SEC Form 10-Q filed by Astec Industries Inc.

11/5/25 4:15:26 PM ET

Construction/Ag Equipment/Trucks

Industrials

Get the next $ASTE alert in real time by email

aste-20250930

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 September 30, 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 October 31, 2025, there were 22,875,841 shares of Common Stock outstanding.

ASTEC INDUSTRIES, INC.

Index to Quarterly Report on Form 10-Q

For the Quarter Ended September 30, 2025


		Page
PART I
Item 1.	Financial Statements (Unaudited)	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Operations	2
	Consolidated Statements of Comprehensive (Loss) Income	3
	Consolidated Statements of Cash Flows	4
	Consolidated Statements of Equity	6
	Notes to Unaudited Consolidated Financial Statements	8
	Note 1. Basis of Presentation and Significant Accounting Policies	8
	Note 2. Acquisition	9
	Note 3. Inventories	11
	Note 4. Fair Value Measurements	11
	Note 5. Goodwill	12
	Note 6. Product Warranty Reserves	13
	Note 7. Accrued Loss Reserves	14
	Note 8. Debt	14
	Note 9. Income Taxes	15
	Note 10. Commitments and Contingencies	16
	Note 11. Revenue Recognition	17
	Note 12. Operations by Industry Segment and Geographic Area	18
	Note 13. Strategic Transformation, Restructuring and Other Asset Gains, net	22
	Note 14. (Loss) Earnings Per Common Share	24

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33

PART II
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibits	36
SIGNATURES		37


	September 30, 2025		December 31, 2024
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	69.3	$	90.8
Investments	2.5		3.0
Trade receivables, contract assets and other receivables, net of allowance for credit losses of $2.9 and $2.3, respectively	193.1		167.2
Inventories	500.8		422.7
Prepaid and refundable income taxes	20.5		9.3
Prepaid expenses and other assets	35.0		29.8

Total current assets	821.2		722.8
Property and equipment, net of accumulated depreciation of $289.1 and $264.4, respectively	198.9		181.9
Investments	21.3		18.9
Goodwill	110.4		25.0
Intangible assets, net of accumulated amortization of $62.8 and $55.3, respectively	130.6		11.2
Deferred income tax assets	23.0		45.8
Other long-term assets	43.6		38.0
Total assets	$	1,349.0	$	1,043.6
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	16.2	$	—
Short-term debt	12.2		$	13.3
Accounts payable	94.4		79.2
Customer deposits	76.1		77.3
Accrued product warranty	19.0		16.1
Accrued employee related liabilities	50.9		38.2
Accrued loss reserves	1.8		1.7
Other current liabilities	47.7		45.9
Total current liabilities	318.3		271.7
Long-term debt	323.6		105.0
Deferred income tax liabilities	5.1		2.4
Other long-term liabilities	33.0		26.9
Total liabilities	680.0		406.0
Commitments and contingencies (Note 10)
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 – 22,875,841 as of September 30, 2025 and 22,803,976 as of December 31, 2024	4.6		4.6
Additional paid-in capital	147.3		142.9
Accumulated other comprehensive loss	(42.2)		(51.1)
Company stock held by deferred compensation programs, at cost	(0.2)		(0.3)
Retained earnings	559.4		541.7
Shareholders' equity	668.9		637.8
Noncontrolling interest	0.1		(0.2)
Total equity	669.0		637.6
Total liabilities and equity	$	1,349.0	$	1,043.6


