Terex Corporation

What they do

Terex designs, builds and supports equipment used in maintenance, manufacturing, energy, waste and recycling, minerals and materials management, construction, emergency response and entertainment. Products are manufactured in North America, Europe and Asia Pacific and sold worldwide, with lifecycle support through a global parts and services organization and digital solutions. The company reports segments including Environmental Solutions, Materials Processing, Specialty Vehicles and Aerials.

Revenue drivers

• Environmental Solutions (ES) — Waste, recycling and utility equipment sold under brands including Heil, Marathon, 3rd Eye, Soft-Pak and Curotto-Can, with manufacturing in Fort Payne and Vernon, Alabama and utility operations in South Dakota, China, Wisconsin and Alabama.
• Materials Processing (MP) — Crushers, screens, washing systems, wood and biomass equipment, concrete mixer trucks and pavers, and material handlers marketed under Terex, Powerscreen, Fuchs, EvoQuip, Cedarapids, Finlay and other brands, with mobile crushers made in Omagh, Northern Ireland.
• Specialty Vehicles (SV) — Added through the REV Transaction that closed February 2, 2026, covering commercial and custom fire and ambulance vehicles and recreational vehicles; generated $650 million of net sales and $94 million of adjusted EBITDA in Q2 2026.
• Aerials — Mobile elevating work platforms (MEWPs) used in construction and maintenance, one of the company's three historically reported segments alongside ES and MP.

Recent performance

Second quarter 2026 net sales were $2,238 million, up from $1,487 million a year earlier and including $650 million from Specialty Vehicles. Adjusted EBITDA was $269 million, including $94 million from SV, versus $182 million in the prior-year period. Revenue grew in all segments and bookings increased 25% year-over-year on a proforma basis. Free cash flow was $101 million versus $78 million a year earlier, and backlog was $6.9 billion at June 30, 2026. North American sales were approximately 83% of total sales in Q2 2026, up from 73% a year earlier.

Strategy

Management is integrating the legacy Terex and REV organizations and deploying the Terex Operating System across the enterprise to improve operational execution, reduce fixed costs and drive productivity. The company is focused on realizing REV synergies, improving operational consistency and leveraging combined scale. Capital allocation priorities include generating operating cash through better net working capital management and returning value to shareholders through dividends and opportunistic share repurchases. Net working capital as a percentage of trailing three-month annualized net sales was 15.2% at June 30, 2026, down from 22.8% a year earlier.

Risks

• REV integration risk — The company may fail to successfully integrate REV or realize the expected combination benefits, and management will devote significant attention and resources to the integration process.
• Assumed liabilities from acquisitions — Terex may acquire or assume unexpected liabilities in mergers and acquisitions, which have been a significant component of its growth strategy.
• Refuse collection vehicle softness — The ES segment is navigating temporary softness in refuse collection vehicles, with some customers managing capital spending and digesting recently delivered fleet.
• Integration execution on operations and systems — Unforeseen difficulties may arise in integrating operations and systems, and faulty assumptions may be made about the integration process.

Outlook

Backlog of $6.9 billion at June 30, 2026 provides what management calls solid coverage and supports confidence in the second half and its updated full-year outlook. Management describes the demand environment as positive and improving in many verticals, citing U.S. non-residential construction starts up 18% to $368 billion year to date and approximately $80 billion of mega project starts through May. It also cites policy activity including the 21st Century ROAD to Housing Act and the introduced BUILD America 250 Act, while noting timing and implementation may vary. Waste and recycling demand is supported by fleet replacement and demographic trends, utility demand by grid investment, and Aerials and MP by infrastructure funding and a mega project pipeline expected to provide a tailwind through at least 2030.