Terex (TEX) stock price is $50.72, down 0.53% on the day, as of Oct 19, 2026. It has a market cap of $5.76Bn and a P/E ratio of 38.63, and is classified in the Heavy Equipment industry (Industrials sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap5.76 Bn
P/E38.63
P/S0.86
Div. Yield0.01
Total Debt (Qtr)2.69 Bn
Revenue Growth (1y) (Qtr)50.50
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About
Terex is a global industrial equipment manufacturer of materials processing machinery waste and recycling solutions mobile elevating work platforms and equipment for the electric utility industry. The company designs builds and supports products used in maintenance manufacturing energy waste and recycling minerals and materials management construction and the entertainment industry. Terex provides lifecycle support to customers through its global parts and services…
Terex is a global industrial equipment manufacturer of materials processing machinery waste and recycling solutions mobile elevating work platforms and equipment for the electric utility industry. The company designs builds and supports products used in maintenance manufacturing energy waste and recycling minerals and materials management construction and the entertainment industry. Terex provides lifecycle support to customers through its global parts and services organization and offers complementary digital solutions designed to help customers maximize their return on investment. Certain Terex products and solutions enable customers to reduce their environmental impact including electric and hybrid offerings that deliver quiet and emission-free performance products that support renewable energy and products that aid in the recovery of useful materials from various types of waste. Products are manufactured in North America Europe and Asia Pacific and sold worldwide.
Terex generates revenue through the design manufacture service and marketing of specialized industrial equipment across its reportable segments. The company sells products including refuse collection bodies hydraulic cart lifters automated carry cans compaction balers recycling equipment digger derricks insulated aerial devices crushers washing systems screens trommels apron feeders material handlers pick and carry cranes wood processing biomass and recycling equipment concrete mixer trucks concrete pavers conveyors aerial work platform equipment telehandlers and related components and replacement parts. Terex also provides parts and service support digital solutions and facilitates financial transactions through Terex Financial Services to assist customers in the procurement of equipment. Revenue is derived from customers in the solid waste and recycling industry construction infrastructure quarrying mining landscaping biomass production material handling maintenance utility tree care telecommunications cable and entertainment industries.
The company operates through the following segments: Environmental Solutions Material Processing and Aerials.
Environmental Solutions designs manufactures services and markets waste recycling and utility equipment and solutions including refuse collection bodies hydraulic cart lifters automated carry cans compaction balers recycling equipment digger derricks insulated aerial devices and cameras with integrated smart technology as well as related components and replacement parts and waste hauler software solutions. Customers use these products in the solid waste and recycling industry and for construction and maintenance of transmission and distribution lines tree trimming and foundation drilling applications. Significant manufacturing operations include refuse collection bodies hydraulic cart lifters and automated carry cans in Fort Payne Alabama compaction balers and recycling equipment in Vernon Alabama and utility products in Watertown and Huron South Dakota Changzhou China Waukesha Wisconsin and Birmingham Alabama.
Material Processing designs manufactures services and markets materials processing and specialty equipment including crushers washing systems screens trommels apron feeders material handlers pick and carry cranes wood processing biomass and recycling equipment concrete mixer trucks and concrete pavers conveyors and their related components and replacement parts. Customers use these products in construction infrastructure and recycling projects various quarrying and mining applications landscaping and biomass production industries material handling applications maintenance applications to lift equipment or material moving materials and equipment on rugged or uneven terrain lifting construction material and placing material at point of use. Significant manufacturing operations include mobile crushers in Omagh Northern Ireland mobile screens portable crushing and screening plants washing systems and recycling systems in Dungannon Northern Ireland mobile crushers mobile screens base crushers base screens modular and wheeled crushing and screening plants track conveyors washing systems and pick and carry cranes in Hosur India static crushers screens and telescopic conveyors in Subang Jaya Malaysia crushing and screening equipment in Durand Michigan mobile crushers and crushing chambers in Coalville England wood processing biomass and recycling equipment systems mobile screens and tracked conveyors in Campsie Northern Ireland fabrications sub-assemblies and steel kits in Ballymoney and Cookstown Northern Ireland wood processing biomass and recycling equipment systems in Newton New Hampshire material handlers in Bad Schönborn Germany and Hosur India concrete pavers in Canton South Dakota front discharge and rear discharge mini concrete mixer trucks in Fort Wayne Indiana volumetric concrete mixers in Olds Alberta Canada pick and carry cranes in Brisbane Australia and Hosur India mobile and static trommel screens in Monaghan Ireland and bulk material handling conveyors in Mount Vernon Missouri.
