olivLaw · US equity research
Terex Corporation TEX
Industrial Trucks, Tractors, Trailors & Stackers · SIC 3537 · Vertical: Industrial machinery and computer equipment (SIC 353x)
Terex is a global industrial equipment maker with segments in materials processing, recycling, utilities, specialty vehicles and aerial platforms. After the REV acquisition closed in February 2026, it reported second quarter 2026 proforma sales growth of 8.5% to 2.2 billion USD. This matters because its broader portfolio could reduce reliance on construction cycles.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Terex Corporation (TEX) stock was 57.56 USD (+0.07% on the day), with market capitalisation 6.5 bn USD, P/E 29.0 on diluted EPS of 1.98 USD over the last 12 months, dividend yield 1.18%, beta 1.64, 52-week range 41.78–74.58 USD. Latest reported quarter (Q3 2026): revenue of 2.2 bn USD (+58.4% YoY), net income of 114.0 m USD (+75.4% YoY), diluted EPS 1.00 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 58.6
- strong (55–70)
- Bollinger (20, 2)
- 48.19 – 58.09
- in the upper half of the band · %B 0.95 · band width 18.6%
- SMA 50 / 200
- 56.72 / 61.82
- mixed trend
- MACD (12, 26, 9)
- 0.13 / -0.88
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +1.2% | −1.1% | +2.3 pp | — |
| 3 months | −12.9% | −0.5% | −12.4 pp | — |
| 6 months | −10.4% | +4.4% | −14.8 pp | — |
| Year to date | +7.8% | +12.3% | −4.5 pp | — |
| 1 year | +22.5% | +13.5% | +9.0 pp | +14.8% |
| 3 years | +14.5% | +76.4% | −61.9 pp | +26.4% |
| 5 years | +18.6% | +63.7% | −45.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.2 bn | 1.2 bn | 1.5 bn | 1.4 bn | 1.3 bn | 1.7 bn | 2.2 bn | 2.2 bn |
| Cost of revenue | 1.0 bn | 982.0 m | 1.2 bn | 1.1 bn | 1.1 bn | 1.5 bn | 1.8 bn | 1.8 bn |
| Gross profit | 197.0 m | 247.0 m | 308.0 m | 299.0 m | 196.0 m | 206.0 m | 444.0 m | 435.0 m |
| SG&A | 144.0 m | 161.0 m | 162.0 m | 142.0 m | 111.0 m | 241.0 m | 209.0 m | 199.0 m |
| Operating income | 53.0 m | 69.0 m | 129.0 m | 140.0 m | 137.0 m | -82.0 m | 187.0 m | 183.0 m |
| Depreciation & amortisation | 37.0 m | 39.0 m | 39.0 m | 38.0 m | 44.0 m | 77.0 m | 85.0 m | 88.0 m |
| Interest expense | 45.0 m | 43.0 m | 44.0 m | 45.0 m | 45.0 m | 47.0 m | 50.0 m | 49.0 m |
| Pre-tax income | -2.0 m | 26.0 m | 89.0 m | 94.0 m | 83.0 m | -126.0 m | 139.0 m | 135.0 m |
| Income tax | 0 | 5.0 m | 17.0 m | 29.0 m | 20.0 m | -33.0 m | 29.0 m | 21.0 m |
| Net income | -2.0 m | 21.0 m | 72.0 m | 65.0 m | 63.0 m | -89.0 m | 110.0 m | 114.0 m |
| Diluted EPS | -0.03 ≈ | 0.31 | 1.09 | 0.98 | 0.95 ≈ | -0.93 | 0.96 | 1.00 |
| Operating cash flow | 177.0 m | -21.0 m | 102.0 m ≈ | 154.0 m ≈ | 205.0 m | -31.0 m | 128.0 m ≈ | 241.0 m ≈ |
| Capex | 49.0 m | 36.0 m | 24.0 m | 24.0 m | 34.0 m | 26.0 m | — | — |
| Dividends paid | 12.0 m | 11.0 m | 11.0 m ≈ | 12.0 m ≈ | 11.0 m | 19.0 m | 20.0 m ≈ | 19.0 m ≈ |
| Share repurchases | 15.0 m | 32.0 m | 23.0 m ≈ | 0 ≈ | 1.0 m | 0 | 3.0 m ≈ | 72.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 81 percentile of its own 32-quarter history (min 7.5, median 16.3, max 171.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.5 bn | 4.4 bn | 3.1 bn | 3.9 bn | 4.4 bn | 5.2 bn | 5.1 bn | 5.4 bn |
