CHATTANOOGA, Tenn., Feb. 04, 2026 (GLOBE NEWSWIRE) -- You are invited by Astec Industries, Inc. (NASDAQ: ASTE) to participate in a conference call to review the company’s fourth quarter and full year 2025 financial results. Astec Industries, Inc. will be releasing the company’s fourth quarter and full year results to the wire service on Wednesday, February 25, 2026, at approximately 7:00 a.m. Eastern Time. The live call will begin on Wednesday, February 25, 2026, at 8:30 a.m. Eastern Time. Jaco van der Merw ...

Industry Overview - The Zacks Manufacturing - Construction and Mining industry is currently facing challenges due to a prolonged contraction in the manufacturing sector and subdued customer spending attributed to tariffs [1][4]. - The industry includes companies that manufacture and sell construction, mining, and utility equipment, supporting various sectors such as oil and gas, power generation, and infrastructure projects [3]. Current Trends - Despite ongoing weaknesses, increased infrastructure investment in the U.S. and demand from the mining sector, driven by the energy transition trend, are expected to support the industry [2][5]. - The manufacturing index has been in contraction for 10 months, with a reading of 47.9% in December, indicating a significant decline in manufacturing activity [4]. - The energy transition trend is anticipated to boost demand for mining equipment as the shift from fossil fuels to zero emissions requires more commodities [5]. Financial Performance - The Manufacturing - Construction and Mining industry has outperformed the broader market, growing 63.3% over the past year compared to the sector's 8.3% return and the S&P 500's 19.2% increase [10]. - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 17.37X, which is lower than the S&P 500's 18.87X and the Industrial Products sector's 25.7X [13]. Company Highlights - **Caterpillar Inc. (CAT)**: The company reported year-over-year revenue growth in Q3 2025, with a record-high backlog of $39.9 billion. It is expected to benefit from increased infrastructure spending and the global energy transition [17][18]. CAT shares have gained 23.8% in the past three months [17]. - **Terex Corporation (TEX)**: Recently sold its Terex Tower and Rough Terrain Cranes businesses to reduce cyclicality and drive core growth. The company is merging with REV Group, expected to create a leading specialty equipment manufacturer with $7.8 billion in combined net sales [21][23]. TEX shares have gained 16% in the past three months [23]. - **Astec Industries (ASTE)**: Completed the acquisition of CWMF, enhancing its gross margin and earnings per share. The company is focusing on cost reductions and pricing actions to offset tariff impacts [25][26]. ASTE shares have gained 7.6% in the past three months [25].

Core Viewpoint - Astec Industries, Inc. has completed the acquisition of CWMF, LLC, which is expected to enhance gross profit margins, adjusted EBITDA margins, and earnings per share [1][2]. Group 1: Acquisition Details - The acquisition price for CWMF was $67.5 million in cash, on a cash-free, debt-free basis [7]. - CWMF has annual revenue of approximately $50 million and is anticipated to be accretive to Astec's earnings [2][7]. - Synergies from the acquisition are expected to be realized by the end of the first year [7]. Group 2: Strategic Fit and Growth Potential - CWMF has strong customer relationships in the Midwest, South-Central, and Great Lakes regions of the United States, making it a good cultural fit for Astec [2]. - The addition of CWMF is aligned with Astec's disciplined growth strategy and is expected to increase capacity in the Infrastructure Solutions segment [2]. - The acquisition is projected to generate enhanced shareholder value and provide further growth opportunities [2]. Group 3: Company Overview - Astec is a manufacturer of specialized equipment for asphalt road building, aggregate processing, and concrete production, divided into two primary business segments: Infrastructure Solutions and Materials Solutions [3]. - CWMF specializes in portable and stationary asphalt plant equipment, known for its durability and practical design [4].

