Astec Reports Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
Astec (Nasdaq: ASTE) reported record Q4 2025 net sales $400.6M and full year net sales of $1,410.4M. Full year net income was $38.8M and adjusted EBITDA was $140.7M. Q4 adjusted EBITDA was $44.7M. Backlog grew 22.5% to $514.1M. Operating cash flow for the year was $61.4M with full-year free cash flow of $20.7M. Company expects 2026 adjusted EBITDA $170M–$190M and cites stability from federal infrastructure funding.
AI-generated analysis. Not financial advice.
Positive
- Full year net income rose to $38.8M from $4.3M (802.3%)
- Adjusted EBITDA increased 25.8% to $140.7M for full year 2025
- Net sales grew 8.1% to $1,410.4M year-over-year
- Backlog increased 22.5% to $514.1M, supporting near-term demand
- Operating cash flow of $61.4M and full-year free cash flow $20.7M
- 2026 adjusted EBITDA guidance projected at $170M–$190M
Negative
- Q4 income from operations declined 34.2% to $22.9M, reducing quarterly profitability
- Q4 EBITDA fell 14.3% to $34.3M versus prior year quarter
- Q4 operating margin compressed 400 bps to 5.7%
- Infrastructure Solutions sales decreased 10.1% in Q4 to $223.6M; segment EBITDA down 33.5%
- Q4 adjusted EPS declined 13.1% to $1.06 versus prior year quarter
- Materials implied orders declined 6.8% sequentially, indicating near-term order variability
News Market Reaction – ASTE
On the day this news was published, ASTE gained 4.80%, reflecting a moderate positive market reaction. Argus tracked a trough of -14.6% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $67M to the company's valuation, bringing the market cap to $1.47B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves: gains for HY (+2.49%), BLBD (+2.50%), MTW (+1.94%) while LNN (-0.43%) and TWI (-0.28%) are slightly down, pointing to a stock-specific setup for ASTE.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Q3 2025 earnings | Neutral | -2.2% | Stronger sales and adjusted profit but GAAP net loss in Q3 2025. |
| Aug 06 | Q2 2025 earnings | Positive | -2.5% | Return to net income, higher adjusted EBITDA, and raised full-year guidance. |
| Feb 26 | Q4 2024 earnings | Positive | +13.9% | Record Q4 2024 results with higher net sales and record adjusted EPS. |
| Nov 06 | Q3 2024 earnings | Negative | +14.4% | Net loss and backlog decline despite improved adjusted EBITDA performance. |
| Aug 07 | Q2 2024 earnings | Negative | -0.3% | Sales decline, EPS loss with goodwill impairment, and lower adjusted EPS. |
Earnings have often driven meaningful moves, with an average move of 4.63% and several past reports showing double‑digit swings, sometimes contrary to headline fundamentals.
Recent earnings history for Astec shows a transition from mixed and loss-making quarters in 2024 toward improved profitability in 2025. Q2 and Q3 2025 results featured stronger net sales and rising adjusted EBITDA, aided by acquisitions such as TerraSource. Earlier 2024 reports highlighted backlog fluctuations and impairment-driven EPS volatility. Against this backdrop, the current report of record $400.6M Q4 net sales, higher full-year net income, and increased adjusted EBITDA guidance continues the narrative of operational and margin improvement.
Historical Comparison
In the past year, ASTE’s earnings releases moved the stock by an average of 4.63%, with both strong rallies and selloffs following quarterly reports.
Across recent earnings, Astec moved from 2024 quarters marked by losses, impairment charges, and backlog declines to 2025 results featuring higher net sales, improved adjusted EBITDA, and acquisitions like TerraSource contributing to Materials Solutions growth.
Market Pulse Summary
This announcement highlights record Q4 net sales of $400.6M, a $514.1M backlog, and full‑year adjusted EBITDA of $140.7M, alongside 2026 adjusted EBITDA guidance of $170–190M. Historical earnings releases have produced average moves of 4.63%, with both positive and negative reactions. Investors may watch execution in Infrastructure and Materials Solutions, cash generation versus capital spending, and how future quarters track against the new EBITDA outlook.
Key Terms
ebitda financial
adjusted ebitda financial
free cash flow financial
backlog financial
basis points financial
revolving credit facility financial
implied orders technical
operating margin financial
AI-generated analysis. Not financial advice.
