Astec Reports Record Fourth Quarter, Full Year 2024 Results
Astec Industries (NASDAQ: ASTE) reported record fourth quarter 2024 results with net sales of $359.0 million and net income of $21.1 million. The company achieved adjusted net income of $27.2 million and record adjusted EPS of $1.19.
The Infrastructure Solutions segment saw net sales increase 11.9% to $248.8 million with strong demand for asphalt and concrete plants. However, the Materials Solutions segment experienced a 4.1% decrease in net sales to $110.2 million due to finance capacity constraints.
The company generated operating cash flow of $36.6 million and free cash flow of $32.1 million. Total liquidity stood at $228.1 million. For 2025, Astec expects adjusted EBITDA between $105-125 million, indicating continued growth momentum.
Astec Industries (NASDAQ: ASTE) ha riportato risultati record per il quarto trimestre del 2024, con vendite nette di 359,0 milioni di dollari e un reddito netto di 21,1 milioni di dollari. L'azienda ha raggiunto un reddito netto rettificato di 27,2 milioni di dollari e un utile per azione rettificato record di 1,19 dollari.
Il segmento Soluzioni per le Infrastrutture ha registrato un aumento delle vendite nette del 11,9%, raggiungendo i 248,8 milioni di dollari, grazie a una forte domanda di impianti per asfalto e calcestruzzo. Tuttavia, il segmento Soluzioni per i Materiali ha subito una diminuzione del 4,1% nelle vendite nette, scendendo a 110,2 milioni di dollari a causa di vincoli nella capacità finanziaria.
L'azienda ha generato un flusso di cassa operativo di 36,6 milioni di dollari e un flusso di cassa libero di 32,1 milioni di dollari. La liquidità totale si è attestata a 228,1 milioni di dollari. Per il 2025, Astec prevede un EBITDA rettificato compreso tra 105 e 125 milioni di dollari, indicando una continua spinta alla crescita.
Astec Industries (NASDAQ: ASTE) reportó resultados récord para el cuarto trimestre de 2024, con ventas netas de 359,0 millones de dólares y un ingreso neto de 21,1 millones de dólares. La compañía logró un ingreso neto ajustado de 27,2 millones de dólares y un EPS ajustado récord de 1,19 dólares.
El segmento de Soluciones de Infraestructura vio un aumento del 11,9% en ventas netas, alcanzando los 248,8 millones de dólares, gracias a una fuerte demanda de plantas de asfalto y concreto. Sin embargo, el segmento de Soluciones de Materiales experimentó una disminución del 4,1% en ventas netas, bajando a 110,2 millones de dólares debido a limitaciones en la capacidad financiera.
La compañía generó un flujo de caja operativo de 36,6 millones de dólares y un flujo de caja libre de 32,1 millones de dólares. La liquidez total se situó en 228,1 millones de dólares. Para 2025, Astec espera un EBITDA ajustado entre 105 y 125 millones de dólares, lo que indica un continuo impulso de crecimiento.
Astec Industries (NASDAQ: ASTE)는 2024년 4분기 기록적인 실적을 보고하며, 순매출이 3억 5,900만 달러에 달하고 순이익은 2,110만 달러에 달했습니다. 이 회사는 조정된 순이익 2,720만 달러와 기록적인 조정 EPS 1.19달러를 달성했습니다.
인프라 솔루션 부문은 순매출이 11.9% 증가하여 2억 4,880만 달러에 도달했으며, 아스팔트 및 콘크리트 공장에 대한 강한 수요가 있었습니다. 그러나 자재 솔루션 부문은 재정적 용량 제약으로 인해 순매출이 4.1% 감소하여 1억 1,020만 달러에 그쳤습니다.
회사는 3,660만 달러의 운영 현금 흐름과 3,210만 달러의 자유 현금 흐름을 생성했습니다. 총 유동성은 2억 2,810만 달러에 달했습니다. 2025년을 위해 Astec은 조정된 EBITDA가 1억 500만 달러에서 1억 2,500만 달러 사이에 이를 것으로 예상하며, 지속적인 성장 모멘텀을 나타냅니다.
Astec Industries (NASDAQ: ASTE) a annoncé des résultats record pour le quatrième trimestre 2024, avec des ventes nettes de 359,0 millions de dollars et un revenu net de 21,1 millions de dollars. L'entreprise a atteint un revenu net ajusté de 27,2 millions de dollars et un bénéfice par action ajusté record de 1,19 dollar.
