Astec Industries (ASTE) investor relations material

Executive summary

• Net sales rose 20.3% year-over-year to $396.3 million, driven by both organic and inorganic growth, notably the CWMF acquisition and strong Materials Solutions performance.

• Adjusted EBITDA for Q1 2026 was $30.3 million (7.6% margin), down 13.9% year-over-year; trailing twelve-month adjusted EBITDA was $136 million (9.2% margin).

• Net income attributable to controlling interest dropped 90.9% to $1.3 million, with diluted EPS at $0.06, down from $0.62; adjusted EPS was $0.54, down from $0.91.

• Backlog increased 36.4% to $549.2 million, reflecting robust demand in both Infrastructure and Materials Solutions.

• Free cash flow in Q1 was $32.6 million, supporting investment in growth opportunities.

Financial highlights

• Domestic sales increased 16.5% to $319.0 million; international sales surged 39.0% to $77.3 million.

• Operating cash flow was $40.7 million; free cash flow was $32.6 million, both up significantly year-over-year.

• Adjusted EPS for Q1 2026 was $0.54, down from $0.91 in Q1 2025; trailing twelve-month adjusted EPS was $2.97.

• Parts and service sales increased 19.7% year-over-year, representing 36.9% of net sales.

• Gross profit improved to $99.1 million, but gross margin declined to 25.0% from 28.1% due to inflation and manufacturing variances.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance maintained at $170–$190 million, reflecting confidence in order activity and end markets.

• Effective tax rate expected between 25% and 28%; actual Q1 rate was 53.6%.

• Capital expenditures for 2026 projected between $40 million and $50 million.

• Management expects sufficient liquidity for at least the next 12 months, with $267.5 million in total liquidity as of March 31, 2026.

• Demand outlook for asphalt and concrete plants remains positive, supported by federal and state infrastructure funding.