Terex (TEX) investor relations material

Executive summary

• Q2 2026 net sales reached $2.24 billion, up 50.5% year-over-year, driven by the REV acquisition and growth across all segments.

• Adjusted EBITDA was $269 million (12.0% margin), up 10.7% pro forma year-over-year, with strong contributions from Materials Processing and Specialty Vehicles.

• Bookings increased 25% year-over-year to $2.0 billion, and backlog reached $6.9 billion, supporting future revenue visibility.

• Integration of REV and synergy realization are progressing as planned, with capacity expansions and operational improvements underway.

• North America accounted for 83% of Q2 2026 sales, up from 73% in the prior year.

Financial highlights

• Adjusted EBITDA margin was 12.0%, up from 11.8% pro forma year-over-year.

• Adjusted EPS was $1.37, including an $8 million net benefit from IEEPA tariff refunds and a one-time unfavorable customs accrual.

• Net income was $110 million; adjusted net income reached $156 million.

• Free cash flow was $101 million for the quarter, up $23 million year-over-year.

• Net working capital declined to 15.2% of sales, down from 22.8% a year ago.

Outlook and guidance

• Full-year 2026 sales guidance raised to $7.9–$8.2 billion, with adjusted EBITDA of $960 million–$1 billion and adjusted EPS of $4.70–$5.10.

• Free cash flow for 2026 expected at $300–$350 million.

• 2026 EBITDA margin expected at 12.2% at midpoint, with $28 million in synergies included.

• Q3 EPS expected to be similar to Q2, with a seasonal step down in Q4.

• Assumes current tariff rates and a 21% effective tax rate.