Astec (ASTE) AI Stock Analysis

• Market Cap: $1.34B
• Dividend Yield: 1.14%
• Average Volume (3M): 170.62K
• Price to Earnings (P/E): 27.8
• Beta (1Y): 1.42
• Revenue Growth: 6.66%
• EPS Growth: N/A
• Country: US
• Employees: 4,148
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 1.06
• Shares Outstanding: 22,875,841
• 10 Day Avg. Volume: 159,959
• 30 Day Avg. Volume: 170,615
• PEG Ratio: 6.24
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 29.48
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: 15.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $64.00 ▲(45.45% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven mainly by improved TTM operating performance and positive earnings-call signals (raised guidance, stronger margins and backlog). Technicals also support the view with a clear uptrend. The main offsets are higher balance-sheet leverage and a relatively expensive valuation (P/E ~27.8) with a low dividend yield (~0.89%).

Positive Factors

Rebound in revenue and margins

Trailing-twelve-month rebound to ~$1.41B revenue and materially improved margins signals stronger pricing, better product mix and improved operational execution. That sustained margin expansion supports durable cash generation, aftermarket growth and reinvestment capacity over the next several quarters.

Backlog growth from strategic M&A

A larger backlog driven by the TerraSource deal increases multi-quarter revenue visibility and expands systems and parts capability. Strategic acquisitions diversify offerings, boost aftermarket parts sales mix and create recurring revenue that supports more stable medium-term cash flows and margin resilience.

Improved operating and free cash flow

Meaningful improvement in operating and free cash flow versus prior weak years increases financial flexibility to fund organic investments, small acquisitions and working capital. Stronger FCF reduces reliance on external financing and supports durable capital allocation over the next 2–6 months.

Negative Factors

Rising leverage

Notable increase in leverage and higher absolute debt levels reduce balance-sheet flexibility and increase interest expense sensitivity. If end-market demand softens, elevated leverage constrains the company's ability to invest, repurchase stock or absorb cyclical revenue declines without altering capital plans.

Cyclical, volatile earnings history

The business remains tied to lumpy equipment cycles and capital spending, producing material year-to-year swings in profitability. That cyclical volatility makes cash conversion and forecasting less reliable and increases execution risk for sustaining margins and returns through weaker demand periods.

End-market softness and tariff risk

Management flagged weak demand in Forestry and Mobile Paving plus tariff uncertainty. Structural segment weakness and tariff-driven input or supply risks can depress equipment orders, squeeze margins and prolong recovery in affected end markets, pressuring medium-term revenue and profitability.

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, 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 Money

Astec 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 Financial Statement Overview

Summary

TTM results show a meaningful rebound in revenue (~$1.41B) and profitability (gross margin ~27.2%, EBIT margin ~7.2%, net margin ~3.5%) versus a very weak 2024, supported by improved free cash flow (~$45.5M). Offsetting this, leverage has risen notably (debt ~$319.6M; debt-to-equity ~0.53) and cash conversion is mixed (TTM FCF ~73% of net income) with historically uneven cash generation.

Income Statement

Profitability has meaningfully improved in TTM (Trailing-Twelve-Months): revenue rose to ~$1.41B with stronger margins (gross margin ~27.2%, EBIT margin ~7.2%, net margin ~3.5%) versus a very weak 2024 (near-breakeven net margin ~0.3%). The multi-year picture is volatile—2022 posted a slight loss and 2024 saw a sharp profit compression—so earnings quality looks cyclical, but the latest TTM rebound is a clear positive.

Balance Sheet

The balance sheet shows a notable increase in leverage in TTM, with debt up to ~$319.6M and debt-to-equity at ~0.53 (well above 2021–2024 levels). Equity has grown (to ~$681.6M) and returns improved in TTM (return on equity ~7.3%) from 2024’s very low level, but the faster debt build adds risk and reduces financial flexibility if end-market demand softens.

Cash Flow

Cash generation improved in TTM with operating cash flow of ~$61.4M and free cash flow of ~$45.5M (free cash flow up ~22%), a major step up from 2024’s ~$2.5M free cash flow. However, cash flow conversion remains uneven across years (notably negative operating and free cash flow in 2022), and in TTM free cash flow covers only ~73% of net income, suggesting profitability is not fully translating into cash.

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	26.20M	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	61.40M	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

• Technical Analysis Sentiment: Positive
• Last Price: 44.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 55.05, below the 50-day MA of 50.16, and below the 200-day MA of 45.08, indicating a bullish trend. The MACD of 2.62 indicates Positive momentum. The RSI at 66.62 is Neutral, neither overbought nor oversold. The STOCH value of 55.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASTE.

Astec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNN	70 Outperform	$1.42B	20.10	14.61%	1.24%	11.41%	13.05%
ASTE	68 Neutral	$1.34B	27.79	7.37%	1.14%	6.66%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CMCO	58 Neutral	$551.51M	89.83	0.44%	1.59%	-2.36%	-73.77%
TWI	58 Neutral	$674.05M	-109.11	-1.05%	―	-2.75%	22.20%
WNC	58 Neutral	$429.43M	2.14	84.07%	3.59%	-22.95%	―
HY	51 Neutral	$679.92M	255.67	0.51%	4.61%	-8.30%	-98.18%