UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from _____ to _____ Commission File Number: 001-11595 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Astec Industries, Inc. FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Tennessee 62-0873631 (State or o ...

Astec Industries (ASTE) Q2 2025 Earnings Call August 06, 2025 08:30 AM ET Speaker0Hello, and welcome to the Astec Industries Second Quarter twenty twenty five Earnings Call. As a reminder, this conference call is being recorded. It is my pleasure to introduce your host, Steve Anderson, Senior Vice President of Administration and Investor Relations. Mr. Anderson, you may begin.Speaker1Thank you, and good morning, everyone. Joining meSpeaker2on today's call are Yaku Vandermeva, Chief Executive Officer and Bri ...

NON-GAAP MEASURES Second Quarter 2025 Earnings August 6, 2025 B U I L T T O C O N N E C T Safe Harbor Certain statements contained in this presentation contain 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 , ...

NEWS RELEASE ASTEC REPORTS SECOND QUARTER 2025 RESULTS Second Quarter 2025 Overview (all comparisons are made to the corresponding prior year second quarter unless otherwise specified): CHATTANOOGA, Tenn. (August 6, 2025) – 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 ...

Core Viewpoint - Astec Industries, Inc. is set to release its second quarter 2025 financial results on August 6, 2025, followed by a conference call to discuss these results [1][2]. Group 1: Conference Call Details - The conference call will be hosted by Jaco van der Merwe (President and CEO), Brian Harris (CFO), and Steve Anderson (Senior VP of Administration and Investor Relations) [2]. - Participants can access the call by dialing (888) 440-4118 for domestic calls or +1 (646) 960-0833 for international calls, at least 10 minutes prior to the scheduled time [2]. - A live webcast will also be available, and an archived version will be accessible for ninety days post-call [2][3]. Group 2: Company Overview - Astec Industries, Inc. specializes in manufacturing equipment for asphalt road building, aggregate processing, and concrete production [4]. - The company's operations are divided into two main segments: Infrastructure Solutions and Materials Solutions [4].

Core Insights - Astec Industries, Inc. has completed the acquisition of TerraSource Holding, LLC, which is expected to enhance gross profit margins, adjusted EBITDA margins, and earnings per share due to the significant contribution of aftermarket parts and services to TerraSource's revenue [1][6] - The acquisition aligns with Astec's disciplined growth strategy and is anticipated to be accretive from day one, improving the quality of earnings [2][6] - The deal is valued at $245 million in cash, with a net purchase price of $230 million after accounting for anticipated tax benefits [6] Company Overview - Astec is a manufacturer specializing in equipment for asphalt road building, aggregate processing, and concrete production, divided into two main segments: Infrastructure Solutions and Materials Solutions [3] - TerraSource provides industry-leading equipment for various applications, including crushers and waste management solutions, with a legacy of over 100 years [4] Financial Expectations - The acquisition is expected to generate annual run-rate synergies of approximately $10 million by the end of year two [6] - Astec anticipates a proforma net leverage ratio of around 2.0x net debt to adjusted EBITDA for 2025 [6]

