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Astec Reports Third Quarter 2025 Results

1. Astec reported net sales of $350.1 million, a 20.1% increase. 2. Adjusted EBITDA rose 55.7% to $27.1 million; shows operational improvements. 3. Acquisition of TerraSource enhanced sales, contributing to efficiency gains. 4. Despite a net loss of $4.2 million, operational performance signals growth. 5. Adjusted EPS improved by 30.6% to $0.47, indicating better profitability.

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FAQ

Why Bullish?

The strong quarterly performance and guidance updates reflect growth potential. In past instances, strong earnings often correlate with positive stock performance, as seen in similar cases in the infrastructure sector.

How important is it?

The quarterly report reveals substantial operational improvements and growth potential from the acquisition, suggesting positive investor sentiment and confidence.

Why Short Term?

Immediate effects from strong earnings typically influence stock prices quickly, although acquisition integration takes longer to mature fully.

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TERACATDE
Third Quarter 2025 Overview (all comparisons are made to the corresponding prior year third quarter unless otherwise specified): Net sales of $350.1 millionNet loss of $4.2 million; Adjusted net income of $10.8 millionEBITDA of $13.8 million; Adjusted EBITDA of $27.1 millionDiluted EPS of $(0.18); Adjusted EPS of $0.47 CHATTANOOGA, Tenn., Nov. 05, 2025 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial results for the third quarter ended September 30, 2025. "We were pleased to post another strong quarter evidencing our focus on delivering consistent profitability and growth," said Jaco van der Merwe, Chief Executive Officer. "Our operational advancements are gaining momentum, with manufacturing and procurement activities producing greater efficiencies and higher net sales. On July 1, 2025, we completed the acquisition of TerraSource Holdings, LLC ("TerraSource"), and results now reflect contributions from TerraSource. I am pleased with the collaboration between the Astec and TerraSource teams and our organization as a whole. Based on our performance to date, we are updating the lower end of our full year adjusted EBITDA guidance range from $123 million to $132 million while keeping the top end of the range unchanged at $142 million." Brian Harris, Chief Financial Officer, commented, "While net loss improved slightly from the prior year quarter, it was primarily impacted by the acquisition transaction costs and amortization of acquired intangible assets of $8.3 million and $6.2 million, respectively. We posted a 55.7% increase in adjusted EBITDA which grew to $27.1 million in the third quarter, compared to $17.4 million of adjusted EBITDA in the third quarter last year."  GAAP Adjusted(in millions, except per share and percentage data)3Q 2025 3Q 2024 Change 3Q 2025 3Q 2024 ChangeNet sales$350.1  $291.4  20.1%      Infrastructure Solutions 193.2   165.0  17.1%      Material Solutions 156.9   126.4  24.1%      Backlog 449.5   475.8  (5.5)%      Infrastructure Solutions 259.5   351.1  (26.1)%      Material Solutions 190.0   124.7  52.4%      Income (loss) from operations 1.1   (7.2) 115.3% 20.6  11.0  87.3%Operating margin 0.3% (2.5)% 280 bps 5.9% 3.8% 210 bpsEffective tax rate 17.6%  27.1% (950) bps 43.9% 18.6% 2,530 bpsNet (loss) income attributable to controlling interest (4.2)  (6.2) 32.3% 10.8  8.1  33.3%Diluted EPS (0.18)  (0.27) 33.3% 0.47  0.36  30.6%EBITDA (a non-GAAP measure) 13.8   0.6  2200.0% 27.1  17.4  55.7%EBITDA margin (a non-GAAP measure) 3.9%  0.2% 370 bps 7.7% 6.0% 170 bps                   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 - Design, engineer, manufacture and market a complete line of asphalt plants, concrete plants and their related components and ancillary equipment, including industrial automation controls and telematics platforms, as well as supply asphalt road construction equipment, industrial thermal systems, land clearing, recycling and other heavy equipment, along with aftermarket parts. Net sales of $193.2 million increased 17.1% primarily due to strong demand for asphalt plants and concrete plants, partially offset by a challenging environment for mobile paving and forestry equipment. Parts sales increased 14.8%.Segment