[AI Assisted]
Terex Corporation (TEX): Buy Now, OBBBA creates 3 tax incentives for TEX customers to buy and adds $200 bn of related fiscal stimulus
Investment Conclusion: Long-Term Value with Near-Term Headwinds and Significant Catalyst Potential
TEX is initiated a BUY, because the July 3, 2025-enacted tax bill presents several catalysts that should enable TEX to exceed sales, margins and profitability estimates currently factored in to 7/3/2025-closing price of $49.79.
TEX manufactures heavy industrial equipment such as mobile elevating work platforms, equipment for crushing, screening, conveying, and washing materials used in industries like aggregates, mining, recycling, and concrete, including concrete mixer trucks, as well as equipment for waste management, recycling, such as shredders, screeners, and utilities, through its recently completed ESG acquisition.
TEX employs 11,400 people, is headquartered in Westport, CT. As of 7/3/2025, TEX has the following metrics: Market cap of $3.4 billion, debt of $2.8 bn., cash of 0.39 bn, $28.15 cash per share, $4.54 book value, with TTM financials of FCF of $0.2 bn, $5.06 bn in sales, 19.8% gross profit, 10.8% EBITDA margin and $3.79 EPS. A $0.68 dividend payout in the trailing twelve months, yields a 1.38% dividend yield at a comfortable 13.2% payout ratio.
TEX’s customers include publicly traded equipment rental companies such as ASTE, URI and HRI, as well as publicly traded waste management services provider companies such as WM and RSG. TEX competes against CAT, DE, KMTU, MANI and MTW.
TEX recently popped up from its $36 price level to the current $49 price level, based on positive 1Q2025 earnings report. The market liked the increase in TEX backlog by $0.3 bn to $2.6 bn from $2.3 bn, despite large annual declines of 41.8% and 26.5% in aerials and materials processing segment sales.
The market is enthusiastic about TEX’s recent ESG acquisition, which is in the waste handling segment. In 1Q2025, ESG added $399 mm in 1Q2025 revenue, about $1.19 bn annualized, accreted 140 basis points to gross margin. For comparison, 2023 ESG generated $750 mm of EBITDA. TEX expects $25 mm in synergies and notes that ESG reduces cyclicality.
Nevertheless, new investors here, at 7/7/2025 opening price unknown as of 7/5/2025, would be entering low off the 52-week high of $69.04.
At July 5, 2025 the Yahoo consensus estimates were for EPS of $1.50 and $1.39 for 2Q22025 and 3Q2025, respectively and $4.68 and $5.58 in 2025 and 2026 respectively on $1.45 bn, $1.39 bn, $5.31 and 5.55 bn revenue for those same periods, based on 10 analysts for the quarterly estimates and eleven for the annual. TEX has surprised to the upside for each of the previous four (4) quarters. There have been six upwards EPS revisions in previous thirty days to each 2025 and 2026, one in the last seven days.
The July 3, 2025-U.S. Tax Act (One Big Beautiful Bill Act - OBBBA) provides massive tax incentives that could stimulate purchasers of heavy equipment to make and accelerate purchases, and drive sales, margins and profitability higher than currently expected.
One, the equipment that TEX manufactures is now 100% tax deductible in the year purchased, meaning customers pay less cash for the same equipment.
Two, structures that TEX equipment is used to purchase are temporarily fully deductible for tax purposes, again making those structures cost less cash in the year placed in service, meaning the end users of TEX equipment now have tax incentives to accelerate and increase building.
Three, purchasers of TEX equipment can deduct more interest, making financing TEX equipment purchases less expensive. The OBBBA also increases the deductibility of interest, increasing the limit on interest deduction, now computing the 30% limit on EBITDA instead of EBIT, meaning the base of the computing the limit is greater and the limit is higher, and therefore the deductions are higher, resulting in better after cash tax flow. This stimulates demand by making financing less expensive.
Furthermore, the OBBBA will increase U.S. government spending on air traffic by $12.5 bn, highways by $64 bn, and border wall by $46.5 bn, not to mention $78 mm in military funding; all incremental catalysts to purchase of TEX equipment. The OBBBA Federal fiscal stimulus is in addition to 2022-IRA’s $369 billion in spending and incentives, and the $280 bn through 2027 under the 2022-CHIPS Act.