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PART I - FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited Q1 2025 financial statements reflect increased assets, significant net income growth, and positive operating cash flow [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $1,056.0 million as of March 31, 2025, primarily due to higher inventories and receivables Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $737.2 | $722.8 | | Inventories | $434.9 | $422.7 | | **Total Assets** | **$1,056.0** | **$1,043.6** | | **Total Current Liabilities** | $277.0 | $271.7 | | Long-term debt | $96.0 | $105.0 | | **Total Liabilities** | **$402.9** | **$406.0** | | **Total Equity** | **$653.1** | **$637.6** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 saw a 6.5% increase in net sales to $329.4 million, with gross profit up 20.2% and diluted EPS rising to $0.62 Q1 2025 vs. Q1 2024 Performance (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net sales | $329.4 | $309.2 | +6.5% | | Gross profit | $92.4 | $76.9 | +20.2% | | Income from operations | $20.5 | $6.3 | +225.4% | | Net income attributable to controlling interest | $14.3 | $3.4 | +320.6% | | Diluted EPS | $0.62 | $0.15 | +313.3% | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income attributable to controlling interest was $17.3 million for Q1 2025, a significant turnaround from a prior-year loss Comprehensive Income (Loss) (in millions) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $14.3 | $3.3 | | Foreign currency translation adjustments | $3.1 | $(4.4) | | **Comprehensive income (loss) attributable to controlling interest** | **$17.3** | **$(1.0)** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $20.5 million in Q1 2025, a substantial improvement from a prior-year use of cash Cash Flow Summary (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $20.5 | $(47.0) | | Net cash used in investing activities | $(4.2) | $(5.9) | | Net cash (used in) provided by financing activities | $(15.0) | $48.4 | | **Increase (decrease) in cash** | **$1.8** | **$(5.1)** | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail segment operations, inventory increases, ERP costs, and the planned **$245.0 million** TerraSource acquisition - The company operates in two reportable segments: **Infrastructure Solutions** and **Materials Solutions**, primarily serving the road building, construction, and mining industries[26](index=26&type=chunk)[27](index=27&type=chunk) - Total inventories increased to **$434.9 million** as of March 31, 2025, up from **$422.7 million** at the end of 2024, with work-in-process showing the largest increase[39](index=39&type=chunk) - The company's strategic ERP implementation has resulted in net capitalized costs of **$31.0 million** as of March 31, 2025[68](index=68&type=chunk)[69](index=69&type=chunk) - On April 28, 2025, the company agreed to acquire **TerraSource Holdings, LLC** for **$245.0 million** in cash, with the transaction expected to close in Q3 2025[74](index=74&type=chunk) - To fund the **TerraSource** acquisition and refinance existing debt, the company has secured a commitment for a new **$500.0 million** senior secured credit facility[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2025 net sales increased 6.5% to **$329.4 million**, driven by pricing and equipment sales, while backlog decreased 28.1% Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net sales | $329.4M | $309.2M | +6.5% | | Gross profit | $92.4M | $76.9M | +20.2% | | Income from operations | $20.5M | $6.3M | +225.4% | | Diluted EPS | $0.62 | $0.15 | +313.3% | | Backlog (as of Mar 31) | $402.6M | $559.8M | -28.1% | - The ongoing multi-year ERP implementation is expected to cost between **$180 to $200 million**, with approximately **$140 million** incurred through Q1 2025[80](index=80&type=chunk) - The increase in gross profit was primarily driven by net favorable pricing, favorable volume/mix (**$16.0 million**), and manufacturing efficiencies (**$3.7 million**)[90](index=90&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Net sales for Q1 2025 increased 6.5% to **$329.4 million**, with gross profit margin expanding to **28.1%** due to favorable pricing - Domestic sales increased **12.6%** to **$273.8 million**, while international sales decreased **15.8%** to **$55.6 million**[88](index=88&type=chunk)[89](index=89&type=chunk) - The decrease in backlog is attributed to shorter production lead times allowing customers to order closer to delivery dates and variability in dealer ordering patterns due to inflation and interest rates[96](index=96&type=chunk) Backlog by Segment (in millions) | Segment | March 31, 2025 | March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Infrastructure Solutions | $276.4 | $372.7 | (25.8)% | | Materials Solutions | $126.2 | $187.1 | (32.5)% | | **Total Backlog** | **$402.6** | **$559.8** | **(28.1)%** | [Segment Analysis](index=23&type=section&id=Segment%20Analysis) **Infrastructure Solutions** sales rose **16.7%** with strong EBITDA growth, while **Materials Solutions** sales declined **12.7%** Net Sales by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Infrastructure Solutions | $236.0 | $202.2 | +16.7% | | Materials Solutions | $93.4 | $107.0 | (12.7)% | Segment Operating Adjusted EBITDA (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Infrastructure Solutions | $42.9 | $25.6 | +67.6% | | Materials Solutions | $5.2 | $5.3 | (1.9)% | - **Infrastructure Solutions'** growth was driven by net favorable pricing and volume, leading to a **$19.0 million** increase in gross profit and **$4.9 million** in manufacturing efficiencies[106](index=106&type=chunk) - **Materials Solutions'** performance was impacted by unfavorable volume and mix, resulting in a **$3.0 million** lower gross profit[107](index=107&type=chunk)[108](index=108&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity was **$238.9 million** as of March 31, 2025, with 2025 capital expenditures projected at **$35.0 million** to **$45.0 million** - Total liquidity as of March 31, 2025 was **$238.9 million**, consisting of **$90.1 million** in cash and **$148.8 million** in borrowing availability[110](index=110&type=chunk) - The company was in compliance with all financial covenants for its Credit Facilities as of March 31, 2025[112](index=112&type=chunk) - Estimated capital expenditures for the full year 2025 are projected to be between **$35.0 million** and **$45.0 million**[116](index=116&type=chunk) [Cash Flows](index=26&type=section&id=Cash%20Flows) Operating cash flow significantly improved to **$20.5 million** in Q1 2025, driven by higher net income and better working capital management - The improvement in operating cash flow was driven by a **$52.5 million** favorable change in operating assets and liabilities and a **$15.0 million** increase in cash inflows from net income adjusted for non-cash items[118](index=118&type=chunk) - Financing activities used **$15.0 million** in Q1 2025, a reversal from providing **$48.4 million** in Q1 2024, mainly due to net repayments on credit facilities in 2025 versus net borrowings in 2024[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk exposures have not materially changed since the 2024 Annual Report on Form 10-K filing - Market risk exposures have not materially changed since the Annual Report on Form 10-K for the year ended December 31, 2024 was filed[125](index=125&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were effective as of March 31, 2025, with ongoing ERP implementation expected to change internal controls - The CEO and CFO concluded that as of March 31, 2025, the Company's disclosure controls and procedures were effective[126](index=126&type=chunk) - The company is undergoing a significant multi-year global ERP implementation, which is expected to result in changes to internal control over financial reporting[127](index=127&type=chunk)[128](index=128&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) Management believes current legal proceedings will not materially affect the company's financial position or results - Management believes the ultimate outcome of current legal proceedings will not materially affect the company's business, financial position, cash flows, or results of operations[131](index=131&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors, except for new risks associated with the pending **TerraSource** acquisition and related indebtedness - A new risk factor has been added concerning the acquisition of **TerraSource Holdings, LLC**[134](index=134&type=chunk) - Risks related to the **TerraSource acquisition** include failure to complete the deal, integration challenges, failure to realize anticipated benefits, and the impact of incurring significant new debt[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - None[137](index=137&type=chunk) [Defaults Upon Senior Securities](index=28&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - None[138](index=138&type=chunk) [Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures were reported for the period - None[140](index=140&type=chunk) [Other Information](index=29&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated **Rule 10b5-1** or non-**Rule 10b5-1** trading arrangements during the quarter - No officers or directors adopted or terminated a **Rule 10b5-1** or non-**Rule 10b5-1** trading arrangement during the quarter[141](index=141&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) The report includes **CEO** and **CFO certifications** pursuant to Sarbanes-Oxley Act and **XBRL documents** - Exhibits filed include **CEO/CFO certifications** (31.1, 31.2, 32.1, 32.2) and **XBRL documents** (101 series)[142](index=142&type=chunk)

