Astec Industries (NASDAQ: ASTE) grows sales but Q1 2026 profit shrinks
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Astec Industries reported mixed first quarter 2026 results. Net sales rose to $396.3 million, up 20.3% from a year earlier, driven by 70.6% growth in Materials Solutions, while Infrastructure Solutions was roughly flat. GAAP net income fell to $1.3 million from $14.3 million as operating margin compressed to 2.3% and interest expense increased.
On a non-GAAP basis, adjusted net income was $12.5 million and adjusted EBITDA was $30.3 million, both down from the prior year, and adjusted EPS was $0.54. Backlog reached $549.2 million, up 36.4%, with both segments contributing. The company generated operating cash flow of $40.7 million and free cash flow of $32.6 million, maintained total liquidity of $267.5 million, and reaffirmed full-year 2026 adjusted EBITDA guidance of $170–$190 million.
Positive
- Backlog and growth momentum: Net sales rose 20.3% to $396.3 million and total backlog increased 36.4% to $549.2 million, with Materials Solutions segment sales up 70.6% and backlog up 87.5%, supporting management’s decision to maintain 2026 adjusted EBITDA guidance of $170–$190 million.
Negative
- Sharp earnings and margin deterioration: GAAP net income fell 90.9% to $1.3 million and operating margin dropped from 6.2% to 2.3%, while adjusted EBITDA declined from $35.2 million to $30.3 million amid higher costs and significantly higher interest expense.
Insights
Strong revenue and backlog growth offset by sharp margin and earnings pressure.
Astec Industries grew first quarter 2026 net sales to $396.3 million, up 20.3%, led by 70.6% growth in Materials Solutions. However, income from operations dropped from $20.5 million to $9.0 million as operating margin fell 390 basis points to 2.3%, reflecting mix, trade show costs and higher freight, duty and tariffs.
GAAP net income declined to $1.3 million from $14.3 million, while adjusted net income fell to $12.5 million and adjusted EBITDA to $30.3 million. Interest expense rose to $7.4 million, contributing to earnings pressure, and leverage stood at 2.3x within the stated 1.5–2.5% target range.
Despite weaker profitability, backlog increased 36.4% to $549.2 million, with Materials Solutions backlog up 87.5% and Infrastructure Solutions backlog up 13.1%. Management maintained full-year 2026 adjusted EBITDA guidance of $170–$190 million, indicating confidence that current order strength and end markets can support improved performance over the remainder of 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales: $396.3 million
Net income: $1.3 million
Adjusted EBITDA: $30.3 million
+5 more
8 metrics
Net sales
$396.3 million
Three months ended March 31, 2026; up 20.3% year over year
Net income
$1.3 million
Three months ended March 31, 2026; down 90.9% year over year
Adjusted EBITDA
$30.3 million
Three months ended March 31, 2026; down 13.9% year over year
Backlog
$549.2 million
End of Q1 2026; increased 36.4% from prior-year quarter
Operating cash flow
$40.7 million
Three months ended March 31, 2026; used in free cash flow calculation
Free cash flow
$32.6 million
Operating cash flow minus $8.1 million capital expenditures in Q1 2026
Adjusted EPS
$0.54
Three months ended March 31, 2026; down from $0.91 in Q1 2025
2026 adjusted EBITDA guidance
$170–$190 million
Full-year 2026 guidance maintained by management
Key Terms
Adjusted EBITDA, Free cash flow, backlog, transformation program, +2 more
6 terms
Adjusted EBITDA financial
"EBITDA of $23.6 million; Adjusted EBITDA of $30.3 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free cash flow financial
"Operating cash flow of $40.7 million; Free cash flow of $32.6 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
backlog financial
"Backlog of $549.2 million grew 36.4%"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
transformation program financial
"Transformation program - Incremental costs related to the execution of our ongoing strategic transformation initiatives"
amortization of acquired intangible assets financial
"Beginning with the announcement of results for the third quarter of 2025, we have excluded amortization of acquired intangibles"
Amortization of acquired intangible assets is the gradual allocation of the purchase cost of non-physical items a company bought—like patents, brands, customer lists or software—spread over their expected useful life. It matters to investors because this accounting charge reduces reported profits even though it does not use cash at the time, so understanding it helps separate bookkeeping effects from underlying cash performance and valuation.
