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Astec Industries (ASTE) Down 4% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Astec Industries (ASTE - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Astec Industries due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Astec Industries, Inc. before we dive into how investors and analysts have reacted as of late.
Astec's Q2 Earnings Miss Estimates on Higher Interest Expense
Astec reported adjusted earnings of 94 cents per share for the second quarter of 2026, up 4.4% year over year but missed the Zacks Consensus Estimate of $1.05 by 10.5%.
Including one-time items, earnings per share in the quarter were 45 cents compared with 72 cents in the year-ago quarter.
Net sales increased 23.6% year over year to $408.1 million and surpassed the Zacks Consensus Estimate of $403 million by 1.2%. The increase was primarily driven by net favorable volume and mix, along with favorable pricing that generated increases in equipment sales of $42.6 million and parts and service revenues of $35 million. Sales from acquired businesses also contributed $48.6 million in net sales.
Astec ended the quarter with a backlog of $601 million, reflecting a 58% year-over-year increase led by strong demand for aggregate processing equipment. Materials Solutions backlog surged 150.6% to $312.5 million, while Infrastructure Solutions segment’s backlog increased 12.7% to $288.6 million. Overall implied orders reached roughly $460 million in the quarter, up 6.7% sequentially, while the consolidated book-to-bill ratio was 113%.
Adjusted Operating Profit Up Y/Y Despite Cost Pressure
Cost of sales rose 24.5% year over year to $301.3 million. Gross profit increased 20.9% year over year to $106.8 million. Net favorable volume and mix, coupled with favorable pricing and lower warranty program, were partially offset by manufacturing inefficiencies and the impact of inflation on materials, labor and overhead. However, gross margin contracted to 26.2% from 26.7%.
Selling, general and administrative expenses increased 27.6% to $85.5 million. The rise reflected amortization of acquired intangibles, higher personnel, technology and support costs, dealer commissions as well as increased costs related to Astec’s strategic transformation program.
The company reported operating profit of $20.4 million in the second quarter of 2026 compared with $21.4 million in the second quarter of 2025. Adjusted operating income advanced 31.3% to $35.2 million, while adjusted operating margin expanded 50 basis points to 8.6%. Adjusted EBITDA climbed 26% to $42.6 million, with the corresponding margin improving 20 basis points to 10.4%.
Interest expense soared 238% year over year to $7.1 million primarily due to higher average outstanding borrowings along with increased interest rates on the 2025 Credit Facility compared with Astec’s previous credit facility.
Astec's Materials Solutions Drives Growth
Materials Solutions net sales gained 43% year over year to $179.8 million, reflecting stronger dealer and customer demand for aggregate crushing, screening and conveying equipment. Segment operating adjusted EBITDA rose 54.5% to $22.1 million. Operating adjusted EBITDA margin expanded 90 basis points to 12.3%.
Implied orders for the segment increased 45.3% sequentially to $255.7 million, leading to a book-to-bill ratio of 142.2%. Materials Solutions backlog soared 150.6% year over year to $312.5 million at the second-quarter end.
Infrastructure Orders Face Timing Pressure
The Infrastructure Solutions segment generated sales of $228.3 million, up 11.6% year over year. Growth was supported by sustained demand in concrete, mobile paving and forestry equipment, and inorganic contributions. Segment operating adjusted EBITDA increased 2.2% to $32.9 million. The segment margin contracted 130 basis points to 14.4%.
Implied orders fell 20% sequentially to $204.3 million, and the book-to-bill ratio stood at 89.5%. Astec attributed the weakness primarily to conservatism among certain asphalt plant customers. Infrastructure backlog still increased 12.7% to $288.6 million.
Astec's Cash Flow and Liquidity Stay Healthy
For the first six months of 2026, operating cash flow increased to $52.8 million from $33.4 million, while free cash flow rose to $37.3 million from $25.6 million. For the first half of fiscal 2026, capital expenditures increased to $15.5 million from $7.8 million in the prior-year period.
Total liquidity was $265.8 million, comprising $75.7 million of cash available for operating purposes and $190.1 million of revolver availability. Net debt to trailing 12-month adjusted EBITDA was about 2.2x, remaining within management’s stated 1.5-2.5x target range.
Astec Cuts 2026 Adjusted EBITDA Guidance
Astec lowered its full-year 2026 adjusted EBITDA guidance to $160-$175 million from its previous projection of $170-$190 million. Management cited macro-driven factors affecting the timing of asphalt plant shipments within Infrastructure Solutions.
The company nevertheless described the overall Infrastructure Solutions market as healthy, with solid concrete-equipment demand and improvement in forestry and mobile paving. In Materials Solutions, management expects federal, state and local infrastructure projects, along with data-center construction, to support multi-year demand for aggregate equipment.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -32% due to these changes.
