Terex Corporation Reports $5.4 Billion in Net Sales for Fiscal Year 2025

Terex Corporation reported a financial performance for the fiscal year ending December 31, 2025, with net sales reaching $5.4 billion, a 5.7% increase from $5.1 billion in 2024. The growth was primarily driven by the acquisition of Environmental Solutions Group (ESG), which contributed significantly to revenue, offsetting declines in the Aerials and Materials Processing (MP) segments. Operating profit for the year was $475 million, down from $526 million in the previous year, reflecting challenges in certain product lines and increased costs associated with tariffs.

The company experienced notable changes across its segments. The Environmental Solutions segment saw a 12.7% increase in sales to $1.7 billion, bolstered by strong demand for refuse collection vehicles and utility trucks, resulting in an operating margin of 13.8%. In contrast, the MP segment's sales fell by 11.6% to $1.7 billion due to macroeconomic uncertainties and reduced demand, while the Aerials segment reported a 14.5% decline in sales to $2.1 billion, attributed to lower demand from independent rental customers. The overall backlog increased to $2.35 billion, up from $2.29 billion in 2024, driven by higher order activity in Aerials and MP.

Strategically, Terex completed the acquisition of ESG, which is expected to enhance its market position and operational efficiency. The company also executed a divestiture of its tower and rough terrain cranes businesses, aiming to streamline operations and focus on core segments. The integration of ESG is ahead of schedule, with anticipated synergies of $25 million. Terex's capital allocation strategy remains focused on reducing working capital and returning value to shareholders, with $98 million returned through share repurchases and dividends in 2025.

Operationally, Terex employed approximately 10,700 team members as of December 31, 2025, with a focus on maintaining a safe work environment, achieving a lost time injury rate of 0.39. The company continues to invest in research and development, particularly in alternative power solutions, to meet growing customer demand for environmentally friendly products. The outlook for 2026 includes projected sales between $7.5 billion and $8.1 billion, with EBITDA expected to range from $930 million to $1 billion, reflecting the anticipated contributions from the REV acquisition completed on February 2, 2026.

Looking ahead, Terex anticipates continued growth in its key markets, particularly in waste and recycling, utilities, and infrastructure, driven by government spending and replacement demand. However, the company acknowledges the potential impact of macroeconomic variables and geopolitical uncertainties on its performance. The management remains committed to executing its "Execute, Innovate, Grow" strategy to enhance operational efficiency and drive long-term growth.