Terex Corporation (TEX)
NYSE:TEX
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Terex
(NYSE:TEX)
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Rating:67Neutral
Price Target:
$63.00
â–²(7.66% Upside)
Action:ReiteratedDate: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
Improving Free Cash Flow
Strong and improving free cash flow provides durable financial flexibility: it funds capex for automation, supports debt paydown or synergy-funded integration, underpins shareholder returns, and cushions cyclical demand swings given the capital-intensive equipment business model.
Negative Factors
Elevated Leverage
Materially higher leverage reduces financial flexibility and raises refinancing/interest risk in a capital goods business with cyclic revenues. Elevated debt limits ability to invest during downturns, increases sensitivity to higher rates, and amplifies execution risk on merger integration.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Free Cash Flow
Strong and improving free cash flow provides durable financial flexibility: it funds capex for automation, supports debt paydown or synergy-funded integration, underpins shareholder returns, and cushions cyclical demand swings given the capital-intensive equipment business model.
Read all positive factors
Terex (TEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.65B
Dividend Yield1.24%
Average Volume (3M)1.50M
Price to Earnings (P/E)15.9
Beta (1Y)1.45
Revenue Growth4.60%
EPS Growth-65.73%
CountryUS
Employees11,400
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)1.12
Shares Outstanding113,700,000
10 Day Avg. Volume1,373,169
30 Day Avg. Volume1,498,106
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)1.68
Price to Sales (P/S)0.65
P/FCF Ratio10.91
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue1.10
Enterprise Value/Gross Profit5.67
Enterprise Value/Ebitda9.34
Forecast
1Y Price Target
$76.31Price Target Upside30.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)4.87
Revenue Forecast (FY)$7.92B
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, a...
How the Company Makes Money
Terex makes money mainly by selling new equipment and by generating recurring aftermarket revenue tied to its installed base. (1) Equipment sales: The largest revenue driver is the sale of capital equipment across its two main segments—Materials P...
Terex Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
Overall the call struck a constructive and positive tone: management highlighted a successful merger with REV Group that meaningfully strengthens scale and recurring earnings, material synergies ($75M target) and immediate integration progress, strong bookings and backlog across segments, improved free cash flow and cash conversion, and a pro forma 2026 outlook with revenue and EBITDA growth. Key challenges remain—legacy sales declines, tariff impacts (notably on Aerials), higher interest expense from recent acquisitions, modest near-term EPS dilution, and commodity/timing risks tied to long specialty vehicle backlogs—but management presented concrete mitigation plans (synergies, productivity, pricing, capacity expansion, hedges). On balance, the positives around strategic transformation, cash generation, bookings momentum and guided pro forma growth outweigh the manageable headwinds, assuming continued execution.Positive Updates
Completed Merger with REV Group
Closed merger with REV Group, adding ~ $2.5 billion of revenue and ~$230 million of adjusted EBITDA (most from low-cyclic end markets). Created a new specialty vehicle segment and expect $75 million run-rate synergies (roughly half to be delivered within 12 months and full amount by 2028). Included ~$28 million of synergies in the 2026 EBITDA outlook.
Negative Updates
Legacy Sales Decline and Segment Volume Weakness
Legacy Terex sales declined 11% for the full year 2025. Full-year operating margin down 90 basis points vs. 2024 due to lower volumes in Aerials and MP and higher tariff costs. MP full-year sales declined 11.6% YoY.
Read all updates
Q4-2025 Updates
Positive
Negative
Completed Merger with REV Group
Closed merger with REV Group, adding ~ $2.5 billion of revenue and ~$230 million of adjusted EBITDA (most from low-cyclic end markets). Created a new specialty vehicle segment and expect $75 million run-rate synergies (roughly half to be delivered within 12 months and full amount by 2028). Included ~$28 million of synergies in the 2026 EBITDA outlook.
