Terex (TEX) investor relations material

Executive summary

• Q1 2026 sales reached $1.7 billion, up 41% year-over-year, driven by the REV Group acquisition and strong growth across all segments, with Specialty Vehicles contributing $436 million.

• Adjusted EBITDA was $173 million (9.9% margin), up from $128 million, and adjusted EPS was $0.98, both showing year-over-year improvement.

• Backlog increased to $7.1 billion, providing strong forward visibility.

• Integration of REV is ahead of schedule, with $28 million in synergies expected in 2026 and $75 million run-rate targeted within 24 months.

• North America now represents approximately 80% of global sales, reflecting a strategic shift to resilient markets.

Financial highlights

• Adjusted EBITDA margin was 9.9% in Q1 2026, down from 10.4% in Q1 2025, mainly due to tariff impacts and segment mix.

• Free cash outflow was $57 million, consistent with Q1 last year and reflecting merger-related costs.

• Net working capital as a percentage of sales improved to 16.7% from 26% year-over-year.

• Net leverage ratio reduced to 2.4x; net debt increased to $2.75 billion as of March 31, 2026.

• Q1 pro forma bookings were $2.1 billion, with a 109% book-to-bill ratio and strong segment bookings.

Outlook and guidance

• Full-year 2026 sales expected at $7.5–$8.1 billion, representing ~5% pro forma growth.

• Pro forma EBITDA expected to grow 12% year-over-year to $930 million–$1 billion (12.4% margin at midpoint).

• EPS guidance for 2026 is $4.50–$5.00, assuming 111 million average shares outstanding.

• Free cash conversion expected at 80–90% of net income.

• $28 million in synergies targeted for 2026 from the REV integration, aiming for $75 million run-rate within 24 months.