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Astec Reports Second Quarter 2025 Results

1. Astec reported Q2 2025 net sales of $330.3 million. 2. Net income increased to $16.7 million from a $14 million loss. 3. Adjusted EBITDA rose to $33.7 million, indicating strong operational efficiency. 4. Astec's acquisition of TerraSource expected to boost growth. 5. Revised EBITDA guidance for 2025 raised to $123-142 million.

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Why Bullish?

The solid growth in income and EBITDA, along with a strategic acquisition, suggests strong potential for future earnings. Historically, robust quarterly performances often lead to positive stock price reactions.

How important is it?

The article highlights significant financial improvements and a strategic acquisition, likely to influence investor sentiment positively and stock performance. The combination of these factors enhances the importance of this news for ASTE.

Why Long Term?

The acquisition of TerraSource is expected to contribute to future revenue growth, indicating significant potential over the longer term. Similar acquisitions in the past have resulted in sustained growth for other companies in the sector.

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August 06, 2025 07:00 ET  | Source: Astec Industries, Inc. Second Quarter 2025 Overview (all comparisons are made to the corresponding prior year second quarter unless otherwise specified): Net sales of $330.3 millionNet income of $16.7 million; Adjusted net income of $20.3 millionEBITDA of $29.0 million; Adjusted EBITDA of $33.7 millionDiluted EPS of $0.72; Adjusted EPS of $0.88Operating cash flow of $12.9 million; Free cash flow of $9.0 million CHATTANOOGA, Tenn., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial results for the second quarter ended June 30, 2025. "Astec reported another strong quarter building on its strategic initiatives to deliver consistency, profitability and growth," said Jaco van der Merwe, Chief Executive Officer. "Operational efforts continue to gain traction, manufacturing and procurement efforts are driving enhanced efficiencies and increases were achieved in net income, EBITDA and earnings per share. On July 1, 2025, we completed the acquisition of TerraSource, an adjacent manufacturer of materials processing equipment and related aftermarket parts. TerraSource has annual revenues in excess of $150 million, with over 60% of revenues from aftermarket parts and services. We are excited to welcome TerraSource employees to the Astec team." Brian Harris, Chief Financial Officer, commented, "We were pleased to generate net income of $16.7 million and an adjusted EBITDA of $33.7 million in the second quarter, compared to a $14.0 million net loss and $27.6 million of adjusted EBITDA in the second quarter last year, along with strong free cash flows. We are updating the lower end of our full year guidance from $105 million to $110 million on our core business while keeping the top end of the range unchanged at $125 million. We are also increasing our guidance to reflect the expected second half contributions by TerraSource. We expect TerraSource to provide adjusted EBITDA in the $13 million to $17 million range, bringing our consolidated guidance expectations for adjusted EBITDA to a range of $123 million to $142 million."  GAAP Adjusted(in millions, except per share and percentage data)2Q 2025 2Q 2024 Change 2Q 2025 2Q 2024 ChangeNet sales$330.3  $345.5  (4.4)%      Infrastructure Solutions 204.6   221.4  (7.6)%      Material Solutions 125.7   124.1  1.3%      Backlog 380.8   531.1  (28.3)%      Infrastructure Solutions 256.1   368.6  (30.5)%      Material Solutions 124.7   162.5  (23.3)%      Income (loss) from operations 21.4   (10.7) 300.0% 26.1  21.4  22.0%Operating margin 6.5% (3.1)% 960bps 7.9% 6.2% 170bpsEffective tax rate 25.7% (2.2)% 2,790bps 25.3% 23.9% 140bpsNet income (loss) attributable to controlling interest 16.7   (14.0) 219.3% 20.3  14.0  45.0%Diluted EPS 0.72   (0.61) 218.0% 0.88  0.61  44.3%EBITDA (a non-GAAP measure) 29.0   (4.4) 759.1% 33.7  27.6  22.1%EBITDA margin (a non-GAAP measure) 8.8% (1.3)% 1,010bps 10.2% 8.0% 220bps