Terex reports fourth-quarter sales growth and reveals consolidation-driven outlook for 2026
Business Overview
Terex Corporation (NYSE: TEX) reported results for the fourth quarter and full year 2025 following the completion of its merger with REV Group. The company operates across the Environmental solutions, materials processing, and Aerials, utilities, waste and recycling, infrastructure, and construction markets. In the year ended December 31, 2025, the combined sales reached $ 5.421 billion compared to $ 5.127 billion in 2024.
Financial Performance
Total sales for the fourth quarter of 2025 were $1.318 billion, up 6.2% from $1.241 billion in the year-ago quarter. Operating profit rose to $137 million from $53 million year over year. Net income was $63 million, or $0.95 per diluted share, compared to a net loss of $2 million, or $(0.03) per diluted share, in the fourth quarter of 2024. For the full year 2025, operating profit was $475 million, or 8.8% of net sales, compared to net income of $526.3%, or $526.3 million. Net income fell to $221 million, or $3.33 per diluted share, from $335 million, or $4.96 per diluted share, last year.
Performance Metrics
Environmental Solutions reported fourth quarter net sales of $428 million, up 14.1% year over year, with an operating profit of $59 million, representing 13.8% of net sales. Materials Processing recorded fourth quarter net sales of $428 million, down 2.5% year over year. Operating profit improved to $97 million, or 22.7% of net sales, compared to $47 million in the year-ago quarter.
Aerials generated fourth quarter net sales of $466 million, up 6.9% year over year. Operating profit was $10 million, or 2.1% of net sales, compared to $1 million last year. Fourth quarter bookings totaled $1.9 billion, up 32% year-over-year on a pro forma basis, reflecting a 145% book-to-bill ratio.
Important Developments
The merger of the REV group created the Special Vehicles segment from 2026. Full-year free cash flow reached $325 million, representing a 147% turnaround. Capital expenditure was $118 million by 2025. Terex returned $98 million to shareholders through stock dividends and share repurchases and ended the year with approximately $183 million remaining under stock repurchase authorizations.
Risks and Issues
Jeans are affected by tax-related costs and deliberate production adjustments in certain categories. The company pointed out that some windfall taxes could not be fully abated at this time.
Outlook / Direction
By 2026, Terex expects total sales of $7.5 billion to $8.1 billion. Projected EBITDA is $930 million to $1.0 billion, with earnings per share of $4.50 to $5.00. Free cash flow conversion is expected to be between 80% and 90%, assuming prices remain at current levels.
Performance summary
Terex reported fourth-quarter revenue growth and a year-over-year improvement in quarterly profit. Full-year revenue increased slightly, while operating profit and revenue decreased compared to 2024. Bookings firmed up through 2026, and management issued guidance reflecting the consolidation of REV’s operations and expected EBITDA growth.
