Astec Industries Inc
NASDAQ:ASTE
Astec Industries Inc
Astec Industries, Inc. engages in the manufacture of equipment and components for the infrastructure, and aggregate and mining industries. The company is headquartered in Chattanooga, Tennessee and currently employs 4,041 full-time employees. The firm operates through two segments: Infrastructure Solutions and Materials Solutions. The Infrastructure Solutions segment consists of approximately 12 sites and designs, engineers, manufactures and markets a complete line of asphalt plants, concrete plants and their related components and ancillary equipment, as well as supplying other heavy equipment. The Materials Solutions segment consists of nine sites and designs and manufactures heavy processing equipment, in addition to servicing and supplying parts for the aggregate, metallic mining, recycling, ports and bulk handling markets. Its products are marketed both domestically and internationally primarily to asphalt producers; highway and heavy equipment contractors; utility contractors; construction, demolition, recycle and crushing contractors, and others.
Astec Industries, Inc. engages in the manufacture of equipment and components for the infrastructure, and aggregate and mining industries. The company is headquartered in Chattanooga, Tennessee and currently employs 4,041 full-time employees. The firm operates through two segments: Infrastructure Solutions and Materials Solutions. The Infrastructure Solutions segment consists of approximately 12 sites and designs, engineers, manufactures and markets a complete line of asphalt plants, concrete plants and their related components and ancillary equipment, as well as supplying other heavy equipment. The Materials Solutions segment consists of nine sites and designs and manufactures heavy processing equipment, in addition to servicing and supplying parts for the aggregate, metallic mining, recycling, ports and bulk handling markets. Its products are marketed both domestically and internationally primarily to asphalt producers; highway and heavy equipment contractors; utility contractors; construction, demolition, recycle and crushing contractors, and others.
Strong Quarter: Astec delivered another solid quarter, with higher net sales and a significant increase in adjusted EBITDA and earnings per share.
Margin Expansion: Adjusted EBITDA margin improved by 170 basis points year-over-year, reaching its highest level since Q3 2017.
Guidance Raised: Management raised the lower end of full-year adjusted EBITDA guidance to $132 million (previously $123M), citing strong order fill and visibility for Q4.
Backlog Growth: Backlog rose to $449.5 million, boosted by the TerraSource acquisition and slightly higher backlogs in legacy segments.
Parts Business Strength: Parts sales grew substantially, especially in Infrastructure Solutions, with the company-wide parts mix increasing to about 32%.
TerraSource Integration: The TerraSource acquisition is progressing well, with accretive margins and synergy benefits expected to show up more fully in 2026.
Tariff Mitigation: The company continues to actively manage tariff-related headwinds, using pricing actions and supply chain adjustments to protect margins.
Positive Market Outlook: Federal infrastructure funding and early orders related to rare earth mining provide supportive demand trends going forward.
