Terex (NYSE:TEX) Posts Earnings Results, Beats Estimates By $0.14 EPS

Key Points

• Terex beat quarterly estimates, reporting EPS of $1.37 versus the $1.23 consensus and revenue of $2.24 billion versus $2.14 billion. Reported revenue increased 50.5% year over year, although adjusted EPS declined from $1.49 in the prior-year quarter.
• Management raised its 2026 outlook to $7.9–$8.2 billion in sales, $960 million–$1.0 billion in adjusted EBITDA, and adjusted EPS of $4.70–$5.10. Bookings rose 25% and backlog reached $6.9 billion, improving visibility into the second half.
• Headwinds remain: Environmental Solutions cut its second-half outlook because it no longer expects a significant refuse-vehicle pre-buy, while tariffs are pressuring Aerials. Terex shares fell about 3% after the results, despite analysts maintaining a “Moderate Buy” consensus.

Terex (NYSE:TEX - Get Free Report) issued its quarterly earnings results on Thursday. The industrial products company reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.14, Zacks reports. Terex had a net margin of 1.87% and a return on equity of 13.43%. The business had revenue of $2.24 billion for the quarter, compared to the consensus estimate of $2.14 billion. During the same quarter in the prior year, the company earned $1.49 EPS. The firm's quarterly revenue was up 50.5% on a year-over-year basis. Terex updated its FY 2026 guidance to 4.700-5.100 EPS.

Here are the key takeaways from Terex's conference call:

• Terex raised its 2026 guidance, now expecting $7.9–$8.2 billion in sales, $960 million–$1.0 billion in adjusted EBITDA, and adjusted EPS of $4.70–$5.10. The increase reflects strong first-half execution, higher Aerials volume, and improved Materials Processing performance.
• Second-quarter revenue rose 8.5% year over year on a pro forma basis to $2.2 billion, while adjusted EBITDA increased 10.7% to $269 million. Bookings climbed 25% and backlog reached $6.9 billion, providing substantial second-half visibility.
• Materials Processing delivered an 18.8% adjusted EBITDA margin, supported by strong U.S. mobile-crusher demand, favorable mix, and pricing discipline. Specialty Vehicles also posted record earnings performance as REV integration, throughput improvements, and planned capacity expansions progressed.
• Environmental Solutions lowered its second-half revenue outlook to low-single-digit growth because management no longer expects a material refuse-vehicle pre-buy ahead of 2027 EPA regulations. The segment’s second-quarter margin fell 250 basis points due to unfavorable mix, ramp-up inefficiencies, and lower absorption in the refuse business.
• Aerials bookings surged 71% year over year and the segment’s margin improved sequentially, but tariffs remain a significant headwind and full-year price-cost performance is expected to be neutral. Terex continues a strategic review of Aerials, with interest from multiple parties but no announced timeline or transaction.

Terex Trading Down 3.0%

Shares of TEX stock traded down $1.92 during trading hours on Thursday, reaching $62.64. The company had a trading volume of 2,191,390 shares, compared to its average volume of 1,588,280. Terex has a 1-year low of $41.70 and a 1-year high of $74.69. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.84 and a quick ratio of 0.88. The firm has a market cap of $7.15 billion, a price-to-earnings ratio of 29.97, a P/E/G ratio of 1.07 and a beta of 1.49. The company has a 50 day moving average of $65.10 and a 200 day moving average of $63.12.

Terex Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Tuesday, August 11th will be paid a $0.17 dividend. The ex-dividend date of this dividend is Tuesday, August 11th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.1%. Terex's dividend payout ratio is 32.54%.

Insiders Place Their Bets

In other Terex news, insider Joshua Gross sold 5,874 shares of the firm's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $61.53, for a total transaction of $361,427.22. Following the transaction, the insider owned 48,706 shares in the company, valued at approximately $2,996,880.18. This trade represents a 10.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Dimensional Fund Advisors LP raised its holdings in Terex by 2.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,433,991 shares of the industrial products company's stock worth $183,308,000 after purchasing an additional 76,028 shares during the period. Wellington Management Group LLP increased its position in shares of Terex by 17.9% in the 4th quarter. Wellington Management Group LLP now owns 2,798,109 shares of the industrial products company's stock valued at $149,363,000 after buying an additional 425,322 shares in the last quarter. Morgan Stanley raised its stake in Terex by 77.2% during the 4th quarter. Morgan Stanley now owns 1,669,042 shares of the industrial products company's stock worth $89,094,000 after buying an additional 727,277 shares during the period. Invesco Ltd. raised its stake in Terex by 1.0% during the 4th quarter. Invesco Ltd. now owns 1,620,342 shares of the industrial products company's stock worth $86,494,000 after buying an additional 16,377 shares during the period. Finally, Schonfeld Strategic Advisors LLC bought a new position in Terex during the fourth quarter worth about $69,802,000. Institutional investors own 92.88% of the company's stock.

Key Stories Impacting Terex

Here are the key news stories impacting Terex this week:

• Positive Sentiment: Terex reported adjusted second-quarter earnings of $1.37 per share, above estimates of $1.23–$1.25, while revenue of $2.24 billion also exceeded expectations of approximately $2.14 billion. Revenue increased 50.5% year over year on a reported basis, although pro forma sales growth was 8.5%. Terex Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its 2026 outlook to revenue of $7.9 billion–$8.2 billion and adjusted EBITDA of $960 million–$1.0 billion. The EPS range of $4.70–$5.10 is broadly in line with, and slightly above, the current consensus midpoint. Terex Reports Second Quarter 2026 Results
• Positive Sentiment: Bookings rose 25.2% pro forma year over year, and backlog reached $6.9 billion, supporting future demand visibility. Adjusted EBITDA was $269 million, representing a 12.0% margin.
• Neutral Sentiment: Brokerages maintain a consensus recommendation of “Moderate Buy,” suggesting analysts remain generally constructive on Terex’s longer-term outlook. Terex Receives Moderate Buy Consensus
• Negative Sentiment: GAAP net income was $110 million, or $0.96 per diluted share, versus $72 million, or $1.09 per share, a year earlier; adjusted EPS also declined from $1.49. The 90% book-to-bill ratio indicates shipments exceeded new orders during the quarter.
• Negative Sentiment: Reported insider activity has consisted of six sales and no purchases over the past six months, which may reinforce investor caution following the earnings release.

Analyst Upgrades and Downgrades

TEX has been the topic of a number of research reports. Morgan Stanley reiterated an "overweight" rating and set a $84.00 target price on shares of Terex in a research report on Wednesday, May 6th. Wall Street Zen cut shares of Terex from a "buy" rating to a "hold" rating in a research report on Saturday, May 9th. Citigroup upped their price objective on Terex from $75.00 to $80.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Evercore reiterated an "outperform" rating and issued a $81.00 price objective on shares of Terex in a research report on Monday, May 11th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Terex in a research note on Friday, July 17th. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $79.45.

Terex Company Profile

Terex Corporation is a global manufacturer of lifting and material-handling plant and equipment, serving a range of industries that includes construction, infrastructure, energy, manufacturing and shipping logistics. Its product portfolio encompasses aerial work platforms, rough terrain and tower cranes, port and cargo handling equipment, material processing machinery and utility products. These offerings are marketed under well-known brands such as Genie®, Terex® AWP, Terex® Cranes, Demag®, and Powerscreen®, and are designed to meet diverse application requirements from building sites to industrial facilities and ports.

Headquartered in Westport, Connecticut, Terex traces its roots back to 1933 and has grown through strategic acquisitions and organic expansion.

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