Highlights

  • Third quarter 2026 net sales were $2.2 billion, up 58.4% reported, with pro forma net sales up 11.6%.
  • Third quarter net income was $114 million, or $1.00 per diluted share, with adjusted diluted EPS of $1.50.
  • Refined 2026 outlook includes sales of $8.0 to $8.2 billion and adjusted EBITDA of $930 million to $960 million.
  • The Board approved a new $500 million share repurchase program, totaling $611 million available for repurchase.

Terex Corporation (NYSE:TEX) shares were trading at USD 53.08 on October 28, 2026, up 6.83%, with a relative volume at time of 4.85. The specialized equipment maker said it is engaging with multiple strategic counterparties on a separation of its Aerials segment, and on October 28, 2026 it reported third quarter 2026 results, a refined full-year outlook and a new repurchase authorization.

Terex is incorporated in Delaware and lists its principal executive offices in Norwalk, Connecticut. The company designs and manufactures specialized equipment serving emergency services, waste and recycling, utilities and construction. Products include fire, ambulance and recreational vehicles, waste collection vehicles, materials processing machinery and mobile elevating work platforms. Terex reports four segments: Environmental Solutions, Materials Processing, Specialty Vehicles and Aerials. The Specialty Vehicles segment was formerly REV Group.

Third Quarter 2026 Results

Net sales for the third quarter ended September 30, 2026 were $2,197 million, compared with $1,387 million a year earlier. Net income was $114 million, or $1.00 per diluted share, compared with $65 million, or $0.98 per diluted share. On a non-GAAP basis, adjusted net income was $171 million, or $1.50 per diluted share, compared with $100 million, or $1.50 per diluted share. Adjusted EBITDA, also non-GAAP, was $286 million, or a 13.0% margin.

Bookings were $2.3 billion, which the company stated increased 52.7% year over year on a pro forma basis, with a book-to-bill of 103%. Backlog was $7.0 billion, which it stated increased $802 million, or 12.9%, on a pro forma basis.

By segment, Environmental Solutions net sales were $400 million, down 8.0%, primarily due to lower shipments of refuse collection vehicles. Its adjusted EBITDA was $61 million, compared with $83 million, and the company cited mix, production ramp-up inefficiencies in Utilities, under-absorption and inflationary pressures. Aerials net sales were $709 million, up 32.0%. Aerials adjusted EBITDA was $62 million, compared with $56 million, and the company cited customer mix, inflationary and tariff pressures.

For the nine months ended September 30, 2026, net sales were $6,169 million and net income was $135 million, compared with $158 million.

Balance Sheet, Cash Flow and Capital

Free cash flow, a non-GAAP measure, was $209 million in the third quarter, up $79 million from the prior year period. Net cash provided by operating activities was $241 million, compared with $154 million. Cash and cash equivalents were $407 million at September 30, 2026, and long-term debt, less current portion, was $2,554 million.

During the quarter, Terex returned $19 million to shareholders through dividends and $72 million through share repurchases, leaving approximately $111 million available under its current programs. The Board authorized a new $500 million share repurchase program, bringing the total available to $611 million.

Aerials Separation

In the release, the chief executive officer said Terex has advanced the carve-out work on the separation of the Aerials segment and moved from evaluating inbound interest to active engagement with multiple strategic counterparties. He said the priority is a successful outcome that maximizes value for shareholders. The release announces no transaction or timing.

2026 Outlook

Terex said it is refining its full-year outlook. It expects 2026 sales to grow approximately 8.5% on a pro forma basis to $8.0 to $8.2 billion, and adjusted EBITDA of $930 million to $960 million, or an 11.7% margin at the midpoint. It expects adjusted diluted EPS of $4.80 to $5.00 and free cash flow of $360 million to $400 million.

The outlook assumes current tariff rates, approximately $28 million of realized synergies in 2026 and a full-year effective tax rate of approximately 19%. It excludes future acquisitions, divestitures and restructuring items. On the call, management said fourth quarter results typically step down seasonally.