Terex (TEX) Stock Forecast & Price Target

Terex Corp's Environmental Solutions segment achieved notable sales of $399 million in the last quarter, reflecting a robust year-over-year growth of 10.5% on a pro forma basis, primarily driven by record throughput. This segment's adjusted operating margin improved significantly by 420 basis points to 19.4%, indicating enhanced profitability that surpassed management's expectations. Despite challenges in other segments, such as Aerial Work Platforms and Materials Processing showing declines of 28% and 27% respectively, the strong performance of Environmental Solutions underlines a promising outlook for Terex's future growth.

Terex Corp exhibited a significant decline in its organic operating margin, which fell by 760 basis points, primarily attributed to a 75% decrease in volume and 25% from unfavorable absorptions, despite a $20 million reduction in selling, general, and administrative expenses. The company's sales decreased by 5% year-over-year to $1.299 billion, with a notable 25% decline in organic sales driven by ongoing channel adjustments and backlog conversion. While the adjusted operating margin was reported at 9.1%, marking a 350 basis point year-over-year drop, this performance was primarily bolstered by strength in the Environmental Solutions segment, indicating underlying challenges across other business operations.