ASTE · Astec Industries, Inc.

Astec Industries delivered first quarter 2026 results with net sales reaching $396.3 million, a 20.3% increase from $329.4 million in the prior year quarter, primarily propelled by a robust 70.6% surge in Materials Solutions net sales to $159.3 million from organic and inorganic growth, while Infrastructure Solutions remained nearly flat at $237.0 million after acquired business contributions offset timing and mix issues in the legacy operations. GAAP profitability faced headwinds, with income from operations dropping 56.1% to $9.0 million and net income attributable to controlling interest plummeting 90.9% to $1.3 million, yielding diluted EPS of $0.06. Adjusted metrics showed resilience, with adjusted net income at $12.5 million and adjusted EBITDA at $30.3 million, though both declined from prior year levels due to factors like ConExpo trade show expenses, freight, duties, and tariffs. Segment performance highlighted Infrastructure Solutions' adjusted EBITDA margin contraction to 14.7% from 18.2%, a 350 bps decline amid a strong prior-year comparison, while Materials Solutions held steady at 5.6% margin with 71.2% EBITDA growth. CEO Jaco van der Merwe noted optimism for the year backed by favorable order activity and strong end markets, maintaining full-year adjusted EBITDA guidance at $170-190 million. CFO Brian Harris emphasized healthy liquidity of $267.5 million, leverage of 2.3x within the 1.5x-2.5x target, and strong cash generation with $40.7 million in operating cash flow supporting capital expenditures of $8.1 million and a $0.13 per share dividend. Backlog growth to $549.2 million, up 36.4%, with Materials Solutions up 87.5%, underscores demand strength positioning Astec for organic and inorganic expansion.