Operating Adjusted EBITDA of $23.9 million increased 53.2% and Segment Operating Adjusted EBITDA margin of 12.4% increased 290 basis points. Materials Solutions - Design and manufacture heavy and soft rock processing equipment, in addition to servicing and supplying parts for the aggregate, civil construction, energy, mining, hydro-electric, recycling, ports and bulk material handling markets. Net sales of $156.9 million increased by 24.1% primarily due to the addition of TerraSource. We were encouraged by the continued stability of Implied Orders. We have seen initial signs of dealer inventory replenishment as rental utilization remains strong.Segment Operating Adjusted EBITDA of $15.4 million increased 6.2% and Segment Operating Adjusted EBITDA margin of 9.8% decreased 170 basis points primarily due to enhanced profitability in the third quarter of 2024 from the release of a 2023 litigation reserve of approximately $1.9 million. Liquidity and Cash Flow Our total liquidity was $312.1 million, consisting of $67.3 million of cash and cash equivalents available for operating purposes and $244.8 million available for additional borrowings under our revolving credit facility.Operating Cash Flow in the quarter was a negative $8.1 million and Free Cash Flow in the quarter was a negative $12.3 million. Third Quarter Capital Allocation Purchase of TerraSource for $252.4 million.Capital expenditures of $4.2 million.Dividend payment of $0.13 per share. Investor Conference Call and Webcast Astec will conduct a conference call and live webcast today, November 5, 2025, at 8:30 A.M. Eastern Time, to review its third quarter financial results. To access the call, dial (888) 440-4118 on Wednesday, November 5, 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/985225342 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 November 19, 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. Non-GAAP Measures In an effort to provide investors with additional information regarding the Company's results, the Company refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures which management believes provide useful information to investors. These non-GAAP measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management of the Company does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. Nonetheless, this non-GAAP information can be useful in understanding the Company's operating results and the performance of its core business. Management of the Company uses both GAAP and non-GAAP financial measures to establish internal budgets and targets to evaluate the Company's financial performance against such budgets and targets. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in the tables. When we provide guidance for adjusted EBITDA we do not provide a reconciliation of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjusted items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our Company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts. 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 September 30, Nine Months Ended September 30,  2025   2024   2025   2024 Net sales$350.1  $291.4  $1,009.8  $946.1 Cost of sales 265.9   224.6   744.9   721.1 Gross profit 84.2   66.8   264.9   225.0         Operating expenses:       Selling, general and administrative expenses 83.3   65.6   222.2   208.1 Goodwill impairment —   —   —   20.2 Restructuring and other asset (gains) losses, net (0.2)  8.4   (0.3)  8.3 Total operating expenses 83.1   74.0   221.9   236.6 Income (loss) from operations 1.1   (7.2)  43.0   (11.6)        Other expenses, net:       Interest expense (7.3)  (2.6)  (11.4)  (8.4)Other income, net 1.1   1.3   5.6   2.5 (Loss) income before income taxes (5.1)  (8.5)  37.2   (17.5)Income tax (benefit) provision (0.9)  (2.3)  10.3   (0.6)Net (loss) income (4.2)  (6.2)  26.9   (16.9)Net (income) loss attributable to noncontrolling interest —   —   (0.1)  0.1 Net (loss) income attributable to controlling interest$(4.2) $(6.2) $26.8  $(16.8)        Earnings per common share       Basic$(0.18) $(0.27) $1.17  $(0.74)Diluted (0.18)  (0.27)  1.16   (0.74)        Weighted average shares outstanding       Basic 22,890   22,816   22,867   22,792 Diluted 22,890   22,816   23,063   22,792                  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 September 30,  2025   2024  $ Change % ChangeRevenues from external