Terex (TEX) Q4 2025 earnings summary

Executive summary

• Completed merger with REV Group, creating a leading specialty equipment manufacturer with a diversified portfolio and strong U.S. manufacturing footprint, and significant scale and synergies across premium brands and end markets.

• Integration of ESG and REV progressing ahead of schedule, with synergy capture plans underway and no major organizational changes outside corporate functions.

• Focused on integration, synergy realization, and execution to bolster long-term growth outlook.

• End markets include emergency vehicles, waste & recycling, utilities, and construction, all showing mid to high single-digit growth.

• Strategic review of the Aerials business ongoing, with strong inbound interest and a deliberate approach to maximize shareholder value.

Financial highlights

• FY 2025 net sales reached $5.4 billion, up 6% year-over-year, with Q4 net sales of $1.3 billion up 6% year-over-year.

• Full-year adjusted EBITDA was $635 million (11.7% margin), with Q4 EBITDA at $141 million (10.6% margin), both improving year-over-year.

• Adjusted EPS for FY 2025 was $4.93, in line with guidance; Q4 EPS was $1.12, up $0.35 from last year.

• Free cash flow for FY 2025 was $325 million, with a conversion rate of 147%.

• Q4 effective tax rate was 8.1% due to favorable one-time items; full-year adjusted tax rate 17.2%.

Outlook and guidance

• 2026 net sales expected between $7.5 billion and $8.1 billion, with adjusted EBITDA of $930 million–$1 billion (12.4% margin at midpoint).

• Adjusted EPS guidance for 2026 is $4.50–$5.00, reflecting a modest 3% dilution from the merger.

• Free cash flow conversion expected at 80–90% of net income; net leverage to improve over the year.

• $28 million of synergies expected in 2026, progressing toward $75 million run-rate by 2028.

• Legacy sales projected to increase 4% vs. 2025, excluding divestitures.