| Revenue YoY | +19.1% | −3.6% | −29.3% | +26.3% | +13.7% | +16.6% | −0.5% | +5.7% |
| Net income | 113.7 m | 54.4 m | -10.6 m | 220.9 m | 300.0 m | 518.0 m | 335.0 m | 221.0 m |
| Net income YoY | −11.7% | −52.2% | −119.5% | unavailable | +35.8% | +72.7% | −35.3% | −34.0% |
| Diluted EPS | 1.48 | 0.76 | -0.15 | 3.12 | 4.32 | 7.58 | 4.96 | 3.33 |
| Diluted EPS YoY | +8.8% | −48.6% | −119.7% | unavailable | +38.5% | +75.5% | −34.6% | −32.9% |
| net % | 2.5% | 1.2% | -0.3% | 5.7% | 6.8% | 10.1% | 6.5% | 4.1% |
| Free cash flow | 3.2 m | 67.9 m | 160.9 m | 233.7 m | 151.0 m | 332.0 m | 189.0 m | 322.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 772.0 m USD
- Financial debt
- 2.6 bn USD
- Net debt
- 1.8 bn USD
- Equity
- 2.1 bn USD
- Total assets
- 6.1 bn USD
- Debt / equity
- 1.23x
- Current ratio
- 2.30x
- ROE
- 11.3%
- ROA
- 3.7%
- FCF margin
- 5.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.1 bn | 3.9 bn | 4.4 bn | 5.2 bn | 5.1 bn | 5.4 bn | SEC (XBRL)· 13 Feb 2026verified |
| Cost of revenue | 2.5 bn | 3.1 bn | 3.5 bn | 4.0 bn | 4.1 bn | 4.4 bn | SEC (XBRL)· 13 Feb 2026verified |
| Gross profit | 539.3 m | 757.4 m | 871.0 m | 1.2 bn | 1.1 bn | 1.1 bn | SEC (XBRL)· 13 Feb 2026verified |
| Research & development | 58.9 m | 52.2 m | 22.0 m | 28.0 m | 25.0 m | 39.0 m | SEC (XBRL)· 13 Feb 2026verified |
| SG&A | 470.9 m | 429.4 m | 451.0 m | 540.0 m | 542.0 m | 576.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Operating income | 68.4 m | 328.0 m | 420.0 m | 637.0 m | 526.0 m | 475.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Depreciation & amortisation | 49.7 m | 50.2 m | 47.0 m | 56.0 m | 82.0 m | 157.0 m | SEC (XBRL)· 13 Feb 2026verified |
| EBITDA | 118.1 m ≈ | 378.2 m ≈ | 467.0 m ≈ | 693.0 m ≈ | 608.0 m ≈ | 632.0 m ≈ | SEC (XBRL)· 13 Feb 2026derived |
| Interest expense | 65.9 m | 51.5 m | 49.0 m | 63.0 m | 89.0 m | 177.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Pre-tax income | 11.0 m | 263.8 m | 367.0 m | 580.0 m | 408.0 m | 292.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Income tax | 2.0 m | 46.3 m | 67.0 m | 63.0 m | 73.0 m | 71.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Net income | -10.6 m | 220.9 m | 300.0 m | 518.0 m | 335.0 m | 221.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Diluted EPS | -0.15 | 3.12 | 4.32 | 7.58 | 4.96 | 3.33 | SEC (XBRL)· 13 Feb 2026verified |
| Weighted average diluted shares | 70.1 m | 70.9 m | 69.4 m | 68.3 m | 67.6 m | 66.3 m | SEC (XBRL)· 13 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 665.0 m | 266.9 m | 304.1 m | 371.0 m | 388.0 m | 772.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Inventories | 610.4 m | 813.5 m | 988.4 m | 1.2 bn | 1.1 bn | 1.1 bn | SEC (XBRL)· 13 Feb 2026verified |
| Current assets | 1.9 bn | 1.8 bn | 2.0 bn | 2.2 bn | 2.3 bn | 2.7 bn | SEC (XBRL)· 13 Feb 2026verified |
| Property, plant & equipment, net | 406.6 m | 429.6 m | 465.6 m | 570.0 m | 714.0 m | 760.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Goodwill | 275.4 m | 280.1 m | 284.0 m | 295.0 m | 1.1 bn | 1.1 bn | SEC (XBRL)· 13 Feb 2026verified |
