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Group 1 - Astec Industries, Inc. will participate in the Sidoti Small Cap Conference on September 17, 2025, with key executives attending virtual 1x1 meetings [1] - The conference is organized by Sidoti Events, LLC, which focuses on small and microcap companies, leveraging Sidoti & Company’s 25 years of experience in independent securities research [3] - Astec operates in two primary business segments: Infrastructure Solutions, which includes road building and asphalt plants, and Materials Solutions, which focuses on aggregate processing equipment [4] Group 2 - Sidoti Events hosts eight investor conferences annually, providing corporate access and facilitating interactions between small and microcap issuers and investors [3] - The company’s coverage universe includes approximately 160 equities, with 50% participating in the Company Sponsored Research program [3] - Astec Industries specializes in manufacturing equipment for asphalt road building, aggregate processing, and concrete production [4]

PART I - FINANCIAL INFORMATION This section presents Astec Industries, Inc.'s unaudited consolidated financial information, including statements, notes, and management's analysis [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents Astec Industries, Inc.'s unaudited consolidated financial statements for Q2 2025, including balance sheets, operations, cash flows, equity, and detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific dates | ASSETS (in millions) | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Cash, cash equivalents and restricted cash | $88.7 | $90.8 | | Inventories | $448.8 | $422.7 | | Total current assets | $746.0 | $722.8 | | Total assets | $1,065.4 | $1,043.6 | | LIABILITIES AND EQUITY (in millions) | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Short-term debt | $11.8 | $13.3 | | Accounts payable | $89.1 | $79.2 | | Total current liabilities | $274.8 | $271.7 | | Long-term debt | $85.0 | $105.0 | | Total liabilities | $390.5 | $406.0 | | Total equity | $674.9 | $637.6 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance over specific periods, including net sales, gross profit, and net income | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $330.3 | $345.5 | $659.7 | $654.7 | | Gross profit | $88.3 | $81.3 | $180.7 | $158.2 | | Income (loss) from operations | $21.4 | $(10.7) | $41.9 | $(4.4) | | Net income (loss) attributable to controlling interest | $16.7 | $(14.0) | $31.0 | $(10.6) | | Earnings (loss) per common share - Basic | $0.73 | $(0.61) | $1.36 | $(0.47) | | Earnings (loss) per common share - Diluted | $0.72 | $(0.61) | $1.35 | $(0.47) | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) This section details the company's comprehensive income or loss, including net income and other comprehensive income items | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | $16.8 | $(14.0) | $31.1 | $(10.7) | | Foreign currency translation adjustments | $6.4 | $(1.4) | $9.5 | $(5.8) | | Comprehensive income (loss) attributable to controlling interest | $23.1 | $(15.2) | $40.4 | $(16.2) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the cash inflows and outflows from operating, investing, and financing activities for the period | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $33.4 | $(36.1) | | Net cash used in investing activities | $(7.7) | $(12.6) | | Net cash (used in) provided by financing activities | $(29.2) | $49.5 | | Decrease in cash, cash equivalents and restricted cash | $(2.1) | $— | | Cash, cash equivalents and restricted cash, end of period | $88.7 | $63.2 | [Consolidated Statements of Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Equity) This section details changes in the company's equity, including common stock, retained earnings, and accumulated other comprehensive loss | (in millions) | Balance, December 31, 2024 | Balance, June 30, 2025 | | :----------------------------------- | :------------------------- | :--------------------- | | Common Stock (shares) | 22,803,976 | 22,874,713 | | Common Stock (amount) | $4.6 | $4.6 | | Additional Paid-in Capital | $142.9 | $145.5 | | Accumulated Other Comprehensive Loss | $(51.1) | $(41.7) | | Retained Earnings | $541.7 | $566.7 | | Total Equity | $637.6 | $674.9 | - Total equity increased by **$37.3 million** from December 31, 2024, to June 30, 2025, primarily due to net income and other comprehensive income, partially offset by dividend payments[22](index=22&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited consolidated financial statements [Note 1. Basis of Presentation and Significant Accounting Policies](index=10&type=section&id=Note%201.%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) This note outlines the company's business, financial statement preparation, and key accounting policies - Astec Industries, Inc. designs, engineers, manufactures, markets, and services equipment and components for asphalt and concrete road building, mining, quarrying, construction, demolition, land clearing, recycling, and port/rail yard operations, operating in Infrastructure Solutions and Materials Solutions segments[25](index=25&type=chunk)[26](index=26&type=chunk) - Financial statements adhere to U.S. GAAP, with management making estimates for inventory, warranty, goodwill, and income taxes[28](index=28&type=chunk)[30](index=30&type=chunk) - The company adopted ASU 2023-07 and is evaluating ASU 2023-09 and ASU 2024-03, with no expected material impact on financial results[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) [Note 2. Inventories](index=11&type=section&id=Note%202.