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Terex Corporation (TEX)
:TEX
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Terex
(NYSE:TEX)
78Outperform
Positive Factors
Acquisition Performance
The newly acquired ESG unit showed a strong initial performance with an adjusted operating margin of 21.8%.
Future Growth Potential
The Genie business secured additional 2025 commitments from a large customer, suggesting potential for future growth.
Negative Factors
Backlog Erosion
Backlog erosion and significant order softness continue to pose challenges for 2025.
Market Decline
A weak EU market and lower production have led to a significant decline in Materials Processing EBITDA and sales.
Terex (TEX) vs. S&P 500 (SPY)
Market Cap
$2.38B
Dividend Yield1.9%
Average Volume (3M)1.16M
Price to Earnings (P/E)7.2
Beta (1Y)1.62
Revenue Growth-0.47%
EPS Growth-34.74%
CountryUS
Employees11,400
SectorIndustrials
Sector Strength68
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)4.95
Shares Outstanding66,400,000
10 Day Avg. Volume1,307,265
30 Day Avg. Volume1,157,482
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.51
Price to Cash Flow (P/CF)3.70
P/FCF Ratio2.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$48.22Price Target Upside41.08% Upside
Rating ConsensusHold
Number of Analyst Covering10
Terex Business Overview & Revenue Model
Company DescriptionTerex Corporation (TEX) is a global manufacturer of lifting and material processing products and services that deliver lifecycle solutions to a broad range of industries, including construction, infrastructure, manufacturing, shipping, transportation, refining, energy, utility, quarrying, and mining. The company's core product categories include aerial work platforms, cranes, and material processing equipment, all designed to enhance operational efficiency and safety.
How the Company Makes MoneyTerex Corporation generates revenue primarily through the sale and leasing of its equipment and related services. The company's key revenue streams include the sales of new and used equipment, aftermarket parts and services, and equipment rentals. Terex's equipment sales are often facilitated through its global network of dealers and distributors, which allows the company to reach a diverse customer base. Additionally, Terex provides maintenance and support services that contribute to recurring revenue. Strategic partnerships and joint ventures, such as those related to manufacturing and distribution, also play a role in supporting the company's earnings by expanding its market reach and enhancing its product offerings.
Terex Financial Statement Overview
Summary
Terex shows solid financial performance with strong revenue growth and improving capital structure. The company has effectively managed its debt levels, enhancing its financial stability. However, the recent dip in net profit margin suggests a need for better cost control or operational efficiency.Income Statement
Terex has demonstrated robust growth in recent years with consistent revenue increases, peaking at $5.15 billion in 2023 from $3.88 billion in 2021. The company maintains a healthy gross profit margin of approximately 22.8% for 2023. However, the net profit margin dropped from 10.1% in 2022 to 6.5% in 2023, indicating potential challenges in managing expenses or other operational aspects.85
Very Positive
Balance Sheet
Terex's balance sheet shows a strong equity position with stockholders' equity rising to $1.67 billion in 2023. The debt-to-equity ratio improved significantly, dropping from 0.68 in 2020 to 0.37 in 2023, showcasing enhanced financial stability. However, the total assets and liabilities have increased, which might imply higher financial leverage.78
Positive
Cash Flow
The company exhibits a positive trend in operating cash flow, reaching $459.3 million in 2023. Despite a decrease in free cash flow from $332.1 million in 2022 to $189 million in 2023, the operating cash flow to net income ratio remains strong, suggesting efficient cash generation relative to net income.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.13B | 5.15B | 4.42B | 3.89B | 3.08B | Gross Profit |
| 1.07B | 1.18B | 871.20M | 757.40M | 539.30M | EBIT |
| 526.00M | 636.50M | 420.00M | 328.00M | 68.40M | EBITDA |
| 579.00M | 700.20M | 468.40M | 377.60M | 120.60M | Net Income Common Stockholders |
| 335.00M | 518.00M | 300.00M | 220.90M | 9.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 388.00M | 370.70M | 304.10M | 266.90M | 665.00M | Total Assets |
| 5.73B | 3.62B | 3.12B | 2.86B | 3.03B | Total Debt |
| 4.00M | 623.20M | 775.50M | 674.10M | 1.17B | Net Debt |
| -384.00M | 252.50M | 471.40M | 407.20M | 508.80M | Total Liabilities |
| 3.90B | 1.94B | 1.94B | 1.75B | 2.11B | Stockholders Equity |
| 1.83B | 1.67B | 1.18B | 1.11B | 921.50M |
| Cash Flow | Free Cash Flow | |||
| 189.00M | 332.10M | 151.60M | 233.70M | 160.90M | Operating Cash Flow |
