Terex (TEX) AI Stock Analysis

• Market Cap: $3.30B
• Dividend Yield: 1.35%
• Average Volume (3M): 836.09K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.67
• Revenue Growth: -0.35%
• EPS Growth: -63.44%
• Country: US
• Employees: 11,400
• Sector: Industrials
• Sector Strength: 80
• Industry: Agricultural - Machinery
• EPS (TTM): 1.49
• Shares Outstanding: 65,600,000
• 10 Day Avg. Volume: 677,839
• 30 Day Avg. Volume: 836,092
• PEG Ratio: -0.27
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 16.36
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: 10.81
• 1Y Price Target: $57.00
• Price Target Upside: 12.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 78 Outperform
• Price Target: $58.00 ▲(14.87% Upside)

Terex's overall stock score is driven by strong financial performance and positive corporate events, such as cost-cutting measures and share buybacks. Technical indicators support a positive trend, though valuation suggests the stock is fairly priced. Earnings call insights highlight both strengths and challenges, with a positive outlook for future performance.

Positive Factors

Market Performance

Upgrading to Outperform. TEX stock has lagged for over two years as earnings have cyclically reset following the post-COVID demand peak; there is a path to EPS bottoming in 2025 which in turn should catalyze normal multiple expansion driving the stock in the $60-$75 range.

Operating Margin

Management expects cost absorption-related margin headwind in Aerials to dissipate due to a seasonal pickup in volumes, leading to operating margin improvement.

Revenue Growth

Orders increased over 40% in 1Q25, marking the first quarter in nearly three years above flattish, and will likely continue growing off a low base.

Negative Factors

Interest Rates

MP comprises a collection of different product categories that have been impacted by high interest rates and dealer destocking.

Price Target

The TEX target price has been lowered to reflect lower multiples across the coverage.

Residential Construction

Residential construction spending is moderating and recession fears persist, raising questions around the credibility of the company’s extended backlog.

Terex Business Overview & Revenue Model

Company Description

Terex Corporation (TEX) is a global manufacturer of lifting and material handling solutions, primarily serving the construction, infrastructure, and mining sectors. The company operates through several segments, including Aerial Work Platforms, Material Handling & Port Solutions, and Construction. Terex offers a diverse range of products, including cranes, aerial work platforms, and material processing equipment, known for their durability and innovation.

How the Company Makes Money

Terex generates revenue primarily through the sale of equipment and machinery across its various segments. The company’s key revenue streams include the direct sale of new equipment, aftermarket sales of parts and services, and rental services. Aftermarket services, which include maintenance, repair, and replacement parts, are particularly significant as they provide recurring revenue. Additionally, Terex has established partnerships with distributors and dealers worldwide, enhancing its market reach and sales opportunities. Factors contributing to its earnings include demand for construction and infrastructure development, advancements in technology that improve equipment efficiency, and strategic acquisitions that expand its product offerings and market presence.

Terex Financial Statement Overview

Summary

Terex's financial performance is strong with increasing revenues and robust operational efficiency. Despite slight profitability pressures, improved financial leverage and stable capital structure contribute positively.

Income Statement

Terex has demonstrated a strong revenue growth trajectory, with total revenue increasing from $3.88 billion in 2021 to $5.17 billion in TTM (Trailing-Twelve-Months). The gross profit margin is healthy, though it has seen a slight decline, indicating increased cost pressures. The net profit margin has decreased from previous years, reflecting reduced profitability. However, EBIT and EBITDA margins remain robust, underscoring operational efficiency.

Balance Sheet

The balance sheet shows improved equity with stockholders' equity increasing over time, which enhances financial stability. The debt-to-equity ratio has improved significantly due to reduced total debt, indicating lower financial leverage. Return on equity has decreased, reflecting lower profitability relative to equity. The equity ratio is stable, suggesting a consistent capital structure.

