Terex Corporation Reports $89 Million Net Loss Despite 41.1% Revenue Growth in Latest Quarter

Terex Corporation reported significant financial changes in its latest quarterly filing, revealing a net loss of $89 million for the three months ended March 31, 2026, compared to a net income of $21 million during the same period in 2025. The company's net sales surged to $1.734 billion, marking a 41.1% increase from $1.229 billion in the prior year. This growth was largely attributed to the inclusion of $436 million in sales from the newly acquired Specialty Vehicles (SV) segment, following the completion of the REV Group, Inc. acquisition on February 2, 2026. Excluding the impact of the SV segment and prior year sales from divested businesses, net sales increased by 8.1%, driven by higher shipment volumes across various product lines.

The company's gross profit for the quarter decreased to $206 million from $247 million year-over-year, primarily due to inventory step-up costs and unfavorable product mix. Selling, general, and administrative expenses rose significantly to $241 million from $161 million, largely due to transaction costs associated with the REV acquisition and increased amortization of purchased intangibles. As a result, Terex reported an operating loss of $82 million, a stark contrast to the operating profit of $69 million recorded in the same quarter of 2025.

In terms of operational metrics, Terex's backlog as of March 31, 2026, reached $7.1 billion, bolstered by the REV acquisition and strong bookings in the Materials Processing and Aerials segments. The company maintained a robust liquidity position with approximately $1.022 billion available, despite a decrease in cash and cash equivalents to $392 million from $772 million at the end of 2025. The increase in working capital efficiency was noted, with working capital as a percentage of trailing three-month annualized pro forma net sales improving to 16.7%.

Looking ahead, Terex's management expressed optimism regarding the company's strategic direction, emphasizing the potential for growth in resilient markets such as waste and recycling, utilities, and construction. The company anticipates stable demand for fire and emergency vehicles, supported by increasing municipal budgets. However, it also noted potential challenges, including a modest reduction in capital expenditure from certain customers in the waste and recycling sector as they adjust to recent vehicle deliveries. Overall, Terex aims to leverage its diversified portfolio and operational efficiencies to navigate the evolving market landscape.