Slide 1: Third Quarter Earnings
Third Quarter Earnings November 6, 2024 BUILT TO CONNECT
Slide 2: Safe Harbor
Safe Harbor Certain statements contained in this presentation contain forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among o
Slide 3: Third Quarter Highlights
Third Quarter Highlights JACO VAN DER MERWE CEO AND PRESIDENT 3
Slide 4: Welcoming Brian Harris, Astec's New CFO
Welcoming Brian Harris, • Brian previously served for 10 years as Executive Vice President Astec’s New CFO and Chief Financial Officer of Summit Materials, Inc. (NYSE: SUM), a leading producer of aggregates, ready mix, concrete and asphalt • Prior to his role at Summit, Brian served as Executive Vic
Slide 5: Third Quarter Overview
Third Quarter Overview Delivered $291.4M in net sales, a decrease of 3.9% compared to 1 2023, and gross margin of 22.9%, a decrease of 10 bps compared to prior year $291.4M 2 Positive Free Cash Flow driven by continued focus on working capital management NET SALES Infrastructure Solutions — The infr
Slide 6: Strategic Roadmap for 2024 and Beyond
Strategic Roadmap for 2024 and Beyond STRATEGIC PILLARS Develop high performance talent through competitive market-based compensation and benefits, ongoing leadership and technical skills EMPOWERED, ENABLED development and a & ENGAGED EMPLOYEES values-based culture Being an employer of choice, givin
Slide 7: Business Dynamics and Observations
Business Dynamics and Observations Infrastructure Solutions • Infrastructure Investment Jobs Act (IIJA) bill: Approximately 50% of funds committed and only 27% disbursed. 2025/2026 expected to continue at a high level (*) • Texas Governor announced record $148B, ten-year investment for state transpo
Slide 8: Backlog
Backlog BACKLOG ($M) INFRASTRUCTURE SOLUTIONS BACKLOG ($M) MATERIALS SOLUTIONS BACKLOG ($M) 8
Slide 9: Implied Orders
Implied Orders IMPLIED ORDERS ($M) INFRASTRUCTURE SOLUTIONS IMPLIED ORDERS ($M) MATERIALS SOLUTIONS IMPLIED ORDERS ($M) Implied orders are calculated by taking current period backlog minus prior period backlog plus current period sales 9
Slide 10: New Products
New Products Astec ReMixTM A revolution in sustainable road construction. Turns reclaimed asphalt pavement stockpiles into usable cold recycle mix 10
Slide 11: Sustainability In Our Products
Sustainability In Our Products RX-405 COLD PLANNER The RX-405 utilizes a Stage 5 engine to minimize emissions while facilitating the reclaiming and reuse of asphalt materials from existing roads. DOUBLE BARREL® XHR The Double Barrel XHR continues to lead the industry by efficiently producing asphalt
Slide 12: Third Quarter Financial Results
BRIAN HARRIS Third Quarter CHIEF FINANCIAL OFFICER Financial Results HEINRICH JONKER VICE PRESIDENT FINANCE – INFRASTRUCTURE SOLUTIONS 12
Slide 13: 3Q24 Financial Results
3Q24 Financial Results ($M, except per share and percentage data) NET SALES ADJ. EBITDA1 ADJ. EBITDA MARGIN1 ADJ. EPS1 (3.9%) 74.0% 270bps 3200% • Domestic sales decreased $18.4M or • Adj. EBITDA margin increased largely due to positive net volume, mix and • Excludes transformation and 8.0% pricing,
Slide 14: Infrastructure Solutions
Infrastructure Solutions 3Q24 Financial Performance ($M, except percentage data) NET SALES SEGMENT OPERATING SEGMENT OPERATING PERFORMANCE DRIVERS ADJ. EBITDA ADJ. EBITDA MARGIN • Sales increased mainly due to strong performance from equipment sales and 1.1% 17.3% 140 bps pricing actions, as the inf
Slide 15: Materials Solutions
Materials Solutions PERFORMANCE DRIVERS 3Q24 Financial Performance ($M, except percentage data) • Sales decreased mainly due to lower NET SALES SEGMENT OPERATING SEGMENT OPERATING equipment sales, attributable to finance ADJ. EBITDA ADJ. EBITDA MARGIN capacity constraints with contractors and dealer
Slide 16: 3Q24 Adjusted EBITDA Bridge
3Q24 Adjusted EBITDA1 Bridge ($M) 1 See appendix for the reconciliation of GAAP to Non-GAAP measures. 16
Slide 17: Maintain Strong, Flexible Balance Sheet with Ample Liquidity
Maintain Strong, Flexible Balance Sheet with Ample Liquidity TOTAL LIQUIDITY ($M) LIQUIDITY ($M) 9/30/24 Cash and Cash Equivalents $52.7 Available Credit $142.4 Total Available Liquidity $195.1 COMMENTARY • Operating activities were a $22.5M source of cash for Q3 2024 • Available credit from a $250M
Slide 18: 3Q 2024 Summary
3Q 2024 Summary Focused on delivering consistent results for our customers and driving further cost efficiencies to enhance value creation for all stakeholders Despite continued Infrastructure Solutions challenging market Infrastructure construction market remains strong with healthy dynamics, busin
Slide 19: Trusted source and growth drivers
Trusted source — High-quality solutions and strong global 1 brand recognition to facilitate construction from Rock to Road™ Favorable Customer Sentiment — Customer backlogs 2 stretching into 2025 3 Operational Excellence — Benefits from transformation efforts still to come. Growth Drivers — 4 a) New
Slide 20: Questions & Answers
Questions & Answers STEVE ANDERSON SVP OF ADMINISTRATION & INVESTOR RELATIONS Phone: 423-553-5934 Email: sanderson@astecindustries.com 20
Slide 21: Appendix
APPENDIX BUILT TO CONNECT 21
Slide 22: GAAP vs Non-GAAP Adjusted EPS Reconciliations
GAAP vs Non-GAAP Adjusted EPS Reconciliations (in millions, except per share amounts; unaudited) 22
Slide 23: EBITDA and Adjusted EBITDA Reconciliations
EBITDA and Adjusted EBITDA Reconciliations (in millions, except percentage data; unaudited) 23
Slide 24: Free Cash Flow Reconciliations
Free Cash Flow Reconciliations (in millions, except percentage data; unaudited) 24