Core Viewpoint - The Zacks Manufacturing - Construction and Mining industry is currently facing challenges due to a prolonged contraction in the manufacturing sector, but increased infrastructure investment and demand from the mining sector are expected to provide support for growth [1][4][5]. Industry Overview - The industry includes companies that manufacture and sell construction, mining, and utility equipment, supporting various sectors such as oil and gas, power generation, and infrastructure projects [3]. Current Trends - The manufacturing index has been in contraction for 26 consecutive months until December 2024, with a recent reading of 49.1% in September, indicating ongoing weakness in customer spending due to tariffs [4]. - The energy transition trend is expected to drive demand for mining equipment, supported by U.S. government infrastructure investments in critical sectors [5]. - Companies are focusing on pricing strategies and cost-cutting measures to sustain margins amid input cost inflation [6]. Digital Transformation - Industry participants are investing in digital initiatives such as AI and robotics to enhance productivity and efficiency, which is crucial for meeting the demand for autonomous machinery [7]. Market Performance - The Manufacturing - Construction and Mining industry has outperformed the broader market, growing 33.7% over the past year compared to a 0.3% decline in the sector [11]. Valuation Metrics - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 15.82X, lower than the S&P 500's 18.51X and the Industrial Products sector's 24.36X [14]. Company Highlights - **Terex Corporation (TEX)**: Recently sold its Terex Tower and Rough Terrain Cranes businesses to reduce cyclicality and enhance growth. The company is expected to benefit from its focus on environmental solutions, which now account for approximately 30% of its global revenues [18]. The Zacks Consensus Estimate for Terex's 2025 earnings has increased by 0.2% over the past 60 days [19]. - **Hyster-Yale, Inc. (HY)**: Despite challenges in the lift truck market, the company has maintained steady sales quoting activity, indicating resilient demand. Hyster-Yale is focused on cost reduction and productivity improvements to enhance profitability [24]. The Zacks Consensus Estimate for Hyster-Yale's 2025 earnings has remained unchanged over the past 60 days [22].

Core Viewpoint - Terex (TEX) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, making it a valuable tool for investors [2][4]. - The recent upgrade for Terex reflects an improved earnings outlook, likely leading to increased buying pressure and a rise in stock price [3][5]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Terex is expected to earn $4.89 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 7.1% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Terex's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Terex (TEX) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [2][4][7]. Financial Metrics - Terex (TEX) holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 9.66, significantly lower than the industry average of 22.33, suggesting it may be undervalued [4]. - TEX's Forward P/E has fluctuated between 6.27 and 10.93 over the past 52 weeks, with a median of 9.17 [4]. - The P/S ratio for TEX is 0.66, compared to the industry average of 0.76, further indicating potential undervaluation [5]. - The P/CF ratio for TEX is 11.08, which is lower than the industry average of 15.66, suggesting a solid cash flow outlook [6]. - Over the past year, TEX's P/CF has ranged from 5.74 to 11.41, with a median of 7.29 [6]. Investment Outlook - The combination of the above metrics positions Terex as one of the strongest value stocks in the market, appealing to value investors looking for undervalued opportunities [7].

Core Viewpoint - Terex Corporation (TEX) has entered into a definitive agreement to sell its Terex Tower and Rough Terrain Cranes businesses to Raimondi Cranes SpA, aligning with its strategy to reduce cyclicality and enhance core business growth [1][7]. Group 1: Details of the Deal - The transaction includes the sale of Terex's Italian facilities, specifically the Terex Tower Cranes facility in Fontanafredda and the Terex Rough Terrain Cranes facility in Crespellano, along with the Terex North America Cranes service and support operation in Wilmington, NC [2][3]. - Franna pick and carry cranes are excluded from the agreement, and Terex will continue their production at its facilities in Eagle Farm, Brisbane, and Hosur, India [2]. Group 2: Strategic Implications - The deal is expected to create synergies for Raimondi Cranes by integrating Terex's Tower and Rough Terrain cranes, thereby expanding their range of solutions [3]. - Terex aims to align its production and cost structure across its segments in response to customer demand, while managing costs and working capital effectively [4]. Group 3: Financial Performance - In Q2 2025, Terex reported adjusted earnings of $1.49 per share, a 31% decline year-over-year, but above the Zacks Consensus Estimate of $1.44 [5]. - Revenues for the quarter reached $1.487 billion, reflecting a 7.6% increase from the previous year and surpassing the Zacks Consensus Estimate of $1.455 billion [5]. - Terex projects revenues between $5.3 billion and $5.5 billion for 2025, with earnings per share expected to be between $4.70 and $5.10 [5]. Group 4: Stock Performance - Over the past year, Terex's shares have decreased by 2.5%, contrasting with a 24.7% decline in the industry [6].

