, capital expenditure and working capital requirements, and is also an indicator of profitability.

Three Months Ended March 31,
2026
2025Net (loss) income$                   (89)
$                    21(Gain) loss on disposition of discontinued operations - net of tax(4)
—Income (loss) from continuing operations(93)
21Interest & Other (Income) Expense44
43Provision for (benefit from) income taxes(33)
5Operating (loss) profit(82)
69Depreciation23
17Amortization54
22Non-Cash Interest Costs(2)
(2)EBITDA$                    (7)
$                  106Restructuring and Other1
6Deal Related68
5Purchase Price Accounting114
1Litigation Related—
10Divestitures(3)
—Adjusted EBITDA$                  173
$                  128

Net Sales$                1,734
$                1,229EBITDA Margin %(0.4 %)
8.7 %Adjusted EBITDA Margin %9.9 %
10.4 % Segment EBITDA and Adjusted EBITDA: Q1 2026 and Q1 2025

Three Months Ended
March 31,
2026
2025
ESMPSVAerials
ESMPAerialsNet income (loss)1$       49$       60$      (91)$       (8)
$       56$       33$        2Interest expense—33—
—3—Other expense———1
———Operating (Loss) Profit$       49$       63$      (88)$       (7)
$       56$       36$        2Depreciation4547
446Amortization20—31—
201—EBITDA7368(53)—
80418Restructuring and Other1———
—22Purchase Price Accounting——113—
1——Litigation Related————
——10Divestitures—(5)2—
———Adjusted EBITDA$       74$       63$       62$       —
$       81$       43$       20

Net Sales$     412$     419$     436$     469
$     399$     382$     450EBITDA Margin %17.7 %16.2 %(12.2 %)0.1 %
20.1 %10.8 %1.8 %Adjusted EBITDA Margin %18.0 %15.0 %14.2 %0.1 %
20.3 %11.2 %4.4 %1 Management does not allocate income taxes, interest costs incurred at the Corporate level, and certain other Corporate items to the segments.

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Original: Terex Reports First Quarter 2026 Results

Terex Reports Fourth Quarter and Full-Year 2025 ResultsFebruary 11, 2026 7:00 AM
PR Newswire (US)

Full-year sales of $5.4 billionFull-year operating margin of 8.8% and 10.4% as adjusted1Full-year EPS of $3.33 and adjusted1 EPS of $4.93Full-year free cash flow7 of $325 million or 147% cash conversion1Q4 bookings of $1.9 billion up 32% YOY2026 Outlook5: Sales of $7.5 billion to $8.1 billion and EBITDA7 of $930 million to $1 billion, up $100 million or 12% YOY on a pro forma13 basis with a 12.4% EBITDA margin at the midpointNORWALK, Conn., Feb. 11, 2026 /PRNewswire/ -- Terex Corporation (NYSE: TEX), a global leader in specialized equipment solutions, serving essential sectors such as emergency services, waste and recycling, utilities, and construction, today announced its results for the fourth quarter and full-year 2025.