Fourth Quarter 2025 Overview (all comparisons are made to the corresponding prior year fourth quarter unless otherwise specified):
- Record net sales of
$400.6 million - Net income of
$12.0 million ; Adjusted net income of$24.6 million - EBITDA of
$34.3 million ; Adjusted EBITDA of$44.7 million - Diluted EPS of
$0.52 ; Adjusted EPS of$1.06 - Operating cash flow of
$61.4 million ; Free cash flow of$20.7 million for full year 2025 - Backlog of
$514.1 million grew22.5%
CHATTANOOGA, Tenn., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial results for the fourth quarter and full year ended December 31, 2025.
"We are pleased to report strong fourth quarter and full year results evidencing our focus on consistency, profitability and growth" said Jaco van der Merwe, Chief Executive Officer. "We are optimistic about 2026 due to progress on our internal initiatives, positive customer sentiment and stability provided by federal infrastructure funding. Profitability and positive operating cash flow afford us the opportunity to fund organic and inorganic growth while remaining within our target leverage range of 1.5x to 2.5x."
Brian Harris, Chief Financial Officer, commented, "Full year net income of
| (in millions, except per share and percentage data) | 4Q 2025 | 4Q 2024 | Change | YTD 4Q 2025 | YTD 4Q 2024 | Change | |||||||||||||||
| Net sales | $ | 400.6 | $ | 359.0 | 11.6 | % | $ | 1,410.4 | $ | 1,305.1 | 8.1 | % | |||||||||
| Infrastructure Solutions | 223.6 | 248.8 | (10.1) | % | 857.4 | 837.4 | 2.4 | % | |||||||||||||
| Material Solutions | 177.0 | 110.2 | 60.6 | % | 553.0 | 467.7 | 18.2 | % | |||||||||||||
| Backlog | 514.1 | 419.6 | 22.5 | % | 514.1 | 419.6 | 22.5 | % | |||||||||||||
| Infrastructure Solutions | 294.2 | 305.5 | (3.7) | % | 294.2 | 305.5 | (3.7) | % | |||||||||||||
| Material Solutions | 219.9 | 114.1 | 92.7 | % | 219.9 | 114.1 | 92.7 | % | |||||||||||||
| Income from operations | 22.9 | 34.8 | (34.2) | % | 65.9 | 23.2 | 184.1 | % | |||||||||||||
| Operating margin | 5.7 | % | 9.7 | % | (400) | bps | 4.7 | % | 1.8 | % | 290 | bps | |||||||||
| Effective tax rate | 25.2 | % | 33.1 | % | (790) | bps | 26.9 | % | 70.5 | % | (4,360) | bps | |||||||||
| Net income attributable to controlling interest | 12.0 | 21.1 | (43.1) | % | 38.8 | 4.3 | 802.3 | % | |||||||||||||
| Diluted EPS | 0.52 | 0.92 | (43.5) | % | 1.68 | 0.19 | 784.2 | % | |||||||||||||
| EBITDA (a non-GAAP measure) | 34.3 | 40.0 | (14.3) | % | 104.6 | 49.6 | 110.9 | % | |||||||||||||
| EBITDA margin (a non-GAAP measure) | 8.6 | % | 11.1 | % | (250) | bps | 7.4 | % | 3.8 | % | 360 | bps | |||||||||
| Adjusted (Non-GAAP) | |||||||||||||||||||||
| Adjusted income from operations | 39.3 | 43.7 | (10.1) | % | 115.6 | 90.3 | 28.0 | % | |||||||||||||
| Adjusted operating margin | 9.8 | % | 12.2 | % | (240) | bps | 8.2 | % | 6.9 | % | 130 | bps | |||||||||
| Adjusted effective tax rate | 24.1 | % | 31.0 | % | (690) | bps | 25.1 | % | 27.2 | % | (210) | bps | |||||||||
| Adjusted net income attributable to controlling interest | 24.6 | 27.9 | (11.8) | % | 77.0 | 59.2 | 30.1 | % | |||||||||||||
| Adjusted EPS | 1.06 | 1.22 | (13.1) | % | 3.33 | 2.59 | 28.6 | % | |||||||||||||
| Adjusted EBITDA | 44.7 | 47.9 | (6.7) | % | 140.7 | 111.8 | 25.8 | % | |||||||||||||
| Adjusted EBITDA margin | 11.2 | % | 13.3 | % | (210) | bps | 10.0 | % | 8.6 | % | 140 | 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
$223.6 million decreased10.1% compared to a strong quarter the prior year. Demand for asphalt plants and concrete plants, partially offset a challenging environment for mobile paving and forestry equipment. Implied orders grew on a sequential and year-over-year basis by31.4% and27.1% , respectively. - Segment Operating Adjusted EBITDA of
$35.3 million decreased33.5% and Segment Operating Adjusted EBITDA margin of15.8% decreased 550 basis points compared to a strong fourth quarter the prior year. Mobile paving and forestry products continued to face challenging market conditions. Their respective backlogs increased but remain on the lower end of historical ranges.