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 was $35.2 million, an increase of $16.3 million or 86.2% compared to Q1 2024 [6][19] - Adjusted EBITDA margin improved to 10.7%, up 460 basis points year-over-year [7][19] - Adjusted earnings per share were reported at $0.88, significantly higher than $0.34 in Q1 2024 [7][20] - Free cash flow for the quarter was $16.6 million, representing 116% of net income [8][23] Business Line Data and Key Metrics Changes - In the Infrastructure Solutions segment, net sales were driven by strong capital equipment and aftermarket parts sales, despite a slight decline in backlog by 4.1% [7][21] - The Materials Solutions segment faced challenges due to high interest rates and dealer inventory destocking, but aftermarket parts sales remained stable [7][22] - Backlog in the Materials Solutions segment grew by $12.1 million or 10.6% due to increased order activity [17] Market Data and Key Metrics Changes - The overall backlog declined slightly but remained healthy, supported by growth in implied orders [16] - Infrastructure Solutions segment backlog was influenced by strong invoicing for asphalt and concrete plants [16] - Implied orders rose on a quarter-over-quarter basis, with a book-to-bill ratio of 113% for Q1 [18] Company Strategy and Development Direction - The company announced a definitive agreement to acquire TerraSource, a market leader in materials processing equipment, which is expected to enhance the Material Solutions segment [5][25] - The acquisition is anticipated to provide significant synergies and expand the product portfolio, with a focus on aftermarket parts [26][30] - The company is taking proactive measures to mitigate risks associated with tariffs, including price adjustments and supply chain management [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding customer sentiment and infrastructure investment needs, highlighting the importance of ongoing infrastructure improvements [9][12] - The company is maintaining its expectations for adjusted EBITDA for the full year 2025 in the range of $105 million to $125 million, excluding tariff impacts [8][20] - Management noted that while there is uncertainty regarding tariffs, proactive measures have been implemented to manage costs and protect margins [40][41] Other Important Information - The company highlighted the need for continued infrastructure investment, as indicated by the American Society of Civil Engineers' report card [9][10] - The acquisition of TerraSource is expected to close in early Q3 2025, subject to regulatory considerations [33] Q&A Session Summary Question: Why not raise guidance despite strong performance? - Management indicated that while there is upside potential, uncertainty around tariffs and customer behavior influenced the decision not to raise guidance at this time [39][40] Question: How is the company positioned regarding current tariffs? - Management stated that they have been proactive in managing the impact of tariffs and have implemented price increases to mitigate costs [42][43] Question: How has TerraSource performed compared to legacy Material Solutions? - Management noted that TerraSource has a smaller exposure to mobile markets and a significant portion of its business comes from aftermarket parts, which contributes to higher gross margins [46][48] Question: What is the expected impact of tariffs on costs? - Management estimated a potential impact of 4% to 10% on costs if no actions are taken, but emphasized their proactive measures to manage this risk [54][58] Question: Will the acquisition of TerraSource be accretive to EBITDA? - Management confirmed that the acquisition is expected to be accretive from day one, with significant synergy opportunities anticipated [33][34]

First Quarter 2025 Earnings April 29, 2025 B U I L T T O C O N N E C T Safe Harbor Certain statements contained in this presentation contain 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 and the United State ...