Astec Reports Second Quarter 2025 Results
Astec Industries (NASDAQ: ASTE) reported strong Q2 2025 financial results with net sales of $330.3 million and net income of $16.7 million, compared to a $14.0 million loss in Q2 2024. The company achieved adjusted EBITDA of $33.7 million and diluted EPS of $0.72.
Key highlights include the acquisition of TerraSource, a materials processing equipment manufacturer with annual revenues exceeding $150 million. The company updated its full-year guidance, raising the lower end from $105M to $110M, with consolidated adjusted EBITDA expectations of $123-142 million, including TerraSource's projected contribution of $13-17 million.
By segment, Infrastructure Solutions reported sales of $204.6 million (down 7.6%) while Materials Solutions achieved $125.7 million (up 1.3%). The company maintained strong liquidity of $247.6 million.
Astec Industries (NASDAQ: ASTE) ha riportato solidi risultati finanziari nel secondo trimestre 2025 con vendite nette per 330,3 milioni di dollari e utile netto di 16,7 milioni di dollari, rispetto a una perdita di 14,0 milioni di dollari nel secondo trimestre 2024. L'azienda ha raggiunto un EBITDA rettificato di 33,7 milioni di dollari e un utile per azione diluito di 0,72 dollari.
Tra i punti salienti, l'acquisizione di TerraSource, un produttore di attrezzature per la lavorazione dei materiali con ricavi annui superiori a 150 milioni di dollari. L'azienda ha aggiornato le previsioni per l'intero anno, alzando il limite inferiore da 105 a 110 milioni di dollari, con aspettative di EBITDA rettificato consolidato tra 123 e 142 milioni di dollari, inclusa la contribuzione prevista di TerraSource tra 13 e 17 milioni di dollari.
Per segmento, Infrastructure Solutions ha registrato vendite per 204,6 milioni di dollari (in calo del 7,6%), mentre Materials Solutions ha raggiunto 125,7 milioni di dollari (in crescita dell'1,3%). L'azienda ha mantenuto una solida liquidità pari a 247,6 milioni di dollari.
Astec Industries (NASDAQ: ASTE) reportó sólidos resultados financieros en el segundo trimestre de 2025 con ventas netas de 330,3 millones de dólares y ingreso neto de 16,7 millones de dólares, en comparación con una pérdida de 14,0 millones de dólares en el segundo trimestre de 2024. La compañía logró un EBITDA ajustado de 33,7 millones de dólares y un EPS diluido de 0,72 dólares.
Entre los aspectos destacados está la adquisición de TerraSource, un fabricante de equipos para el procesamiento de materiales con ingresos anuales que superan los 150 millones de dólares. La empresa actualizó su guía para todo el año, elevando el límite inferior de 105 a 110 millones de dólares, con expectativas de EBITDA ajustado consolidado de 123 a 142 millones de dólares, incluyendo la contribución proyectada de TerraSource de 13 a 17 millones de dólares.
Por segmento, Infrastructure Solutions reportó ventas de 204,6 millones de dólares (una caída del 7,6%), mientras que Materials Solutions alcanzó 125,7 millones de dólares (un aumento del 1,3%). La compañía mantuvo una sólida liquidez de 247,6 millones de dólares.
Astec Industries (NASDAQ: ASTE)는 2025년 2분기에 3억 3,030만 달러의 순매출과 1,670만 달러의 순이익을 기록하며 강력한 실적을 발표했습니다. 이는 2024년 2분기 1,400만 달러 손실과 비교됩니다. 회사는 조정 EBITDA 3,370만 달러와 희석 주당순이익 0.72달러를 달성했습니다.
주요 내용으로는 연간 매출 1억 5천만 달러를 초과하는 소재 가공 장비 제조업체인 TerraSource 인수가 포함됩니다. 회사는 연간 가이던스를 하향 조정하여 하단을 1억 500만 달러에서 1억 1,000만 달러로 상향 조정했으며, TerraSource의 예상 기여분 1,300만~1,700만 달러를 포함한 통합 조정 EBITDA 1억 2,300만~1억 4,200만 달러를 기대하고 있습니다.
