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Terex (TEX)
NYSE:TEX

Terex (TEX) AI Stock Analysis

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TE

Terex

(NYSE:TEX)

Rating:75Outperform
Price Target:
Terex's overall stock score reflects a strong financial foundation with a solid balance sheet and cash flow, offset by mixed technical indicators. The company's attractive valuation and positive developments from its earnings call, such as strong Environmental Solutions performance and a growing backlog, are tempered by risks from tariff impacts and margin pressures. The balance of these factors results in a moderately positive but cautious outlook.
Positive Factors
Earnings Growth
Upgrading to Outperform due to expected EPS bottoming in 2025, which should catalyze normal multiple expansion driving the stock in the $60-$75 range.
Order Growth
Orders increased over 40% in the first quarter and will likely continue growing off a low base, indicating strong demand.
Negative Factors
Margin Decline
Terex reported a soft finish to 2024 on legacy units with significant declines in margins and free cash flow slightly missing expectations.
Sales Decline
Aerial EBITDA fell 64% year over year on a 13% sales decline, impacted by aggressive production cuts and an unfavorable mix.

Terex (TEX) vs. SPDR S&P 500 ETF (SPY)

Terex Business Overview & Revenue Model

Company DescriptionTerex Corporation (TEX) is a global manufacturer of lifting and material processing products and services, primarily serving the construction, infrastructure, quarrying, mining, shipping, transportation, refining, energy, and utility industries. The company's core products include aerial work platforms, telehandlers, utility equipment, materials processing machinery, and tower cranes. Terex operates through two main business segments: Aerial Work Platforms (AWP) and Materials Processing (MP), providing innovative solutions to enhance operational productivity and safety for its clients worldwide.
How the Company Makes MoneyTerex Corporation generates revenue primarily through the sale and leasing of its equipment, as well as providing aftermarket parts and services. The Aerial Work Platforms segment accounts for a significant portion of the company's revenue, offering products such as scissor lifts, boom lifts, and telehandlers to construction and industrial markets. The Materials Processing segment contributes to the company's earnings by selling crushers, screening equipment, and washing systems used in mining, quarrying, and recycling operations. Additionally, Terex benefits from maintenance services and the sale of spare parts, which provide recurring revenue streams. Strategic partnerships and a strong global distribution network further enhance the company's ability to capture market share and drive sales growth.

Terex Earnings Call Summary

Earnings Call Date:May 02, 2025
(Q1-2025)
|
% Change Since: 29.73%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
Terex's earnings call reflects a company managing well amid challenges. Strong performance in Environmental Solutions and increased backlog are positive indicators, but the impact of tariffs and uncertainties in Aerials and MP margins pose significant risks.
Q1-2025 Updates
Positive Updates
Strong Environmental Solutions Performance
Environmental Solutions accounted for 1/3 of global sales with a 19.4% operating margin, showing strong execution and contributing significantly to overall financial performance.
Increased Backlog
The company reported a backlog of $2.6 billion, up 13% sequentially, with a book-to-bill ratio of 124%, indicating strong demand.
Resilient Portfolio
Terex's diversified portfolio includes segments like waste and recycling (25% of revenue) and infrastructure (20% of revenue), characterized by low cyclicality and steady growth.
Successful Integration of ESG
The integration of ESG is on track, with expectations to deliver over $25 million in operational run rate synergies by the end of 2026.
Negative Updates
Aerials and MP Margin Pressure
Operating margins were impacted by production cuts in Aerials and MP, with a decline of 760 basis points in organic operating margin, primarily due to volume reductions and unfavorable absorption.
Tariff Impact Concerns
The company anticipates a $0.40 per share impact from tariffs, particularly affecting raw materials from China, and includes assumed tariff easing which might not materialize.
Macroeconomic and Geopolitical Uncertainties
The company is operating in a challenging environment with macroeconomic variables and geopolitical uncertainties, which could negatively impact results.
Company Guidance
During the Terex First Quarter 2025 Results Conference Call, the company provided guidance on various financial metrics and strategic initiatives. The company reported earnings per share (EPS) of $0.83 and sales of $1.2 billion, with a return on invested capital at 15%. Terex maintained its full-year EPS outlook of $4.70 to $5.10, even amid expected tariff impacts. Terex anticipates a significant improvement in free cash flow, projecting between $300 million and $350 million for 2025. In terms of sales, the company expects low year-over-year declines in the Aerials and Materials Processing (MP) segments, while Environmental Solutions is projected to grow slightly better than previous guidance. The Environmental Solutions segment accounted for one-third of global sales in Q1, achieving a 19.4% operating margin. Overall, the company continues to focus on mitigating tariff impacts, maintaining price/cost neutrality, and leveraging synergies from its ESG integration, with expected operational run-rate synergies exceeding $25 million by the end of 2026.

