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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on TEX

Terex Corporation's recent performance was negatively impacted by weak demand in its core segments and rising tariffs and interest expenses. The company's Q3 2025 earnings call revealed sales of $1.4 billion and an operating margin of 10.1%. Despite beating Q3 earnings estimates, Terex faced headwinds, including a soft European market. Additionally, an investigation into the fairness of the proposed merger with REV Group may have contributed to investor uncertainty. Creative Planning's 56.2% increase in stake, however, signals confidence in the company's prospects.

1.c. Company Highlights

2. Terex's Earnings Beat Expectations Amidst Strategic Merger

Terex Corporation reported a strong quarterly performance with EPS reaching $1.50, significantly beating estimates of $1.22. The company's sales stood at $1.4 billion, and it achieved a cash conversion of 200%. Terex maintained its full-year outlook, instilling confidence in its financial stability. The company's ability to exceed earnings expectations can be attributed to its operational efficiency and strategic decisions.

Publication Date: Nov -03

📋 Highlights
  • Merger Structure & Ownership:: Terex shareholders own 58%, REV shareholders receive $425M cash, and the combined company will trade under Terex's ticker (TEX) by H1 2026.
  • Quarterly Performance:: Terex reported $1.50 EPS on $1.4B in sales with 200% cash conversion, maintaining its full-year outlook.
  • Strategic Divestiture:: Exit of Terex's Aerial segment will reduce cyclical exposure, with pro forma leverage at 2.5x and a mid-teens EBITDA margin target by 2025.
  • Synergy & Growth Targets:: $75M annual synergies by 2028 (50% within 12 months), 85% North American revenue focus, and 40% Specialty Vehicles sales split.
  • Balance Sheet & Valuation:: Combined company values REV at 11x 2026 EBITDA, with a $4.5B backlog and low capital intensity profile supporting future investments.

Merger Synergies and Future Prospects

The recently announced merger with REV Group is expected to yield significant synergies, with at least $75 million in annual cost savings anticipated. The combined entity will have a diverse portfolio with approximately 85% of revenue generated in North America, and a low capital intensity profile. This merger is poised to create a company with greater revenue growth potential, reduced earnings cyclicality, and an attractive financial profile.

Valuation and Growth Prospects

With a P/E Ratio of 19.35 and an EV/EBITDA of 16.07, Terex's valuation suggests that the market has already priced in some level of growth. Analysts estimate next year's revenue growth at 4.1%, indicating a moderate expansion. The company's ROIC of 4.31% and ROE of 8.15% suggest that it is generating returns, albeit not exceptionally high. The Net Debt/EBITDA ratio of -3.16 indicates a healthy balance sheet.

Segmental Performance and Restructuring

The company plans to exit its Aerial Work Platform (AWP) business, a decision driven by its cyclicality despite being a strong business with a proven track record. The AWP business has upside potential from mega projects in the US and European infrastructure investments. The divestment is expected to reduce exposure to cyclical end markets and make the portfolio less cyclical.

Post-Merger Portfolio

The combined company will have a U.S.-centric footprint, leading brands, and a low capital-intensive structure. The Terex portfolio is expected to have a better margin profile and strong synergies. The company's focus on integrating the two entities and achieving cost and revenue synergies is likely to drive future growth. With a strong balance sheet and a compelling valuation framework, Terex is well-positioned for future success.

3. NewsRoom

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Terex Corporation $TEX Shares Acquired by Ballast Asset Management LP

Dec -01

Source: defenseworld.net

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Terex Corporation $TEX Shares Purchased by Creative Planning

Nov -26

Source: defenseworld.net

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Invesco Small Cap Value Fund Q3 2025 Portfolio Positioning

Nov -20

Source: seekingalpha.com

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TEX Stock Alert: Halper Sadeh LLC is Investigating Whether the Merger of Terex Corporation is Fair to Shareholders

Nov -03

Source: businesswire.com

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Terex Completes Sale of Tower and Rough Terrain Cranes Businesses

Nov -03

Source: prnewswire.com

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Terex Corporation (TEX) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Compared to Estimates, Terex (TEX) Q3 Earnings: A Look at Key Metrics

Oct -30

Source: zacks.com

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Terex (TEX) Surpasses Q3 Earnings Estimates

Oct -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.99%)

6. Segments

Aerial Work Platforms

Expected Growth: 8.78%

Terex Corporation's Aerial Work Platforms segment growth of 8.78% is driven by increasing demand for infrastructure development, rising construction activities, and growing adoption of aerial lifts in industrial and commercial applications. Additionally, the company's strategic investments in product innovation, expansion into emerging markets, and strong aftermarket support also contribute to the segment's growth.