| 326.00M | 459.30M | 261.20M | 293.40M | 225.40M | Investing Cash Flow |
| -2.13B | -114.40M | -154.10M | -102.20M | -38.50M | Financing Cash Flow |
| 1.84B | -287.80M | -54.90M | -580.10M | -82.80M |
Terex Technical Analysis
Negative
34.18
Price Trends
42.27
Negative
45.85
Negative
50.04
Negative
Market Momentum
-1.07
Negative
36.98
Neutral
21.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEX, the sentiment is Negative. The current price of 34.18 is below the 20-day moving average (MA) of 39.16, below the 50-day MA of 42.27, and below the 200-day MA of 50.04, indicating a bearish trend. The MACD of -1.07 indicates Negative momentum. The RSI at 36.98 is Neutral, neither overbought nor oversold. The STOCH value of 21.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.38B | 7.23 | 19.13% | 1.90% | -0.47% | -34.74% | |
74 Outperform | $121.44B | 19.83 | 27.91% | 1.38% | -20.93% | -34.33% | |
73 Outperform | $40.68B | 10.41 | 41.27% | 2.42% | 0.14% | 444.36% | |
68 Neutral | $5.60B | 8.36 | 17.34% | 2.18% | 11.36% | 13.78% | |
66 Neutral | $146.13B | 13.87 | 55.36% | 1.81% | -3.36% | 9.59% | |
66 Neutral | $48.48B | 11.69 | 24.93% | 1.33% | -4.29% | -9.76% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% |
* Industrials Sector Average
Performance Comparison
TEX
Terex
34.18
-29.96
-46.71%
CAT
Caterpillar
288.08
-79.85
-21.70%
CMI
Cummins
277.62
-16.33
-5.56%
DE
Deere
429.86
25.12
6.21%
OSK
Oshkosh
82.58
-42.22
-33.83%
PCAR
Paccar
90.88
-26.82
-22.79%
Terex Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -28.48% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the ESG segment and positive backlog and bookings, alongside challenges in legacy segments and European markets. Despite some headwinds, the company's overall financial health and strategic growth outlook remain optimistic.Highlights
Record Second Highest EPS in Company History
Terex delivered earnings per share of $6.11 on sales of $5.1 billion for the fiscal year, marking the second highest full-year EPS performance in the company's history.
Strong Performance of ESG Segment
ESG achieved a 21.9% operating margin on net sales of $228 million and EBITDA of $51 million or 22% of sales in its first quarter with Terex.
Healthy Backlog and Book-to-Bill Ratio
Terex reported a backlog of $2.3 billion, with a book-to-bill ratio of 116% for legacy businesses, led by Aerial's component of AWP at 153%.
Positive Product Developments
New product innovations such as the Genie slab scissor and all-electric refuse collection body by Heil were highlighted as significant advancements.
Lowlights
Decline in Legacy Segment Sales
Sales in the legacy segments were down 17% year-over-year, largely due to industry-wide channel adjustments.
European Market Weakness
The company continues to see a generally weak economic environment in Europe, impacting segments like aggregates and material handling.
Higher Interest and Other Expenses
Interest and other expenses increased by $24 million in the fourth quarter due to acquisition-related financing.
Lower Free Cash Flow
Free cash flow for the quarter was $129 million, down from $135 million in the fourth quarter of 2023, due to higher interest expenses and increased net working capital.
Company Guidance
In the Terex Fourth Quarter 2024 Conference Call, the company reported an earnings per share (EPS) of $6.11 on sales of $5.1 billion, marking the second-highest full-year EPS in its history. The Aerial Work Platforms (AWP) segment saw a 3% growth in sales, while the Materials Processing (MP) segment experienced a 14.6% decline. The newly acquired Environmental Solutions Group (ESG) earned $51 million with a 22% EBITDA margin on $228 million in revenue. Terex's 2025 outlook anticipates net sales of around $5.4 billion, with a segment operating margin near 12% and EBITDA of roughly $660 million. The company plans to achieve at least $25 million in operational run-rate synergies by the end of 2026 through ESG integration. Additionally, Terex expects its free cash flow to increase to between $300 million and $350 million in 2025, driven by working capital reductions and ESG contributions.Terex Corporate Events
M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Terex Reports Strong Q4 2024 Financial Results
Positive
Feb 6, 2025
In its financial results for the fourth quarter and full-year 2024, Terex reported full-year sales of $5.1 billion and adjusted earnings per share of $6.11. The company declared a quarterly cash dividend of $0.17 per share. Despite challenges from industry-wide channel adjustments, Terex’s Environmental Solutions Group (ESG) contributed strongly in the fourth quarter, following its acquisition on October 8, 2024. Looking to 2025, Terex expects net sales between $5.3 and $5.5 billion and earnings per share between $4.70 and $5.10, as it continues to integrate ESG and anticipate growth in its Utilities segment.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.