Terex Corporation

Greetings and welcome to the Tarek's first quarter 2026 results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Please go ahead.

Good morning and welcome to the Terex first quarter 2026 earnings conference call. A copy of the press release and presentation slides are posted on our investor relations website at investors.terex.com. In addition, the replay and slide presentation will be available on our website. We are joined today by Simon Meester, President and Chief Executive Officer, and Jennifer Kong, Senior Vice President and Chief Financial Officer. Their prepared remarks will be followed by a Q&A. Please turn to slide two of the presentation, which reflects our safe harbor statement. Today's conference call contains forward-looking statements, which are subject to risks that could cause actual results to be materially different from those expressed or implied. These risks are described in greater detail in the earnings material and in our reports filed with the SEC. On this call, we will be discussing non-GAAP financial information, including adjusted figures that we believe are useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures can be found in the conference call materials. Please turn to slide three, and I'll hand it over to Simon Meester.

Thanks, Derek, and good morning. I would like to welcome everyone to our earnings call and appreciate your interest in Terex. We're off to a good start for the year, including our new specialty vehicle segment, which was in the portfolio for two months of the period and already making a meaningful contribution to the group. We grew sales by 11% on a pro forma basis, including growth in all four segments, led by specialty vehicles, which grew 20% compared to the same period last year. Derks Utilities was our fastest growing business this quarter. The utilities team is doing an excellent job ramping up production in a very bullish market. And EPS increased 18% year over year to 98 cents or 6% improvement with a normalized tax rate. Quarter ending backlog increased to $7.1 billion, which includes strong bookings trends, particularly in materials processing, aerials and Terex utilities, providing good forward visibility and consistent with our expectations for the year. As a result, we are reiterating our full year outlook and with the recent additions to our portfolio, remain laser focused on execution and integration. Which brings me to slide four. The REV integration is progressing as planned. We are executing the same playbook we used for the ESG integration, which we completed ahead of schedule and within budget with synergies above target. For the synergies with REV, we are on track to realize approximately $28 million in 2026 by eliminating duplicate overhead and have line aside to achieving a $75 million run rate within our 24-month target. With regards to the integration effort, all work streams are at or ahead of schedule, In addition, I'm particularly encouraged by the way the Legacy Terex and Legacy Rev teams are working together and the two cultures are meshing really well. Last week, the specialty vehicles team showcased our ThirdEye digital solution at the Fire and Emergency Trade Show in Indianapolis and we're very pleased with the level of interest it created. ThirdEye is an AI-based solution that awareness around the vehicle and add tangible commercial and operational benefits. It's an integral part of what is now referred to as smart truck technology in the waste collection sector. Our digital team has already developed applications that leverage this technology for utility vehicles, cement mixers, and have now added fire and emergency vehicles to their scope. So good progress on the REV integration and the synergies front. We're also pleased with the progress we are making with the strategic review of our aerial business. We continue to engage with multiple interested parties and are working towards an outcome that maximizes value for our shareholders. We do not have any specific details to share at this time, but we will continue to update you as the process unfolds. Moving to page five. Over the past two years, we deliberately shifted our portfolios and market exposure to more US-based resilient and predictable sectors with attractive growth profiles. As a result, Terex is far less exposed to global macro dynamics and trade policy than in the past. Based on proforma 2025 results, about 80% of our revenue was generated in North America of which roughly 85% was manufactured in the United States. Our end markets are more stable and our supply chain is more durable. Touching briefly on our primary verticals, demand for fire and emergency vehicles continues to be strong. We are making strategic investments to improve production efficiency and increase capacity in key areas such as ladder trucks, where we are increasing capacity by 35% at our Ocala, Florida plant. And in South Dakota, we're increasing capacity for the pre-engineered S180 pumpers. Both investments will help to reduce lead times and with the S180 bumper, provide our customers with a lower cost alternative that we can deliver in about nine months. In waste and recycling, our customers are indicating that 2026 demand will be more skewed towards the second half, including anticipated pre-buys ahead of the 2027 EPA changes. Heil is well positioned to outperform the market again this year due to its product portfolio, production quality, and its lead times. We continue to anticipate growth in aftermarket, retrofits, and digital sales this year, and of course, The long-term fundamental growth drivers for the segment remain intact. Utilities is poised for strong growth for 2026 and beyond, as demand on the U.S. grid continues to increase, particularly from data center expansion and AI use cases. Industry forecasts call for 8% to 15% annual capex growth through 2030, and we're making good progress with our phased investment strategy. to bring 30% more capacity online by the end of next year. And finally, in construction, we see robust infrastructure activities supported by government funding. The pipeline of megaprojects provides a tailwind through 2030. MP continues to grow its business in India, and we are starting to see improvements in Europe and Australia, although oil prices can potentially hamper some of that growth given the more vulnerable state both of those markets are currently in. In summary, in the past two years, we have built a highly resilient portfolio of businesses that enable us to navigate short-term macro and market-specific dynamics and deliver on our financial objectives predictably and consistently going forward. And with that, I'll turn it over to Jen.