Astec Industries, Inc. announced its financial results for the fourth quarter and full year ended Dec. 31, 2024.
Jaco van der Merwe, chief executive officer, said, "I am pleased to report strong net income and quarterly records for net sales, adjusted EBITDA and adjusted earnings per share. Our efforts around aftermarket, operational excellence and our OneASTEC procurement team are starting to deliver results. I would like to thank all Astec employees for their hard work and dedication.
Our results show what our team is capable of."
Brian Harris, chief financial officer, commented, "Our focus on working capital management resulted in operating cash flows and free cash flow in the quarter of $36.6 million and $32.1 million, respectively, reduced net debt of $30 million and improved liquidity of $228.1 million. Solid earnings and a strong balance sheet position us well for the future. Many of our customers reported record fourth quarters and are cautiously optimistic. For the full year 2025, we expect further progress in consistent and profitable growth to produce adjusted EBITDA in the range of $105 million to $125 million."
Infrastructure Solutions - Road building equipment, asphalt and concrete plants, thermal storage solutions and related aftermarket parts.
- Net sales of $248.8 million increased 11.9% as the infrastructure construction market remains strong with healthy demand for asphalt and concrete plants.
- Segment Operating Adjusted EBITDA of $53.1 million increased 52.1% and Segment Operating Adjusted EBITDA margin of 21.3% increased 560 basis points.
Materials Solutions - Processing equipment to crush, screen and convey aggregates and related aftermarket parts.
- Net sales of $110.2 million decreased by 4.1% primarily due to lower domestic equipment sales attributable to finance capacity constraints with contractors and dealers resulting in fewer product conversions. Dealer quoting remains active.
- Segment Operating Adjusted EBITDA of $7.2 million decreased 13.3% and Segment Operating Adjusted EBITDA margin of 6.5% decreased 70 basis points.
Liquidity and Cash Flow
- Total liquidity was $228.1 million, consisting of $88.3 million of cash and cash equivalents available for operating purposes and $139.8 million available for additional borrowings under our revolving credit facility.
- Operating Cash Flow in the quarter was $36.6 million and Free Cash Flow in the quarter was $32.1 million.
Fourth Quarter Capital Allocation
- Capital expenditures of $4.5 million.
- Dividend payment of $0.13 per share.
Other Items
- Increased effective tax rate for the fourth quarter primarily due to one-time adjustment of prior under-accruals of state income tax expenses.