Terex began 2026 with better-than-expected revenue growth, driven by broad-based strength across all segments and the initial contribution from its new Specialty Vehicle business. Management credited the successful integration of the REV acquisition and robust market demand in Utilities and Materials Processing for the quarter’s execution. CEO Simon Meester noted, “Quarter ending backlog increased to $7.1 billion, which includes strong bookings trends, particularly in Materials Processing, Aerials and Terex Utilities, providing good forward visibility and consistent with our expectations for the year.” Despite this, management cited caution due to macroeconomic and tariff uncertainties.
Is now the time to buy TEX? Find out in our full research report (it’s free for active Edge members).
Terex (TEX) Q1 CY2026 Highlights:
- Revenue: $1.73 billion vs analyst estimates of $1.69 billion (41.1% year-on-year growth, 2.6% beat)
- EPS (GAAP): -$0.93 vs analyst estimates of $0.73 (significant miss)
- Adjusted EBITDA: $173 million vs analyst estimates of $172.8 million (10% margin, in line)
- The company reconfirmed its revenue guidance for the full year of $7.8 billion at the midpoint
- EPS (GAAP) guidance for the full year is $4.75 at the midpoint, beating analyst estimates by 4.2%
- EBITDA guidance for the full year is $965 million at the midpoint, below analyst estimates of $983.4 million
- Operating Margin: -4.7%, down from 5.6% in the same quarter last year
- Market Capitalization: $7.17 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Terex’s Q1 Earnings Call
-
Angel Castillo (Morgan Stanley) pressed on the decision to maintain full-year guidance despite strong Q1 bookings and margins. CEO Simon Meester responded that it was “most prudent” to reaffirm guidance due to lingering macro and tariff uncertainties, emphasizing discipline and the early stage of the year.
-
Kyle Menges (Citigroup) asked about segment margin expectations and the impact of tariffs. CFO Jennifer Kong-Picarello explained that tariff effects are expected to be minimal, with margin improvement anticipated from favorable product mix and pricing actions, especially in Aerials and Environmental Solutions.
-
Mircea Dobre (Baird) questioned management about managing inflation and cost pressures. Kong-Picarello highlighted the company’s hedging strategies, value-added pricing, and pass-through mechanisms in Specialty Vehicles, as well as the ability to implement surcharges in Materials Processing and Environmental Solutions.
-
Timothy Thein (Raymond James) inquired about the progress and outlook for the REV integration and potential synergies. Meester reported that integration is on track with multiple work streams ahead of schedule and strong early operational and sourcing synergies being realized.
-
Jerry Revich (Wells Fargo Securities) sought clarification on future capital deployment following a potential Aerials divestiture. Meester stated that the current focus remains on integration and execution, with optionality for future capital allocation decisions to be guided by shareholder value.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will watch (1) whether integration synergies from the REV acquisition continue to materialize as planned, (2) if capacity expansions in Utilities and Specialty Vehicles effectively reduce lead times and convert backlog to revenue, and (3) the outcome of the Aerials segment strategic review. Progress in digital product adoption and aftermarket sales will also be key signposts for execution.
Terex currently trades at $62.60, in line with $62.20 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
The Best Stocks for High-Quality Investors
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
