Terex (TEX) AI Stock Analysis

• Market Cap: $3.54B
• Dividend Yield: 1.26%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 1.45
• Revenue Growth: 4.60%
• EPS Growth: -65.73%
• Country: US
• Employees: 11,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.50
• Shares Outstanding: 65,600,000
• 10 Day Avg. Volume: 1,437,181
• 30 Day Avg. Volume: 1,177,493
• 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: 1.55
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 5.48
• Enterprise Value/Ebitda: 7.62
• 1Y Price Target: $57.00
• Price Target Upside: 5.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 4.91
• Revenue Forecast (FY): $5.42B

• Rating: 71 Outperform
• Price Target: $54.00 ▲(0.09% Upside)

Terex's overall stock score reflects a solid financial performance with strong cash flow and improved leverage, though challenged by declining margins. The transformative merger with REV Group is a significant positive, expected to drive growth and operational efficiency. However, technical indicators suggest caution with potential overbought conditions, and valuation metrics indicate moderate attractiveness.

Positive Factors

Transformative Merger

The merger is expected to unlock $75 million in annual synergies, enhancing financial strength and operational efficiency, benefiting long-term growth.

Strong Cash Flow

Strong cash flow growth indicates robust cash generation ability, supporting reinvestment in the business and shareholder returns.

Revenue Growth

Consistent revenue growth demonstrates expanding market reach and resilience amid macroeconomic challenges, supporting long-term stability.

Negative Factors

Declining Profit Margins

Declining margins indicate pressure on operational efficiency, potentially impacting profitability and requiring strategic adjustments.

Exit of Aerial Segment

Exiting the Aerial segment may limit future growth opportunities in this area, impacting diversification and market presence.

Reduced Return on Equity

Reduced return on equity indicates lower profitability on shareholder investments, potentially affecting investor confidence and capital allocation.

Terex Business Overview & Revenue Model

Company Description

Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. It operates in two segments, Aerial Work Platforms (AWP) and Materials Processing (MP). The AWP segment designs, manufactures, services, and markets aerial work platform equipment, utility equipment, and telehandlers under the Terex and Genie brands. Its products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, scissor lifts, utility equipment, and telehandlers, as well as related components and replacement parts for construction and maintenance of industrial, commercial, institutional, and residential buildings and facilities, utility and telecommunication lines, construction and foundation drilling applications, and other commercial operations, as well as in tree trimming and various infrastructure projects. The MP segment's materials processing and specialty equipment includes crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and related components and replacement parts under the Terex, Powerscreen, Fuchs, EvoQuip, Canica, Cedarapids, CBI, Simplicity, Franna, Terex Ecotec, Finlay, Terex Washing Systems, Terex MPS, Terex Jaques, Terex Advance, ProStack, Terex Bid-Well, MDS, and Terex Recycling Systems brands and business lines. Its products are used in construction, infrastructure, and recycling projects; quarrying and mining, and material handling applications; maintenance applications to lift equipment or material; and landscaping and biomass production industries. The company offers financing solutions to assist customers in the rental, leasing, and acquisition of its products. Terex Corporation was incorporated in 1986 and is based in Norwalk, Connecticut.

How the Company Makes Money

Terex generates revenue through the sale of its equipment and machinery, including both new and used products. Key revenue streams include direct sales to customers in construction, mining, and other industries, as well as rental services through a network of dealers and distributors. Additionally, the company earns income from aftermarket services, including parts sales and maintenance contracts, which provide recurring revenue over the life cycle of the equipment. Terex also engages in strategic partnerships with other manufacturers and suppliers, enhancing its product offerings and market reach, thus contributing to its overall earnings.

Terex Financial Statement Overview

Summary

Terex demonstrates a solid financial position with strong cash flow generation and low leverage, providing a cushion against economic fluctuations. However, declining margins highlight a need for cost management to sustain profitability.

Income Statement

Terex has shown consistent revenue growth with a 3.39% increase in TTM, indicating a positive trajectory. However, margins have decreased compared to previous years, with a TTM net profit margin of 2.92% and EBIT margin of 4.62%, reflecting pressure on profitability. The gross profit margin also declined to 18.71% in TTM, suggesting increased cost pressures.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.006 in TTM, indicating minimal leverage and financial stability. The equity ratio is healthy, and the return on equity is at 8.15%, which, while lower than previous years, still reflects a solid return for shareholders.