%20Inventories) This note details the composition and changes in the company's inventory balances | (in millions) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Raw materials and parts | $276.7 | $275.4 | | Work-in-process | $84.0 | $60.9 | | Finished goods | $81.1 | $83.5 | | Used equipment | $7.0 | $2.9 | | Total | $448.8 | $422.7 | - Total inventories increased by **$26.1 million** from December 31, 2024, to June 30, 2025, primarily due to increases in work-in-process and used equipment[38](index=38&type=chunk) [Note 3. Fair Value Measurements](index=11&type=section&id=Note%203.%20Fair%20Value%20Measurements) This note describes the fair value measurement of financial instruments, categorized by hierarchy levels - The company measures marketable debt and equity securities at fair value, categorizing all financial assets and liabilities as Level 1 or Level 2[39](index=39&type=chunk)[41](index=41&type=chunk) | Financial assets (in millions) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Total financial assets | $23.3 | $21.9 | | Total financial liabilities | $6.5 | $6.1 | [Note 4. Goodwill](index=13&type=section&id=Note%204.%20Goodwill) This note explains the goodwill impairment charge recognized during the period - A **$20.2 million** pre-tax non-cash goodwill impairment charge was recognized in Q2 2024 for the Materials Solutions reporting unit due to macroeconomic conditions and lower operating results[44](index=44&type=chunk)[46](index=46&type=chunk) [Note 5. Product Warranty Reserves](index=13&type=section&id=Note%205.%20Product%20Warranty%20Reserves) This note details the changes in the company's product warranty reserve balances | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Reserve balance, beginning of the period | $17.8 | $16.2 | $16.1 | $16.5 | | Warranty liabilities accrued | $6.1 | $4.5 | $12.3 | $8.7 | | Warranty liabilities settled | $(5.1) | $(5.2) | $(9.7) | $(9.7) | | Reserve balance, end of the period | $18.9 | $15.4 | $18.9 | $15.4 | - The product warranty reserve increased from **$16.1 million** to **$18.9 million** for the six months ended June 30, 2025, as accrued liabilities exceeded settled liabilities[49](index=49&type=chunk) [Note 6. Accrued Loss Reserves](index=14&type=section&id=Note%206.%20Accrued%20Loss%20Reserves) This note provides information on the company's accrued loss reserves for workers' compensation and general liability claims - Total accrued loss reserves for workers' compensation and general liability claims were **$6.4 million** as of June 30, 2025, a slight increase from **$6.3 million** at December 31, 2024[50](index=50&type=chunk) [Note 7. Income Taxes](index=14&type=section&id=Note%207.%20Income%20Taxes) This note explains the company's income tax expense, effective tax rate, and uncertain tax positions | Income Tax (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax expense | $5.8 | $0.3 | $11.2 | $1.7 | | Effective tax rate | 25.7% | (2.2)% | 26.5% | (18.9)% | - Income tax expense and the effective tax rate increased for both periods ended June 30, 2025, due to higher pretax book income and jurisdictional income/loss weighting changes[51](index=51&type=chunk)[52](index=52&type=chunk) - The liability for uncertain tax positions increased to **$17.3 million** as of June 30, 2025, due to incremental reserves for a research and development credit[53](index=53&type=chunk) - The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, but had no financial statement impact as of June 30, 2025[55](index=55&type=chunk) [Note 8. Commitments and Contingencies](index=15&type=section&id=Note%208.%20Commitments%20and%20Contingencies) This note discloses the company's contingent liabilities, letters of credit, and property purchase commitments - Astec is contingently liable for **$1.3 million** in customer debt guarantees, with a recorded liability of **$0.2 million** as of June 30, 2025[56](index=56&type=chunk) - Outstanding letters of credit totaled **$5.2 million** under the **$250.0 million** revolving credit facility, with **$24.8 million** unused, plus **$5.3 million** in foreign performance guarantees[58](index=58&type=chunk) - The company has a commitment to purchase a property for **$2.8 million** in Q1 2026[59](index=59&type=chunk) - Management believes current claims and legal proceedings will not materially adversely affect the company's financial position, cash flows, or results of operations[61](index=61&type=chunk) [Note 9. Revenue Recognition](index=16&type=section&id=Note%209.%20Revenue%20Recognition) This note provides a breakdown of net sales by geographic area and industry segment | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total net sales | $330.3 | $345.5 | $659.7 | $654.7 | | Domestic revenue | $262.0 | $272.1 | $535.8 | $515.3 | | International revenue | $68.3 | $73.4 | $123.9 | $139.4 | | Infrastructure Solutions (3 months) | $204.6 | $221.4 | | | | Materials Solutions (3 months) | $125.7 | $124.1 | | | | Infrastructure Solutions (6 months) | | | $440.6 | $423.6 | | Materials Solutions (6 months) | | | $219.1 | $231.1 | - For Q2 2025, total net sales decreased by **4.4%** YoY due to lower domestic equipment sales, while for the six months, sales increased by **0.8%** YoY due to favorable pricing and increased used equipment, service, and freight revenue[65](index=65&type=chunk)[66](index=66&type=chunk) [Note 10. Operations by Industry Segment and Geographic Area](index=17&type=section&id=Note%2010.