Materials Solutions - Design and manufacture hard 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
$177.0 million increased by60.6% based on inorganic and organic growth. Acquired business performed in line with our expectations. Implied orders declined by6.8% on a sequential basis and grew107.0% due to organic and inorganic contributions. - Segment Operating Adjusted EBITDA of
$20.8 million increased188.9% and Segment Operating Adjusted EBITDA margin of11.8% increased 530 basis points due to increased organic profitability and inorganic contributions.
Liquidity and Cash Flow
- Our total liquidity was
$314.7 million , consisting of$70.0 million of cash and cash equivalents available for operating purposes and$244.7 million available for additional borrowings under our revolving credit facility. - Operating Cash Flow in the quarter was
$36.1 million and Free Cash Flow in the quarter was$7.4 million .
Fourth Quarter Capital Allocation
- Capital expenditures of
$28.7 million . - Dividend payment of
$0.13 per share.
Investor Conference Call and Webcast
Astec will conduct a conference call and live webcast today, February 25, 2026, at 8:30 A.M. Eastern Time, to review its fourth quarter and full year 2025 financial results.
To access the call, dial (800) 715-9871 on Wednesday, February 25, 2026, at least 10 minutes prior to the scheduled time for the call. International callers should dial +1 (646) 307-1963.
You may also access a live webcast of the call at: https://events.q4inc.com/attendee/944430465
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 March 11, 2026, by dialing (800) 770-2030, or +1(609) 800-9909 for international callers, Conference ID# 3662801. 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, the United States and global economies and guidance for fiscal 2026. 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 Relations
Phone: (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 December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net sales | $ | 400.6 | $ | 359.0 | $ | 1,410.4 | $ | 1,305.1 | |||||||
| Cost of sales | 291.3 | 256.1 | 1,036.2 | 977.2 | |||||||||||
| Gross profit | 109.3 | 102.9 | 374.2 | 327.9 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative expenses | 86.5 | 68.0 | 308.7 | 276.1 | |||||||||||
| Goodwill impairment | — | — | — | 20.2 | |||||||||||
| Restructuring and other asset (gains) losses, net | (0.1 | ) | 0.1 | (0.4 | ) | 8.4 | |||||||||
| Total operating expenses | 86.4 | 68.1 | 308.3 | 304.7 | |||||||||||
| Income from operations | 22.9 | 34.8 | 65.9 | 23.2 | |||||||||||
| Other expenses, net: | |||||||||||||||
| Interest expense | (7.1 | ) | (2.3 | ) | (18.5 | ) | (10.7 | ) | |||||||
| Other income (expenses), net | 0.1 | (1.1 | ) | 5.7 | 1.4 | ||||||||||
| Income before income taxes | 15.9 | 31.4 | 53.1 | 13.9 | |||||||||||
| Income tax provision | 4.0 | 10.4 | 14.3 | 9.8 | |||||||||||
| Net income | 11.9 | 21.0 | 38.8 | 4.1 | |||||||||||
| Net loss (income) attributable to noncontrolling interest | 0.1 | 0.1 | — | 0.2 | |||||||||||
| Net income attributable to controlling interest | $ | 12.0 | $ | 21.1 | $ | 38.8 | $ | 4.3 | |||||||
| Earnings per common share | |||||||||||||||
| Basic | $ | 0.52 | $ | 0.92 | $ | 1.70 | $ | 0.19 | |||||||
| Diluted | 0.52 | 0.92 | 1.68 | 0.19 | |||||||||||
| Weighted average shares outstanding | |||||||||||||||
| Basic | 22,893 | 22,821 | 22,874 | 22,799 | |||||||||||
