Terex Reports Strong Q4, Full-Year 2025 Results, and Positive 2026 Outlook Post-REV Acquisition
Summary
Terex Corporation announced strong fourth-quarter and full-year 2025 financial results, alongside a positive 2026 outlook for the newly combined entity following the acquisition of REV Group, highlighting significant sales and EBITDA growth.
Key Events
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Strong Q4 2025 Performance
Net sales increased 6.2% year-over-year to $1.3 billion, with bookings up 32% to $1.9 billion, reflecting a book-to-bill of 145%.
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Full-Year 2025 Highlights
Achieved $5.4 billion in sales and $325 million in free cash flow, exceeding prior year's free cash flow.
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Positive 2026 Outlook for Combined Entity
Forecasts sales of $7.5 billion to $8.1 billion and EBITDA of $930 million to $1 billion for the combined entity, representing a 12% pro forma EBITDA growth.
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Post-Acquisition Synergies
Expects $28 million in realized synergies for 2026, on track for a $75 million annual run-rate within two years from the REV Group merger.
Analysis
This 8-K provides critical financial updates following the recent finalization of the REV Group acquisition on February 2, 2026. The strong Q4 performance, particularly the 32% increase in bookings, indicates robust demand. While full-year 2025 adjusted EPS saw a decline, the company delivered on its original guidance and significantly improved free cash flow. The 2026 outlook is highly material, offering the first comprehensive financial projections for the combined Terex and REV Group entity. The forecast for substantial sales and EBITDA growth, coupled with clear synergy targets, provides investors with a clearer picture of the strategic benefits and future trajectory of the expanded business, despite some initial dilution impacting EPS. This report underscores the company's strategic transformation and operational momentum.
At the time of this filing, TEX was trading at $59.30 on NYSE in the Technology sector, with a market capitalization of approximately $6.8B. The 52-week trading range was $31.53 to $66.18. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.