| Intangibles (excl. goodwill) | 8.3 m | 13.4 m | 17.4 m | 16.0 m | 1.1 bn | 1.0 bn | SEC (XBRL)· 13 Feb 2026verified |
| Total assets | 3.0 bn | 2.9 bn | 3.1 bn | 3.6 bn | 5.7 bn | 6.1 bn | SEC (XBRL)· 13 Feb 2026verified |
| Accounts payable | 369.9 m | 537.7 m | 624.6 m | 703.0 m | 580.0 m | 683.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Short-term debt | 7.6 m | 5.6 m | 1.9 m | 3.0 m | 4.0 m | 6.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Long-term debt | 1.2 bn | 668.5 m | 773.6 m | 620.0 m | 2.6 bn | 2.6 bn | SEC (XBRL)· 01 May 2026verified |
| Current liabilities | 723.3 m | 909.9 m | 998.6 m | 1.1 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 13 Feb 2026verified |
| Total liabilities | 2.1 bn | 1.8 bn | 1.9 bn | 1.9 bn | 3.9 bn | 4.0 bn | SEC (XBRL)· 13 Feb 2026verified |
| Equity | 921.5 m | 1.1 bn | 1.2 bn | 1.7 bn | 1.8 bn | 2.1 bn | SEC (XBRL)· 13 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 225.4 m | 293.4 m | 261.0 m | 459.0 m | 326.0 m | 440.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Capex | 64.5 m | 59.7 m | 110.0 m | 127.0 m | 137.0 m | 118.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Free cash flow | 160.9 m ≈ | 233.7 m ≈ | 151.0 m ≈ | 332.0 m ≈ | 189.0 m ≈ | 322.0 m ≈ | SEC (XBRL)· 13 Feb 2026derived |
| Investing cash flow | -38.5 m | -102.2 m | -154.0 m | -114.0 m | -2.1 bn | 32.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Financing cash flow | -82.8 m | -580.1 m | -55.0 m | -288.0 m | 1.8 bn | -123.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Dividends paid | 8.4 m | 33.5 m | 36.0 m | 43.0 m | 46.0 m | 45.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Share repurchases | 56.0 m | 3.0 m | 101.0 m | 63.0 m | 49.0 m | 56.0 m | SEC (XBRL)· 13 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 45 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 6.5 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation46
- Returns59
- Quality64
- Balance sheet27
- Growth29
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.92 – 125.74 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)67.02 – 125.74 (Mid 88.54)WACC 8.1% · starting FCFF 595.4 m USD · terminal value share of EV 77%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -7.3%
- Peers: EV/EBITDA34.95 – 49.83 (Mid 42.13)10 companies used · median multiple 9.6x · quartiles 8.5x – 10.8xAEBI, ASTE, FET, FTI, INVX, MTW, NOV, PLOW, WFRD, WHD
- Peers: P/E36.35 – 87.65 (Mid 53.20)18 companies used · median multiple 26.8x · quartiles 18.3x – 44.2xAEBI, ASTE, BKR, CAT, CNH, DOV, FET, FLOC, FTI, INVX, LSE, MTW, NOV, OMSE, PLOW, STAK, WFRD, WHD
- Dividend discount (DDM)0.92 – 1.24 (Mid 1.06)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 45/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 6.4% | 50 (vs peers) | 10% |
| Net margin · Quality | 2.6% | 52 (vs peers) | 6% |
| FCF conversion · Quality | 219.7% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 7.1% | 59 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | -8.3% | 0 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 3.0x | 14 (vs peers) | 10% |