Segments Results Our two reportable segments are comprised of sites based upon the nature of the products or services produced, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations. Infrastructure Solutions - Road building equipment, asphalt and concrete plants, thermal storage solutions and related aftermarket parts. Net sales of $204.6 million decreased 7.6% primarily due to a challenging environment for mobile paving and forestry equipment. Demand for asphalt and concrete plants remained at healthy levels. Parts and Service remained stable.Segment Operating Adjusted EBITDA of $32.2 million increased 18.4% and Segment Operating Adjusted EBITDA margin of 15.7% increased 340 basis points. Materials Solutions - Processing equipment to crush, screen and convey aggregates and related aftermarket parts. Net sales of $125.7 million increased by 1.3%. We were encouraged by continued positive development of Implied Orders. We have seen initial signs of dealer inventory replenishment as rental utilization remains strong.Segment Operating Adjusted EBITDA of $14.2 million increased 39.2% and Segment Operating Adjusted EBITDA margin of 11.3% increased 310 basis points. Liquidity and Cash Flow Our total liquidity was $247.6 million, consisting of $87.8 million of cash and cash equivalents available for operating purposes and $159.8 million available for additional borrowings under our revolving credit facility.Operating Cash Flow in the quarter was $12.9 million and Free Cash Flow in the quarter was $9.0 million.In connection with the closing of the TerraSource acquisition, entered into a new credit agreement providing for (i) a revolving credit facility, a term loan facility, a swing line facility and a letter of credit facility, in an initial aggregate amount of up to $600.0 million, and (ii) an incremental facilities limit in an aggregate amount not to exceed $150.0 million. Second Quarter Capital Allocation Capital expenditures of $3.9 million.Dividend payment of $0.13 per share. Investor Conference Call and Webcast Astec will conduct a conference call and live webcast today, August 6, 2025, at 8:30 A.M. Eastern Time, to review its second quarter financial results as well as current business conditions and the proposed acquisition of TerraSource. To access the call, dial (888) 440-4118 on Wednesday, August 6, 2025 at least 10 minutes prior to the scheduled time for the call. International callers should dial +1 (646) 960-0833. You may also access a live webcast of the call at: https://events.q4inc.com/attendee/782370627 You will need to give your name and company affiliation and reference Astec. An archived webcast will be available for ninety days at www.astecindustries.com. A replay of the call can be accessed until August 20, 2025 by dialing (800) 770-2030, or (609) 800-9909 for international callers, Conference ID# 8741406. A transcript of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within 5 business days after the call. About Astec Astec, (www.astecindustries.com), is a manufacturer of specialized equipment for asphalt road building, aggregate processing and concrete production. Astec's manufacturing operations are divided into two primary business segments: Infrastructure Solutions that includes road building, asphalt and concrete plants, thermal and storage solutions; and Materials Solutions that include our aggregate processing equipment. Astec also operates a line of controls and automation products designed to deliver enhanced productivity through improved equipment performance. Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995 This News Release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate, anticipated benefits from the TerraSource acquisition, the United States and global economies and guidance for fiscal 2025. Statements in this News Release that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "believes," "should," "would," "could," "forecast," "management is of the opinion," use of the future tense and similar words or phrases. These forward-looking statements are based largely on management's expectations, which are subject to a number of known and unknown risks, uncertainties and other factors discussed and described in our most recent Annual Report on Form 10-K, including those risks described in Part I, Item 1A. Risk Factors thereof, and in other reports filed subsequently by us with the Securities and Exchange Commission, including those risks described in Part II, Item 1A in our most recent Quarterly Report on Form 10-Q, which may cause actual results, financial or otherwise, to be materially different from those anticipated, expressed or implied by the forward-looking statements. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law. For Additional Information Contact: Steve Anderson Senior Vice President of Administration and Investor RelationsPhone: (423) 899-5898 E-mail: sanderson@astecindustries.com Astec Industries Inc.Condensed Consolidated Statements of Operations(In millions, except shares in thousands and per share amounts; unaudited)  Three Months Ended June 30, Six Months Ended June 30,  2025   2024   2025   2024 Net sales$330.3  $345.5  $659.7  $654.7 Cost of sales 242.0   264.2   479.0   496.5 Gross profit 88.3   81.3   180.7   158.2         Operating expenses:       Selling, general and administrative expenses 67.0   71.1   138.9   142.5 Goodwill impairment —   20.2   —   20.2 Restructuring and other asset gains, net (0.1)  0.7   (0.1)  (0.1)Total operating expenses 66.9   92.0   138.8   162.6 Income (loss) from operations 21.4   (10.7)  41.9   (4.4)        Other income (expenses), net:       Interest expense (2.1)  (3.1)  (4.1)  (5.8)Other income, net 3.3   0.1   4.5   1.2 Income (loss) before income taxes 22.6   (13.7)  42.3   (9.0)Income tax provision 5.8   0.3   11.2   1.7 Net income (loss) 16.8   (14.0)  31.1   (10.7)Net (income) loss attributable to noncontrolling interest (0.1)  —   (0.1)  0.1 Net income (loss) attributable to controlling interest$16.7  $(14.0) $31.0  $(10.6)        Earnings per common share       Basic$0.73  $(0.61) $1.36  $(0.47)Diluted 0.72   (0.61)  1.35   (0.47)        Weighted average shares outstanding       Basic 22,877   22,797   22,855   22,779 Diluted 23,075   22,797   23,026   22,779  Astec Industries Inc.Reportable Segment Net Sales and Operating Adjusted EBITDA(In millions, except percentage data; unaudited) Reportable segment net sales exclude intersegment sales.  Three Months Ended June 30, 2025 2024 $ Change % ChangeRevenues from external customers       Infrastructure Solutions$204.6  $221.4  $(16.8) (7.6)%Materials Solutions 125.7   124.1   1.6  1.3%Net sales$330.3  $345.5  $(15.2) (4.4)%        Segment Operating Adjusted EBITDA       Infrastructure Solutions$32.2  $27.2  $5.0  18.4%Materials Solutions 14.2   10.2   4.0  39.2%Segment Operating Adjusted EBITDA - Reportable Segments 46.4   37.4     Reconciliation of Segment Operating Adjusted EBITDA to "Income (loss) before income taxes"       Corporate and Other (12.7)  (9.8)    Transformation program (3.4)  (11.1)    Restructuring and other related charges —   (0.9)    Goodwill impairment —   (20.2)    Gain on sale of property and equipment, net 0.1   0.2     Transaction costs (1.4)  —     Interest expense, net (0.5)  (2.7)    Depreciation and amortization (6.0)  (6.6)    Net income attributable to noncontrolling interest 0.1   —     Income (loss) before income taxes$22.6  $(13.7)            Segment Operating Adjusted EBITDA Margin2025 2024 Change  Infrastructure Solutions 15.7%  12.3%  340bps  Materials Solutions 11.3%  8.2%  310bps   (Continued) Astec Industries Inc.Reportable Segment Net Sales and Operating Adjusted EBITDA (Continued)(In millions, except percentage data; unaudited)  Six Months Ended June 30, 2025 2024 $ Change % ChangeRevenues from external customers       Infrastructure Solutions$440.6  $423.6  $17.0  4.0%Materials Solutions 219.1   231.1   (12.0) (5.2)%Net sales$659.7  $654.7  $5.0  0.8%        Segment Operating Adjusted EBITDA       Infrastructure Solutions$75.1  $52.8  $22.3  42.2%Materials Solutions 19.4   15.5   3.9  25.2%Segment Operating Adjusted EBITDA - Reportable Segments 94.5   68.3     Reconciliation of Segment Operating Adjusted EBITDA to "Income (loss) before income taxes"       Corporate and Other (25.6)  (21.8)    Transformation program (10.3)  (17.4)    Restructuring