Company Reports

Terex is a niche manufacturer of small and medium-sized machines and other vocational vehicles that aid its customers in conducting various forms of work across construction sites, factories, quarries, infrastructure sites, and municipalities. The company has leading market shares in most of its categories owing to a strong portfolio of brands and highly engineered products. Historically, its Genie aerial work platform business has been the strongest performer, though also the most cyclical given its end market exposures (largely construction and other job sites). The material processing segment provides various mobile crushing and screening machinery used at quarries and in infrastructure and construction. Because of the high operating intensity of these products, Terex realizes somewhat higher operating margins from spares and repairs. More recently, Terex added its environmental solutions group after acquiring a nearly $1 billion refuse and recycling vehicle business from Dover Corporation, which it combined with certain utility truck assets. This business offers customers significant customization and also has the highest operating margins in the group. In 2026, Terex completed the acquisition of REV Group, a provider of specialty vehicles, including fire trucks, ambulances, and motor homes. The transaction is increasing the company's exposure to more resilient municipal spending, and Terex is pursuing strategic alternatives for Genie. The group expects more earnings resilience going forward.

Terex reported 8.5% revenue growth to $2.2 billion pro forma for its acquisition of REV Group (now specialty vehicles). Adjusted EBITDA margin of 12.0% compressed 20 basis points on shifting mix.

Terex is a niche manufacturer of small and medium-sized machines and other vocational vehicles that aid its customers in conducting various forms of work across construction sites, factories, quarries, infrastructure sites, and municipalities. The company has leading market shares in most of its categories owing to a strong portfolio of brands and highly engineered products. Historically, its Genie aerial work platform business has been the strongest performer, though also the most cyclical given its end market exposures (largely construction and other job sites). The material processing segment provides various mobile crushing and screening machinery used at quarries and in infrastructure and construction. Because of the high operating intensity of these products, Terex realizes somewhat higher operating margins from spares and repairs. More recently, Terex added its environmental solutions group after acquiring a nearly $1 billion refuse and recycling vehicle business from Dover Corporation, which it combined with certain utility truck assets. This business offers customers significant customization and also has the highest operating margins in the group. In 2026, Terex completed the acquisition of REV Group, a provider of specilaty vehicles, including fire trucks, ambulances, and motor homes. The transaction is increasing the company's exposure to more resilient municipal spending, and Terex is pursuing strategic alternatives for Genie. The group expects more earnings resilience going forward.

Terex reported sales of $1.7 billion, a 41% increase, flattered by the REV Group acquisition, but pro forma sales were up an impressive 11% on broad-based strength across segments. Adjusted EBITDA of $173 million (9.9% margin) compressed by 50 basis points due to tariffs and a poor mix in Aerials.

Terex is a niche manufacturer of small and medium-sized machines and other vocational vehicles that aid its customers in conducting various forms of work across construction sites, factories, quarries, infrastructure sites, and municipalities. The company has leading market shares in most of its categories owing to a strong portfolio of brands and highly engineered products. Historically, its Genie aerial work platform business has been the strongest performer, though also the most cyclical given its end market exposures (largely construction and other job sites). The material processing segment provides various mobile crushing and screening machinery used at quarries and in infrastructure and construction. Because of the high operating intensity of these products, Terex realizes somewhat higher operating margins from spares and repairs. More recently, Terex added its environmental solutions group after acquiring a nearly $1 billion refuse and recycling vehicle business from Dover Corporation, which it combined with certain utility truck assets. This business offers customers significant customization and also has the highest operating margins in the group. In 2026, Terex completed the acquisition of REV Group, a provider of specilaty vehicles, including fire trucks, ambulances, and motor homes. The transaction is increasing the company's exposure to more resilient municipal spending, and Terex is pursuing strategic alternatives for the aerials business. The group expects more resilience going forward.

Terex reported 2025 revenue of $5.4 billion, adjusted operating margin of 10.4%, and EPS of $4.93. Year-over-year comparisons are muddy given the company’s Environmental Solutions acquisition. The company also announced the closing of the REV Group acquisition.

Terex is a niche manufacturer of small and medium-sized machines and other vocational vehicles that aid its customers in conducting various forms of work across construction sites, factories, quarries, infrastructure sites, and municipalities. The company has leading market shares in most of its categories owing to a strong portfolio of brands and highly engineered products. Historically, its Genie aerial work platform business has been the strongest performer, though also the most cyclical given its end market exposures (largely construction and other job sites). The material processing segment provides various mobile crushing and screening machinery used at quarries and in infrastructure and construction. Because of the high operating intensity of these products, Terex realizes somewhat higher operating margins from spares and repairs. More recently, Terex added its environmental solutions group after acquiring a nearly $1 billion refuse and recycling vehicle business from Dover Corporation, which it combined with certain utility truck assets. This business offers customers significant customization and also has the highest operating margins in the group. In 2026, Terex completed the acquisition of REV Group, a provider of specilaty vehicles, including fire trucks, ambulances, and motor homes. The transaction is increasing the company's exposure to more resilient municipal spending, and Terex is pursuing strategic alternatives for the aerials business.

We are relaunching coverage of Terex with a fair value estimate of $77 per share. Terex is a leading manufacturer of industrial equipment serving a broad range of industries, including construction, infrastructure, public safety, and waste management and recycling.

Terex is a niche manufacturer of small and medium-sized machines and other vocational vehicles that aid its customers in conducting various forms of work across construction sites, factories, quarries, infrastructure sites, and municipalities. The company has leading market shares in most of its categories owing to a strong portfolio of brands and highly engineered products. Historically, its Genie aerial work platform business has been the strongest performer, though also the most cyclical given its end market exposures (largely construction and other job sites). The material processing segment provides various mobile crushing and screening machinery used at quarries and in infrastructure and construction. Because of the high operating intensity of these products, Terex realizes somewhat higher operating margins from spares and repairs. More recently, Terex added its environmental solutions group after acquiring a nearly $1 billion refuse and recycling vehicle business from Dover Corporation, which it combined with certain utility truck assets. This business offers customers significant customization and also has the highest operating margins in the group.

We will discontinue analyst coverage of Terex on or around July 8. We provide analyst research and ratings on over 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.

Terex’s sales increased 4% year on year to nearly $1.3 billion, thanks to solid demand in the aerial segment. Management raised 2024 sales and margin guidance for the segment. We're now more optimistic on Terex's long-term prospects. This led us to increase our fair value estimate by 7% to $59 per share, up from $55 previously.

Terex has an extensive product portfolio of aerial lifts and materials processing equipment. We believe it will continue to be one of the top companies in the heavy equipment industry, with strong brands that resonate with users across the construction, industrial, utility, mining, and residential markets. Customers value Terex’s high-quality and strong-performing products, which also have good residual values. In addition, Terex helps customers reduce their total cost of ownership through improved operational and fuel efficiency, limited machine downtime, and consistent parts availability.

Terex has an extensive product portfolio of aerial lifts and materials processing equipment. We believe it will continue to be one of the top companies in the heavy equipment industry, with strong brands that resonate with users across the construction, industrial, utility, mining, and residential markets. Customers value Terex’s high-quality and strong-performing products, which also have good residual values. In addition, Terex helps customers reduce their total cost of ownership through improved operational and fuel efficiency, limited machine downtime, and consistent parts availability.

We raised our fair value estimate by 2% to $55 (from $54 previously). The increase is largely due to our more positive view on Terex’s long-term opportunities.

Terex provides customers an extensive product portfolio consisting of aerial lifts and materials processing equipment. We believe Terex will continue to be one of the top companies in the heavy equipment industry, with strong brands that resonate with users across construction, industrial, utility, mining, and residential markets. Customers value Terex’s high-quality and strong-performing products, which also have good residual values. Terex also helps customers reduce their total cost of ownership through improved operational and fuel efficiency, limited machine down-time, and consistent parts availability.

We raised our fair value estimate to $54 from $51, following third-quarter earnings. Our stronger 2023 sales outlook and tweaks to our long-term sales and margin forecast, in addition to the time value of money, all contributed to our fair value estimate increase.

Terex provides customers an extensive product portfolio consisting of aerial lifts and materials processing equipment. We believe Terex will continue to be one of the top companies in the heavy equipment industry, with strong brands that resonate with users across construction, industrial, utility, mining, and residential markets. Customers value Terex’s high-quality and strong-performing products, which also have good residual values. Terex also helps customers reduce their total cost of ownership through improved operational and fuel efficiency, limited machine down-time, and consistent parts availability.

Terex provides customers an extensive product portfolio consisting of aerial lifts and materials processing equipment. We believe Terex will continue to be one of the top companies in the heavy equipment industry, with strong brands that resonate with users across construction, industrial, utility, mining, and residential markets. Customers value Terex’s high-quality and strong-performing products, which also have good residual values. Terex also helps customers reduce their total cost of ownership through improved operational and fuel efficiency, limited machine down-time, and consistent parts availability.

The key takeaway coming out of Terex’s second-quarter earnings was the company’s confidence in near-term demand. Management raised 2023 guidance for both sales and margins. Sales guidance came in above the top end of previous estimates for aerial work platforms and at the top end for materials processing. The biggest surprise was operating margin guidance. At the consolidated level, the company is now expecting operating margins in 2023 to land near 13%, up from 11.4%-11.8% previously. A lot of that is being driven by the aerial work platform segment, where operating margin guidance was raised to 13.8% from 11.5% in the first quarter. Terex’s guidance led us to raise our fair value estimate to $51 from $48.50 previously. We’re now expecting strong sales and margin performance in 2023.

Terex provides customers an extensive product portfolio consisting of aerial lifts and materials processing equipment. We believe Terex will continue to be one of the top companies in the heavy equipment industry, with strong brands that resonate with users across construction, industrial, utility, mining, and residential markets. Customers value Terex’s high-quality and strong-performing products, which also have good residual values. Terex also helps customers reduce their total cost of ownership through improved operational and fuel efficiency, limited machine down-time, and consistent parts availability.