| Diluted | 23,200 | 22,906 | 23,101 | 22,853 | |||||||||||
| 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 December 31, | ||||||||||||||
| 2025 | 2024 | $ Change | % Change | |||||||||||
| Revenues from external customers | ||||||||||||||
| Infrastructure Solutions | $ | 223.6 | $ | 248.8 | $ | (25.2 | ) | (10.1 | )% | |||||
| Materials Solutions | 177.0 | 110.2 | 66.8 | 60.6 | % | |||||||||
| Net sales | $ | 400.6 | $ | 359.0 | $ | 41.6 | 11.6 | % | ||||||
| Segment Operating Adjusted EBITDA | ||||||||||||||
| Infrastructure Solutions | $ | 35.3 | $ | 53.1 | $ | (17.8 | ) | (33.5 | )% | |||||
| Materials Solutions | 20.8 | 7.2 | 13.6 | 188.9 | % | |||||||||
| Segment Operating Adjusted EBITDA - Reportable Segments | 56.1 | 60.3 | ||||||||||||
| Reconciliation of Segment Operating Adjusted EBITDA to "Income before income taxes" | ||||||||||||||
| Corporate and Other | (11.4 | ) | (12.4 | ) | ||||||||||
| Transformation program | (4.1 | ) | (7.0 | ) | ||||||||||
| Restructuring and other related charges | — | (0.1 | ) | |||||||||||
| Gain on sale of property and equipment, net | 0.1 | — | ||||||||||||
| Acquisition and integration costs | (6.4 | ) | (0.8 | ) | ||||||||||
| Interest expense, net | (6.7 | ) | (1.8 | ) | ||||||||||
| Depreciation and amortization | (11.6 | ) | (6.7 | ) | ||||||||||
| Net loss attributable to noncontrolling interest | (0.1 | ) | (0.1 | ) | ||||||||||
| Income before income taxes | $ | 15.9 | $ | 31.4 | ||||||||||
| Segment Operating Adjusted EBITDA Margin | 2025 | 2024 | Change | |||||||||||
| Infrastructure Solutions | 15.8 | % | 21.3 | % | (550) | bps | ||||||||
| Materials Solutions | 11.8 | % | 6.5 | % | 530 | bps | ||||||||
| Astec Industries Inc. | |||||||||||||
| Reportable Segment Net Sales and Operating Adjusted EBITDA (Continued) | |||||||||||||
| (In millions, except percentage data; unaudited) | |||||||||||||
| Year Ended December 31, | |||||||||||||
| 2025 | 2024 | $ Change | % Change | ||||||||||
| Revenues from external customers | |||||||||||||
| Infrastructure Solutions | $ | 857.4 | $ | 837.4 | $ | 20.0 | 2.4 | % | |||||
| Materials Solutions | 553.0 | 467.7 | 85.3 | 18.2 | % | ||||||||
| Net sales | $ | 1,410.4 | $ | 1,305.1 | $ | 105.3 | 8.1 | % | |||||
| Segment Operating Adjusted EBITDA | |||||||||||||
| Infrastructure Solutions | $ | 134.3 | $ | 121.5 | $ | 12.8 | 10.5 | % | |||||
| Materials Solutions | 55.6 | 37.2 | 18.4 | 49.5 | % | ||||||||
| Segment Operating Adjusted EBITDA - Reportable Segments | 189.9 | 158.7 | |||||||||||
| Reconciliation of Segment Operating Adjusted EBITDA to "Income before income taxes" | |||||||||||||
| Corporate and Other | (49.2 | ) | (46.9 | ) | |||||||||
| Transformation program | (19.6 | ) | (32.8 | ) | |||||||||
| Restructuring and other related charges | 0.2 | (9.5 | ) | ||||||||||
| Goodwill impairment | — | (20.2 | ) | ||||||||||
| Gain on sale of property and equipment, net | 0.2 | 1.1 | |||||||||||
| Acquisition and integration costs | (16.9 | ) | (0.8 | ) | |||||||||
| Interest expense, net | (15.2 | ) | (8.7 | ) | |||||||||
| Depreciation and amortization | (36.3 | ) | (26.8 | ) | |||||||||
| Net loss attributable to noncontrolling interest | — | (0.2 | ) | ||||||||||
| Income before income taxes | $ | 53.1 | $ | 13.9 | |||||||||
| Segment Operating Adjusted EBITDA Margin | 2025 | 2024 | Change | ||||||||||
