Terex Reports Third-Quarter Sales Growth, Raises Free Cash Flow Outlook

What happened

Terex reported third-quarter sales of $2.2 billion, up 11.6% on a pro forma basis, with adjusted EBITDA of $286 million and adjusted diluted EPS of $1.50. Operating cash flow was $241 million, and free cash flow was $209 million.

Confirmed

Global impact / market context

Free cash flow is cash left after spending needed to run and grow the business, so a higher 2026 outlook of $360 million to $400 million signals more cash available to repay debt, return to shareholders, or fund capacity expansions without relying heavily on borrowed money.

Analyst inference

Bookings rose 53% and backlog reached $7 billion, giving visibility into future revenue. A book-to-bill near 103% means orders slightly exceed sales, supporting revenue while capacity spending at Brandon targets shorter lead times, though execution and cost control remain key.

Analyst inference

What to watch

1. Terex expects 2026 sales of $8.0 billion to $8.2 billion, adjusted pro forma EBITDA of $930 million to $960 million, EPS of $4.80 to $5.00, and free cash flow of $360 million to $400 million. Confirmed
2. Watch whether the Brandon capacity expansion stays on schedule and budget, because delays or cost overruns could reduce the free cash flow benefit expected from shorter lead times and higher output. Proposed
3. Track the $7 billion backlog and book-to-bill near 103%, since a fall toward or below the level where orders match sales could signal slowing demand, lower future revenue, and less cash generation than the 2026 outlook assumes. Analyst inference

Evidence

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