Terex Corporation (TEX) Income Statement

The 2026Q2 revenue of $2.2B represents a significant step-up from the $1.7B in 2026Q1 and $1.3B in 2025Q4, suggesting a strong demand inflection. However, the growth is uneven, with 2025Q1 showing a decline of 4.9%, indicating cyclicality. The sustainability of this growth depends on whether it is driven by volume or pricing, which is not discernible from the data alone.

The gross margin in 2026Q1 was notably low at 11.9%, which may indicate cost pressures or a mix shift, but it rebounded to 19.8% in 2026Q2. Compared to peers like AGCO (24.8%) and CNH (31.5%), Terex's margins are lower, suggesting weaker pricing power or higher input costs. Investors should monitor whether the margin recovery is sustainable or if it reflects one-time factors.

The operating margin improved from -4.7% in 2026Q1 to 8.4% in 2026Q2, while SG&A expenses decreased from $241M to $209M, indicating cost control. However, the prior quarter's loss suggests that fixed costs are high relative to revenue, making profitability vulnerable to demand fluctuations. The 2026Q2 operating income of $187M is the highest in the series, but the volatility warrants caution.

The SG&A-to-revenue ratio in 2026Q1 was 14.2%, but it dropped to 9.5% in 2026Q2, indicating improved overhead efficiency. R&D appears minimal or unreported in most quarters, which may imply a lower investment in innovation compared to peers. The cost structure is heavily weighted toward COGS, which is typical for manufacturing, but the volatility in gross margin suggests input cost pressures.

This quarter marks a clear turnaround from the 2026Q1 loss, driven by a 29% sequential revenue increase and a gross margin recovery from 11.9% to 19.8%. The operating margin of 8.4% is still below the 14.0% seen in 2024Q2, suggesting that the company has not fully regained its prior profitability. The lasting impact of this inflection depends on whether the revenue growth is sustainable or a one-time surge.