Segment Operating Adjusted EBITDA financial
"Segment Operating Adjusted EBITDA of $34.8 million decreased 18.9%"
Earnings Snapshot
Net sales: $396.3 million · Guidance included
Q1 2026
Net sales
$396.3 million
+20.3% YoY
Net income attributable to controlling interest
$1.3 million
-90.9% YoY
Adjusted EBITDA
$30.3 million
-13.9% YoY
Diluted EPS
$0.06
-90.3% YoY
Adjusted EPS
$0.54
-40.7% YoY
Guidance
Full-year 2026 adjusted EBITDA guidance maintained in the $170 million to $190 million range.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (423 ) 899-5898
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On May 6, 2026, Astec Industries, Inc. (the "Company") reported results of operations for the three months ended March 31, 2026. A copy of that press release is attached as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d)Exhibits
| 99.1 | News release dated May 6, 2026 | |||||||
| 104 | Cover Page Interactive Data File embedded within the Inline XBRL document | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Astec Industries, Inc. | ||||||||
Date: May 6, 2026 | By: | /s/ Brian J. Harris | ||||||
Brian J. Harris | ||||||||
| Chief Financial Officer | ||||||||
 | NEWS RELEASE | ||||
ASTEC REPORTS FIRST QUARTER 2026 RESULTS
First Quarter 2026 Overview (all comparisons are made to the corresponding prior year first quarter unless otherwise specified):
•Net sales of $396.3 million
•Net income of $1.3 million; Adjusted net income of $12.5 million
•EBITDA of $23.6 million; Adjusted EBITDA of $30.3 million
•Diluted EPS of $0.06; Adjusted EPS of $0.54
•Operating cash flow of $40.7 million; Free cash flow of $32.6 million
•Backlog of $549.2 million grew 36.4%
CHATTANOOGA, Tenn. (May 6, 2026) – Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial results for the first quarter ended March 31, 2026.
"A 70.6% increase in Materials Solutions net sales was primarily driven by organic and inorganic contributions. Infrastructure Solutions net sales were relatively flat after the inclusion of inorganic sales which offset timing and mix-related shortfalls in our legacy business." said Jaco van der Merwe, Chief Executive Officer. "We are optimistic about the remainder of 2026 due to favorable order activity and strong end markets. As such, we are maintaining our full year 2026 adjusted EBITDA guidance in the $170 million to $190 million range."
Brian Harris, Chief Financial Officer, commented, "First quarter profitability was impacted by timing and mix in legacy Infrastructure Solutions net sales and expenses associated with the ConExpo trade show held once every three years. Freight, duty, and tariffs were also a headwind to margin. We finished the quarter with leverage of 2.3x, which is within our target leverage range of 1.5x to 2.5x. We are well-positioned for additional organic and inorganic growth."
| GAAP | Adjusted | ||||||||||||||||||||||||||||||||||
| (in millions, except per share and percentage data) | 1Q 2026 | 1Q 2025 | Change | 1Q 2026 | 1Q 2025 | Change | |||||||||||||||||||||||||||||
| Net sales | $ | 396.3 | $ | 329.4 | 20.3 | % | |||||||||||||||||||||||||||||
| Infrastructure Solutions | 237.0 | 236.0 | 0.4 | % | |||||||||||||||||||||||||||||||
| Material Solutions | 159.3 | 93.4 | 70.6 | % | |||||||||||||||||||||||||||||||
| Backlog | 549.2 | 402.6 | 36.4 | % | |||||||||||||||||||||||||||||||
| Infrastructure Solutions | 312.6 | 276.4 | 13.1 | % | |||||||||||||||||||||||||||||||
| Material Solutions | 236.6 | 126.2 | 87.5 | % | |||||||||||||||||||||||||||||||
| Income from operations | 9.0 | 20.5 | (56.1) | % | 23.6 | 29.0 | (18.6) | % | |||||||||||||||||||||||||||
| Operating margin | 2.3 | % | 6.2 | % | (390) | bps | 6.0 | % | 8.8 | % | (280) | bps | |||||||||||||||||||||||
| Effective tax rate | 53.6 | % | 27.4 | % | 2,620 | bps | 28.2 | % | 25.9 | % | 230 | bps | |||||||||||||||||||||||
| Net income attributable to controlling interest | 1.3 | 14.3 | (90.9) | % | 12.5 | 20.9 | (40.2) | % | |||||||||||||||||||||||||||
| Diluted EPS | 0.06 | 0.62 | (90.3) | % | 0.54 | 0.91 | (40.7) | % | |||||||||||||||||||||||||||
| EBITDA (a non-GAAP measure) | 23.6 | 27.5 | (14.2) | % | 30.3 | 35.2 | (13.9) | % | |||||||||||||||||||||||||||
| EBITDA margin (a non-GAAP measure) | 6.0 | % | 8.3 | % | (230) | bps | 7.6 | % | 10.7 | % | (310) | bps | |||||||||||||||||||||||
Segments Results
Our 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
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
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supply asphalt road construction equipment, industrial thermal systems, land clearing, recycling and other heavy equipment, along with aftermarket parts.
