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Dec 31, 2025
Terex Q4 2025 Earnings Report
Terex reported strong fourth quarter and full-year 2025 results, with significant growth in bookings and improved operating margins.
Key Takeaways
Terex Corporation concluded a transformational year in 2025, achieving financial results in line with original guidance. The company reported full-year sales of $5.4 billion, with a full-year operating margin of 8.8% and adjusted operating margin of 10.4%. Fourth quarter bookings increased by 32% year-over-year, reflecting strong momentum heading into 2026.
Full-year sales reached $5.4 billion, demonstrating solid performance.
Full-year adjusted operating margin improved to 10.4%, indicating enhanced operational efficiency.
Fourth quarter bookings surged by 32% year-over-year, with a book-to-bill ratio of 145%.
Full-year free cash flow was $325 million, representing a strong 147% cash conversion rate.
Revenue by Segment
Forward Guidance
Terex expects 2026 sales to grow approximately 5% on a pro forma basis to $7.5 billion to $8.1 billion, with EBITDA projected to increase by ~$100 million or ~12% year-over-year to between $930 million and $1 billion.
Positive Outlook
- Strong Q4 bookings and backlog across all segments provide momentum for 2026.
- Expected sales growth of ~5% on a pro forma basis.
- EBITDA projected to grow by ~12% year-over-year.
- Realized synergies of ~$28 million for 2026, on target for $75 million annual run-rate within 2 years.
- EPS guide for 2026 of $4.50 - $5.00.
Challenges Ahead
- 11 months impact of the new Specialty Vehicle segment (former REV).
- Current tariff rates are expected to remain as-is, with a 12-month impact in 2026 versus partial impact in 2025.
- Interest expense of ~$190 million, consistent with pro-forma 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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