TEX

Terex makes aerial work platforms, materials-processing and (newly) environmental/waste-handling equipment. FY2025 revenue grew 5.7% to $5.42B, but profitability fell sharply: net income dropped 34.0% to $221M and diluted EPS fell 32.9% to $3.33, as gross margin slipped to 19.4% and operating income declined 9.7%. Two acquisition-related signals stand out — shares outstanding jumped 71.2% and depreciation/amortization surged 91.5% — consistent with a large debt-and-equity-funded acquisition (its Environmental Solutions segment) that diluted per-share earnings and added intangible amortization. That dilution is a big part of why EPS fell faster than the modest operating decline.

The balance sheet and cash generation are reassuring through this digestion period. Operating cash flow rose 35.0% to $440M, cash nearly doubled to $772M, and equity grew 14.4% to $2.10B while long-term debt held roughly flat at $2.59B. Leverage of 1.93x liabilities/equity is elevated but not alarming for an industrial, and management continued modest capital returns ($56M buybacks, $45M dividends). ROE of 10.5% is decent for a cyclical at a softer point in the cycle.