•Net sales of $237.0 million increased 0.4% compared to a strong quarter the prior year. Our acquired business performed in line with expectations and offset the impact of timing in legacy net sales. Organic backlog increased slightly and remained at a healthy level. The book to bill ratio was 101%.
•Segment Operating Adjusted EBITDA of $34.8 million decreased 18.9% and Segment Operating Adjusted EBITDA margin of 14.7% decreased 350 basis points compared to a strong first quarter the prior year.
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 $159.3 million increased by 70.6% due to organic growth and inorganic contributions. Implied orders declined 14.9% sequentially from a strong fourth quarter in 2025. The book to bill ratio stood at 110%.
•Segment Operating Adjusted EBITDA of $8.9 million increased 71.2% and Segment Operating Adjusted EBITDA margin was 5.6% for both the first quarters of 2026 and 2025.
Liquidity and Cash Flow
•Our total liquidity was $267.5 million, consisting of $73.4 million of cash and cash equivalents available for operating purposes and $194.1 million available for additional borrowings under our revolving credit facility.
•Operating Cash Flow in the quarter was $40.7 million and Free Cash Flow in the quarter was $32.6 million.
First Quarter Capital Allocation
•Capital expenditures of $8.1 million.
•Dividend payment of $0.13 per share.
Investor Conference Call and Webcast
Astec will conduct a conference call and live webcast today, May 6, 2026, at 8:30 A.M. Eastern Time, to review its first quarter 2026 financial results.
To access the call, dial (800) 715-9871 on Wednesday, May 6, 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/207358450
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 May 20, 2026, by dialing (800) 770-2030, or +1(609) 800-9909 for international callers, Conference ID# 2593169. 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
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
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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
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
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Astec Industries Inc.
Condensed Consolidated Statements of Operations
(In millions, except shares in thousands and per share amounts; unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net sales | $ | 396.3 | $ | 329.4 | |||||||
| Cost of sales | 297.2 | 237.0 | |||||||||
| Gross profit | 99.1 | 92.4 | |||||||||
| Operating expenses: | |||||||||||
| Selling, general and administrative expenses | 90.2 | 71.9 | |||||||||
| Other operating gains, net | (0.1) | — | |||||||||
| Total operating expenses | 90.1 | 71.9 | |||||||||
| Income from operations | 9.0 | 20.5 | |||||||||
| Other expenses, net: | |||||||||||
| Interest expense | (7.4) | (2.0) | |||||||||
| Other income, net | 1.2 | 1.2 | |||||||||
| Income before income taxes | 2.8 | 19.7 | |||||||||
| Income tax provision | 1.5 | 5.4 | |||||||||
| Net income | 1.3 | 14.3 | |||||||||
| Net income attributable to noncontrolling interest | — | — | |||||||||
| Net income attributable to controlling interest | $ | 1.3 | $ | 14.3 | |||||||
| Earnings per common share | |||||||||||
| Basic | $ | 0.06 | $ | 0.63 | |||||||
| Diluted | 0.06 | 0.62 | |||||||||
| Weighted average shares outstanding | |||||||||||
| Basic | 22,939 | 22,833 | |||||||||
| Diluted | 23,251 | 22,977 | |||||||||
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
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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 March 31, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| Revenues from external customers | |||||||||||||||||||||||
| Infrastructure Solutions | $ | 237.0 | $ | 236.0 | $ | 1.0 | 0.4 | % | |||||||||||||||
| Materials Solutions | 159.3 | 93.4 | 65.9 | 70.6 | % | ||||||||||||||||||
| Net sales | $ | 396.3 | $ | 329.4 | $ | 66.9 | 20.3 | % | |||||||||||||||
| Segment Operating Adjusted EBITDA | |||||||||||||||||||||||
| Infrastructure Solutions | $ | 34.8 | $ | 42.9 | $ | (8.1) | (18.9) | % | |||||||||||||||
| Materials Solutions | 8.9 | 5.2 | 3.7 | 71.2 | % | ||||||||||||||||||
| Segment Operating Adjusted EBITDA - Reportable Segments | 43.7 | 48.1 | |||||||||||||||||||||
Reconciliation of Segment Operating Adjusted EBITDA to "Income before income taxes" | |||||||||||||||||||||||
| Corporate and Other | (13.4) | (12.9) | |||||||||||||||||||||
| Transformation program | (3.8) | (6.9) | |||||||||||||||||||||
| Acquisition and integration costs | (2.9) | (0.8) | |||||||||||||||||||||
| Interest expense, net | (6.6) | (1.4) | |||||||||||||||||||||
| Depreciation and amortization | (14.2) | (6.4) | |||||||||||||||||||||
| Income before income taxes | $ | 2.8 | $ | 19.7 | |||||||||||||||||||
| Segment Operating Adjusted EBITDA Margin | 2026 | 2025 | Change | ||||||||||||||||||||
| Infrastructure Solutions | 14.7 | % | 18.2 | % | (350) | bps | |||||||||||||||||
| Materials Solutions | 5.6 | % | 5.6 | % | — | bps | |||||||||||||||||
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
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Astec Industries Inc.
