Astec Reports Third Quarter 2025 Results

Core Insights - Astec Industries, Inc. reported strong financial results for Q3 2025, with net sales increasing by 20.1% to $350.1 million compared to $291.4 million in Q3 2024, driven by operational efficiencies and the acquisition of TerraSource Holdings, LLC [2][10][32] - 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 [2][10] - Adjusted EBITDA for Q3 2025 grew by 55.7% to $27.1 million, up from $17.4 million in the same quarter last year [2][10][32] Financial Performance - Net sales for the Infrastructure Solutions segment reached $193.2 million, a 17.1% increase, while the Materials Solutions segment saw net sales of $156.9 million, a 24.1% increase [10][18] - The company reported a net loss of $4.2 million for Q3 2025, an improvement from a net loss of $6.2 million in Q3 2024 [2][10][32] - The operating margin improved to 0.3% from a loss of 2.5% in the prior year, reflecting operational advancements [2][10][32] Segment Analysis - Infrastructure Solutions segment's adjusted EBITDA increased by 53.2% to $23.9 million, with an adjusted EBITDA margin of 12.4%, up 290 basis points [10][20] - Materials Solutions segment's adjusted EBITDA rose by 6.2% to $15.4 million, with an adjusted EBITDA margin of 9.8%, down 170 basis points due to prior year litigation reserve releases [10][20] - The total backlog decreased by 5.5% to $449.5 million, with Infrastructure Solutions backlog down 26.1% while Materials Solutions backlog increased by 52.4% [10][18] Liquidity and Cash Flow - Total liquidity stood at $312.1 million, comprising $67.3 million in cash and cash equivalents and $244.8 million available for additional borrowings [10][24] - Operating cash flow for the quarter was negative $8.1 million, and free cash flow was negative $12.3 million [10][33] - Capital expenditures for the quarter amounted to $4.2 million, and the company paid a dividend of $0.13 per share [10][24]