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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 driven by strong Q4 2025 earnings, with sales growth of 8% and a 32% year-over-year increase in bookings to $1.9 billion. The company's adjusted EPS was $1.12, in line with estimates. Terex's full-year sales reached $5.4 billion, with an operating margin of 8.8% and adjusted EPS of $4.93. The company has a "Moderate Buy" rating from brokerages, with six hold and six buy recommendations (MarketBeat Ratings). Increased stakes in Terex have been reported from Ballast Asset Management LP and Creative Planning.

1.c. Company Highlights

2. Terex Corporation Posts Strong Q4 2025 Results, Driven by Merger with REV Group

Terex Corporation reported $1.3 billion in Q4 2025 sales, a 6% year-over-year increase, and $5.4 billion in full-year 2025 sales. The Environmental Solutions (ES) segment reported $428 million in Q4 sales, up 14.1% year-over-year, with 18.5% operating margins. The company's EPS came in at $1.12, in line with estimates. The merger with REV Group has created a leading specialty equipment manufacturer with a strong presence in multiple industries, positioning the company for long-term growth across its segments.

Publication Date: Feb -15

📋 Highlights
  • Merged Entity Scale:: Terex and REV Group create a $7.5–$8.1B specialty equipment manufacturer, with $1.3B Q4 2025 sales (6% YoY) and $5.4B full-year 2025 sales.
  • Environmental Solutions Growth:: ES segment reported $428M Q4 sales (+14.1% YoY) with 18.5% operating margins, driven by utilities demand and capacity expansion.
  • Synergy and Margin Targets:: $75M run-rate synergies by 2027, $28M in 2026; 2026 EBITDA guidance of $930M–$1B (+12% YoY) and EPS of $4.50–$5.
  • Free Cash Flow and Efficiency:: $325M free cash flow in 2025 (147% cash conversion), $172M in Q4, reflecting strong liquidity and operational efficiency.
  • Tariffs and Margin Management:: $60M tariff headwinds projected for Aerials in 2026, offset by pricing and productivity, maintaining flat margin profiles despite challenges.

Segment Performance

The Materials Processing (MP) segment sales were $428 million, down 2.5% year-over-year, while Aerials segment sales grew 6.9% year-over-year. Jennifer Kong-Picarello mentioned that they expect a progressive step-up in margin profile in Q4 versus Q3, driven by price, and that this momentum will continue into 2026. The company is expanding capacity in its utilities business, adding 20-30% capacity over the next two years, with roughly half coming online in 2026.

Guidance and Outlook

The company expects to achieve $75 million in run-rate synergies within two years, with $28 million expected in 2026. Terex Corporation forecasts 2026 EBITDA of $930 million to $1 billion, representing a 12% year-over-year increase, and EPS of $4.50 to $5. The company guides for mid-single digit growth in Environmental Solutions, but flat growth in ESG, excluding potential prebuys in the second half of 2026.

Valuation

The company's current valuation metrics indicate a P/E Ratio of 20.55, P/B Ratio of 2.17, and EV/EBITDA of 5.96. The market seems to be pricing in a certain level of growth, and the company's guidance suggests that it is on track to meet its targets. With a ROE of 11.16% and ROIC of 7.27%, the company is generating returns above its cost of capital.

Cash Flow and Debt

The company generated $325 million in free cash flow in 2025 and $172 million in Q4, with a cash conversion rate of 147%. The Net Debt / EBITDA ratio stands at -1.21, indicating a healthy debt position. The company has several options for its proceeds from an aerial sale, including returning value to shareholders or reinvesting in the business.

3. NewsRoom

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Kieran Hegarty Sells 11,980 Shares of Terex (NYSE:TEX) Stock

Feb -20

Source: defenseworld.net

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Terex Corporation (TEX) Q4 2025 Earnings Call Transcript

Feb -11

Source: seekingalpha.com

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Why Terex Stock Is Rocketing Higher Today

Feb -11

Source: fool.com

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Terex (TEX) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -11

Source: zacks.com

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Terex (TEX) Matches Q4 Earnings Estimates

Feb -11

Source: zacks.com

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Terex Announces Quarterly Dividend

Feb -11

Source: prnewswire.com

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Terex Reports Fourth Quarter and Full-Year 2025 Results

Feb -11

Source: prnewswire.com

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TEREX COMPLETES SALE OF MIDWEST RECREATIONAL VEHICLE BUSINESS

Feb -10

Source: prnewswire.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: 6.4/10

Value: 4.3

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
REV Group

A-Score: 6.1/10

Value: 3.8

Growth: 8.2

Quality: 6.3

Yield: 4.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
PACCAR

A-Score: 6.0/10

Value: 4.1

Growth: 6.7

Quality: 5.0

Yield: 8.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Oshkosh

A-Score: 5.9/10

Value: 7.1

Growth: 6.8

Quality: 6.0

Yield: 3.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
AGCO

A-Score: 4.7/10

Value: 5.2

Growth: 2.9

Quality: 4.2

Yield: 4.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Terex

A-Score: 4.3/10

Value: 5.2

Growth: 5.7

Quality: 5.5

Yield: 2.0

Momentum: 3.5

Volatility: 4.0

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

68.17$

Current Price

68.17$

Potential

-0.00%

Expected Cash-Flows