| Interest coverage · Balance sheet | 2.2x | 11 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.8x | 80 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 29.0x | 44 (vs peers) | 10% |
| EV/EBITDA · Valuation | 12.0x | 17 (vs peers) | 10% |
| FCF yield · Valuation | 6.7% | 84 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 2.2% | 32 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 15.9% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet27/100 · 3/3 factors with a value
- Growth29/100 · 2/2 factors with a value
- Quality64/100 · 3/3 factors with a value
- Returns59/100 · 2/2 factors with a value
- Valuation46/100 · 3/3 factors with a value
Memo
Terex Corporation (TEX). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 5.4 bn USD in 2025; YoY growth 5.7%; net margin 2.6%; ROE 5.7%; net debt/EBITDA 3.0x.
The estimated value range is 35.65–68.74 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 47.66 USD, the price of 57.56 USD leaves a potential of -17.2% (value / price − 1) and a margin of safety of -20.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 45/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 219.7%
- Current ratio: 1.8x
- FCF yield: 6.7%
- Payout ratio (FCF): 15.9%
What contradicts it
- EPS CAGR 3Y: -8.3%
- Net debt / EBITDA: 3.0x
- Interest coverage: 2.2x
- EV/EBITDA: 12.0x
Versus the vertical median
Industrial machinery and computer equipment (SIC 353x) · same industry group (3-digit SIC) · compared with 27 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CATCaterpillar Inc | 270.6 bn | 23.2 | 56.1% | 15.2% | +4.3% | +3% / +136% |
| BKRBaker Hughes Company | 49.5 bn | 17.1 | 15.1% | 10.1% | −0.3% | −1% / +48% |
| DOVDOVER Corp | 28.3 bn | 24.8 | 15.2% | 13.6% | +4.5% | +15% / +51% |
| FTITechnipFMC plc | 25.1 bn | 20.3 | 38.6% | 12.0% | +9.4% | +43% / +211% |
| CNHCnh Industrial N.V. | 14.5 bn | 47.0 | 4.0% | 1.7% | −8.8% | +24% / +9% |
| TEXTerex Corporation | 6.5 bn | 29.0 | 5.7% | 2.6% | +5.7% | +23% / +15% |
| NOVNov Inc. | 6.4 bn | 45.2 | 2.3% | 1.6% | −1.4% | +17% / −4% |
| WFRDWeatherford International plc | 6.2 bn | 15.3 | 23.0% | 8.6% | −10.8% | +15% / −5% |
| WHDCactus, Inc. | 4.3 bn | 23.6 | 14.7% | 12.0% | −4.5% | +35% / +37% |
| DNOWDnow Inc. | 2.8 bn | — | -12.4% | -4.9% | +18.8% | +10% / +54% |
| INVXInnovex International, Inc. | 1.8 bn | 37.1 | 4.5% | 4.8% | +48.0% | +16% / +15% |
| ASTEAstec Industries, Inc. | 904.9 m | 46.4 | 2.9% | 1.3% | +8.1% | −11% / +26% |
| AEBIAebi Schmidt Holding AG | 902.5 m | 41.0 | 3.6% | 1.1% | +40.6% | −2% / unavailable |
| PLOWDouglas Dynamics, Inc | 879.7 m | 13.8 | 22.2% | 8.7% | +15.4% | +18% / +40% |
| FETForum Energy Technologies, Inc. | 845.3 m | 28.8 | 9.8% | 3.5% | −3.1% | +135% / +238% |
| MTWThe Manitowoc Company, Inc. | 837.7 m | 32.6 | 3.8% | 1.1% | +2.9% | +106% / +62% |
| CMCOColumbus McKinnon Corporation | 537.7 m | — | -30.8% | -19.6% | +23.9% | +13% / −47% |
| OISOil States International, Inc | 510.2 m | — | -16.8% | -16.5% | −3.4% | +35% / +24% |
| OMSEOMS Energy Technologies Inc. | 167.2 m | 3.3 | 43.5% | 22.0% | unavailable | −16% / unavailable |
| LSELeishen Energy Holding Co., Ltd. | 75.4 m | 55.4 | 2.9% | 2.6% | −30.0% | −14% / unavailable |