Core Viewpoint - Terex Corporation has signed a definitive agreement to sell its Tower and Rough Terrain Cranes businesses to Raimondi Cranes SpA, with the transaction expected to close in the second half of 2025, pending regulatory approvals [1][2]. Group 1: Terex Corporation - The sale includes the Terex Tower Cranes facility in Fontanafredda, Italy, the Terex Rough Terrain Cranes facility in Crespellano, Italy, and the Terex North America Cranes service operation in Wilmington, North Carolina [1]. - This divestiture aligns with Terex's strategic focus to reduce cyclicality while accelerating growth and leveraging synergies across its three business segments: Materials Processing, Aerials, and Environmental Solutions [2]. - Terex will continue to manufacture Franna pick and carry cranes at its Eagle Farm facility in Brisbane, Australia, and the Terex Hosur facility in India [2]. Group 2: Raimondi Cranes - Raimondi Cranes, based in Milan, Italy, is recognized for its product innovation and customer service, and aims to enhance its capabilities through this acquisition [2]. - The acquisition is seen as a milestone for Raimondi in its journey to become a global lifting conglomerate, creating synergies that will support sustainable growth [2][5]. - Founded in 1863, Raimondi has delivered over 17,000 cranes globally and continues to focus on quality, innovation, and customer satisfaction in the heavy lifting sector [4][5].

Core Viewpoint - Amphenol Corporation announced its acquisition of Trexon for approximately $1 billion in cash, aiming to expand its military-focused product portfolio in response to increasing defense spending [1][2] Group 1: Acquisition Details - The acquisition of Trexon, which specializes in connectivity products such as wires, cables, and connectors, is expected to complement Amphenol's existing offerings in the defense market [1] - Trexon is projected to generate sales of approximately $290 million in 2025, with an EBITDA margin of 26% [1] Group 2: Financial Impact - Amphenol anticipates that the acquisition will enhance its earnings per share in the first year following the completion of the transaction, which is expected to close in the fourth quarter of this year [2] - The company's stock price has increased by over 57% year-to-date, reflecting positive market sentiment [1]

Core Insights - Terex Corporation has completed a re-pricing of its term loan, which is expected to reduce cash interest costs by approximately $3 million annually [1] - The new term loan rate is set at S+175bps, improving by 25bps from the previous rate [2] Company Overview - Terex Corporation is a global industrial equipment manufacturer specializing in materials processing machinery, waste and recycling solutions, mobile elevating work platforms (MEWPs), and equipment for the electric utility industry [2] - The company designs, builds, and supports products used across various sectors including maintenance, manufacturing, energy, minerals and materials management, construction, waste and recycling, and the entertainment industry [2] - Terex provides lifecycle support through a global parts and services organization and offers digital solutions to maximize customer investment returns [2] - The company focuses on environmentally friendly products, including electric and hybrid offerings that provide quiet and emission-free performance, as well as products that support renewable energy and aid in waste recovery [2] - Terex products are manufactured in North America, Europe, and Asia Pacific, and are sold worldwide [2]

Core Viewpoint - The analyst previously held a sell rating for Terex Corp. (NYSE: TEX) due to strong macro pressures and concerns that the stock's valuation did not adequately reflect the associated risks [1] Group 1: Investment Philosophy - The investment approach is fundamentally driven, focusing on identifying businesses with potential for scaling and unlocking significant terminal value [1] - Key factors considered include competitive moat, unit economics, reinvestment runway, and management quality, which are essential for long-term free cash flow generation and shareholder value creation [1] - The analyst emphasizes the importance of focusing on sectors with strong secular tailwinds for investment opportunities [1] Group 2: Professional Background - The analyst has 10 years of experience in investment banking and is currently managing personal funds sourced from friends and family [1] - The motivation for writing on Seeking Alpha is to share investment insights and receive feedback from fellow investors [1] - The aim is to help readers concentrate on the elements that drive long-term equity value [1]