| Infrastructure Solutions | 15.7 | % | 14.5 | % | 120 bps | ||||||||
| Materials Solutions | 10.1 | % | 8.0 | % | 210 bps | ||||||||
| Astec Industries Inc. | |||||
| Condensed Consolidated Balance Sheets | |||||
| (In millions; unaudited) | |||||
| December 31, 2025 | December 31, 2024 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash, cash equivalents and restricted cash | $ | 72.0 | $ | 90.8 | |
| Investments | 2.1 | 3.0 | |||
| Trade receivables, contract assets and other receivables, net | 218.7 | 167.2 | |||
| Inventories, net | 466.0 | 422.7 | |||
| Other current assets, net | 57.8 | 39.1 | |||
| Total current assets | 816.6 | 722.8 | |||
| Property, plant and equipment, net | 222.3 | 181.9 | |||
| Other long-term assets | 328.3 | 138.9 | |||
| Total assets | $ | 1,367.2 | $ | 1,043.6 | |
| Liabilities | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 93.5 | $ | 79.2 | |
| Customer deposits | 83.7 | 77.3 | |||
| Other current liabilities | 150.8 | 115.2 | |||
| Total current liabilities | 328.0 | 271.7 | |||
| Long-term debt | 319.6 | 105.0 | |||
| Other long-term liabilities | 38.0 | 29.3 | |||
| Total equity | 681.6 | 637.6 | |||
| Total liabilities and equity | $ | 1,367.2 | $ | 1,043.6 | |
| Astec Industries Inc. | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (In millions; unaudited) | |||||||
| Year Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 38.8 | $ | 4.1 | |||
| Adjustments to reconcile net income to net cash provided by operating activities | 78.3 | 63.5 | |||||
| Distributions to deferred compensation programs' participants | (1.1 | ) | (1.1 | ) | |||
| Change in operating assets and liabilities | (54.6 | ) | (43.5 | ) | |||
| Net cash provided by operating activities | 61.4 | 23.0 | |||||
| Cash flows from investing activities: | |||||||
| Acquisitions, net of cash acquired | (248.7 | ) | — | ||||
| Expenditures for property and equipment | (40.7 | ) | (20.5 | ) | |||
| Proceeds from sale of property and equipment | 0.8 | 2.3 | |||||
| Proceeds from insurance | 0.7 | 0.4 | |||||
| Purchase of investments | (0.9 | ) | (1.1 | ) | |||
| Sale of investments | 1.0 | 0.9 | |||||
| Net cash used in investing activities | (287.8 | ) | (18.0 | ) | |||
| Cash flows from financing activities: | |||||||
| Payment of dividends | (11.9 | ) | (11.9 | ) | |||
| Proceeds from borrowings on credit facilities and bank loans | 459.1 | 215.6 | |||||
| Repayments of borrowings on credit facilities and bank loans | (230.1 | ) | (179.2 | ) | |||
| Payment of debt issuance costs | (10.4 | ) | — | ||||
| Sale of Company stock by deferred compensation programs, net | 0.1 | 0.4 | |||||
| Withholding tax paid upon vesting of share-based compensation awards | (0.7 | ) | (0.5 | ) | |||
| Net cash provided by financing activities | 206.1 | 24.4 | |||||
| Effect of exchange rates on cash | 1.5 | (1.8 | ) | ||||
| (Decrease) increase in cash, cash equivalents and restricted cash | (18.8 | ) | 27.6 | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 90.8 | 63.2 | |||||
| Cash, cash equivalents and restricted cash, end of period | $ | 72.0 | $ | 90.8 | |||
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 have excluded 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 (gains) 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 (gains) 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 (gains) 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.
