Terex: Green Shoots, But Not Yet Out Of The Woods

May 14, 2025 5:31 PM ETTerex Corporation (TEX) StockDOV, TEX
(10min)

Summary

  • Terex's acquisition of ESG diversified the business but added significant leverage, raising risks amid softening organic performance and economic uncertainty.
  • Despite a resilient margin and improved order intake in Q1, organic sales remain weak and leverage has climbed to concerning levels near 3.5x EBITDA.
  • Shares rebounded sharply from recent lows, but the stock remains cheap only if management can deliver on guidance and improve financial discipline.
  • Given the company's uneven track record and leverage overhang, I remain cautious and seek more conservative financial practices before turning bullish.
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Towards the end of 2024, I believed that softness came at the worst time for shares of Terex Corporation (NYSE:TEX). This followed the company's acquisition of the Environmental Solutions Group from Dover Corporation (DOV)

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