Terex Financial Statement Overview

Summary
Terex exhibits a strong financial profile characterized by consistent revenue growth, solid profitability, and robust cash flows. The company's balance sheet has improved with lower debt levels and a strong equity position, reflecting prudent financial management. While there are minor challenges such as slight declines in revenue and EBIT, the overall financial health remains resilient, providing a stable foundation for future growth.
Income Statement
75
Positive
Terex has shown consistent revenue growth over the past years, with a TTM (Trailing-Twelve-Months) revenue of $5.06 billion. However, there was a slight decline compared to the previous annual period. The gross profit margin remains strong at approximately 19.8%, though it has slightly decreased from previous years. Net profit margin for the TTM is about 4.9%, demonstrating profitability but indicating some pressure on net income. EBIT and EBITDA margins are healthy, around 8.6% and 9.6% respectively, suggesting efficient operations despite declining EBIT figures.
Balance Sheet
70
Positive
The balance sheet reflects a solid equity base with stockholders' equity at $1.84 billion, resulting in a favorable equity ratio of 31.6%. The debt-to-equity ratio has improved significantly due to a reduction in total debt, reflecting prudent financial management. Return on equity for the TTM stands at about 13.4%, indicating reasonable returns for shareholders. Overall, the balance sheet shows stability and a conservative financial structure.
Cash Flow
80
Positive
Terex has demonstrated strong operating cash flow, with a TTM figure of $338.9 million, supporting positive free cash flow of $200.9 million. The company has improved its free cash flow to net income ratio, reflecting robust cash generation capabilities. The operating cash flow to net income ratio is approximately 1.37, indicating efficient conversion of income into cash. These metrics highlight a solid cash flow position, enhancing financial flexibility.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.06B5.13B5.15B4.42B3.89B3.08B
Gross Profit
1.00B1.07B1.18B871.20M757.40M539.30M
EBIT
437.90M526.00M636.50M420.00M328.00M68.40M
EBITDA
523.00M582.00M700.20M468.40M377.60M120.60M
Net Income Common Stockholders
247.70M335.00M518.00M300.00M220.90M9.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
298.00M388.00M370.70M304.10M266.90M665.00M
Total Assets
5.84B5.73B3.62B3.12B2.86B3.03B
Total Debt
2.59B2.58B623.20M775.50M674.10M1.17B
Net Debt
2.29B2.20B252.50M471.40M407.20M508.80M
Total Liabilities
4.00B3.90B1.94B1.94B1.75B2.11B
Stockholders Equity
1.84B1.83B1.67B1.18B1.11B921.50M
Cash FlowFree Cash Flow
200.90M189.00M332.10M151.60M233.70M160.90M
Operating Cash Flow
338.90M326.00M459.30M261.20M293.40M225.40M
Investing Cash Flow
-2.12B-2.13B-114.40M-154.10M-102.20M-38.50M
Financing Cash Flow
1.72B1.84B-287.80M-54.90M-580.10M-82.80M

Terex Technical Analysis

Technical Analysis Sentiment
Positive
Last Price47.22
Price Trends
50DMA
39.27
Positive
100DMA
41.86
Positive
200DMA
47.08
Positive
Market Momentum
MACD
2.49
Negative
RSI
64.98
Neutral
STOCH
42.62
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 47.22 is above the 20-day moving average (MA) of 43.06, above the 50-day MA of 39.27, and above the 200-day MA of 47.08, indicating a bullish trend. The MACD of 2.49 indicates Negative momentum. The RSI at 64.98 is Neutral, neither overbought nor oversold. The STOCH value of 42.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEX.

Terex Risk Analysis

Terex disclosed 26 risk factors in its most recent earnings report. Terex reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may be unable to successfully integrate acquired businesses, including ESG. We may not realize the anticipated benefits of such acquisitions, including the acquisition of ESG. Q4, 2024
2.
Issues related to the development, deployment and use of artificial intelligence technologies in our business operations, information systems, products and services, could result in reputational harm, financial harm, regulatory action or legal liability, and any failure to adapt to such technological developments or industry trends could adversely affect the competitiveness of our business or financial results. Q4, 2024
3.
The imposition of new or increased international tariffs may have a material adverse effect on our business, financial condition and results of operations. Q4, 2024

Terex Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
OSOSK
76
Outperform
$6.51B10.8015.24%1.93%5.95%-10.59%
TETEX
75
Outperform
$3.10B12.8713.85%1.52%-2.78%-51.72%
CACAT
73
Outperform
$161.50B16.7355.67%1.64%-5.58%-7.37%
66
Neutral
$886.10M58.922.33%1.34%1.99%-39.02%
CNCNH
66
Neutral
$16.18B15.5913.26%3.68%-21.99%-52.11%
65
Neutral
$4.41B12.065.22%249.80%4.09%-12.16%
55
Neutral
$7.49B46.40-13.60%1.15%-23.02%-152.78%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TEX
Terex
47.22
-10.16
-17.71%
AGCO
Agco
101.42
-1.94
-1.88%
ASTE
Astec
39.92
8.64
27.62%
CAT
Caterpillar
351.51
18.81
5.65%
CNH
CNH Industrial
12.95
2.63
25.48%
OSK
Oshkosh
101.06
-7.90
-7.25%

Terex Corporate Events

Executive/Board ChangesShareholder MeetingsRegulatory Filings and Compliance
Terex Updates Bylaws Following Board Approval
Neutral
May 16, 2025

On May 14, 2025, Terex Corporation’s Board of Directors approved significant amendments to its Bylaws, effective immediately. These changes include updates to procedural mechanics for stockholder nominations, proxy card requirements, and alignment with Delaware General Corporation Law. Additionally, the company’s Annual Meeting on the same day resulted in the election of directors, approval of executive compensation, and ratification of KPMG LLP as the independent auditor for 2025.

The most recent analyst rating on (TEX) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Terex stock, see the TEX Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Terex Reports Q1 2025 Financial Results and Outlook
Neutral
May 2, 2025

Terex reported its first quarter 2025 financial results with sales of $1.2 billion and an operating margin of 5.6%, with adjusted earnings per share at $0.83. The company’s Environmental Services segment, bolstered by the acquisition of the Environmental Solutions Group, contributed significantly to revenue, accounting for about one-third of total sales. Despite a decline in net sales compared to the previous year, Terex maintained its full-year EPS outlook, emphasizing its strategic focus on U.S. production to mitigate geopolitical risks. The company also highlighted its strong liquidity position and continued capital investments to support future growth.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.