Cash flow generation has deteriorated, with the FCF margin falling to -3.3% in 2026Q1, reflecting a disconnect between accounting profits and actual liquidity.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 430M | 440M | 326M | 459.3M | 261.2M | 293.4M | 225.4M | 173.4M | 94.2M | 153M | 377.1M | 212.9M | 410.7M | 188.5M | 292.3M | 19.1M | -663.2M | -37.7M | 183.7M | 361.4M | 484.4M | 273.4M | 164.6M | 384.1M | 70.3M | -5.5M | 200.6M | 5M | -19.5M | -300K | -17.6M |
| Operating CF Margin % | - | 8.12% | 6.36% | 8.91% | 5.91% | 7.55% | 7.33% | 3.98% | 2.09% | 4.03% | 8.49% | 4.24% | 7.49% | 2.66% | 4.19% | 0.29% | -15.01% | -0.93% | 1.86% | 3.96% | 6.33% | 4.29% | 3.28% | 9.86% | 2.51% | -0.3% | 9.7% | 0.27% | -1.58% | -0.04% | -2.59% |
| Operating CF Growth % | 53.2% | 34.97% | -29.02% | 75.84% | -10.97% | 30.17% | 29.99% | 84.08% | -38.43% | -59.43% | 77.13% | -48.16% | 117.88% | -35.51% | 1430.37% | 102.88% | -1659.15% | -120.52% | -49.17% | -25.39% | 77.18% | 66.1% | -57.15% | 446.37% | 1378.18% | -102.74% | 3912% | 125.64% | -6400% | 98.3% | 19.63% |
| Net Income | 111M | 221M | 335M | 518M | 300M | 220.9M | -10.6M | 54.4M | 113.7M | 128.7M | -175.5M | 149M | 319.5M | 220.9M | 103.6M | 34M | 362.5M | -462.2M | 71.9M | 613.9M | 399.9M | 188.5M | 324.1M | -25.5M | -132.5M | 12.8M | 96.6M | 172.9M | 72.8M | 30.3M | 47.7M |
| Depreciation & Amortization | 196M | 158M | 82M | 56.4M | 47M | 50.2M | 49.7M | 49.6M | 59.7M | 66.5M | 96.7M | 128.2M | 155.7M | 152.3M | 153M | 126.6M | 104.8M | 96.8M | 97.7M | 76.2M | 73M | 75.6M | 65.6M | 70.4M | 45M | 40.3M | 41.5M | 32.2M | 18.4M | 14.3M | 13.7M |
| Stock-Based Compensation | 61M | 0 | 30M | 43.6M | 30M | 33.1M | 23.8M | 43.1M | 36.7M | 38.5M | 37.8M | 38.5M | 46.5M | 43.9M | 29.1M | 23.4M | 34.9M | 31.8M | 58.2M | 64.9M | 43.5M | 29.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -46M | -3M | -10M | -38.1M | -1M | 1.2M | 5.6M | -17.6M | -9.1M | 37.6M | -137.6M | -2.6M | -17.8M | -2.3M | -25.2M | -3.7M | 108M | -151.6M | 20.5M | 2.8M | 65.9M | 19.1M | -203.9M | -31.8M | -35.2M | 10.7M | 33.5M | -82.8M | 0 | 0 | 33.8M |
| Other Non-Cash Items | -53M | -2M | 22M | 9.4M | 12M | 42.8M | -29.4M | -25.5M | -27.6M | -76.1M | 253.8M | -78.3M | -72.5M | -73.2M | 90.6M | -17.7M | -586M | 50.4M | 449.5M | -31M | -5.7M | -28.7M | -19.1M | 78.9M | 188.8M | 21.9M | -26M | -6.7M | 0 | 100K | -100K |
| Working Capital Changes | 161M | 66M | -133M | -129M | -127M | -54.8M | 186.3M | 69.4M | -79.2M | -42.2M | 301.9M | -21.9M | -20.7M | -153.1M | -58.8M | -143.5M | -687.4M | 397.1M | -514.1M | -365.4M | -92.2M | -10.2M | -2.1M | 292.1M | 4.2M | -91.2M | 56.5M | -120.4M | -110.7M | -45M | -28.2M |
| Change in Receivables | 12M | -46M | 16M | 11M | -55M | -139M | 16.1M | 176.1M | -107.9M | -500K | 33M | 74.1M | -4.2M | -153.1M | 122.5M | -181.2M | -201.8M | 321M | 143.6M | -182.8M | -214.2M | -100.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 192M | 39M | 77M | -200M | -206M | -229.5M | 261.6M | 20.3M | -284.2M | -33.5M | 97.3M | -90.6M | -27.1M | -70.4M | -55M | -26.9M | -153.6M | 537.7M | -404.9M | -326.3M | -168.5M | -128.3M | -158.3M | 189M | -52.7M | -19.6M | 43.6M | -48.1M | -106.1M | -11.5M | -12.7M |
| Change in Payables | 80M | 118M | -241M | 58M | 96M | 173M | -156.9M | -220.1M | 213.2M | 25M | -21M | 41.7M | 85.8M | 86.9M | -126.3M | 64.6M | 36.1M | -428.8M | -137.5M | 122.5M | 103M | 89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -409M | 32M | -2.13B | -114.4M | -154.1M | -102.2M | -38.5M | 103.8M | -85.9M | 1.54B | -11.8M | -172.7M | 95M | -37.4M | -76.3M | -592.5M | 903.9M | -61.1M | -579.3M | -251.5M | -51.9M | -56.7M | -61.8M | -28.7M | -440.6M | -136.3M | 110.9M | -553M | -222M | -98.6M | 135.7M |
