Terex (TEX) AI Stock Analysis

• Market Cap: $7.83B
• Dividend Yield: 1.24%
• Average Volume (3M): 2.38M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 1.42
• Revenue Growth: 4.60%
• EPS Growth: -65.73%
• Country: US
• Employees: 11,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.12
• Shares Outstanding: 113,700,000
• 10 Day Avg. Volume: 2,648,093
• 30 Day Avg. Volume: 2,382,090
• PEG Ratio: -0.48
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 10.91
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 6.24
• Enterprise Value/Ebitda: 10.28
• 1Y Price Target: $77.92
• Price Target Upside: 13.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 4.98
• Revenue Forecast (FY): $7.45B

• Rating: 67 Neutral
• Price Target: $71.00 ▲(3.12% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven most by a mixed financial profile—improving free cash flow but compressed margins and higher leverage. Technicals are supportive with a clear uptrend, while valuation is only moderate with a low dividend yield. Earnings-call guidance and merger synergies are positives, partially offset by tariffs, higher interest expense, and integration/execution risks.

Positive Factors

Improved free cash flow

Material FCF improvement and very strong cash conversion in 2025 indicate the business can self-fund capex, support integration costs and synergies, and de-lever over time. Durable cash generation strengthens financial flexibility and underpins longer-term capital allocation.

Completed REV merger and synergies

The REV acquisition materially diversifies revenue into specialty vehicles and increases scale. Planned synergies and governance integration should boost recurring earnings and margin resilience if execution holds, improving structural earnings mix over multiple years.

Strong bookings & backlog

High bookings and enlarged backlog provide multi‑quarter revenue visibility, smoothing cyclicality and supporting production planning. This backlog underpins near‑term revenue and cash flow conversion, improving predictability for operations and capex deployment.

Negative Factors

Elevated leverage

materially higher leverage reduces financial flexibility and increases refinancing and interest risk. With elevated debt, the company has less buffer for cyclical downturns, making consistent deleveraging and cash‑flow conversion crucial to sustain investment and shareholder returns.

Compressed profit margins

Steady margin erosion reflects pressure from lower volumes, mix shifts and higher costs. Persistently lower margins reduce return on capital and the company's ability to absorb shocks, making long‑term profitability and ROE recovery dependent on pricing, productivity, and synergy delivery.

Tariff and commodity exposure

Structural tariff and raw‑material risks impair competitiveness and directly hit low‑margin Aerials. Even with partial hedging, sustained or expanding trade measures and steel cost volatility can depress margins and force price increases that may harm demand in key markets.

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

Solid multi-year recovery and improved free cash flow in 2025, but profitability has cooled meaningfully since 2023 and leverage has increased sharply (higher debt-to-equity), reducing flexibility as returns decline.

Income Statement

Revenue has grown meaningfully versus 2020, with solid expansion in profitability through 2023. However, profitability has cooled recently: net margin fell from about 10.1% (2023) to 6.5% (2024) and ~4.1% (2025), and operating profitability also stepped down, suggesting weaker pricing, mix, or cost pressure despite modest revenue growth in 2025.

Balance Sheet

Leverage has increased materially over the past two years: debt-to-equity moved from ~0.44 (2023) to ~1.48 (2024) and ~1.23 (2025). Equity has grown, but the higher debt load raises financial risk and reduces flexibility, particularly as returns on equity have declined from very strong levels in 2022–2023 to ~10.5% in 2025.

Cash Flow

Cash generation is positive and improved in 2025, with free cash flow rising to ~$322M (up from ~$189M in 2024). Free cash flow consistently covers a large portion of earnings (roughly 58%–80% over the period), but cash conversion is not consistently strong relative to profitability and has fluctuated year to year, indicating some working-capital or cycle sensitivity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.42B	5.13B	5.15B	4.42B	3.89B
Gross Profit	1.05B	1.07B	1.18B	871.00M	757.40M
EBITDA	633.00M	579.00M	699.00M	463.00M	365.50M
Net Income	221.00M	335.00M	518.00M	300.00M	220.90M
Balance Sheet
Total Assets	6.14B	5.73B	3.62B	3.12B	2.86B
Cash, Cash Equivalents and Short-Term Investments	772.00M	388.00M	371.00M	304.10M	266.90M
Total Debt	2.81B	2.72B	743.00M	864.60M	767.40M
Total Liabilities	4.04B	3.90B	1.94B	1.94B	1.75B
Stockholders Equity	2.10B	1.83B	1.67B	1.18B	1.11B
Cash Flow
Free Cash Flow	322.00M	189.00M	332.10M	151.60M	233.70M
Operating Cash Flow	440.00M	326.00M	459.30M	261.20M	293.40M
Investing Cash Flow	32.00M	-2.13B	-114.40M	-154.10M	-102.20M
Financing Cash Flow	-123.00M	1.84B	-287.80M	-54.90M	-580.10M

