Terex raises full-year outlook as sales climb 50.5%
The lifting and material-handling manufacturer reported second-quarter net sales of $2.2 billion.
Terex (TEX) reported second-quarter net sales of $2.2 billion, an increase of 50.5% on a reported basis year-over-year. The lifting and material-handling manufacturer saw pro forma sales rise 8.5% during the period.
The results reflected a period of portfolio expansion and divergent segment performance. Adjusted EBITDA for the quarter was $269 million, representing a 12.0% margin. This figure marked a pro forma increase of $26 million, or 10.7%, compared to the second quarter of 2024.
Growth was supported by a newly added Specialty Vehicles segment, which reported net sales of $650 million and Adjusted EBITDA of $94 million, a 14.5% margin. Bookings for the quarter reached $2.0 billion, up 25.2% year-over-year on a pro forma basis, though the book-to-bill ratio stood at 90%.
Segment margins showed mixed results. The Materials Processing segment expanded its Adjusted EBITDA margin to 18.8% from 13.8% in the prior-year period due to favorable mix, price, and higher volume absorption. Conversely, the Environmental Solutions segment saw its margin compress to 17.5% from 20.0% due to lower RCV volume and production ramp-up inefficiencies in Utilities.
Inflationary pressures and tariffs weighed on the Aerials segment, where the Adjusted EBITDA margin declined to 5.7% from 9.1% in the second quarter of 2024. Despite these headwinds, free cash flow for the quarter rose to $101 million, an increase of $23 million over the prior-year period.
Terex raised its full-year 2026 sales outlook to a range of $7.9 billion to $8.2 billion, up from the $7.5 billion to $8.1 billion range provided in the first quarter. The company also increased its full-year Adjusted EBITDA guidance to between $960 million and $1.0 billion, compared to a previous range of $930 million to $1.0 billion.
Backlog decreased to $6.9 billion in the second quarter from $7.1 billion in the first quarter of 2026.