%20Operations%20by%20Industry%20Segment%20and%20Geographic%20Area) This note details financial performance by the Infrastructure Solutions and Materials Solutions segments and geographic regions - Astec operates in Infrastructure Solutions and Materials Solutions segments, with the CEO using Segment Operating Adjusted EBITDA to evaluate performance and allocate resources[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk) | Segment Operating Adjusted EBITDA (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Infrastructure Solutions | $32.2 | $27.2 | $75.1 | $52.8 | | Materials Solutions | $14.2 | $10.2 | $19.4 | $15.5 | | Total Reportable Segments | $46.4 | $37.4 | $94.5 | $68.3 | - Infrastructure Solutions segment revenues decreased by **7.6%** for the three months ended June 30, 2025, but increased by **4.0%** for the six months ended June 30, 2025, compared to the prior year periods[73](index=73&type=chunk)[74](index=74&type=chunk) - Materials Solutions segment revenues increased by **1.3%** for the three months ended June 30, 2025, but decreased by **5.2%** for the six months ended June 30, 2025, compared to the prior year periods[73](index=73&type=chunk)[74](index=74&type=chunk) | Net Sales by Geographic Region (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $262.0 | $272.1 | $535.8 | $515.3 | | Total foreign | $68.3 | $73.4 | $123.9 | $139.4 | | Total net sales | $330.3 | $345.5 | $659.7 | $654.7 | [Note 11. Strategic Transformation, Restructuring and Other Asset Gains, net](index=21&type=section&id=Note%2011.%20Strategic%20Transformation%2C%20Restructuring%20and%20Other%20Asset%20Gains%2C%20net) This note outlines costs related to the ERP system implementation and restructuring charges - Astec's multi-year ERP system implementation has incurred approximately **$143 million** through Q2 2025, out of an estimated **$180 million to $200 million** total cost, expected to conclude in 2028 or 2029[97](index=97&type=chunk) | Strategic Transformation Costs (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total costs related to strategic transformation initiatives | $3.4 | $11.2 | $10.4 | $17.7 | | Amortization of capitalized implementation costs | $1.0 | $1.0 | $1.9 | $1.7 | | Restructuring and Other Asset Gains, net (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total restructuring related charges | $— | $0.9 | $— | $1.0 | | Total gain on sale of property and equipment, net | $(0.1) | $(0.2) | $(0.1) | $(1.1) | | Restructuring and other asset gains, net | $(0.1) | $0.7 | $(0.1) | $(0.1) | - Workforce reductions in Q2 2024 resulted in **$0.9 million** in charges, with no restructuring charges incurred in Q2 or the six months ended June 30, 2025[80](index=80&type=chunk)[79](index=79&type=chunk) [Note 12. Earnings (Loss) Per Common Share](index=23&type=section&id=Note%2012.%20Earnings%20%28Loss%29%20Per%20Common%20Share) This note provides the basic and diluted earnings per common share calculations | Shares Outstanding | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Denominator for basic EPS | 22,877,075 | 22,796,729 | 22,855,304 | 22,779,414 | | Denominator for diluted EPS | 23,074,780 | 22,796,729 | 23,025,924 | 22,779,414 | - Diluted EPS for Q2 2025 was **$0.72**, a significant increase from **$(0.61)** in Q2 2024, and **$1.35** for the six months, up from **$(0.47)** in the prior year[11](index=11&type=chunk) [Note 13. Subsequent Events](index=23&type=section&id=Note%2013.%20Subsequent%20Events) This note discloses significant events occurring after the reporting period, including an acquisition and new credit agreement - On July 1, 2025, Astec acquired TerraSource Holdings, LLC for **$245.0 million** cash, expanding into adjacent material processing equipment markets[84](index=84&type=chunk) - A new **$600.0 million** credit agreement was entered into, with proceeds used to finance the TerraSource acquisition and repay existing debt[85](index=85&type=chunk) - The new credit agreement includes financial covenants and restrictions, with the acquisition and financing expected to materially impact future financial results[90](index=90&type=chunk)[92](index=92&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Astec's financial condition, operations, and cash flows for Q2 2025, covering performance, business conditions, and liquidity [Executive Summary](index=25&type=section&id=Executive%20Summary) This section provides a high-level overview of the company's strategic initiatives and key financial performance highlights - Astec's multi-year ERP implementation has incurred approximately **$143 million** through Q2 2025, out of an estimated **$180-$200 million** total cost, expected to conclude in 2028 or 2029[97](index=97&type=chunk) | Financial Highlights (Three Months Ended June 30) | 2025 | 2024 | Change (%) | | :------------------------------------------------ | :----------- | :----------- | :--------- | | Net sales | $330.3 million | $345.5 million | -4.4% | | Gross profit | $88.3 million | $81.3 million | +8.6% | | Income from operations | $21.4 million | $(10.7) million | +300.0% | | Net income attributable to Astec | $16.7 million | $(14.0) million | +219.3% | | Diluted earnings per share | $0.72 | $(0.61) | +218.0% | | Backlog | $380.9 million | $531.1 million | -28.3% | [Business Conditions and Trends](index=25&type=section&id=Business%20Conditions%20and%20Trends) This section discusses external factors influencing the company's operations, including commodity prices and geopolitical risks - Steel prices remained elevated in Q2 2025 due to tariffs, stagnant demand, domestic reshoring, and global construction focus, while oil prices are expected to fluctuate moderately[100](index=100&type=chunk)[101](index=101&type=chunk) - Geopolitical conflicts are monitored for potential downturns, oil price increases, or distribution disruptions, with the company attempting to offset production costs through price adjustments[102](index=102&type=chunk)[103](index=103&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including sales, profit, expenses, and segment results | Metric (in millions) | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :------------------- | :----------- | :----------- | :--------- | :--------- | | Net Sales | $330.3 | $345.5 | $(15.2) | -4.4% | | Gross Profit | $88.3 | $81.3 | $7.0 | +8.6% | | SG&A Expenses | $67.0 | $71.1 | $(4.1) | -5.8% | | Interest Expense | $2.1 | $3.1 | $(1.0) | -32.3% | | Income Tax Expense | $5.8 | $0.3 | $5.5 | +1833.3% | - Net