CEO Commentary
"We concluded a transformational year for Terex, with the successful integration of ESG and the initiation of the merger with REV, coupled with solid execution by our legacy businesses in a very dynamic environment. The team navigated multiple macro and market headwinds to deliver financial results in line with our original 2025 guidance, while transforming our portfolio for the long-term." said Terex President and Chief Executive Officer Simon Meester. He added, "I am very proud of our team adapting quickly to changes in trade policy and market dynamics throughout the year while continuing to innovate, improve operations and deliver exciting new products to our customers. We head into 2026 with considerable momentum from strong Q4 bookings and backlog levels. We will focus on execution, successfully integrating REV and delivering on our synergy targets."Fourth Quarter Operational and Financial HighlightsBookings of $1.9 billion grew 32% year-over-year on a pro forma13 basis, including growth in all three segments, reflects a book-to-bill of 145%.Net sales of $1.3 billion in the fourth quarter of 2025 were 6.2% higher than the fourth quarter of 2024. Excluding ESG, our legacy revenue increased 5.4% year-over-year, driven by higher sales in Aerials and our Utilities business.Operating profit was $137 million, or 10.4% of net sales, compared to $53 million, or 4.3% of net sales, during the prior year. Adjusted1 operating profit was $123 million, or 9.3% of net sales for the fourth quarter of 2025, compared to $97 million, or 7.8% of net sales during the prior year. The higher year-over-year margin resulted from improvements in all three segments as cost productivity actions and higher volume in Environmental Solutions ("ES") and Materials Processing ("MP") more than offset higher tariff costs and other inflation.Net income was $63 million, or $0.95 per share, compared to $(2) million, or $(0.03) per share, in the fourth quarter of 2024. Adjusted1 net income was $74 million, or $1.12 per share for the fourth quarter of 2025, compared to $52 million, or $0.77 per share, in the fourth quarter of 2024.Full-Year 2025 Operational and Financial HighlightsNet sales of $5.4 billion for the full-year 2025 were 5.7% higher compared to $5.1 billion for the full-year 2024 as the addition of ESG offset declines in Aerials and MP. Excluding ESG, our legacy revenue decreased 11.0%.Operating profit was $475 million, or 8.8% of net sales for the full-year 2025, compared to $526 million or 10.3% of net sales in the prior year. Adjusted1 operating profit was $566 million, or 10.4% of net sales for the full-year 2025, compared to $582 million, or 11.3% of net sales in the prior year. The decrease was primarily driven by lower Aerials and MP sales volume, unfavorable manufacturing variances from deliberate production cuts and tariffs, partially offset by cost productivity actions, and the accretive addition of ESG.Net income for the full-year 2025 was $221 million, or $3.33 per share, compared to $335 million, or $4.96 per share, in the prior year. Adjusted1 net income was $327 million, or $4.93 per share for the full-year 2025, compared to $413 million, or $6.11 per share, in the prior year.The effective tax rate was 24.3% for the full-year 2025, compared to 17.8% in the prior year. The adjusted1 tax rate was 17.2% for the full-year in both 2025 and 2024.Business Segment ReviewEnvironmental SolutionsNet sales of $428 million for the fourth quarter of 2025 was up 14.1% on a pro forma13 basis compared to the fourth quarter of 2024, driven by strong throughput and delivery of Utility and Refuse Collection Vehicles (RCVs).Operating profit was $59 million or 13.8% of net sales. Adjusted1 operating profit was $79 million, or 18.5% of net sales, a 90 basis point improvement over the pro forma13 results in the fourth quarter of 2024, reflecting continued margin improvements in Terex Utilities.Net sales of $1.7 billion for the full-year 2025 were up 12.7% on a pro forma13 basis compared to 2024.Operating profit was $234 million for the full-year 2025, or 13.8% of net sales. Adjusted1 operating profit was $318 million, or 18.8% of net sales for the full-year 2025, a 220 basis point improvement over full-year 2024 pro forma13 results.Materials ProcessingNet sales of $428 million for the fourth quarter of 2025 was down 2.5% or $11 million year-over-year. Excluding the impact of the divestiture of the European tower and rough terrain crane businesses, MP sales increased by 2.8% in Q4 on a like for like basis compared to 2024.Operating profit was $97 million for the fourth quarter of 2025, or 22.7% of net sales, compared to $47 million, or 10.7% of net sales, in the prior year. Adjusted1 operating profit was $59 million, or 13.7% of net sales for the fourth quarter of 2025, compared to $48 million, or 10.9% of net sales, in the prior year. The margin improvement resulted from cost productivity, mix and pricing actions, which more than offset tariff and other inflationary headwinds.Net sales of $1.7 billion for the full-year 2025 were down 11.6% or $221 million year-over-year.Operating profit was $234 million for the full-year 2025, or 13.9% of net sales, compared to $252 million, or 13.2% of net sales, in the prior year. Adjusted1 operating profit was $206 million, or 12.3% of net sales for the full-year 2025, compared to $258 million, or 13.6% of net sales, in the prior year.AerialsNet sales of $466 million for the fourth quarter of 2025 were up 6.9% or $30 million year-over-year including growth in North America and EMEA.Operating profit was $10 million for the fourth quarter of 2025, or 2.1% of net sales, compared to $1 million, or 0.2% of net sales in the prior year. Adjusted1 operating profit was $12 million, or 2.6% of net sales for the fourth quarter of 2025, compared to $2 million, or 0.6% of net sales in the prior year. This was consistent with our