Terex (TEX) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales rose 14–14.4% year-over-year to $1.4B, driven by the ESG acquisition and strong Environmental Solutions performance, offsetting declines in Aerials and Materials Processing.

• Adjusted EPS was $1.50, with free cash flow at $130M and a 200% conversion rate.

• Bookings grew 57% year-over-year, with a robust backlog and normalized seasonal patterns supporting the Q4 outlook.

• North America accounted for 72% of global sales in Q3 2025.

• The company completed the ESG acquisition and announced a merger agreement with REV Group.

Financial highlights

• Adjusted operating margin was 12.1% and adjusted EBITDA margin was 13.4% for Q3 2025.

• Adjusted net income for Q3 2025 was $100M, with adjusted EPS of $1.50.

• Free cash flow for Q3 2025 was $130M, with liquidity at $1.3B as of September 30, 2025.

• Gross profit for Q3 2025 was $282M (20.3% of sales), and adjusted gross margin was 22.0%.

• ROIC as of September 30, 2025, was 11.9%.

Outlook and guidance

• FY 2025 EPS outlook maintained at $4.70–$5.10, with net sales expected between $5.3B and $5.5B.

• Adjusted segment operating margin projected at ~12%, adjusted EBITDA at $640M, and free cash flow at $300–$350M for FY 2025.

• Tariffs expected to have a net unfavorable impact of $0.70 per share for the full year.

• Outlook assumes tariffs remain at current rates and legacy sales expected to decline 8–12% versus 2024.