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Astec
(NASDAQ:ASTE)
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Rating:54Neutral
Price Target:
$46.00
▼(-18.44% Downside)
Action:Reiterated
Date:08/06/26
Overall score is held back primarily by weak technicals (downtrend and negative momentum) and a high P/E that limits valuation support. Financial performance is improving but still constrained by margin pressure, higher leverage, and uneven cash-flow history. The latest earnings call was a positive offset due to strong demand indicators (orders/backlog and parts & service growth), though tempered by lowered full-year EBITDA guidance on delivery timing and mix-driven margin headwinds.
Positive Factors
Recurring aftermarket growth
A growing aftermarket contribution can make revenue and margins more resilient than equipment sales alone. The expanding installed-base support business may improve customer retention and provide recurring parts and service demand.
Negative Factors
Persistent margin compression
Thin and declining margins leave limited protection against input-cost inflation, execution issues, or unfavorable product mix. Greater mobile-equipment exposure and parts margin pressure could constrain operating leverage even if revenue continues growing.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket growth
A growing aftermarket contribution can make revenue and margins more resilient than equipment sales alone. The expanding installed-base support business may improve customer retention and provide recurring parts and service demand.
Read all positive factors
Astec (ASTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$953.25M
Dividend Yield1.25%
Average Volume (3M)184.10K
Price to Earnings (P/E)48.5
Beta (1Y)1.22
Revenue Growth18.70%
EPS Growth-57.51%
CountryUS
Employees4,468
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.86
Shares Outstanding23,025,368
10 Day Avg. Volume156,344
30 Day Avg. Volume184,103
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.45
Price to Sales (P/S)0.70
P/FCF Ratio46.13
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.41
Revenue Forecast (FY)$1.62B
Astec Business Overview & Revenue Model
Company Description
Astec Industries, Inc. is a company dedicated to the creation, production, and global distribution of specialized machinery and essential components. These products primarily support road construction and various other heavy building and civil eng...
How the Company Makes Money
Astec primarily makes money by selling capital equipment and providing recurring aftermarket support to owners and operators of its machinery. A major revenue stream is the sale of new equipment systems and plants (for example, asphalt mixing plan...
Astec Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and financial picture: record revenues and adjusted EBITDA, strong parts & service growth, significant backlog and order momentum (especially in Material Solutions), successful new product launches, and healthy liquidity. Primary negatives are timing-related — delayed asphalt plant deliveries causing a downward revision to full-year adjusted EBITDA guidance and some margin compression in Infrastructure Solutions due to mix shifts and parts margin pressure. Management remains confident in demand and long-term drivers, and many of the challenges are timing or macro-related rather than demand collapses.Positive Updates
Record Revenue and Adjusted EBITDA
Net sales of $408.1M, up 23.6% year-over-year; adjusted EBITDA of $42.6M, up 26% year-over-year; adjusted EBITDA margin of 10.4%, up 20 basis points; adjusted EPS $0.94 vs $0.90 prior-year quarter.
Negative Updates
Revised Full-Year Adjusted EBITDA Guidance
Full-year 2026 adjusted EBITDA guidance reduced from prior $170M-$190M to $160M-$175M, primarily due to timing shifts in asphalt plant deliveries into Q4 2026 and Q1 2027; management expects H2 split roughly 1/3 Q3 and 2/3 Q4.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Adjusted EBITDA
Net sales of $408.1M, up 23.6% year-over-year; adjusted EBITDA of $42.6M, up 26% year-over-year; adjusted EBITDA margin of 10.4%, up 20 basis points; adjusted EPS $0.94 vs $0.90 prior-year quarter.
