Terex (TEX) AI Stock Analysis

• Market Cap: $7.33B
• Dividend Yield: 1.24%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.47
• 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: 114,023,930
• 10 Day Avg. Volume: 2,649,862
• 30 Day Avg. Volume: 1,482,763
• 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: 0.83
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 6.10
• Enterprise Value/Ebitda: 8.49
• 1Y Price Target: $62.70
• Price Target Upside: -2.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $62.00 ▼(-3.50% Downside)

TEX scores in the upper-middle range primarily due to solid financial performance driven by strong and improving cash flow and better leverage. The score is tempered by pressured margins/ROE, mixed near-term technical momentum, and a valuation that is not clearly cheap relative to a modest dividend. Merger-related guidance and completed deal execution provide an additional, but secondary, positive tailwind alongside some integration and transaction-risk considerations.

Positive Factors

Strong free cash flow generation

Sustained FCF growth and a high FCF-to-net income ratio indicate durable cash generation. This underpins reinvestment in products, funds merger integration and synergies, supports debt reduction or shareholder returns, and raises resilience to cyclical revenue swings over the medium term.

Improved leverage profile

A materially improved debt position increases financial flexibility, lowering interest burden and raising capacity to fund capex, M&A, or the REV integration. Stronger leverage metrics reduce refinancing risk and support execution of multi-year operational and strategic plans.

Merger creates scale and diversification

Closing the REV transaction structurally reshapes the business into a larger, more diversified specialty equipment platform. Scale can unlock at least $75M of run-rate synergies, broaden end‑market exposure, and improve pricing and aftermarket opportunities, strengthening medium-term earnings potential.

Negative Factors

Pressure on margins and return on equity

Declining gross, EBIT and EBITDA margins alongside lower ROE point to weakening profitability quality. Structural margin compression reduces reinvestment capacity and shareholder returns, making it harder to fund growth, hit targeted adjusted‑EBITDA levels, and sustain long‑term return targets.

Merger litigation and integration execution risk

Active litigation and the need to supplement disclosures create execution risk: potential delays, higher legal and integration costs, and management distraction. These factors can slow Aerial divestiture, compress expected synergy timing, and increase uncertainty around realizing projected benefits.

Exposure to cyclical end markets

A heavy footprint in construction, infrastructure and mining embeds cyclicality into revenue and utilization. Even with diversification from the REV deal, persistent downturns in these sectors can materially reduce equipment demand, aftermarket sales and margin stability over multiple quarters.

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

Overall fundamentals are solid, led by strong cash generation (free cash flow up 18.22% TTM and healthy cash conversion). Leverage has improved via a better debt-to-equity profile, but profitability quality is mixed with declining gross/EBIT/EBITDA margins and lower ROE (8.15%).

Income Statement

Terex has shown consistent revenue growth, with a 3.39% increase in TTM. However, margins have declined compared to previous years, with the TTM gross profit margin at 18.71% and net profit margin at 2.92%. The EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM, indicating better leverage management. However, the return on equity has decreased to 8.15%, suggesting reduced profitability on shareholder investments. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Terex has demonstrated strong free cash flow growth of 18.22% in the TTM, with a solid free cash flow to net income ratio of 67.72%. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income.

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: 64.25
• 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 64.25 is above the 20-day moving average (MA) of 60.02, above the 50-day MA of 54.77, and above the 200-day MA of 49.77, indicating a bullish trend. The MACD of 1.67 indicates Negative momentum. The RSI at 67.51 is Neutral, neither overbought nor oversold. The STOCH value of 75.83 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	$323.76B	37.37	43.54%	0.98%	-1.51%	-9.69%
OSK	73 Outperform	$10.56B	15.90	14.90%	1.56%	-2.28%	-0.53%
TEX	67 Neutral	$7.33B	26.79	7.85%	1.24%	4.60%	-65.73%
DE	66 Neutral	$153.77B	29.46	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	$9.08B	23.21	8.69%	1.10%	-20.09%	121.28%
CNH	55 Neutral	$14.91B	23.52	7.77%	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.