Is TEX's Q3 2024 EPS growth sustainable long-term?

**Terex's Q3 2024 EPS growth may not be sustainable long-term.** Here's why: 1. **Challenging Market Conditions**: Terex has been navigating a softer demand environment in both North America and Europe, which has affected its organic topline growth. This suggests that the underlying demand for its products and services is weak, which could put pressure on EPS growth in the long term. 2. **Strategic Shifts and Acquisitions**: Terex has made strategic moves, such as the acquisition of Environmental Solutions Group (ESG), to diversify its business and bolster its long-term prospects. While these moves are positive in the long term, they may have near-term impacts on financials, such as increased leverage from debt-financed acquisitions, which could impact EPS growth. 3. **Cyclical Downturn in Key Segments**: The Materials Processing and Aerial Work Platforms segments are in a cyclical downturn, with guidance for a double-digit revenue decline for AWP and a high single-digit decline for MP in 2025. Since EPS growth is often tied to revenue growth, this downturn could put pressure on long-term EPS growth. 4. **Analyst Outlook**: Analysts have a cautious outlook on Terex, with a hold rating and a forecast of modest growth in the near term. This suggests that while there may be some growth, it may not be strong enough to sustain significant EPS growth over the long term. 5. **Financial Metrics**: Terex's net margin is at 6.53% as of Q4 2024, which is relatively low. This indicates that the company is currently generating lower profitability on its revenues, which could make it more challenging to sustain EPS growth over the long term. In conclusion, while Terex has made strategic moves to improve its long-term prospects, the current market conditions, cyclical downturns in key segments, and analyst outlook suggest that the Q3 2024 EPS growth may not be sustainable in the long term.