Terex Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: prepared remarks. Guidance figures: 11 kept. The quarter’s numbers.

Key takeaways

Sales up 41% reported: Net sales were $1.7 billion, up 41% on a reported basis, reflecting the REV Group merger and growth in each legacy segment; proforma growth was 10.8%. Source
Adjusted EPS $0.98 with tax benefit: Adjusted EPS of $0.98 included about $0.10 of one-time tax benefit against the 21% full-year rate; operational EPS improved $0.05 year over year. Source
Adjusted EBITDA margin 9.9%: Adjusted EBITDA was $173 million, a 9.9% margin, down about 50 basis points, with tariffs not in the prior-year period partly offset by MP and SV. Source
MP sales and margin rose: Materials Processing sales of $419 million rose 18.3% on a proforma basis; EBITDA margin reached 15%, up 310 basis points, on volume, efficiency and pricing. Source
Specialty Vehicles two-month contribution: Specialty Vehicles generated $436 million in February and March, up 20% proforma, partly on weather-related delivery timing; adjusted margin 14.2%, up 160 basis points. Source
Backlog reached $7.1 billion: Quarter-end backlog rose to $7.1 billion; pro forma bookings of $2.1 billion gave a 109% book-to-bill, down 1.1% year over year on order timing. Source
REV integration on schedule: REV integration is progressing as planned, with all workstreams at or ahead of schedule. Source

“We delivered a solid start to 2026, with strength in MP and Utilities and a strong initial contribution from our new SV segment.”
Simon A. Meester - Terex Corporation - President and Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Net sales Source	2026 full year, proforma	$7.5 to $8.1 billion	Kept
EBITDA margin Source	2026 full year, midpoint	12.4%	Kept
Adjusted EPS Source	2026 full year	$4.50 to $5.00	Kept
Share count Source	Quarters two to four 2026	approximately 115 million	Kept
Interest and other expense Source	2026 full year	approximately $190 million	Kept
Effective tax rate Source	2026 full year	21%	Kept
Free cash conversion Source	2026 full year	80% to 90% of net income	Kept
Synergies (REV) Source	2026 full year	approximately $28 million	Kept
Quarterly EPS phasing Source	Second quarter 2026	approximately 25% of full-year EPS
Specialty Vehicles net sales growth Source	2026 full year	high single digits, on an 11-month prior-year base of $2.2 billion	Kept
Specialty Vehicles EBITDA margin Source	2026 full year	meaningful improvement from prior-year approximately 12.5%	Kept
Aerials net sales and margins Source	2026 full year	similar to 2025	Kept
Specialty Vehicles run-rate revenue and margins Source	Second and third quarters 2026	similar to Q1, with a modest seasonal step down in Q4
Depreciation and amortization	2026 full year	approximately $110 million excluding purchase price accounting amortization

What changed from last quarter

Guidance kept: Full-year 2026 guidance reiterated after the first quarter, citing backlog and bookings trends. Source
New: REV Group merger closed February 2; the acquired business now runs as the Specialty Vehicles segment.
Ended: Crane and Midwest businesses were divested and are excluded from the 2026 guidance base.
New: Strategic review of the Aerials business is under way with several interested parties engaged. Source

Results and growth drivers

Sales up 41% reported: Net sales were $1.7 billion, up 41% on a reported basis, reflecting the REV Group merger and growth in each legacy segment; proforma growth was 10.8%. Source
Organic revenue up 8.1%: Excluding the merger and divestitures, organic revenue rose 8.1%, with increased sales in all legacy segments. Source
Adjusted EPS $0.98 with tax benefit: Adjusted EPS of $0.98 included about $0.10 of one-time tax benefit against the 21% full-year rate; operational EPS improved $0.05 year over year. Source
GAAP loss on merger charges: Loss from continuing operations was $93 million, or $0.97 per share, including significant non-cash and other merger-related charges.
Adjusted EBITDA margin 9.9%: Adjusted EBITDA was $173 million, a 9.9% margin, down about 50 basis points, with tariffs not in the prior-year period partly offset by MP and SV. Source

