Astec Industries (ASTE) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 net sales of $400.6 million, with full-year net sales up 8.1% to $1,410.4 million, driven by both organic and inorganic growth.

• Adjusted EBITDA for Q4 was $44.7 million (11.2% margin); full-year Adjusted EBITDA reached $140.7 million (10% margin), a 25.8% increase year-over-year.

• Backlog increased to $514.1 million, up 22.5% year-over-year, reflecting strong order activity and improved dealer inventory.

• Acquisitions of TerraSource and CWMF added over $200 million in annual revenue and are expected to be accretive from day one.

• Free cash flow for the year reached $20.7 million, supported by operational consistency and working capital management.

Financial highlights

• Full-year net sales grew 8.1% to $1,410.4 million; Q4 net sales were $400.6 million, up 11.6% year-over-year.

• Adjusted EPS for Q4 was $1.22; full-year Adjusted EPS rose 28.6% to $3.33.

• Infrastructure Solutions segment Q4 net sales were $223.6 million; full-year Adjusted EBITDA margin rose to 15.7%.

• Materials Solutions Q4 net sales surged 60.6% to $177.0 million; full-year net sales up 18.2% to $553.0 million.

• Parts sales grew 19.7% in Q4 and 11.5% for the year, totaling $432.7 million and representing 30.7% of total net sales.

Outlook and guidance

• 2026 Adjusted EBITDA guidance is $170 million-$190 million, driven by both organic and inorganic growth.

• Effective tax rate expected between 25%-28%; capital expenditures of $40-$50 million; D&A of $55-$65 million; quarterly adjusted SG&A of $70-$80 million.

• Multi-year demand anticipated from federal infrastructure funding and robust state/local budgets.

• Margin expansion targeted in both segments, with ongoing focus on operational efficiency and parts/service growth.

• Optimism for 2026 is supported by internal initiatives and positive customer sentiment.