Astec Reports Third Quarter 2026 Results

Third Quarter 2026 Overview (all comparisons are made to the corresponding prior year third quarter unless otherwise specified):

• Net sales of $352.4 million, increased 0.7%
• Net loss attributable to controlling interest of $12.2 million; Adjusted net loss of $0.3 million
• EBITDA of $11.4 million; Adjusted EBITDA of $18.9 million
• Diluted EPS of $(0.53); Adjusted EPS of $(0.01)
• Operating cash flow of $70.2 million year to date; Free cash flow of $48.0 million year to date
• Backlog of $670.5 million grew 49.2%

CHATTANOOGA, Tenn., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial results for the third quarter ended September 30, 2026.

"Third quarter financial results were less than expected as ongoing macroeconomic uncertainty caused a pause in orders earlier in the year by select asphalt plant customers. This, combined with inflationary headwinds, impacted our sales, mix, absorption and margins during the third quarter. Despite this temporary pause and the delayed renewal of the U.S. federal highway bill, underlying demand rebounded in the third quarter as evidenced by our 49.2% growth in backlog," said Jaco van der Merwe, Chief Executive Officer.

"We are revising our full year 2026 Adjusted EBITDA guidance from the previous range of $160 million to $175 million to $140 million to $150 million," said Brian Harris, Chief Financial Officer. "Positive cash flow and disciplined capital allocation yielded an Adjusted EBITDA to net debt ratio of 2.3x, which was within our target range of 1.5x to 2.5x."

Segment Results

Our reportable segments comprise sites based upon the nature of the products produced or services provided, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations.

Infrastructure Solutions - Design, engineer, manufacture and market a complete line of asphalt plants, concrete plants and their related components and ancillary equipment, including industrial automation controls and telematics platforms, as well as asphalt and road construction equipment, industrial thermal systems, land clearing, recycling and other heavy equipment, along with aftermarket parts.

• Net sales of $189.0 million decreased 2.2% compared to the same period the prior year. The decrease was primarily driven by net unfavorable volume and mix partially offset by favorable pricing. Backlog increased 47.0%. Implied orders increased sequentially by $77.6 million, or 38.0%, to $281.9 million. The book-to-bill ratio was 149%.
• Segment Operating Adjusted EBITDA of $15.3 million decreased 36.0% and Segment Operating Adjusted EBITDA margin of 8.1% decreased 430 basis points compared to the third quarter of the prior year largely due to the impact of inflation on materials, labor and overhead.

Materials Solutions - Design and manufacture hard and soft rock processing equipment, in addition to servicing and supplying parts for the aggregate, civil construction, energy, mining, hydro-electric, recycling, ports and bulk material handling markets.

• Net sales of $163.4 million increased by 4.1% primarily due to favorable pricing coupled with net favorable volume and mix. Backlog increased 52.1%. Implied orders decreased sequentially by $115.8 million, or 45.3%, to $139.9 million. The book-to-bill ratio stood at 86%.
• Segment Operating Adjusted EBITDA of $13.9 million decreased $1.5 million, or 9.7%, and Segment Operating Adjusted EBITDA margin of 8.5% decreased 130 basis points versus the same period in 2025 primarily due to the impact of inflation on materials, labor and overhead and increased selling, general and administrative expenses. These decreases were partially offset by the net sales impact of favorable pricing and unfavorable volume and mix.

Liquidity and Cash Flow

• Our total liquidity was $267.2 million, consisting of $63.2 million of cash and cash equivalents available for operating purposes and $204.0 million available for additional borrowings under our revolving credit facility.
• Operating Cash Flow in the quarter was $17.4 million and Free Cash Flow in the quarter was $10.7 million.

Third Quarter Capital Allocation

• Capital expenditures of $6.7 million.
• Dividend payment of $0.13 per share.

Investor Conference Call and Webcast

Astec will conduct a conference call and live webcast today, November 5, 2026, at 9:00 A.M. Eastern Time, to review its third quarter 2026 financial results.

To access the call toll free (North America) dial +1 (833) 461-5787 or (International) +1 (585) 542-9983, meeting ID: 435 095 470 on Thursday, November 5, 2026, at least 10 minutes prior to the scheduled time for the call.

