[Astec First Quarter 2025 Results and TerraSource Acquisition](index=1&type=section&id=Astec%20First%20Quarter%202025%20Results%20and%20TerraSource%20Acquisition) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Astec reported strong Q1 2025 results, with net sales increasing **6.5%** and net income surging **320.6%** Q1 2025 Key Financial Metrics (GAAP vs. Adjusted) | Metric (in millions, except per share) | 1Q 2025 (GAAP) | 1Q 2024 (GAAP) | % Change | 1Q 2025 (Adjusted) | 1Q 2024 (Adjusted) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $329.4 | $309.2 | 6.5% | - | - | - | | **Income from Operations** | $20.5 | $6.3 | 225.4% | $28.3 | $12.0 | 135.8% | | **Net Income** | $14.3 | $3.4 | 320.6% | $20.3 | $7.8 | 160.3% | | **Diluted EPS** | $0.62 | $0.15 | 313.3% | $0.88 | $0.34 | 158.8% | | **EBITDA** | $27.5 | $13.4 | 105.2% | $35.2 | $18.9 | 86.2% | | **Backlog** | $402.6 | $559.8 | (28.1)% | - | - | - | - CEO Jaco van der Merwe attributed the strong quarter to operational execution, delivering increases in **net sales**, **EBITDA**, **net income**, and **EPS**[3](index=3&type=chunk) - The company reiterated its full-year adjusted EBITDA guidance range of **$105 million** to **$125 million**, excluding the pending TerraSource acquisition[3](index=3&type=chunk) [Acquisition of TerraSource Holdings, LLC](index=1&type=section&id=Acquisition%20of%20TerraSource%20Holdings%2C%20LLC) Astec will acquire TerraSource Holdings for **$245 million** in cash, expecting accretion, margin expansion, and **$10 million** in synergies - Astec will acquire TerraSource for **$245.0 million** in cash, financed through existing cash and new committed financing[9](index=9&type=chunk) - The transaction is expected to close in the early third quarter of 2025, subject to regulatory approvals[9](index=9&type=chunk) - Strategic benefits of the acquisition include: - Increases aftermarket revenue, with TerraSource's 2024 aftermarket sales comprising **~60%** of total revenue and **80%** of gross profit - Adds scale and expands global market presence - Expected to be accretive to gross profit margins, adjusted EBITDA margins, and EPS - Enables approximately **$10 million** in run-rate cost synergies, primarily from procurement savings[14](index=14&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Infrastructure Solutions net sales grew **16.7%** while Materials Solutions declined **12.7%**, reflecting varied market demand Q1 2025 Segment Performance vs. Q1 2024 | Segment | Net Sales (Q1 2025, in millions) | % Change YoY | Segment Operating Adjusted EBITDA (Q1 2025, in millions) | % Change YoY | Segment Operating Adjusted EBITDA Margin (Q1 2025) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Infrastructure Solutions** | $236.0M | 16.7% | $42.9M | 67.6% | 18.2% | | **Materials Solutions** | $93.4M | (12.7)% | $5.2M | (1.9)% | 5.6% | [Infrastructure Solutions](index=2&type=section&id=Infrastructure%20Solutions) Infrastructure Solutions net sales increased **16.7%** to **$236 million**, with Adjusted EBITDA surging **67.6%** - Net sales increased **16.7%** to **$236.0 million** due to strong demand for asphalt and concrete plants, despite some softness in mobile paving and forestry[13](index=13&type=chunk) - Segment Operating Adjusted EBITDA increased **67.6%** to **$42.9 million**, and the margin improved by **550 basis points** to **18.2%**[13](index=13&type=chunk)[25](index=25&type=chunk) [Materials Solutions](index=2&type=section&id=Materials%20Solutions) Materials Solutions net sales decreased **12.7%** to **$93.4 million** due to domestic equipment sales declines, with stable EBITDA - Net sales decreased **12.7%** to **$93.4 million**, mainly due to lower domestic equipment sales linked to financing constraints for contractors and dealers[13](index=13&type=chunk) - Segment Operating Adjusted EBITDA decreased by **1.9%** to **$5.2 million**, while the margin improved by **60 basis points** to **5.6%**[13](index=13&type=chunk)[25](index=25&type=chunk) [Liquidity and Cash Flow](index=2&type=section&id=Liquidity%20and%20Cash%20Flow) Astec reported **$238.9 million** in liquidity, generating **$20.5 million** in operating cash flow and **$16.6 million** in free cash flow - Total liquidity stood at **$238.9 million**, comprising **$90.1 million** in cash and **$148.8 million** available under its revolving credit facility[13](index=13&type=chunk) Q1 2025 Cash Flow Summary (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating Cash Flow** | $20.5 | $(47.0) | | **Capital Expenditures** | $(3.9) | $(5.8) | | **Free Cash Flow** | $16.6 | $(52.8) | - The company paid a dividend of **$0.13 per share** during the quarter[13](index=13&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Astec's Q1 2025 consolidated statements show net sales of **$329.4 million** and net income of **$14.3 million** [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 net sales reached **$329.4 million**, with gross profit at **$92.4 million** and net income at **$14.3 million** Q1 2025 Statement of Operations (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net sales** | $329.4 | $309.2 | | **Gross profit** | $92.4 | $76.9 | | **Income from operations** | $20.5 | $6.3 | | **Net income attributable to controlling interest** | $14.3 | $3.4 | | **Diluted EPS** | $0.62 | $0.15 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$1,056 million**, with total equity at **$653.1 million** and cash at **$92.6 million** Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $737.2 | $722.8 | | **Total assets** | $1,056.0 | $1,043.6 | | **Total current liabilities** | $277.0 | $271.7 | | **Long-term debt** | $96.0 | $105.0 | | **Total equity** | $653.1 | $637.6 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating cash flow was **$20.5 million**, a significant improvement from a **$47 million** use in Q1 2024 Q1 Cash Flow Summary (in millions) | Cash Flow 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) | | **Cash, end of period** | $92.6 | $58.1 | [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Astec presents non-GAAP measures, including Adjusted Income from Operations of **$28.3 million** and Adjusted EBITDA of **$35.2 million** [Explanation of Non-GAAP Measures](index=9&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures exclude non-core operational costs like transformation program expenses, restructuring charges, and acquisition transaction costs - Non-GAAP measures exclude costs related to: - Transformation program (e.g., ERP implementation) - Restructuring and other related charges - Goodwill and asset impairments - Gains or losses on sale of property and equipment - Transaction costs for acquisitions[34](index=34&type=chunk) [Reconciliation of Adjusted Income from Operations](index=10&type=section&id=Reconciliation%20of%20Adjusted%20Income%20from%20Operations) Adjusted income from operations for Q1 2025 was **$28.3 million**, primarily adjusted for transformation program and transaction costs GAAP to Non-GAAP Adjusted Income from Operations (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Income from operations (GAAP)** | $20.5 | $6.3 | | Transformation program | $7.0 | $6.5 | | Transaction costs | $0.8 | - | | Other adjustments | - | $(0.8) | | **Adjusted income from operations (Non-GAAP)** | $28.3 | $12.0 | | **Adjusted operating margin** | 8.6% | 3.9% | [Reconciliation of Adjusted EPS](index=11&type=section&id=Reconciliation%20of%20Adjusted%20EPS) Adjusted EPS for Q1 2025 was **$0.88**, derived from adjusted net income of **$20.3 million** after specific exclusions GAAP to Non-GAAP Adjusted EPS | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | $0.62 | $0.15 | | Transformation program adjustment | $0.31 | $0.29 | | Transaction costs adjustment | $0.03 | - | | Other adjustments | - | $(0.04) | | Income tax impact of adjustments | $(0.08) | $(0.06) | | **Adjusted