Terex Reports Q1 Net Loss Driven by REV Acquisition Accounting, Despite Sales Growth

summarizeSummary

Terex Corporation reported a net loss in Q1 2026, primarily due to significant purchase price accounting adjustments from the recent REV Group acquisition, while overall sales increased and adjusted profitability improved.

check_boxKey Events

• Significant Net Loss Reported

  Terex reported a net loss of $89 million, or $(0.93) per diluted share, for Q1 2026, a significant decline from a net income of $21 million, or $0.31 per diluted share, in Q1 2025. This was primarily due to acquisition-related accounting impacts.

• Sales Growth Driven by Acquisition

  Net sales increased by 41.1% to $1,734 million in Q1 2026, up from $1,229 million in Q1 2025. This growth includes $436 million from the newly acquired Specialty Vehicles (SV) segment (REV Group acquisition).

• Adjusted Profitability Shows Growth

  Despite GAAP losses, Adjusted Operating Profit increased by 35.1% to $150 million, and Adjusted EBITDA grew by 35.2% to $173 million, largely benefiting from the REV Group acquisition's contribution of $62 million to Adjusted EBITDA.

• Acquisition Accounting Impacts Gross Profit

  Gross profit decreased by 16.6% to $206 million, primarily due to a $112 million inventory step-up and related amortization from the REV Group acquisition, along with tariffs and unfavorable mix.

auto_awesomeAnalysis

Terex's first-quarter results reflect the immediate financial impact of the transformational REV Group acquisition, which closed in February 2026. While the company reported a GAAP net loss and operating loss, these were largely driven by non-cash purchase price accounting adjustments, including a $112 million inventory step-up and increased amortization of intangibles. On an adjusted basis, both operating profit and EBITDA showed strong growth, benefiting from the acquired Specialty Vehicles segment. The substantial increase in backlog to $7.1 billion, partly due to the acquisition and strong bookings in other segments, indicates robust future demand. Investors should monitor the integration of REV Group and the realization of anticipated synergies, as well as the company's ability to translate strong backlog into improved GAAP profitability in future quarters.