July 5, 2025-Yahoo consensus estimates of EPS of $1.50 and $1.39 for 2Q22025 and 3Q2025, respectively and $4.68 and $5.58 in 2025 and 2026 respectively on $1.45 bn, $1.39 bn, $5.31 and $5.55 bn revenue for those same periods have been subject to six upwards EPS revisions in previous thirty days to each 2025 and 2026, one in the last seven days. Goldman and Baird recently upgraded with $66 and $60 price targets, as did UBS, albeit to neutral and a $48 price target.
Meanwhile EX trades at a 13.4 X TTM EPS, 10.6X 2025-Exp. EPS, and 8.9 2026-Exp. EPS, much less than the premium players CAT (21.1X and 18.9X) and DE (, and less than the 23 X S&P 500 EPS.
TEX has a good potential to continue its four quarter earnings upside surprise, grow sales and profits more than expected, enjoy valuation multiple expansion and receive further estimate and price target upgrades - all drivers of upward price appreciation.
TEX - BUY NOW.
Company Overview: Terex Corporation (TEX)
Terex Corporation is a global manufacturer of heavy equipment. TEX was founded in 1933, with roots in the Euclid Company. Terex coined its current name in 1970 and went public on the NYSE in 1991. Headquartered in Westport, Connecticut, USA, the company employs approximately 11,400 people globally.
In the trailing twelve months ended March 31, 2025, TEX generated $5.06 bn in sales, had a slightly declined from prior period gross margin of 19.8%, approximate EBITDA margin of 10.8%, and $3.72 EPS. TEX’s market capitalization as of 7/3/2025 was $3.3 billion, with $200.9 mm free cash flow to $2.7 bn in debt and $388.0 in cash. At 7/5/2025, TEX had $28.15 and $4.54 in book value and cash per share.
TEX’s customers include publicly traded equipment rental companies such as ASTE, URI and HRI, as well as publicly traded waste management services provider companies such as WM and RSG.
TEX’s products and segments include.
Aerials (Genie®): A range of mobile elevating work platforms (MEWPs) such as boom lifts, scissor lifts, and telehandlers. These machines are used to lifting people and materials to working heights in construction, industrial maintenance, and event setup. Materials Processing (MP): Equipment for crushing, screening, conveying, and washing materials used in industries like aggregates, mining, recycling, and concrete, including concrete mixer trucks. These machines are used to prepare raw materials for construction and infrastructure projects. Environmental Solutions (ES): This segment, which was expanded by the recent acquisition of the Environmental Solutions Group (ESG), includes equipment for waste management, recycling, such as shredders, screeners, and utilities through Terex Utilities, which produces equipment for electric grid and telecom infrastructure.
The Global Heavy Equipment and Construction Market Landscape
Terex operates within the vast and cyclical global construction and heavy equipment markets, which are influenced by macroeconomic conditions, government spending, and industrial investment.
Overall Construction Market (Global & Regional)
Global Construction Market:
Current Size (2024 Est.): Approximately $13.57 trillion. Forecast: Projected to grow at a Compound Annual Growth Rate (CAGR) of 6.50% between 2025 and 2034, reaching a value of around $25.47 trillion by 2034. Historical Trends: Has shown robust growth driven by increasing urbanization, population growth, and infrastructure development, but also experiences cyclicality tied to global economic health and interest rates. Heavy Construction Equipment Market (Global):
Current Size (2024 Est.): Reached $144.7 billion. Forecast: Expected to reach $214.5 billion by 2033, exhibiting a CAGR of 4.25% during 2025-2033. Key Drivers: Rapid infrastructure development globally, particularly in developing markets, and a growing emphasis on sustainable infrastructure. Geographic Segmentation and Forecasts:
North America Construction Market: Current Size (2024 Est.): Valued at $2.58 trillion. Forecast: Projected to grow to $2.76 trillion by 2025, and further to $3.53 trillion by 2030, with a CAGR of 5.0% from 2025 to 2030. Trends: Heavily driven by major government investments aimed at revitalizing infrastructure (e.g., IIJA), supporting a substantial portion of global construction. However, inconsistent permitting and policy shifts remain challenges. Europe Construction Market: Current Size (2024 Est.): Valued at $2.10 trillion. Forecast: Projected to grow to $2.28 trillion by 2025, and reach $2.78 trillion by 2030, with a CAGR of 4.0% from 2025 to 2030. Trends: Driven by strong government support and major infrastructure projects focused on renewable energy, transport, and sustainability. Faces challenges from material shortages, regulatory hurdles, and geopolitical uncertainties. Latin America Construction Market: Current Size (2025 Est.): Estimated at $709.79 billion. Forecast: Expected to reach $905.89 billion by 2030, at a CAGR of 5.0% during 2025-2030. Trends: Residential construction and the energy & utilities construction segment are emerging as key growth drivers. Asia-Pacific Construction Market: Current Size (2024 Est.): Valued at $5.69 trillion. Forecast: Predicted to reach $6.21 trillion by the end of 2025, and $8.64 trillion by 2030, at a CAGR of 6.8% from 2025 to 2030. Trends: Experiences dynamic growth driven by strong government funding, sustainability goals, regulatory developments, and digital innovation, with China dominating market share. U.S. Non-Residential Construction & Specialized Markets (Terex's Core Focus)
Current U.S. Non-Residential Construction Spending (May 2025 Seasonally Adjusted Annual Rate): Approximately $1.237 trillion. Forecast (2025 & 2026): Overall non-residential building construction spending is projected to slow, with modest gains of 2.2% in 2025 and 2.6% in 2026 (AIA Consensus). However, specific segments provide resilience: Industrial Factory Construction: This sub-segment is booming due to reshoring, with U.S. factory construction spending more than doubling from $90 billion annually in June 2022 to almost $190 billion annually in April 2025. U.S. Waste Management Market (2025 Est.): Approximately $118.5 billion. Projected to reach $147.0 billion by 2032, at a CAGR of 3.4%. U.S. Recycling Equipment Market (2023): Around $3.96 billion to $4.35 billion. Projected to reach $5.29 billion by 2030, growing at a CAGR of 4.2%. U.S. Electricity Transmission Capital Spending: Increased to $27.7 billion in 2023, nearly tripling since 2003, with continued growth expected due to data centers and renewable integration. Terex Financial Analysis
Terex's financial performance demonstrates the cyclicality inherent in the heavy equipment industry, with recent strong years giving way to anticipated near-term moderation, while maintaining a focus on cash flow and strategic growth.
Sales, Margins, and Profits
Trailing Twelve Months (TTM as of Q1 2025):
Net Sales (Revenue): ~$5.06 billion Gross Profit Percentage: ~19.77% Full Year 2024 Actuals vs. Full Year 2025 Guidance:
Copy of TEX 2024 Actual v. 2025 Guidance
TEX Analyst Estimates
At July 5, 2025 the Yahoo consensus estimates were for EPS of $1.50 and $1.39 for 2Q22025 and 3Q2025, respectively and $4.68 and $5.58 in 2025 and 2026 respectively on $1.45 bn, $1.39 bn, $5.31 and 5.55 bn revenue for those same periods, based on 10 analysts for the quarterly estimates and eleven for the annual.
Surprised to the upside for each of the previous four (4) quarters.
Six upwards EPS revisions in previous thirty days to each 2025 and 2026, one in the last seven days.
On May 13, 2025 and May 16, 2025 Baird and GS upgraded, with price targets of $60 and $66, respectively. On May 16, 2025, UBS, upgraded from sell to neutral and a $48 price target, reversing its April 7, 2025 downgrade with a $32 price target.
Segment-Specific Performance (Q1 2025 vs. Q1 2024):
Aerials: Net Sales: $450 million (down 41.8%); Adjusted Operating Margin: 3.0% (down from 14.9%). Impacted by "channel adjustment." Materials Processing: Net Sales: $382 million (down 26.5%); Adjusted Operating Margin: 10.0% (down from 14.0%). Lower volume and unfavorable mix. Environmental Solutions: Net Sales: $399 million (up significantly with ESG acquisition); Adjusted Operating Margin: 19.4% (strong, +420 bps pro forma). Key growth and margin driver. Balance Sheet Analysis
Total Assets (FY2024): ~$5.73 billion (reflects substantial increase from prior years, partly due to ESG acquisition). Total Current Assets (FY2024): ~$2.32 billion. Total Current Liabilities (FY2024): ~$1.12 billion. Cash & Equivalents (FY2024): ~$388 million. Total Debt (as of Q1 2025): ~$2.59 billion. Shareholder's Equity (as of Q1 2025): ~$3.27 billion. The balance sheet reflects a company that has invested significantly in growth (ESG acquisition) leading to higher assets and increased debt, but also maintains a healthy equity base.