sales decreased in Q2 2025 primarily due to unfavorable volume and mix, partially offset by favorable pricing. Gross profit increased due to favorable pricing, manufacturing input cost changes, and inventory adjustments, despite manufacturing inefficiencies and higher warranty costs[104](index=104&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - SG&A expenses decreased due to lower strategic transformation costs, professional services, technology support, bad debt, and depreciation, but were partially offset by higher personnel-related costs and TerraSource acquisition transaction costs[113](index=113&type=chunk) - Interest expense decreased due to lower average outstanding borrowings and interest rates. Income tax expense increased significantly due to higher pretax book income and changes in jurisdictional income/loss weighting[116](index=116&type=chunk)[117](index=117&type=chunk) | Backlog (in millions) | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------ | :------------ | :--------- | :--------- | | Total Backlog | $380.8 | $531.1 | $(150.3) | -28.3% | | Domestic Backlog | $308.1 | $417.2 | $(109.1) | -26.2% | | International Backlog | $72.7 | $113.9 | $(41.2) | -36.2% | - The decrease in backlog is attributed to shorter production lead times, improved parts fill rates allowing customers to order closer to delivery, and variability in customer ordering patterns due to macroeconomic factors[121](index=121&type=chunk) | Segment Net Sales (Q2, in millions) | 2025 | 2024 | Change ($) | Change (%) | | :---------------------------------- | :------ | :------ | :--------- | :--------- | | Infrastructure Solutions | $204.6 | $221.4 | $(16.8) | -7.6% | | Materials Solutions | $125.7 | $124.1 | $1.6 | +1.3% | | Segment Net Sales (6 Months, in millions) | 2025 | 2024 | Change ($) | Change (%) | | :---------------------------------------- | :------ | :------ | :--------- | :--------- | | Infrastructure Solutions | $440.6 | $423.6 | $17.0 | +4.0% |\ | Materials Solutions | $219.1 | $231.1 | $(12.0) | -5.2% | | Segment Operating Adjusted EBITDA (Q2, in millions) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------------------------- | :------ | :------ | :--------- | :--------- | | Infrastructure Solutions | $32.2 | $27.2 | $5.0 | +18.4% | | Materials Solutions | $14.2 | $10.2 | $4.0 | +39.2% | | Segment Operating Adjusted EBITDA (6 Months, in millions) | 2025 | 2024 | Change ($) | Change (%) | | :-------------------------------------------------------- | :------ | :------ | :--------- | :--------- | | Infrastructure Solutions | $75.1 | $52.8 | $22.3 | +42.2% | | Materials Solutions | $19.4 | $15.5 | $3.9 | +25.2% | - Corporate and Other operations experienced increased net expenses for both the three and six months ended June 30, 2025, primarily due to higher personnel-related costs and transaction costs related to the TerraSource acquisition[143](index=143&type=chunk)[144](index=144&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet financial obligations and fund operations, detailing cash, credit facilities, and future requirements - As of June 30, 2025, total liquidity was **$247.6 million**, comprising **$87.8 million** in cash and **$159.8 million** available under the 2022 Credit Facility, with **$29.2 million** cash held by foreign subsidiaries[145](index=145&type=chunk)[146](index=146&type=chunk) - On July 1, 2025, Astec entered a new **$600.0 million** 2025 Credit Agreement, borrowing **$350.0 million** for the TerraSource acquisition and debt repayment, leaving **$244.8 million** available[150](index=150&type=chunk) - Future cash requirements include working capital, debt service, capital expenditures, software implementation, and operating lease payments, with variable uses for transformation, acquisitions, dividends, and share repurchases[147](index=147&type=chunk) - Capital expenditures are estimated to be between **$25.0 million** and **$35.0 million** for the year ending December 31, 2025[153](index=153&type=chunk) | Cash Flows (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $33.4 | $(36.1) | | Net cash used in investing activities | $(7.7) | $(12.6) | | Net cash (used in) provided by financing activities | $(29.2) | $49.5 | - Operating activities provided **$33.4 million** in cash for the six months ended June 30, 2025, a significant improvement from a **$36.1 million** use in the prior year, driven by lower net cash usages for operating assets and liabilities and increased cash inflows from net income[156](index=156&type=chunk) - Investing activities used less cash (**$7.7 million** vs. **$12.6 million**) due to decreased capital expenditures, while financing activities used **$29.2 million** (vs. providing **$49.5 million**) due to net debt repayments in 2025 versus net borrowings in 2024[157](index=157&type=chunk)[158](index=158&type=chunk) - Total current assets increased by **$23.2 million** to **$746.0 million**, mainly due to higher inventories and prepaid income taxes, partially offset by decreases in receivables and cash. Total current liabilities increased by **$3.1 million** to **$274.8 million**, driven by higher accounts payable and accrued product warranty, offset by lower customer deposits and short-term debt[160](index=160&type=chunk)[161](index=161&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates market risk disclosures by reference from the 2024 10-K, noting no material changes to these exposures - The Company's market risk exposures have not materially changed since the Annual Report on Form 10-K for the year ended December 31, 2024, was filed[164](index=164&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the effectiveness of Astec's disclosure controls and internal control over financial reporting, anticipating future changes from ERP implementation - As of June 30, 2025, the Company's CEO and CFO concluded that