aste-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 001-11595

Astec Industries, Inc.

(Exact name of registrant as specified in its charter)

Tennessee

62-0873631

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

1725 Shepherd Road

Chattanooga, TN

37421

(Address of principal executive offices)

(Zip Code)

(423) 899-5898

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ASTE	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 25, 2025, there were 22,866,970 shares of Common Stock outstanding.

ASTEC INDUSTRIES, INC.

Index to Quarterly Report on Form 10-Q

For the Quarter Ended March 31, 2025


		Page
PART I
Item 1.	Financial Statements (Unaudited)	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Operations	2
	Consolidated Statements of Comprehensive Income (Loss)	3
	Consolidated Statements of Cash Flows	4
	Consolidated Statements of Equity	6
	Notes to Unaudited Consolidated Financial Statements	7
	Note 1. Basis of Presentation and Significant Accounting Policies	7
	Note 2. Inventories	8
	Note 3. Fair Value Measurements	8
	Note 4 . Product Warranty Reserves	10
	Note 5 . Accrued Loss Reserves	10
	Note 6 . Income Taxes	10
	Note 7 . Commitments and Contingencies	11
	Note 8 . Revenue Recognition	12
	Note 9 . Operations by Industry Segment and Geographic Area	12
	Note 10. Strategic Transformation, Restructuring and Other Asset Gains, net	15
	Note 1 1 . Earnings Per Common Share	16
	Note 12. Subsequent Events	17
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	24

PART II
Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 3.	Defaults Upon Senior Securities	25
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	26
SIGNATURES		27

INDEX

PART I ‑ FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

ASTEC INDUSTRIES, INC.

Consolidated Balance Sheets

(In millions, except share and per share data, unaudited)


	March 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	92.6	$	90.8
Investments	2.8		3.0
Trade receivables, contract assets and other receivables, net of allowance for credit losses of $2.1 and $2.3, respectively	172.6		167.2
Inventories	434.9		422.7
Prepaid and refundable income taxes	4.7		9.3
Prepaid expenses and other assets	29.6		29.8

Total current assets	737.2		722.8
Property and equipment, net of accumulated depreciation of $270.3 and $264.4, respectively	180.5		181.9
Investments	19.3		18.9
Goodwill	25.1		25.0
Intangible assets, net of accumulated amortization of $56.5 and $55.3, respectively	10.5		11.2
Deferred income tax assets	46.6		45.8
Other long-term assets	36.8		38.0
Total assets	$	1,056.0	$	1,043.6
LIABILITIES AND EQUITY
Current liabilities:

Short-term debt	$	11.5	$	13.3
Accounts payable	91.6		79.2
Customer deposits	72.3		77.3
Accrued product warranty	17.8		16.1
Accrued employee related liabilities	38.4		38.2
Accrued loss reserves	1.3		1.7
Other current liabilities	44.1		45.9
Total current liabilities	277.0		271.7
Long-term debt	96.0		105.0
Deferred income tax liabilities	2.3		2.4
Other long-term liabilities	27.6		26.9
Total liabilities	402.9		406.0
Commitments and contingencies (Note 7)
Shareholders' equity:
Preferred stock – authorized 2,000,000 shares of $1.00 par value; none issued	—		—
Common stock – authorized 40,000,000 shares of $0.20 par value; issued and outstanding – 22,840,087 as of March 31, 2025 and 22,803,976 as of December 31, 2024	4.6		4.6
Additional paid-in capital	144.0		142.9
Accumulated other comprehensive loss	(48.1)		(51.1)
Company stock held by deferred compensation programs, at cost	(0.3)		(0.3)
Retained earnings	553.0		541.7
Shareholders' equity	653.2		637.8
Noncontrolling interest	(0.1)		(0.2)
Total equity	653.1		637.6
Total liabilities and equity	$	1,056.0	$	1,043.6

The accompanying notes are an integral part of these unaudited consolidated financial statements.

INDEX

ASTEC INDUSTRIES, INC.

Consolidated Statements of Operations

(In millions, except share and per share data, unaudited)


	Three Months Ended March 31,
	2025		2024
Net sales	$	329.4	$	309.2
Cost of sales	237.0		232.3
Gross profit	92.4		76.9
Selling, general and administrative expenses	71.9		71.4

Restructuring and other asset gains, net	—		(0.8)
Income from operations	20.5		6.3
Other expenses, net:
Interest expense	(2.0)		(2.7)
Interest income	0.6		0.6
Other income, net	0.6		0.5
Income before income taxes	19.7		4.7
Income tax provision	5.4		1.4
Net income	14.3		3.3
Net loss attributable to noncontrolling interest	—		0.1
Net income attributable to controlling interest	$	14.3	$	3.4
Per share data:
Earnings per common share - Basic	$	0.63	$	0.15
Earnings per common share - Diluted	$	0.62	$	0.15
Weighted average shares outstanding - Basic	22,833,292		22,762,098
Weighted average shares outstanding - Diluted	22,976,526		22,834,814

The accompanying notes are an integral part of these unaudited consolidated financial statements.

INDEX

ASTEC INDUSTRIES, INC.

Consolidated Statements of Comprehensive Income (Loss)

(In millions, unaudited)


	Three Months Ended March 31,
	2025		2024
Net income	$	14.3	$	3.3
Other comprehensive income (loss):


Foreign currency translation adjustments	3.1		(4.4)
Other comprehensive income (loss)	3.1		(4.4)
Comprehensive income (loss)	17.4		(1.1)
Comprehensive (income) loss attributable to noncontrolling interest	(0.1)		0.1
Comprehensive income (loss) attributable to controlling interest	$	17.3	$	(1.0)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

INDEX

ASTEC INDUSTRIES, INC.

Consolidated Statements of Cash Flows

(In millions, unaudited)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net income	$	14.3	$	3.3
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	6.4		6.5
Provision for credit losses	(0.1)		0.1
Provision for warranties	6.2		4.2
Deferred compensation expense	—		0.1
Share-based compensation	1.7		1.2
Deferred tax benefit	(1.0)		(2.0)
Gain on sale of property and equipment, net	—		(0.9)


Amortization of debt issuance costs	0.1		0.1

Change in operating assets and liabilities:
Sale (purchase) of trading securities, net	0.2		(2.2)
Receivables and other contract assets	(3.9)		(39.1)
Inventories	(10.9)		(30.6)
Prepaid expenses	0.8		0.6
Other assets	0.7		(4.0)
Accounts payable	12.6		2.5

Accrued loss reserves	—		(0.3)
Accrued employee related liabilities	—		(7.8)
Other accrued liabilities	(2.7)		12.2
Accrued product warranty	(4.6)		(4.5)
Customer deposits	(5.1)		10.1
Income taxes payable/prepaid	5.8		3.5
Net cash provided by (used in) operating activities	20.5		(47.0)
Cash flows from investing activities:

Expenditures for property and equipment	(3.9)		(5.8)
Proceeds from sale of property and equipment	—		0.4
Purchase of investments	(0.4)		(0.5)
Sale of investments	0.1		—
Net cash used in investing activities	(4.2)		(5.9)

(Continued)

INDEX

ASTEC INDUSTRIES, INC.

Consolidated Statements of Cash Flows (Continued)

(In millions, unaudited)


	Three Months Ended March 31,
	2025	2024
Cash flows from financing activities:
Payment of dividends	(2.9)	(2.9)
Proceeds from borrowings on credit facilities and bank loans	95.5	68.4
Repayments of borrowings on credit facilities and bank loans	(106.9)	(16.7)

SEC Form 10-Q filed by Astec Industries Inc.