Astec Industries, Inc. ( (ASTE) ) has released its Q1 earnings. Here is a breakdown of the information Astec Industries, Inc. presented to its investors.
Astec Industries, Inc., a manufacturer of specialized equipment for asphalt road building, aggregate processing, and concrete production, reported its financial results for the first quarter of 2025, showcasing significant growth and strategic expansion plans.
In the first quarter of 2025, Astec Industries reported net sales of $329.4 million, marking a 6.5% increase compared to the same period last year. The company also achieved a strong net income of $14.3 million and an adjusted net income of $20.3 million. A notable highlight of the quarter was the announcement of a definitive agreement to acquire TerraSource Holdings, LLC for $245 million, which is expected to enhance Astec’s market presence and financial performance.
Key financial metrics for the quarter included an EBITDA of $27.5 million and an adjusted EBITDA of $35.2 million. The Infrastructure Solutions segment saw a 16.7% increase in net sales, driven by strong demand in the infrastructure construction market. However, the Materials Solutions segment experienced a 12.7% decline in net sales due to lower domestic equipment sales. The acquisition of TerraSource is anticipated to provide significant growth opportunities and improve margins.
Astec’s liquidity position remains robust with total liquidity of $238.9 million. The company generated an operating cash flow of $20.5 million and a free cash flow of $16.6 million during the quarter. The acquisition of TerraSource is expected to be accretive from day one, aligning with Astec’s disciplined growth strategy.
Looking ahead, Astec Industries remains focused on delivering consistent growth and profitability. The management is optimistic about the strategic benefits of the TerraSource acquisition, which is expected to close early in the third quarter of 2025, enhancing the company’s aftermarket and recurring revenue growth profile.