Profitability & Efficiency Metrics
Copy of TEX Profitability and Efficiency Metrics
Debt Coverage Ratios
Debt to EBITDA (TTM): Approximately 2.59 billion / ~600 million (est FY24 EBITDA) = ~4.3x (This can vary based on exact EBITDA calculation). With FY25 EBITDA guidance of ~$660M, this would improve to ~3.9x. Interest Coverage Ratio: Given the higher interest expenses anticipated in 2025, the interest coverage ratio (EBIT/Interest Expense) is likely to decline from 2024 levels, reflecting the impact of financing the ESG acquisition and higher interest rates. Relative Comparison to Competitors (Financial Data - TTM Q1 2025 Est.)
Copy of TEX Valuation Comps
Observation: Terex generally trades at a lower P/E multiple than its larger, more diversified competitors (Deere, Caterpillar), particularly on a forward-looking basis. This suggests it is valued more conservatively relative to its earnings, potentially signaling undervaluation or reflecting higher perceived risk/cyclicality. While its debt is lower in absolute terms than DE and CAT, it's substantial relative to its market cap, and their debt structures (with finance arms) are different. Terex's ROE, while strong in recent years, is currently below the typical very high levels of the industry leaders like DE and CAT. The Environmental Solutions Group (ESG) Acquisition: A Strategic Pivot for Terex
The acquisition of the Environmental Solutions Group (ESG) by Terex Corporation (TEX) in October 2024 marked a significant strategic move, aimed at diversifying Terex's portfolio into less cyclical, higher-growth markets.
What Terex Paid for ESG
Purchase Price: Terex acquired ESG from Dover Corporation for $2.0 billion in an all-cash transaction. Net Purchase Price (after tax benefits): When adjusted for the present value of expected tax benefits of approximately $275 million, the net purchase price was $1.725 billion. Valuation Multiple: The acquisition represented approximately 8.4x ESG's 2024E earnings before interest, taxes, depreciation, and amortization (EBITDA), including expected run-rate synergies. What ESG Does and Who It Sells To
ESG is a global leader in the design and manufacturing of equipment and associated digital solutions for the solid waste and recycling industry. Its portfolio comprises several well-known brands, integrated into what ESG calls its "Connected Collections®" ecosystem:
Heil®: A leading manufacturer of refuse collection vehicles (RCVs), commonly known as garbage trucks. Marathon® Equipment: Produces waste compaction and recycling equipment, including industrial balers and trash compactors. 3rd Eye®: Provides technology solutions such as onboard vehicle safety camera systems, route management, and predictive maintenance software. Soft-Pak®: Offers waste hauler software solutions for customer service, billing, routing, and operational management. Curotto-Can®: Manufactures automated carry cans and Bayne® lifting products. ESG's Customer Base:
ESG sells its products and solutions to a diverse range of customers within the waste management and recycling sector:
Large National Publicly Traded Waste Haulers: Such as Waste Management, Inc. (WM) and Republic Services, Inc. (RSG). Smaller Regional and Local Haulers: Independent waste collection companies. Municipalities and Public Works Departments: City sanitation departments and public waste management entities. Recycling Centers and Material Recovery Facilities (MRFs): For their baling, compacting, and sorting equipment needs. Commercial and Industrial Businesses: That require on-site waste compaction solutions. ESG's Historic Financials (Prior to Acquisition)
Revenue (2023): ESG generated approximately $750 million of revenue in 2023. EBITDA (2024E): Based on the acquisition multiple, ESG's estimated EBITDA for 2024 was implicitly around $238 million ($2.0 billion purchase price / 8.4x EBITDA multiple). Consistent Growth & Resilient Performance: Dover (ESG's former parent) and Terex highlighted ESG's "track record of consistent, strong organic growth, resilient top-line performance through the cycle, as well as best-in-class margins and free cash flow conversion." Impacts on Terex's Business
The ESG acquisition has several significant strategic and financial impacts on Terex:
Revenue Contribution: ESG immediately added a substantial revenue stream. In Q1 2025, the newly formed Environmental Solutions (ES) segment (which includes ESG and Terex Utilities) generated $399 million in net sales, representing approximately one-third of Terex's total revenue for the quarter. Margin Accretion: ESG operates with a higher margin profile than Terex's traditional segments. In Q1 2025, the ES segment reported an adjusted operating margin of 19.4%, a significant improvement of 420 basis points over the pro forma Q1 2024. Terex expects ESG's EBITDA margin (including run-rate synergies) to add 140 basis points of margin accretion to the overall company. Reduced Cyclicality: The waste management industry is considered less cyclical than traditional construction. By adding ESG, Terex aims to diversify its end-market exposure and reduce the overall cyclicality and volatility of its earnings and leverage through economic cycles. Terex now expects to be a "more resilient and less cyclical company." Improved Free Cash Flow: ESG's efficient operating model with low net working capital is expected to drive a meaningful improvement in free cash flow accretion for Terex. Cost and Revenue Synergies: Terex anticipates achieving at least $25 million in operational run-rate synergies by the end of 2026. These synergies will come from integrating ESG into Terex's operations and realizing commercial opportunities. Increased North American Focus: With ESG, Terex now derives approximately 67% of its total revenue from North America, an increase from 61% based on trailing 12-month results ended Q2 2024. This makes Terex more U.S.-centric, which can help mitigate exposure to international trade tensions and tariffs. Increased Debt Load: The acquisition was all-cash, funded by debt. This has led to a significant increase in Terex's debt outstanding and contributed to the higher interest expense that is impacting its 2025 EPS guidance. S&P Global Ratings noted that adjusted leverage would moderately increase to the mid-2x area in 2024, with expectations for reduction in 2025. In essence, the ESG acquisition is a transformative move for Terex, providing a strong, high-margin growth engine in the resilient waste and recycling sector, while strategically reducing overall business cyclicality, despite the short-term financial impact of increased debt.
