What Terex Corp. told the SEC could break it.

Terex is steel-intensive across its crane, aerial-work-platform and materials-processing equipment, so US trade policy directly raises its input costs. U.S. steel prices were volatile throughout 2025, driven by restocking demand and a Section 232 tariff increase on steel from 25% to 50% that now applies to a broader range of steel and derivative products; imports of certain purchased components are further affected by sanctions barring Russian iron and steel, plus tariffs on foreign goods from many countries. The impact was realized, not hypothetical — Terex cited unfavorable tariffs and increased tariff expenses as a driver of lower Aerials and Materials Processing operating profit in 2025.

“Inflationary pressure on certain purchased components has persisted while the cost of U.S. steel remained volatile throughout 2025, driven by restocking demand and an increase of Section 232 tariffs on steel from 25% to 50%, which now apply to a broader range of steel and derivative products. Additionally, import of certain purchased components and parts may be impacted by the implications of sanctions preventing the use of iron and steel from Russia in such components and parts.”

While Terex sources most materials and components from multiple suppliers, certain of its businesses receive materials and components from a limited number of qualified suppliers or a single-source supplier. Delays by these suppliers — especially sole suppliers for a particular business — could delay production at a number of its manufacturing locations or force it to qualify alternative supply sources, a single-point-of-failure risk in its component supply chain.

“However, certain of our businesses receive materials and components from a limited number of qualified suppliers or a single source supplier, although alternative suppliers of such materials may be generally available. Delays in our suppliers' abilities, especially any sole suppliers for a particular business, to provide us with necessary materials and components may delay production at a number of our manufacturing locations or may require us to seek alternative supply sources.”