Astec Industries (ASTE) investor relations material

Strategic vision and growth drivers

• Focus on growing recurring revenue, launching industry-changing solutions, and expanding internationally through organic and inorganic means.

• Three strategic pillars: engaged employees, customer focus, and innovation, underpin the operational model.

• Mega trends such as recycling, re-industrialization, digitalization, and mining are expected to drive future growth.

• Recent acquisitions and the launch of the Signal digital platform position the company for accelerated growth.

• Commitment to continuous improvement, operational excellence, and leveraging a strong balance sheet for future investments.

Financial targets and capital allocation

• Targets for 2030: revenue CAGR >6%, adjusted EBITDA margin of 14%-17%, ROIC of 13%-15%, and 25%+ operating cash flow growth.

• Margin improvement driven by higher parts and service mix, manufacturing efficiency, and a relatively fixed SG&A base.

• $409 million capital deployment planned for 2026-2030, with additional $400-$600 million capacity if leverage is increased.

• Acquisition strategy prioritizes recurring aftermarket revenue, digital capabilities, and cultural fit.

• Capital allocation remains disciplined, balancing organic growth, bolt-on acquisitions, and maintaining leverage targets.

Operational and innovation highlights

• Over 25 new or upgraded products launched at CONEXPO-CON/AGG 2026, with a robust new product pipeline.

• Signal Platform enables smart services, telematics, and operational intelligence, supporting both new and retrofit installations.

• MyAstec portal and digital tools simplify parts ordering and enhance customer experience.

• AI-powered innovations like Silobot and DropZone improve safety, efficiency, and predictive maintenance.

• System sales and installed base expansion are key to driving long-term aftermarket revenue.