| DTIDrilling Tools International Corporation | 52.9 m | — | -2.5% | -2.0% | +3.4% | −38% / −56% |
| STAKSTAK Inc. | 27.5 m | 71.5 | 2.9% | 1.5% | +13.2% | +202% / unavailable |
| GPUSHyperscale Data, Inc. | 247.1 k | — | -159.8% | -71.0% | −4.3% | −89% / −100% |
| FLOCFlowco Holdings Inc. | — | 17.7 | 12.5% | 6.4% | +41.9% | +15% / unavailable |
| GENCGencor Industries, Inc. | — | — | 6.9% | 13.5% | +2.0% | +31% / +17% |
1- and 3-year price returns: for TEX from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 30.98 Total return -45% · Per year -45% | 54.70 Total return -4% · Per year -4% | 82.30 Total return 44% · Per year 44% |
| 3 years | 31.63 Total return -42% · Per year -17% | 62.69 Total return 13% · Per year 4% | 103.35 Total return 84% · Per year 23% |
| 5 years | 32.30 Total return -40% · Per year -10% | 71.86 Total return 31% · Per year 6% | 129.77 Total return 134% · Per year 19% |
- Exit P/E± 15.67
- Net margin± 10.97
- Annual revenue growth± 8.79
- Annual dilution± 0.92
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 03 Aug 2026; since then the company filed 8-K (30 Oct 2026 · results), 10-Q (29 Oct 2026), 8-K (28 Oct 2026 · results).
In brief
Terex is a global industrial equipment maker with segments in materials processing, recycling, utilities, specialty vehicles and aerial platforms. After the REV acquisition closed in February 2026, it reported second quarter 2026 proforma sales growth of 8.5% to 2.2 billion USD 123. This matters because its broader portfolio could reduce reliance on construction cycles.
SWOT
Strengths
Weaknesses
Opportunities
Risks
- Acquisition integrationhigh
Integrating REV and other businesses may encounter cultural, operational or systems difficulties, and anticipated synergies may not be fully realized 1.
- Debt and covenantshigh
The company carries significant debt and must comply with covenants; if leverage targets were missed, a default could result 1.
- Tariffs and costsmedium
Tariffs raised costs in Aerials and could hurt margins if not offset by pricing or efficiency gains 23.
- Price competitionmedium
Pressure from low-cost competitors, particularly in China, could lower prices and market share 1.
- Aerials strategic reviewmedium
A sale of the Aerials segment could be delayed or completed on less favorable terms, affecting results 1.
Investment thesis
What would need to be true (bull case)
- Sales growth across all segments and a solid backlog of 6.9 billion USD could support second half results 23.
- Improved working capital and high free cash flow could support debt reduction and growth investment 23.
- The raised 2026 outlook signals confidence in operational execution, especially in MP and SV 3.
What to watch
- Outcome of the strategic review of the Aerials segment2026
- Margin trajectory after REV integration and synergy realizationQ3 2026
- Impact of tariffs on Aerials cost basenext 10-Q
- Delivery against the raised 2026 sales and adjusted EBITDA outlook2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 03 Aug 2026; since then the company filed 8-K (30 Oct 2026 · results), 10-Q (29 Oct 2026), 8-K (28 Oct 2026 · results).
