Terex holds dividend at $0.17, keeps 2026 EPS target of $4.50-$5.00

Terex (TEX) declared a quarterly dividend of $0.17 per share, matching the prior payout. The dividend is payable Sept. 18 to shareholders of record Aug. 11, with an ex-dividend date of Aug. 11. The forward yield stands at 1.0%.

The dividend announcement came alongside the company's reaffirmation of its 2026 earnings per share guidance of $4.50 to $5.00. Terex also said it is targeting a $75 million revenue synergy run rate within 24 months, a goal tied to its recent acquisition of the environmental services equipment maker.

Raymond James upgraded Terex to Strong Buy, citing outsized risk-adjusted upside relative to peers. The analyst pointed to the company's margin trajectory and the potential for the ES business to drive above-average growth in a sector that has been consolidating.

Terex's Q1 2026 earnings call highlighted progress on integrating the ES acquisition, with management noting that cost synergies are tracking ahead of schedule. The company's core aerial work platform and materials processing segments have been supported by steady infrastructure spending and non-residential construction demand in North America.

The stock trades at roughly 12 times the midpoint of the 2026 EPS range, a discount to the broader machinery sector. The dividend, while modest, has been consistent, and the yield is in line with industrial peers that prioritize reinvestment over payout growth.

Terex's guidance assumes no major disruption in end-market demand through the rest of the year. The company's exposure to rental fleet spending and large-scale construction projects makes it sensitive to interest rate moves and private non-residential investment trends. The next quarterly report will show whether the ES integration is delivering the revenue lift management has projected.