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net sales	$	350.1	$	291.4	$	1,009.8	$	946.1
Cost of sales	265.9		224.6		744.9		721.1
Gross profit	84.2		66.8		264.9		225.0
Selling, general and administrative expenses	83.3		65.6		222.2		208.1
Goodwill impairment	—		—		—		20.2
Restructuring and other asset (gains) losses, net	(0.2)		8.4		(0.3)		8.3
Income (loss) from operations	1.1		(7.2)		43.0		(11.6)
Other expenses, net:
Interest expense	(7.3)		(2.6)		(11.4)		(8.4)
Interest income	0.7		0.5		2.9		1.5
Other income, net	0.4		0.8		2.7		1.0
(Loss) income before income taxes	(5.1)		(8.5)		37.2		(17.5)
Income tax (benefit) provision	(0.9)		(2.3)		10.3		(0.6)
Net (loss) income	(4.2)		(6.2)		26.9		(16.9)
Net (income) loss attributable to noncontrolling interest	—		—		(0.1)		0.1
Net (loss) income attributable to controlling interest	$	(4.2)	$	(6.2)	$	26.8	$	(16.8)
Per share data:
(Loss) earnings per common share - Basic	$	(0.18)	$	(0.27)	$	1.17	$	(0.74)
(Loss) earnings per common share - Diluted	$	(0.18)	$	(0.27)	$	1.16	$	(0.74)
Weighted average shares outstanding - Basic	22,890,301		22,816,359		22,867,098		22,791,819
Weighted average shares outstanding - Diluted	22,890,301		22,816,359		23,062,694		22,791,819


	Common Stock	Common Stock Amount		Additional Paid-in-Capital		Accumulated Other Comprehensive Loss		Company Shares Held by DCP		Retained Earnings		Noncontrolling Interest		Total Equity














Balance, December 31, 2024	22,803,976	$	4.6	$	142.9	$	(51.1)	$	(0.3)	$	541.7	$	(0.2)	$	637.6
Net income	—	—		—		—		—		14.3		—		14.3
Other comprehensive income	—	—		—		3.0		—		—		0.1		3.1
Dividends ($0.13 per share)	—	—		0.1		—		—		(3.0)		—		(2.9)
Share-based compensation	—	—		1.7		—		—		—		—		1.7

Issuance of common stock under incentive plan	36,111	—		—		—		—		—		—		—
Withholding tax paid upon equity award vesting	—	—		(0.7)		—		—		—		—		(0.7)






Balance, March 31, 2025	22,840,087	$	4.6	$	144.0	$	(48.1)	$	(0.3)	$	553.0	$	(0.1)	$	653.1
Net income	—	—		—		—		—		16.7		0.1		16.8
Other comprehensive income	—	—		—		6.4		—		—		—		6.4
Dividends ($0.13 per share)	—	—		—		—		—		(3.0)		—		(3.0)
Share-based compensation	—	—		1.5		—		—		—		—		1.5

Issuance of common stock under incentive plan	34,626	—		—		—		—		—		—		—


Deferred compensation programs' transactions, net	—	—		—		—		0.1		—		—		0.1




Balance, June 30, 2025	22,874,713	$	4.6	$	145.5	$	(41.7)	$	(0.2)	$	566.7	$	—	$	674.9
Net loss	—	—		—		—		—		(4.2)		—		(4.2)
Other comprehensive (loss) income	—	—		—		(0.5)		—		—		0.1		(0.4)
Dividends ($0.13 per share)	—	—		0.1		—		—		(3.1)		—		(3.0)
Share-based compensation	—	—		1.7		—		—		—		—		1.7

Issuance of common stock under incentive plan	1,128	—		—		—		—		—		—		—


Deferred compensation programs' transactions, net	—	—		—		—		—		—		—		—




Balance, September 30, 2025	22,875,841	$	4.6	$	147.3	$	(42.2)	$	(0.2)	$	559.4	$	0.1	$	669.0


(in millions)	Amount
Payment to equity holders	$	176.4
Payment of TerraSource's outstanding debt	71.9
Transaction expenses paid on behalf of the seller	4.1

Aggregate purchase consideration	252.4

Identifiable assets acquired:
Cash, cash equivalents and restricted cash	3.9
Trade receivables, contract assets and other receivables, net	20.1
Inventories	58.4


Other current assets	11.0
Property and equipment, net	20.4
Intangible assets, net	127.2


Other long-term assets	6.0
Total assets acquired	247.0
Identifiable liabilities assumed:










Current liabilities	43.7
Long-term liabilities	36.0
Total liabilities assumed	79.7
Total identifiable net assets	167.3
Goodwill	$	85.1


(in millions except useful lives)	Fair Value		Estimated Useful Life (in years)
Trade Names	$	7.8	10
Patents	5.0		10
Customer Relationships	110.0		10
Other	4.4		3 - 5
Total identifiable definite-lived intangible assets acquired	$	127.2


Level 1 -						Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 -						Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability.