Cash Flow

Cash flow performance is robust, with a 17.92% growth in free cash flow in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.32, suggesting efficient cash conversion, although the free cash flow to net income ratio has decreased slightly to 0.68.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.34B	5.13B	5.15B	4.42B	3.89B	3.08B
Gross Profit	1.00B	1.07B	1.18B	871.00M	757.40M	539.30M
EBITDA	719.00M	579.00M	699.00M	463.00M	365.50M	126.60M
Net Income	156.00M	335.00M	518.00M	300.00M	220.90M	-10.60M
Balance Sheet
Total Assets	6.17B	5.73B	3.62B	3.12B	2.86B	3.03B
Cash, Cash Equivalents and Short-Term Investments	509.00M	388.00M	371.00M	304.10M	266.90M	665.00M
Total Debt	2.59B	2.72B	743.00M	864.60M	767.40M	1.28B
Total Liabilities	4.15B	3.90B	1.94B	1.94B	1.75B	2.11B
Stockholders Equity	2.02B	1.83B	1.67B	1.18B	1.11B	921.50M
Cash Flow
Free Cash Flow	279.00M	189.00M	332.10M	151.60M	233.70M	160.90M
Operating Cash Flow	412.00M	326.00M	459.30M	261.20M	293.40M	225.40M
Investing Cash Flow	-2.09B	-2.13B	-114.40M	-154.10M	-102.20M	-38.50M
Financing Cash Flow	1.83B	1.84B	-287.80M	-54.90M	-580.10M	-82.80M

Terex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 53.95 is above the 20-day moving average (MA) of 49.36, above the 50-day MA of 49.52, and above the 200-day MA of 46.62, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 65.65 is Neutral, neither overbought nor oversold. The STOCH value of 81.43 is Negative, 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
CAT	76 Outperform	$269.66B	29.57	46.30%	0.98%	-1.51%	-9.69%
OSK	71 Outperform	$8.25B	12.71	15.42%	1.56%	-2.28%	-0.53%
TEX	71 Outperform	$3.54B	22.88	7.85%	1.26%	4.60%	-65.73%
DE	66 Neutral	$127.26B	25.43	20.61%	1.34%	-11.66%	-27.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AGCO	59 Neutral	$7.89B	21.07	8.69%	1.10%	-20.09%	121.28%
CNH	55 Neutral	$11.98B	20.15	7.77%	2.60%	-18.10%	-65.24%

Terex Corporate Events

Terex Reports Strong Q3 2025 Financial Results

Terex Corporation reported its third-quarter 2025 financial results, highlighting a 14.4% increase in net sales to $1.4 billion compared to the previous year, despite challenges in some markets. The company maintained its full-year EPS outlook, demonstrating resilience amid macroeconomic turbulence and tariff changes. The Environmental Solutions segment showed significant growth, while Aerials and Materials Processing faced declines. Terex generated strong free cash flow of $130 million and returned $87 million to shareholders, underscoring its robust financial position and commitment to shareholder value.

Terex Announces Merger with REV Group

On October 29, 2025, Terex Corporation entered into a merger agreement with REV Group to form a leading specialty equipment manufacturer. The merger aims to create a diversified leader in emergency, waste, utilities, environmental, and materials processing equipment, with expected synergies of $75 million by 2028. Terex plans to exit its Aerials segment, further reducing exposure to cyclical markets. The merger is expected to enhance financial strength, growth profile, and operational efficiency, benefiting shareholders and stakeholders. The transaction is anticipated to close in the first half of 2026, subject to regulatory approvals and shareholder consent.

Terex to Discuss Q3 2025 Financial Results

Terex Corporation announced on October 20, 2025, that it will host a conference call to discuss its third quarter 2025 financial results on October 30, 2025. The call will be led by CEO Simon Meester and CFO Jennifer Kong-Picarello, with financial results available prior to the call. This event is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

Terex Appoints Srikanth Padmanabhan to Board

On October 1, 2025, Terex Corporation announced the appointment of Srikanth Padmanabhan to its Board of Directors, effective December 1, 2025. Padmanabhan, who recently retired from Cummins, Inc. as Executive Vice President and President – Operations, brings over three decades of leadership experience in global business roles. His appointment is expected to enhance the board’s expertise, particularly in driving business growth and value, as highlighted by Terex’s Non-Executive Chairman, David A. Sachs.