Cash Flow

Operating cash flow has grown over the periods, supporting sufficient cash generation from core operations. The free cash flow has shown volatility but remains positive, indicating good cash management. The operating cash flow to net income ratio suggests efficient cash earnings conversion. The free cash flow to net income ratio is strong, highlighting sound financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.17B	5.13B	5.15B	4.42B	3.89B	3.08B
Gross Profit	964.00M	1.07B	1.18B	871.00M	757.40M	539.30M
EBITDA	490.00M	579.00M	699.00M	463.00M	365.50M	126.60M
Net Income	179.00M	335.00M	518.00M	300.00M	220.90M	-10.60M
Balance Sheet
Total Assets	6.15B	5.73B	3.62B	3.12B	2.86B	3.03B
Cash, Cash Equivalents and Short-Term Investments	374.00M	388.00M	370.70M	304.10M	266.90M	665.00M
Total Debt	2.59B	2.58B	623.20M	775.50M	674.10M	1.17B
Total Liabilities	4.19B	3.90B	1.94B	1.94B	1.75B	2.11B
Stockholders Equity	1.97B	1.83B	1.67B	1.18B	1.11B	921.50M
Cash Flow
Free Cash Flow	236.60M	189.00M	332.10M	151.60M	233.70M	160.90M
Operating Cash Flow	374.40M	326.00M	459.30M	261.20M	293.40M	225.40M
Investing Cash Flow	-2.11B	-2.13B	-114.40M	-154.10M	-102.20M	-38.50M
Financing Cash Flow	1.78B	1.84B	-287.80M	-54.90M	-580.10M	-82.80M

Terex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEX, the sentiment is Positive. The current price of 50.49 is above the 20-day moving average (MA) of 50.24, above the 50-day MA of 49.06, and above the 200-day MA of 45.53, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 54.43 is Neutral, neither overbought nor oversold. The STOCH value of 59.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEX.

Terex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEX	78 Outperform	$3.30B	18.74	9.45%	1.35%	-0.35%	-63.44%
OSK	78 Outperform	$8.87B	13.91	15.52%	1.42%	0.41%	-3.90%
ASTE	71 Outperform	$1.03B	22.62	7.02%	1.15%	1.17%	―
CAT	69 Neutral	$191.04B	20.74	52.73%	1.39%	-4.87%	-10.47%
AGCO	68 Neutral	$8.38B	84.38	2.42%	1.34%	-24.27%	-76.31%
Sector *	63 Neutral	$10.71B	16.25	6.57%	2.09%	2.65%	-16.21%
CNH	56 Neutral	$15.25B	18.55	10.79%	2.05%	-21.70%	-57.68%

Terex Corporate Events

Terex Announces Refinancing Agreement to Cut Costs

On August 12, 2025, Terex Corporation announced a refinancing agreement that re-prices its term loan, reducing the interest rate spread by 25 basis points, which is expected to save approximately $3 million annually in cash interest costs. This move is part of Terex’s strategy to enhance its capital structure efficiency, reflecting positively on its financial operations and potentially benefiting stakeholders by improving financial stability and operational cost-effectiveness.

Terex Announces Q2 2025 Financial Results and Share Buyback

Terex Corporation announced its second quarter 2025 financial results, reporting sales of $1.5 billion and an operating margin of 8.7%, with adjusted earnings per share of $1.49. The company authorized a new $150 million share repurchase program, reflecting confidence in its long-term growth strategy. Despite challenges in the Aerials segment, strong performance in Environmental Solutions and Terex Utilities helped offset these issues. The company’s bookings grew by 19% year-over-year, and it maintained its full-year adjusted EPS outlook. Terex also reported strong liquidity with a cash conversion rate of 108% and returned $75 million to shareholders through dividends and share repurchases.

Terex Schedules Q2 Financial Results Conference Call

On July 17, 2025, Terex Corporation announced it will host a conference call on July 31, 2025, to discuss its second quarter financial results. The call will be led by CEO Simon Meester and CFO Jennifer Kong-Picarello, with the financial results being released prior to the call. This event indicates Terex’s commitment to transparency and engagement with stakeholders, potentially impacting investor relations and market perception.