Terex posts $2.3 billion in orders and raises the low end of its 2026 sales outlook
Key Facts
Terex said on October 28 that net income was $114 million in the third quarter of 2026, while adjusted net income reached $171 million. The company reported diluted earnings of $1.00 per share and adjusted diluted earnings of $1.50. Orders totaled $2.3 billion, up 52.7% year over year on a pro forma basis, while backlog at quarter-end reached $7 billion, up 12.9% on the same basis. The company said orders increased across all four segments, providing better visibility into future business. Actual sales of $2.2 billion also exceeded the revenue estimate of $2.16 billion, according to Investing.com.
Adjusted EBITDA was $286 million, with a margin of 13.0%, up 13.9% on a pro forma basis from a year earlier. Adjusted earnings per share of $1.50 exceeded analysts’ estimate of $1.42 by $0.08, according to Investing.com. Before the results were announced, forecasts pointed to revenue of $2.16 billion, with a possible 3.6% decline from second-quarter revenue of $2.24 billion. In the second quarter, the company reported sales of $2.2 billion and adjusted earnings per share of $1.37, with pro forma sales growth of 8.5% year over year. Adjusted earnings per share therefore increased from the previous quarter, while third-quarter revenue came in above the prior consensus.
By segment, sales in the Aerial Work Platforms segment rose to $709 million, up 32.0% from a year earlier. Terex attributed the increase mainly to higher shipments, driven by strong demand from national customers and increased capital spending by customers on large projects. Sales in the Specialty Vehicles segment totaled $657 million, up 8.1% year over year on a pro forma basis. Adjusted EBITDA in the segment rose to $105 million, compared with $79 million in the comparable period on a pro forma basis. The company attributed the improvement to operating efficiencies and pricing and cost discipline, partly offset by inflationary pressures.
Chief Executive Simon Meester said order activity was strong across all four segments and that the $7 billion backlog “provides important forward visibility across the business portfolio.” The quarter also saw the company generate $241 million in operating cash flow and $209 million in free cash flow. It reduced debt by $113 million and returned $91 million to shareholders through share repurchases and dividends. On October 28, the board approved a new $500 million share repurchase authorization. The move brought the total amount available for repurchases to $611 million.
Terex narrowed its 2026 sales outlook to $8.0–8.2 billion and expects adjusted EBITDA of between $930 million and $960 million. It also forecast free cash flow of between $360 million and $400 million and adjusted earnings per share of between $4.80 and $5.00. Analysts’ consensus for sales is $8.15 billion, while consensus earnings per share are $4.99, according to Investing.com. The company said it was making progress on the separation of its Aerial Work Platforms segment, moving from assessing inbound interest to active discussions with several potential strategic parties. TEX shares closed at $49.68 on October 27, then rose 0.85% in premarket trading after the results announcement.