- Acquisition and integration costs - Costs associated with the pursuit of acquisition opportunities 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 December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net sales | $ | 400.6 | $ | 359.0 | $ | 1,410.4 | $ | 1,305.1 | |||||||
| Income from operations | $ | 22.9 | $ | 34.8 | $ | 65.9 | $ | 23.2 | |||||||
| Adjustments: | |||||||||||||||
| Transformation program | 4.1 | 7.1 | 19.7 | 33.5 | |||||||||||
| Restructuring and other related charges | — | 0.1 | (0.2 | ) | 9.5 | ||||||||||
| Goodwill impairment | — | — | — | 20.2 | |||||||||||
| Gain on sale of property and equipment, net | (0.1 | ) | — | (0.2 | ) | (1.1 | ) | ||||||||
| Amortization of acquired intangible assets | 6.0 | 0.9 | 13.5 | 4.2 | |||||||||||
| Acquisition and integration costs | 6.4 | 0.8 | 16.9 | 0.8 | |||||||||||
| Adjusted income from operations | $ | 39.3 | $ | 43.7 | $ | 115.6 | $ | 90.3 | |||||||
| Adjusted operating margin | 9.8 | % | 12.2 | % | 8.2 | % | 6.9 | % | |||||||
| Astec Industries Inc. | |||||||||||||||
| GAAP vs Non-GAAP Adjusted EPS Reconciliations | |||||||||||||||
| (In millions, except per share amounts; unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income attributable to controlling interest | $ | 12.0 | $ | 21.1 | $ | 38.8 | $ | 4.3 | |||||||
| Adjustments: | |||||||||||||||
| Transformation program | 4.1 | 7.1 | 19.7 | 33.5 | |||||||||||
| Restructuring and other related charges | — | 0.1 | (0.2 | ) | 9.5 | ||||||||||
| Goodwill impairment | — | — | — | 20.2 | |||||||||||
| Gain on sale of property and equipment, net | (0.1 | ) | — | (0.2 | ) | (1.1 | ) | ||||||||
| Amortization of acquired intangible assets | 6.0 | 0.9 | 13.5 | 4.2 | |||||||||||
| Acquisition and integration costs | 6.4 | 0.8 | 16.9 | 0.8 | |||||||||||
| Income tax impact of adjustments | (3.8 | ) | (2.1 | ) | (11.5 | ) | (12.2 | ) | |||||||
| Adjusted net income attributable to controlling interest | $ | 24.6 | $ | 27.9 | $ | 77.0 | $ | 59.2 | |||||||
| Diluted EPS | $ | 0.52 | $ | 0.92 | $ | 1.68 | $ | 0.19 | |||||||
| Adjustments: | |||||||||||||||
| Transformation program (a) | 0.17 | 0.32 | 0.86 | 1.46 | |||||||||||
| Restructuring and other related charges | — | — | (0.01 | ) | 0.42 | ||||||||||
| Goodwill impairment | — | — | — | 0.88 | |||||||||||
| Gain on sale of property and equipment, net | — | — | (0.01 | ) | (0.05 | ) | |||||||||
| Amortization of acquired intangible assets | 0.26 | 0.04 | 0.58 | 0.18 | |||||||||||
| Acquisition and integration costs (a) | 0.27 | 0.03 | 0.73 | 0.04 | |||||||||||
| Income tax impact of adjustments | (0.16 | ) | (0.09 | ) | (0.50 | ) | (0.53 | ) | |||||||
| Adjusted EPS | $ | 1.06 | $ | 1.22 | $ | 3.33 | $ | 2.59 | |||||||
| (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 December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net sales | $ | 400.6 | $ | 359.0 | $ | 1,410.4 | $ | 1,305.1 | |||||||
| Net income attributable to controlling interest | $ | 12.0 | $ | 21.1 | $ | 38.8 | $ | 4.3 | |||||||
| Interest expense, net | 6.7 | 1.8 | 15.2 | 8.7 | |||||||||||
| Depreciation and amortization | 11.6 | 6.7 | 36.3 | 26.8 | |||||||||||
| Income tax provision | 4.0 | 10.4 | 14.3 | 9.8 | |||||||||||
| EBITDA | 34.3 | 40.0 | 104.6 | 49.6 | |||||||||||
| EBITDA margin | 8.6 | % | 11.1 | % | 7.4 | % | 3.8 | % | |||||||
| Adjustments: | |||||||||||||||
| Transformation program | 4.1 | 7.0 | 19.6 | 32.8 | |||||||||||
| Restructuring and other related charges | — | 0.1 | (0.2 | ) | 9.5 | ||||||||||
| Goodwill impairment | — | — | — | 20.2 | |||||||||||
| Gain on sale of property and equipment, net | (0.1 | ) | — | (0.2 | ) | (1.1 | ) | ||||||||
| Acquisition and integration costs | 6.4 | 0.8 | 16.9 | 0.8 | |||||||||||
| Adjusted EBITDA | $ | 44.7 | $ | 47.9 | $ | 140.7 | $ | 111.8 | |||||||
| Adjusted EBITDA margin | 11.2 | % | 13.3 | % | 10.0 | % | 8.6 | % | |||||||
| Astec Industries Inc. | |||||||||||||||
| Free Cash Flow Reconciliation | |||||||||||||||
| (In millions; unaudited) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net cash provided by operating activities | $ | 36.1 | $ | 36.6 | $ | 61.4 | $ | 23.0 | |||||||
| Expenditures for property and equipment | (28.7 | ) | (4.5 | ) | (40.7 | ) | (20.5 | ) | |||||||
| Free cash flow | $ | 7.4 | $ | 32.1 | $ | 20.7 | $ | 2.5 | |||||||