Segments and regions

MP sales and margin rose: Materials Processing sales of $419 million rose 18.3% on a proforma basis; EBITDA margin reached 15%, up 310 basis points, on volume, efficiency and pricing. Source
Specialty Vehicles two-month contribution: Specialty Vehicles generated $436 million in February and March, up 20% proforma, partly on weather-related delivery timing; adjusted margin 14.2%, up 160 basis points. Source
Aerials EBITDA breakeven: Aerials sales were $469 million, up 4.2%, largely on foreign exchange; adjusted EBITDA was breakeven versus $20 million a year earlier. Source
ES margin lower on Utilities mix: Environmental Solutions sales of $412 million rose 3.3% on Utilities; adjusted margin of 18.0% compared with 20.3%, on a higher Utilities mix and lower refuse collection volume. Source
Mostly North American production: About 80% of pro forma 2025 revenue came from North America, and roughly 85% of that was manufactured in the United States. Source

“Our overall first quarter operational financial results were consistent with our expectations.”
Jennifer Kong-Picarello, Senior Vice President and Chief Financial Officer

Products and customers

Utilities fastest-growing business: Terex Utilities was the fastest-growing business in the quarter as it ramps production to meet demand for bucket trucks and digger derricks. Source
Fire apparatus capacity additions: Ladder truck capacity at the Ocala plant rises 35%; the pre-engineered S-180 Pumper, deliverable in about nine months, offers a lower-cost option. Source
3rd Eye digital solution shown: The AI-based 3rd Eye solution, developed by ES, was shown at a fire and emergency trade show; the digital team has added fire and emergency vehicles to its scope. Source
Waste demand skewed to second half: Waste and recycling customers indicate 2026 demand will skew to the second half, including pre-buys ahead of the 2027 EPA changes; Heil expected to outperform the market. Source

Costs, margins and pricing

Tariffs weigh on Aerials: Aerials carries tariffs it did not incur a year earlier; management expects Aerials to be largely price/cost neutral for the full year. Source
Section 232 change seen as negligible: The recent Section 232 tariff change is expected to be negligible, as most US sales are manufactured in the US.
Imported crushing equipment exempt: Mobile crushing and screening equipment, the main aggregate products imported from the U.K., are not subject to 232 tariffs. Source
MP margins expected to improve: MP expects margins to improve through 2026 from higher volume, productivity and favorable price-cost, following price actions in the quarter. Source

“We are off to a good start and executing to plan, including the first 58 days with REV Group in our portfolio, now operating as our Specialty Vehicles (SV) segment, which made a meaningful contribution in the quarter.”
Simon Meester, Terex President and Chief Executive Officer

Demand and order book

Backlog reached $7.1 billion: Quarter-end backlog rose to $7.1 billion; pro forma bookings of $2.1 billion gave a 109% book-to-bill, down 1.1% year over year on order timing. Source
MP bookings and backlog grew: MP bookings of $623 million rose 38% on a proforma basis, with aggregates the main driver; MP backlog of $594 million was up 53% year over year. Source
Aerials book-to-bill of 132%: Aerials bookings produced a 132% book-to-bill and a $1 billion backlog; growth was strongest in North America, with modest EMEA growth. Source
ES bookings lower on timing: ES bookings were $347 million, lower on timing of large Utilities orders recorded in Q4; management expects Utilities bookings to remain strong. Source
SV orders lumpy, two years of backlog: SV bookings of $501 million are lumpy, while backlog remains elevated at roughly two years, giving visibility for the rest of the year. Source

Capital, cash and shareholder returns

Free cash outflow $57 million: Free cash outflow was $57 million, consistent with last year; Terex cash generation is seasonally weighted to the second half. Source
Net working capital ratio improved: Net working capital fell to 16.7% of sales from 26% a year earlier, helped by the less seasonal working capital profile of Specialty Vehicles. Source
Net leverage reduced to 2.4x: Net leverage ratio was reduced to 2.4 times and is expected to improve over the year; interest and other expenses were $44 million, $1 million lower than last year. Source
Liquidity $1.0 billion, capex $26 million: Liquidity was $1.0 billion at March 31; capital expenditures and investments totaled $26 million in the quarter.
Dividends and repurchase capacity: Terex returned $19 million through dividends by March 31 and has about $183 million available under its share repurchase programs.
Share count up with merger: Q1 EPS is based on 96.1 million shares, up from 66.9 million a year earlier, reflecting shares issued in the REV merger. Source

Integration and portfolio strategy

REV integration on schedule: REV integration is progressing as planned, with all workstreams at or ahead of schedule. Source
ESG integration playbook reused: The REV integration follows the playbook used for the ESG integration, which management said was completed ahead of schedule and within budget. Source
Portfolio shifted to US sectors: Over two years the portfolio moved toward more US-based, resilient and predictable end markets, reducing exposure to global macro and trade policy. Source
Legacy teams and cultures combining: Management is encouraged by how legacy Terex and legacy REV teams are working together, with the two cultures meshing. Source

