Terex reports higher Q4 sales, strong bookings to close 2025

During its latest earnings update, Norwalk, Connecticut-based Terex Corp. reports higher fourth-quarter sales and improved profitability, supported by growth in its environmental solutions segment and a surge in bookings across the business.

“We concluded a transformational year for Terex, with the successful integration of ESG and the initiation of the merger with Rev, coupled with solid execution by our legacy businesses in a very dynamic environment,” Terex President and CEO Simon Meester says. “The team navigated multiple macro and market headwinds to deliver financial results in line with our original 2025 guidance, while transforming our portfolio for the long-term.”

Fourth-quarter net sales reached $1.3 billion, up 6.2 percent year over year, while operating profit totaled $137 million, or 10.4 percent of net sales. Adjusted operating margin also improved compared with the year prior, increasing from $97 million (7.8 percent of net sales) in 2024 to $123 million (9.3 percent of net sales) in 2025.

Bookings rose 32 percent year over year to $1.9 billion, contributing to a book-to-bill ratio of 145 percent.

Environmental solutions, which include refuse collection vehicles and utility equipment, were a key driver of growth. Fourth-quarter net sales in the segment increased 14.1 percent on a pro forma basis to $428 million, while adjusted operating margins expanded to 18.5 percent. For the full year, environmental solutions sales totaled approximately $1.7 billion, up 12.7 percent compared with 2024.

Companywide, Terex reported full-year net sales of $5.4 billion, a 5.7 increase from the year prior. Operating profit was $475 million, or 8.8 percent of net sales, while adjusted operating margin reached 10.4 percent.

“I am very pleased that we delivered on all our key 2025 financial expectations, including $325 million of free cash flow reflecting 147 percent cash conversion,” says Jennifer Kong-Picarello, senior vice president and chief financial officer of Terex. “By completing the Rev merger, we enter 2026 with even more opportunities to create value for our shareholders.”  

RELATED: Terex, Rev Group complete merger

In the year ahead, the company projects 2026 net sales between $7.5 billion and $8.1 billion and earnings before interest, taxes, depreciation, and amortization of $930 million to $1 billion, citing strong fourth-quarter bookings, backlog levels and anticipated synergies tied to its expanded specialty vehicle portfolio.

“I am very proud of our team adapting quickly to changes in trade policy and market dynamics throughout the year while continuing to innovate, improve operations and deliver exciting new products to our customers,” Meester says. “We head into 2026 with considerable momentum from strong Q4 bookings and backlog levels. We will focus on execution, successfully integrating Rev and delivering on our synergy targets.”