Terex raises 2026 outlook after Q2 sales jump

Genie’s new GTH-1544 pick-and-carry model. (Image: Genie).

Pro forma sales, which strip out the REV Group acquisition and the divested Materials Processing cranes and Midwest RV businesses, grew 8.5%, with growth in every segment.

Net income was $110 million, or $0.96 per diluted share, up from $72 million, or $1.09 per share, in the second quarter of 2025. Adjusted net income was $156 million, or $1.37 per share, compared with $98 million, or $1.49 per share, a year earlier. Adjusted EBITDA rose 10.7% on a pro forma basis to $269 million, a 12.0% margin, driven by improvements in the Materials Processing and Specialty Vehicles segments.

Bookings rose 25.2% year-on-year on a pro forma basis to $2.0 billion, a book-to-bill ratio of 90%, and backlog reached $6.9 billion, up 3.9% on a pro forma basis.

By segment, Environmental Solutions net sales rose 5.9% to $456 million, though adjusted EBITDA margin fell to 17.5% from 20.0% on inefficiencies tied to a Utilities production ramp-up and lower refuse collection vehicle volumes. Materials Processing net sales were up 11.1% on a pro forma basis to $464 million, with adjusted EBITDA margin improving to 18.8% from 13.8%, driven by mobile crusher demand tied to US road and infrastructure construction. Specialty Vehicles, which now includes the former REV Group business, posted net sales of $650 million, up 6.2% pro forma, on higher fire apparatus shipments and price realisation. Aerials net sales rose 10.9% to $673 million on shipments to national customers for mega-projects, but adjusted EBITDA margin fell to 5.7% from 9.1% on tariff costs and inflationary pressure.

Free cash flow was $101 million, up $23 million year-on-year. Terex returned $20 million to shareholders through dividends in the quarter and has approximately $183 million remaining under its share repurchase programme. Liquidity stood at $1.1 billion as of 30 June 2026.

President and CEO Simon Meester said the quarter reflected “revenue growth in all segments, improved profitability, and positive booking trends” and that the company was making meaningful progress integrating REV Group and realising expected synergies.

Chief Financial Officer Jennifer Kong-Picarello said adjusted EPS for the quarter included around $8 million of IEEPA tariff refunds, net of a one-time customs-related accrual, and that first-half results had exceeded expectations.

Terex raised its full-year 2026 outlook to net sales of $7.9 billion to $8.2 billion, up approximately 7% on a pro forma basis, and adjusted EBITDA of $960 million to $1.0 billion, a 12.2% margin at the midpoint, up $124 million, or 14.5%, on a pro forma basis versus 2025. The company’s adjusted EPS outlook of $4.70 to $5.10 assumes current tariff rates hold, around $28 million of realised REV synergies this year against a $75 million annual run-rate target within two years, interest expense of approximately $185 million, a full-year effective tax rate of around 21%, and average diluted shares outstanding of 110 million for the year.

Update on Genie sale

On its earnings call, Terex CEO Simon Meester said the company is conducting a strategic review of Aerials – the segment that includes the Genie brand – and received interest from multiple parties.

“There is no predetermined timeline,” Meester acknowledged. “We are focused on making the right decision.”

He also said Aerials’ improving performance this quarter doesn’t change the long-term strategic thinking behind the review, cautioning against reading too much into one quarter’s results either way.

No further detail was offered on what an outcome might look like or when to expect an update.