사업 부문별로는 Infrastructure Solutions가 2억 460만 달러의 매출을 기록하며 7.6% 감소했고, Materials Solutions는 1억 2,570만 달러로 1.3% 증가했습니다. 회사는 2억 4,760만 달러의 강력한 유동성을 유지했습니다.
Astec Industries (NASDAQ : ASTE) a annoncé de solides résultats financiers pour le deuxième trimestre 2025 avec des ventes nettes de 330,3 millions de dollars et un bénéfice net de 16,7 millions de dollars, contre une perte de 14,0 millions de dollars au deuxième trimestre 2024. La société a réalisé un EBITDA ajusté de 33,7 millions de dollars et un BPA dilué de 0,72 dollar.
Parmi les points forts figure l'acquisition de TerraSource, un fabricant d'équipements de traitement des matériaux avec un chiffre d'affaires annuel supérieur à 150 millions de dollars. La société a mis à jour ses prévisions annuelles, en relevant la borne inférieure de 105 à 110 millions de dollars, avec des attentes d'EBITDA ajusté consolidé comprises entre 123 et 142 millions de dollars, incluant la contribution projetée de TerraSource de 13 à 17 millions de dollars.
Par segment, Infrastructure Solutions a enregistré des ventes de 204,6 millions de dollars (en baisse de 7,6 %), tandis que Materials Solutions a atteint 125,7 millions de dollars (en hausse de 1,3 %). La société a maintenu une forte liquidité de 247,6 millions de dollars.
Astec Industries (NASDAQ: ASTE) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit Nettoerlösen von 330,3 Millionen US-Dollar und Nettoeinkommen von 16,7 Millionen US-Dollar, im Vergleich zu einem Verlust von 14,0 Millionen US-Dollar im zweiten Quartal 2024. Das Unternehmen erzielte ein bereinigtes EBITDA von 33,7 Millionen US-Dollar und einen verwässerten Gewinn je Aktie von 0,72 US-Dollar.
Zu den Highlights zählt die Übernahme von TerraSource, einem Hersteller von Materialverarbeitungsanlagen mit einem Jahresumsatz von über 150 Millionen US-Dollar. Das Unternehmen aktualisierte seine Jahresprognose und hob die Untergrenze von 105 Millionen auf 110 Millionen US-Dollar an, mit erwarteten konsolidierten bereinigten EBITDA von 123 bis 142 Millionen US-Dollar, einschließlich des erwarteten Beitrags von TerraSource in Höhe von 13 bis 17 Millionen US-Dollar.
Nach Segmenten verzeichnete Infrastructure Solutions einen Umsatz von 204,6 Millionen US-Dollar (minus 7,6 %), während Materials Solutions 125,7 Millionen US-Dollar (plus 1,3 %) erreichte. Das Unternehmen hielt eine starke Liquidität von 247,6 Millionen US-Dollar aufrecht.
- Net income improved significantly to $16.7M from a $14.0M loss in Q2 2024
- Adjusted EBITDA increased 22.1% to $33.7M with improved margins
- Strategic acquisition of TerraSource with $150M annual revenue, 60% from high-margin aftermarket parts
- Strong liquidity position of $247.6M and positive free cash flow of $9.0M
- Materials Solutions segment showed growth with 1.3% sales increase and 39.2% EBITDA growth
- Overall net sales declined 4.4% to $330.3M year-over-year
- Total backlog decreased 28.3% to $380.8M
- Infrastructure Solutions segment sales dropped 7.6% due to challenging mobile paving market
- Infrastructure Solutions backlog declined 30.5%
- Materials Solutions backlog decreased 23.3%
Insights
Astec shows impressive turnaround with strong profitability despite sales decline; TerraSource acquisition strengthens aftermarket business.
