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Terex
(NYSE:TEX)
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Rating:66Neutral
Price Target:
$68.00
â–¼(-2.62% Downside)
Action:Reiterated
Date:08/01/26
TEX scores a 66 driven primarily by solid financial momentum in revenue and free cash flow, partially offset by a sharp step-down in profitability and mixed balance sheet signals. Valuation is a major positive (very low P/E), while technicals are mildly negative in the near term (below 20/50-day averages). The earnings call adds support via reaffirmed guidance, strong backlog/bookings, and synergy execution, tempered by tariff pressure and dilution.
Positive Factors
Backlog & Bookings
A large, multi-segment backlog and >1.0 book-to-bill provide durable revenue visibility across cycles. That forward order book smooths near-term demand volatility, supports factory utilization and underpins multi-quarter revenue conversion as integrations and capacity ramps complete.
Negative Factors
Margin Erosion
A sharp, persistent decline in net margins signals structural cost or mix pressure that can impair reinvestment capacity and returns. Tariffs, integration and commodity/freight inflation have compressed profitability, making sustainable margin recovery essential for long-term ROIC improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog & Bookings
A large, multi-segment backlog and >1.0 book-to-bill provide durable revenue visibility across cycles. That forward order book smooths near-term demand volatility, supports factory utilization and underpins multi-quarter revenue conversion as integrations and capacity ramps complete.
Read all positive factors
Terex Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows the profit generated by each business unit after operating costs, highlighting which segments drive Terex’s margins and where management is most effectively controlling costs. Helps you spot high‑margin businesses, evaluate operational strength, and identify segments that could amplify gains or drag results in a downturn.
Shows the profit generated by each business unit after operating costs, highlighting which segments drive Terex’s margins and where management is most effectively controlling costs. Helps you spot high‑margin businesses, evaluate operational strength, and identify segments that could amplify gains or drag results in a downturn.
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The Fly
The FlyTerex (TEX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.80B
Dividend Yield1.03%
Average Volume (3M)1.42M
Price to Earnings (P/E)33.3
Beta (1Y)1.33
Revenue Growth29.17%
EPS Growth-27.70%
CountryUS
Employees10,700
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.99
Shares Outstanding114,300,000
10 Day Avg. Volume1,195,388
30 Day Avg. Volume1,424,043
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$80.17Price Target Upside14.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)5.02
Revenue Forecast (FY)$8.12B
Terex Business Overview & Revenue Model
Company Description
Operating globally, Terex Corporation specializes in the production and distribution of aerial work platforms and a diverse range of materials processing equipment. Its operations are structured into two primary divisions: Aerial Work Platforms (A...
How the Company Makes Money
Terex makes money primarily by selling capital equipment and by providing parts and services to support the installed base of its machines. The largest revenue driver is equipment sales across its operating segments: (1) Materials Processing, whic...
Terex Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call showed strong operational momentum: double-digit pro forma/top-line growth, segment-level margin expansion (notably in Materials Processing and Specialty Vehicles), robust bookings and a $7.1 billion backlog. Integration of REV is progressing with near-term synergies confirmed and capacity investments underway in Utilities. Key challenges include tariff-related margin pressure (notably in Aerials), seasonal cash outflows, share count dilution and some near-term cost inflation risks (freight). Management reiterated the full-year guidance prudently given macro and tariff uncertainty. On balance, the positives — broadened revenue base, improving margins in core growth segments, backlog/bookings strength and synergy execution — outweigh the near-term headwinds.Positive Updates
Top-Line Growth and Revenue Mix
Q1 sales of $1.7 billion, up $505 million or 41% YoY on a reported basis (driven by the REV merger); pro forma revenue growth of ~10.8% (CEO cited 11%). Management notes ~80% of 2025 pro forma revenue generated in North America, with ~85% manufactured in the U.S., improving portfolio resilience.
Negative Updates
Tariff Headwinds and Margin Pressure
Q1 EBITA margin was 9.9%, down 50 basis points YoY primarily due to tariffs that were not in effect in the prior-year period. Aerials faced tariff-related headwinds and a seasonally low volume quarter resulting in breakeven EBITDA in Q1.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-Line Growth and Revenue Mix
Q1 sales of $1.7 billion, up $505 million or 41% YoY on a reported basis (driven by the REV merger); pro forma revenue growth of ~10.8% (CEO cited 11%). Management notes ~80% of 2025 pro forma revenue generated in North America, with ~85% manufactured in the U.S., improving portfolio resilience.