End markets and macro conditions

Grid demand drives capex growth: Industry forecasts call for 8% to 15% annual capex growth through 2030, driven by US grid demand from data centers and AI use cases. Source
Mega projects tailwind to 2030: Robust infrastructure activity, supported by government funding, provides a tailwind for construction through 2030. Source
India growing, Europe and Australia improving: MP continues to grow in India and is starting to see improvements in Europe and Australia. Source
Guidance held one quarter in: Management held full-year guidance because only one quarter has passed and macro variables are outside its control. Source

Coming up, as management said on 5 May 2026

Aerials review updates to come: No specific details on the Aerials strategic review yet; management will update shareholders as the process unfolds. Source
Guidance refined through the year: Management said it will refine its full-year guidance as the year unfolds, given macro variables it does not control. Source
ESG orders weighted to second half: ESG orders are expected to be more heavily weighted to the second half, including orders for delivery ahead of 2027 EPA regulations. Source
Utilities capacity added by year-end 2027: Phased investment expected to bring 30% more Utilities capacity online by the end of next year, meaning 2027. Source

Figures management reported

Figure	Reported
Backlog	$7.1 billion
Aerials book-to-bill Source	132%
Aerials backlog Source	$1 billion
MP backlog Source	$594 million
MP bookings Source	$623 million
SV bookings Source	$501M

Risks management discussed

External: Oil prices could hamper growth in Europe and Australia, which management describes as currently vulnerable markets. Source
External: Management cites many macroeconomic variables and geopolitical uncertainties, and says results could change negatively or positively. Source
Regulatory: Guidance assumes tariffs stay broadly at current rates, so changes in tariff policy could affect the full-year figures.
Operational: Aerials faced temporary unfavorable mix in the quarter, with favorable price-cost dynamics expected for the rest of the year. Source
Demand: Waste and recycling demand is expected to be more heavily weighted to the second half of 2026 than in the first. Source
Financial: Cash generation is seasonally weighted to the back half, so first-quarter cash outflows are expected to reverse as volume rises. Source

Earlier plans management reported on

Met: Management said first-quarter operational performance was in line with its expectations.
Met: Management said ES sales growth of 3.3% came as expected, driven by Terex Utilities ramping up. Source
Met: Management said Aerials EBITDA breakeven was expected given seasonally low Q1 volume and tariffs. Source
On track: Management said the $28 million 2026 synergies are on target to reach a $75 million annual run-rate within two years.
Not stated: Management said first-quarter results and backlog support re-confirming the full-year 2026 guidance given in February. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

First Quarter 2026 Earnings Release Conference Call

Derek Everitt - Terex Corporation - Vice President, Investor Relations

Good morning and welcome to the Terex Corporation (“Terex” or “Company”) 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 question-and-answer.

Please turn to slide 2 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 materials and in our reports filed with the Securities and Exchange Commission. 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 3 and I’ll hand it over to Simon Meester.

Simon A. Meester - Terex Corporation - President and Chief Executive Officer

Thanks, Derek, and good morning. I would like to welcome everyone to our earnings call and appreciate your interest in Terex. We are off to a good start for the year, including our new Specialty Vehicles (“SV”) 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 proforma basis, including growth in all four segments, led by SV which grew 20% compared to the same period last year. Terex 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 earnings per share (“EPS”) increased 18% year-over-year to $0.98 cents, or a 6% improvement with a normalized tax rate. Quarter-ending backlog increased to $7.1 billion, which includes strong bookings trends particularly in Materials Processing (“MP”), Aerials (“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 4. The REV integration is progressing as planned. We are executing the same playbook we used for the Environmental Solutions Group (“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 of sight to achieving a $75 million run‑rate within our 24 month target. With regards to the integration effort, all workstreams are at or ahead of schedule. In addition, I am 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 SV team showcased our 3rd Eye digital solution at the fire and emergency trade show in Indianapolis and were very pleased with the level of interest it created. 3rd Eye is an AI-based solution that our Environmental Solutions (“ES”) segment developed for their customers to provide situational 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 are also pleased with the progress we are making with the strategic review of our Aerials 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 5. Over the past two years we deliberately shifted our portfolio’s end market exposure to more U.S. 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 are increasing capacity for the pre-engineered S-180 Pumpers. Both investments will help to reduce lead times and with the S-180 Pumper, 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 to bring 30% more capacity on-line by the end of next year. And finally in construction, we see robust infrastructure activity supported by government funding. The pipeline of mega projects 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 will turn it over to Jenn.