and other related charges —   (1.0)    Goodwill impairment —   (20.2)    Gain on sale of property and equipment, net 0.1   1.1     Transaction costs (2.2)  —     Interest expense, net (1.9)  (4.8)    Depreciation and amortization (12.4)  (13.1)    Net income (loss) attributable to noncontrolling interest 0.1   (0.1)    Income (loss) before income taxes$42.3  $(9.0)            Segment Operating Adjusted EBITDA Margin2025 2024 Change  Infrastructure Solutions 17.0%  12.5%  450bps  Materials Solutions 8.9%  6.7%  220bps   Astec Industries Inc.Condensed Consolidated Balance Sheets(In millions; unaudited)  June 30, 2025 December 31, 2024Assets   Current assets:   Cash, cash equivalents and restricted cash$88.7 $90.8Investments 2.9  3.0Trade receivables, contract assets and other receivables, net 159.9  167.2Inventories, net 448.8  422.7Other current assets, net 45.7  39.1Total current assets 746.0  722.8Property, plant and equipment, net 180.1  181.9Other long-term assets 139.3  138.9Total assets$1,065.4 $1,043.6    Liabilities   Current liabilities:   Accounts payable$89.1 $79.2Customer deposits 70.2  77.3Other current liabilities 115.5  115.2Total current liabilities 274.8  271.7Long-term debt 85.0  105.0Other long-term liabilities 30.7  29.3Total equity 674.9  637.6Total liabilities and equity$1,065.4 $1,043.6 Astec Industries Inc. Condensed Consolidated Statements of Cash Flows (In millions; unaudited)  Six Months Ended June 30, 2025 2024Cash flows from operating activities:   Net income (loss)$31.1  $(10.7)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities 27.8   39.8 Distributions to deferred compensation programs' participants (0.6)  (0.5)Change in operating assets and liabilities (24.9)  (64.7)Net cash provided by (used in) operating activities 33.4   (36.1)Cash flows from investing activities:   Expenditures for property and equipment (7.8)  (13.4)Proceeds from sale of property and equipment 0.2   1.1 Purchase of investments (0.6)  (0.7)Sale of investments 0.5   0.4 Net cash used in investing activities (7.7)  (12.6)Cash flows from financing activities:   Payment of dividends (5.9)  (5.9)Proceeds from borrowings on credit facilities and bank loans 102.3   107.2 Repayments of borrowings on credit facilities and bank loans (125.0)  (51.4)Sale of Company stock by deferred compensation programs, net 0.1   0.1 Withholding tax paid upon vesting of share-based compensation awards (0.7)  (0.5)Net cash (used in) provided by financing activities (29.2)  49.5 Effect of exchange rates on cash 1.4   (0.8)Decrease in cash, cash equivalents and restricted cash (2.1)  — Cash, cash equivalents and restricted cash, beginning of period 90.8   63.2 Cash, cash equivalents and restricted cash, end of period$88.7  $63.2  We present certain non-GAAP information that can be useful in understanding our operating results and the performance of our core business. We use both GAAP and non-GAAP financial measures to establish internal budgets and targets and to evaluate financial performance against such budgets and targets. We exclude the costs and related tax effects, which are based on the statutory tax rate applicable to each respective item unless otherwise noted below, of the following items as we do not believe they are indicative of our core business operations: Transformation program - Incremental costs related to the execution of our ongoing strategic transformation initiatives which may include personnel costs, third-party consultant costs, duplicative systems usage fees, administrative costs, accelerated depreciation and amortization on certain long-lived assets and other similar type charges. Transformation program initiatives include our multi-year phased implementation of a standardized enterprise resource planning system. These costs are included in "Cost of sales" and "Selling, general and administrative expenses", as appropriate, in the Consolidated Statements of Operations. Restructuring and other related charges - Charges related to restructuring activities, to the extent that they are experienced, may include personnel termination actions and reorganization efforts to simplify and consolidate our operations. These costs are recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations. Goodwill impairment - Goodwill impairment charges, to the extent that they are experienced, are recorded in "Goodwill impairment" in the Consolidated Statements of Operations. Asset impairment - Asset impairment charges, to the extent that they are experienced, are recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations. Gain on sale of property and equipment, net - Gains or losses recognized on the disposal of property and equipment that are recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations. We may sell or dispose of assets in the normal course of our business operations as they are no longer needed or used. Transaction costs - Costs associated with the pursuit of acquisition opportunities, including our recent TerraSource acquisition, or the effected acquisition and integration of acquired businesses. These costs are typically included in "Selling, general and administrative expenses" in the Consolidated Statements of Operations. Astec Industries Inc.GAAP vs Non-GAAP Adjusted Income from Operations Reconciliations(In millions, except percentage data; unaudited)  Three Months Ended June 30, Six Months Ended June 30,  2025   2024   2025   2024 Net sales$330.3  $345.5  $659.7  $654.7         Income (loss) from operations$21.4  $(10.7) $41.9  $(4.4)Adjustments:       Transformation program 3.4   11.2   10.4   17.7 Restructuring and other related charges —   0.9   —   1.0 Goodwill impairment —   20.2   —   20.2 Gain on sale of property and equipment, net (0.1)  (0.2)  (0.1)  (1.1)Transaction costs 1.4   —   2.2   — Adjusted income from operations$26.1  $21.4  $54.4  $33.4 Adjusted operating margin 7.9%  6.2%  8.2%  5.1% Astec Industries Inc.GAAP vs Non-GAAP Adjusted EPS Reconciliations(In millions, except per share amounts; unaudited)  Three Months Ended June 30, Six Months Ended June 30,  2025   2024   2025   2024 Net income (loss) attributable to controlling interest$16.7  $(14.0) $31.0  $(10.6)Adjustments:       Transformation program 3.4   11.2   10.4   17.7 Restructuring and other related charges —   0.9   —   1.0 Goodwill impairment —   20.2   —   20.2 Gain on sale of property and equipment, net (0.1)  (0.2)  (0.1)  (1.1)Transaction costs 1.4   —   2.2   — Income tax impact of adjustments (1.1)  (4.1)  (2.9)  (5.4)Adjusted net income attributable to controlling interest$20.3  $14.0  $40.6  $21.8         Diluted EPS$0.72  $(0.61) $1.35  $(0.47)Adjustments:       Transformation program (a) 0.15   0.49   0.44   0.78 Restructuring and other related charges —   0.03   —   0.05 Goodwill impairment —   0.89   —   0.89 Gain on sale of property and equipment, net —   (0.01)  —   (0.05)Transaction costs 0.06   —   0.10   — Income tax impact of adjustments (0.05)  (0.18)  (0.13)  (0.24)Adjusted EPS$0.88  $0.61  $1.76  $0.96         (a) Calculation includes the impact of a rounding adjustment Astec Industries Inc.EBITDA and Adjusted EBITDA Reconciliations(In millions, except percentage data; unaudited)  Three Months Ended June 30, Six Months Ended June 30,  2025   2024   2025   2024 Net sales$330.3  $345.5  $659.7  $654.7         Net income (loss) attributable to controlling interest$16.7  $(14.0) $31.0  $(10.6)Interest expense, net 0.5   2.7   1.9   4.8 Depreciation and amortization 6.0   6.6   12.4   13.1 Income tax provision 5.8   0.3   11.2   1.7 EBITDA 29.0   (4.4)  56.5   9.0 EBITDA margin 8.8% (1.3)%  8.6%  1.4%        Adjustments:       Transformation program 3.4   11.1   10.3   17.4 Restructuring and other related charges —   0.9   —   1.0 Goodwill impairment —   20.2   —   20.2 Gain on sale of property and equipment, net (0.1)  (0.2)  (0.1)  (1.1)Transaction costs 1.4   —   2.2   — Adjusted EBITDA$33.7  $27.6  $68.9  $46.5 Adjusted EBITDA margin 10.2%  8.0%  10.4%  7.1% Astec Industries Inc.Free Cash Flow Reconciliation(In millions; unaudited)     Three Months Ended June 30, Six Months Ended June 30,  2025   2024   2025   2024 Net cash provided by operating activities$12.9  $10.9  $33.4  $(36.1)Expenditures for property and equipment (3.9)  (7.6)  (7.8)  (13.4)Free cash flow$9.0  $3.3  $25.6  $(49.5)

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