Terex Corporation (TEX) saw its shares plummet 5.73% in pre-market trading on Thursday following a series of significant announcements. The company revealed plans for a strategic merger with REV Group and its intention to exit the Aerials segment, alongside the release of its third-quarter financial results for 2025.

The equipment manufacturer announced a merger agreement with specialty vehicle company REV Group in a stock-and-cash transaction, creating a combined entity with an estimated enterprise value of $9 billion. Under the terms of the deal, REV Group shareholders will receive 0.9809 shares of the combined company and $8.71 in cash for each REV share held. Terex shareholders are set to own approximately 58% of the merged company. Simultaneously, Terex disclosed its plans to exit its Aerials segment, considering options such as a sale or spinoff of the unit.

Adding to the day's developments, Terex reported its Q3 2025 financial results. The company's sales rose 14.4% year-over-year to $1.4 billion, slightly missing analyst expectations of $1.41 billion. However, adjusted earnings per share came in at $1.50, surpassing estimates. Despite maintaining its full-year adjusted EPS outlook of $4.70 to $5.10, Terex warned of higher tariff-related costs in Q4 due to expanded steel and aluminum tariffs. The combination of these factors appears to have unsettled investors, leading to the significant pre-market decline in Terex's stock price.