The business
Terex is a global industrial equipment manufacturer that designs, builds and supports materials processing machinery, waste and recycling solutions, mobile elevating work platforms and equipment for the electric utility industry 1. It manufactures in North America, Europe and Asia Pacific and sells worldwide, engaging customers through every stage of the product life cycle from specification to parts and service 1. The REV merger, completed on 2 February 2026, added customized vehicle solutions for public services and commercial use 12.
Its operating strategy rests on Execute, Innovate and Grow, with the stated goal of superior life-cycle return on invested capital for customers 1. Terex also pursues acquisitions in less cyclical, resilient end markets, as with ESG and REV 1. Capital allocation balances net leverage, growth investments, restructuring and returns to shareholders through dividends and share repurchases 1.
Segments
Materials Processing (MP)
The MP segment makes crushers, screens, recycling equipment and concrete mixers used in quarrying, construction and recycling 1. In the second quarter of 2026, MP sales rose 11.1% year over year to 464 million USD and adjusted EBITDA margin expanded to 18.8%, mainly on U.S. mobile crusher demand 3.
Specialty Vehicles (SV) and Aerials
SV, from the REV acquisition, produces fire apparatus, ambulances and commercial vehicles, generating 650 million USD of sales and 94 million USD of adjusted EBITDA in the second quarter of 2026 2. Aerials makes aerial work platforms and telehandlers, and the company has announced a strategic review of this segment that could lead to a possible divestiture 13.
Market context
Terex's end markets remain supported by fleet replacement and aftermarket demand 2. In the U.S., non-residential construction starts rose 18% year to date, with mega project starts near 80 billion USD, supporting demand across several segments 3. Utilities are supported by grid modernization and data-center-related power demand 23.
Conditions are less favorable in some regions: in 2025 sales fell outside North America and European demand stayed weak 1. Construction demand also depends on financing costs and tariff policy, which could influence project timing 12.
Trends
- Infrastructure and mega project demandtailwind
Public and private infrastructure investment and large U.S. projects support demand for construction and recycling equipment 23. If these programs proceed quickly, demand could stay elevated in the coming years 3.
- Tariffsheadwind
Tariffs raised costs in Aerials and weighed on ES margins, although the company received partial IEEPA tariff refunds 23. If tariffs persist, cost pressure could continue.
- Interest ratesmixed
High interest rates limited rent-to-own conversions in MP and hurt Aerials customers exposed to smaller projects 1. Lower rates could support demand, but the effect is uncertain.
- Digitalization and electrificationtailwind
Digital solutions, 3rd Eye cameras and electric or hybrid products can raise customer productivity and support replacement demand 13. Adoption, however, depends on customer budgets 3.
Competitive position
Terex operates in a highly competitive industry with domestic and foreign rivals in all major markets, including smaller firms with lower costs and large firms with substantial financial resources 1. Low-cost competition from China and other developing markets could pressure prices and market share 1.
The company also depends on independent dealer networks, and dealer consolidation can increase their bargaining power 1. Keeping pace with competitors on new products and technology, including artificial intelligence, remains essential 1.
- Smaller regional manufacturers
Smaller firms with lower operating costs that focus on regional markets and local municipal relationships 1.
- Large established international manufacturers
Large, well-established companies with capacity and financial resources that may exceed Terex's 1.
- Low-cost manufacturers in China
Suppliers in China and other developing markets that can exert downward pressure on prices 1.
- Dealer and distributor networks
Dealers can influence commercial terms, and their consolidation may reduce Terex's bargaining power 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report30 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report29 Oct 2026
- Current report28 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report16 Oct 2026Other events · Financial statements and exhibits
- Current report03 Aug 2026Results of operations · Financial statements and exhibits
- Current report31 Jul 2026Other events · Financial statements and exhibits
- Quarterly report30 Jul 2026
- Current report30 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report21 Jul 2026Other events · Financial statements and exhibits
- Current report30 Jun 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Terex Corporation · 13 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Terex Corporation · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Terex Corporation · 03 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.