Astec Industries(ASTE) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2025 reached $350.1 million, a 20.1% increase compared to $291.4 million in Q3 2024[3] - Adjusted EBITDA grew by 55.7% to $27.1 million, up from $17.4 million in the same quarter last year[4] - The company reported a net loss of $4.2 million, an improvement from a net loss of $6.2 million in Q3 2024[4] - Diluted EPS improved to $(0.18) from $(0.27) year-over-year, reflecting a 33.3% reduction in losses[4] - Adjusted income from operations for Q3 2025 was $20.6 million, compared to $11.0 million in Q3 2024, reflecting an increase of 87.3%[45] - Adjusted net income attributable to controlling interest for Q3 2025 was $10.8 million, compared to $8.1 million in Q3 2024, marking a 33.3% increase[48] - Adjusted EPS for Q3 2025 was $0.47, up from $0.36 in Q3 2024, representing a 30.6% increase[48] Revenue Segments - The acquisition of TerraSource Holdings contributed to a 24.1% increase in Material Solutions net sales, totaling $156.9 million[15] - Infrastructure Solutions net sales increased by 17.1% to $193.2 million, driven by strong demand for asphalt and concrete plants[15] - Materials Solutions segment revenue increased by $30.5 million or 24.1%, reaching $156.9 million compared to $126.4 million in 2024[28] - Infrastructure Solutions segment revenue rose to $193.2 million, up $28.2 million or 17.1% from $165.0 million in the prior year[28] Cash Flow and Liquidity - Total liquidity stood at $312.1 million, including $67.3 million in cash and cash equivalents[15] - Operating cash flow for the quarter was negative $8.1 million, and free cash flow was negative $12.3 million[15] - Free cash flow for Q3 2025 was negative at $(12.3) million, compared to positive $19.9 million in Q3 2024[54] Guidance and Future Outlook - The company updated its full-year adjusted EBITDA guidance, raising the lower end from $123 million to $132 million, while maintaining the upper end at $142 million[4] Assets and Liabilities - The total assets of the company as of September 30, 2025, were $1,349.0 million, an increase from $1,043.6 million at the end of 2024[34] - Long-term debt increased significantly to $323.6 million from $105.0 million at the end of 2024[34] - Cash, cash equivalents, and restricted cash decreased to $69.3 million from $90.8 million at the end of 2024[37] Operational Efficiency - Segment Operating Adjusted EBITDA for Infrastructure Solutions improved to $23.9 million, a $8.3 million increase or 53.2% from $15.6 million[28] - The Infrastructure Solutions segment's Operating Adjusted EBITDA margin improved to 15.6%, a 400 basis points increase from 11.6% in 2024[32] Capital Expenditures - Capital expenditures for the quarter amounted to $4.2 million, with a dividend payment of $0.13 per share[15] - The company incurred $5.2 million in transformation program costs in Q3 2025, down from $8.4 million in Q3 2024[51] - The company incurred $248.5 million in cash outflows for acquisitions during the nine months ended September 30, 2025[38] EBITDA Analysis - EBITDA for Q3 2025 was $13.8 million, significantly up from $0.6 million in Q3 2024[51] - Adjusted EBITDA for Q3 2025 was $27.1 million, compared to $17.4 million in Q3 2024, an increase of 55.5%[51]