Terex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.85
• 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 68.85 is above the 20-day moving average (MA) of 64.06, above the 50-day MA of 59.62, and above the 200-day MA of 51.72, indicating a bullish trend. The MACD of 2.87 indicates Negative momentum. The RSI at 61.97 is Neutral, neither overbought nor oversold. The STOCH value of 70.20 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
CAT	75 Outperform	$357.45B	40.22	43.54%	0.98%	-1.51%	-9.69%
OSK	73 Outperform	$11.13B	17.66	14.90%	1.56%	-2.28%	-0.53%
DE	68 Neutral	$174.72B	36.47	19.74%	1.34%	-11.66%	-27.80%
TEX	67 Neutral	$7.83B	20.30	11.26%	1.24%	4.60%	-65.73%
AGCO	64 Neutral	$9.84B	13.84	18.13%	1.10%	-20.09%	121.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CNH	59 Neutral	$15.89B	31.22	6.61%	2.67%	-18.10%	-65.24%

Terex Corporate Events

Terex Completes REV Group Merger, Expands Board Governance

On February 2, 2026, Terex completed its previously announced merger with REV Group, issuing Terex stock and cash as consideration for REV shares, converting REV equity awards into Terex awards and restricted cash, and resulting in REV shares being delisted from the New York Stock Exchange as the combined business continues under the Terex ticker. The transaction creates a larger, more diversified specialty equipment manufacturer that management says will benefit from $75 million of run-rate synergies by 2028 and a stronger free cash flow and leverage profile; it also reshapes Terex’s board, expanding it to 12 members, with two long-serving directors resigning (one moving to a director emeritus role) and five former REV directors joining as independent directors on key committees, signaling an integration that brings REV’s leadership directly into Terex’s governance structure.

The most recent analyst rating on (TEX) stock is a Hold with a $64.00 price target. To see the full list of analyst forecasts on Terex stock, see the TEX Stock Forecast page.

Terex Shareholders Overwhelmingly Approve Merger With REV

On January 28, 2026, Terex and REV Group reported that their respective stockholders had overwhelmingly approved the merger between the two companies at special meetings held the same day, with more than 95% of Terex votes cast backing the stock issuance needed for the deal and over 80% of REV’s outstanding shares voting in favor of the merger. With all required shareholder approvals now secured and a strong mandate from investors, the companies said they expect to close the transaction in the first week of February 2026, positioning the combined business as a more diversified specialty equipment and vehicle manufacturer with a broader portfolio, enhanced financial flexibility, and anticipated synergies that management believes will create long-term value for shareholders, employees and customers.

The most recent analyst rating on (TEX) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Terex stock, see the TEX Stock Forecast page.

Terex Schedules Call to Review 2025 Year-End Results

On January 28, 2026, Terex Corporation announced it would host a conference call on February 11, 2026, at 8:30 a.m. Eastern Time to review its fourth quarter and year-end 2025 financial results, with President and CEO Simon Meester and CFO Jennifer Kong-Picarello leading the discussion. The company said it would release the financial results earlier that morning and make both the live webcast and a replay publicly accessible, signaling continued transparency and ongoing engagement with investors and other stakeholders around its financial performance and strategic progress.

The most recent analyst rating on (TEX) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on Terex stock, see the TEX Stock Forecast page.

Terex, REV Group supplement proxy amid merger litigation

On October 29, 2025, Terex Corporation entered into a merger agreement with REV Group that envisions an all-stock combination following the divestiture of Terex’s Aerials business, with Terex shareholders to own 61.5% and REV shareholders 38.5% of the combined company and Terex CEO John L. Garrison Jr.’s successor Simon Meester slated to lead the enlarged group. Since Terex filed its definitive joint proxy statement/prospectus on December 23, 2025 for a January 28, 2026 virtual special meeting to approve, among other matters, the Terex stock issuance for the transaction, several shareholder lawsuits and demand letters have challenged the adequacy of the deal disclosures and sought to delay or block the mergers, prompting Terex and REV, while denying any wrongdoing, to voluntarily supplement their proxy materials with additional detail on deal negotiations, valuation work by Barclays and J.P. Morgan, expected synergies and standalone financial projections, without changing the agreed consideration or meeting timetable, in an effort to reduce litigation risk and keep the transaction on track for completion.

The most recent analyst rating on (TEX) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Terex stock, see the TEX Stock Forecast page.