expectations as tariff headwinds, including the expanded 232 tariff that was implemented in August, could not be fully mitigated in the period.Net sales of $2.1 billion for the full-year 2025 were down 14.5% or $350 million year-over-year.Operating profit was $103 million for the full-year 2025, or 5.0% of net sales, compared to $271 million, or 11.2% of net sales, in the prior year. Adjusted1 operating profit was $124 million, or 6.0% of net sales for the full-year 2025, compared to $276 million, or 11.4% of net sales, in the prior year.Balance Sheet and LiquidityStrong full-year free cash flow of $325 million, up from $190 million in the prior year, representing a cash conversion rate of 147%.As of December 31, 2025, liquidity (cash and availability under our revolving line of credit) was $1.6 billion.During 2025, Terex deployed $118 million in capital expenditures to support future business growth and operational improvements.In 2025, Terex returned $98 million to shareholders through dividends and the repurchase of 1.4 million shares of common stock at an average price of $38.74 per share leaving approximately $183 million available for repurchase under our share repurchase programs.CFO CommentaryJennifer Kong-Picarello, Senior Vice President and Chief Financial Officer, said, "I am very pleased that we delivered on all our key 2025 financial expectations, including $325 million of free cash flow reflecting 147% cash conversion. By completing the REV merger, we enter 2026 with even more opportunities to create value for our shareholders."  2026 Outlook With strong Q4 bookings and backlog in every segment we expect 2026 sales to grow ~5% on a pro forma13 basis to $7.5 to $8.1 billion. We expect pro forma13 EBITDA to grow by ~$100 million or ~12% YOY to between $930 million and $1 billion, or 12.4% EBITDA margin at the mid-point. The EPS outlook includes the following assumptions/commentary:11 months impact of the new Specialty Vehicle segment (former REV)~$28 million of realized synergies for 2026, on-target to achieving a $75 million annual run-rate within 2 yearsExcludes the divested MP cranes and Midwest RV business resultsCurrent tariff rates to stay as-is, 12 month impact in 2026 vs. partial impact in 2025Interest of ~$190 million, consistent with pro-forma 2025Higher effective tax rate of ~21%Dilution of 3% due to the higher number of shares outstanding at 111 million for 2026This results in an EPS guide for 2026 of $4.50 - $5.00, compared to $4.80 - $5.20 for legacy Terex:Terex 2026 Outlook4,5,6,10,11,12Net Sales3$7.5B - $8.1BEBITDA1$930M - $1BEPS1,2$4.50 - $5.00FCF Conversion180% - 90%
Segment Net Sales Outlook3
Prior Year Baseline2026Environmental Solutions$1,691MSDMaterials Processing8$1,578HSDSpecialty Vehicles (REV)9$2,179HSDAerials$2,060FlatFigures in millionsMSD = revenue up mid single-digitsHSD = revenue up high single-digits  Non-GAAP Measures and Other ItemsResults of operations reflect continuing operations. All per share amounts are on a fully diluted basis. A comprehensive review of the quarterly financial performance is contained in the presentation that will accompany the Company's earnings conference call.In this press release, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. Management believes that presenting these non-GAAP financial measures provide investors with additional analytical tools which are useful in evaluating our operating results and the ongoing performance of our underlying businesses because they (i) provide meaningful supplemental information regarding financial performance by excluding impact of one-time items and other items affecting comparability between periods, (ii) permit investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate our core operating performance across periods, and (iii) otherwise provide supplemental information that may be useful to investors in evaluating our financial results. We do not, nor do we suggest that investors, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.The Glossary at the end of this press release contains further details about this subject.Conference callThe Company has scheduled a conference call to review the financial results on Wednesday, February 11, 2026 beginning at 8:30 a.m. ET. Simon A. Meester, President and CEO, and Jennifer Kong-Picarello, Senior Vice President and Chief Financial Officer, will host the call. A simultaneous webcast of this call can be accessed at https://investors.terex.com. Participants are encouraged to access the call 15 minutes prior to the starting time. The call will also be archived in the Event Archive at https://investors.terex.com. 1 Non-GAAP financial measures included within this press release are referred to as "Adjusted" or "non-GAAP." Refer to the glossary for definitions and/or reconciliations.
2 Share count ~111 million.
3 Legacy sales expected to increase by 4% vs. 2025 excluding the tower and rough terrain cranes divestiture.
4 Outlook assumes that tariffs broadly remain at current rates.
5 Includes REV businesses for the period February 2 - December 31.
6 Excludes the impact of future acquisitions, divestitures, restructuring and other unusual items.
7 Free cash flow and EBITDA are non-GAAP financial measures.
8 2025 comparable MP revenue excludes Cranes divestiture.
9 2025 comparable SV revenue shown on a pro forma basis reflecting February 2 - December 31 2025, excludes Lance & Midwest RV businesses
10 Interest / Other Expense ~$190 million
11 Tax rate ~21%
12 Depreciation & Amortization of ~$110 million excluding amortization pertaining to purchase price accounting
