Astec Industries (ASTE) Sidoti September Small-Cap Virtual Conference summary

Company overview and leadership

• Headquartered in Chattanooga, Tennessee, with 4,300 employees and $1.3B in sales last year.

• Operates in the Rock to Road space, covering mining, crushing, screening, asphalt, and concrete plants.

• Two main segments: Infrastructure Solutions (asphalt, concrete plants) and Materials Solutions (crushing, screening).

• Leadership team with deep industry experience and a refreshed, diverse board.

• CEO and key leaders have backgrounds in major industry players, supporting operational excellence.

Strategic focus and operational initiatives

• Focused on three strategic pillars: employee empowerment, customer-centric solutions, and innovation.

• Emphasizing growth in parts and service, which accounts for 25-30% of sales.

• Actively right-sizing SG&A and leveraging procurement to drive long-term cost reductions.

• Expanding North American and international dealer networks to support global growth.

• Strong operational leadership and manufacturing structures in place to drive excellence.

Market environment and growth opportunities

• Federal infrastructure funding is flowing, but inflation has absorbed much of the increase, limiting net impact.

• Both political parties support infrastructure spending, ensuring continued investment regardless of election outcome.

• Majority of business volume tied to public funding for road and bridge construction.

• International market is underpenetrated, with new products and facility investments targeting global expansion.

• New product launches, such as the paver and milling machine, are receiving strong early market feedback.