Terex Q1 Sales Up 11%, Maintains $7.5–8.1B Guidance and Targets $75M Synergies
Terex reported 11% pro forma sales growth in Q1 2026, driven by a 20% surge in newly integrated Specialty Vehicles and strong Utilities performance on U.S. grid expansion. Management reaffirmed full-year 2026 guidance of $7.5–8.1 billion in sales and ~12% EBITDA growth while targeting $75 million in REV merger synergies.
1. Q1 Performance Highlights
Terex delivered 11% pro forma sales growth in Q1 2026, led by a 20% surge in the newly integrated Specialty Vehicles segment and strong Utilities revenue from U.S. grid expansion. EBITA margins were pressured by 50 basis points of new tariffs, while free cash flow recorded a seasonal outflow of $57 million.
2. Synergy Targets and Guidance
Management reaffirmed full-year 2026 guidance of $7.5–8.1 billion in sales and approximately 12% EBITDA growth. REV integration is ahead of schedule, targeting $28 million in overhead synergies for 2026 and a $75 million synergy run rate within 24 months, with portfolio exposure shifted to 80% North America.
3. Segment Outlook and Innovation
The ‘3rd Eye’ AI solution is expanding from waste collection to fire and utility vehicles. The Aerials segment is expected to bottom in Q1 and recover cyclically through Q3, Environmental Solutions demand is skewed toward H2 2026 ahead of 2027 EPA changes, and Specialty Vehicles maintains high single-digit growth with a multi-year backlog.