Slide 1: Third Quarter Earnings
Third Quarter Earnings November 1, 2023
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 President & Chief Executive Officer ir.astecindustries.com | 3
Slide 4: 3Q 2023 Highlights
Sales down in seasonally soft 3Q; end markets with solid demand 3Q 2023 1 and positive customer sentiment; normalized backlog and Federal Highway Bill funding supports confidence in long-term growth HIGHLIGHTS Gross margin +220 bps Y/Y to 23.0% on operational excellence 2 improvement and price reali
Slide 5: 2023 Priorities Focused on Execution
2023 Priorities Focused on Execution • Building on consistent track record of financial results Driving Simplify, Focus and Grow • Realizing benefits from transformation program strategy to create value • Leveraging strategic priorities to serve growing markets • Further expanded distribution networ
Slide 6: Business Dynamics and Observations
Business Dynamics and Observations INDUSTRY TREND ASTEC RESPONSE / IMPACT ✓ Capacity expansion is increasing throughput; nearing completion of Strong infrastructure demand for Northern Ireland expansion asphalt roadbuilding, aggregate ✓ Working with dealers to support growing aftermarket opportunity
Slide 7: Expanding Global Footprint
Expanding Global Footprint • Build a presence in growth markets to promote the Astec family of products • Focus on selling current products while developing market specific products and global supply chain/manufacturing network to improve competitiveness • Capture aftermarket for existing population
Slide 8: Backlog Development
Backlog Development BACKLOG ($M) • Capital Expenditures for facility expansion, $969 automation, productivity and throughput $913 $835 $837 • Selectively adding headcount in $800 manufacturing facilities $763 $689 • Enhanced Operations Management $621 $615 (Manufacturing/Quality Engineers) • Dynamic
Slide 9: Announcing Our New Vision
Announcing Our New Vision Rooted in Innovation and Limitless Potential To build industry changing solutions that create life-changing opportunities Empowered, Enabled, Engaged Employees Customer Focused Industry Changing Innovation Building Foundation for New Long-term Targets at Investor Day in Spr
Slide 10: Strategy Drives Stakeholder Returns
Strategy Drives Stakeholder Returns Simplify Focus Grow Optimizing Organizational Improved Operational Profitable Structure and Operations Excellence Growth • Quality and performance • Aftermarket development • Reduce organizational focused company culture structure complexity • Dealer expansion • L
Slide 11: Innovative New Products in Q3 & Q4
Innovative New Products in Q3 & Q4 RX405 Mill Tracked Paver Peterson 5710E Horizontal Grinders New half lane milling Improved product Equipped with features machine serving largest offering serving largest to improve efficiency market segment market segment and reduce material handling costs Deliber
Slide 12: Operating As OneASTEC
Operating As OneASTEC • Employees and customers at the center of everything we do • Focusing on the “Rock to Road” Value Chain • Hiring and training new employees to meet continued strong demand • Leveraging footprint to reduce lead times, optimize revenue and manage costs • Mitigating supply and lo
Slide 13: Sustainability in Everything We Do
Sustainability in Everything We Do Publishing Inaugural Corporate Sustainability Report 4Q 2023 Invest in Resources to Accelerate Environmental Initiatives Continue to Advance Social Initiatives Maintain Sound Governance Practices Innovation of Rock to Road Through a Focus on Conserving Resources an
Slide 14: Third Quarter Financial Results
Third Quarter Financial Results Becky Weyenberg Chief Financial Officer ir.astecindustries.com | 14
Slide 15: 3Q23 Financial Results
3Q23 Financial Results ($M, except per share data) NET SALES BACKLOG ADJ. EBITDA1 ADJ. EPS1 $315.2 $16.6 $0.28 $303.1 $969.0 $614.7 $10.0 (39.8%) (103.6%) (3.8%) (36.6%) -$0.01 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 • Equipment sales decreased • Domestic backlog decreased • Adj. EBITDA margin • Exc
Slide 16: Infrastructure Solutions
Infrastructure Solutions 3Q23 Financial Performance ($M) PERFORMANCE DRIVERS • Sales decreased as positive international demand was more than offset by domestic softness – Domestic sales -7.4% – International sales +3.4% – Equipment sales -6.9% NET SALES BACKLOG SEGMENT OPERATING – Parts sales +5.5%
Slide 17: Materials Solutions
Materials Solutions 3Q23 Financial Performance ($M) PERFORMANCE DRIVERS • Sales decreased as strong international demand was more than offset by domestic softness – Domestic sales -9.0% – International sales +20.7% – Equipment sales -0.6% NET SALES BACKLOG SEGMENT OPERATING – Parts sales -3.2% ADJ.
Slide 18: 3Q23 Adjusted EBITDA Bridge
3Q23 Adjusted EBITDA1 Bridge 1 See appendix for the reconciliation of GAAP to Non-GAAP measures. ir.astecindustries.com | 18
Slide 19: Maintain Strong, Flexible Balance Sheet with Ample Liquidity
Maintain Strong, Flexible Balance Sheet with Ample Liquidity SUMMARY BALANCE SHEET ($M) 9/30/23 ($M) 9/30/23 Cash and Cash Equivalents $71.3 Cash and Cash Equivalents $71.3 Total Current Assets $746.3 Available Credit $125.6 Total Assets $1,074.4 Total Available Liquidity $196.9 Total Current Liabil
Slide 20: Disciplined Capital Deployment Framework
Disciplined Capital Deployment Framework Returns to Shareholders • Dividend of $0.13 per share in 3Q23 Continually evaluate strategy to ensure a balanced approach 21% Share Repurchases • ~$116M remaining in authorized share Property and Equipment repurchase program, positioning us for additional opp
Slide 21: Oracle Suite of Solutions Enabling Transformation
Oracle Suite of Solutions Enabling Transformation e y u r n OUR VISION n J o o p ti o A d si gn a nd l o u d De O n eAS T E C C Completion of ERP and CX rollout globally Rollout of ERP and CX at majority of IS sites Common operating Implementation of ERP OneASTEC model and CX at corporate and To tra
Slide 22: Key 3Q 2023 Messages
KEY Astec team continues to perform well, serving customers and 1 3Q 2023 driving operational excellence improvement MESSAGES 2 Following customer meetings and industry events sentiment remains positive Establishing a performance culture through consistent execution with a focus on OneASTEC operatin
Slide 23: Long-Term Goals
Long-Term Goals Deploying the OneASTEC business model to fuel strong future operational and financial performance 5%-10% >12% >10% >1.0 >14% Revenue EBITDA EPS FCF ROIC Growth Margin Growth Conversion1 Create Value for Shareholders Alignment to Incentive Plan Stand Through Cycles 1 Calculated by div
Slide 24: Questions and Answers
QUESTIONS AND ANSWERS ir.astecindustries.com | 24
Slide 25: Corporate Office
CORPORATE OFFICE Steve Anderson SVP of Administration & Investor Relations 1725 Shepherd Road Phone: 423-553-5934 Chattanooga, TN 37421 Email: sanderson@astecindustries.com +1 (423) 899 - 5898 Visit Our Website ir.astecindustries.com | 25
Slide 26: Appendix
APPENDIX ir.astecindustries.com | 26
Slide 27: GAAP vs Non-GAAP Adjusted EPS Reconciliations
GAAP vs Non-GAAP Adjusted EPS Reconciliations (in millions, except per share amounts; unaudited) ir.astecindustries.com | 27
Slide 28: EBITDA and Adjusted EBITDA Reconciliations
EBITDA and Adjusted EBITDA Reconciliations (in millions, except percentage data; unaudited) ir.astecindustries.com | 28