Level 3 -						Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.


	September 30, 2025
(in millions)	Level 1		Level 2		Total
Financial assets:
Trading equity securities:
Deferred compensation programs' mutual funds	$	5.9	$	—	$	5.9
Preferred stocks	0.3		—		0.3
Equity funds	0.6		—		0.6
Trading debt securities:
Corporate bonds	3.6		—		3.6
Agency bonds	—		0.9		0.9
U.S. government securities	2.4		—		2.4
Asset-backed securities	—		8.7		8.7
Exchange traded funds	0.8		—		0.8
Mortgage backed securities	—		0.3		0.3
Other	—		0.3		0.3

Total financial assets	$	13.6	$	10.2	$	23.8
Financial liabilities:

Deferred compensation programs' liabilities	$	—	$	6.8	$	6.8
Total financial liabilities	$	—	$	6.8	$	6.8


(in millions)	Infrastructure Solutions		Materials Solutions		Total
Balance, December 31, 2023:
Goodwill	$	48.0	$	32.3	$	80.3
Accumulated impairment losses	(21.8)		(12.2)		(34.0)
Net	$	26.2	$	20.1	$	46.3
2024 Activity:
Foreign currency translation	$	(1.2)	$	0.1	$	(1.1)

Impairment	—		(20.2)		(20.2)
Total 2024 activity	$	(1.2)	$	(20.1)	$	(21.3)
Balance, December 31, 2024:
Goodwill	$	46.8	$	32.2	$	79.0
Accumulated impairment	(21.8)		(32.2)		(54.0)
Net	$	25.0	$	—	$	25.0
2025 Activity:
Foreign currency translation	$	0.6	$	(0.3)	$	0.3
Acquisitions	—		85.1		85.1

Total 2025 activity	$	0.6	$	84.8	$	85.4
Balance, September 30, 2025:
Goodwill	$	47.4	$	117.0	$	164.4
Accumulated impairment	(21.8)		(32.2)		(54.0)
Net	$	25.6	$	84.8	$	110.4


(in millions, except maturity date)	September 30, 2025
Revolving Line of Credit
Line of credit - maximum	$	250.0
Incremental credit facility - maximum	150.0
Letters of credit - maximum	30.0
Borrowings outstanding	—
Amount of letters of credit outstanding	5.2
Line of credit, additional borrowing capacity	244.8
Unamortized debt issuance costs
"Prepaid expenses and other assets"	0.9
"Other long-term assets"	3.3

Term Loan
Current maturities	$	17.5
Long-term maturities	328.1
Maturity date	July 1, 2030
Unamortized debt issuance costs
"Current maturities of long-term debt"	1.3
"Long-term debt"	4.5


	Three Months Ended September 30, 2025				Three Months Ended September 30, 2024
(in millions)	Infrastructure Solutions		Materials Solutions		Total		Infrastructure Solutions		Materials Solutions		Total
Net Sales-Domestic:
Equipment sales	$	119.8	$	56.3	$	176.1	$	103.2	$	33.3	$	136.5

Parts and component sales	51.1		37.0		88.1		42.9		21.2		64.1
Service and equipment installation revenue	5.9		3.1		9.0		4.7		0.2		4.9
Used equipment sales	0.1		—		0.1		—		—		—
Freight revenue	6.2		2.5		8.7		5.3		1.5		6.8
Other	0.5		(2.1)		(1.6)		0.5		(1.6)		(1.1)
Total domestic revenue	183.6		96.8		280.4		156.6		54.6		211.2

Net Sales-International:
Equipment sales	6.9		33.6		40.5		4.2		51.2		55.4

Parts and component sales	2.5		21.9		24.4		3.8		17.8		21.6
Service and equipment installation revenue	—		3.9		3.9		0.2		2.7		2.9