Condensed Consolidated Balance Sheets
(In millions; unaudited)
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash, cash equivalents and restricted cash | $ | 75.0 | $ | 72.0 | |||||||
| Investments | 1.9 | 2.1 | |||||||||
| Trade receivables, contract assets and other receivables, net | 215.6 | 218.7 | |||||||||
| Inventories, net | 469.8 | 466.0 | |||||||||
| Other current assets, net | 57.2 | 57.8 | |||||||||
| Total current assets | 819.5 | 816.6 | |||||||||
| Property, plant and equipment, net | 238.5 | 222.3 | |||||||||
| Other long-term assets | 370.9 | 328.3 | |||||||||
| Total assets | $ | 1,428.9 | $ | 1,367.2 | |||||||
| Liabilities | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 108.2 | $ | 93.5 | |||||||
| Customer deposits | 96.1 | 83.7 | |||||||||
| Other current liabilities | 145.3 | 150.8 | |||||||||
| Total current liabilities | 349.6 | 328.0 | |||||||||
| Long-term debt | 365.5 | 319.6 | |||||||||
| Other long-term liabilities | 35.7 | 38.0 | |||||||||
| Total equity | 678.1 | 681.6 | |||||||||
| Total liabilities and equity | $ | 1,428.9 | $ | 1,367.2 | |||||||
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
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Astec Industries Inc.
Condensed Consolidated Statements of Cash Flows
(In millions; unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 1.3 | $ | 14.3 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities | 20.7 | 13.3 | |||||||||
| Change in operating assets and liabilities | 18.7 | (7.1) | |||||||||
| Net cash provided by operating activities | 40.7 | 20.5 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Acquisitions, net of cash acquired | (67.9) | — | |||||||||
| Expenditures for property and equipment | (8.1) | (3.9) | |||||||||
| Proceeds from sale of property and equipment | 0.1 | — | |||||||||
| Proceeds from insurance | 0.1 | — | |||||||||
| Purchase of investments | (0.6) | (0.4) | |||||||||
| Sale of investments | 0.2 | 0.1 | |||||||||
| Net cash used in investing activities | (76.2) | (4.2) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Payment of dividends | (3.0) | (2.9) | |||||||||
| Proceeds from borrowings on credit facilities and bank loans | 117.8 | 95.5 | |||||||||
| Repayments of borrowings on credit facilities and bank loans | (73.2) | (106.9) | |||||||||
| Withholding tax paid upon vesting of share-based compensation awards | (2.6) | (0.7) | |||||||||
| Net cash provided by (used in) financing activities | 39.0 | (15.0) | |||||||||
| Effect of exchange rates on cash | (0.5) | 0.5 | |||||||||
| Increase in cash, cash equivalents and restricted cash | 3.0 | 1.8 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 72.0 | 90.8 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 75.0 | $ | 92.6 | |||||||
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
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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.
Additionally, beginning with the announcement of results for the first quarter of 2026, we have included the gain or loss on sale of property and equipment in the presentation of Adjusted income from operations, Adjusted net income attributable to controlling interest, Adjusted EPS and Adjusted EBITDA.
Prior periods have been updated to reflect these changes.
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 "Other operating gains, 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 "Other operating gains, net" in the Consolidated Statements of Operations.
•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.
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
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Astec Industries Inc.
GAAP vs Non-GAAP Adjusted Income from Operations Reconciliations
(In millions, except percentage data; unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net sales | $ | 396.3 | $ | 329.4 | |||||||
| Income from operations | $ | 9.0 | $ | 20.5 | |||||||
| Adjustments: | |||||||||||
| Transformation program | 3.8 | 7.0 | |||||||||
| Amortization of acquired intangible assets | 7.9 | 0.7 | |||||||||
| Acquisition and integration costs | 2.9 | 0.8 | |||||||||
| Adjusted income from operations | $ | 23.6 | $ | 29.0 | |||||||
| Adjusted operating margin | 6.0 | % | 8.8 | % | |||||||
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
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Astec Industries Inc.