disclosure controls and procedures were effective[165](index=165&type=chunk) - No material changes occurred in internal control over financial reporting during the three months ended June 30, 2025. However, a significant multi-year ERP implementation is underway, which is expected to result in changes to processes and internal controls, aiming to strengthen them through automation and standardization[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) PART II - OTHER INFORMATION This section provides additional information not covered in financial statements, including legal, risk factors, and other disclosures [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) This section confirms Astec's involvement in ordinary legal actions, with management believing no pending litigation will materially affect financial results - Management believes that current legal proceedings will not have a material adverse effect on the Company's financial position, cash flows, or results of operations[170](index=170&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, focusing on challenges and impacts from the TerraSource acquisition and increased indebtedness - The success of the TerraSource acquisition, completed July 1, 2025, depends on successful integration, which is complex, costly, and time-consuming. Challenges include retaining customers/personnel, integrating systems, achieving synergies, and managing expanded operations, any of which could adversely affect financial results[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) - The Company's new **$350.0 million** outstanding principal indebtedness under the 2025 Credit Facilities could adversely affect financial health by requiring a substantial portion of cash flow for debt service, limiting additional financing, increasing vulnerability to economic conditions, and potentially placing the company at a competitive disadvantage[179](index=179&type=chunk)[180](index=180&type=chunk) - Failure to comply with financial covenants in debt instruments could lead to an event of default or acceleration of debt[182](index=182&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item reports no unregistered sales of equity securities or use of proceeds during the period - No unregistered sales of equity securities or use of proceeds occurred during the period[183](index=183&type=chunk) [Item 3. Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item reports no defaults upon senior securities during the period - No defaults upon senior securities occurred during the period[184](index=184&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item reports no mine safety disclosures - No mine safety disclosures are reported[185](index=185&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) This item states 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 Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[186](index=186&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the TerraSource acquisition agreement, new Credit Agreement, and certifications - Key exhibits include the Membership Interest Purchase Agreement for TerraSource Holdings, LLC (dated April 28, 2025), the Credit Agreement for the 2025 Credit Facilities (dated July 1, 2025), and certifications from the CEO and CFO[188](index=188&type=chunk)

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2025 was $33.7 million, an increase of $6.1 million or 22.1% compared to 2024 [7][27] - Adjusted EBITDA margin improved to 10.2%, up 220 basis points year-over-year [7][28] - Adjusted earnings per share reached $0.88, a 44.3% increase from $0.61 in Q2 2024 [7][29] - Backlog decreased sequentially by 5.4% to $380.8 million [7][8] Business Line Data and Key Metrics Changes - In the Infrastructure Solutions segment, equipment sales were lower due to weak demand for forestry and mobile paving equipment, while aftermarket parts sales increased by 9.4% [27][30] - Material Solutions segment saw equipment sales increase by 4.9%, but aftermarket parts sales declined by 5.9% [30] - Adjusted EBITDA for the Material Solutions segment increased by 39.2% to $14.2 million, with adjusted EBITDA margin rising to 11.3% [30][31] Market Data and Key Metrics Changes - Approximately 80% of revenues are generated in the United States, with a favorable market outlook due to federal highway funding [17][21] - Total value of state and local government transportation contract awards increased by 9% to $47.8 billion through April 2025 [18] - The current surface transportation law is set to expire on October 1, 2026, with optimism for a new bill [19][20] Company Strategy and Development Direction - The completion of the TerraSource acquisition is expected to drive future growth, with aftermarket part sales representing approximately 63% of total revenue [11][12] - Focus on operational excellence and efficiency improvements to enhance margins and profitability [34] - Emphasis on growing the recurring aftermarket parts business and exploring inorganic growth opportunities [34] Management's Comments on Operating Environment and Future Outlook - Management noted a mix of external tailwinds and headwinds, including high interest rates and a changing tariff environment [14][16] - Customer sentiment remains cautiously optimistic, with large backlogs of work reported [14][34] - The company expects continued progress in the Material Solutions segment in the second half of the year [9][24] Other Important Information - The company maintains a strong balance sheet with cash and cash equivalents of $87.8 million and total available liquidity of $247.6 million [32] - Free cash flow for the quarter was $9 million, representing 53.9% of net income [32] Q&A Session Summary Question: Year-over-year margin improvement details - Management highlighted that margin expansion was driven by procurement efforts and operational excellence initiatives [40] Question: EPS drag from tariffs - Management indicated that they successfully mitigated tariff effects during the quarter and did not provide a specific number [42] Question: Market differences between asphalt/concrete plants and mobile paving equipment - Management explained that mobile paving equipment is facing inventory challenges similar to previous issues in the Material Solutions business, while asphalt plant demand remains strong [43] Question: Concerns about infrastructure spending bill winding down - Management reassured that customer optimism remains, with strong backlog and order visibility for Q3 [44][46] Question: Impressive cash flow management - Management noted effective working capital management and opportunities for further improvement in inventory levels [49][51]