Freight revenue	0.2		0.7		0.9		0.2		0.5		0.7
Other	—		—		—		—		(0.4)		(0.4)
Total international revenue	9.6		60.1		69.7		8.4		71.8		80.2
Total net sales	$	193.2	$	156.9	$	350.1	$	165.0	$	126.4	$	291.4


	Three Months Ended September 30, 2025						Three Months Ended September 30, 2024
(in millions)	Infrastructure Solutions		Materials Solutions		Total		Infrastructure Solutions		Materials Solutions		Total
Reportable segment revenues:
Revenues from external customers	$	193.2	$	156.9	$	350.1	$	165.0	$	126.4	$	291.4
Intersegment revenues	7.2		1.5		8.7		25.7		1.4		27.1
Total revenues - reportable segments	$	200.4	$	158.4	$	358.8	$	190.7	$	127.8	$	318.5

Significant reportable segment expenses:
Manufacturing operation costs:
Equipment	$	86.4	$	63.4	$	149.8	$	80.2	$	67.3	$	147.5
Parts	26.0		29.7		55.7		24.2		21.1		45.3
Other	26.0		19.1		45.1		36.9		8.5		45.4
General and administrative	12.8		13.1		25.9		12.4		4.8		17.2
Sales and marketing	10.2		10.1		20.3		9.8		6.6		16.4
Quality costs (1)	5.4		2.9		8.3		4.2		2.9		7.1
Research and development	4.0		2.3		6.3		3.6		2.0		5.6
Inventory period costs (2)	6.0		2.4		8.4		3.8		0.5		4.3
Other segment items (3)	(0.3)		—		(0.3)		—		(0.4)		(0.4)
Reportable Segment Operating Adjusted EBITDA	$	23.9	$	15.4	$	39.3	$	15.6	$	14.5	$	30.1

Reportable segment capital expenditures	$	2.7	$	1.5	$	4.2	$	2.0	$	0.6	$	2.6


(1) Quality costs related to repair or other remediation expenses incurred for corrective action on product failures covered by warranties or voluntarily for certain warranty-type expenses occurring after the normal warranty period expires to help protect the reputation of the Company's products and maintain the goodwill of customers.
(2) Inventory period costs primarily relate to inventory reserves and adjustments and net scrap sales.
(3) Other segment items consists of foreign exchange gains and losses, investment income and loss and other income and expense amounts that are included in Segment Operating Adjusted EBITDA that are not considered to be significant segment expenses.


	Nine Months Ended September 30, 2025						Nine Months Ended September 30, 2024
(in millions)	Infrastructure Solutions		Materials Solutions		Total		Infrastructure Solutions		Materials Solutions		Total
Reportable segment revenues:
Revenues from external customers	$	633.8	$	376.0	$	1,009.8	$	588.6	$	357.5	$	946.1
Intersegment revenues	25.4		4.5		29.9		41.4		2.8		44.2
Total revenues - reportable segments	$	659.2	$	380.5	$	1,039.7	$	630.0	$	360.3	$	990.3

Significant reportable segment expenses:
Manufacturing operation costs:
Equipment	$	279.9	$	170.3	$	450.2	$	281.1	$	180.0	$	461.1
Parts	90.4		67.7		158.1		92.1		60.9		153.0
Other	72.5		38.1		110.6		82.6		27.5		110.1
General and administrative	41.0		28.9		69.9		40.7		20.9		61.6
Sales and marketing	32.7		23.1		55.8		34.2		20.8		55.0
Quality costs (1)	18.3		7.8		26.1		11.0		9.3		20.3
Research and development	12.6		6.5		19.1		11.7		5.8		17.5
Inventory period costs (2)	13.1		5.4		18.5		8.2		5.7		13.9
Other segment items (3)	(0.3)		(2.1)		(2.4)		—		(0.6)		(0.6)
Reportable Segment Operating Adjusted EBITDA	$	99.0	$	34.8	$	133.8	$	68.4	$	30.0	$	98.4

