Astec Industries (NASDAQ:ASTE) executives told investors the company delivered “strong fourth quarter and full year results” in 2025, highlighting record quarterly net sales, expanding profitability, and a larger backlog heading into 2026. Management pointed to improving execution, a growing parts and service business, and infrastructure and data center-related demand as key drivers, while acknowledging continued softness in certain equipment categories such as forestry and mobile paving.
Record fourth-quarter sales and higher full-year profitability
Chief Executive Officer Jaco van der Merwe said Astec posted record fourth-quarter net sales of $400.6 million, while full-year net sales increased 8.1% on a combination of organic and inorganic growth. Adjusted EBITDA for the quarter was $44.7 million, translating to an 11.2% adjusted EBITDA margin. For the full year, adjusted EBITDA was $140.7 million, which management said was at the upper end of its guidance range, with a 10% adjusted EBITDA margin—up 140 basis points versus the prior year.
Segment performance: Infrastructure steady; Materials rebounds
In Infrastructure Solutions, fourth-quarter net sales were $223.6 million, down from $248.8 million in the prior-year quarter. Management said solid demand for asphalt and concrete plants was offset by softness in mobile paving and forestry equipment. Aftermarket parts sales in the segment were “relatively flat” but remained at “healthy levels.” The segment delivered a fourth-quarter adjusted EBITDA margin of 15.8%, compared with an “exceptional” 21.3% margin a year earlier.
For the full year, Infrastructure Solutions net sales increased $20 million, or 2.4%. Segment operating adjusted EBITDA rose to $134.3 million from $121.5 million, and the full-year adjusted EBITDA margin improved to 15.7% from 14.5%.
Material Solutions showed a sharper acceleration. Harris said fourth-quarter net sales and segment operating adjusted EBITDA increased “substantially” versus 2024, driven by “net favorable volume and mix from inorganic and organic operations,” along with favorable pricing. Fourth-quarter adjusted EBITDA margin increased 530 basis points to 11.8%. For the full year, Material Solutions net sales increased 18.2% to $553 million, while adjusted EBITDA climbed 49.5% to $55.6 million, with the margin rising to 10.1% from 8%.
Backlog rises to $514 million as orders improve
Astec reported backlog of $514 million, up 14.4% sequentially and 22.5% year over year, supported by organic and inorganic activity. Van der Merwe said Infrastructure Solutions backlog reflected strong order activity for asphalt and concrete plants, partially offset by softer demand for mobile and forestry equipment. Material Solutions backlog increased $105.8 million, or 92.7%, year over year in the fourth quarter, and rose $29.9 million, or 15.7%, sequentially.
The company also highlighted fourth-quarter “implied orders,” which were up $46 million, or 11%, from the prior quarter in 2024. Infrastructure Solutions orders rose 31%, while Material Solutions declined 6.8%. Consolidated book-to-bill was 116%, with segment book-to-bill ratios of 115% (Infrastructure Solutions) and 117% (Material Solutions).
Acquisitions and integration: TerraSource and CWMF
Management emphasized recent acquisitions as a contributor to growth and to the 2026 outlook. Van der Merwe said TerraSource and CWMF collectively represent “over $200 million of annual revenue acquired by Astec.” As part of TerraSource integration, the company plans to unveil new brand designs at CONEXPO that incorporate the Astec name and logo with TerraSource legacy brands including Gundlach, Jeffrey Rader, Pennsylvania Crusher, and Elgin.
Executives described integration work underway, including expanding the parts sales force, coordinating sales channels, cross-selling strategies, new product development, and factory footprint optimization, with benefits expected to be realized in 2026. On TerraSource specifically, van der Merwe said performance over the first six months of ownership was “in line with our expectations.” He added the company has calculated required inventory levels to improve parts availability and expects that within three to six months TerraSource will be “very close to where we want them to be,” while also pursuing purchasing synergies.
Astec also closed the CWMF transaction effective January 1, 2026. Management described CWMF as a manufacturer of portable and stationary asphalt plant equipment and parts, primarily concentrated in the Midwest, South Central, and Great Lakes regions. Van der Merwe said the deal is expected to be “accretive from day one” and noted opportunities to expand CWMF’s parts mix, which he said is currently “a little bit lower” than Astec’s traditional asphalt business.
2026 outlook: higher EBITDA range, continued margin focus
Astec said it is “optimistic about 2026” due to progress on internal initiatives, favorable customer sentiment, and the stability provided by federal infrastructure funding. For 2026, the company provided the following guidance items discussed on the call:
- Adjusted EBITDA: $170 million to $190 million
- Effective tax rate: 25% to 28%
- Capital expenditures: $40 million to $50 million
- Depreciation and amortization: $55 million to $65 million
- Adjusted SG&A (quarterly): $70 million to $80 million
In Q&A, van der Merwe said the bridge from 2025 to 2026 includes a full year contribution from TerraSource, a full year contribution from CWMF, and synergies from both deals, along with anticipated organic growth. He added that if a new highway or infrastructure bill is approved, the company “could probably go to the higher end of the range.” He also reiterated Astec’s ongoing margin improvement target—previously described as improving margins by about 0.7% to 1.5% per year—and said management intends to continue those gains in 2026.
On demand drivers, management cited federal and state transportation budgets, as well as construction of data centers, as supportive of multi-year demand. Van der Merwe said data center-related crushing and screening demand is largely being met by existing customers through Astec’s dealer network, and while the company has not yet quantified data center exposure, he pointed to visibility in the quoting pipeline and steps to add capacity at facilities to support demand.
Astec also highlighted growth in its parts business. Van der Merwe said parts sales rose 19.7% versus the prior-year fourth quarter, and full-year parts sales were $432.7 million, up 11.5%, representing 30.7% of total net sales. Management discussed initiatives including MyAstec (a digital platform intended to simplify parts ordering via a “digital twin” approach) and investments in sales coverage and parts availability, including at TerraSource.
On liquidity, Harris said Astec ended the quarter with $70 million in cash and cash equivalents and $244.7 million of available credit capacity, for total liquidity of $314.7 million. Net debt to adjusted EBITDA was approximately 2x, which he said is within the company’s target range of 1.5x to 2.5x.
About Astec Industries (NASDAQ:ASTE)
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.