Financial Performance - Net sales for Q2 2025 were $330.3 million [8], a decrease of 4.4% compared to $345.5 million in Q2 2024 [44] - Adjusted EBITDA for Q2 2025 was $33.7 million [8], an increase of 22.1% compared to $27.6 million in Q2 2024 [44] - Adjusted EBITDA margin for Q2 2025 was 10.2% [8], an increase of 220 bps compared to 8.0% in Q2 2024 [44] - Adjusted EPS for Q2 2025 was $0.88 [8], an increase of 44.3% compared to $0.61 in Q2 2024 [44] - Free cash flow was $9.0 million in Q2 2025 [8], representing 53.9% of net income [8] Segment Performance - Infrastructure Solutions net sales for Q2 2025 were $204.6 million [47], a decrease of 7.6% compared to $221.4 million in Q2 2024 [47] - Infrastructure Solutions segment operating adjusted EBITDA margin for Q2 2025 was 15.7% [47], an increase of 340 bps compared to 12.3% in Q2 2024 [47] - Materials Solutions net sales for Q2 2025 were $125.7 million [50], an increase of 1.3% compared to $124.1 million in Q2 2024 [50] - Materials Solutions segment operating adjusted EBITDA margin for Q2 2025 was 11.3% [50], an increase of 310 bps compared to 8.2% in Q2 2024 [50] Backlog and Orders - The backlog level is $380.8 million [8]

[Executive Summary & Business Update](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Update) Astec reported strong Q2 2025 results, driven by operational efficiencies and the TerraSource acquisition, leading to updated full-year guidance [Second Quarter 2025 Overview](index=1&type=section&id=Second%20Quarter%202025%20Overview) Astec reported strong Q2 2025 results with increased net income, EBITDA, and EPS, bolstered by the TerraSource acquisition and updated full-year guidance - Astec reported a strong quarter with increased **net income**, **EBITDA**, and **EPS**, driven by operational and procurement efficiencies[4](index=4&type=chunk) - Completed the acquisition of **TerraSource** on July 1, 2025, an adjacent manufacturer with annual revenues exceeding **$150 million**, over **60%** from aftermarket parts and services[4](index=4&type=chunk) Key Financial Highlights (Q2 2025 vs Q2 2024) | Metric | 2Q 2025 (GAAP) | 2Q 2024 (GAAP) | Change (%) | 2Q 2025 (Adjusted) | 2Q 2024 (Adjusted) | Change (%) | | :----------------------------------- | :------------- | :------------- | :--------- | :----------------- | :----------------- | :--------- | | Net sales (in millions) | $330.3 | $345.5 | (4.4)% | | | | | Income (loss) from operations (in millions) | $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 | | Net income (loss) attributable to controlling interest (in millions) | $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 (in millions) | $29.0 | $(4.4) | 759.1% | $33.7 | $27.6 | 22.1% | | EBITDA margin | 8.8% | (1.3)% | 1,010 bps | 10.2% | 8.0% | 220 bps | Full Year Adjusted EBITDA Guidance Update | Category | Previous Guidance (in millions) | Updated Guidance (in millions) | | :--------- | :------------------------------ | :----------------------------- | | Core Business | $105 - $125 | $110 - $125 | | TerraSource Contribution | N/A | $13 - $17 | | Consolidated | N/A | $123 - $142 | [Company Information](index=2&type=section&id=Company%20Information) Astec Industries manufactures specialized equipment for infrastructure and materials processing, structured into two primary business segments [About Astec](index=2&type=section&id=About%20Astec) Astec Industries manufactures specialized equipment for asphalt road building, aggregate processing, and concrete production, organized into two main segments - Astec manufactures specialized equipment for asphalt road building, aggregate processing, and concrete production[13](index=13&type=chunk) - The company's manufacturing operations are divided into two primary business segments: **Infrastructure Solutions** and **Materials Solutions**[13](index=13&type=chunk) [Business Segments Description](index=2&type=section&id=Business%20Segments%20Description) Astec's two segments, Infrastructure Solutions and Materials Solutions, provide equipment for road building, aggregate processing, and related aftermarket parts - **Infrastructure Solutions** segment includes road building equipment, asphalt and concrete plants, thermal storage solutions, and related aftermarket parts[8](index=8&type=chunk) - **Materials Solutions** segment focuses on processing equipment to crush, screen, and convey aggregates, along with related aftermarket parts[9](index=9&type=chunk) [Detailed Financial Results](index=5&type=section&id=Detailed%20Financial%20Results) Astec's Q2 2025 financial results show a significant turnaround to net income, improved segment profitability, and positive operating cash flow [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Astec's Q2 2025 statements show a turnaround from net loss to net income, driven by improved operating income and no goodwill impairment Condensed Consolidated Statements of Operations (Q2 2025 vs Q2 2024) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | | Net sales | $330.3 | $345.5 | | Gross profit | $88.3 | $81.3 | | Income (loss) from operations | $21.4 | $(10.7) | | Net income (loss) attributable to controlling interest | $16.7 | $(14.0) | | Diluted EPS | $0.72 | $(0.61) | Condensed Consolidated Statements of Operations (Six Months Ended June 30, 2025 vs 2024) | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :----------------------------- | :----------------------------- | | Net sales | $659.7 | $654.7 | | Gross profit | $180.7 | $158.2 | | Income (loss) from operations | $41.9 | $(4.4) | | Net income (loss) attributable to controlling interest | $31.0 | $(10.6) | | Diluted EPS | $1.35 | $(0.47) | - Goodwill impairment charges of **$20.2 million** in Q2 2024 were not present in Q2 2025, contributing to the improved operating income[22](index=22&type=chunk) [Reportable Segment Net Sales and Operating Adjusted EBITDA](index=6&type=section&id=Reportable%20Segment%20Net%20Sales%20and%20Operating%20Adjusted%20EBITDA) Segment performance varied, with Infrastructure Solutions seeing decreased Q2 sales but increased EBITDA, while Materials Solutions showed slight sales growth and substantial EBITDA rise [Three Months Ended June 30, 2025](index=6&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025) Q2 2025 saw Infrastructure Solutions net sales decrease by **7.6%** but EBITDA increase by **18.4%**, while Materials Solutions net sales rose **1.3%** and EBITDA surged **39.2%** Segment Net Sales (Q2 2025 vs Q2 2024) | Segment | 2Q 2025 (in millions) | 2Q 2024 (in millions) | Change ($) | Change (%) | | :--------------------- | :-------------------- | :-------------------- | :--------- | :--------- | | Infrastructure Solutions | $204.6 | $221.4 | $(16.8) | (7.6)% | | Materials Solutions | $125.7 | $124.1 | $1.6 | 1.3% | | **Total Net Sales** | **$330.3** | **$345.5** | **$(15.2)**| **(4.4)%** | Segment Operating Adjusted EBITDA (Q2 2025 vs Q2 2024) | Segment | 2Q 2025 (in millions) | 2Q 2024 (in millions) | Change ($) | Change (%) | | :--------------------- | :-------------------- | :-------------------- | :--------- | :--------- | | Infrastructure Solutions | $32.2 | $27.2 | $5.0 | 18.4% | | Materials Solutions | $14.2 | $10.2 | $4.0 | 39.2% | | **Total Segment Operating Adjusted EBITDA** | **$46.4** | **$37.4** | | | Segment Operating Adjusted EBITDA Margin (Q2 2025 vs Q2 2024) | Segment | 2Q 2025 | 2Q 2024 | Change (bps) | | :--------------------- | :-------- | :-------- | :----------- | | Infrastructure Solutions | 15.7% | 12.3% | 340 bps | | Materials Solutions | 11.3% | 8.2% | 310 bps | [Six Months Ended June 30, 2025](index=7&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025) YTD 2025, Infrastructure Solutions net sales grew **4.0%** and EBITDA **42.2%**, while Materials Solutions net sales decreased **5.2%** but EBITDA increased **25.2%** Segment Net Sales (Six Months Ended June 30, 2025 vs 2024) | Segment | YTD 2025 (in millions) | YTD 2024 (in millions) | Change ($) | Change (%) | | :--------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Infrastructure Solutions | $440.6 | $423.6 | $17.0 | 4.0% | | Materials Solutions | $219.1 | $231.1 | $(12.0) | (5.2)% | | **Total Net Sales** | **$659.7** | **$654.7** | **$5.0** | **0.8%** | Segment Operating Adjusted EBITDA (Six Months Ended June 30, 2025 vs 2024) | Segment | YTD 2025 (in millions) | YTD 2024 (in millions) | Change ($) | Change (%) | | :--------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Infrastructure Solutions | $75.1 | $52.8 | $22.3 | 42.2% | | Materials Solutions | $19.4 | $15.5 | $3.9 | 25.2% | | **Total Segment Operating Adjusted EBITDA** | **$94.5** | **$68.3** | | | Segment Operating Adjusted EBITDA Margin (Six Months Ended June 30, 2025 vs 2024) | Segment | YTD 2025 | YTD 2024 | Change (bps) | | :--------------------- | :-------- | :-------- | :----------- | | Infrastructure Solutions | 17.0% | 12.5% | 450 bps | | Materials Solutions | 8.9% | 6.7% | 220 bps | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$1,065.4 million**, driven by inventories, with total equity also rising Condensed Consolidated Balance Sheets (June 30, 2025 vs December 31, 2024) | Metric (in millions) | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Cash, cash equivalents and restricted cash | $88.7 | $90.8 | | Inventories, net | $448.8 | $422.7 | | Total current assets | $746.0 | $722.8 | | Total assets | $1,065.4 | $1,043.6 | | Total current liabilities | $274.8 | $271.7 | | Long-term debt | $85.0 | $105.0 | | Total equity | $674.9 | $637.6 | | Total liabilities and equity | $1,065.4 | $1,043.6 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Astec generated **$33.4 million** in operating cash flow for YTD Q2 2025, a significant improvement, with net cash outflow from financing activities Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30, 2025 vs 2024) | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $33.4 | $(36.1) |\n| Net cash used in investing activities | $(7.7) | $(12.6) |\n| Net cash (used in) provided by financing activities | $(29.2) | $49.5 |\n| Decrease in cash, cash equivalents and restricted cash | $(2.1) | $— |\n| Cash, cash equivalents and restricted cash, end of period | $88.7 | $63.2 | - Operating cash flow for Q2 2025 was **$12.9 million**, and free cash flow was **$9.0 million**[15](index=15&type=chunk) - Total liquidity was **$247.6 million**, comprising **$87.8 million** in cash and **$159.8 million** available under the revolving credit facility[15](index=15&type=chunk) [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) Astec utilizes non-GAAP measures to provide a clearer view of core business performance, adjusting for specific non-recurring and transformation-related costs [Explanation of Non-GAAP Measures](index=10&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Astec uses non-GAAP measures to clarify core business performance by excluding specific costs like