Terex Corporation

Greetings and welcome to the Tarek's third 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. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Drew Konop, Vice President of Investor Relations. Drew, please go ahead.

Good morning and welcome to the Terex third quarter 2026 earnings conference call. A copy of the press release and presentation slides is 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 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 our earnings material and in 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 of 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.

Thanks, Drew. Good morning, and thank you for joining us. Today, I'll cover our third quarter performance, the demand environment across our businesses, and our updated full-year outlook. I'll also discuss the process around the separation of the aerial segment before Jen takes you through the financial results in more detail. At a consolidated level, Terex delivered higher sales, adjusted EBITDA, and cash flow in the third quarter versus prior year, while expanding margins and further strengthening the balance sheet. Sales of $2.2 billion increased approximately 12% year over year, and adjusted EBITDA of $286 million rose approximately 14% on a pro forma basis. Materials processing and specialty vehicles delivered strong performance, Ariel's improved again sequentially and environmental solutions continued investing in utilities capacity to support rapidly growing customer demand. Consolidated earnings also increased sequentially despite slightly lower sales demonstrating improving execution and earnings conversion. Order activity improved significantly during the quarter with pro forma orders up 53% year over year and Backlock reaching $7 billion. Bookings were higher in all four segments and orders exceeded sales in materials processing, specialty vehicles and environmental solutions. Consolidated book to bill was approximately 103%, which is greater than our typical seasonality, providing an optimistic forward outlook across the portfolio. Specialty vehicles continues to provide particularly good forward visibility Materials processing backlog reached a two-year high, and environmental solutions backlog increased from the second quarter. Jen will cover the segment level bookings and backlog trends in more detail later. Turning to slide four. The underlying demand drivers remain attractive across infrastructure, utilities, power, and data centers, while municipal replacement demand supports fire and emergency equipment in the United States. Refuse collection vehicle demand is improving sequentially. US commercial and residential construction remain below historical levels, but have largely stabilized while Europe is mixed. Turning to execution on slide five. We're making progress integrating the expanded portfolio. With foundational work across all work streams now completed, more of our attention is shifting towards value capture. The launch of our centralized procurement organization was an important next step. By coordinating sourcing across the enterprise, we can better leverage our scale, simplify the supply base, and reduce product complexity. These actions should support our synergy commitments and enhance earnings power over time. We're also applying a more consistent execution discipline across the company. As integration activities mature, our focus is increasingly shifting towards operational improvement opportunities. We are deploying proven operating practices, digital manufacturing tools, and standardized operating routines to improve throughput, productivity, and quality. Early results are encouraging and we see a growing synergy pipeline. As reflected in the results I outlined earlier, That operating discipline supported growth and margin expansion in materials processing and specialty vehicles, as well as sequential improvement in aerials. In environmental solutions, demand remains healthy, and we are expanding utilities production capacity to support secular growth. As expected, the expansion created temporary ramp-up inefficiencies that affected near-term profitability. The team, however, is making progress and many others. We continue to invest in our strongest businesses and brands through product development and innovation. Heil recently introduced its next generation automated side loader for residential refuse collection. It was designed to improve safety, efficiency and productivity while establishing a foundation for fully autonomous operation when paired with our third eye digital offering. Finlay also introduced Electro, a new range of hybrid crushing equipment designed to reduce fuel consumption and operating costs while supporting more sustainable customer operations. Our commitment to product development is also receiving external recognition. Earlier this month, Genie's next generation slab scissor lift were named product of the year in the scissors lift and vertical mass category, reflecting our continued focus on quality, productivity, and total cost of ownership for customers. The third quarter also marked significant milestones for several of our brands, including the 60th anniversaries of PowerScreen and Genie, and the 50th anniversary of Road Rescue Ambulances. These milestones reflect decades of customer relationships large installed bases and application expertise that support repeat purchases, aftermarket growth and enduring brand value. At the same time, we continue to simplify the portfolio and direct investment where we see the greatest long-term opportunity. The exits from capacity and laymore further reduce complexity and cyclicality and allow us to concentrate resources on businesses with stronger market positions and more attractive long-term returns. combined with our cash generation, these actions preserve our capacity to return capital to shareholders. With that strategic and operating context, let me turn to our updated full year outlook. Based on our third quarter results and updated expectations, we are refining our full year outlook. We now expect sales in the range of $8 billion to $8.2 billion and adjusted pro forma EBITDA of $930 million to $960 million. reflecting typical fourth quarter seasonality. The updated outlook reflects our current assumptions for fourth quarter demand, production and costs. Looking beyond the near term, integration savings, operating improvements and portfolio mix provide a foundation for sustainable earnings growth. Before turning it over to Jen, I want to update you on the aerial separation process. Since our last update, we've made good progress advanced the carve-out work and moved from evaluating inbound interest to active engagement with multiple strategic counterparties. While the process continues, the team remains focused on serving customers, growing the business, and improving performance. Our priority is to achieve a successful outcome that reflects Genie's strong brand, global footprint, and differentiated products, and maximizes value for Terex shareholders. and given the active nature of the discussions, we will not comment on individual counterparties or establish a specific timeline. Across Terex, our focus remains straightforward, advanced operating performance, realize the synergies of the transformed portfolio and translate the strength of our brands and end markets into higher earnings and cash flow. With that, I'll turn it over to Jen to walk through the financials and our updated outlook in more detail.