Core Insights - Terex reported Q2 2025 earnings with EPS of $1.49, exceeding analyst estimates of $1.40 by 6.4% and revenue of $1.50 billion, surpassing the consensus estimate of $1.44 billion with a year-over-year growth of 7.6% [1][2] - The Environmental Solutions segment showed strong performance, while Aerials and Materials Processing faced notable declines [1][4] Financial Performance - EPS (Non-GAAP) for Q2 2025 was $1.49, down 31.0% from $2.16 in Q2 2024 [2] - Revenue (GAAP) reached $1.50 billion, an 8.0% increase from $1.38 billion in Q2 2024 [2] - Operating margin (Non-GAAP) decreased to 11.0%, down 3.1 percentage points from 14.1% in the previous year [2] - Net income (Non-GAAP) was $98 million, a decline of 32.9% from $146 million in Q2 2024 [2] - Free cash flow (Non-GAAP) improved to $78 million, an increase of 81.4% from $43 million in Q2 2024 [2] Segment Performance - The Environmental Solutions segment saw net sales increase by 12.9% on a pro forma basis, driven by higher throughput of refuse collection vehicles and utility equipment installations [5] - Aerials segment net sales dropped 17.1%, with operating profit cut by more than half due to reduced capital spending by rental customers and tariff pressures [6] - Materials Processing segment experienced a 9.0% decline in GAAP sales, although bookings increased by 24% year-over-year, indicating some positive trends [7][8] Business Strategy and Innovation - Terex is focusing on business transformation by expanding into steady-growth sectors like waste and recycling through its Environmental Solutions segment [4] - The company is integrating its 3rd Eye digital platform into its products, enhancing safety and generating subscription-based revenue [9] - New electric and hybrid offerings are being developed to meet sustainability demands and regulatory standards [9] Financial Management and Guidance - Free cash flow (non-GAAP) improved significantly, with liquidity maintained at $1.2 billion and $75 million returned to shareholders through dividends and share repurchases [10] - Management reaffirmed FY2025 guidance, targeting revenue between $5.3 billion and $5.5 billion and adjusted EPS of $4.70 to $5.10 [11] - Net free cash flow for FY2025 is expected to reach $300–$350 million, supported by disciplined capital spending and contributions from ESG [12]

Investment Rating - The industry investment rating is "Positive" and maintained [10] Core Viewpoints - The overseas aerial work platform industry continues to show positive growth, with equipment rental income maintaining year-on-year growth in Q2 2025. The largest rental company, United Rentals, expects capital expenditure to remain at historical highs for the entire year of 2025 [2][6] - Leading manufacturers have seen an increase in new orders year-on-year in Q2 2025, with JLG's new orders returning to historical median levels, indicating stabilization in order volumes [2][8] Summary by Sections Overseas Rental Companies - United Rentals reported Q2 2025 equipment rental income of $3.415 billion, a year-on-year increase of 6.2%. The capital expenditure for Q2 2025 was $1.460 billion, up 7.7% year-on-year, with a total expected capital expenditure for 2025 projected to be between $3.65 billion and $3.95 billion, reflecting a slight year-on-year increase of 1.2% [6][19][25] - Sunbelt's Q1 2025 revenue was $2.308 billion, down 3.7% year-on-year, with capital expenditure of $1.808 billion, a decrease of 47% year-on-year. The company has increased its rental outlets in the U.S. [7][31][33] Overseas Equipment Manufacturers - Terex, under the Genie brand, reported Q2 2025 revenue of $607 million, down 17.1% year-on-year, but new orders increased by 70% year-on-year to $310 million. The backlog of orders was $714 million, down 36% year-on-year [8][41] - Oshkosh, which owns the JLG brand, reported Q2 2025 revenue of $638 million, a decline of 5.6% year-on-year, while new orders increased by 45% year-on-year to $640 million. The backlog of orders was $1.189 billion, down 64% year-on-year [8][48]