Aerials designs manufactures services and markets aerial work platform equipment and telehandlers as well as their related components and replacement parts. Products include portable material lifts portable aerial work platforms trailer-mounted articulating booms self-propelled articulating and telescopic booms scissor lifts and telehandlers. Aerial work platform equipment positions workers and materials easily and quickly to elevated work areas enhancing safety and productivity at height. Customers use these products to construct and maintain industrial commercial institutional and residential buildings and facilities for purposes within the entertainment industry and for other commercial operations as well as in a wide range of infrastructure projects. Significant manufacturing operations include aerial work platform equipment in Redmond and Moses Lake Washington Umbertide Italy Changzhou China Monterrey Mexico and Sanand India and telehandlers in Umbertide Italy and Monterrey Mexico.
Terex faces competition from various manufacturers across its product lines with no single competitor across all business segments. In Environmental Solutions primary competitors include Labrie Federal Signal Oshkosh for refuse collection bodies Cram-A-Lot Komar Wastebuilt for compactors and balers AMCS Geotab Ltyx Routeware Samsara for on board vehicle technology and Altec Dur-A-Lift Elliot Equipment Palfinger Posi+ and Time Manufacturing for utility equipment. In Materials Processing competitors include Astec Industries Deere Kleeman Keestrack Metso Portafill Rubble Master and Sandvik for crushing and screening equipment Azfab CDE Global Matec McLanahan Metso Phoenix Process Equipment Superior and Weir/Trio for washing systems Astec Industries Bandit Doppstadt Eggersmann Jenz Komptech Morbark and Vermeer for wood processing biomass recycling equipment and trommels Astec Telestack Deere Kleeman Edge Metso McCloskey Puzzulona Thor Superior and Weir/Trio for conveyors Atlas Caterpillar Liebherr and Sennebogen for material handlers Allen Engineering Gomaco Guntert & Zimmerman and Power Curbers for concrete pavers Beck Industrial Con-Tech Continental Mixer Oshkosh McNeilus for concrete mixer trucks Bay-lynx Cemen Tech Holcombe and Zimmerman for volumetric concrete mixers Ace Escorts Humma and TIDD for pick and carry cranes AMP Robotics Max-Al Steinert Tomra and Waste Robotics for robotic waste sorting technology and Albach Bandit Fecon Jenz Ufkes Vermeer for tree care and vegetation management equipment. In Aerials competitors include Dingli Haulotte and Oshkosh JLG for portable material lifts and portable aerial work platforms Dingli Haulotte JCB Linamar Skyjack Manitou MEC Oshkosh JLG Sinoboom XCMG and Zoomlion for boom lifts Dingli Haulotte JCB LGMG Linamar Skyjack MEC Oshkosh JLG Sinoboom XCMG and Zoomlion for scissor lifts and JCB Linamar Skyjack Manitou Gehl Merlo and Oshkosh JLG for telehandlers. Terex competes based on price performance and product reliability employing a best value strategy focused on improving customer return on invested capital through quality by design.
Terex serves a diverse customer base including national rental companies municipalities government agencies private contractors consumers industrial and commercial end users electric utilities tree care companies telecommunications and cable companies construction firms mining and quarrying operations landscaping and biomass production facilities material handling operations maintenance providers entertainment industry participants and waste and recycling facilities. The company does not have any single customer accounting for more than 10% of consolidated net sales with its largest customer accounting for less than 6% and top ten customers collectively accounting for less than 28% of consolidated net sales in 2025.
