NYSE:TEX
TEREX CORP
A premier manufacturer of mobile material handling equipment including cranes and lifts serving global construction and industrial sectors.
Key Metrics
Investment Thesis
Bull Case
Terex offers attractive value through its diversified product lines that are essential for ongoing infrastructure investment globally. The company's ability to generate $440M in operating cash flow provides a solid buffer for debt servicing and potential share repurchases, which totaled $56M last year. A return to previous net income highs could yield significant upside if the construction sector recovers from recent headwinds.
Bear Case
The sharp decline in net income over the last two years signals deteriorating profitability or increased cost pressures that warrant caution. High interest expense relative to earnings reduces the effective return on equity and limits flexibility for aggressive expansion. The large retained earnings deficit of $2.14B suggests a long history of capital allocation challenges or past losses impacting the balance sheet stability.
About TEREX CORP
Terex Corporation is a global leader in mobile material handling equipment, offering cranes, lifts, aerial work platforms, and rigging solutions. Serving construction, industrial, utility, and municipal markets worldwide, the company provides essential machinery for infrastructure development and heavy lifting operations.
Analysis
Management Discussion
While Terex generated robust operating cash flow of $440M, net income contracted sharply from $518M in 2023 to $221M in 2025, highlighting margin pressure or one-time charges. The company maintained a healthy liquidity position with $772M in cash but faced heavy financing outflows and significant non-operating losses impacting overall profitability. Despite the drop in net profit, the business continues to generate strong free cash flow relative to its revenue base.
Industry Overview
The mobile material handling equipment industry is cyclical and closely tied to global GDP growth, construction spending, and energy infrastructure projects. Companies in this space compete on technology innovation, service network reach, and brand reputation to secure contracts in competitive markets. Regulatory standards for safety and environmental compliance continue to shape product development cycles and operational costs.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $4.42B | $5.15B | $5.13B | $5.42B |
| Cost of Revenue | $3.55B | $3.97B | $4.06B | $4.37B |
| Gross Profit | $871.2M | $1.18B | $1.07B | $1.05B |
| Operating Expenses | $451.2M | $540.1M | $542.0M | $576.0M |
| Operating Income | $420.0M | $636.5M | $526.0M | $475.0M |
| R&D | $55.8M | $66.7M | $25.0M | $39.0M |
| G&A | $451.2M | $540.1M | $542.0M | $576.0M |
| Stock-Based Comp | $30.3M | $43.6M | $30.0M | $32.0M |
| D&A | $47.2M | $56.4M | $82.0M | $157.0M |
| Depreciation | $42.4M | $51.7M | $58.0M | $69.0M |
| Amortization | $2.6M | $2.6M | $21.0M | $82.0M |
| Other OpEx | $-55.8M | $-66.7M | $-25.0M | $-39.0M |
| Non-Operating Income | $-53.4M | $-56.8M | $-118.0M | $-183.0M |
| Interest Expense | $49.1M | $63.3M | $89.0M | $177.0M |
| Interest Income | $2.8M | $7.6M | $13.0M | $12.0M |
| Pre-Tax Income | $366.6M | $579.7M | $408.0M | $292.0M |
| Income Tax | $66.4M | $63.0M | $73.0M | $71.0M |
| Continuing Ops | $300.2M | $516.7M | $335.0M | $221.0M |
| Discontinued Ops | $0 | $1.3M | $0 | $0 |
| Net Income | $300.0M | $518.0M | $335.0M | $221.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $300.0M | $518.0M | $335.0M | $221.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.96B | $2.25B | $2.32B | $2.73B |
| Cash & Equivalents | $304.1M | $370.7M | $388.0M | $772.0M |
| Inventory | $988.4M | $1.19B | $1.15B | $1.11B |
| Other Current Assets | $669.5M | $688.5M | $785.0M | $844.0M |
| Long-Term Assets | $1.16B | $1.37B | $3.41B | $3.41B |
| PP&E (Net) | $465.6M | $569.8M | $714.0M | $760.0M |
| Intangibles | $17.4M | $15.7M | $1.11B | $1.03B |
| Goodwill | $284.4M | $294.6M | $1.09B | $1.09B |
| Operating Leases | $89.4M | $126.0M | $136.0M | $126.0M |
| Other LT Assets | $299.3M | $364.2M | $360.0M | $410.0M |
| Total Assets | $3.12B | $3.62B | $5.73B | $6.14B |
| Current Liabilities | $998.6M | $1.12B | $1.07B | $1.19B |
| Accounts Payable | $624.6M | $702.6M | $580.0M | $683.0M |
| Current Leases | $26.3M | $28.4M | $31.0M | $33.0M |
| Deferred Revenue | — | — | $20.0M | $21.0M |
| Other Current Liab | $347.7M | $388.2M | $442.0M | $450.0M |
| Long-Term Liabilities | $938.3M | $824.0M | $2.83B | $2.86B |
| LT Operating Leases | $62.8M | $92.4M | $103.0M | $96.0M |
| Other LT Liab | $875.5M | $731.6M | $2.71B | $2.74B |
| Total Liabilities | $1.94B | $1.94B | $3.90B | $4.04B |
| Shareholders' Equity | $1.18B | $1.67B | $1.83B | $2.10B |
| Retained Earnings | $1.20B | $1.67B | $1.96B | $2.14B |
| AOCI | $-341.6M | $-287.1M | $-382.0M | $-265.0M |
| Treasury Stock | $560.3M | $622.4M | $672.0M | $722.0M |
| Total L&E | $3.12B | $3.62B | $5.73B | $6.14B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $300.0M | $518.0M | $335.0M | $221.0M |
| Non-Cash Adjustments | $-358.4M | $-302.5M | $340.0M | $61.0M |
| Working Capital Changes | $319.6M | $243.8M | $-349.0M | $158.0M |
| Cash from Operations | $261.2M | $459.3M | $326.0M | $440.0M |
| Cash from Investing | $-154.1M | $-114.4M | $-2.13B | $32.0M |
| Share Buybacks | $101.3M | $62.8M | $49.0M | $56.0M |
| Dividends Paid | $35.6M | $43.2M | $46.0M | $45.0M |
| Cash from Financing | $-54.9M | $-287.8M | $1.84B | $-123.0M |
| FX Effect | $-15.0M | $9.5M | $-19.0M | $35.0M |
| Net Change in Cash | $37.2M | $66.6M | $17.0M | $384.0M |
| Beginning Cash | $266.9M | $304.1M | $371.0M | $388.0M |
| Ending Cash | $304.1M | $370.7M | $388.0M | $772.0M |
Frequently Asked Questions
How does TEREX CORP make money?
The company's revenue is primarily driven by its core manufacturing segments for cranes, aerial work platforms (lifts), and rigging products. Additional revenue streams include service parts, aftermarket support, and specialized solutions for utility and municipal clients. The financial profile suggests a focus on high-value industrial machinery with significant gross margins relative to total revenue.
What are the main risks for TEX?
Significant exposure to high interest expenses totaling $177M poses a threat to net income during periods of rising rates or increased leverage. Volatility in the global construction and industrial cycles can lead to revenue fluctuations, as seen in the decline from 2023 to 2025. The substantial accumulated other comprehensive loss of $265M indicates potential foreign exchange or valuation risks affecting shareholders' equity.
What is TEX's competitive advantage?
Terex benefits from a diversified global footprint that mitigates regional economic downturns in construction or energy sectors. Its extensive portfolio of mobile material handling solutions allows it to capture value across various end-user industries, from utilities to heavy civil works. Strong brand recognition and a robust dealer network provide stable aftermarket revenue streams essential for long-term profitability.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.