Directors & Management
Terex's Board and management team combine deep industry expertise with strong financial acumen.
David A. Sachs (Non-Executive Chairman): Partner at Ares Management, LLC, providing strong financial and investment perspective. No reported negative history. Simon A. Meester (CEO): Direct industry experience from his prior roles leading Genie and extensive tenure at Caterpillar. No reported negative history. John L. Garrison, Jr. (Former CEO): Long history with Terex and other industrial companies (Bell Helicopter, Stanley Black & Decker). No reported negative history. Sandra E. Beach Lin: Strong industrial background (Celanese, Honeywell) and direct utility customer connection as a board member of American Electric Power. A past activist critique regarding her prior CEO role at Calisolar, Inc. (struggles during a volatile solar period) is the only notable "negative item," but not a bankruptcy involvement by her. Other directors bring diverse expertise in finance and general industrial management. Executive Management Team: Simon A. Meester (CEO): Direct operational leadership experience within Terex's key segments (Genie) and at Caterpillar. Jennifer Kong-Picarello (CFO): Strong financial leadership from major industrial and energy firms (Schneider Electric, Honeywell). Kieran Hegarty (President, MP): Long-tenured expert leading the Materials Processing segment. Scott Saxon (President, ES & Utilities): Direct experience leading the high-growth Environmental Solutions and Utility segments. Overall: The leadership team is experienced and highly aligned with Terex's strategic direction. There are no significant public negative items (e.g., bankruptcies) associated with the current executive management team. Ownership Structure
Terex shares are predominantly held by large institutional investors, indicating a stable and professional ownership base.
Institutional Ownership: Approximately 84.44% - 100.94%. This high percentage suggests that TEX is a common holding for mutual funds, ETFs, and other large investment vehicles. Insiders: Approximately 2.16%, providing management with a direct stake in the company's performance. Key Institutional Holders (Top 3-5): FMR LLC (Fidelity), BlackRock, Inc., and The Vanguard Group, Inc. consistently hold significant stakes, indicative of passive and large-cap fund inclusions. Material Changes (Q1 2025): There was a net increase of ~7,287 shares bought by insiders over the last three months, primarily through non-open market acquisitions (e.g., compensation-related share grants). While there were some minor open market sales, the lack of significant, widespread open market selling by insiders suggests no major loss of confidence from within the company. For institutional ownership overall, Q1 2025 showed a slight net increase in shares held by institutions, with more institutions increasing positions than decreasing them. Regulatory Changes & Potential Impact
The recently enacted "One Big Beautiful Bill Act" (OBBBA), passed on July 3, 2025, has a profound impact on Terex's markets, largely serving as a significant long-term tailwind, though with one notable offset:
Positive Impacts (Tax Cuts - Multi-Billion to Trillion Dollar Stimulus): Permanent 100% Bonus Depreciation (Retroactive to 2025): Allows immediate deduction of all qualifying equipment costs. This is a massive incentive that directly reduces the after-tax cost of equipment for Terex's customers (rental companies, contractors), strongly stimulating demand for Aerials and MP equipment. Permanent Immediate Expensing of Domestic R&D Expenses (Retroactive to 2022): Frees up cash for innovative companies, indirectly supporting new factory construction and related equipment needs. Permanent Change to Net Interest Expense Deduction (30% of EBITDA): Makes it cheaper for debt-laden customers to finance equipment, improving their cash flow and ability to invest. Increased Section 179 Expensing Cap (to $2.5M): Directly incentivizes equipment purchases by smaller businesses, a key customer segment. Temporary 100% Deduction for Qualified Production Structures: Directly incentivizes the construction of new