VGM Scores
At this time, Astec Industries has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Astec Industries has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
View the Zacks #1 Rank List
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Astec Industries (ASTE) Down 4% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Astec Industries (ASTE - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Astec Industries due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Astec Industries, Inc. before we dive into how investors and analysts have reacted as of late.
Astec's Q2 Earnings Miss Estimates on Higher Interest Expense
Astec reported adjusted earnings of 94 cents per share for the second quarter of 2026, up 4.4% year over year but missed the Zacks Consensus Estimate of $1.05 by 10.5%.
Including one-time items, earnings per share in the quarter were 45 cents compared with 72 cents in the year-ago quarter.
Net sales increased 23.6% year over year to $408.1 million and surpassed the Zacks Consensus Estimate of $403 million by 1.2%. The increase was primarily driven by net favorable volume and mix, along with favorable pricing that generated increases in equipment sales of $42.6 million and parts and service revenues of $35 million. Sales from acquired businesses also contributed $48.6 million in net sales.
Astec ended the quarter with a backlog of $601 million, reflecting a 58% year-over-year increase led by strong demand for aggregate processing equipment. Materials Solutions backlog surged 150.6% to $312.5 million, while Infrastructure Solutions segment’s backlog increased 12.7% to $288.6 million. Overall implied orders reached roughly $460 million in the quarter, up 6.7% sequentially, while the consolidated book-to-bill ratio was 113%.
Adjusted Operating Profit Up Y/Y Despite Cost Pressure
Cost of sales rose 24.5% year over year to $301.3 million. Gross profit increased 20.9% year over year to $106.8 million. Net favorable volume and mix, coupled with favorable pricing and lower warranty program, were partially offset by manufacturing inefficiencies and the impact of inflation on materials, labor and overhead. However, gross margin contracted to 26.2% from 26.7%.
Selling, general and administrative expenses increased 27.6% to $85.5 million. The rise reflected amortization of acquired intangibles, higher personnel, technology and support costs, dealer commissions as well as increased costs related to Astec’s strategic transformation program.
The company reported operating profit of $20.4 million in the second quarter of 2026 compared with $21.4 million in the second quarter of 2025. Adjusted operating income advanced 31.3% to $35.2 million, while adjusted operating margin expanded 50 basis points to 8.6%. Adjusted EBITDA climbed 26% to $42.6 million, with the corresponding margin improving 20 basis points to 10.4%.
Interest expense soared 238% year over year to $7.1 million primarily due to higher average outstanding borrowings along with increased interest rates on the 2025 Credit Facility compared with Astec’s previous credit facility.
Astec's Materials Solutions Drives Growth
Materials Solutions net sales gained 43% year over year to $179.8 million, reflecting stronger dealer and customer demand for aggregate crushing, screening and conveying equipment. Segment operating adjusted EBITDA rose 54.5% to $22.1 million. Operating adjusted EBITDA margin expanded 90 basis points to 12.3%.
Implied orders for the segment increased 45.3% sequentially to $255.7 million, leading to a book-to-bill ratio of 142.2%. Materials Solutions backlog soared 150.6% year over year to $312.5 million at the second-quarter end.
Infrastructure Orders Face Timing Pressure
The Infrastructure Solutions segment generated sales of $228.3 million, up 11.6% year over year. Growth was supported by sustained demand in concrete, mobile paving and forestry equipment, and inorganic contributions. Segment operating adjusted EBITDA increased 2.2% to $32.9 million. The segment margin contracted 130 basis points to 14.4%.
Implied orders fell 20% sequentially to $204.3 million, and the book-to-bill ratio stood at 89.5%. Astec attributed the weakness primarily to conservatism among certain asphalt plant customers. Infrastructure backlog still increased 12.7% to $288.6 million.
Astec's Cash Flow and Liquidity Stay Healthy
For the first six months of 2026, operating cash flow increased to $52.8 million from $33.4 million, while free cash flow rose to $37.3 million from $25.6 million. For the first half of fiscal 2026, capital expenditures increased to $15.5 million from $7.8 million in the prior-year period.
Total liquidity was $265.8 million, comprising $75.7 million of cash available for operating purposes and $190.1 million of revolver availability. Net debt to trailing 12-month adjusted EBITDA was about 2.2x, remaining within management’s stated 1.5-2.5x target range.
Astec Cuts 2026 Adjusted EBITDA Guidance
Astec lowered its full-year 2026 adjusted EBITDA guidance to $160-$175 million from its previous projection of $170-$190 million. Management cited macro-driven factors affecting the timing of asphalt plant shipments within Infrastructure Solutions.
The company nevertheless described the overall Infrastructure Solutions market as healthy, with solid concrete-equipment demand and improvement in forestry and mobile paving. In Materials Solutions, management expects federal, state and local infrastructure projects, along with data-center construction, to support multi-year demand for aggregate equipment.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -32% due to these changes.
VGM Scores
At this time, Astec Industries has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Astec Industries has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.