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Astec Industries, Inc. (ASTE)
NASDAQ:ASTE
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Astec
(NASDAQ:ASTE)
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Rating:66Neutral
Price Target:
$44.00
▲(0.00% Upside)
Astec's strong earnings call performance and solid financial fundamentals are the primary drivers of its stock score. However, bearish technical indicators and cash flow challenges temper the overall outlook. The stock is fairly valued, with a reasonable P/E ratio and modest dividend yield.
Positive Factors
Revenue Growth
Astec's strong revenue growth indicates robust demand for its products, enhancing its market position and supporting long-term expansion.
Successful Acquisition Integration
The successful integration of TerraSource boosts Astec's product offerings and operational efficiency, strengthening its competitive edge.
Infrastructure Solutions Segment Growth
Growth in the Infrastructure Solutions segment reflects strong demand for core products, supporting sustained profitability and market leadership.
Negative Factors
Cash Flow Challenges
Declining free cash flow may hinder Astec's ability to invest in growth opportunities and manage financial obligations effectively.
Soft Demand in Certain Segments
Weak demand in specific segments could limit revenue growth and profitability, affecting overall business performance.
Tariff Uncertainty
Tariff uncertainties can disrupt supply chains and increase costs, impacting Astec's operational efficiency and profit margins.
Astec (ASTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.09B
Dividend Yield1.14%
Average Volume (3M)179.14K
Price to Earnings (P/E)22.8
Beta (1Y)1.43
Revenue Growth6.66%
EPS GrowthN/A
CountryUS
Employees4,148
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)0.47
Shares Outstanding22,875,841
10 Day Avg. Volume190,862
30 Day Avg. Volume179,144
Financial Highlights & Ratios
PEG Ratio-2.05
Price to Book (P/B)1.20
Price to Sales (P/S)0.59
P/FCF Ratio306.42
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue0.99
Enterprise Value/Gross Profit3.64
Enterprise Value/Ebitda10.39
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Astec Business Overview & Revenue Model
Company DescriptionAstec 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.
How the Company Makes MoneyAstec generates revenue primarily through the sale of its equipment and machinery, along with aftermarket parts and services. The company's revenue model is diversified across several key streams, including direct sales of machinery to contractors and construction companies, as well as service contracts and parts sales that provide ongoing support and maintenance for their products. Significant partnerships with major construction firms and infrastructure projects enhance Astec's market presence and contribute to its earnings. Additionally, the company benefits from cyclical demand in the construction industry, which can lead to increased sales during periods of infrastructure development and investment.
Astec Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
Astec Industries demonstrated strong financial performance with significant increases in net sales, EBITDA, and earnings per share. The successful integration of TerraSource and growth in the Infrastructure Solutions segment are positive highlights. However, challenges remain with soft demand in certain segments and ongoing tariff uncertainties.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Net sales increased by 20.1% year-over-year, adjusted EBITDA grew by 55.7%, and adjusted earnings per share increased by 30.6%.
Successful Integration of TerraSource
The acquisition of TerraSource added $64.1 million to the backlog and contributed to a 670 basis point increase in parts sales mix.
Infrastructure Solutions Segment Growth
This segment saw a 17.1% increase in net sales due to strong demand for asphalt and concrete plants, contributing to a 290 basis point improvement in adjusted operating margin.
Improved EBITDA Margins
Adjusted EBITDA margins increased by 170 basis points, reaching the best margin since the third quarter of 2017.
Raising Guidance
The company raised the lower end of their full-year adjusted EBITDA guidance from $123 million to $132 million.
Negative Updates
Soft Demand in Forestry and Mobile Paving
This segment faced headwinds due to challenging end market conditions, attributed to high interest rates and a global slowdown.
Materials Solutions Segment Margin Decline
Adjusted EBITDA margin for the Materials Solutions segment declined by 170 basis points due to a previous one-time benefit from a litigation reserve release.
Tariff Uncertainty
Continued fluctuations and uncertainty in tariffs present challenges, although mitigation strategies are in place.
