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Terex Corporation (TEX)
:TEX
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Terex (TEX) AI Stock Analysis

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TE

Terex

(NYSE:TEX)

Rating:75Outperform
Price Target:
$57.00
â–²(11.90%Upside)
Terex's overall score reflects its strong financial performance and positive technical indicators, tempered by valuation concerns and risks highlighted in the earnings call. The company's strategic focus on Environmental Solutions and backlog growth are strengths, but tariff impacts and margin pressures in certain segments pose challenges.
Positive Factors
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.
Order Growth
Orders increased >40% in 1Q25 (first quarter in nearly three years above flattish) and will likely continue growing off a low base; gen-rent capex has been cut, absent a true recession capex should grow in 2026.
Negative Factors
Guidance and Consensus
Guidance for 2025 EPS is below consensus, indicating some caution for the company's future performance.
Residential Construction
Residential construction spending is moderating and recession fears persist, raising questions around the credibility of the company’s extended backlog.

Terex (TEX) vs. SPDR S&P 500 ETF (SPY)

Terex Business Overview & Revenue Model

Company DescriptionTerex Corporation (TEX) is a global manufacturer of lifting and material processing products and services, primarily serving the construction, infrastructure, quarrying, mining, shipping, transportation, refining, energy, and utility industries. The company's core products include aerial work platforms, telehandlers, utility equipment, materials processing machinery, and tower cranes. Terex operates through two main business segments: Aerial Work Platforms (AWP) and Materials Processing (MP), providing innovative solutions to enhance operational productivity and safety for its clients worldwide.
How the Company Makes MoneyTerex 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 exhibits strong financial health with consistent revenue growth, solid profitability, and robust cash flows. The company has improved its balance sheet with lower debt levels and a strong equity position, though it faces minor challenges such as slight declines in revenue and EBIT.
Income Statement
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.13B5.15B4.42B3.89B3.08B
Gross Profit1.07B1.18B871.20M757.40M539.30M
EBITDA582.00M700.20M468.40M377.60M120.60M
Net Income335.00M518.00M300.00M220.90M9.00M
Balance Sheet
Total Assets5.73B3.62B3.12B2.86B3.03B
Cash, Cash Equivalents and Short-Term Investments388.00M370.70M304.10M266.90M665.00M
Total Debt2.58B623.20M775.50M674.10M1.17B
Total Liabilities3.90B1.94B1.94B1.75B2.11B
Stockholders Equity1.83B1.67B1.18B1.11B921.50M
Cash Flow
Free Cash Flow189.00M332.10M151.60M233.70M160.90M
Operating Cash Flow326.00M459.30M261.20M293.40M225.40M
Investing Cash Flow-2.13B-114.40M-154.10M-102.20M-38.50M
Financing Cash Flow1.84B-287.80M-54.90M-580.10M-82.80M

Terex Technical Analysis

Technical Analysis Sentiment
Positive
Last Price50.94
Price Trends
50DMA
46.13
Positive
100DMA
42.11
Positive
200DMA
46.04
Positive
Market Momentum
MACD
1.76
Negative
RSI
59.96
Neutral
STOCH
69.87
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 50.94 is above the 20-day moving average (MA) of 48.20, above the 50-day MA of 46.13, and above the 200-day MA of 46.04, indicating a bullish trend. The MACD of 1.76 indicates Negative momentum. The RSI at 59.96 is Neutral, neither overbought nor oversold. The STOCH value of 69.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEX.

Terex Risk Analysis

Terex disclosed 26 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
OSOSK
77
Outperform
$8.10B13.4415.24%1.62%5.95%-10.59%
TETEX
75
Outperform
$3.42B14.2113.85%1.30%-2.78%-51.72%
71
Outperform
$917.42M61.002.33%1.30%1.99%-39.02%
CACAT
70
Outperform
$190.91B19.7855.67%1.39%-5.58%-7.37%
CNCNH
66
Neutral
$16.82B16.2013.26%1.86%-21.99%-52.11%
58
Neutral
HK$14.16B4.51-3.01%6.93%3.67%-54.16%
58
Neutral
$8.27B46.40-13.60%1.05%-23.02%-152.78%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TEX
Terex
50.94
-8.65
-14.52%
AGCO
Agco
108.33
8.27
8.27%
ASTE
Astec
39.77
5.94
17.56%
CAT
Caterpillar
405.77
50.95
14.36%
CNH
CNH Industrial
13.34
2.96
28.52%
OSK
Oshkosh
124.48
13.03
11.69%

Terex Corporate Events

Executive/Board ChangesShareholder MeetingsRegulatory Filings and Compliance
Terex Updates Bylaws Following Board Approval
Neutral
May 16, 2025

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.

Business Operations and StrategyFinancial Disclosures
Terex Reports Q1 2025 Financial Results and Outlook
Neutral
May 2, 2025

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.

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.Date of analysis: Jul 09, 2025