Why Terex Stock Is Rocketing Higher Today

Shares of starring specialty instrumentality and conveyance shaper Terex (NYSE: TEX) are up 13% arsenic of 11 a.m. ET connected Wednesday aft the institution delivered fourth-quarter net this morning. Sales grew 8%, gathering Wall Street's expectations, portion adjusted net per stock snuck past analysts' consensus. However, the fig that stole the amusement was Terex's 32% booking maturation successful Q4. Powered by this booming backlog, absorption guided adjusted EBITDA to turn by 12% to $965 cardinal successful 2026, leaving the banal trading astatine a discounted EV/EBITDA ratio of conscionable 6.

This concern momentum paints a beauteous agleam aboriginal for Terex, particularly arsenic the integrates its caller Environmental Solutions Group (ESG) acquisition and wraps up its REV Group purchase. The $2 cardinal ESG woody added garbage postulation vehicles, discarded compaction equipment, and aftermarket parts, helping to trim Terex's wide concern cyclicality. Meanwhile, the stock-and-cash merger with REV Group further reduces Terex's cyclicality by adding ambulances, occurrence trucks, and akin specialty vehicles and equipment. Following these deals, Terex volition make astir 70% of its income from its exigency vehicles, discarded and recycling, and utilities segments, which run successful industries with government-backed oregon non-discretionary spending.

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Once the institution successfully spins disconnected oregon sells its highly cyclical aerials and cranes concern line, arsenic absorption hopes, Terex volition make the immense bulk of its gross from vehicles serving non-discretionary industries. This steady-Eddie quality would brace perfectly with the company's past of increasing its dividend and reducing its stock count. Over the past decade, Terex's dividend has grown from $0.24 to $0.68, portion the company's shares outstanding dropped by 40%. Trading astatine conscionable 14 times its 2026 net guidance, the new-look Terex isn't outrageously priced. I'll support the institution connected my radar and deliberation it could go an absorbing banal erstwhile it divests from its cyclical aerial business.

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