13 Pro forma information presents past performance as if certain events, such as mergers, acquisitions or divestitures, had occurred at an earlier date to illustrate comparable performance.Forward-Looking StatementsCertain information in this press release includes forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act") and the Private Securities Litigation Reform Act of 1995) regarding future events or our future financial performance that involve certain contingencies and uncertainties, including those discussed in our Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent reports we file with the U.S. Securities and Exchange Commission from time to time, in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations – Contingencies and Uncertainties." In addition, when included in this press release, the words "may," "expects," "should," "intends," "anticipates," "believes," "plans," "projects," "estimates," "will" and the negatives thereof and analogous or similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statement is not forward-looking. We have based these forward-looking statements on current expectations and projections about future events. These statements are not guarantees of future performance. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those reflected in such forward-looking statements. Such risks and uncertainties, many of which are beyond our control, include, among others:we may be unable to successfully integrate acquired or merged businesses, including REV Group, Inc. ("REV"), and we may not realize the anticipated benefits of any merged or acquired business;we may be unable to effectively manage our expanded operations following the completion of the recent transaction with REV;potential divestitures and any retained liabilities related thereto may negatively impact our business;the timing and amount of benefits from our strategic initiatives may not be as expected;our industry is highly competitive and subject to pricing pressure, and we may fail to compete effectively;we may experience disruptions within our dealer network;the imposition of new, postponed or increased international tariffs;general economic conditions, government spending priorities and the cyclical nature of markets we serve;our outstanding debt and need to comply with covenants contained in our debt agreements;we may be unable to generate sufficient cash flow to service our debt obligations and operate our business;our access to capital markets and borrowing capacity could be limited;we may face cancellations, reductions or delays in customer orders, customer breaches of purchase agreements, backlog reductions or be unable to meet customer delivery schedules;currency exchange and translation risk;the financial condition of customers and dealers and their continued access to capital;exposure from providing credit support for some of our customers and dealers;we may experience losses in excess of recorded reserves;our common stock may be affected by factors different from those previously, and may decline as a result of the transaction with REV;political, economic and other risks that arise from operating a multinational business;changes in the availability and price of certain materials and components, which may result in supply chain disruptions;consolidation within our customer base and suppliers;failure of our equipment to perform as expected;a material disruption to one of our significant facilities;a failure of a key information technology system or a breach of our information security from increased cybersecurity threats and more sophisticated computer crime;issues related to the development, deployment and use of artificial intelligence technologies in our business operations, information systems, products and services;increased regulatory focus on privacy and data security issues and expanding laws;product liability claims, litigation and other liabilities;compliance with the United States ("U.S.") Foreign Corrupt Practices Act, the U.K. Bribery Act and similar worldwide anti-corruption laws;compliance with environmental, health and safety laws and regulations and failure to meet sustainability requirements or expectations;compliance with an injunction and related obligations imposed by the U.S. Securities and Exchange Commission ("SEC");our ability to attract, develop, engage and retain qualified team members;possible work stoppages and other labor matters; andother factors.Actual events or our actual future results may differ materially from any forward-looking statement due to these and other risks, uncertainties and material factors. The forward-looking statements contained herein speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this press release to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.About Terex
Terex Corporation is a global leader in specialized equipment solutions, serving essential sectors such as emergency services, waste and recycling, utilities, and construction. Our diversified portfolio positions us in resilient, high-demand markets with strong long-term growth potential.We design and manufacture advanced specialty vehicles—including fire, ambulance, and recreational vehicles—alongside waste collection vehicles, materials processing machinery, mobile elevating work platforms, and equipment for the electric utility industry. Through our global dealer, parts and service network and true value-creating digital solutions, we deliver best-in-class lifecycle support, helping customers maximize return on investment.With a strong manufacturing footprint in the United States and operations across Europe, India, and Asia Pacific, Terex combines global reach with local expertise to capture opportunities worldwide. Our strategy is clear: exceed customer expectations, invest in innovation, leverage our diversified portfolio, and deliver consistent, profitable growth for our shareholders. For more information, please visit www.terex.com. Contact Information
Derek Everitt
VP Investor Relations
Email: InvestorRelations@Terex.com TEREX CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENT OF OPERATIONS(unaudited)(in millions, except per share data)
Three Months Ended
December 31,
Twelve Months Ended
December 31,

