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1. Company Snapshot

1.a. Company Description

Astec Industries, Inc.designs, engineers, manufactures, and markets equipment and components used primarily in road building and related construction activities in the United States and internationally.The company operates in two segments, Infrastructure Solutions and Materials Solutions.


The Infrastructure Solutions segment offers asphalt plants and related components, heaters, concrete dust control systems, asphalt pavers, vaporizers, concrete material handling systems, screeds, heat recovery units, paste back-fill plants, asphalt storage tanks, hot oil heaters, bagging plants, fuel storage tanks, industrial and asphalt burners and systems, custom batch plants, material transfer vehicles, soil stabilizing-reclaiming machinery, blower trucks and trailers, milling machines, soil remediation plants, wood chippers and grinders, pump trailers, concrete batch plants, control systems, liquid terminals, storage equipment and related parts, construction and retrofits, polymer plants, and concrete mixers, as well as engineering and environmental permitting services.This segment provides its products to asphalt producers, highway and heavy equipment contractors, ready mix concrete producers, contractors in the construction and demolition recycling markets, and governmental agencies.The Materials Solutions segment designs and manufactures crushing equipment, mobile plants, bulk material handling solutions, vibrating equipment, screening equipment, electrical control centers, modular plants and systems, conveying equipment, plant automation products, portable plants, and mineral processing equipment, as well as offers consulting and engineering services.


Astec Industries, Inc.was incorporated in 1972 and is headquartered in Chattanooga, Tennessee.

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1.b. Last Insights on ASTE

Astec Industries' recent performance was negatively impacted by revenue softness, despite improved profitability. The company's acquisition of TerraSource Holdings boosted expected EBITDA and presented opportunities for cost synergies and operational growth. However, Q3 2025 earnings revealed revenue decline. According to Sidoti & Company, LLC, ASTE remains a "Buy" due to attractive valuation. Y Intercept Hong Kong Ltd also acquired a new position in ASTE, purchasing 31,985 shares. The company will participate in investor conferences, including the Stephens Investment Conference and Baird 2025 Global Industrial Conference.

1.c. Company Highlights

2. Astec Industries' Q3 2025 Earnings Report: A Strong Performance

Astec Industries reported a robust third quarter, with adjusted EBITDA reaching $27.1 million, a 55.7% increase from the same period last year, driven by strong demand for asphalt and concrete plants, as well as the inclusion of TerraSource. The company's adjusted EBITDA margin expanded to 7.7%, a gain of 170 basis points, while adjusted earnings per share reached $0.47, beating analyst estimates of $0.45. Revenue growth was also impressive, with a 20.1% increase in net sales. As Jaco van der Merwe, CEO, noted, "We continue to see customers order closer to their desired delivery dates due to a combination of our shorter lead times and finished goods inventory on hand."

Publication Date: Nov -18

📋 Highlights
  • Adjusted EBITDA Surge: Adjusted EBITDA reached $27.1M, a 55.7% increase YoY, with margins rising 170 bps to 7.7%.
  • Infrastructure Segment Strength: Asphalt and concrete plants drove margin expansion, while forestry/mobile paving faced challenges; backlog rose $68.7M to $449.5M, $64.1M from TerraSource.
  • Guidance Raised: Full-year adjusted EBITDA guidance lifted from $123–142M to $132–142M, citing robust demand and federal highway funding.
  • Strong Liquidity: $312.1M in total liquidity ($67.3M cash + $244.8M credit) with net debt/EBITDA at 2.0x, within target range.
  • TerraSource Integration Progress: Margins accretive despite litigation costs; 32% parts revenue growth company-wide, with synergies expected to peak in 2026.

Segment Performance

The Infrastructure Solutions segment delivered strong results, driven by asphalt plants, concrete plants, heaters, and burners, which contributed to margin expansion. However, forestry and mobile paving equipment faced headwinds due to challenging end-market conditions. The Material Solutions segment, which includes TerraSource, reported stable backlog for the past five quarters, with TerraSource's margins being accretive to the company's overall performance.

Guidance and Outlook

Astec Industries raised the lower end of its full-year guidance from $123 million to $132 million, while maintaining the upper range at $142 million. The updated outlook is based on the current operating environment, including ongoing funding provided by the current federal highway bill in the United States and demand for aggregate, concrete, and asphalt use in public residential and non-residential construction projects.

Valuation

With a P/E Ratio of 20.22 and an EV/EBITDA of 12.19, Astec Industries' valuation appears reasonable, considering its strong earnings growth and improving margins. Analysts estimate revenue growth of 6.3% for next year, which may provide further support for the stock. Additionally, the company's Net Debt / EBITDA ratio of 2.54 is within its target range of 1.5 to 2.5x, indicating a healthy balance sheet.