customers       Infrastructure Solutions$193.2  $165.0  $28.2 17.1%Materials Solutions 156.9   126.4   30.5 24.1%Net sales$350.1  $291.4  $58.7 20.1%        Segment Operating Adjusted EBITDA       Infrastructure Solutions$23.9  $15.6  $8.3 53.2%Materials Solutions 15.4   14.5   0.9 6.2%Segment Operating Adjusted EBITDA - Reportable Segments 39.3   30.1     Reconciliation of Segment Operating Adjusted EBITDA to "(Loss) income before income taxes"       Corporate and Other (12.2)  (12.7)    Transformation program (5.2)  (8.4)    Restructuring and other related charges 0.2   (8.4)    Transaction costs (8.3)  —     Interest expense, net (6.6)  (2.1)    Depreciation and amortization (12.3)  (7.0)    (Loss) income before income taxes$(5.1) $(8.5)            Segment Operating Adjusted EBITDA Margin 2025   2024  Change  Infrastructure Solutions 12.4%  9.5% 290 bps  Materials Solutions 9.8%  11.5% (170) bps               Astec Industries Inc.Reportable Segment Net Sales and Operating Adjusted EBITDA (Continued)(In millions, except percentage data; unaudited)  Nine Months Ended September 30,  2025   2024  $ Change % ChangeRevenues from external customers       Infrastructure Solutions$633.8  $588.6  $45.2 7.7%Materials Solutions 376.0   357.5   18.5 5.2%Net sales$1,009.8  $946.1  $63.7 6.7%        Segment Operating Adjusted EBITDA       Infrastructure Solutions$99.0  $68.4  $30.6 44.7%Materials Solutions 34.8   30.0   4.8 16.0%Segment Operating Adjusted EBITDA - Reportable Segments 133.8   98.4     Reconciliation of Segment Operating Adjusted EBITDA to "(Loss) income before income taxes"       Corporate and Other (37.8)  (34.5)    Transformation program (15.5)  (25.8)    Restructuring and other related charges 0.2   (9.4)    Goodwill impairment —   (20.2)    Gain on sale of property and equipment, net 0.1   1.1     Transaction costs (10.5)  —     Interest expense, net (8.5)  (6.9)    Depreciation and amortization (24.7)  (20.1)    Net income (loss) attributable to noncontrolling interest 0.1   (0.1)    (Loss) income before income taxes$37.2  $(17.5)            Segment Operating Adjusted EBITDA Margin 2025   2024  Change  Infrastructure Solutions 15.6%  11.6% 400 bps  Materials Solutions 9.3%  8.4% 90 bps               Astec Industries Inc.Condensed Consolidated Balance Sheets(In millions; unaudited)  September 30, 2025 December 31, 2024Assets   Current assets:   Cash, cash equivalents and restricted cash$69.3 $90.8Investments 2.5  3.0Trade receivables, contract assets and other receivables, net 193.1  167.2Inventories, net 500.8  422.7Other current assets, net 55.5  39.1Total current assets 821.2  722.8Property, plant and equipment, net 198.9  181.9Other long-term assets 328.9  138.9Total assets$1,349.0 $1,043.6    Liabilities   Current liabilities:   Accounts payable$94.4 $79.2Customer deposits 76.1  77.3Other current liabilities 147.8  115.2Total current liabilities 318.3  271.7Long-term debt 323.6  105.0Other long-term liabilities 38.1  29.3Total equity 669.0  637.6Total liabilities and equity$1,349.0 $1,043.6 Astec Industries Inc.Condensed Consolidated Statements of Cash Flows(In millions; unaudited)  Nine Months Ended September 30,  2025   2024 Cash flows from operating activities:   Net income (loss)$26.9  $(16.9)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities 53.7   50.1 Distributions to deferred compensation programs' participants (0.9)  (0.8)Change in operating assets and liabilities (54.4)  (46.0)Net cash provided by (used in) operating activities 25.3   (13.6)Cash flows from investing activities:   Acquisitions, net of cash acquired (248.5)  — Expenditures for property and equipment (12.0)  (16.0)Proceeds from sale of property and equipment 0.2   2.3 Purchase of investments (0.8)  (0.9)Sale of investments 0.7   0.6 Net cash used in investing activities (260.4)  (14.0)Cash flows from financing activities:   Payment of dividends (8.9)  (8.9)Proceeds from borrowings on credit facilities and bank loans 454.8   140.6 Repayments of borrowings on credit facilities and bank loans (222.5)  (111.9)Payment of debt issuance costs (10.4)  — Sale of Company stock by deferred compensation programs, net 0.1   0.2 Withholding tax paid upon vesting of share-based compensation awards (0.7)  (0.5)Net cash provided by financing activities 212.4   19.5 Effect of exchange rates on cash 1.2   0.2 Decrease in cash, cash equivalents and