Sector:IndustrialsSector rationaleTerex is primarily a manufacturer of capital goods and heavy equipment, including cranes, aerial work platforms, and materials processing machinery sold to construction, mining, and utility customers. It also operates a distinct financial business line, Terex Financial Services, which facilitates the procurement of its equipment for customers, justifying a secondary sector classification.Industries:+2 moreHeavy EquipmentHeavy EquipmentPrimaryTerex manufactures heavy mobile equipment including telehandlers, pick and carry cranes, and material handlers used in construction, mining, and quarrying. These products are central to its Material Processing and Aerials segments, serving customers in infrastructure and heavy hauling applications.Industrial MachineryIndustrial MachinerySecondaryThe company produces general-purpose industrial machinery such as compaction balers, recycling equipment, crushers, washing systems, and conveyors used by manufacturers and industrial operators for materials processing.Agricultural MachineryAgricultural MachinerySecondaryTerex manufactures specialized machinery for the biomass production and landscaping industries, specifically wood processing and biomass recycling equipment.Classified using BQ-MICSCIK: 0000097216
Bull & bear
Investment Thesis
▲ Bull case
Terex's Specialty Vehicles segment, acquired through the REV merger, possesses a robust 2-year backlog that provides exceptional forward visibility for revenue generation, with management noting that current pricing in the backlog already incorporates 6-8% of value-added pricing to offset cost inflation, thereby insulating margins from near-term input cost pressures while enabling sequential improvement as production investments in Ocala, Florida and South Dakota come online in Q4 2026, which will reduce lead times and allow the company to work through its elevated backlog without requiring new bookings to sustain revenue growth; this structural advantage positions the segment to achieve high single-digit pro forma sales growth in 2026 despite conservative guidance, as the backlog acts as a built-in demand cushion that mitigates cyclical volatility in end-markets like construction and utilities.
The integration of REV is progressing ahead of schedule across all eight work streams, with synergy realization already on track to deliver $28 million in 2026 and a clear line of sight to a $75 million run-rate within 24 months post-merger, driven not only by overhead elimination but also by operational synergies such as shared supply chain initiatives and centralized sourcing with clawback mechanisms that are actively improving margins in Specialty Vehicles beyond initial estimates, as evidenced by Q1 EBITDA margin expansion of 160 basis points to 14.2% and management's confidence in year-over-year margin improvement exceeding 100 basis points throughout 2026 even with seasonal Q4 adjustments, indicating that the market is underestimating the pace and quality of cost-saving execution from the merger.
Terex's strategic shift toward North American resilience—where approximately 80% of revenue is generated and roughly 85% of that is manufactured in the United States—combined with its focus on resilient end-markets like utilities (poised for 8-15% annual CapEx growth through 2030 due to data center and AI-driven grid demand) and fire/emergency vehicles (benefiting from sustained demand and prebuy activity ahead of 2027 EPA changes), creates a durable revenue base that is less sensitive to global macroeconomic shocks and tariff fluctuations than the market currently prices in, as the company's domestic manufacturing footprint minimizes exposure to foreign exchange volatility and international supply chain disruptions while leveraging secular growth trends in infrastructure modernization and electrification.
The Materials Processing segment is demonstrating strong fundamental momentum beyond dealer restocking, with bookings up 38% pro forma and backlog increasing $205 million to $594 million, driven by genuine end-user demand from mega infrastructure projects and data center construction requiring mobile crushing and screening equipment, as highlighted by management's observation that rental-to-purchase (RPO) conversions are picking up—a signal of improving end-user confidence—and supported by improving margins (up 310 basis points to 15% in Q1) from volume, pricing actions, and efficiency gains, suggesting that the segment's high single-digit growth outlook may be conservative given the durability of public and private infrastructure investment tied to long-term government funding.