Read all positive updates
Company Guidance
Management revised full-year 2026 adjusted EBITDA guidance to $160–$175 million (previously $170–$190 million), modeling second-half adjusted EBITDA weighted roughly 1/3 in Q3 and 2/3 in Q4; other 2026 guidance items include an effective tax rate of 26%–30%, depreciation & amortization of $55–$65 million, capital expenditures of $35–$45 million, quarterly adjusted SG&A of $70–$75 million, and interest expense of about $7 million. The revision is provided against a strong Q2 operating backdrop: net sales of $408.1 million (+23.6% YoY), adjusted EBITDA $42.6 million (+26%) and margin 10.4% (+20 bps), adjusted EPS $0.94, parts & service revenue $135.5 million (+34.8%) representing 33.2% of sales for the quarter (35% YTD), backlog of $601.1 million (+57.9%), implied orders of $460 million (+49.1% YoY, +6.7% sequentially), Material Solutions net sales $179.8 million (+43%) with segment adjusted EBITDA $22.1 million (+54.5%, 12.3% margin), and Infrastructure Solutions net sales $228.3 million (+11.6%); liquidity stood at $75.7 million cash, $190.1 million available credit (total $265.8 million) with net leverage 2.2x (target range 1.5–2.5x, expected ~1.7x by year-end).Astec Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56B | 1.41B | 1.31B | 1.34B | 1.27B | 1.10B |
| Gross Profit | 403.70M | 374.20M | 327.90M | 331.10M | 264.10M | 249.50M |
| EBITDA | 106.60M | 107.90M | 51.40M | 115.00M | 69.90M | 61.30M |
| Net Income | 19.60M | 38.80M | 4.30M | 33.50M | -100.00K | 15.80M |
Balance Sheet | ||||||
| Total Assets | 1.42B | 1.37B | 1.04B | 1.06B | 1.01B | 905.80M |
| Cash, Cash Equivalents and Short-Term Investments | 78.60M | 72.00M | 91.30M | 68.90M | 66.70M | 142.70M |
| Total Debt | 393.40M | 347.90M | 118.30M | 83.10M | 87.70M | 2.90M |
| Total Liabilities | 726.40M | 685.60M | 406.00M | 405.60M | 387.50M | 254.50M |
| Stockholders Equity | 689.10M | 681.70M | 637.80M | 653.40M | 626.90M | 650.80M |
Cash Flow | ||||||
| Free Cash Flow | 31.80M | 21.50M | 2.50M | -6.30M | -114.60M | -12.70M |
| Operating Cash Flow | 80.20M | 61.40M | 23.00M | 27.80M | -73.90M | 7.40M |
| Investing Cash Flow | -363.80M | -287.80M | -18.00M | -12.90M | -53.20M | -18.40M |
| Financing Cash Flow | 271.50M | 206.10M | 24.40M | -18.30M | 60.10M | -12.10M |
Astec Technical Analysis
Negative
56.40
Price Trends
52.58
Negative
53.61
Negative
51.58
Negative
Market Momentum
-3.41
Positive
27.03
Positive
13.62
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASTE, the sentiment is Negative. The current price of 56.4 is above the 20-day moving average (MA) of 47.72, above the 50-day MA of 52.58, and above the 200-day MA of 51.58, indicating a bearish trend. The MACD of -3.41 indicates Positive momentum. The RSI at 27.03 is Positive, neither overbought nor oversold. The STOCH value of 13.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASTE.
Astec Risk Analysis
Astec disclosed 31 risk factors in its most recent earnings report. Astec reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Astec Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.14B | 21.82 | 10.73% | 1.30% | -7.37% | -25.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $597.63M | -5.06 | -25.53% | 4.37% | -11.14% | -614.21% | |
57 Neutral | $513.78M | -1.61 | -27.20% | 1.74% | 55.23% | -1626.88% | |
54 Neutral | $953.25M | 48.50 | 2.88% | 0.92% | 18.70% | -57.51% | |
54 Neutral | $490.48M | -6.33 | -22.27% | 2.40% | -17.26% | 19.39% | |
45 Neutral | $414.36M | -5.42 | -14.76% | ― | 4.69% | -281.71% |
* Industrials Sector Average
ASTE
Astec
41.87
-1.22
-2.82%
CMCO
Columbus Mckinnon
17.33
3.61
26.29%
LNN
Lindsay
116.14
-20.32
-14.89%
TWI
Titan International
6.67
-1.86
-21.81%
WNC
Wabash National
11.67
1.87
19.09%
HY
Hyster-Yale Materials Handling
32.93
-2.50
-7.06%
Astec Corporate Events
Business Operations and StrategyExecutive/Board Changes
Astec Adds Independent Director, Strengthens Board Governance
Positive
Jul 30, 2026
On July 30, 2026, Astec Industries reported that its board of directors had voted on July 27, 2026 to expand the board from nine to ten members and appoint William (Bill) E. Waltz as an independent director, effective October 29, 2026. Waltz, curr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.