Terex Stock Earnings Reports

Terex and REV Group announced a definitive merger expected to close in H1 2026 creating a U.S.-centric, large-scale specialty equipment company (Terex shareholders ~58%, REV shareholders ~42%) with REV receiving $425M cash. Management expects at least $75M of annual synergies (about half within 12 months of close), a pro forma 2025 adjusted EBITDA margin near 14% (mid‑teens on a pro forma basis after Aerial exit), ~85% cash conversion initially, and roughly 2.5x pro forma leverage at closing with potential deleveraging after exiting Terex's Aerial segment. The combined business will emphasize resilient end markets (emergency vehicles, waste collection, utilities, materials processing), a low capital intensity model, cross-selling and digital opportunities (expansion of the 3rd Eye platform), and operating-system driven integration. Terex intends to exit its Aerial (AWP) segment via sale or spin to reduce cyclicality; a formal process begins now. REV's backlog is about $4.5B (2–2.5 years), primarily in Specialty Vehicles. Management plans to run REV as a distinct segment within the combined company and will use playbooks from prior integrations (e.g., ESG) to execute integration and capture synergies. Investors should focus on synergy realization, timing and structure of the Aerial divestiture, pro forma leverage and margin trajectory, and the potential for aftermarket/digital revenue expansion.