Terex Stock Has Surged Nearly 70% This Past Year, so Why Did One Fund Exit a $27 Million Stake?
Key Points
Lodge Hill Capital sold 529,450 shares of Terex in the fourth quarter.
The quarter-end position value decreased by $27.16 million as a result.
The position was previously approximately 4.85% of the fund's assets under management as of the prior quarter.
On February 17, 2026, Lodge Hill Capital disclosed in a U.S. Securities and Exchange Commission filing that it sold out its entire position in Terex (NYSE:TEX), liquidating 529,450 shares worth about $27.16 million.
What happened
According to an SEC filing dated February 17, 2026, Lodge Hill Capital fully exited its stake in Terex (NYSE:TEX) during the fourth quarter. The fund sold all 529,450 shares it previously held. The reported quarter-end value of the position declined by $27.16 million.
What else to know
- Top holdings after the filing:
- NYSE:RKT: $42.71 million (8.07% of AUM)
- NYSE:APO: $42.40 million (8.01% of AUM)
- NYSE:BCO: $39.69 million (7.50% of AUM)
- NYSE:OC: $35.65 million (6.74% of AUM)
- NYSE:HRB: $34.86 million (6.59% of AUM)
- As of Monday, shares of Terex were priced at $67.76, up about 67% over the past year and well outperforming the S&P 500, which is instead up about 17%.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $5.42 billion |
| Net income (TTM) | $221.00 million |
| Dividend yield | 1% |
Company snapshot
- Terex manufactures aerial work platforms, material processing machinery, cranes, and related equipment under multiple brands, with primary revenue from equipment sales and aftermarket parts.
- The company operates a dual-segment model: Aerial Work Platforms (AWP) and Materials Processing (MP), generating income through equipment sales, parts, and customer financing solutions.
- It serves construction, industrial, infrastructure, recycling, mining, and utility sectors globally, targeting contractors, rental companies, and industrial operators.
Terex is a diversified industrial manufacturer with a global footprint, focusing on aerial work platforms and materials processing equipment. The company leverages a broad brand portfolio and a dual-segment structure to address the needs of construction, infrastructure, and industrial clients worldwide.
What this transaction means for investors
Terex is in the middle of a structural shift. Portfolio changes and the REV merger are reshaping its earnings profile, and that transition carries both opportunity and execution risk.
Full-year 2025 sales reached $5.4 billion, with adjusted EPS of $4.93. Meanwhile, free cash flow came in at $325 million, representing 147% conversion, and fourth quarter bookings jumped 32% year over year to $1.9 billion, a meaningful signal of demand strength heading into 2026. Management now expects $7.5 billion to $8.1 billion in 2026 sales and up to $1 billion in EBITDA.
Ultimately, after a 67% stock rally over the past year, trimming exposure could reflect simple discipline. Compared with other core holdings tilted toward financials, housing, and alternative assets, this industrial name adds more cyclical sensitivity. For long-term investors, an important question is integration. If REV synergies materialize and backlog converts cleanly, margin expansion could follow. But tariff exposure, leverage, and industrial cycles remain variables. The setup is stronger than it was, yet not without moving parts.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Companies and Terex. The Motley Fool recommends Owens Corning. The Motley Fool has a disclosure policy.