GAAP vs Non-GAAP Adjusted EPS Reconciliations
(In millions, except per share amounts; unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income attributable to controlling interest | $ | 1.3 | $ | 14.3 | |||||||
| Adjustments: | |||||||||||
| Transformation program | 3.8 | 7.0 | |||||||||
| Amortization of acquired intangible assets | 7.9 | 0.7 | |||||||||
| Acquisition and integration costs | 2.9 | 0.8 | |||||||||
| Income tax impact of adjustments | (3.4) | (1.9) | |||||||||
| Adjusted net income attributable to controlling interest | $ | 12.5 | $ | 20.9 | |||||||
| Diluted EPS | $ | 0.06 | $ | 0.62 | |||||||
| Adjustments: | |||||||||||
Transformation program (a) | 0.17 | 0.31 | |||||||||
| Amortization of acquired intangible assets | 0.34 | 0.03 | |||||||||
| Acquisition and integration costs | 0.12 | 0.03 | |||||||||
| Income tax impact of adjustments | (0.15) | (0.08) | |||||||||
| Adjusted EPS | $ | 0.54 | $ | 0.91 | |||||||
(a) Calculation includes the impact of a rounding adjustment | |||||||||||
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
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Astec Industries Inc.
EBITDA and Adjusted EBITDA Reconciliations
(In millions, except percentage data; unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net sales | $ | 396.3 | $ | 329.4 | |||||||
| Net income attributable to controlling interest | $ | 1.3 | $ | 14.3 | |||||||
| Interest expense, net | 6.6 | 1.4 | |||||||||
| Depreciation and amortization | 14.2 | 6.4 | |||||||||
| Income tax provision | 1.5 | 5.4 | |||||||||
| EBITDA | 23.6 | 27.5 | |||||||||
| EBITDA margin | 6.0 | % | 8.3 | % | |||||||
| Adjustments: | |||||||||||
| Transformation program | 3.8 | 6.9 | |||||||||
| Acquisition and integration costs | 2.9 | 0.8 | |||||||||
| Adjusted EBITDA | $ | 30.3 | $ | 35.2 | |||||||
| Adjusted EBITDA margin | 7.6 | % | 10.7 | % | |||||||
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
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Astec Industries Inc.
Free Cash Flow Reconciliation
(In millions; unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities | $ | 40.7 | $ | 20.5 | |||||||
| Expenditures for property and equipment | (8.1) | (3.9) | |||||||||
| Free cash flow | $ | 32.6 | $ | 16.6 | |||||||
1725 Shepherd Road | Chattanooga, Tennessee 37421 | 423.899.5898 | astecindustries.com
FAQ
How did Astec Industries (ASTE) perform financially in Q1 2026?
Astec Industries grew net sales to $396.3 million, up 20.3% year over year, but GAAP net income fell to $1.3 million from $14.3 million. Operating margin compressed to 2.3%, and adjusted EBITDA declined to $30.3 million despite strong revenue expansion and backlog growth.
How did Astec Industries’ business segments perform in Q1 2026?
Infrastructure Solutions net sales were $237.0 million, up 0.4%, with segment operating adjusted EBITDA of $34.8 million and a 14.7% margin. Materials Solutions net sales reached $159.3 million, up 70.6%, while segment operating adjusted EBITDA rose to $8.9 million with a 5.6% margin.
What was Astec Industries’ backlog at the end of Q1 2026?
Astec ended Q1 2026 with total backlog of $549.2 million, up 36.4% from $402.6 million a year earlier. Infrastructure Solutions backlog was $312.6 million and Materials Solutions backlog was $236.6 million, indicating strong demand across both core business segments.
Did Astec Industries maintain its 2026 guidance in this 8-K filing?
Yes. Management reaffirmed full-year 2026 adjusted EBITDA guidance in the range of $170 million to $190 million. They cited favorable order activity, strong end markets, and a healthy backlog position as reasons for maintaining this outlook despite softer first quarter profitability.
What was Astec Industries’ cash flow and liquidity position in Q1 2026?
Astec generated $40.7 million of operating cash flow and $32.6 million of free cash flow in Q1 2026. Total liquidity was $267.5 million, including $73.4 million of cash and cash equivalents and $194.1 million available under the revolving credit facility, supporting ongoing operations and growth initiatives.