Astec Industries(US:ASTE)2025-11-05 21:15Financial Performance - Net sales for Q3 2025 were $350.1 million, an increase of 20.1% compared to $291.4 million in Q3 2024[109] - Gross profit for Q3 2025 was $84.2 million, representing 24.1% of net sales, up from $66.8 million or 22.9% in Q3 2024, a 26.0% increase[122] - Income from operations for Q3 2025 was $1.1 million, an increase of 115.3% compared to the previous year[109] - The net loss attributable to Astec for Q3 2025 was $4.2 million, an increase of 32.3% from the prior year[109] - Selling, general and administrative expenses for Q3 2025 were $83.3 million, or 23.8% of net sales, an increase of 27.0% from $65.6 million in Q3 2024[124] - Interest expense increased to $7.3 million for Q3 2025 from $2.6 million in Q3 2024, reflecting higher average borrowings and interest rates[127] - Income tax benefit for Q3 2025 was $0.9 million, down from $2.3 million in Q3 2024, with an effective tax rate of 17.6% compared to 27.1%[128] Sales Performance - Domestic sales for Q3 2025 were $280.4 million, accounting for 80.1% of consolidated net sales, up 32.8% from $211.2 million in Q3 2024[118] - International sales for Q3 2025 were $69.7 million, a decrease of 13.1% from $80.2 million in Q3 2024[120] - Infrastructure Solutions segment sales increased by 17.1% to $193.2 million in Q3 2025, driven by higher equipment and parts sales[133] - Materials Solutions segment sales rose 24.1% to $156.9 million in Q3 2025, primarily due to increased parts and component sales[136] Backlog and Future Outlook - Backlog as of Q3 2025 was $449.5 million, a decrease of 5.5%[109] - Total backlog decreased to $449.5 million as of September 30, 2025, down 5.5% from $475.8 million in 2024[130] - The acquisition of TerraSource on July 1, 2025, is expected to provide significant growth and value creation opportunities[106] Segment Performance - Segment Operating Adjusted EBITDA for Infrastructure Solutions was $23.9 million in Q3 2025, up 53.2% from $15.6 million in Q3 2024[147] - Segment Operating Adjusted EBITDA for Materials Solutions increased to $15.4 million in Q3 2025, a rise of 6.2% from $14.5 million in Q3 2024[149] - Corporate and Other operations reported net expenses of $12.2 million in Q3 2025, a decrease of 3.9% from $12.7 million in Q3 2024[153] Liquidity and Capital Expenditures - Total liquidity as of September 30, 2025, was $312.1 million, including $67.3 million in cash and cash equivalents[155] - Future cash requirements will focus on working capital, debt service, and potential strategic acquisitions, with sufficient liquidity expected for the next 12 months[157] - As of September 30, 2025, the company had outstanding principal indebtedness on the term loan facility of $345.6 million and no outstanding borrowings under the revolving credit facility[158] - The company estimates capital expenditures will be between $25.0 million and $35.0 million for the year ending December 31, 2025[161] Cash Flow - Net cash provided by operating activities was $25.3 million for the nine months ended September 30, 2025, compared to a net use of $13.6 million for the same period in 2024[163] - Net cash used in investing activities was $260.4 million during the nine months ended September 30, 2025, primarily due to the TerraSource acquisition[164] - Net cash provided by financing activities was $212.4 million during the nine months ended September 30, 2025, compared to $19.5 million for the same period in 2024[165] Current Assets and Liabilities - Total current assets increased to $821.2 million as of September 30, 2025, from $722.8 million as of December 31, 2024, an increase of $98.4 million, or 13.6%[167] - Total current liabilities increased to $318.3 million as of September 30, 2025, from $271.7 million as of December 31, 2024, an increase of $46.6 million, or 17.2%[168] - Open purchase obligations totaled $118.7 million as of September 30, 2025, with $92.7 million expected to be fulfilled within the remainder of 2025[160] Dividends and Credit Facilities - The company paid quarterly dividends of $0.13 per common share to shareholders in the third quarter of both 2025 and 2024[166] - Outstanding letters of credit totaled $5.2 million, decreasing borrowing availability to $244.8 million under the revolving credit facility as of September 30, 2025[158]