TerexTEX

01The combination of a $6.9 billion backlog with customer advances earning interest creates a built-in revenue pipeline where customers have already committed capital, reducing demand uncertainty and providing working capital benefits. The interest-bearing customer advance structure in Specialty Vehicles suggests these are firm commitments rather than cancellable orders, meaning revenue recognition timing is largely a production capacity question rather than a demand question.

02The REV acquisition fundamentally transformed Terex from a cyclical heavy equipment manufacturer into a diversified specialty equipment company with 83% North American exposure. The four segments serve distinct end markets—municipal waste collection, utility grid maintenance, emergency services, infrastructure—with different demand drivers, reducing correlation to any single construction or industrial cycle.

03The 760 basis point improvement in working capital intensity demonstrates the company is extracting cash from operations at an accelerating rate relative to revenue scale. Combined with the receivables factoring program ($348 million sold in H1), management has multiple levers to convert revenue growth into cash without proportional balance sheet expansion.

04We expect utility market demand to remain supported by long-term investment in the U.S. electrical grid, including transmission expansion and future data-center-related growth Demand for fire and emergency vehicles remains stable, tied to municipal budgets and replacement demand In Aerials and MP, infrastructure activity remains robust, supported by government funding and a growing pipeline of mega projects that we expect to provide a tailwind through at least 2030 ES designs utility equipment including digger derricks, insulated aerial devices for construction and maintenance of transmission and distribution lines