Start here if you're new
what it is
Terex makes lifts, cranes, and other heavy machines for construction, utility, and materials jobs.
how it gets paid
Last year Terex made $5.4B in revenue. Aerials was the main engine at $3.1B, or 58% of sales.
why it's growing
Revenue grew 5.7% last year. Actual EPS was $1.12 versus $1.08 expected. Gross margin was 19.6%.
what just happened
Terex beat by 3.7%, and the quarter still printed $4.1B of revenue.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
12.2x trailing p/e — the market's not buying it — or you found a deal
1.5% dividend yield — cash in your pocket every quarter
9.0% return on capital — nothing to write home about
xvary composite: 54/100 — below average
What they do
Terex makes lifts, cranes, and other heavy machines for construction, utility, and materials jobs.
Terex is 58% Aerials, 37% Materials Processing, and 5% Environmental Solutions. That split gives you scale across two big job types, not one. You are not buying a toy maker. You are buying a business where the mix is the story.
How they make money
$5.4B
annual revenue · their business grew +5.7% last year
Aerials
$3.1B
Materials Processing
$2.0B
Environmental Solutions
$0.3B
The products that matter
access equipment for construction
aerial work platforms
part of a $5.4B revenue base
this is the cyclical exposure management is trying to reduce. the page does not provide segment revenue, which is exactly why you should focus on the strategic direction rather than pretend the mix is more precise than it is.
portfolio shift
utility and specialty vehicle exposure
REV deal and adjacent equipment
58% ownership · $425M cash
terex holders are set to own 58% of the combined company, and terex is paying $425M in cash to get there. that tells you the pivot toward utilities, waste, and emergency markets is not a small bolt-on.
strategic pivot
cranes and industrial machinery
core equipment portfolio
6.6% net margin
the rest of the machinery base still has to carry the business while the portfolio changes. on a 6.6% net margin, you do not need much cost pressure before earnings feel it.
margin sensitive
Key numbers
$53
target price
That sits 11% below $59.63, so the stock is priced above the target.
12.2x
earnings multiple
You pay $12.20 for each $1 of trailing profit. That is not cheap for a cyclical machine maker.
$2.6B
long-term debt
Debt equals 40% of capital. That leaves less room if orders slow.
1.5%
dividend yield
The payout is small. You are buying movement first and income second.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $2.6B (40% of capital)
- net profit margin 7.1% — keeps 7 cents of every dollar in revenue
- return on equity 12% — $0.12 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in TEX 3 years ago → it's now worth $12,490.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Terex beat by 3.7%, and the quarter still printed $4.1B of revenue.
Actual EPS was $1.12 versus $1.08 expected. Gross margin was 19.6%, so the beat came from real operating work, not luck.
$4.1B
revenue
$1.12
eps
19.6%
gross margin
the beat
The 3.7% beat matters because it shows the bar was cleared, not missed.
-
terex recently announced various strategic measures.the biggest was an agreement to merge with rev group in a stock and cash transaction to establish a specialty equipment manufacturer. under terms of the pending transaction (expected to close during the first half of 2026), terex will issue.9809 of a share for each rev group stock held.
-
upon closing, terex investors will own 58% of the new company, which will trade under the ticker tex.
-
and the manufacturer will also pay $425 million in cash.
-
concurrently, it is seeking options to exit the aerials business.together with the late-2024 acquisition of environmental solutions group (a maker of refuse collection vehicles), these measures would alter the composition of the company’s assets.
-
the transactions help in many ways.the merger and simultaneous exit from the aerials business should reduce terex’s presence in cyclical markets and enhance business in resilient growing arenas, including emergency, waste, utilities, environmental, and materials processing.
source: company earnings report and Yahoo Finance, 2026
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What could go wrong
the #1 risk is the REV Group merger and portfolio reset failing to make terex less cyclical.
med
REV deal gets delayed, challenged, or diluted
H1 2026 is the timeline on the page. if closing slips, you are left with the old Terex longer than the market expected.
terex holders are supposed to own 58% of the combined company, and terex is paying $425M in cash. if the deal stumbles, both the strategic logic and the cash commitment become more sensitive.
med
tariffs and input costs hit a thin margin base
management has already flagged tariff pressure. with quarterly margin at 4.1% and full-year net margin at 6.6%, this is not a business with a lot of room for cost surprises.
you do not need a collapse in demand for earnings to disappoint. a few points of cost pressure can do the job when profitability starts this low.
med
the aerials exit drags or destroys value
selling or shrinking a cyclical business sounds clean on paper. in real life, exits can take time, distract management, and come at the wrong price.
this page does not quantify aerials revenue, which means you should assume lower visibility here. the strategy may still be right, but the path can get messy.
Between the $425M cash payment, a still-thin 4.1% quarterly margin, and an H1 2026 close target, Terex does not need a macro disaster to miss expectations — it just needs the transition to get more expensive or slower.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
REV merger timing
H1 2026 is the clock. if the close moves, the whole "less cyclical Terex" pitch gets pushed out with it.
risk
tariff pass-through
with a 4.1% quarterly margin, even modest cost inflation matters. watch whether management can hold the line on pricing.
trend
EPS recovery versus revenue growth
the street expects $5.65 EPS on $6B revenue. if sales improve and earnings do not, the rerating case weakens fast.
metric
institutional selling pressure
137 buyers versus 159 sellers is not a revolt, but it is not accumulation either. watch if that gap narrows.
Analyst rankings
risk profile
average
stability score 3 means TEX sits around the middle on balance-sheet and price risk. in human-speak, this is not a bunker stock and not a chaos stock.
earnings predictability
35 / 100
analysts do not see a smooth line here. when predictability is 35/100, quarterly upside and downside both stay very live.
source: institutional data
Institutional activity
137 buyers vs. 159 sellers in 3q2025. total institutional holdings: 67.1M shares.
source: institutional data
Price targets
3-5 year target range
$25
$80
$60
current price
$53
target midpoint · 11% from current · 3-5yr high: $110 (+85% · 17% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive