Company Reports

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.

2023 is shaping up to be another solid year for narrow-moat-rated Terex. Solid demand and supply chain improvements gave management confidence to raise guidance on both the top and bottom lines during its most recent earnings release, and once again we project double-digit sales and earnings growth this year.

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.

Terex reported strong results across the board, as demand in its aerial platforms and materials processing businesses continued to strengthen. Terex’s aerial business grew by 26% year on year, while materials processing increased 21% year on year. Supply chains continued to pressure the company throughout the fourth quarter, but management effectively managed price/cost, leading to strong margin performance in both of its segments. Operating margins in the aerial business expanded 320 basis points to 8%, while the materials processing segment improved 200 basis points to 15.8%.

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 think 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’re raising our fair value estimate to $45.50 from $42 previously, following Terex's 2022 investor day. We’ve elected to give Terex more credit on both the sales and margin front toward the back half of our explicit forecast. Our main takeaway from Terex’s investor day is that management is confident it has the right portfolio in place to drive greater sales growth and margin expansion by 2027. Recall that the company divested several underperforming businesses in the last decade and has refocused its efforts around two segments—aerial work platforms, or AWP, and materials processing, or MP.

Our $42 fair value estimate remains intact following Terex's third-quarter results. The company reported solid top-line growth of 12.7% year on year, thanks to strong demand across its end markets. In aerial equipment, the story was centered around the replacement cycle. Sales in the segment grew 15.7% year on year to $663 million. Average fleet ages are at elevated levels currently, creating strong demand for Terex's Genie products. The materials processing business saw sales rise 9.4% year on year to $458 million, as demand for aggregates was solid.

Terex provides customers an extensive product portfolio consisting of aerial lifts and materials processing equipment. We think 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 reported solid second-quarter results, leading us to raise our fair value estimate to $42 from $41.50 previously. We tweaked our near-term margin expectations based on Terex’s ability to offset rising costs. Looking to the back half of the year, we think Terex can increase prices by a high-single-digit percentage, supporting our 9.3% operating margin projection for 2022, approximately 20 basis points higher than our previous estimate.