Lifting and material handling equipment company Terex (NYSE:TEX) announced better-than-expected revenue in Q3 2026, with sales up 58.4% year on year to $2.20 billion. On the other hand, the company’s full-year revenue guidance of $8.1 billion at the midpoint came in 0.6% below analysts’ estimates. Its non-GAAP profit of $1.50 per share was 5.4% above analysts’ consensus estimates.
Is now the time to buy TEX? Find out in our full research report (it’s free for active Edge members).
Terex (TEX) Q3 2026 highlights:
- Revenue $2.20 billion vs S&P analysts’ estimates of $2.17 billion (58.4% year-on-year growth, 1.1% beat)
- Adjusted EPS $1.50 vs S&P analysts’ estimates of $1.42 (5.4% beat)
- Adjusted EBITDA $286 million vs analyst estimates of $287.7 million (13% margin, 0.6% miss)
- Revenue guidance The company slightly lifted its revenue guidance for the full year to $8.1 billion at the midpoint from $8.05 billion
- Adjusted EPS guidance Management reiterated its full-year adjusted EPS guidance of $4.90 at the midpoint
- EBITDA guidance $945 million at the midpoint for the full year, below analyst estimates of $996.2 million
- Operating margin 8.3%, down from 10.1% in the same quarter last year
- Market capitalization $6.1 billion
StockStory’s take
Terex’s third quarter was met with a positive market response, as the company delivered revenue and adjusted earnings per share ahead of Wall Street’s expectations. Management attributed the outperformance to robust demand across materials processing, specialty vehicles, and aerial segments, with notable improvements in order activity and backlog. CEO Simon Meester emphasized that operational execution, order strength, and a growing synergy pipeline were key contributors to the quarter’s results, noting, “Order activity improved significantly during the quarter with pro forma orders up 53% year-over-year.”
Looking ahead, Terex’s outlook is shaped by ongoing integration efforts, targeted operational improvements, and the continued expansion of production capacity in utilities and specialty vehicles. Management pointed to near-term margin pressures from inflation, freight costs, and ramp-up inefficiencies, but believes these are transitory. CFO Jennifer Kong-Picarello stated, “We are taking proactive actions either from cost mitigation or from a price flow-down to customers as a surcharge,” highlighting the company’s efforts to manage inflation and maintain profitability as it advances its strategic priorities.
Key insights from management’s remarks
Management cited strong demand trends, segment-specific execution, and progress on portfolio reshaping as drivers behind Terex’s Q3 performance and updated guidance.
- Order momentum and backlog growth: Terex experienced a significant boost in order activity, with pro forma orders up 53% year-over-year and backlog reaching $7 billion, providing improved forward visibility and supporting a positive outlook across all four segments.
- Materials processing strength: The materials processing segment benefited from robust demand in mobile crushers and screeners, particularly in the U.S. for infrastructure and construction projects. This segment achieved margin expansion due to higher shipment volumes, favorable mix, and improved production efficiency.
- Specialty vehicles capacity expansion: Specialty vehicles recorded increased sales and margin improvement, driven by strong demand in fire apparatus and recreational vehicles. To address lengthy lead times, Terex is expanding production capacity at key facilities, with the first units from the new Brendon location expected to ship in the fourth quarter.
- Aerials and large project wins: The aerials segment saw sales growth supported by large infrastructure project orders, especially from national accounts. Although margins declined year-over-year due to tariffs and customer mix, sequential improvement was observed as cost reduction actions took effect.
- Portfolio simplification and divestitures: Terex continued to refine its portfolio by exiting smaller, more cyclical businesses (Capacity and Lay-Mor), focusing resources on segments with stronger market positions and higher returns. This ongoing strategy aims to reduce cyclicality and enhance long-term earnings power.
Drivers of future performance
Terex’s guidance for the next quarter and year is defined by operational execution, cost management, and the impact of ongoing integration and portfolio adjustments.
- Inflation and freight cost management: Management expects ongoing inflation and higher freight costs to remain margin headwinds in the near term. While some cost is being passed through to customers via surcharges, the timing lag and continued inflationary pressures are expected to weigh on profitability into early next year.
- Production ramp-up and operational improvements: The company is investing in expanding production capacity, particularly in utilities and specialty vehicles, to reduce lead times and fulfill strong backlog. Ramp-up inefficiencies, especially at the Waukesha facility, are expected to persist through the next quarter before normalizing in 2027, but management anticipates these investments will support future margin and earnings expansion.
- Portfolio transformation and synergy capture: Ongoing integration activities and divestitures are expected to drive additional synergies and operational efficiencies, with management targeting a more stable, higher-mix portfolio. These changes are aimed at supporting sustainable earnings growth beyond the near term, despite temporary disruptions from portfolio transitions.
Catalysts in upcoming quarters
In the coming quarters, our analysts will be closely monitoring (1) the pace at which Terex resolves production ramp-up inefficiencies in utilities and specialty vehicles, (2) the company’s ability to manage inflationary and freight-related margin pressures, and (3) further developments in portfolio simplification, including the potential separation of the aerials segment. Additional focus will be placed on order trends, backlog conversion, and the execution of operational improvements across key facilities.
Terex currently trades at $52.74, up from $51.66 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free).
Stocks that trumped tariffs
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.