Terex Corporation

Consolidated sales were $2.24 billion, up $751 million or 51% as reported; on a pro forma basis, sales increased 8.5% year over year. Adjusted EBITDA was $269 million, up $26 million or 10.7% pro forma, and adjusted EBITDA margin was 12% versus 11.8% in the prior-year pro forma quarter. Adjusted EPS was $1.37, including an $8 million net benefit from IEEPA tariff refunds plus a one-time unfavorable customs-related accrual. Operating cash flow was $128 million and free cash flow was $101 million; net debt was $2.28 billion, including $407 million of cash, and net leverage improved to 2.3x. For 2026, Terex now expects sales of $7.9 billion to $8.2 billion, adjusted EBITDA of $960 million to $1 billion, adjusted EPS of $4.70 to $5.10, and free cash flow of $300 million to $350 million.

Simon Meester said the quarter showed broad-based demand improvement, better earnings conversion, and execution across the portfolio. He emphasized that the REV and ESG acquisitions are trending above their original business cases and that the company is focused on converting backlog more profitably, improving throughput, realizing synergies, and launching new products. His tone was constructive and confident, but he repeatedly pointed to ongoing work on tariffs, capacity ramps, and the Aerials strategic review.

Jennifer Kong-Picarello highlighted stronger profitability, improved working capital, and solid cash generation. She noted net working capital fell to 13.2% of sales from 16.7% in Q1 and 22.8% a year ago, operating cash flow was $128 million, free cash flow was $101 million, and net leverage improved to 2.3x. She also said the company expects about $28 million of synergies in the EBITDA outlook, roughly $185 million of interest and other expense based on average debt of $2.7 billion, a 21% tax rate for the full year, and a second-half share count of about 114 million.

Analysts focused on Environmental Solutions, Specialty Vehicles, Aerials margins, MP margin progression, and the timing of the Aerials review. Management said ESG refuse demand is improving but the expected second-half 2026 pre-buy ahead of 2027 EPA rules has shifted out, which is why full-year ESG growth was trimmed to low single digits; they also said Q3 margins should look similar to Q2 before stepping up in Q4. On Specialty Vehicles, management said backlog should keep falling as throughput improves and lead times come down, and on Aerials they said Q2 margins were better than expected, pricing is moving toward neutrality for the year, and the strategic review has no predetermined timeline. They also said there was no material financial impact from EPA changes because engine cost is passed through.