EPS (Non-GAAP)** | $0.88 | $0.34 | [Reconciliation of EBITDA and Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 reached **$35.2 million**, reflecting a **10.7%** margin after non-core operational adjustments EBITDA and Adjusted EBITDA Reconciliation (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net income attributable to controlling interest** | $14.3 | $3.4 | | **EBITDA** | $27.5 | $13.4 | | EBITDA margin | 8.3% | 4.3% | | **Adjusted EBITDA** | $35.2 | $18.9 | | Adjusted EBITDA margin | 10.7% | 6.1% | [Reconciliation of Free Cash Flow](index=13&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Free cash flow for Q1 2025 was **$16.6 million**, a significant improvement from a negative **$52.8 million** in Q1 2024 Free Cash Flow Reconciliation (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $20.5 | $(47.0) | | **Expenditures for property and equipment** | $(3.9) | $(5.8) | | **Free cash flow** | $16.6 | $(52.8) |

Core Insights - Astec Industries, Inc. reported strong financial results for Q1 2025, with increases in net sales, EBITDA, net income, and earnings per share, alongside the announcement of a definitive agreement to acquire TerraSource Holdings, LLC for $245 million [2][4][6]. Financial Performance - Net sales reached $329.4 million, a 6.5% increase from $309.2 million in Q1 2024 [4][29]. - EBITDA was $27.5 million, up 105.2% from $13.4 million in the previous year, with an adjusted EBITDA of $35.2 million, reflecting an 86.2% increase [4][30]. - Net income attributable to controlling interest was $14.3 million, a 320.6% increase compared to $3.4 million in Q1 2024, with adjusted net income of $20.3 million, up 160.3% [4][27]. - Diluted EPS increased to $0.62 from $0.15, representing a 313.3% rise, while adjusted EPS was $0.88, up 158.8% [4][27]. Segment Performance - Infrastructure Solutions segment net sales were $236.0 million, a 16.7% increase from $202.2 million, with an operating adjusted EBITDA of $42.9 million, up 67.6% [8][17]. - Materials Solutions segment net sales decreased by 12.7% to $93.4 million, primarily due to lower domestic equipment sales, with an operating adjusted EBITDA of $5.2 million, a slight decrease of 1.9% [8][17]. Acquisition Details - The acquisition of TerraSource is expected to enhance Astec's scale, improve aftermarket parts mix, and expand margins, with anticipated annual run-rate synergies of approximately $10 million [6][9]. - The transaction is expected to close in early Q3 2025, subject to regulatory approvals [6][9]. Liquidity and Cash Flow - Total liquidity was reported at $238.9 million, including $90.1 million in cash and cash equivalents [8]. - Operating cash flow for the quarter was $20.5 million, with free cash flow of $16.6 million [8][32].

Core Viewpoint - Astec Industries, Inc. is set to release its first quarter 2025 financial results on April 29, 2025, and will host 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]. - The call is scheduled for April 29, 2025, at 8:30 a.m. Eastern Time, with access available via phone or a live webcast [1][2]. - A replay of the call will be available until May 13, 2025, and a transcript will be posted on the Investor Relations section of the company's website within 5 business days after the call [3]. Group 2: Company Overview - Astec Industries, Inc. specializes in manufacturing equipment for asphalt road building, aggregate processing, and concrete production [4]. - The company operates in two primary business segments: Infrastructure Solutions and Materials Solutions [4].

Core Viewpoint - Astec Industries, Inc. is set to release its first quarter 2025 financial results on April 29, 2025, and will host 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 or +1 (646) 960-0833 for international callers, 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 operates in two primary business segments: Infrastructure Solutions and Materials Solutions [4].

