Oct 28, 2026 earnings call — Updated full-year outlook and aerials separation
Terex now expects sales of $8 billion to $8.2 billion and adjusted pro forma EBITDA of $930 million to $960 million.
Revenue $2.2B (est $2.2B) · EPS $1.50 (est $1.43)
Key quotes
"We now expect sales in the range of $8 billion to $8.2 billion and adjusted pro forma EBITDA of $930 million to $960 million reflecting typical fourth quarter seasonality."
"Since our last update, we have made good progress advanced the carve out work and moved from evaluating inbound interest to active engagement with multiple strategic counterparties."
"The launch of our centralized procurement organization was an important next step. By coordinating sourcing across the enterprise, we can better leverage our scale, simplify the supply base, and reduce product complexity."
Analyst Q&A 9
Q4 margins by segment
Q (Angel Castillo Malpica · Morgan Stanley): Analyst asked for a bridge of margin expectations by segment for Q4, what parts persist into 2027, and what exit rate to underwrite for 2027.
A: Management said Q3-to-Q4 seasonal shipment patterns drive step-downs in some segments, while MP and ES expect higher Q4 revenue but MP faces unfavorable mix. Freight inflation is a timing issue with a 3-to-9 month lag for price pass-through, and ramp-up inefficiencies in the Waukesha facility will continue into Q4 and ease in 2027. They added all four segments are positioned for margin expansion into 2027, though MP and SV had a few one-timers in Q3.
"I would just add if you just look at--if you look at Q3, you know, I think all 4 segments are really well positioned for continued margin expansion going forward in 2027." — Simon A. Meester (CEO)
Source of EBITDA cut and cash/working capital
Q (Mircea Dobre · Baird): Analyst asked which segments drove the $30–$40 million EBITDA cut concentrated in Q4, and also why free cash flow guide rose while EBITDA was trimmed and what the natural working capital level should be for 2027–2028.
A: Management said Q3 performance was largely in line, and the EBITDA revision is mainly explained by three items: change in segment mix, higher freight, and ramp-up inefficiencies. They said free cash flow was strong in Q3, enabling opportunistic buybacks, and they expect to continue lowering working capital, optimize CapEx, and return value to shareholders while keeping a staged capital-allocation approach into 2027 and 2028.
"What you mentioned here in terms of the revised guide on the EBITDA that is largely, I would call it, 50% of that is driven by the change in the mix of our segment." — Jennifer Kong-Picarello (CFO)
Fire trucks and 2027 pricing
Q (Jamie Cook · Truist): Analyst asked about the specialty vehicles (fire) market, market share and growth prospects for 2027, and whether pricing will improve to offset cost inflation next year.
A: Management said bookings and backlog in specialty vehicles are strong but lead times are high, so they are expanding capacity in Brandon and Ocala to shorten lead times; they view a sustainable lead time as about 12 months versus the current 24. On pricing, they are preparing for inflation to remain roughly flat year-over-year into 2027 and aim to be price-cost neutral, using internal mitigation and disciplined price actions as needed.
"it is still very much just a matter of us trying to get our lead times down from 24 months to 12" — Simon A. Meester (CEO)
Aerials (Genie) sale and buyback plan
Q (David Raso · Evercore): Analyst asked how much carve-out work remains for Aerials (Genie), whether sale holdups are about structure or price, and what the $611 million repurchase authorization signals about use of sale proceeds.
A: Management said carve-out work has progressed well given the segment's long history inside the company, but they would not comment on counterparties or deal discussions. They said much of the legal-entity untangling was done over the last nine months, the $500 million repurchase authorization is part of normal business, they deployed $72 million in Q3, and opportunistic buybacks will continue with or without the aerials sale.
"The 500 million of share repurchase authorization there is just on our normal cost of business." — Jennifer Kong-Picarello (CFO)
Other divestitures and size of sold businesses
Q (Michael Shlisky · D.A. Davidson): Analyst asked if other divestitures are possible before the aerials sale, and how large Capacity and Lay-Mor are so models can be adjusted for 2027.
A: Management said they continuously assess the portfolio and remain focused on SV integration and the aerials process, with Capacity and Lay-Mor a relatively small recent transaction. They said Capacity and Lay-Mor annualize to about $125 million to $150 million of revenue through cycles and have mid- to high-single-digit EBITDA; they have already received cash and will use disciplined capital allocation for deployment.
"Overall, you know, in an annualized basis through cycles anywhere between $125 million to $150 million of top line revenue" — Jennifer Kong-Picarello (CFO)
Fire market detail and aerials carve-out timing
Q (Kyle Menges · Citi): Analyst asked for more color on the fire and emergency fleet demand, and how much carve-out work remains for the aerials sale and whether it can wrap by year-end.
A: Management said bookings for fire and emergency continue strong, driven by municipalities replacing aged units, and they are adding targeted capacity to reduce backlog and lead times while avoiding idle capacity. On aerials, they said a lot of the carve-out work is behind them but they would not commit to any timing or deadlines, prioritizing a disciplined process focused on value and certainty.
"A lot of that carve out work is behind us, but I do not wanna start getting into any kind of timing or deadline commitments" — Simon A. Meester (CEO)
MP margin upside and ESG margins
Q (Jerry Revich · Wells Fargo): Analyst asked whether MP margin upside targets change after outperformance and whether ESG/utilities can return to ~19% margins or if transition issues will linger into next year.
A: Management said the legacy Rev team beat their 2027 EBITDA commitments a year early and reached the high end of their target, though Q3 had a few one-offs you should not anchor to. They noted a $4.4 billion backlog that should drive productivity and lower hours per truck, and said ESG and utilities faced ramp inefficiencies but bookings are picking up and both are well positioned for 2027.
"We do expect you know, knowing there is a $4.4 billion backlog, to continue to drive productivity, to continue to drive down hours per truck." — Simon A. Meester (CEO)
Timing of utilities ramp and engine penalties
Q (Stephen Volkmann · Jefferies): Analyst asked when the utilities ramp headwinds will end and whether engine noncompliance penalties will add revenue with no margin.
A: Management said ramp-up inefficiencies at the Waukesha facility will continue into Q4 and are expected to normalize as they exit Q4 into 2027, noting conversion of a service facility to in-stock created headwinds. They also said engine noncompliance matters are mostly passed through because customers buy the chassis, so the impact is largely a timing issue rather than a direct margin hit for the company.
"based on our revised guidance, we expect that the ramp up inefficiencies in Waukesha facility to continue into Q4 And then when we exit into out of Q4 into 2027, we expect that to normalize." — Jennifer Kong-Picarello (CFO)
Engine penalties pass-through and freight impact
Q (Tami Zakaria · JPMorgan): Analyst asked whether backlog will be repriced for engine penalty costs or if customers buy chassis, and which segments need bigger price increases for freight.
A: Management confirmed customers buy the chassis so engine noncompliance penalties bypass the company. They said freight impacts all segments, they pass through a portion of outbound freight to customers with timing lags, and they are working on sourcing and digitization to reduce inbound freight costs across the board.
"We actually pass through a portion of the outbound freight to our customers." — Jennifer Kong-Picarello (CFO)