Astec Industries, Inc. (ASTE)
NASDAQ:ASTE
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Astec
(NASDAQ:ASTE)
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Rating:53Neutral
Price Target:
$48.00
▼(-19.31% Downside)
Action:Reiterated
Date:05/09/26
ASTE scores as below-average overall due to weak technicals and very stretched valuation, which outweigh the improving but still thin financial profitability. The earnings call adds support via reaffirmed guidance, strong backlog/order trends, and solid near-term free cash flow, but margin pressure and rising leverage keep the risk profile elevated.
Positive Factors
Strong backlog and order flow
A materially larger backlog and sustained book-to-bill >100% give multi-quarter revenue visibility and support production planning, pricing and capacity utilization. This reduces near-term top-line volatility and underpins durable revenue conversion over the next several quarters.
Negative Factors
Margin pressure from elevated input costs
Persistent tariffs, freight and duty inflation compress gross and EBITDA margins on capital-equipment projects where pricing adjustments lag. These structural input-cost headwinds can depress profitability for multiple quarters and reduce operating leverage even as volumes recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong backlog and order flow
A materially larger backlog and sustained book-to-bill >100% give multi-quarter revenue visibility and support production planning, pricing and capacity utilization. This reduces near-term top-line volatility and underpins durable revenue conversion over the next several quarters.
Read all positive factors
Astec (ASTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.12B
Dividend Yield1.14%
Average Volume (3M)221.29K
Price to Earnings (P/E)237.5
Beta (1Y)1.38
Revenue Growth11.47%
EPS Growth69.53%
CountryUS
Employees4,148
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)1.13
Shares Outstanding22,992,630
10 Day Avg. Volume239,790
30 Day Avg. Volume221,294
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 Cap1.26
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit3.65
Enterprise Value/Ebitda12.84
Forecast
1Y Price Target
$66.00Price Target Upside10.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.56
Revenue Forecast (FY)$1.62B
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presents a generally positive operational and top-line story: strong revenue growth (+20.3% YoY), expanding backlog (+36% YoY), significant Materials Solutions momentum, healthy free cash flow ($32.6M) and successful acquisition integrations. Offsetting these positives are near-term profitability pressures driven by tariffs, freight/duty inflation, elevated trade-show costs, mix/timing effects and a notable quarter-on-quarter margin decline (310 bps) that reduced adjusted EPS materially. Management maintained full-year adjusted EBITDA guidance and emphasized backlog and pricing actions to mitigate cost pressures, signaling confidence in recovery later in the year.Positive Updates
Strong Revenue Growth
Consolidated net sales increased 20.3% year-over-year for the quarter; trailing 12-month net sales grew 11.5%.
Negative Updates
Quarterly Profitability Pressure
Q1 adjusted EBITDA declined $4.9 million versus prior-year quarter; adjusted EBITDA margin contracted by 310 basis points year-over-year for the quarter; adjusted EPS decreased to $0.54 from $0.91.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Consolidated net sales increased 20.3% year-over-year for the quarter; trailing 12-month net sales grew 11.5%.
