Terex Corporation (NYSE:TEX) shares declined 2.13% in pre-market trading Wednesday after the company posted fourth-quarter sales that fell slightly short of Wall Street expectations, even as profit topped forecasts.
The equipment manufacturer reported adjusted earnings per share of $1.12 for the quarter, narrowly ahead of the $1.11 consensus estimate. Revenue totaled $1.3 billion, just under analysts’ expectations of $1.31 billion, though still up 6.2% compared with the same period a year ago.
Bookings were a bright spot, rising 32% year over year to $1.9 billion. The company achieved a book-to-bill ratio above 100% across all segments, with its Aerials division delivering a notably strong 210% ratio.
For full-year 2025, Terex generated adjusted EPS of $4.93 on revenue of $5.42 billion, marking a 5.7% increase in annual sales versus 2024. Free cash flow conversion improved sharply to 147%, up from 57% in the prior year.
Looking to 2026, Terex expects net sales between $7.5 billion and $8.1 billion, with adjusted EPS projected in a range of $4.50 to $5.00. Adjusted EBITDA is forecast at $930 million to $1 billion, alongside free cash flow conversion of 80% to 90%.
The outlook factors in approximately $28 million of realized synergies next year from its merger with REV Group, as the company works toward achieving a $75 million annual run-rate synergy target within two years.