2025
2024
2025
2024Net sales$1,318
$1,241
$5,421
$5,127Cost of goods sold
(1,070)

(1,044)

(4,370)

(4,059)Gross profit
248

197

1,051

1,068Selling, general and administrative expenses
(111)

(144)

(576)

(542)Operating Profit
137

53

475

526Other income (expense)

Interest income
5

4

12

13Interest expense
(45)

(45)

(177)

(89)Other income (expense) – net
(14)

(14)

(18)

(42)Income (loss) before income taxes
83

(2)

292

408(Provision for) benefit from income taxes
(20)

0

(71)

(73)Net income (loss)$63
$(2)
$221
$335Earnings (loss) per share:

Basic$0.96
$(0.03)
$3.36
$5.00Diluted$0.95
$(0.03)
$3.33
$4.96Weighted average number of shares outstanding in per share calculation

Basic
65.6

66.7

65.8

67.0Diluted
66.3

67.3

66.3

67.6 TEREX CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEET(unaudited) (in millions, except par value)
December 31,
2025
December 31,
2024

Assets

Current assets

Cash and cash equivalents$772
$388Other current assets
1,953

1,932Total current assets
2,725

2,320Non-current assets

Property, plant and equipment – net
760

714Other non-current assets
2,654

2,696Total non-current assets
3,414

3,410Total assets$6,139
$5,730

Liabilities and Stockholders' Equity

Current liabilities

Current portion of long-term debt$6
$4Other current liabilities
1,181

1,069Total current liabilities
1,187

1,073Non-current liabilities

Long-term debt, less current portion
2,578

2,580Other non-current liabilities
279

245Total non-current liabilities
2,857

2,825Total liabilities
4,044

3,898

Total stockholders' equity
2,095

1,832Total liabilities and stockholders' equity$6,139
$5,730 TEREX CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS(unaudited)(in millions)
Year Ended December 31,

2025
2024
Operating Activities

Net income (loss)$221
$335
Depreciation and amortization
158

82
Changes in operating assets and liabilities and non-cash charges
61

(91)
Net cash provided by (used in) operating activities
440

326
Investing Activities

Capital expenditures
(118)

(137)
Other investing activities, net
150

(1,990)
Net cash provided by (used in) investing activities
32

(2,127)
Financing Activities

Net cash provided by (used in) financing activities
(123)

1,837
Effect of exchange rate changes on cash and cash equivalents
35

(19)
Net increase (decrease) in cash and cash equivalents
384

17
Cash and cash equivalents at beginning of year
388

371
Cash and cash equivalents at year end$772
$388
TEREX CORPORATION AND SUBSIDIARIESSEGMENT RESULTS DISCLOSURE(unaudited)(in millions)
Q4
Year to Date
20252024
20252024