Group 1 - Astec Industries, Inc. will participate in the Sidoti Small Cap Virtual Conference on March 19, 2025, with key executives presenting and engaging in one-on-one meetings [1] - The presentation by Astec will occur from 1:45 P.M. to 2:15 P.M. Eastern time, and interested parties can access it via a provided link [1] - The company specializes in manufacturing equipment for asphalt road building, aggregate processing, and concrete production, divided into two main business segments: Infrastructure Solutions and Materials Solutions [2] Group 2 - Infrastructure Solutions includes road building, asphalt and concrete plants, as well as thermal and storage solutions, while Materials Solutions encompasses aggregate processing and mining equipment [2] - Astec also offers controls and automation products aimed at enhancing productivity through improved equipment performance [2]

Financial Performance - Net sales for 2024 were $1,305.1 million, a decrease of 2.5% compared to $1,338.2 million in 2023[266]. - Gross profit for 2024 was $327.9 million, slightly down from $330.8 million in 2023, resulting in a gross margin of 25.1%[266]. - Net income for 2024 was $4.1 million, a significant decline from $33.7 million in 2023, reflecting a net margin of 0.3%[266]. - The company reported a goodwill impairment of $20.2 million in 2024, compared to no impairment in 2023[266]. - Cash flows from operating activities generated $23.0 million in 2024, down from $27.8 million in 2023[272]. - The company reported a comprehensive loss of $13.3 million for the year ended December 31, 2024, compared to a comprehensive income of $2.1 million in 2023[277]. - Income before income taxes decreased significantly from $42.8 million in 2023 to $13.9 million in 2024, a decline of 67.6%[396]. - The total income tax provision for 2024 was $9.8 million, compared to $9.1 million in 2023, representing a 7.7% increase[396]. Assets and Liabilities - Total current assets increased to $722.8 million in 2024 from $719.5 million in 2023, primarily driven by an increase in cash and cash equivalents[264]. - Total liabilities remained relatively stable at $406.0 million in 2024, compared to $405.6 million in 2023[264]. - As of December 31, 2024, the total equity of the company is $637.6 million, an increase from $626.9 million in 2023[277]. - The total cash and cash equivalents, including restricted cash, amounted to $541.7 million as of December 31, 2024[289]. - The company had total borrowings outstanding of $105.0 million under its credit facilities as of December 31, 2024, up from $72.0 million in 2023[385]. Inventory and Cost Management - The company’s inventory is significantly composed of steel, which is subject to market price volatility, impacting overall financial performance[241]. - As of December 31, 2024, total inventories decreased to $422.7 million from $455.6 million in 2023, with raw materials and parts at $275.4 million[357]. - The company reviews individual items in its inventory to determine if any item's net realizable value is below its carrying value[303]. - The company accrues for estimated product warranty costs at the time revenue is recognized, based on historical claims experience[320]. Foreign Operations and Currency Risk - Foreign operations represented 26.9% of total assets and 13.5% of total net sales for the year ended December 31, 2024, indicating significant exposure to foreign exchange risk[238]. - A 10% fluctuation in foreign exchange rates would have impacted net sales by $17.7 million and net income by $2.0 million for the year ended December 31, 2024[240]. - The company evaluates the need to hedge foreign currency transactions, but does not apply hedge accounting, impacting earnings recognition[239]. - The company’s foreign subsidiaries' operations are subject to currency fluctuations, which can affect the valuation of net assets in U.S. dollars[238]. Shareholder and Legal Matters - The company settled a shareholder class action lawsuit for $13.7 million, fully funded by insurance carriers, with the case dismissed on September 10, 2024[411]. - The company reached a settlement of $8.4 million related to a lawsuit involving its GEFCO subsidiary, paid in the fourth quarter of 2024[412]. - The company recorded a loss of $1.9 million related to the settlement of a lawsuit involving its Telsmith subsidiary, which was resolved for $6.3 million in September 2024[413]. Research and Development - Research and development costs amounted to $23.8 million, $22.0 million, and $31.5 million for the years 2024, 2023, and 2022, respectively[339]. Segment Information - The company operates in two reportable segments: Infrastructure Solutions and Materials Solutions, focusing on equipment for road building and related construction activities[282]. - The Infrastructure Solutions segment focuses on manufacturing and servicing asphalt and concrete plants, catering to a diverse range of customers including governmental agencies[433]. Tax and Deferred Tax Assets - The total deferred tax assets increased from $54.7 million in 2023 to $64.6 million in 2024, primarily due to an increase in amortization of research and experimental expenditures[398]. - The valuation allowance for deferred tax assets decreased by $0.1 million in 2024, driven by the release of the valuation allowance on deferred tax assets related to NOLs generated by the Company's Chilean subsidiary[399]. - The Company had unrecognized tax benefits of $16.8 million as of December 31, 2024, an increase from $13.0 million in 2023, reflecting a rise of 29%[403]. Goodwill and Intangible Assets - The Company’s goodwill balance as of December 31, 2024, was $79.0 million, down from $80.3 million in 2023, reflecting the impairment charge[370]. - The total intangible assets amounted to $66.5 million, with a net carrying value of $11.2 million after accumulated amortization[371]. - The amortization expense on intangible assets for 2024 was $4.8 million, compared to $5.5 million in 2023 and $8.5 million in 2022[371]. Compensation and Employee Benefits - The Company’s share-based compensation expense was $5.0 million in 2024, up from $4.1 million in 2023[277]. - The Company’s contributions to the 401(k) plan increased to $10.1 million in 2024, up from $8.1 million in 2023 and $7.7 million in 2022, reflecting a growth of 24.8% year-over-year[395].

