Terex Corp

Terex maintains a leveraged capital structure with $2.75 billion in long-term debt against $4.82 billion in total equity, resulting in a debt-to-equity ratio of 0.57. Liquidity is supported by a current ratio of 1.84, though the company holds only $392 million in cash and equivalents, leading to a negative net cash position. Operating cash flow turned negative at -$31 million in Q1 2026, driven by working capital changes including a $76 million increase in receivables and $29 million in inventory, partially offset by $64 million in trade payables. The company funded a $467 million acquisition and $26 million in capital expenditures through $235 million in new debt issuance, while continuing to pay $19 million in dividends.

Profitability metrics reflect significant headwinds, with an operating loss of $82 million and net loss of $89 million on $1.73 billion in revenue, yielding a negative operating margin. Return on equity stands at 4.58% and return on assets at 2.17%, both below typical industrial medians. The valuation snapshot shows a P/E of 29.85 and EV/EBITDA of 14.16, implying the market prices in future recovery or synergies from recent transactions despite current losses. The price-to-tangible book ratio of 122.17 suggests substantial intangible assets on the balance sheet, likely from recent acquisitions.

Revenue is generated across three primary segments: Aerials, Materials Processing, and Environmental Solutions. The company operates globally, with significant exposure to North America, Western Europe, and Asia-Pacific regions. Geographic diversification provides some hedge against regional economic cycles, but the company faces currency translation risks as it reports in USD while holding assets in multiple jurisdictions. The recent acquisition of the Environmental Solutions Group (ESG) has expanded the company’s footprint in waste management and recycling equipment, altering the segment mix.

Growth trajectory is mixed, with Q1 2026 revenue of $1.73 billion compared to prior periods. The company has pursued an acquisition-led growth strategy, notably the $467 million investment in Q1 2026 and the earlier ESG acquisition. However, integration risks and the cyclical nature of the construction and infrastructure markets pose challenges to consistent top-line expansion. The company’s backlog and order flow are sensitive to government spending priorities and general economic conditions, which remain volatile.

Risk factors include medium liquidity and dilution risks, with key flags noting negative net cash and potential offering risks. The company faces significant integration challenges from the REV Group merger and ESG acquisition, with risks related to realizing anticipated benefits and managing expanded operations. Debt covenants and the need to service $2.75 billion in long-term debt constrain financial flexibility. Supply chain disruptions, tariff impositions, and cybersecurity threats further complicate the operational landscape.

Recent events include the filing of Q1 2026 results, highlighting the negative operating cash flow and acquisition activity. Analyst sentiment remains cautiously optimistic, with a mean price target of $77.71 and a median of $80.00, suggesting upside from the current $68.65 market price. The mean recommendation of 2.20 indicates a buy-leaning consensus, with 4 strong buys and 5 buys versus 5 holds. The upcoming earnings release on July 30, 2026, will be a critical catalyst for reassessing integration progress and profitability trends.

Terex generated $5.4 billion in FY2025 revenue, demonstrating significant scale within the industrial goods sector.

Terex's cash conversion metric of 1.99 exceeds the 75th percentile of its industrial goods peer group.

A current ratio of 2.30 suggests strong short-term liquidity to meet immediate financial obligations.

Terex reported $518 million in net income for FY2023, establishing a baseline for profitability analysis.

Net income declined 19.6% annually from FY2023 to FY2025, signaling a significant deterioration in profitability trends.

Long-term debt surged to $2.58 billion in FY2025, drastically increasing leverage compared to prior periods.

Terex faces medium-level risks regarding dilution, liquidity, and credit, highlighting potential financial instability.

Return on equity of 4.6% is significantly lower than the 10.5% cohort median, indicating poor capital efficiency.

Revenue $1.73B; Operating income -$82.0M.

• ▍Revenue $1.73B
• ▍Operating income -$82.0M
• ▍Net margin -5.1%

Revenue $4.10B; Operating income $338.0M.

• ▍Revenue $4.10B
• ▍Operating income $338.0M
• ▍Net margin 3.9%

Revenue $2.72B; Operating income $198.0M.

• ▍Revenue $2.72B
• ▍Operating income $198.0M
• ▍Net margin 3.4%

Revenue $5.42B; Operating income $475.0M.

• ▍Revenue $5.42B
• ▍Operating income $475.0M
• ▍Net margin 4.1%

Revenue $5.13B; Operating income $526.0M.

• ▍Revenue $5.13B
• ▍Operating income $526.0M
• ▍Net margin 6.5%

Revenue $5.13B; Operating income $526.0M.

• ▍Revenue $5.13B
• ▍Operating income $526.0M
• ▍Net margin 6.5%

Revenue $5.15B; Operating income $636.5M.

• ▍Revenue $5.15B
• ▍Operating income $636.5M
• ▍Net margin 10.1%

Revenue $5.15B; Operating income $637.0M.

• ▍Revenue $5.15B
• ▍Operating income $637.0M
• ▍Net margin 10.1%