Terex (TXG) AI Stock Analysis

Company Guidance

Terex expects 2026 sales in the range of $8 billion to $8.2 billion and adjusted pro forma EBITDA of $930 million to $960 million, with 2026 pro forma sales growth of approximately 8% at the midpoint, pro forma EBITDA growth of approximately 10% year-over-year, an 11.7% EBITDA margin at the midpoint, approximately $28 million of realized synergies, interest and other expenses of approximately $180 million based on average debt outstanding of $2.6 billion, an effective tax rate of 19%, adjusted EPS of $4.80 to $5.00, free cash flow of $360 million to $400 million, and capital expenditures of $145 million; segment guidance is approximately flat year-over-year sales for Environmental Solutions, low double digit sales growth for Materials Processing, high single digit full year sales growth for Specialty Vehicles despite the impact of Capacity and Lay-Mor divestiture, and low double digit revenue growth for Aerials, which is approximated as mid teens, while Specialty Vehicles expects a typical approximately 15% sequential decline in fourth-quarter sales, Waukesha ramp up inefficiencies are expected to continue into Q4 and normalize entering 2027, and Capacity and Lay-Mor represent anywhere between $125 million to $150 million of top line revenue and mid single digit to high single digit EBITDA on an annualized basis through cycles.