Read all positive updates
Company Guidance
Terex reconfirmed its full‑year 2026 guidance, expecting pro forma sales to grow ~5% to $7.5–$8.1 billion and pro forma EBITDA to rise roughly $100 million (≈12% y/y) to $930 million–$1.0 billion (≈12.4% EBITDA margin at midpoint), which includes about $28 million of merger synergies in 2026 and a target $75 million run‑rate within 24 months; interest and other expense are expected at ≈$190 million (based on average debt of ≈$2.7 billion), the full‑year effective tax rate is expected to be 21%, and 2026 EPS is guided to $4.50–$5.00 (with ~115 million shares in Q2–Q4 and ~25% of full‑year EPS anticipated in Q2). Additional metrics/supporting detail: Q1 pro forma bookings were $2.1 billion (109% book‑to‑bill) with backlog of $7.1 billion, Q1 reported sales were $1.7 billion (+41% reported, +10.8% pro forma), Q1 EBITA margin was 9.9% (down 50 bps), Q1 EPS was $0.98 (including ≈$0.10 one‑time tax benefit), Q1 free cash outflow was $57 million, net working capital improved to 16.7% of sales (vs. 26% LY), net leverage was ~2.4x and is expected to improve, free cash conversion is expected at 80–90% of net income, and segment outlooks included Environmental Solutions growing mid‑single digits, Materials Processing growing high‑single digits (MP Q1 sales $419M, EBITDA margin 15%, +310 bps y/y), Specialty Vehicles expected to grow high‑single digits with margin improvement (SV Feb–Mar revenue $436M, Q1 SV EBITDA margin 14.2%, +160 bps), and Aerials guided to 2026 sales and margins similar to 2025 with >$1 billion backlog and sequential margin improvement in Q2–Q3.Terex Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
52
Neutral
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.68B | 5.42B | 5.13B | 5.15B | 4.42B | 3.89B |
| Gross Profit | 1.18B | 1.05B | 1.07B | 1.18B | 871.00M | 757.40M |
| EBITDA | 443.00M | 627.00M | 579.00M | 699.00M | 463.00M | 365.50M |
| Net Income | 149.00M | 221.00M | 335.00M | 518.00M | 300.00M | 220.90M |
Balance Sheet | ||||||
| Total Assets | 10.34B | 6.14B | 5.73B | 3.62B | 3.12B | 2.86B |
| Cash, Cash Equivalents and Short-Term Investments | 407.00M | 772.00M | 388.00M | 371.00M | 304.10M | 266.90M |
| Total Debt | 2.69B | 2.81B | 2.72B | 743.00M | 864.60M | 767.40M |
| Total Liabilities | 5.42B | 4.04B | 3.90B | 1.94B | 1.94B | 1.75B |
| Stockholders Equity | 4.92B | 2.10B | 1.83B | 1.67B | 1.18B | 1.11B |
Cash Flow | ||||||
| Free Cash Flow | 339.00M | 322.00M | 189.00M | 332.10M | 151.60M | 233.70M |
| Operating Cash Flow | 456.00M | 440.00M | 326.00M | 459.30M | 261.20M | 293.40M |
| Investing Cash Flow | -418.00M | 32.00M | -2.13B | -114.40M | -154.10M | -102.20M |
| Financing Cash Flow | -9.00M | -123.00M | 1.84B | -287.80M | -54.90M | -580.10M |
Terex Technical Analysis
Positive
69.83
Price Trends
66.01
Positive
63.09
Positive
59.48
Positive
Market Momentum
0.29
Negative
55.55
Neutral
80.84
Negative
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 69.83 is above the 20-day moving average (MA) of 66.02, above the 50-day MA of 66.01, and above the 200-day MA of 59.48, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 80.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $393.30B | 36.62 | 54.14% | 0.69% | 18.36% | 18.23% | |
72 Outperform | $9.61B | 17.33 | 12.32% | 1.39% | 1.93% | -12.16% | |
66 Neutral | $7.80B | 33.27 | 4.30% | 0.97% | 29.17% | -27.70% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $7.11B | 13.74 | 12.45% | 0.97% | 1.74% | 443.88% | |
61 Neutral | $167.30B | 34.62 | 18.25% | 1.03% | 3.98% | -14.68% | |
50 Neutral | $13.28B | 41.78 | 4.01% | 0.90% | 0.60% | -62.01% |
* Industrials Sector Average
TEX
Terex
66.20
15.02
29.35%
AGCO
Agco
99.45
-10.82
-9.81%
CAT
Caterpillar
854.60
440.83
106.54%
CNH
CNH Industrial
10.39
-1.64
-13.65%
DE
Deere
612.38
139.46
29.49%
OSK
Oshkosh
152.35
14.76
10.73%
Terex Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Terex Completes REV Group Acquisition, Enhancing Vehicle Portfolio
Positive
Jul 31, 2026
On February 2, 2026, Terex Corporation completed its previously announced acquisition of REV Group, Inc. and its subsidiaries under a merger agreement signed on October 29, 2025, and filed a related Form 8-K to report the closing of the transactio...
Business Operations and StrategyDividendsFinancial Disclosures
Terex posts strong Q2 results, raises 2026 outlook
Positive
Jul 30, 2026
On July 30, 2026, Terex reported second quarter 2026 net sales of $2.2 billion, up 50.5% on a reported basis and 8.5% pro forma, with adjusted EBITDA of $269 million and adjusted EPS of $1.37. Backlog rose to $6.9 billion and bookings increased 25...
Business Operations and StrategyFinancial Disclosures
Terex to Review Q2 2026 Results via Webcast
Neutral
Jul 21, 2026
On July 20, 2026, Terex Corporation announced plans to host a conference call to review its second quarter 2026 financial results on Thursday, July 30, 2026, at 8:30 a.m. Eastern Time. The call will be led by President and Chief Executive Officer ...
Executive/Board ChangesShareholder Meetings
Terex Shareholders Back Leadership, Pay and Incentive Plan
Positive
Jun 30, 2026
At its annual meeting held on June 25, 2026, Terex stockholders elected 12 directors, including Jean Marie “John” Canan and several other incumbents, to serve until the next annual meeting or until successors are chosen. The meeting al...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Terex Reports Strong Q1 2026 Sales, Reaffirms Outlook
Positive
May 1, 2026
On May 1, 2026, Terex reported first-quarter 2026 net sales of $1.7 billion, up 41% year over year on a reported basis and 11% on a pro forma basis, driven by growth across all segments and the addition of Specialty Vehicles. Despite a reported lo...
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.