Jennifer Kong-Picarello - Terex Corporation - Senior Vice President and Chief Financial Officer

Thank you, Simon, and good morning, everyone. Let’s look at our Q1 results on slide 6. Our operational performance was in line with our expectations. We grew sales to $1.7 billion, an increase of $505 million or 41% compared with the prior year on a reported basis. The growth was due to the merger with REV Group that closed on February 2nd and growth in each of our legacy segments. On a proforma basis we grew 10.8%, led by strong growth in SV, MP and Terex Utilities. Excluding the impact of the merger and the sale of our Crane and Midwest businesses, organic revenue increased 8.1% with increased sales across all legacy segments. Q1 EBITDA margin was 9.9%, down 50 basis points versus the prior year, primarily driven by tariffs, which were not in effect in the prior year period, partially offset by improved performance in MP and SV. Interest and other expenses of $44 million was $1 million lower than Q1 last year and the first quarter effective tax rate was 11%, driven by favorable one-time tax attributes. EPS for the quarter was $0.98, which included approximately $0.10 of one-time tax benefit when the Q1 rate is compared to our 2026 full year expected tax rate of 21%. Our operational EPS improvement was $0.05 compared to last year, despite the tariff headwinds. Notably our current Q1 EPS is based on 96.1 million shares outstanding, up from 66.9 million in the first quarter of 2025. Free cash outflow in the quarter was $57 million, consistent with Q1 last year. Terex historical cash generation is seasonally weighted toward the back half of the year, with first quarter cash outflows reversing as volume increases and working capital unwinds through the remainder of the year. Importantly, our newer businesses, particularly SV, have a more favorable working capital profile with significantly less seasonality. As a result, our Q1 net working capital as a percentage of sales improved to 16.7% compared to 26% in the same period last year. We also reduced our net leverage ratio to 2.4x and remained disciplined with our capital structure focused on maximizing value for our shareholders.

Please turn to slide 7 to review our segment results, starting with ES. As expected, sales growth of 3.3% in ES was driven by Terex Utilities as they begin to ramp up to meet strong demand for bucket trucks, digger derricks and parts and services. Q1 EBITDA margin of 18% was lower than the prior year due to a higher mix of Utilities volume where margins continue to improve, coupled with lower ESG volume, partially offset by higher synergy realization.

Turning to slide 8. MP had a very good first quarter, growing bookings and sales, and expanding operating margin. Sales of $419 million were 18.3% higher than the prior year on a proforma basis, or 12% higher excluding the impact of foreign exchange rates. Growth in aggregates was the primary driver, as sales grew in every region. The handling and environmental verticals also grew in the quarter. MP EBITDA margin continued to improve, reaching 15% in the quarter as higher volume, efficiency improvements and pricing actions drove the 310 basis point increase over the prior year. The margin actions and increasing bookings and backlog sets MP up well for the balance of 2026.

Moving to slide 9. Our new SV segment got off to a great start, generating $436 million of revenue in February and March, representing growth of 20% compared with the same period last year. The growth was a combination of price realization and higher unit deliveries across all product lines, partially due to weather-related delivery timing. EBITDA margin increased by 160 basis points to 14.2% driven by higher throughput, price realization and improved operational efficiency.

Turning to page 10. Aerials had another strong bookings quarter, with 132% book-to-bill, generating a $1 billion backlog, giving us forward visibility as we head into the annual selling season. Sales in the quarter were $469 million, up 4.2% year-over-year largely due to positive foreign exchange rates. As expected, Aerials EBITDA was breakeven because Q1 is typically a seasonally low volume quarter, and due to tariffs which the business did not incur this time last year. In addition, the business faced some temporary unfavorable mix but expects favorable price/cost dynamics for the remainder of the year.

Turning to bookings on slide 11. Before going into each segment, for Terex overall, Q1 proforma bookings of $2.1 billion represented 109% book-to-bill ratio and led to modestly higher backlog on a sequential and year-over-year basis. In ES, Q1 bookings were $347 million, slightly lower than prior quarters due to the timing of several large Utilities bookings that were recorded in Q4. We expect booking levels in Utilities to remain strong, and our focus remains on ramping up throughput to meet demand. On the ESG side we expect orders to be more heavily weighted to the second half of the year, including additional orders for delivery in advance of the new 2027 EPA regulations. MP bookings of $623 million reflects 38% year-over-year growth on a proforma basis. While aggregates was the main driver, bookings also increased in Concrete, Material Handling, and Environmental. MP ended the quarter with $594 million in backlog, up $205 million or 53% versus the prior year setting it up for strong performance through 2026. SV bookings came in at $501M. As you can see on the chart, orders can be lumpy in the segment, but overall, the backlog remains elevated and the team is focusing on bringing lead-times down with calculated investments. Finally, Aerials bookings of $620 million in Q1 combined with $971 million in Q4 is 21% higher than the same six-month period a year ago. While growth was strongest in North America, we also saw modest growth in EMEA, providing good visibility for the balance of 2026.