Core Insights - Astec Industries (ASTE) has shown mixed yet positive signals, particularly following a significant acquisition that has generated optimism about its business prospects [1] Group 1: Company Developments - The recent acquisition by Astec Industries is viewed positively, indicating potential growth and strategic expansion for the company [1] - There are noted inconsistencies in the company's performance metrics, which may require further analysis to fully understand the implications [1] Group 2: Investment Opportunities - The service "Value in Corporate Events" focuses on identifying actionable investment opportunities through major corporate events such as earnings reports, M&A, and IPOs [1] - The investment group provides coverage of approximately 10 major events monthly, aiming to highlight the best opportunities for investors [1]

Core Viewpoint - Astec Industries, Inc. has signed a definitive agreement to acquire CWMF Corporation, a manufacturer of asphalt plant equipment with annual revenues of approximately $50 million, primarily serving the Midwest, South-Central, and Great Lakes regions of the United States [1][2]. Group 1: Acquisition Details - The acquisition of CWMF is aligned with Astec's disciplined growth strategy and is expected to be efficiently integrated due to the strong cultural fit between the two organizations [2]. - The transaction is anticipated to close in the first quarter of 2026 and is projected to be accretive from day one, with the consolidated net leverage ratio expected to remain within the previously disclosed range of 1.5 to 2.5 times net debt to adjusted EBITDA [2]. Group 2: Company Overview - Astec is a manufacturer specializing in equipment for asphalt road building, aggregate processing, and concrete production, with operations divided into two primary segments: Infrastructure Solutions and Materials Solutions [3]. - Infrastructure Solutions includes the design, engineering, manufacturing, and marketing of asphalt and concrete plants, along with related components and heavy equipment [3]. - Materials Solutions focuses on heavy and soft rock processing equipment, servicing, and supplying parts for various markets including aggregate, civil construction, energy, mining, and recycling [3].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum characteristics, helping investors identify securities likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using metrics such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [4] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings estimate changes, indicating optimal times to invest in high-momentum stocks [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores to highlight stocks with the best overall characteristics, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks, even with good Style Scores, may still face downward price pressure due to negative earnings outlooks [10] Company Spotlight: Astec Industries - Astec Industries, based in Chattanooga, TN, is a leading manufacturer of road building equipment, covering all phases from quarrying to asphalt application [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [11] - Astec Industries has a Value Style Score of B, with a forward P/E ratio of 14.76, and has seen an increase in earnings estimates for fiscal 2025 [12] - The Zacks Consensus Estimate for earnings has risen by $0.04 to $2.98 per share, with an average earnings surprise of +4.4% [12]

Group 1 - Astec Industries, Inc. will participate in the Stephens Investment Conference on November 18, 2025, in Nashville, Tennessee, with key executives attending [1] - The company specializes in manufacturing equipment for asphalt road building, aggregate processing, and concrete production [2] - Astec's operations are divided into two main segments: Infrastructure Solutions and Materials Solutions, focusing on various heavy equipment and aftermarket parts [2] Group 2 - Infrastructure Solutions designs and manufactures asphalt and concrete plants, along with industrial automation controls and telematics platforms [2] - Materials Solutions provides heavy and soft rock processing equipment and services for multiple markets, including energy, mining, and recycling [2]

Core Insights - Astec Industries, Inc. will participate in the Baird 2025 Global Industrial Conference on November 13, 2025, in Chicago, Illinois [1] - Key executives attending include Jaco van der Merwe (President and CEO), Brian Harris (CFO), and Stephen C. Anderson (Senior VP of Administration and Investor Relations) [1] Company Overview - Astec is a manufacturer specializing in equipment for asphalt road building, aggregate processing, and concrete production [2] - The company operates through two main business segments: Infrastructure Solutions and Materials Solutions [2] - Infrastructure Solutions focuses on designing, manufacturing, and marketing asphalt and concrete plants, along with related components and heavy equipment [2] - Materials Solutions designs and manufactures equipment for heavy and soft rock processing, servicing various markets including energy, mining, and recycling [2]

