Terex Corporation (TEX) Business Profile

What it does

Terex Corporation designs, builds and supports industrial equipment used to collect waste, process materials, work at height and maintain utility networks. Founded in 1925 and headquartered in Westport, it is led by President and Chief Executive Officer Simon Meester. The company had approximately 10,700 employees at the end of 2025.

Its Environmental Solutions business makes refuse collection bodies, recycling equipment and trucks used to maintain electric power lines. Materials Processing makes machines such as crushers and screens that prepare rock, recycled material and other inputs for use. Its Aerials business sells Genie lifts and telehandlers, which raise workers or move materials on construction sites and at other facilities.

Terex also owns a specialty vehicles business following its merger with REV in February 2026. That business supplies vehicles including fire apparatus, ambulances and recreational vehicles. Its customers include municipalities, government agencies, contractors and commercial users.

Beyond the initial equipment sale, Terex provides replacement parts, repairs, maintenance and other services. It also offers digital tools, including software for waste fleets and camera systems for vehicles. Its financing operation helps customers arrange equipment loans, leases and rentals through financial institutions.

How it makes money

Terex earns revenue by selling equipment and related components, as well as replacement parts and services over the life of a machine. In 2025, net sales were $5.4 billion; in the third quarter of 2026, sales were $2.2 billion. The quarter included specialty vehicles following the REV merger, while the 2025 total did not include REV.

Environmental Solutions sells refuse collection and recycling equipment alongside utility products such as digger derricks and insulated aerial devices. It also offers waste-hauler software, vehicle cameras, inspections, repairs, refurbishment and spare parts. Materials Processing sells crushers, screens, washing systems, conveyors, concrete equipment and other machines used to handle or process materials.

Aerials sells work platforms and telehandlers, principally under the Genie name. Its customers can also buy inspections, maintenance, modernization, training and parts. Specialty vehicles adds sales of fire and emergency vehicles and recreational vehicles, among other products. Terex reported specialty vehicles as a segment in its third-quarter 2026 results.

Equipment sales are supported by distributors, rental companies and direct sales, depending on the product. Parts and service create opportunities for sales after delivery, although parts orders are generally filled as ordered rather than included in equipment backlog. Terex Financial Services facilitates loans and leases between customers and third-party financial institutions and provides recourse in certain circumstances.

Terex competes on price, performance and reliability. It aims to offer products that help customers earn a return over their equipment’s working life, rather than relying on purchase price alone.

Customers and how it sells

Terex sells to waste and recycling operators, electric utilities, contractors, equipment rental companies and distributors. Materials Processing customers use its machines in quarrying, mining, construction, infrastructure and recycling. Aerial equipment is used to build and maintain facilities and on infrastructure projects; rental companies are a principal route to market for those machines.

The specialty vehicles business serves municipalities, government agencies, private contractors, consumers and industrial and commercial users, primarily in the United States. Its vehicles support public services, commercial infrastructure and leisure activities.

Terex distributes Environmental Solutions and Materials Processing products through independent distributors, direct sales and rental companies. Aerial work platforms and telehandlers are distributed principally through a global network of rental companies and independent distributors. A material portion of Aerials and Environmental Solutions sales goes to national rental companies.

North America represented approximately 72% of global sales in 2025. Terex manufactures in North America, Europe and Asia Pacific and sells worldwide. No individual customer accounted for more than 10% of consolidated net sales in 2025; the largest accounted for less than 6%, and the top ten together accounted for less than 28%. Those figures predate the inclusion of REV’s results.

Suppliers and costs

Terex operates manufacturing sites across North America, Europe and Asia Pacific, with different plants making equipment for each business. It also maintains parts distribution centers and service networks. Production requires materials, components and inventories, while facilities require spending for maintenance and upgrades. The company describes its businesses as working-capital intensive.

Engineering teams work on new products, regulatory compliance and cost improvements, including standardizing products and components. Terex has also established a centralized procurement organization to coordinate sourcing across its businesses. The company expects this approach to simplify its supplier base and reduce product complexity.