Now turn to slide 12 for our 2026 outlook. We are operating in a complex environment with many macroeconomic variables and geo-political uncertainties, and results could change negatively or positively. The outlook we are providing today reflects our current portfolio and does not account for any cost to achieve the synergies, purchase accounting adjustments, nor other non-recurring items. Our first quarter performance, bookings trends and backlog of $7.1 billion supports re-confirming the full year 2026 outlook that we provided in February. Overall, we continue to expect 2026 sales to grow approximately 5% on a proforma basis to $7.5 to $8.1 billion. We further expect proforma EBITDA to grow by approximately $100 million or 12% year over year to between $930 million and $1 billion, or 12.4% EBITDA margin at the mid-point. Included in our EBITDA outlook is approximately $28 million of synergies that we are well on our way to realizing. This is in line with our goal to achieve $75 million of run rate synergies within two years of closing the merger. We continue to anticipate interest and other expenses to be approximately $190 million, consistent with proforma 2025, based on average debt outstanding of about $2.7 billion. The effective tax rate for the full year is still expected to be 21%. We expect 2026 EPS between $4.50 and $5.00. Please note, the share count for quarters two through four will be approximately 115 million. For modeling purposes, approximately 25% of our full year EPS is anticipated in the second quarter as we expect profitability in Aerials and ES to improve in the second half. We expect 2026 free cash conversion of between 80% and 90% of net income. Our net leverage is expected to improve over the course of the year.

Looking at our segments, we expect ES to grow mid-single digits in 2026, led by Utilities where we continue to ramp up production to meet strong demand. We expect margin to improve in the second half due to higher volume including digital and aftermarket, productivity improvements, and improved customer mix. We do not foresee a material impact from recent tariff changes on ES performance. Turning to MP, the strong start to the year and growth in bookings and backlog gives us confidence in our high single digit proforma growth outlook for the segment, largely driven by aggregates. We also expect margins to improve through 2026 due to higher volume, productivity and favorable price cost. It’s important to understand that mobile crushing and screening equipment, the primary products in the aggregate vertical that we import from the U.K. are not subject to 232 tariffs. Our new SV segment got off to a great start, and with roughly two years of backlog, provides very good visibility for the balance of the year. We continue to expect sales growth of high single digits from an 11-month, proforma, prior year total of $2.2 billion. We also continue to expect meaningful margin improvement compared to the prior year EBITDA margin of approximately 12.5%, due to higher throughput, price realization and on-going operational improvements. From a modeling perspective, we expect run rate revenue and margins in Q2 and Q3 to be similar to Q1 with a modest seasonal step down in Q4 due to fewer working days. We do not foresee a material impact from recent tariff changes on SV performance. Finally, in Aerials we continue to anticipate 2026 sales and margins to be similar to 2025. We have good visibility with over $1 billion in backlog following back-to-back quarters with strong bookings. Margins are expected to improve sequentially in the second and third quarters, with higher volume, price realization, favorable customer mix and disciplined cost management. Even with the higher impact of tariffs versus last year, we expect Aerials to be largely price/cost neutral for the full year. With Q1 behind us, healthy backlog and fleet utilization, we expect the business to have bottomed and start its path to cyclical recovery. In summary, given that we are only one quarter into the year, and there are macro variables that we do not control, we believe it is prudent to hold our 2026 outlook at this point in time. We will obviously refine our outlook as the year unfolds. Please turn to slide 14, and I will turn it back to Simon.

Simon A. Meester - Terex Corporation - President and Chief Executive Officer

Thanks, Jenn. We delivered a solid start to 2026, with strength in MP and Utilities and a strong initial contribution from our new SV segment. Integration execution is progressing as planned, and we are on track to deliver our synergy commitments. Our portfolio is more resilient and predictable, with greater North America exposure and less sensitive to macro volatility and tariff changes than in prior years. Our teams are focused on disciplined execution against our strategy and our annual plan as we build on the progress we have made to date. And with that, I would like to open it up for questions. Operator?