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Terex Corp TEX

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Terex Reports Strong Order and Backlog Growth in Q1; Raising FVE, but Shares Still Rich

Analyst Note

| Brian Bernard, CFA, CPA |

Terex reported solid first-quarter results, as the company continues its path to recovery following a challenging fiscal 2020. Revenue grew roughly 4% year over year (up 10% sequentially) as Terex saw strong recovery in its global end markets. Bookings increased an impressive 101% year over year, and Terex's backlog, now valued at over $2 billion, is up 104% year over year and 50% sequentially. The book/bill ratios were also strong, with aerial work platforms at 202% and materials processing at 149%. While we think these levels of growth are unsustainable over the long run, we are encouraged by the strong rebound Terex is experiencing.

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Company Profile

Business Description

Based in Westport, Connecticut, Terex is a global manufacturer of cranes, materials processing equipment, and aerial work platforms. Its current composition is a result of numerous acquisitions over several decades and a recent shift in focus to its two core segments, after divesting of a handful of underperforming businesses. These remaining segments see heavy demand in nonresidential construction as well as in maintenance, manufacturing, energy, and materials management. North America is its largest market, accounting for 57% of 2020 revenue; Western Europe accounts for 20%, Asia-Pacific 17%, and the rest of world 6%.

Contact
45 Glover Avenue, 4th Floor
Norwalk, CT, 06850
T +1 203 222-7170
Sector Industrials
Industry Farm & Heavy Construction Machinery
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 8,200

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