Company Guidance
During the Astec Industries Third Quarter 2025 Earnings Call, the company provided updated guidance with a notable increase in the lower end of their full-year adjusted EBITDA guidance from $123 million to $132 million, while maintaining the upper range at $142 million. They reported a strong quarter with net sales increasing by 20.1%, adjusted EBITDA rising by 55.7% to $27.1 million, and adjusted earnings per share reaching $0.47, a 30.6% increase year-over-year. The adjusted EBITDA margin improved by 170 basis points to 7.7%, and the backlog grew to $449.5 million, aided by the acquisition of TerraSource. The company highlighted the opportunities presented by the ongoing federal highway bill and increased demand for construction materials, while also noting challenges such as tariff fluctuations. They announced a focus on operational excellence and highlighted the successful integration of TerraSource, which has contributed to improvements in their parts sales mix and overall performance.Astec Financial Statement Overview
Summary
Astec demonstrates a solid financial performance with consistent revenue growth and improved profitability margins. The balance sheet remains strong with manageable leverage and a robust equity base. However, cash flow challenges, particularly in free cash flow generation, highlight areas for improvement.Income Statement
Astec's income statement shows a solid performance with a consistent revenue growth trend, particularly in the TTM period, where revenue grew by 4.48%. The gross profit margin improved to 26.87% in the TTM, indicating effective cost management. However, the net profit margin remains relatively low at 3.50%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have shown positive trends, reflecting operational efficiency gains.Balance Sheet
The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.48 in the TTM, indicating manageable leverage. The return on equity has improved to 7.07%, showcasing enhanced shareholder returns. The equity ratio of 49.60% suggests a strong equity base, providing financial stability. However, the increase in total debt warrants monitoring.Cash Flow
Astec's cash flow statement reveals challenges with free cash flow, which declined by 29.57% in the TTM. The operating cash flow to net income ratio is relatively low at 0.19, indicating potential issues in converting earnings into cash. However, the free cash flow to net income ratio of 0.93 in the TTM suggests that the company is generating cash relative to its net income, albeit with some volatility.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.37B | 1.31B | 1.34B | 1.27B | 1.10B | 1.02B |
| Gross Profit | 372.30M | 327.90M | 331.10M | 264.10M | 249.50M | 237.60M |
| EBITDA | 130.50M | 51.40M | 115.00M | 69.90M | 61.30M | 76.00M |
| Net Income | 47.90M | 4.30M | 33.50M | -100.00K | 15.80M | 46.00M |
Balance Sheet | ||||||
| Total Assets | 1.35B | 1.04B | 1.06B | 1.01B | 905.80M | 848.20M |
| Cash, Cash Equivalents and Short-Term Investments | 71.80M | 91.30M | 68.90M | 66.70M | 142.70M | 162.90M |
| Total Debt | 352.00M | 118.30M | 83.10M | 87.70M | 2.90M | 2.00M |
| Total Liabilities | 680.00M | 406.00M | 405.60M | 387.50M | 254.50M | 205.20M |
| Stockholders Equity | 668.90M | 637.80M | 653.40M | 626.90M | 650.80M | 642.50M |
Cash Flow | ||||||
| Free Cash Flow | 45.40M | 2.50M | -6.30M | -114.60M | -12.70M | 126.10M |
| Operating Cash Flow | 61.90M | 23.00M | 27.80M | -73.90M | 7.40M | 141.50M |
| Investing Cash Flow | -264.40M | -18.00M | -12.90M | -53.20M | -18.40M | -20.90M |
| Financing Cash Flow | 217.30M | 24.40M | -18.30M | 60.10M | -12.10M | -10.40M |
Astec Technical Analysis
Positive
44.00
Price Trends
45.04
Positive
45.93
Positive
42.25
Positive
Market Momentum
0.37
Negative
58.93
Neutral
85.25
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 44 is below the 20-day moving average (MA) of 45.87, below the 50-day MA of 45.04, and above the 200-day MA of 42.25, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 58.93 is Neutral, neither overbought nor oversold. The STOCH value of 85.25 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 30 risk factors in its most recent earnings report. Astec reported the most risks in the "Finance & Corporate" 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $553.88M | 144.57 | 0.44% | 1.59% | -2.36% | -73.77% | |
68 Neutral | $1.31B | 18.53 | 14.61% | 1.24% | 11.41% | 13.05% | |
66 Neutral | $1.09B | 22.79 | 7.37% | 1.14% | 6.66% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $409.22M | 1.70 | 84.07% | 3.59% | -22.95% | ― | |
58 Neutral | $548.70M | -88.82 | -1.05% | ― | -2.75% | 22.20% | |
51 Neutral | $581.32M | 222.54 | 0.51% | 4.61% | -8.30% | -98.18% |
* Industrials Sector Average
ASTE
Astec
47.60
16.68
53.95%
CMCO
Columbus Mckinnon
19.28
-15.08
-43.89%
LNN
Lindsay
126.64
0.80
0.64%
TWI
Titan International
8.58
1.99
30.20%
WNC
Wabash National
10.10
-6.19
-37.99%
HY
Hyster-Yale Materials Handling
32.63
-16.73
-33.89%
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.