Astec (ASTE)
NASDAQ:ASTE
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Astec
(NASDAQ:ASTE)
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Rating:67Neutral
Price Target:
$58.00
▼(-5.20% Downside)
Action:ReiteratedDate:02/25/26
Score is driven primarily by improved TTM profitability and cash generation, tempered by higher leverage and uneven multi-year cash conversion. Technicals are supportive with a clear uptrend, while valuation is a moderate headwind due to a higher P/E and low yield. Earnings-call tone and 2026 EBITDA guidance are constructive but include identifiable end-market and execution risks.
Positive Factors
Recurring Parts & Aftermarket Revenue
A large and growing parts & service business (30.7% of sales, double-digit growth) provides recurring, higher-margin revenue tied to installed base utilization. This stabilizes top-line through cycles, supports margin resilience, and improves long-term cash generation and customer stickiness.
Negative Factors
Rising Leverage
A notable increase in leverage reduces financial flexibility and raises interest and refinancing exposure if demand softens. Higher debt levels constrain capital allocation, elevate downside risk in downturns, and can limit the company's ability to pursue opportunistic investments without further funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Parts & Aftermarket Revenue
A large and growing parts & service business (30.7% of sales, double-digit growth) provides recurring, higher-margin revenue tied to installed base utilization. This stabilizes top-line through cycles, supports margin resilience, and improves long-term cash generation and customer stickiness.
Read all positive factors
Astec (ASTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.40B
Dividend Yield1.14%
Average Volume (3M)254.30K
Price to Earnings (P/E)25.6
Beta (1Y)1.43
Revenue Growth6.66%
EPS GrowthN/A
CountryUS
Employees4,148
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)1.06
Shares Outstanding22,919,697
10 Day Avg. Volume149,185
30 Day Avg. Volume254,304
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.45
Price to Sales (P/S)0.70
P/FCF Ratio46.13
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue1.17
Enterprise Value/Gross Profit4.36
Enterprise Value/Ebitda14.42
Forecast
1Y Price Target
$66.00Price Target Upside7.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.74
Revenue Forecast (FY)$1.59B
Astec Business Overview & Revenue Model
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, Infra...
How the Company Makes Money
Astec primarily makes money by selling capital equipment and engineered systems used in asphalt road construction and aggregates processing. A significant portion of revenue comes from (1) new equipment sales—large, project- and replacement-driven...
Astec Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call communicated multiple positive operating and financial developments: record quarterly sales, strong full-year adjusted EBITDA at the high end of guidance, significant adjusted EPS growth, robust parts growth, meaningful backlog increase, accretive acquisitions, margin expansion across segments, and a solid liquidity position. Challenges were acknowledged—most notably softness in forestry and mobile paving equipment, TerraSource inventory/fill-rate work, working capital timing, and reliance on continued infrastructure funding—but management provided clear remediation plans, integration progress, and conservative 2026 guidance that factors in risks. On balance, the positive results, guidance lift, strategic acquisitions, and tangible margin/cash generation improvements outweigh the near-term operational headwinds.Positive Updates
Record Quarterly and Full-Year Net Sales
Recorded a company-high fourth-quarter net sales of $400.6 million; full-year net sales increased 8.1% year-over-year driven by organic growth and acquisitions (TerraSource).
Negative Updates
Softness in Forestry and Mobile Paving Equipment
Forestry and mobile paving equipment were challenged during 2025, with forestry notably down during the last 12–18 months due to weaker paper & pulp demand and limited storm-related activity; backlog for these categories remains at the lower end of historical ranges despite recent Q4 increases.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Full-Year Net Sales
Recorded a company-high fourth-quarter net sales of $400.6 million; full-year net sales increased 8.1% year-over-year driven by organic growth and acquisitions (TerraSource).
Read all positive updates
Company Guidance
Astec guided full-year 2026 adjusted EBITDA of $170–$190 million, an effective tax rate of 25–28%, capital expenditures of $40–$50 million, depreciation & amortization of $55–$65 million, and quarterly adjusted SG&A of $70–$80 million. For context, 2025 results included adjusted EBITDA of $140.7M (10.0% margin, +140 bps YoY), Q4 net sales of $400.6M and Q4 adjusted EBITDA of $44.7M (11.2% margin), full-year net sales +8.1%, adjusted EPS of $3.33 for the year and $1.06 in Q4, parts sales of $432.7M (+11.5% YoY; 30.7% of sales) with Q4 parts +19.7% YoY, backlog ~ $514M (seq. +14.4%, YoY +22.5%) with a book‑to‑bill of 116%, total liquidity of $314.7M (cash $70M, available credit $244.7M) and net debt/adjusted EBITDA of ~2x.Astec Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.41B | 1.31B | 1.34B | 1.27B | 1.10B |
| Gross Profit | 374.20M | 327.90M | 331.10M | 264.10M | 249.50M |
| EBITDA | 107.90M | 51.40M | 115.00M | 69.90M | 61.30M |
| Net Income | 38.80M | 4.30M | 33.50M | -100.00K | 15.80M |
Balance Sheet | |||||
| Total Assets | 1.37B | 1.04B | 1.06B | 1.01B | 905.80M |
| Cash, Cash Equivalents and Short-Term Investments | 72.00M | 91.30M | 68.90M | 66.70M | 142.70M |
| Total Debt | 319.60M | 118.30M | 83.10M | 87.70M | 2.90M |
| Total Liabilities | 685.60M | 406.00M | 405.60M | 387.50M | 254.50M |
| Stockholders Equity | 681.60M | 637.80M | 653.40M | 626.90M | 650.80M |
Cash Flow | |||||
| Free Cash Flow | 21.50M | 2.50M | -6.30M | -114.60M | -12.70M |
| Operating Cash Flow | 61.40M | 23.00M | 27.80M | -73.90M | 7.40M |
| Investing Cash Flow | -287.80M | -18.00M | -12.90M | -53.20M | -18.40M |
| Financing Cash Flow | 206.10M | 24.40M | -18.30M | 60.10M | -12.10M |
Astec Technical Analysis
Positive
61.18
Price Trends
55.87
Positive
50.73
Positive
47.51
Positive
Market Momentum
0.60
Negative
65.65
Neutral
89.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASTE, the sentiment is Positive. The current price of 61.18 is above the 20-day moving average (MA) of 54.01, above the 50-day MA of 55.87, and above the 200-day MA of 47.51, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 65.65 is Neutral, neither overbought nor oversold. The STOCH value of 89.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASTE.
Astec Risk Analysis
Astec disclosed 31 risk factors in its most recent earnings report. Astec reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Astec Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.40B | 25.56 | 5.79% | 1.14% | 6.66% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.16B | 29.53 | 14.01% | 1.24% | 11.41% | 13.05% | |
59 Neutral | $647.13M | -8.76 | -11.65% | 4.61% | -8.30% | -98.18% | |
58 Neutral | $371.21M | 1.70 | 53.71% | 3.59% | -22.95% | ― | |
52 Neutral | $447.76M | 20.66 | 0.66% | 1.59% | -2.36% | -73.77% | |
45 Neutral | $541.00M | -2.23 | -11.61% | ― | -2.75% | 22.20% |
* Industrials Sector Average
ASTE
Astec
61.18
27.79
83.22%
CMCO
Columbus Mckinnon
15.58
2.84
22.33%
LNN
Lindsay
111.91
-13.45
-10.73%
TWI
Titan International
8.45
1.32
18.51%
WNC
Wabash National
9.18
-0.32
-3.36%
HY
Hyster-Yale Materials Handling
36.15
-0.05
-0.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.