| Capital Expenditures | -108M | -118M | -137M | -127.2M | -109.6M | -59.7M | -64.5M | -108.9M | -103.8M | -43.5M | -73M | -103.8M | -81.5M | -82.8M | -82.5M | -79.1M | -55M | -51.4M | -120.8M | -111.5M | -78.9M | -48.6M | -35.5M | -27.1M | -29.2M | -13.5M | -24.2M | -557M | -224.4M | -107.1M | -8.1M |
| CapEx % of Revenue | 1.82% | 2.18% | 2.67% | 2.47% | 2.48% | 1.54% | 2.1% | 2.5% | 2.3% | 1.15% | 1.64% | 2.07% | 1.49% | 1.17% | 1.18% | 1.22% | 1.24% | 1.27% | 1.22% | 1.22% | 1.03% | 0.76% | 0.71% | 0.7% | 1.04% | 0.74% | 1.17% | 30% | 18.2% | 12.72% | 1.19% |
| Acquisitions | -355M | 112M | -2B | -23.8M | -50.1M | -42.7M | 2.7M | 182M | -6.9M | 803.4M | -7M | -71.2M | -7.4M | 0 | -3.4M | -1.04B | -32.1M | -9.8M | -481.5M | -154.4M | -33.2M | -5.1M | -58.7M | -7.7M | -445.9M | -130.8M | -20M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 54M | 38M | 11M | 36.6M | 5.6M | -57.8M | 18.5M | 182M | -98.8M | 1.58B | 68.2M | 2.3M | 196.5M | 45.4M | 30.2M | 537.9M | 1.01B | 100K | 23M | 15.3M | 67.3M | 1.6M | 32.4M | 6.1M | 34.5M | 8M | 155.1M | 4M | 2.4M | 8.5M | 143.8M |
| Cash from Financing | 49M | -123M | 1.84B | -287.8M | -54.9M | -580.1M | -82.8M | -103.7M | -244.9M | -1.61B | -310.2M | -14.4M | -396.7M | -420.1M | -323.3M | 454.2M | -315.7M | 558.6M | -349.2M | 431.1M | -344.8M | -49M | -170.1M | -269.6M | 460M | 211.5M | -261.2M | 657.2M | 239.3M | 64.2M | -50.4M |
| Debt Issued (Net) | -7M | -7M | 2B | -158.7M | 96.5M | -503.4M | -6M | -43.9M | 232.2M | -583.4M | -188.6M | 65M | -117.6M | -146.6M | -319.4M | 478.9M | -291.6M | 429.3M | 36.7M | 560.3M | -373.4M | -35.5M | -162.4M | -229.1M | 351.6M | 116.5M | -236.7M | 483.6M | 271.3M | 16M | -56M |
| Equity Issued (Net) | -24M | -56M | -49M | -62.8M | -101.3M | -3M | -56M | -7.4M | -427.5M | -924.9M | -82.7M | -50.8M | -171.2M | -31.4M | 0 | 0 | -1.2M | 156.3M | -395.5M | -156.2M | 15.3M | 5.1M | 9.2M | 2.8M | 113.3M | 96.3M | -20.2M | 162.8M | 0 | 59.2M | 0 |
| Dividends Paid | -53M | -45M | -46M | -43.2M | -35.6M | -33.5M | -8.4M | -31.4M | -30M | -29.5M | -30M | -25.8M | -21.8M | -5.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -24M | -56M | -49M | -62.8M | -101.3M | -3M | -56M | -7.4M | -427.5M | -924.9M | -82.7M | -50.8M | -171.2M | -31.4M | 0 | 0 | -1.2M | 0 | -395.5M | -166.6M | 0 | 0 | 0 | 0 | 0 | 0 | -20.2M | 0 | 0 | -45.4M | 0 |
| Other Financing | 133M | -15M | -63M | -23.1M | -14.5M | -40.2M | -12.4M | -21M | -19.6M | -68.7M | -8.9M | -17.4M | -86.1M | -236.6M | -3.9M | -24.7M | -22.9M | -27M | 9.6M | 27M | 13.3M | -18.6M | -16.9M | -43.3M | -4.9M | -1.3M | -4.3M | 10.8M | -32M | -11M | 5.6M |
| Net Change in Cash | 94M | 384M | 17M | 66.6M | 37.2M | -403.2M | 130M | 168M | -258M | 128.2M | 35.4M | -11.7M | 70.1M | -269.9M | -96.1M | -120.1M | -77M | 486.8M | -788M | 595.7M | 123.1M | 134.8M | -48.7M | 115.3M | 101.8M | 69M | 48.1M | 108.2M | -3.6M | -43.3M | 65M |
| Free Cash Flow | 322M | 322M | 189M | 332.1M | 151.6M | 233.7M | 160.9M | 64.5M | -9.6M | 109.5M | 304.1M | 109.1M | 329.2M | 105.7M | 209.8M | -60M | -718.2M | -89.1M | 62.9M | 249.9M | 405.5M | 224.8M | 129.1M | 357M | 41.1M | -19M | 176.4M | -552M | -243.9M | -107.4M | -25.7M |
| FCF Margin % | 5.43% | 5.94% | 3.69% | 6.45% | 3.43% | 6.01% | 5.23% | 1.48% | -0.21% | 2.89% | 6.84% | 2.17% | 6% | 1.49% | 3% | -0.92% | -16.26% | -2.2% | 0.64% | 2.73% | 5.3% | 3.52% | 2.57% | 9.16% | 1.47% | -1.05% | 8.53% | -29.73% | -19.78% | -12.75% | -3.79% |
| FCF Growth % | 60.2% | 70.37% | -43.09% | 119.06% | -35.13% | 45.25% | 149.46% | 771.88% | -108.77% | -63.99% | 178.74% | -66.86% | 211.45% | -49.62% | 449.67% | 91.65% | -706.06% | -241.65% | -74.83% | -38.37% | 80.38% | 74.13% | -63.84% | 768.61% | 316.32% | -110.77% | 131.96% | -126.32% | -127.09% | -317.9% | 20.68% |
