Astec Industries announced its financial results for the second quarter ended June 30, 2025, including $16.7 million in net income..
"Astec reported another strong quarter building on its strategic initiatives to deliver consistency, profitability and growth," said Jaco van der Merwe, chief executive officer. "Operational efforts continue to gain traction, manufacturing and procurement efforts are driving enhanced efficiencies and increases were achieved in net income, EBITDA and earnings per share.
On July 1, 2025, we completed the acquisition of TerraSource, an adjacent manufacturer of materials processing equipment and related aftermarket parts. TerraSource has annual revenues in excess of $150 million, with over 60% of revenues from aftermarket parts and services. We are excited to welcome TerraSource employees to the Astec team."
Brian Harris, chief financialoOfficer, commented, "We were pleased to generate net income of $16.7 million and an adjusted EBITDA of $33.7 million in the second quarter, compared to a $14.0 million net loss and $27.6 million of adjusted EBITDA in the second quarter last year, along with strong free cash flows. We are updating the lower end of our full year guidance from $105 million to $110 million on our core business while keeping the top end of the range unchanged at $125 million. We are also increasing our guidance to reflect the expected second half contributions by TerraSource. We expect TerraSource to provide adjusted EBITDA in the $13 million to $17 million range, bringing our consolidated guidance expectations for adjusted EBITDA to a range of $123 million to $142 million."
Astec's two reportable segments are comprised of sites based upon the nature of the products or services produced, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations.
Infrastructure Solutions - Road building equipment, asphalt and concrete plants, thermal storage solutions and related aftermarket parts.
- Net sales of $204.6 million decreased 7.6% primarily due to a challenging environment for mobile paving and forestry equipment. Demand for asphalt and concrete plants remained at healthy levels. Parts and Service remained stable.
- Segment Operating Adjusted EBITDA of $32.2 million increased 18.4% and Segment Operating Adjusted EBITDA margin of 15.7% increased 340 basis points.
Materials Solutions - Processing equipment to crush, screen and convey aggregates and related aftermarket parts.
- Net sales of $125.7 million increased by 1.3%. We were encouraged by continued positive development of Implied Orders. We have seen initial signs of dealer inventory replenishment as rental utilization remains strong.
- Segment Operating Adjusted EBITDA of $14.2 million increased 39.2% and Segment Operating Adjusted EBITDA margin of 11.3% increased 310 basis points.
Liquidity and Cash Flow
- Our total liquidity was $247.6 million, consisting of $87.8 million of cash and cash equivalents available for operating purposes and $159.8 million available for additional borrowings under our revolving credit facility.
- Operating Cash Flow in the quarter was $12.9 million and Free Cash Flow in the quarter was $9.0 million.
- In connection with the closing of the TerraSource acquisition, entered into a new credit agreement providing for (i) a revolving credit facility, a term loan facility, a swing line facility and a letter of credit facility, in an initial aggregate amount of up to $600.0 million, and (ii) an incremental facilities limit in an aggregate amount not to exceed $150.0 million.
Second Quarter Capital Allocation
- Capital expenditures of $3.9 million.
- Dividend payment of $0.13 per share.