Terex Corporation (TEX): A Top Heavy Equipment Stock for Long-Term Growth

Terex Corporation (TEX) has emerged as a strong contender in the heavy equipment and industrial machinery sector, demonstrating impressive financial performance and strategic positioning. As investors seek companies with long-term growth potential, Terex's track record and commitment to industry-leading products and solutions make it an attractive option.

Terex's financial performance has been remarkable, with a more than 4x increase in return on invested capital (ROIC) to 28.5% and a 5x increase in non-GAAP EPS to $7.06 since 2015. This impressive growth is a testament to the company's operating discipline and focus on maximizing customer return on investment. Terex's ability to deliver best-in-class financial performance, coupled with its global diversification and strong values, positions it well to benefit from global megatrends and accelerate growth in the years to come.

Terex's debt-to-equity ratio and net debt-to-EBITDA ratio have significantly improved since 2015. In 2023, Terex's net debt-to-EBITDA ratio was 0.4x, an 89% reduction from its 2015 level. This indicates a substantial improvement in Terex's financial health and a lower risk of default. Compared to its industry peers, Terex's net debt-to-EBITDA ratio is lower than the industry average of 1.5x, suggesting that Terex has a stronger balance sheet. This improved financial position allows Terex to invest more in research and development, expand its product offerings, and potentially acquire other companies, thereby driving long-term growth.



Terex's commitment to returning capital to shareholders is evident in its dividend payout and share buyback programs. Since 2015, Terex has returned over $1.9 billion to shareholders through dividends and share buybacks, representing a 38% reduction in shares outstanding. This consistent capital return strategy, coupled with Terex's industry-leading products and solutions, positions the company as a strong contender among heavy equipment and industrial machinery stocks for long-term growth.

Terex's focus on industry-leading products and solutions differentiates it from competitors in the heavy equipment and industrial machinery sector. As highlighted by Simon A. Meester, President and Chief Executive Officer, Terex aims to maximize customer return on investment by providing top-tier offerings. This focus, coupled with a strong global presence and operating discipline, enables Terex to deliver best-in-class financial performance.

In conclusion, Terex Corporation (TEX) is among the best heavy equipment and industrial machinery stocks to buy for long-term growth. Its impressive financial performance, strategic positioning, and commitment to industry-leading products and solutions make it an attractive investment option. As investors seek companies with strong growth potential, Terex's track record and commitment to shareholder value creation make it a compelling choice.