| FCF per Share | - | 4.86 | 2.80 | 4.86 | 2.18 | 3.30 | 2.30 | 0.90 | -0.12 | 1.15 | 2.82 | 1.00 | 2.88 | 0.90 | 1.84 | -0.54 | -6.61 | -0.87 | 0.63 | 2.38 | 3.94 | 2.19 | 1.27 | 3.71 | 0.22 | -0.13 | 1.21 | -10.78 | -5.44 | -3.03 | -0.64 |
| FCF Conversion (FCF/Net Income) | 2.90x | 1.99x | 0.97x | 0.89x | 0.87x | 1.33x | -21.26x | 3.19x | 0.83x | 1.19x | -2.14x | 1.46x | 1.29x | 0.83x | 3.80x | 0.42x | -1.85x | 0.10x | 2.55x | 0.59x | 1.21x | 1.45x | 0.51x | -15.06x | -0.53x | -0.43x | 2.11x | 0.03x | -0.57x | -0.02x | -0.37x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical cash flow volatility
As reported in recent SEC filings, the relationship between net income and operating cash flow has become increasingly erratic, with the OCF/NI ratio swinging from a negative 0.31 in 2024Q1 to a volatile 0.35 in 2026Q1, highlighting significant challenges in converting accounting profits into actual liquidity.
The persistent gap between net income and operating cash flow suggests that reported earnings are heavily influenced by non-cash items and accruals that do not materialize into cash. Investors should monitor whether this disconnect stems from aggressive revenue recognition or structural delays in collecting receivables from large-scale rental accounts.
Based on financial statements, the company's FCF margin has deteriorated significantly, falling to -3.3% in 2026Q1 from a peak of 13.0% in 2025Q4, which indicates that the firm is currently struggling to generate sustainable cash flow to support its ongoing operational and capital requirements.
The sharp decline in FCF trajectory appears to mirror the broader cyclical downturn in the machinery sector, where high fixed costs are failing to scale with revenue. This trend warrants further investigation into whether the current cash burn is a temporary byproduct of inventory management or a more permanent shift in profitability.
According to quarterly data, working capital changes have been highly inconsistent, oscillating between a $154.0 million inflow in 2025Q4 and a neutral position in 2026Q1, suggesting that the company lacks a stable mechanism for managing its cash conversion cycle during periods of fluctuating demand.
The reliance on large working capital swings to bolster cash flow indicates that the company's operational liquidity is highly sensitive to the timing of shipments and inventory build-ups. This volatility may imply that management is using working capital as a lever to mask underlying operational cash flow weaknesses.
As disclosed in recent filings, the company's capital deployment strategy has shifted toward significant acquisition activity, including a $467.0 million outlay in 2026Q1, even as operating cash flow turned negative, raising questions about the sustainability of current dividend payments and share repurchase programs in a tightening environment.
The decision to prioritize large acquisitions while operating cash flow is under pressure suggests a high-risk capital allocation strategy that may limit the company's financial flexibility. Investors should monitor whether these investments provide the promised synergies or if they further strain the balance sheet during a cyclical trough.
Quick answers to the most common questions about buying TEX stock.
Terex Corporation (TEX) generated $440.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Terex Corporation (TEX) generated $322.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Terex Corporation (TEX) spent $118.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Terex Corporation (TEX) returned $45.0M to shareholders via cash dividends and spent $56.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.