Read all positive updates
Company Guidance
Management guided 2026 on a pro forma basis to roughly 5% sales growth to $7.5–$8.1 billion and pro forma EBITDA up about $100 million to $930–$1,000 million (≈12.4% EBITDA margin at the midpoint), which includes roughly $28 million of synergies in 2026 toward a $75 million run‑rate by 2028; interest and other expense is expected at ≈$190 million (based on average debt of ~$2.7 billion), the effective tax rate ≈21%, EPS $4.50–$5.00 (modestly dilutive by ~3% with a weighted‑average share count of ~111 million / full‑year ~115 million), about 15% of full‑year EPS in Q1, and anticipated cash conversion of 80–90% of net income (including transaction and synergy costs) with net leverage improving over the year. Segment outlooks: Environmental Solutions mid‑single‑digit growth (Q4 ES sales $428M, FY ES sales ~$1.7B, Q4 ES op margin 18.5% / FY 18.8%, ES backlog ~$1.1B; ESG expected roughly flat), Materials Processing to inflect to high‑single‑digit growth (Q4 MP sales $428M, Q4 MP margin 13.7%, FY MP down 11.6% but backlog +$71M), Specialty Vehicles (new reportable segment) to grow high‑single‑digits from a pro‑forma ~$2.2B with roughly two years of backlog and meaningful margin improvement versus a prior‑year pro‑forma ~12.5% EBITDA margin, and Aerials to be roughly flat in sales and margins (Q4 bookings ~$971M, backlog ~$906M).Terex Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
52
Neutral
Cash Flow
65
Positive
| 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
Negative
58.52
Price Trends
62.44
Negative
56.99
Positive
53.76
Positive
Market Momentum
-1.36
Negative
45.24
Neutral
65.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEX, the sentiment is Negative. The current price of 58.52 is below the 20-day moving average (MA) of 59.55, below the 50-day MA of 62.44, and above the 200-day MA of 53.76, indicating a neutral trend. The MACD of -1.36 indicates Negative momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of 65.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TEX.
Terex Risk Analysis
Terex disclosed 31 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 0 New Risks
Terex Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $333.71B | 30.12 | 45.10% | 0.98% | -1.51% | -9.69% | |
73 Outperform | $155.50B | 54.83 | 18.93% | 1.34% | -11.66% | -27.80% | |
67 Neutral | $6.65B | 15.89 | 11.16% | 1.24% | 4.60% | -65.73% | |
66 Neutral | $8.30B | 10.68 | 17.36% | 1.10% | -20.09% | 121.28% | |
66 Neutral | $9.23B | 12.46 | 14.57% | 1.56% | -2.28% | -0.53% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $13.22B | 22.56 | 6.58% | 2.67% | -18.10% | -65.24% |
* Industrials Sector Average
TEX
Terex
59.70
27.50
85.40%
AGCO
Agco
114.43
36.97
47.72%
CAT
Caterpillar
721.24
444.98
161.07%
CNH
CNH Industrial
10.73
0.12
1.13%
DE
Deere
575.09
157.22
37.62%
OSK
Oshkosh
148.00
67.70
84.31%
Terex Corporate Events
Business Operations and StrategyExecutive/Board Changes
Terex Appoints New Chief Accounting Officer Post-REV Merger
Neutral
Mar 6, 2026
In connection with the post-merger integration of REV Group, Inc., Terex Corporation announced that Stephen Johnston stepped down as Vice President, Chief Accounting Officer and Controller effective March 2, 2026, though he will remain for a trans...
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesM&A Transactions
Terex Completes REV Group Merger, Expands Board Governance
Positive
Feb 2, 2026
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 bein...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Terex Shareholders Overwhelmingly Approve Merger With REV
Positive
Jan 29, 2026
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 i...
Business Operations and StrategyFinancial Disclosures
Terex Schedules Call to Review 2025 Year-End Results
Positive
Jan 29, 2026
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 Jennife...
Legal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Terex, REV Group supplement proxy amid merger litigation
Negative
Jan 20, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.