Terex is in the middle of a structural shift, with portfolio changes and the REV merger reshaping its earnings profile, and that transition carries both opportunity and execution risk. A significant portion of 2026 margin expansion is expected to come from capturing targeted cost synergies following the REV merger, with an anticipated $75 million run rate synergy within two years.
Cyborg Score Rationale
Fourth quarter bookings jumped 32% year over year to $1.9 billion, a meaningful signal of demand strength heading into 2026. Management now expects $7.5 billion to $8.1 billion in 2026 sales and up to $1 billion in EBITDA. Strong backlog and synergy potential offset execution risks from the REV integration and market headwinds.
Top Insights
2025 free cash flow of $325 million represented 147% conversion, signaling strong operational cash generation capability.
Environmental solutions is set to benefit from utility demand and ongoing productivity efforts, while specialty vehicles are set to leverage a substantial backlog and operational improvements.
Tariff headwinds persist in the aerials segment despite improved margins in environmental solutions and materials processing.
Terex has executed a strategic pivot to less cyclical, replacement-driven markets driven by strong backlog.
Named Competitors
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