International dial-ins can be accessed at: https://help.events.q4inc.com/eahc/international-dial-in-numbers

You may also access a live webcast of the call, and twelve month replay, at: https://events.q4inc.com/attendee/435095470

You will need to give your name and company affiliation and reference Astec.

A transcript of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website at www.astecindustries.com within 5 business days after the call.

About Astec

Astec, (www.astecindustries.com), is a manufacturer of specialized equipment for asphalt road building, aggregate processing and concrete production. Astec's manufacturing operations are divided into two primary business segments: Infrastructure Solutions that includes asphalt and concrete plants, thermal and storage solutions; and Materials Solutions that includes aggregate processing equipment. Astec also operates a line of controls and automation products designed to deliver enhanced productivity through improved equipment performance.

Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995

This News Release contains 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 other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate, the United States and global economies and guidance for fiscal 2026. Statements in this News Release that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "believes," "should," "would," "could," "forecast," "management is of the opinion," use of the future tense and similar words or phrases. These forward-looking statements are based largely on management's expectations, which are subject to a number of known and unknown risks, uncertainties and other factors discussed and described in our most recent Annual Report on Form 10-K, including those risks described in Part I, Item 1A. Risk Factors thereof, and in other reports filed subsequently by us with the Securities and Exchange Commission, including those risks described in Part II, Item 1A in our most recent Quarterly Report on Form 10-Q, which may cause actual results, financial or otherwise, to be materially different from those anticipated, expressed or implied by the forward-looking statements. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law.

Non-GAAP Measures

In an effort to provide investors with additional information regarding the Company's results, the Company refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures which management believes provide useful information to investors. These non-GAAP measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management of the Company does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. Nonetheless, this non-GAAP information can be useful in understanding the Company's operating results and the performance of its core business. Management of the Company uses both GAAP and non-GAAP financial measures to establish internal budgets and targets to evaluate the Company's financial performance against such budgets and targets. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in the tables.

When we provide guidance for Adjusted EBITDA we do not provide a reconciliation of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjusted items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our Company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts.

For Additional Information Contact:
Steve Anderson 
Senior Vice President of Administration and Investor Relations
Phone: (423) 899-5898 
E-mail: sanderson@astecindustries.com

We present certain non-GAAP information that can be useful in understanding our operating results and the performance of our core business. We use both GAAP and non-GAAP financial measures to establish internal budgets and targets and to evaluate financial performance against such budgets and targets.

Beginning with the announcement of results for the first quarter of 2026, we have included the gain or loss on sale of property and equipment in the presentation of Adjusted income from operations, Adjusted net income attributable to controlling interest, Adjusted EPS and Adjusted EBITDA. Prior periods have been revised to reflect this change.

We exclude the costs and related tax effects, which are based on the statutory tax rate applicable to each respective item unless otherwise noted below, of the following items as we do not believe they are indicative of our core business operations:

• Transformation program - Incremental costs related to the execution of our ongoing strategic transformation initiatives which may include personnel costs, third-party consultant costs, duplicative systems usage fees, administrative costs, accelerated depreciation and amortization on certain long-lived assets and other similar type charges. These costs are included in "Cost of sales" and "Selling, general and administrative expenses", as appropriate, in the Consolidated Statements of Operations.

• Restructuring and other related charges - Charges related to restructuring activities, to the extent that they are experienced, may include personnel termination actions and reorganization efforts to simplify and consolidate our operations. These costs are recorded in "Restructuring and other operating charges (gains), net" in the Consolidated Statements of Operations.

• Goodwill impairment - Goodwill impairment charges, to the extent that they are experienced, are recorded in "Goodwill impairment" in the Consolidated Statements of Operations.

• Asset impairment - Asset impairment charges, to the extent that they are experienced, are recorded in "Restructuring and other operating charges (gains), net" in the Consolidated Statements of Operations.

• Amortization of acquired intangible assets - Non-cash charges related to the amortization of acquired intangible assets. These costs are typically included in "Selling, general and administrative expenses" in the Consolidated Statements of Operations.

• Acquisition and integration costs - Costs associated with the pursuit of acquisition opportunities or the effected acquisition and integration of acquired businesses. These costs are typically included in "Cost of sales" and "Selling, general and administrative expenses" in the Consolidated Statements of Operations.