% of

% of

% of

% ofNet
SalesNet
Sales
Net
SalesNet
SalesConsolidated

Net sales$1,318
$1,241

$5,421
$5,127
Operating profit$13710.4 %$534.3 %
$4758.8 %$52610.3 %

ES

Net sales
428

368

1,691

822
Operating profit
5913.8 %
287.6 %

23413.8 %
8210.0 %

MP

Net sales$428
$439

$1,681
$1,902
Operating profit$9722.7 %$4710.7 %
$23413.9 %$25213.2 %

Aerials

Net sales$466
$436

$2,060
$2,410
Operating profit$102.1 %$10.2 %
$1035.0 %$27111.2 %

Corp and Other / Eliminations

Net sales$(4)
$(2)

$(11)
$(7)
Operating (loss)$(29)*$(23)*
$(96)*$(79)** - Not a meaningful percentage

GLOSSARYNon-GAAP Measures DefinitionsIn an effort to provide investors with additional information regarding the Company's results, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures which management believes provides useful information to investors. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. In addition, the Company believes that non-GAAP financial measures should be considered in addition to, and not in lieu of, GAAP financial measures. Terex believes that this non-GAAP information is useful to understanding its operating results and the ongoing performance of its underlying businesses. Management of Terex uses both GAAP and non-GAAP financial measures to establish internal budgets and targets and to evaluate the Company's financial performance against such budgets and targets.The amounts described below are unaudited, are reported in millions of U.S. dollars (except share data and percentages), and are as of or for the period ended December 31, 2025, unless otherwise indicated.2026 Outlook
The Company's 2026 outlook for segment operating margin, earnings per share, EBITDA, free cash flow, and free cash flow conversion are non-GAAP financial measures because they exclude the impact of potential future acquisitions, divestitures, restructuring, tariffs, trade policies and other unusual items. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the exact timing and impact of such items. The unavailable information could have a significant impact on the Company's full-year 2026 GAAP financial results. This forward looking information provides guidance to investors about the Company's 2026 Outlook excluding unusual items that the Company does not believe is reflective of its ongoing operations.Free Cash Flow
The Company calculates non-GAAP measures of free cash flow and free cash flow conversion. The Company defines free cash flow as Net cash provided by (used in) operating activities less Capital expenditures, net of proceeds from sale of capital assets and free cash flow conversion as free cash flow divided by GAAP net income. The Company believes that these measures provide management and investors further useful information on cash generation or use in our primary operations and the efficiency with which the Company converts earnings into cash. The following table reconciles Net cash provided by (used in) operating activities to free cash flow (in millions) and free cash flow conversion:

Year Ended
December 31, 2025
Year Ended
December 31, 2024Net cash provided by (used in) operating activities
$                           440
$                           326Capital expenditures, net of proceeds from sale of capital assets
(115)
(136)Free cash flow (use)
$                           325
$                           190

Net income (loss)
$                           221
$                           335Free cash flow conversion
147 %
57 % GAAP to Non-GAAP Reconciliation: Q4 2025
Q4 2025GAAPRestructuring
and OtherDeal
RelatedPurchase
Price
AccountingDivestituresTaxQ4 2025Non-GAAPNet Sales$1,318—————$1,318Gross Profit
2481—20——
269% of Sales
18.8 %

20.4 %SG&A
(111)42—(41)—
(146)% of Sales
(8.4) %

(11.1) %Operating Profit
1375220(41)—
123Operating Margin
10.4 %

9.3 %Net Interest Income (Expense)
(40)—————
(40)Other Income (Expense) - Net
(14)—11———
(3)Income (Loss) Before Income Taxes
8351320(41)—
80(Provision for) Benefit From Income Taxes
(20)(1)(3)(5)1013
(6)Effective Tax Rate
23.6 %

8.1 %Net Income (Loss)$6341015(31)13$74Earnings (Loss) per Share$0.95$             0.06$          0.15$          0.23$         (0.47)$          0.20$1.12 GAAP to Non-GAAP Reconciliation: FY 2025
FY 2025GAAPRestructuring
and OtherDeal
RelatedPurchase
Price
AccountingLitigation
RelatedEquity
Security
RelatedDivestituresTaxFY 2025Non-GAAPNet Sales$5,421———————$5,421Gross Profit
1,05112—81————
1,144% of Sales
19.4 %