Financial Data and Key Metrics Changes - The company reported record quarterly net sales, adjusted net income, and adjusted EBITDA for Q4 2024, with adjusted EBITDA of $47.9 million, a 47% increase year-over-year [8][13][26] - Full year net sales were relatively flat at $1.3 billion, with adjusted EBITDA for the year at $111.8 million, a 1.6% increase [11][13][27] - Adjusted EBITDA margin increased by 360 basis points to 13.3% in Q4, while full year adjusted EBITDA margins increased by 40 basis points to 8.6% [13][27] Business Line Data and Key Metrics Changes - The Infrastructure Solutions segment saw strong net sales driven by capital equipment and aftermarket parts, with a 4.6% increase in net sales for the year [28] - The Material Solutions segment faced challenges with lower capital equipment sales due to high interest rates and dealer destocking, although aftermarket parts sales remained stable [9][30] - Adjusted EBITDA margins for the Infrastructure Solutions segment reached a record 21.3% in Q4, while the Material Solutions segment's performance was negatively impacted by lower sales volumes [28][30] Market Data and Key Metrics Changes - Domestic funding for infrastructure projects remains strong, with states committing over $180 billion in highway and bridge formula funds for new projects [20] - The total value of state and local government highway and bridge contract awards increased to nearly $121 billion in 2024, up from $114.6 billion in 2023 [20] - The company sees international markets as opportunities for growth, with strong brand recognition but modest market share [22][23] Company Strategy and Development Direction - The company is focused on operational excellence, procurement efforts, and exploring inorganic growth opportunities as part of its capital allocation priorities [14][33] - New product launches and advanced digital integrations are planned for 2025, with a strong emphasis on customer engagement and satisfaction [18][36] - The company aims to leverage its strong balance sheet to fund growth and capitalize on multiyear federal and state funding for infrastructure [38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding customer expectations for 2025, with expectations of second-half tailwinds [36] - Concerns over interest rate reductions persist, but there are positive signs of inventory reductions and order intake in early 2025 [37][50] - The company anticipates adjusted EBITDA in the range of $105 million to $125 million for 2025, with a seasonal distribution of earnings expected [33] Other Important Information - The company generated positive free cash flow of $32.1 million in Q4 due to profitable sales and effective working capital management [32] - Approximately 80% of net sales are domestic, with less than 15% of purchases sourced from China, mitigating some tariff risks [15] Q&A Session Summary Question: Progress on manufacturing inefficiencies - Management noted steady improvement in manufacturing efficiencies, with Q4 showing one of the lowest inefficiencies in recent times [44][46] Question: Normalized backlog levels for Infrastructure Solutions - Management indicated strong order intake for asphalt and concrete plant equipment, expressing confidence in the Infrastructure Solutions segment [51][52] Question: Importance of bonus depreciation for orders and backlog - Management acknowledged that reinstating bonus depreciation would significantly benefit smaller customers and potentially improve order and backlog levels [56] Question: Impact of interest rates on the mobile market - Management highlighted that while elevated interest rates have posed challenges, there are signs that customers are adapting and beginning to replace aging equipment [59][60]

Financial Highlights - Net sales for the full year reached $13051 billion[6] - Adjusted EBITDA for the full year was $1118 million[6] - Free cash flow for the full year was $25 million[6] - Q4 net sales increased by 65% to $3590 million compared to $3372 million in Q4 2023[28] - Q4 Adjusted EBITDA increased by 469% to $479 million compared to $326 million in Q4 2023[28] - Q4 Adjusted EPS increased by 322% to $119 compared to $090 in Q4 2023[28] Segment Performance - Infrastructure Solutions net sales increased by 119% to $2488 million in Q4 2024[31] - Materials Solutions net sales decreased by 41% to $1102 million in Q4 2024[34] Backlog and Orders - Consolidated backlog moderated to $4196 million[6] - Consolidated implied orders for Q4 2024 increased by 283% quarter-over-quarter[16]

