Terex Corporation Q1 FY2026 earnings call

• Simon mentioned the company is off to a good start in 2026, with new specialty vehicle segment contributing meaningfully. Sales grew 11% pro forma, led by specialty vehicles. EPS increased 18% year over year. Quarter ending backlog at $7.1 billion. REV integration progressing as planned. Specialty vehicles team showcased ThirdEye digital solution. Strategic review of aerial business ongoing. - Jen noted Q1 sales growth due to merger and legacy segment growth. Q1 EBITDA margin 9.9%. Net working capital as percentage of sales improved. Segment results: EOS sales growth 3.3% driven by Terex utilities; MP sales up 18.3% pro forma, EBITDA margin 15%; specialty vehicle segment revenue $436 million in Feb-March, growth 20%; ARIS had 132% book-to-bill and $1 billion backlog.

On a reported basis, sales grew to $1.7 billion, an increase of $505 million or 41% compared with the prior year due to the merger with Rafeu and growth in legacy segments. Pro forma sales grew 10.8%, led by specialty vehicles, material processing, and Terex utilities. Excluding merger and sale impacts, organic revenue increased 8.1%. Environmental solutions sales growth 3.3% driven by Terex utilities. MP had strong first quarter with sales 18.3% higher pro forma, EBITDA margin 15%. Specialty vehicle segment generated $436 million revenue in February and March, growth 20% vs prior year, EBITDA margin 14.2%. ARIS had 132% book-to-bill, $1 billion backlog, sales $469 million up 4.2% year-over-year.

• Reiterating full-year 2026 outlook. Expect 2026 sales to grow approximately 5% pro forma to $7.5 to $8.1 billion. Pro forma EBITDA to grow by approximately $100 million or 12% year over year to between $930 million and $1 billion or 12.4% EBITDA margin at midpoint. Synergies of approximately $28 million in 2026. Interest and other expenses expected to be approximately $190 million. Effective tax rate still expected to be 21%. 2026 EPS between $4.50 and $5. Environmental solutions expected mid-single digit growth, MP high single-digit pro forma growth, specialty vehicle segment high single-digit sales growth with margin improvement, areas to have sales and margin similar to 2025 with margin improvement sequentially.

• Q: Angel Castillo asked about holding full - year guidance, whether due to macro tariff uncertainty or conservatism, and areas of uncertainty/upside.

A: Short answer is it's more about discipline and timing. Confidence in business fundamentals, but operating in uncertain macro and tariff environment, so reaffirming outlook. - Q: Kyle Menjes asked about margin changes across segments and tariff impacts.

A: MP expected margin step up in Q2 and Q3. ES expected Q2 similar to Q1, margin step up in second half. SV expected Q2 - Q3 run rate similar to Q1, Q4 marginal step down. Areas expected Q2 step up, Q3 further step up, Q4 step down but full year price - cost neutral. - Q: Mig Dobre asked about managing inflation, material costs, etc.

A: Cost inflation has lag due to hedging and vendor contracts. SV backlog covers CPI inflation. MP and ESG book - to - bill allows surcharge if cost can't be mitigated. North America revenue over 80% helps manage energy inflation. - Q: Tim Thien asked about update on Rev segment and Apptronic stake.

A: Rev segment had good start, slightly better than anticipated due to weather. Apptronic investment, co - developed zero - gravity arm with Genie, positively received. - Q: David Razo asked about specialty vehicle segment revenue run rate and growth.

A: Guiding high single digits for segment, typically two - thirds price, one - third unit growth. Investments coming online in Q4, but sequential from Q1 run rate will have step up in Q2 - Q3 and step down in Q4. - Q: Jamie Cook asked about SV margins and aerial sale impact.

A: SV margin profile improving, EBITDA margin 13.1% in Jan - March, expecting sequential step up. Aerial market inflection doesn't change sale process view, it's a through - cycle discussion. - Q: Tammy Zakaria asked about ESG back half orders and technology impact on pricing.

A: ESG second half has new technology driving momentum, pricing market - based to create value for customers while being price - cost neutral. - Q: Jerry Revich asked about capital deployment and aerial divestiture impact.

A: Immediate focus on integration and execution. M&A landscape considered, but tiebreaker is what's best for shareholders. Specialty vehicle bookings expected to slowly soften as lead times improve.