Financial Performance - Net sales for Q3 2025 were $350.1 million, an increase of 20.1% compared to $291.4 million in Q3 2024[109] - Gross profit for Q3 2025 was $84.2 million, representing 24.1% of net sales, up from $66.8 million or 22.9% in Q3 2024, a 26.0% increase[122] - Income from operations for Q3 2025 was $1.1 million, an increase of 115.3% compared to the previous year[109] - The net loss attributable to Astec for Q3 2025 was $4.2 million, an increase of 32.3% from the prior year[109] - Selling, general and administrative expenses for Q3 2025 were $83.3 million, or 23.8% of net sales, an increase of 27.0% from $65.6 million in Q3 2024[124] - Interest expense increased to $7.3 million for Q3 2025 from $2.6 million in Q3 2024, reflecting higher average borrowings and interest rates[127] - Income tax benefit for Q3 2025 was $0.9 million, down from $2.3 million in Q3 2024, with an effective tax rate of 17.6% compared to 27.1%[128] Sales Performance - Domestic sales for Q3 2025 were $280.4 million, accounting for 80.1% of consolidated net sales, up 32.8% from $211.2 million in Q3 2024[118] - International sales for Q3 2025 were $69.7 million, a decrease of 13.1% from $80.2 million in Q3 2024[120] - Infrastructure Solutions segment sales increased by 17.1% to $193.2 million in Q3 2025, driven by higher equipment and parts sales[133] - Materials Solutions segment sales rose 24.1% to $156.9 million in Q3 2025, primarily due to increased parts and component sales[136] Backlog and Future Outlook - Backlog as of Q3 2025 was $449.5 million, a decrease of 5.5%[109] - Total backlog decreased to $449.5 million as of September 30, 2025, down 5.5% from $475.8 million in 2024[130] - The acquisition of TerraSource on July 1, 2025, is expected to provide significant growth and value creation opportunities[106] Segment Performance - Segment Operating Adjusted EBITDA for Infrastructure Solutions was $23.9 million in Q3 2025, up 53.2% from $15.6 million in Q3 2024[147] - Segment Operating Adjusted EBITDA for Materials Solutions increased to $15.4 million in Q3 2025, a rise of 6.2% from $14.5 million in Q3 2024[149] - Corporate and Other operations reported net expenses of $12.2 million in Q3 2025, a decrease of 3.9% from $12.7 million in Q3 2024[153] Liquidity and Capital Expenditures - Total liquidity as of September 30, 2025, was $312.1 million, including $67.3 million in cash and cash equivalents[155] - Future cash requirements will focus on working capital, debt service, and potential strategic acquisitions, with sufficient liquidity expected for the next 12 months[157] - As of September 30, 2025, the company had outstanding principal indebtedness on the term loan facility of $345.6 million and no outstanding borrowings under the revolving credit facility[158] - The company estimates capital expenditures will be between $25.0 million and $35.0 million for the year ending December 31, 2025[161] Cash Flow - Net cash provided by operating activities was $25.3 million for the nine months ended September 30, 2025, compared to a net use of $13.6 million for the same period in 2024[163] - Net cash used in investing activities was $260.4 million during the nine months ended September 30, 2025, primarily due to the TerraSource acquisition[164] - Net cash provided by financing activities was $212.4 million during the nine months ended September 30, 2025, compared to $19.5 million for the same period in 2024[165] Current Assets and Liabilities - Total current assets increased to $821.2 million as of September 30, 2025, from $722.8 million as of December 31, 2024, an increase of $98.4 million, or 13.6%[167] - Total current liabilities increased to $318.3 million as of September 30, 2025, from $271.7 million as of December 31, 2024, an increase of $46.6 million, or 17.2%[168] - Open purchase obligations totaled $118.7 million as of September 30, 2025, with $92.7 million expected to be fulfilled within the remainder of 2025[160] Dividends and Credit Facilities - The company paid quarterly dividends of $0.13 per common share to shareholders in the third quarter of both 2025 and 2024[166] - Outstanding letters of credit totaled $5.2 million, decreasing borrowing availability to $244.8 million under the revolving credit facility as of September 30, 2025[158]

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