Read all positive updates
Company Guidance
Management maintained full‑year 2026 guidance for adjusted EBITDA of $170–$190 million and an effective tax rate of 25–28%, with capital expenditures of $40–$50 million, depreciation & amortization of $55–$65 million, quarterly adjusted SG&A of $70–$80 million and interest expense of approximately $7 million. At quarter‑end liquidity totaled $73.4 million in cash and $194.1 million in available credit (total $267.5 million), net debt to adjusted EBITDA was ~2.3x (within the 1.5–2.5x target) after a roughly $70 million draw for the CWMF acquisition, and management expects year‑end leverage near ~1.7x at the guidance midpoint. Management said it is keeping guidance despite Q1 headwinds (Q1 adjusted EBITDA $30.3M, 7.6% margin; free cash flow $32.6M; adjusted EPS $0.54) citing strong backlog ($549M, +36% YoY), implied orders of $397M (+27% YoY) and book‑to‑bill ratios >100% in both segments as support.Astec Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.48B | 1.41B | 1.31B | 1.34B | 1.27B | 1.10B |
| Gross Profit | 385.20M | 374.20M | 327.90M | 331.10M | 264.10M | 249.50M |
| EBITDA | 109.60M | 107.90M | 51.40M | 115.00M | 69.90M | 61.30M |
| Net Income | 25.80M | 38.80M | 4.30M | 33.50M | -100.00K | 15.80M |
Balance Sheet | ||||||
| Total Assets | 1.43B | 1.37B | 1.04B | 1.06B | 1.01B | 905.80M |
| Cash, Cash Equivalents and Short-Term Investments | 76.90M | 72.00M | 91.30M | 68.90M | 66.70M | 142.70M |
| Total Debt | 365.50M | 319.60M | 118.30M | 83.10M | 87.70M | 2.90M |
| Total Liabilities | 750.80M | 685.60M | 406.00M | 405.60M | 387.50M | 254.50M |
| Stockholders Equity | 678.10M | 681.60M | 637.80M | 653.40M | 626.90M | 650.80M |
Cash Flow | ||||||
| Free Cash Flow | 37.20M | 21.50M | 2.50M | -6.30M | -114.60M | -12.70M |
| Operating Cash Flow | 82.10M | 61.40M | 23.00M | 27.80M | -73.90M | 7.40M |
| Investing Cash Flow | -359.80M | -287.80M | -18.00M | -12.90M | -53.20M | -18.40M |
| Financing Cash Flow | 260.10M | 206.10M | 24.40M | -18.30M | 60.10M | -12.10M |
Astec Technical Analysis
Negative
59.49
Price Trends
55.23
Negative
54.15
Negative
49.84
Negative
Market Momentum
-2.78
Positive
36.84
Neutral
27.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASTE, the sentiment is Negative. The current price of 59.49 is above the 20-day moving average (MA) of 54.60, above the 50-day MA of 55.23, and above the 200-day MA of 49.84, indicating a bearish trend. The MACD of -2.78 indicates Positive momentum. The RSI at 36.84 is Neutral, neither overbought nor oversold. The STOCH value of 27.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $1.13B | 29.53 | 11.28% | 1.24% | -1.70% | -22.14% | |
53 Neutral | $1.12B | 237.51 | 3.82% | 1.14% | 11.47% | 69.53% | |
52 Neutral | $421.32M | 20.66 | 0.66% | 1.59% | 2.13% | -36.14% | |
49 Neutral | $596.10M | -4.75 | -20.01% | 4.61% | -12.21% | -198.36% | |
48 Neutral | $474.42M | -4.57 | -16.21% | ― | -0.63% | -537.47% | |
43 Neutral | $302.21M | -1.94 | -17.32% | 3.59% | -19.16% | -5.54% |
* Industrials Sector Average
ASTE
Astec
48.58
10.24
26.72%
CMCO
Columbus Mckinnon
14.94
-1.20
-7.42%
LNN
Lindsay
109.19
-27.12
-19.90%
TWI
Titan International
7.35
0.34
4.85%
WNC
Wabash National
7.77
-0.61
-7.25%
HY
Hyster-Yale Materials Handling
33.88
-4.15
-10.91%
Astec Corporate Events
Executive/Board ChangesShareholder Meetings
Astec Shareholders Back Board Elections and Governance Plans
Positive
Apr 27, 2026
At its Annual Meeting of Shareholders held on April 24, 2026, Astec Industries, Inc. shareholders elected directors Nalin Jain and Jaco G. van der Merwe to three‑year terms on the company’s board. Investors also ratified Deloitte Touc...
Business Operations and StrategyExecutive/Board Changes
Astec Appoints New Group President for Infrastructure Solutions
Positive
Apr 20, 2026
On April 20, 2026, Astec Industries announced that Chad Hartley will join the company as Group President – Infrastructure Solutions and a member of the Executive Leadership Team, effective May 11, 2026. Hartley brings extensive leadership ex...
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.