Terex's Specialty Vehicles segment, acquired through the REV merger, possesses a robust 2-year backlog that provides exceptional forward visibility for revenue generation, with management noting that current pricing in the backlog already incorporates 6-8% of value-added pricing to offset cost inflation, thereby insulating margins from near-term input cost pressures while enabling sequential improvement as production investments in Ocala, Florida and South Dakota come online in Q4 2026, which will reduce lead times and allow the company to work through its elevated backlog without requiring new bookings to sustain revenue growth; this structural advantage positions the segment to achieve high single-digit pro forma sales growth in 2026 despite conservative guidance, as the backlog acts as a built-in demand cushion that mitigates cyclical volatility in end-markets like construction and utilities.
The integration of REV is progressing ahead of schedule across all eight work streams, with synergy realization already on track to deliver $28 million in 2026 and a clear line of sight to a $75 million run-rate within 24 months post-merger, driven not only by overhead elimination but also by operational synergies such as shared supply chain initiatives and centralized sourcing with clawback mechanisms that are actively improving margins in Specialty Vehicles beyond initial estimates, as evidenced by Q1 EBITDA margin expansion of 160 basis points to 14.2% and management's confidence in year-over-year margin improvement exceeding 100 basis points throughout 2026 even with seasonal Q4 adjustments, indicating that the market is underestimating the pace and quality of cost-saving execution from the merger.
Terex's strategic shift toward North American resilience—where approximately 80% of revenue is generated and roughly 85% of that is manufactured in the United States—combined with its focus on resilient end-markets like utilities (poised for 8-15% annual CapEx growth through 2030 due to data center and AI-driven grid demand) and fire/emergency vehicles (benefiting from sustained demand and prebuy activity ahead of 2027 EPA changes), creates a durable revenue base that is less sensitive to global macroeconomic shocks and tariff fluctuations than the market currently prices in, as the company's domestic manufacturing footprint minimizes exposure to foreign exchange volatility and international supply chain disruptions while leveraging secular growth trends in infrastructure modernization and electrification.
The Materials Processing segment is demonstrating strong fundamental momentum beyond dealer restocking, with bookings up 38% pro forma and backlog increasing $205 million to $594 million, driven by genuine end-user demand from mega infrastructure projects and data center construction requiring mobile crushing and screening equipment, as highlighted by management's observation that rental-to-purchase (RPO) conversions are picking up—a signal of improving end-user confidence—and supported by improving margins (up 310 basis points to 15% in Q1) from volume, pricing actions, and efficiency gains, suggesting that the segment's high single-digit growth outlook may be conservative given the durability of public and private infrastructure investment tied to long-term government funding.
Terex's full-year 2026 guidance appears increasingly aggressive given the company's reliance on seasonal profitability phasing, with management stating that approximately 25% of full-year EPS is expected in Q2 due to improved profitability in Aerials and Environmental Solutions, yet Q1 Aerials EBITDA was nearly breakeven at 0.1% margin and Environmental Solutions margin declined to 18% from 20.3% year-over-year due to unfavorable volume mix, raising doubts about the speed and magnitude of the anticipated second-half margin expansion, especially if utility demand remains skewed toward the second half as indicated by customer prebuy behavior ahead of 2027 EPA changes, which could concentrate revenue and earnings in Q3-Q4 and exacerbate seasonal cash flow volatility despite improved net working capital metrics.
The Specialty Vehicles segment's high single-digit growth guidance for 2026 may be difficult to achieve without significant throughput increases, as management acknowledged that recent investments in Ocala, Florida (35% capacity increase for ladder trucks) and South Dakota (S-180 pumpers) will not come online until Q4 2026, meaning they will have minimal impact on full-year 2026 production capacity, leaving the segment dependent on pricing and modest unit growth from existing facilities, while the 2-year backlog creates a risk of order softening as lead times improve—a dynamic management itself noted could cause bookings to decline naturally as supply/demand equilibrium approaches a 1-year lead time target, potentially undermining revenue growth even if backlog conversion remains steady.