Financial Performance - Record net sales of $359.0 million, an increase of 6.5% compared to $337.2 million in Q4 2023[4] - Strong net income of $21.1 million, up 41.6% from $14.9 million in Q4 2023; adjusted net income of $27.2 million, a 32.0% increase[4] - EBITDA of $40.0 million, a 57.5% increase from $25.4 million in Q4 2023; record adjusted EBITDA of $47.9 million, up 46.9%[4] - Diluted EPS of $0.92, a 41.5% increase from $0.65 in Q4 2023; record adjusted EPS of $1.19, up 32.2%[4] - Gross profit for Q4 2024 was $102.9 million, compared to $89.1 million in Q4 2023, reflecting a significant improvement in profitability[22] - Income from operations for Q4 2024 was $34.8 million, compared to $18.9 million in Q4 2023, with adjusted income from operations rising to $42.8 million from $26.3 million[43] - Adjusted operating margin improved to 11.9% in Q4 2024 from 7.8% in Q4 2023, reflecting operational efficiency gains[43] Segment Performance - Infrastructure Solutions segment net sales of $248.8 million increased by 11.9% due to strong demand for asphalt and concrete plants[13] - Materials Solutions segment net sales of $110.2 million decreased by 4.1% primarily due to lower domestic equipment sales[13] - Infrastructure Solutions segment net sales increased by 11.9% to $248.8 million, while Materials Solutions segment sales decreased by 4.1% to $110.2 million[26] - The Infrastructure Solutions segment's operating adjusted EBITDA margin improved to 14.5% in 2024 from 12.8% in 2023[30] Cash Flow and Liquidity - Operating cash flow of $36.6 million and free cash flow of $32.1 million in Q4 2024[4] - Total liquidity of $228.1 million, consisting of $88.3 million in cash and cash equivalents and $139.8 million available for additional borrowings[13] - Cash, cash equivalents, and restricted cash increased to $90.8 million as of December 31, 2024, compared to $63.2 million at the end of 2023[32] - The company reported a net cash provided by operating activities of $23.0 million for the year ended December 31, 2024, down from $27.8 million in 2023[36] - Free cash flow for Q4 2024 was $32.1 million, down from $37.5 million in Q4 2023, while net cash provided by operating activities decreased to $36.6 million from $46.6 million[52] Debt and Backlog - Long-term debt rose to $105.0 million in 2024 from $72.0 million in 2023, indicating increased leverage[32] - Backlog decreased by 26.4% to $419.6 million compared to $569.8 million in Q4 2023[4] Future Outlook - For full year 2025, the company expects adjusted EBITDA in the range of $105 million to $125 million[4] Transformation and Restructuring - Transformation program costs for 2024 totaled $33.5 million, up from $29.7 million in 2023, indicating ongoing investment in strategic initiatives[43] - The company is focused on restructuring efforts, with related charges of $9.5 million in 2024, compared to $7.7 million in 2023, aimed at simplifying operations[43] - Goodwill impairment charges of $20.2 million were recorded in 2024, reflecting challenges in the Materials Solutions reporting unit[43] Yearly Performance - For the year ended December 31, 2024, net sales were $1,305.1 million, a decline of 2.5% from $1,338.2 million in 2023[30] - Net sales for Q4 2024 were $359.0 million, an increase from $337.2 million in Q4 2023, while total net sales for the year decreased to $1,305.1 million from $1,338.2 million[43] - Total operating expenses decreased to $68.1 million in Q4 2024 from $70.2 million in Q4 2023, contributing to improved operating income[22]

Core Points - Astec Industries, Inc. will hold a conference call to discuss its fourth quarter and full year 2024 financial results on February 26, 2025 [1] - The call will be hosted by key executives including the President and CEO, CFO, and Senior VP of Administration and Investor Relations [2] - A replay of the call will be available until March 12, 2025, and a transcript will be provided within 5 business days after the call [3] Company Overview - Astec is a manufacturer specializing in 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]