Astec Industries delivered significant profitability improvements in Q2 2025 despite a
The margin expansion story here is compelling - adjusted operating margin improved 170 basis points to
Segment performance shows diverging trends: Infrastructure Solutions revenue declined
The
The strategic acquisition of TerraSource represents a significant expansion, adding approximately
Management's confidence is evident in their upward revision of full-year guidance, raising the lower end of core business adjusted EBITDA expectations from
While the backlog decline suggests caution about future growth trajectory, early signs of dealer inventory replenishment in the Materials Solutions segment and stable parts and service business provide some optimism for stabilization.
Second Quarter 2025 Overview (all comparisons are made to the corresponding prior year second quarter unless otherwise specified):
- Net sales of
$330.3 million - Net income of
$16.7 million ; Adjusted net income of$20.3 million - EBITDA of
$29.0 million ; Adjusted EBITDA of$33.7 million - Diluted EPS of
$0.72 ; Adjusted EPS of$0.88 - Operating 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
Brian Harris, Chief Financial Officer, commented, "We were pleased to generate net income of
| GAAP | Adjusted | ||||||||||||||||||
| (in millions, except per share and percentage data) | 2Q 2025 | 2Q 2024 | Change | 2Q 2025 | 2Q 2024 | Change | |||||||||||||
| Net 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 | )% | 960 | bps | 7.9 | % | 6.2 | % | 170 | bps | |||||||
| Effective tax rate | 25.7 | % | (2.2 | )% | 2,790 | bps | 25.3 | % | 23.9 | % | 140 | bps | |||||||
| Net 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 | )% | 1,010 | bps | 10.2 | % | 8.0 | % | 220 | 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 - Road building equipment, asphalt and concrete plants, thermal storage solutions and related aftermarket parts.
- Net sales of
$204.6 million decreased7.6% 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 increased18.4% and Segment Operating Adjusted EBITDA margin of15.7% 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 by1.3% . 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 increased39.2% and Segment Operating Adjusted EBITDA margin of11.3% 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 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 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 | % Change | |||||||||||
| Revenues 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 Margin | 2025 | 2024 | Change | |||||||||||
| Infrastructure Solutions | 15.7 | % | 12.3 | % | 340 | bps | ||||||||
| Materials Solutions | 11.3 | % | 8.2 | % | 310 | bps | ||||||||
(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 | % Change | |||||||||||
| Revenues 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 Margin | 2025 | 2024 | Change | |||||||||||
| Infrastructure Solutions | 17.0 | % | 12.5 | % | 450 | bps | ||||||||
| Materials Solutions | 8.9 | % | 6.7 | % | 220 | bps | ||||||||
| Astec Industries Inc. Condensed Consolidated Balance Sheets (In millions; unaudited) | |||||
| June 30, 2025 | December 31, 2024 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash, cash equivalents and restricted cash | $ | 88.7 | $ | 90.8 | |
| Investments | 2.9 | 3.0 | |||
| Trade receivables, contract assets and other receivables, net | 159.9 | 167.2 | |||
| Inventories, net | 448.8 | 422.7 | |||
| Other current assets, net | 45.7 | 39.1 | |||
| Total current assets | 746.0 | 722.8 | |||
| Property, plant and equipment, net | 180.1 | 181.9 | |||
| Other long-term assets | 139.3 | 138.9 | |||
| Total assets | $ | 1,065.4 | $ | 1,043.6 | |
| Liabilities | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 89.1 | $ | 79.2 | |
| Customer deposits | 70.2 | 77.3 | |||
| Other current liabilities | 115.5 | 115.2 | |||
| Total current liabilities | 274.8 | 271.7 | |||
| Long-term debt | 85.0 | 105.0 | |||
| Other long-term liabilities | 30.7 | 29.3 | |||
| Total equity | 674.9 | 637.6 | |||
| Total 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 | 2024 | ||||||
| Cash 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 | ) | ||||||
FAQ
What were Astec's (ASTE) key financial results for Q2 2025?
How much did Astec's (ASTE) backlog change in Q2 2025?
What is Astec's updated guidance for 2025 following the TerraSource acquisition?
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How did Astec's business segments perform in Q2 2025?