Materials Processing

Expected Growth: 4.65%

Terex Corporation's Materials Processing segment growth of 4.65% is driven by increasing demand for crushing and screening equipment in the aggregates and mining industries, supported by infrastructure development and rising construction activities. Additionally, the segment benefits from the company's focus on product innovation, cost reduction initiatives, and strategic acquisitions.

Corporate and Other/Eliminations

Expected Growth: 4.83%

Terex Corporation's Corporate and Other/Eliminations segment growth of 4.83% is driven by cost savings initiatives, improved operational efficiencies, and strategic investments in digitalization and electrification. Additionally, the company's focus on reducing debt and optimizing its capital structure has also contributed to the segment's growth.

7. Detailed Products

Crane

Terex Cranes offers a wide range of cranes, including rough-terrain cranes, all-terrain cranes, and crawler cranes, designed for heavy-lifting applications in construction, infrastructure, and industrial projects.

Aerial Work Platforms

Terex Aerial Work Platforms provide a range of aerial lifts, including boom lifts, scissor lifts, and telehandlers, designed for access and material handling in construction, maintenance, and industrial applications.

Material Processing

Terex Material Processing offers a range of equipment, including crushers, screens, and conveyors, designed for crushing, screening, and conveying materials in mining, quarrying, and recycling applications.

Light Towers

Terex Light Towers provide portable lighting solutions for construction, mining, and industrial applications, designed for temporary or permanent lighting needs.

Telehandlers

Terex Telehandlers offer a range of telehandlers, designed for material handling and lifting applications in construction, agriculture, and industrial projects.

Genie Aerials

Terex Genie Aerials provide a range of aerial lifts, including boom lifts, scissor lifts, and telehandlers, designed for access and material handling in construction, maintenance, and industrial applications.

8. Terex Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Terex Corporation's products are specialized and customized, making it difficult for substitutes to emerge. However, the company's reliance on a few key suppliers increases the threat of substitutes.

Bargaining Power Of Customers

Terex Corporation's customers are diverse and fragmented, reducing their bargaining power. The company's products are also critical to its customers' operations, making it difficult for them to switch suppliers.

Bargaining Power Of Suppliers

Terex Corporation relies on a few key suppliers for critical components, giving them significant bargaining power. The company's suppliers also have high switching costs, making it difficult for Terex to change suppliers.

Threat Of New Entrants

The construction and industrial equipment industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with established players like Terex Corporation.

Intensity Of Rivalry

The construction and industrial equipment industry is highly competitive, with several established players competing for market share. However, Terex Corporation's diversified product portfolio and global presence help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.15%
Debt Cost 11.40%
Equity Weight 72.85%
Equity Cost 12.22%
WACC 12.00%
Leverage 37.27%

11. Quality Control: Terex Corporation passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Mueller Industries

A-Score: 6.3/10

Value: 4.5

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
PACCAR

A-Score: 6.0/10

Value: 3.7

Growth: 6.7

Quality: 6.1

Yield: 8.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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REV Group

A-Score: 5.8/10

Value: 4.1

Growth: 6.2

Quality: 6.3

Yield: 4.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Oshkosh

A-Score: 5.7/10

Value: 5.9

Growth: 6.8

Quality: 5.9

Yield: 2.0

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Terex

A-Score: 4.5/10

Value: 5.6

Growth: 5.9

Quality: 5.5

Yield: 2.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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AGCO

A-Score: 4.3/10

Value: 4.0

Growth: 2.9

Quality: 3.0

Yield: 4.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.83$

Current Price

49.83$

Potential

-0.00%

Expected Cash-Flows