Tariff impacts, while described as negligible by management due to the offsetting effect of IEEPA expiration on 232 tariff calculations, may still pose a hidden risk to margin stability in internationally exposed segments like Materials Processing, where mobile crushing and screening equipment imported from the U.K. is explicitly noted as not subject to 232 tariffs but remains vulnerable to broader inflation in inbound freight costs and energy prices, especially given that the company's hedging program only covers 3-12 months ahead and leaves it exposed to spot-market freight volatility, which could erode the price/cost neutrality assumed in the Aerials and Specialty Vehicles segments if global logistics costs remain elevated.
The ongoing strategic review of the Aerials business, while framed as a value-maximization exercise, introduces material uncertainty regarding future capital allocation, as any potential divestiture could disrupt the company's pro forma growth trajectory and EBITDA outlook, which assumes flat Aerials performance for 2026; moreover, management's acknowledgment that they are engaging with multiple interested parties without sharing details suggests the process is advanced, yet the lack of transparency prevents investors from assessing whether a sale would yield proceeds sufficient to meaningfully reduce leverage (currently 2.4x net debt/EBITDA) or fund higher-return opportunities, creating an overhang on the stock that could weigh on valuation until resolution, particularly if the business is sold at a trough in its cyclical recovery.
Terex's full-year 2026 guidance appears increasingly aggressive given the company's reliance on seasonal profitability phasing, with management stating that approximately 25% of full-year EPS is expected in Q2 due to improved profitability in Aerials and Environmental Solutions, yet Q1 Aerials EBITDA was nearly breakeven at 0.1% margin and Environmental Solutions margin declined to 18% from 20.3% year-over-year due to unfavorable volume mix, raising doubts about the speed and magnitude of the anticipated second-half margin expansion, especially if utility demand remains skewed toward the second half as indicated by customer prebuy behavior ahead of 2027 EPA changes, which could concentrate revenue and earnings in Q3-Q4 and exacerbate seasonal cash flow volatility despite improved net working capital metrics.
The Specialty Vehicles segment's high single-digit growth guidance for 2026 may be difficult to achieve without significant throughput increases, as management acknowledged that recent investments in Ocala, Florida (35% capacity increase for ladder trucks) and South Dakota (S-180 pumpers) will not come online until Q4 2026, meaning they will have minimal impact on full-year 2026 production capacity, leaving the segment dependent on pricing and modest unit growth from existing facilities, while the 2-year backlog creates a risk of order softening as lead times improve—a dynamic management itself noted could cause bookings to decline naturally as supply/demand equilibrium approaches a 1-year lead time target, potentially undermining revenue growth even if backlog conversion remains steady.
Tariff impacts, while described as negligible by management due to the offsetting effect of IEEPA expiration on 232 tariff calculations, may still pose a hidden risk to margin stability in internationally exposed segments like Materials Processing, where mobile crushing and screening equipment imported from the U.K. is explicitly noted as not subject to 232 tariffs but remains vulnerable to broader inflation in inbound freight costs and energy prices, especially given that the company's hedging program only covers 3-12 months ahead and leaves it exposed to spot-market freight volatility, which could erode the price/cost neutrality assumed in the Aerials and Specialty Vehicles segments if global logistics costs remain elevated.
The ongoing strategic review of the Aerials business, while framed as a value-maximization exercise, introduces material uncertainty regarding future capital allocation, as any potential divestiture could disrupt the company's pro forma growth trajectory and EBITDA outlook, which assumes flat Aerials performance for 2026; moreover, management's acknowledgment that they are engaging with multiple interested parties without sharing details suggests the process is advanced, yet the lack of transparency prevents investors from assessing whether a sale would yield proceeds sufficient to meaningfully reduce leverage (currently 2.4x net debt/EBITDA) or fund higher-return opportunities, creating an overhang on the stock that could weigh on valuation until resolution, particularly if the business is sold at a trough in its cyclical recovery.