transformation, restructuring, and impairment charges - **Non-GAAP measures** are used to understand operating results and core business performance, excluding costs like transformation program, restructuring, goodwill impairment, asset impairment, asset sale gains/losses, and transaction costs[38](index=38&type=chunk)[39](index=39&type=chunk) - **Transformation program costs** include personnel, consultant fees, duplicative systems, and accelerated depreciation related to strategic initiatives like ERP system implementation[39](index=39&type=chunk) [GAAP vs Non-GAAP Adjusted Income from Operations Reconciliations](index=11&type=section&id=GAAP%20vs%20Non-GAAP%20Adjusted%20Income%20from%20Operations%20Reconciliations) Adjusted income from operations for Q2 2025 was **$26.1 million**, with a **7.9%** margin, and YTD was **$54.4 million**, with an **8.2%** margin Adjusted Income from Operations (Q2 2025 vs Q2 2024) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | | Income (loss) from operations | $21.4 | $(10.7) | | Adjustments | $4.7 | $32.1 | | Adjusted income from operations | $26.1 | $21.4 | | Adjusted operating margin | 7.9% | 6.2% | Adjusted Income from Operations (Six Months Ended June 30, 2025 vs 2024) | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :----------------------------- | :----------------------------- | | Income (loss) from operations | $41.9 | $(4.4) | | Adjustments | $12.5 | $37.8 | | Adjusted income from operations | $54.4 | $33.4 | | Adjusted operating margin | 8.2% | 5.1% | [GAAP vs Non-GAAP Adjusted EPS Reconciliations](index=12&type=section&id=GAAP%20vs%20Non-GAAP%20Adjusted%20EPS%20Reconciliations) Adjusted diluted EPS for Q2 2025 was **$0.88**, a **44.3%** increase, and YTD was **$1.76**, reflecting adjustments for specific costs Adjusted EPS (Q2 2025 vs Q2 2024) | Metric (in millions, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) attributable to controlling interest | $16.7 | $(14.0) | | Adjusted net income attributable to controlling interest | $20.3 | $14.0 | | Diluted EPS | $0.72 | $(0.61) | | Adjusted EPS | $0.88 | $0.61 | Adjusted EPS (Six Months Ended June 30, 2025 vs 2024) | Metric (in millions, except per share) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to controlling interest | $31.0 | $(10.6) | | Adjusted net income attributable to controlling interest | $40.6 | $21.8 | | Diluted EPS | $1.35 | $(0.47) | | Adjusted EPS | $1.76 | $0.96 | [EBITDA and Adjusted EBITDA Reconciliations](index=13&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliations) Adjusted EBITDA for Q2 2025 increased **22.1%** to **$33.7 million** with a **10.2%** margin, and YTD reached **$68.9 million** with a **10.4%** margin EBITDA and Adjusted EBITDA (Q2 2025 vs Q2 2024) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | | EBITDA | $29.0 | $(4.4) | | EBITDA margin | 8.8% | (1.3)% | | Adjusted EBITDA | $33.7 | $27.6 | | Adjusted EBITDA margin | 10.2% | 8.0% | EBITDA and Adjusted EBITDA (Six Months Ended June 30, 2025 vs 2024) | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :----------------------------- | :----------------------------- | | EBITDA | $56.5 | $9.0 | | EBITDA margin | 8.6% | 1.4% | | Adjusted EBITDA | $68.9 | $46.5 | | Adjusted EBITDA margin | 10.4% | 7.1% | [Free Cash Flow Reconciliation](index=14&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free cash flow for Q2 2025 was **$9.0 million**, and YTD was **$25.6 million**, a substantial improvement from the prior year Free Cash Flow (Q2 2025 vs Q2 2024) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $12.9 | $10.9 | | Expenditures for property and equipment | $(3.9) | $(7.6) | | Free cash flow | $9.0 | $3.3 | Free Cash Flow (Six Months Ended June 30, 2025 vs 2024) | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $33.4 | $(36.1) | | Expenditures for property and equipment | $(7.8) | $(13.4) | | Free cash flow | $25.6 | $(49.5) | [Additional Information](index=2&type=section&id=Additional%20Information) This section provides details on investor communications, forward-looking statement disclaimers, and contact information [Investor Conference Call and Webcast](index=2&type=section&id=Investor%20Conference%20Call%20and%20Webcast) Astec held a conference call and webcast on August 6, 2025, to discuss Q2 results, business conditions, and the TerraSource acquisition - Astec held a conference call and live webcast on **August 6, 2025**, to review Q2 financial results, business conditions, and the TerraSource acquisition[10](index=10&type=chunk) - A replay of the call is available until **August 20, 2025**, and a transcript will be posted on the Investor Relations section of Astec's website[12](index=12&type=chunk) [Safe Harbor Statements](index=2&type=section&id=Safe%20Harbor%20Statements) This release contains forward-looking statements subject to risks and uncertainties detailed in SEC filings, potentially causing material differences in actual results - The news release includes **forward-looking statements** concerning income, earnings, cash flows, operational improvements, the TerraSource acquisition benefits, and economic conditions[14](index=14&type=chunk) - These statements are based on management's expectations and are subject to **risks and uncertainties** outlined in Astec's **Form 10-K and 10-Q filings**, which could lead to materially different actual results[14](index=14&type=chunk)[18](index=18&type=chunk) [For Additional Information Contact](index=4&type=section&id=For%20Additional%20Information%20Contact) Contact Steve Anderson, Senior Vice President of Administration and Investor Relations, for further information - Contact **Steve Anderson**, Senior Vice President of Administration and Investor Relations, for additional information[19](index=19&type=chunk)

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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