Core Viewpoint - The merger between Terex Corporation and REV Group has received necessary stockholder approvals, with the transaction expected to close in the first week of February 2026, pending remaining closing conditions [1][2]. Company Overview Terex Corporation - Terex is a global industrial equipment manufacturer specializing in materials processing machinery, waste and recycling solutions, mobile elevating work platforms, and equipment for the electric utility industry [5]. - The company focuses on providing lifecycle support and complementary digital solutions to maximize customer investment returns, including environmentally friendly products such as electric and hybrid offerings [5]. REV Group, Inc. - REV Group designs and manufactures specialty vehicles and related aftermarket parts, serving a diversified customer base primarily in the United States [6]. - The company operates through two segments: Specialty Vehicles, which includes public service vehicles, and Recreational Vehicles, which encompasses a range of RVs [6]. Merger Details - Over 95% of Terex stockholders voted in favor of the stock issuance proposal, while more than 80% of REV's outstanding shares voted in favor of the merger proposal [7]. - The merger is expected to create a stronger, more diversified company with enhanced financial flexibility and significant synergies, positioning both companies for sustainable long-term growth [2][7].

Financial Data and Key Metrics Changes - The company reported a gross margin expansion of approximately 30 basis points in the first half of the year, with expectations for lower expansion in the second half, likely in the range of 5 to 15 basis points [16][18][42] - The company anticipates modest price increases across the market, with no significant elasticity impact observed from these price changes [12][48] Business Line Data and Key Metrics Changes - The company categorizes its business into three segments: consumable, usable, and edible (CUE) products, which continue to show strong mid-single-digit comparable sales growth [6][9] - Seasonal businesses, particularly big-ticket items like riding lawnmowers, performed well during the summer months, indicating strong consumer demand [7][8] - Core discretionary items, such as gun safes and recreational vehicles, experienced muted performance compared to the previous year [9] Market Data and Key Metrics Changes - The overall consumer health is described as resilient, with strong GDP and consumer spending supporting the company's performance [4] - The company has not faced significant inventory issues, maintaining inventory growth closely aligned with comparable sales growth [50] Company Strategy and Development Direction - The company is pursuing a "Life Out Here" strategy, focusing on initiatives such as the Allivet acquisition, direct sales, final mile delivery, and localization to drive growth [24][25][26][27] - The company plans to open 100 new stores and has acquired 18 Big Lots locations, viewing these as opportunities for retrofitting and expansion [32][34] Management's Comments on Operating Environment and Future Outlook - Management expects the consumer environment to remain stable into 2026, with no significant changes anticipated [44][46] - The company is confident in achieving its long-term growth targets, including a 3% to 5% comparable sales growth and operating margins of 10% to 10.5% [41][42] Other Important Information - The company has a strong focus on capital allocation, prioritizing investments in the core business while also committing to dividends and share buybacks [29][30] - The competitive landscape is expected to remain stable, with the company positioned to gain market share due to its scale and operational efficiencies [55] Q&A Session Summary Question: What are the expectations for the consumer environment in the second half of 2025? - Management expects the environment to remain the same [44][46] Question: What are the plans for pricing in the remainder of this year and into 2026? - The company is navigating tariffs and adjusting pricing accordingly, expecting similar competitive dynamics in 2026 [48] Question: What are the expectations for inventory growth in the second half? - Inventory growth is expected to continue aligning with comparable sales growth, with no significant disruptions anticipated [50] Question: What are the expectations for non-tariff margin drivers into 2026? - Freight and wages are expected to remain stable, while commodity pricing may see modest increases [52] Question: How will market share consolidation trend in 2026? - Management believes consolidation will remain about the same, with the company well-positioned to gain share [53][55]