Business Overview
Terex Corporation (NYSE: TEX) reported fourth-quarter and full-year 2025 results following the completion of its merger with REV Group. The company operates across Environmental Solutions, Materials Processing, and Aerials, serving utilities, waste and recycling, infrastructure, and construction markets. For the year ended December 31, 2025, consolidated net sales totaled $5.421 billion compared with $5.127 billion in 2024.
Financial Performance
Fourth-quarter 2025 net sales were $1.318 billion, up 6.2% from $1.241 billion in the prior-year quarter. Operating profit increased to $137 million from $53 million year over year. Net income was $63 million, or $0.95 per diluted share, compared with a net loss of $2 million, or $(0.03) per diluted share, in the fourth quarter of 2024. For full-year 2025, operating profit was $475 million, or 8.8% of net sales, compared with $526 million, or 10.3% of net sales, in 2024. Net income declined to $221 million, or $3.33 per diluted share, from $335 million, or $4.96 per diluted share, in the prior year.
Operating Metrics
Environmental Solutions reported fourth-quarter net sales of $428 million, up 14.1% year over year, with operating profit of $59 million, representing 13.8% of net sales. Materials Processing recorded fourth-quarter net sales of $428 million, down 2.5% year over year. Operating profit improved to $97 million, or 22.7% of net sales, compared with $47 million in the prior-year quarter.
Aerials generated fourth-quarter net sales of $466 million, up 6.9% year over year. Operating profit was $10 million, or 2.1% of net sales, compared with $1 million a year earlier. Fourth-quarter bookings totaled $1.9 billion, up 32% year over year on a pro forma basis, reflecting a book-to-bill ratio of 145%.
Key Developments
The REV Group merger created a Specialty Vehicles segment beginning in 2026 reporting. Full-year free cash flow reached $325 million, representing 147% conversion. Capital expenditures were $118 million during 2025. Terex returned $98 million to shareholders through dividends and share repurchases and ended the year with approximately $183 million remaining under share repurchase authorization.
Risks and Constraints
Margins were affected by tariff-related costs and deliberate production adjustments in certain segments. The company indicated some tariff headwinds could not be fully mitigated during the period.
Outlook / Guidance
For 2026, Terex expects net sales of $7.5 billion to $8.1 billion. Projected EBITDA is $930 million to $1.0 billion, with earnings per share of $4.50 to $5.00. Free cash flow conversion is expected between 80% and 90%, assuming tariffs remain at current levels.
Performance Summary
Terex reported fourth-quarter revenue growth and improved quarterly profitability year over year. Full-year revenue increased modestly, while operating profit and net income declined compared with 2024. Bookings strengthened entering 2026, and management issued guidance reflecting the integration of REV operations and expected EBITDA growth.