Reportable segment capital expenditures	$	8.6	$	3.1	$	11.7	$	11.9	$	3.9	$	15.8


(1) Quality costs related to repair or other remediation expenses incurred for corrective action on product failures covered by warranties or voluntarily for certain warranty-type expenses occurring after the normal warranty period expires to help protect the reputation of the Company's products and maintain the goodwill of customers.
(2) Inventory period costs primarily relate to inventory reserves and adjustments and net scrap sales.
(3) Other segment items consists of foreign exchange gains and losses, investment income and loss and other income and expense amounts that are included in Segment Operating Adjusted EBITDA that are not considered to be significant segment expenses.


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2025		2024		2025		2024
United States	$	280.4	$	211.2	$	816.2	$	726.5
Canada	16.6		10.9		49.6		52.5
Australia	8.3		25.0		27.5		44.3
Africa	10.9		9.1		27.4		30.3
Brazil	8.8		8.5		25.1		19.9
Europe	7.0		7.5		22.0		24.2
Asia	8.9		2.7		19.3		10.3
South America (Excluding Brazil)	4.8		3.8		11.2		12.0
Mexico	2.9		11.2		7.4		22.1
Central America (Excluding Mexico)	0.6		1.1		1.2		2.5
Other	0.9		0.4		2.9		1.5
Total foreign	69.7		80.2		193.6		219.6
Total net sales	$	350.1	$	291.4	$	1,009.8	$	946.1


	September 30,
(in millions, except percentage data)	2025		2024		$ Change		% Change


Infrastructure Solutions	$	259.5	$	351.1	$	(91.6)	(26.1)	%
Materials Solutions	190.0		124.7		65.3		52.4	%

Domestic Backlog	373.7		377.6		(3.9)		(1.0)	%
International Backlog	75.8		98.2		(22.4)		(22.8)	%


			ASTEC INDUSTRIES, INC. (Registrant)


Date: November 5, 2025			/s/ Brian J. Harris
			Brian J. Harris Chief Financial Officer (Principal Financial Officer)


Date: November 5, 2025			/s/ Robert G. Putney
			Robert G. Putney Vice President, Chief Accounting Officer and Business Development (Principal Accounting Officer)

Date	Price Target	Rating	Analyst
5/2/2024	$47.00 → $37.00	Buy → Hold	Stifel
4/8/2022	$40.00	Outperform → Neutral	Robert W. Baird
11/8/2021	$65.00 → $82.00	Neutral → Buy	Sidoti

SEC Form 10-Q filed by Astec Industries Inc.

Crush Q3 2025 with the Best AI Superconnector

Recent Analyst Ratings for $ASTE

$ASTE Press Releases

Astec Industries, Inc. (NASDAQ: ASTE) to Participate in Baird 2025 Global Industrial Conference on November 13, 2025

Astec Reports Third Quarter 2025 Results

Astec Announces Quarterly Dividend

$ASTE Analyst Ratings

Astec Industries downgraded by Stifel with a new price target

Astec Industries downgraded by Robert W. Baird with a new price target

Astec Industries upgraded by Sidoti with a new price target

$ASTE Insider Trading

Director Jackson Jeffrey T was granted 401 shares, increasing direct ownership by 5% to 8,788 units (SEC Form 4)

Group President Snyman Barend sold $117,947 worth of shares (2,498 units at $47.22), decreasing direct ownership by 14% to 15,559 units (SEC Form 4)

Director Shannon Patrick S was granted 10 shares, increasing direct ownership by 0.14% to 7,382 units (SEC Form 4)

$ASTE Insider Purchases

Merwe Jaco Van Der bought $67,400 worth of shares (2,000 units at $33.70), increasing direct ownership by 3% to 73,878 units (SEC Form 4)

Norris Michael Paul bought $33,460 worth of shares (1,000 units at $33.46), increasing direct ownership by 7% to 15,886 units (SEC Form 4)

$ASTE SEC Filings