Astec Industries (ASTE) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 0.7% YoY to $352.4M; Adjusted EBITDA fell 30.3% to $18.9M, with a 5.4% margin vs. 7.7%.

• GAAP net loss attributable to controlling interest was $12.2M; adjusted net loss was $0.3M.

• Backlog increased 49.2% YoY to $670.5M, with growth in both segments.

• FY26 Adjusted EBITDA guidance was reduced to $140M-$150M from $160M-$175M.

• Inflation, unfavorable mix and delayed asphalt plant shipments pressured Q3 margins and results.

Financial highlights

• Q3 operating loss was $3.3M versus operating income of $1.1M; adjusted operating income was $12.1M versus $20.6M.

• Adjusted diluted EPS was -$0.01 versus $0.47; GAAP diluted loss per share was $0.53 versus $0.18.

• Q3 gross profit was $82.3M, down 2.3% YoY; gross margin was 23.4%, down from 24.1%.

• Nine-month net sales rose 14.6% to $1,156.8M; Adjusted EBITDA was $91.8M versus $96.1M.

• Q3 operating cash flow was $17.4M and free cash flow was $10.7M, versus free cash use of $12.3M a year earlier.

Outlook and guidance

• FY26 Adjusted EBITDA guidance is $140M-$150M; Q4 guidance is $48M-$58M versus $44.8M in Q4 2025.

• Select asphalt plant orders shifted to Q4 2026 and Q1 2027 deliveries; management expects a record Q4 asphalt shipment quarter.

• Management expects price-cost parity by the end of Q1 2027.

• FY26 tax rate guidance is 26%-30%, D&A $55M-$65M, capex $30M-$40M; Q4 SG&A is $70M-$75M and interest expense is $7M.

• Infrastructure Solutions is expected to enter 2027 with backlog $100M above its entry level for 2026.