Terex (TEX) AI Stock Analysis

• Market Cap: $3.02B
• Dividend Yield: 1.48%
• Average Volume (3M): 870.47K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.63
• Revenue Growth: -2.78%
• EPS Growth: -51.72%
• Country: US
• Employees: 11,400
• Sector: Industrials
• Sector Strength: 85
• Industry: Agricultural - Machinery
• EPS (TTM): 0.83
• Shares Outstanding: 65,600,000
• 10 Day Avg. Volume: 779,017
• 30 Day Avg. Volume: 870,469
• PEG Ratio: 0.11
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.83
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 1.39
• 1Y Price Target: $48.61
• Price Target Upside: 5.67% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: $51.00 ▲(10.87%Upside)

Terex's overall score reflects a solid financial foundation and strategic resilience against external challenges. The company's strong earnings call performance and reasonable valuation further support its stability. However, technical indicators suggest cautious market sentiment, and macroeconomic uncertainties pose potential risks.

Positive Factors

Growth Potential

The Genie business secured additional 2025 commitments from a large customer, suggesting potential for future growth.

Operating Margin Improvement

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

Stability and Tailwinds

Environmental Solutions segment provides stability. The relative demand stability of ESG, along with the secular tailwinds for the Utility business, should reduce overall earnings cyclicality.

Negative Factors

Cautious Outlook

Guidance for 2025 EPS is below consensus, indicating some caution for the company's future performance.

Market Challenges

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

Weak Performance

Terex reported a soft finish to 2024 on legacy units with significant declines in margins and free cash flow slightly missing expectations.

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 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 Financial Statement Overview

Summary

Terex shows strong financial health with consistent revenue growth, solid profitability, and robust cash flows. The balance sheet reflects prudent financial management with improved debt levels and a strong equity position. Minor challenges include slight declines in revenue and EBIT.

Income Statement

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.70B	5.13B	5.15B	4.42B	3.89B	3.08B
	Gross Profit
943.00M	1.07B	1.18B	871.20M	757.40M	539.30M
	EBIT
358.80M	526.00M	636.50M	420.00M	328.00M	68.40M
	EBITDA
341.20M	582.00M	700.20M	468.40M	377.60M	120.60M
	Net Income Common Stockholders
-3.10M	335.00M	518.00M	300.00M	220.90M	9.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
298.00M	388.00M	370.70M	304.10M	266.90M	665.00M
	Total Assets
5.84B	5.73B	3.62B	3.12B	2.86B	3.03B
	Total Debt
2.59B	2.58B	623.20M	775.50M	674.10M	1.17B
	Net Debt
2.29B	2.20B	252.50M	471.40M	407.20M	508.80M
	Total Liabilities
4.00B	3.90B	1.94B	1.94B	1.75B	2.11B
	Stockholders Equity
1.84B	1.83B	1.67B	1.18B	1.11B	921.50M
Cash Flow		Free Cash Flow
76.20M	189.00M	332.10M	151.60M	233.70M	160.90M
	Operating Cash Flow
192.20M	326.00M	459.30M	261.20M	293.40M	225.40M
	Investing Cash Flow
88.60M	-2.13B	-114.40M	-154.10M	-102.20M	-38.50M
	Financing Cash Flow
-112.00M	1.84B	-287.80M	-54.90M	-580.10M	-82.80M

Terex Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 46.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEX, the sentiment is Neutral. The current price of 46 is below the 20-day moving average (MA) of 46.37, above the 50-day MA of 40.92, and below the 200-day MA of 46.42, indicating a neutral trend. The MACD of 1.45 indicates Positive momentum. The RSI at 54.41 is Neutral, neither overbought nor oversold. The STOCH value of 67.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TEX.

Terex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	78 Outperform	$167.93B	17.40	55.67%	1.58%	-5.58%	-7.37%
OSK	77 Outperform	$7.14B	11.86	15.24%	1.84%	5.95%	-10.59%
TEX	74 Outperform	$3.02B	12.54	13.85%	1.48%	-2.78%	-51.72%
ASTE	68 Neutral	$915.82M	60.89	2.33%	1.30%	1.99%	-39.02%
CNH	66 Neutral	$15.71B	15.13	13.26%	1.99%	-21.99%	-52.11%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
AGCO	55 Neutral	$7.50B	46.40	-13.60%	1.15%	-23.02%	-152.78%

Terex Corporate Events

Terex Updates Bylaws Following Board Approval

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.

Terex Reports Q1 2025 Financial Results and Outlook

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.