Astec Industries (ASTE) investor relations material

Strategic vision and growth drivers

• Focus on growing recurring revenue mix, targeting 40%-50% of revenue from parts and services by 2030, up from 34%, through organic growth and acquisitions.

• Pursues over 6% organic revenue CAGR through 2030, leveraging mega trends like recycling, re-industrialization, digitalization, and mining.

• Launches industry-changing solutions and digital platforms, including the Signal Platform and Signal Connectivity Suite, to drive new revenue streams and customer value.

• Expands internationally via local manufacturing, organic growth, and targeted acquisitions, with a focus on increasing market share outside the U.S.

• Emphasizes three strategic pillars: engaged employees, customer focus, and innovation, with a strong commitment to operational excellence and continuous improvement.

Financial targets and capital allocation

• Targets revenue growth CAGR of over 6% and adjusted EBITDA margin of 14%-17% by 2030, with annual EBITDA margin improvement of 75–150bps.

• Sets ROIC target at 13%-15%, aiming to exceed cost of capital while growing the capital base.

• Operating cash flow growth targeted at 25%+ through 2030, supported by improved EBITDA and working capital management.

• Maintains $400-$600 million available for acquisitions, with leverage targeted at 1.5x–2.5x, and a disciplined M&A playbook focused on recurring revenue and cultural fit.

• Achieved 440bps EBITDA margin expansion and 74% total shareholder return since early 2023, with a strong balance sheet and consistent dividend and buyback policies.

Operational excellence and innovation

• Implements the OneASTEC operating model and E3 strategy, driving employee engagement, leadership development, and over 300 internal promotions in 2025.

• Over 3,000 employee-driven improvement projects submitted, with extensive training, Lean certification, and incentive programs.

• Innovation pipeline includes 25+ new or upgraded products, AI-powered tools, and digital platforms like MyAstec and Silobot.

• Digital transformation led by the Signal Platform, enabling real-time asset management, predictive maintenance, and new service models.

• Focuses on sustainability and regulatory compliance through product and digital innovation, supporting customer efficiency, alternative fuels, and permitting.