21.1 %SG&A
(576)1612110—(41)—
(578)% of Sales
(10.6) %

(10.7) %Operating Profit
47528128210—(41)—
566Operating Margin
8.8 %

10.4 %Net Interest Income (Expense)
(165)———————
(165)Other Income (Expense) - Net
(18)—14——(3)——
(7)Income (Loss) Before Income Taxes
29228268210(3)(41)—
394(Provision for) Benefit From Income Taxes
(71)(7)(6)(19)(2)11027
(67)Effective Tax Rate
24.3 %

17.2 %Net Income (Loss)$2212120638(2)(31)27$327Earnings (Loss) per Share$3.33$             0.32$       0.30$         0.96$       0.12$     (0.04)$         (0.47)$       0.41$4.93 GAAP to Non-GAAP Reconciliation: Q4 2024
Q4 2024GAAPRestructuring
and OtherDeal
RelatedPurchase
Price
AccountingTaxQ4 2024Non-GAAPNet Sales$1,241————$1,241Gross Profit
1971—38—
236% of Sales
15.9 %

19.0 %SG&A
(144)32——
(139)% of Sales
(11.6) %

(11.2) %Operating Profit
534238—
97Operating Margin
4.3 %

7.8 %Net Interest Income (Expense)
(41)————
(41)Other Income (Expense) - Net
(14)—16——
2Income (Loss) Before Income Taxes
(2)41838—
58(Provision for) Benefit From Income Taxes
—(1)(4)(9)8
(6)Effective Tax Rate
1.3 %

10.9 %Net Income (Loss)$(2)314298$52Earnings (Loss) per Share$(0.03)0.040.210.430.12$0.77 GAAP to Non-GAAP Reconciliation: FY 2024
FY 2024GAAPRestructuring
and OtherDeal
RelatedPurchase
Price
AccountingEquity
Security
RelatedTaxFY 2024Non-GAAPNet Sales$5,127—————$5,127Gross Profit
1,0686—38——
1,112% of Sales
20.8 %

21.7 %SG&A
(542)102———
(530)% of Sales
(10.6) %

(10.3) %Operating Profit
52616238——
582Operating Margin
10.3 %

11.3 %Net Interest Income (Expense)
(76)—————
(76)Other Income (Expense) - Net
(42)—26—9—
(7)Income (Loss) Before Income Taxes
4081628389—
499(Provision for) Benefit From Income Taxes
(73)(4)(6)(9)(2)8
(86)Effective Tax Rate
17.8 %

17.2 %Net Income (Loss)$33512222978$413Earnings (Loss) per Share$4.960.170.330.430.100.12$6.11 Segment Operating Profit and Adjusted Operating Profit: Q4 2025 and 2024
Three Months Ended December 31,
2025
2024
ESMPAerials
ES
MPAerialsOperating Profit$           59$           97$           10
$           28
$           47$             1Restructuring and Other—32
—
11Purchase Price Accounting20——
38
——Divestitures—(41)—
—
——Adjusted Operating Profit795912
66
482

Net Sales428428466
3751439436OP Margin %13.8 %22.7 %2.1 %
7.5 %110.7 %0.2 %Adjusted OP Margin %18.5 %13.7 %2.6 %
17.6 %110.9 %0.6 % 1 Shown on a pro forma13 basis. All other pro forma13 adjustments are insignificant
Segment Operating Profit and Adjusted Operating Profit: FY 2025 and 2024
Twelve Months Ended December 31,
2025
2024
ESMPAerials
ES
MPAerialsOperating Profit$        234$        234$        103
$        2111$        252$        271Restructuring and Other11311
—
65Deal Related1——
—
——Purchase Price Accounting82——
38
——Litigation Related——10
—
——Divestitures—(41)—
—
——Adjusted Operating Profit318206124
249
258276

Net Sales1,6911,6812,060
1,50011,9022,410OP Margin %13.8 %13.9 %5.0 %
14.1 %113.2 %11.2 %Adjusted OP Margin %18.8 %12.3 %6.0 %
16.6 %113.6 %11.4 % 1 Shown on a pro forma13 basis

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Original: Terex Reports Fourth Quarter and Full-Year 2025 Results