Astec Industries, Inc. Q4 FY2025 earnings call

• Achieved record fourth-quarter net sales of $400.6 million. Full-year net sales up 8.1%. Adjusted EBITDA for quarter $44.7 million, margin 11.2%; for year $140.7 million, margin 10%, upper end of guidance range. - 2026 full-year adjusted EBITDA guidance $170M - $190M. - Acquisitions of TerraSource and CWMF, collectively over $200M annual revenue. - Federal funding, healthy state and local budgets, data center construction to drive demand in 2026. - Parts and service business a priority, parts sales up 19.7% in Q4, 11.5% for year. - Backlog increased to $514 million, sequential and year-over-year growth. - Teams working on TerraSource integration, including parts sales force expansion, product development. - CWMF integration underway, bringing manufacturing capability and team. - CONEXPO 2026 showcase of new products and digital platform

Infrastructure Solutions: Fourth quarter net sales $223.6 million; full-year net sales $553 million, up 18.2%, adjusted EBITDA $55.6 million, up 49.5%, margin 10.1% (up from 8% prior year). Material Solutions: Fourth quarter showed recovery; full-year parts sales $432.7 million, 30.7% of total net sales. Forestry and mobile paving equipment in Infrastructure Solutions had lower backlogs but increased in fourth quarter. Parts sales increased 19.7% in fourth quarter, 11.5% for the year, 30.7% of total net sales in 2025

• Full-year 2026 adjusted EBITDA guidance range is $170 million to $190 million. - Effective tax rate between 25% and 28%. - Capital expenditures $40 million to $50 million. - Depreciation and amortization $55 million to $65 million. - Quarterly range for adjusted SG&A $70 million to $80 million

Q: Surprised by strong backlog and guide, dig into Material Solutions.

A: Saw organic growth even without TerraSource, PSG strong in Q4, data centers affecting business.

Q: Updates on highway funding and concerns if slowed.

A: Conversations on track for infrastructure bill, funding for 2026 approved, customers focused on long term.

Q: Growth driven by top line or margin beyond throughput.

A: Synergies from deals, organic growth baked into number, highway bill could push to higher end.

Q: CWMF contribution and M&A strategy.

A: CWMF accretive day one, opportunities to grow parts mix, M&A momentum, team doing well with deals, looking for more opportunities.

Q: CWMF parts contribution and Astec's help.

A: CWMF parts mix lower, opportunity to grow, aim for great parts availability.

Q: TerraSource progress.

A: Early in improvement cycle, teams working on inventory and synergy, close to desired state in 3-6 months.

Q: Data centers and equipment deployment.

A: Majority through dealers, existing customers involved, quoting pipeline strong.

Q: EBITDA margin expansion in segments.

A: Aim to grow margins 0.7% - 1.5% annually, team ready to execute.

Q: CONEXPO impact on sales and guidance.

A: CONEXPO to show new/upgraded products, signal digital platform, boost confidence but not likely to shift guidance drastically.

Q: Digital platform progress and revenue growth.

A: Digital platform to make equipment more productive, help parts and service business, large customers standardizing.

Q: Forestry business inflection.

A: Forestry business had down cycle, recent order intake, potential to add to profitability.

Q: Parts business drivers in 2026.

A: MyAstec digital platform for easier ordering, strengthening market presence, adding salespeople for parts business