Tariffs, inflation and freight costs affect operations. Terex seeks to mitigate costs and pass some increases to customers through pricing or surcharges, although it expects timing differences between incurring costs and passing them through. Its suppliers generally extend payment terms based on Terex’s credit rating; a deterioration could affect those terms and accelerate cash needs.

Utility production expansion has also brought costs. Terex reported that inefficiencies during the Waukesha production ramp affected Environmental Solutions profitability. It expects those inefficiencies to continue into the fourth quarter of 2026 and normalize as it moves into 2027.

Competitive position

Terex competes with equipment manufacturers on price, performance and reliability, and does not have one competitor across all its businesses. For refuse collection bodies, it identifies Federal Signal and Oshkosh among its competitors. In Materials Processing, competitors include Metso and Sandvik in crushing and screening, and Caterpillar and Liebherr in material handlers. In Aerials, Oshkosh, Dingli and Haulotte compete in lifts, while JCB and Manitou compete in telehandlers.

Terex uses brand names including Genie, Powerscreen, Fuchs and Heil. It also supports machines through parts distribution, service branches and field operations, and develops products through engineering teams at manufacturing locations and other centers. Its patents and related technology are important to particular products, although Terex says its patents collectively are not material to its overall business or financial results.

Our reading: Established brands and the ability to support equipment after sale provide some differentiation, particularly where customers value reliability and service over a machine’s life. Our reading: The protection is limited by competition across individual product categories and by Terex’s own assessment that its patents collectively are not material to overall results.

Terex also offers software and camera systems for waste fleets, alongside physical equipment. Our reading: Those products can add to its customer offering, but the available evidence does not establish how much they prevent customers from switching suppliers.

Growth opportunities

Terex pursues growth through new products, geographic and category development, and acquisitions. It has incorporated electric and hybrid power options across product lines and continues to develop alternatives for customers facing emissions and job-site requirements. Recent products include a Heil automated side loader for residential refuse collection and Finlay’s Electro range of hybrid crushing equipment.

The REV merger added specialty vehicles to the portfolio in February 2026. Terex also exited the Capacity and Lay-Mor businesses and is working on a potential separation of Aerials. It has advanced the carve-out work and entered active discussions with multiple strategic counterparties, without setting a specific timeline.

Terex is expanding utility production, including building utility trucks at Fort Payne, where it can adjust production between utility and refuse demand. It is also expanding specialty vehicles capacity to address categories with longer lead times. The company sees municipal replacement demand for fire and emergency fleets and demand for materials processing equipment associated with infrastructure, data center and construction projects.

For 2026, Terex expects sales of $8 billion to $8.2 billion and adjusted pro forma EBITDA of $930 million to $960 million. Its outlook incorporates the current portfolio, expected production ramp costs, tariffs and inflation. It excludes costs to achieve synergies, purchase accounting adjustments and other non-recurring items.

Structural risks

• Integration: Terex may not successfully integrate acquired businesses or realize expected benefits. The REV transaction could stretch resources and divert management attention, while integration can bring unforeseen operational, systems and personnel difficulties.
• Cyclical demand: Equipment purchases depend on economic conditions, interest rates, construction spending, customer capital budgets and replacement cycles. Customers may delay purchases during economic uncertainty.
• Costs and trade: New or increased tariffs could hurt results. Inflation and freight costs can also affect profitability, and passing higher costs to customers can take time.
• Debt and cash needs: Servicing debt requires cash, while the businesses require funding for inventory, parts and facilities. Cash generation depends on factors outside Terex’s control, and debt agreements contain covenants and restrictions.
• Operations and technology: The multinational manufacturing network faces risks including transportation interruptions, labor shortages, regulatory changes and currency controls. A failure of a key IT system or a cybersecurity breach could disrupt operations.
• Production execution: The utility expansion has created ramp-up inefficiencies at Waukesha. Terex expects them to continue into the fourth quarter of 2026 before normalizing as it moves into 2027.

Bottom line

Our reading

Terex combines equipment manufacturing with parts, service and digital offerings across several industrial markets, now including specialty vehicles. Its distribution and service networks support customer relationships, but competition remains product-specific. The business also depends on customers’ equipment spending and on managing manufacturing costs, working capital and debt; integrating REV and navigating the potential Aerials separation add execution demands.