Astec Industries (NASDAQ:ASTE) Posts Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Key Points

• Astec Industries reported $0.94 in quarterly EPS, missing analyst estimates by $0.10, while revenue of $408.1 million modestly exceeded expectations and rose from the prior year.
• Operational performance was strong: sales increased 23.6%, adjusted EBITDA rose 26% to $42.6 million, backlog jumped 57.9% to $601.1 million, and parts and service revenue grew 34.8%.
• Management reduced full-year 2026 adjusted EBITDA guidance to $160 million-$175 million from $170 million-$190 million, citing delayed asphalt-plant deliveries and uncertainty surrounding oil prices and federal highway funding.

Astec Industries (NASDAQ:ASTE - Get Free Report) issued its earnings results on Wednesday. The industrial products company reported $0.94 earnings per share for the quarter, missing analysts' consensus estimates of $1.04 by ($0.10), FiscalAI reports. Astec Industries had a return on equity of 10.09% and a net margin of 1.75%.The firm had revenue of $408.10 million for the quarter, compared to analyst estimates of $405.50 million. During the same quarter in the previous year, the firm posted $0.72 earnings per share.

Here are the key takeaways from Astec Industries' conference call:

• Record quarterly performance included net sales of $408.1 million, up 23.6%, adjusted EBITDA of $42.6 million, up 26%, and a 10.4% margin.
• Backlog increased 57.9% to $601.1 million, led by a 150.6% increase in Materials Solutions, while strong dealer utilization, rental-fleet conversions, and demand for mobile plants supported the segment’s outlook.
• Parts and service revenue rose 34.8% to $135.5 million, reaching 33.2% of quarterly sales; management expects continued aftermarket growth to support margin expansion.
• Astec reduced full-year 2026 adjusted EBITDA guidance to $160 million-$175 million from $170 million-$190 million, citing asphalt-plant delivery shifts into the fourth quarter of 2026 and first quarter of 2027 amid oil-price and Federal Highway Bill uncertainty.
• Infrastructure Solutions revenue grew 11.6%, but segment EBITDA margin declined 130 basis points due largely to product mix and lower parts margins; management expects pricing actions and stronger mobile-equipment activity to improve performance in the second half.

Astec Industries Stock Performance

ASTE stock traded down $7.21 during midday trading on Wednesday, reaching $45.04. 792,158 shares of the company were exchanged, compared to its average volume of 220,930. Astec Industries has a one year low of $38.09 and a one year high of $65.69. The firm has a market capitalization of $1.04 billion, a price-to-earnings ratio of 40.21, a price-to-earnings-growth ratio of 1.32 and a beta of 1.36. The business has a 50-day moving average price of $54.66 and a two-hundred day moving average price of $54.89. The company has a debt-to-equity ratio of 0.54, a current ratio of 2.34 and a quick ratio of 1.00.

Astec Industries Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Monday, August 10th will be given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Monday, August 10th. Astec Industries's payout ratio is 46.43%.

Institutional Trading of Astec Industries

Hedge funds have recently modified their holdings of the stock. iSAM Funds UK Ltd acquired a new position in Astec Industries in the 3rd quarter valued at about $50,000. Tower Research Capital LLC TRC lifted its position in Astec Industries by 412.0% during the second quarter. Tower Research Capital LLC TRC now owns 2,212 shares of the industrial products company's stock worth $92,000 after acquiring an additional 1,780 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new stake in Astec Industries during the fourth quarter worth approximately $127,000. Quadrant Capital Group LLC bought a new stake in shares of Astec Industries during the third quarter worth approximately $203,000. Finally, State of Wyoming bought a new stake in shares of Astec Industries during the second quarter worth approximately $206,000. Institutional investors and hedge funds own 93.16% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have commented on ASTE. Wall Street Zen cut shares of Astec Industries from a "buy" rating to a "hold" rating in a research note on Saturday, July 4th. Weiss Ratings cut shares of Astec Industries from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, May 7th. Finally, Zacks Research upgraded shares of Astec Industries from a "strong sell" rating to a "hold" rating in a research note on Monday, July 6th. Two analysts have rated the stock with a Strong Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Buy".

Astec Industries Company Profile

Astec Industries, Inc is a designer and manufacturer of specialized equipment for infrastructure-related markets. Headquartered in Chattanooga, Tennessee, the company develops, engineers and produces machinery for asphalt road-building, aggregate processing, concrete production, underground mining, landscaping and utility installation. Astec's product portfolio includes asphalt plants, portable crushers, conveyors, screening plants, mixers, continuous miners and related support equipment.

Organized into multiple operating segments—Roadbuilding; Aggregate & Mining; Energy; and Pavement Preservation & Maintenance—Astec Industries serves contractors and municipalities that build and maintain transportation, energy and utility networks.

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