Operational Highlights

Astec Industries' backlog at quarter-end was $449.5 million, representing a sequential increase of $68.7 million, driven by the addition of TerraSource. The company expects most synergies from the TerraSource acquisition to materialize in 2026. With a strong balance sheet, supported by substantial liquidity, Astec Industries is well-positioned to continue delivering consistent profitability and growth. The company's commitment to innovating its products and technologies to help customers achieve their efficiency and cost reduction goals is also noteworthy.

3. NewsRoom

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Astec Industries, Inc. (NASDAQ: ASTE) to Participate in Stephens Investment Conference (NASH2025) on November 18, 2025

Nov -11

Source: globenewswire.com

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Astec Industries, Inc. (NASDAQ: ASTE) to Participate in Baird 2025 Global Industrial Conference on November 13, 2025

Nov -06

Source: globenewswire.com

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Astec Industries, Inc. (ASTE) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Astec Reports Third Quarter 2025 Results

Nov -05

Source: globenewswire.com

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Y Intercept Hong Kong Ltd Buys Shares of 31,985 Astec Industries, Inc. $ASTE

Nov -03

Source: defenseworld.net

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Astec Industries, Inc. Announces the Company's Third Quarter 2025 Conference Call on November 5, 2025, at 8:30 A.M. Eastern Time

Oct -20

Source: globenewswire.com

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Astec Industries: Shares Still Offer More Upside Despite Revenue Falling

Sep -26

Source: seekingalpha.com

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Astec Industries, Inc. (ASTE) Q2 2025 Earnings Call Transcript

Aug -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.84%)

6. Segments

Infrastructure Solutions

Expected Growth: 1.8%

Astec Industries' Infrastructure Solutions segment growth of 1.8% is driven by increasing demand for road construction and maintenance, government investments in infrastructure development, and rising adoption of sustainable and energy-efficient solutions. Additionally, the company's focus on innovation, product diversification, and strategic acquisitions are contributing to its growth momentum.

Materials Solutions

Expected Growth: 1.9%

Astec Industries' Materials Solutions segment growth of 1.9% is driven by increasing demand for asphalt and concrete equipment, infrastructure investments, and growing adoption of sustainable construction practices. Additionally, the company's focus on innovation, product diversification, and strategic acquisitions contribute to its growth momentum.

Corporate

Expected Growth: 2.1%

Astec Industries' corporate segment growth of 2.1% is driven by increasing demand for infrastructure development, government investments in road construction, and rising adoption of sustainable energy solutions. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth.

7. Detailed Products

Asphalt Plants

Astec Industries, Inc. offers a range of asphalt plants that provide high-quality hot mix asphalt for road construction and repair projects.

Concrete Plants

Astec Industries, Inc. provides concrete plants that are designed to produce high-quality concrete for various construction projects.

Crushing and Screening Equipment

Astec Industries, Inc. offers a range of crushing and screening equipment for mining, quarrying, and recycling applications.

Wood Pellet Plants

Astec Industries, Inc. provides wood pellet plants that convert biomass into renewable energy sources.

Storage and Transfer Equipment

Astec Industries, Inc. offers storage and transfer equipment for bulk materials handling and storage.

Thermal Processing Equipment

Astec Industries, Inc. provides thermal processing equipment for drying, cooling, and calcining applications.

8. Astec Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Astec Industries, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative products and services.

Bargaining Power Of Customers

Astec Industries, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Astec Industries, Inc. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's size and scale of operations mitigate this risk to some extent.

Threat Of New Entrants

The capital-intensive nature of Astec Industries, Inc.'s business, combined with the need for specialized expertise and equipment, creates barriers to entry for new entrants.

Intensity Of Rivalry

Astec Industries, Inc. operates in a highly competitive industry with several established players, leading to intense rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.28%
Debt Cost 10.97%
Equity Weight 88.72%
Equity Cost 10.97%
WACC 10.97%
Leverage 12.72%

11. Quality Control: Astec Industries, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Astec Industries

A-Score: 5.1/10

Value: 5.6

Growth: 3.4

Quality: 5.7

Yield: 2.0

Momentum: 8.5

Volatility: 5.7

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Manitowoc

A-Score: 4.4/10

Value: 8.5

Growth: 4.3

Quality: 4.3

Yield: 0.0

Momentum: 5.5

Volatility: 3.7

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Manitex International

A-Score: 3.8/10

Value: 4.6

Growth: 4.7

Quality: 3.5

Yield: 0.0

Momentum: 6.0

Volatility: 4.0

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Titan International

A-Score: 3.7/10

Value: 6.6

Growth: 4.7

Quality: 2.3

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

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Hydrofarm Holdings

A-Score: 2.8/10

Value: 10.0

Growth: 2.3

Quality: 2.7

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

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Columbus McKinnon

A-Score: 2.6/10

Value: 5.2

Growth: 2.1

Quality: 3.4

Yield: 2.0

Momentum: 0.5

Volatility: 2.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

45.22$

Current Price

45.22$

Potential

-0.00%

Expected Cash-Flows