manufacturing facilities, boosting demand for Aerials. Overall: These tax provisions collectively represent a multi-trillion dollar tax cut over 10 years, fundamentally lowering the cost of capital and increasing the cash flow for Terex's customers, driving demand. Infrastructure Spending (Targeted Allocations): The OBBBA includes: $12.5 billion for Air Traffic Control improvements. $64 billion related to Highway Trust Fund fees (bolstering road funding). ~$96.5 billion for border wall and security facilities. Over $100 billion for various military construction and shipbuilding. Impact: While not on the scale of IIJA's direct new allocations for general infrastructure, these funds solidify existing demand streams and create new specific construction projects (border, military), providing targeted opportunities for Terex's equipment. Negative Impact (Specific Offset): Termination of Many IRA Clean Energy Programs/Credits: The OBBBA explicitly "eliminates many IRA-era green tax credits." This is a significant clawback of incentives for renewable energy construction (solar, wind) that previously drove demand for Terex's Aerials and Utilities segments. This will likely lead to a reduction in project starts and equipment demand in this specific sub-segment, acting as a direct counterbalance to the broader positive tax changes. Terex's Public Customers: CapEx and Fleet Replacement Outlook
The commentary from Terex's major publicly traded customers paints a mixed, segment-specific picture for near-term demand:
Equipment Rental Companies (Headwind for Aerials)
Overall Trend: A clear deceleration in fleet CapEx for FY2025 compared to recent peak years. Rental companies are prioritizing cash flow, fleet optimization, and disciplined growth. Ashtead Group (ASTE - Sunbelt Rentals): Guiding gross CapEx of $1.8B - $2.2B for FY2026, a 53.5% reduction from FY2024 actuals ($4.3B). This is a strong negative signal for new equipment purchases. United Rentals (URI): Guiding gross rental CapEx of $3.65B - $3.95B for FY2025, a 2.7% to 10% decrease from FY2024 ($4.06B). A moderation, not a drastic cut. Herc Holdings (HRI): Guiding gross CapEx of $700M - $900M for FY2025, a 16.7% to 35.3% decrease from FY2024 ($1.08B). H&E Equipment Services (HEES): Reported 7.2% decline in rental revenue and a drop in utilization to 60.3% in Q1 2025, signaling likely slower fleet additions until conditions improve. Impact on TEX Aerials: This implies lower new equipment orders (volume) for Terex's Genie products in 2025, directly correlating with Terex's "channel adjustment" commentary and its Aerials segment guidance for a "Low-Double-Digit Decline" in sales. Waste Management Companies (Strong Tailwind for Environmental Solutions)
Overall Trend: Robust and consistent CapEx plans driven by organic growth, strategic acquisitions, and sustainability investments. Waste Management (WM): Expects to close over $500 million in solid waste acquisitions in 2025, requiring associated fleet investments. Their "sustainability businesses" (recycling, renewable energy) saw over 20% EBITDA growth in Q1 2025. Republic Services (RSG): Invested over $800 million in value-creating acquisitions in Q1 2025 alone. Ongoing investments in renewable natural gas projects. Impact on TEX ESG: These strong, quantifiable investment plans indicate robust and consistent demand for waste management and recycling equipment, providing a significant positive impetus for Terex's high-margin Environmental Solutions Group, aligning with its "High-Single-Digit Growth" guidance. Sell-Side Analyst and Financial Media Opinion
The prevailing sentiment from sell-side analysts and financial media is cautiously optimistic, with a strong emphasis on valuation despite near-term headwinds.
Consensus Rating: Generally a "Hold" or "Moderate Buy." While some analysts have upgraded (e.g., Baird to "Outperform"), others have downgraded (e.g., UBS to "Sell," Citi to "Neutral"), reflecting the mixed outlook. Valuation Focus: Many outlets and analysts (e.g., Barron's, Seeking Alpha contributors) suggest TEX is undervalued relative to its intrinsic value and peers, especially given its forward P/E. 
TEX - BUY