restricted cash (21.5)  (7.9)Cash, cash equivalents and restricted cash, beginning of period 90.8   63.2 Cash, cash equivalents and restricted cash, end of period$69.3  $55.3          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. Beginning with the announcement of results for the third quarter of 2025, we will exclude amortization of acquired intangibles from the presentation of Adjusted income from operations, Adjusted net income attributable to controlling interest and Adjusted EPS. We have adopted this change to remove the effect of non-cash charges that are not affected by operations in any particular period unless an intangible asset becomes impaired, or the useful life of an intangible asset is revised. Prior periods have been updated to reflect this change. 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. Amortization of acquired intangible assets - Non-cash charges related to the amortization of acquired intangible assets. These costs are typically included in "Selling, general and administrative expenses" in the Consolidated Statements of Operations. 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 "Cost of sales" and "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 September 30, Nine Months Ended September 30,  2025   2024   2025   2024 Net sales$350.1  $291.4  $1,009.8  $946.1         Income (loss) from operations$1.1  $(7.2) $43.0  $(11.6)Adjustments:       Transformation program 5.2   8.7   15.6   26.4 Restructuring and other related charges (0.2)  8.4   (0.2)  9.4 Goodwill impairment —   —   —   20.2 Gain on sale of property and equipment, net —   —   (0.1)  (1.1)Amortization of acquired intangible assets 6.2   1.1   7.5   3.3 Transaction costs 8.3   —   10.5   — Adjusted income from operations$20.6  $11.0  $76.3  $46.6 Adjusted operating margin 5.9%  3.8%  7.6%  4.9%                 Astec Industries Inc.GAAP vs Non-GAAP Adjusted EPS Reconciliations(In millions, except per share amounts; unaudited)  Three Months Ended September 30, Nine Months Ended September 30,  2025   2024   2025   2024 Net (loss) income attributable to controlling interest$(4.2) $(6.2) $26.8  $(16.8)Adjustments:       Transformation program 5.2   8.7   15.6   26.4 Restructuring and other related charges (0.2)  8.4   (0.2)  9.4 Goodwill impairment —   —   —   20.2 Gain on sale of property and equipment, net —   —   (0.1)  (1.1)Amortization of acquired intangible assets 6.2   1.1   7.5   3.3 Transaction costs 8.3   —   10.5   — Income tax impact of adjustments (4.5)  (3.9)  (7.7)  (9.4)Adjusted net income attributable to controlling interest$10.8  $8.1  $52.4  $32.0         Diluted EPS$(0.18) $(0.27) $1.16  $(0.74)Adjustments:       Transformation program(a) 0.23   0.38   0.67   1.16 Restructuring and other related charges (0.01)  0.37   (0.01)  0.41 Goodwill impairment —   —   —   0.89 Gain on sale of property and equipment, net —   —   —   (0.05)Amortization of acquired intangible assets(a) 0.27   0.05   0.32   0.14 Transaction costs 0.36   —   0.46   — Income tax impact of adjustments (0.20)  (0.17)  (0.33)  (0.41)Adjusted EPS$0.47  $0.36  $2.27  $1.40         (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 September 30, Nine Months Ended September 30,  2025   2024   2025   2024 Net sales$350.1  $291.4  $1,009.8  $946.1         Net (loss) income attributable to controlling interest$(4.2) $(6.2) $26.8  $(16.8)Interest expense, net 6.6   2.1   8.5   6.9 Depreciation and amortization 12.3   7.0   24.7   20.1 Income tax (benefit) provision (0.9)  (2.3)  10.3   (0.6)EBITDA 13.8   0.6   70.3   9.6 EBITDA margin 3.9%  0.2%  7.0%  1.0%        Adjustments:       Transformation program 5.2   8.4   15.5   25.8 Restructuring and other related charges (0.2)  8.4   (0.2)  9.4 Goodwill impairment —   —   —   20.2 Gain on sale of property and equipment, net —   —   (0.1)  (1.1)Transaction costs 8.3   —   10.5   — Adjusted EBITDA$27.1  $17.4  $96.0  $63.9 Adjusted EBITDA margin 7.7%  6.0%  9.5%  6.8%                 Astec Industries Inc.Free Cash Flow Reconciliation(In millions; unaudited)  Three Months Ended September 30, Nine Months Ended September 30,  2025   2024   2025   2024 Net cash (used in) provided by operating activities$(8.1) $22.5  $25.3  $(13.6)Expenditures for property and equipment (4.2)  (2.6)  (12.0)  (16.0)Free cash flow$(12.3) $19.9  $13.3  $(29.6)

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