Terex (NYSE:TEX) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Terex shares jumped after the company reported third-quarter adjusted EPS of $1.50, topping the $1.42 consensus, while revenue rose 58.4% year over year to $2.2 billion.
• Demand remained strong, with pro forma bookings up 52.7% to $2.3 billion, backlog near $7.0 billion and free cash flow increasing to $209 million. The board also authorized a new $500 million share-repurchase program.
• Terex narrowed its 2026 outlook, with projected adjusted EPS of $4.80–$5.00 below the $4.99 analyst estimate, potentially limiting further upside despite the earnings beat.

Terex Corporation (NYSE:TEX - Get Free Report) gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $49.68, but opened at $54.15. Terex shares last traded at $52.8670, with a volume of 2,555,189 shares.

The industrial products company reported $1.50 EPS for the quarter, beating analysts' consensus estimates of $1.42 by $0.08. Terex had a return on equity of 12.24% and a net margin of 2.23%. The company had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.16 billion. During the same quarter in the previous year, the business earned $1.50 earnings per share. The company's revenue for the quarter was up 58.4% on a year-over-year basis.

Terex Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Monday, November 9th will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Monday, November 9th. Terex's dividend payout ratio (DPR) is 34.69%.

Terex News Summary

Here are the key news stories impacting Terex this week:

• Positive Sentiment: Terex reported third-quarter sales of $2.2 billion, up 58.4% year over year on a reported basis and 11.6% on a pro forma basis. Adjusted diluted EPS of $1.50 exceeded the $1.42 consensus estimate, while adjusted EBITDA reached $286 million, with a 13.0% margin. Terex Reports Third Quarter 2026 Results
• Positive Sentiment: Demand indicators were strong: bookings rose 52.7% on a pro forma basis to $2.3 billion, and backlog stood at approximately $7.0 billion. Free cash flow increased to $209 million, up $79 million from the prior-year quarter. Terex Posts $2.2 Billion Third-Quarter Sales
• Positive Sentiment: The board authorized a new $500 million share-repurchase program. Buybacks, along with dividends, could support per-share results and signal management’s confidence in cash generation. Terex also returned $91 million to shareholders during the quarter. Terex Posts Strong Q3 Results, Boosts Outlook and Buybacks
• Neutral Sentiment: Terex narrowed its 2026 outlook to $8.0 billion-$8.2 billion in revenue, $930 million-$960 million in adjusted EBITDA and $360 million-$400 million in free cash flow. The revenue midpoint is close to, but slightly below, the $8.14 billion analyst estimate. Terex Full-Year 2026 Revenue Outlook
• Negative Sentiment: The projected 2026 adjusted EPS range of $4.80-$5.00 has a midpoint below the $4.99 FactSet estimate, which could limit upside if investors focus on the comparatively cautious earnings outlook. Terex 2026 Adjusted EPS Outlook

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. JPMorgan Chase & Co. lowered their price objective on shares of Terex from $68.00 to $58.00 and set a "neutral" rating for the company in a research report on Thursday, October 8th. Wells Fargo & Company cut their target price on Terex from $70.00 to $60.00 and set an "equal weight" rating on the stock in a research report on Monday. Truist Financial decreased their price target on Terex from $96.00 to $85.00 and set a "buy" rating on the stock in a research note on Monday, October 5th. Citigroup lowered their price target on Terex from $80.00 to $65.00 and set a "buy" rating for the company in a research report on Monday, October 12th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Terex in a research note on Thursday, October 15th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $74.73.

Institutional Investors Weigh In On Terex

A number of hedge funds have recently added to or reduced their stakes in TEX. BlackRock Inc. purchased a new position in Terex in the 2nd quarter valued at approximately $1,063,541,000. Freestone Grove Partners LP acquired a new stake in shares of Terex in the second quarter valued at $116,558,000. Arrowstreet Capital Limited Partnership raised its stake in shares of Terex by 11,448.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,238,924 shares of the industrial products company's stock valued at $73,220,000 after acquiring an additional 1,228,196 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Terex by 29.4% in the first quarter. Dimensional Fund Advisors LP now owns 4,442,435 shares of the industrial products company's stock valued at $262,527,000 after purchasing an additional 1,008,444 shares during the period. Finally, Bank of New York Mellon Corp purchased a new position in Terex in the second quarter valued at $68,204,000. 92.88% of the stock is currently owned by institutional investors and hedge funds.

Terex Stock Performance

The stock has a market capitalization of $6.05 billion, a PE ratio of 27.01, a price-to-earnings-growth ratio of 0.94 and a beta of 1.47. The company has a quick ratio of 0.93, a current ratio of 1.82 and a debt-to-equity ratio of 0.54. The stock has a fifty day moving average of $57.76 and a 200-day moving average of $61.94.

About Terex

Terex Corporation NYSE: TEX is a global manufacturer of equipment used in construction, infrastructure development, utilities, recycling and material processing. The company designs and produces machinery intended to help customers build, maintain and improve transportation networks, commercial sites, utility systems and industrial facilities.

Terex operates primarily through its Aerial Work Platforms and Materials Processing businesses. Its products include aerial lifts, telehandlers and other access equipment, as well as crushing, screening, conveying, washing, recycling and environmental-processing machinery.

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