Le segment Solutions d'Infrastructure a connu une augmentation des ventes nettes de 11,9%, atteignant 248,8 millions de dollars, soutenue par une forte demande pour les usines d'asphalte et de béton. Cependant, le segment Solutions de Matériaux a enregistré une diminution de 4,1% des ventes nettes, tombant à 110,2 millions de dollars en raison de contraintes de capacité financière.
L'entreprise a généré un flux de trésorerie opérationnel de 36,6 millions de dollars et un flux de trésorerie libre de 32,1 millions de dollars. La liquidité totale s'élevait à 228,1 millions de dollars. Pour 2025, Astec prévoit un EBITDA ajusté compris entre 105 et 125 millions de dollars, indiquant une dynamique de croissance continue.
Astec Industries (NASDAQ: ASTE) berichtete über rekordverdächtige Ergebnisse im vierten Quartal 2024 mit einem Nettoumsatz von 359,0 Millionen Dollar und einem Nettogewinn von 21,1 Millionen Dollar. Das Unternehmen erreichte einen bereinigten Nettogewinn von 27,2 Millionen Dollar und einen rekordverdächtigen bereinigten Gewinn pro Aktie von 1,19 Dollar.
Der Bereich Infrastruktur Lösungen verzeichnete einen Anstieg des Nettoumsatzes um 11,9% auf 248,8 Millionen Dollar, unterstützt durch eine starke Nachfrage nach Asphalt- und Betonanlagen. Der Bereich Material Lösungen hingegen erlebte einen Rückgang des Nettoumsatzes um 4,1% auf 110,2 Millionen Dollar aufgrund finanzieller Kapazitätsengpässe.
Das Unternehmen generierte einen operativen Cashflow von 36,6 Millionen Dollar und einen freien Cashflow von 32,1 Millionen Dollar. Die Gesamtl liquidität belief sich auf 228,1 Millionen Dollar. Für 2025 erwartet Astec ein bereinigtes EBITDA zwischen 105 und 125 Millionen Dollar, was auf anhaltendes Wachstum hindeutet.
- Record Q4 net sales of $359.0M
- Record adjusted EPS of $1.19
- Infrastructure Solutions segment sales up 11.9%
- Strong operating cash flow of $36.6M
- Healthy liquidity position of $228.1M
- Materials Solutions segment sales declined 4.1%
- Materials Solutions EBITDA margin decreased 70 basis points
- Increased effective tax rate due to state income tax under-accruals
Insights
Astec Industries delivered exceptional Q4 2024 results, setting multiple quarterly records that signal significant operational improvement. The record net sales of $359.0 million alongside adjusted EBITDA of $47.9 million and adjusted EPS of $1.19 demonstrate the company's successful execution of its strategic initiatives.
The Infrastructure Solutions segment was the standout performer, with sales climbing 11.9% and segment adjusted EBITDA surging an impressive 52.1%. The 560 basis point margin expansion to 21.3% reflects both strong market demand and internal efficiency improvements. This performance indicates Astec is capturing significant value from the robust infrastructure construction market, particularly in asphalt and concrete plants.
Meanwhile, the Materials Solutions segment faced challenges with a 4.1% sales decline and a 70 basis point margin contraction. The financing constraints affecting equipment sales point to potential industry-wide credit tightening rather than company-specific issues. The active dealer quoting suggests underlying demand remains intact despite conversion challenges.
Working capital management has yielded impressive results, with $36.6 million in operating cash flow and $32.1 million in free cash flow. The $30 million reduction in net debt and improved liquidity position of $228.1 million provide Astec with significant financial flexibility to weather potential market volatility and pursue strategic opportunities.
Management's 2025 adjusted EBITDA guidance of $105-125 million suggests continued confidence in the company's growth trajectory, though the wide range indicates some uncertainty in market conditions. The organizational realignment of Australian and Latin American operations, along with Astec Digital, represents a strategic refinement that should enhance operational focus.
The increased effective tax rate due to state income tax under-accruals appears to be a one-time adjustment rather than a structural change, though investors should monitor tax rates in future quarters for normalization.
Astec's Q4 results reveal a tale of two segments that provides important insights into the current infrastructure equipment market dynamics. The Infrastructure Solutions segment's 11.9% sales growth coupled with a remarkable 52.1% EBITDA surge demonstrates exceptional operational leverage that goes beyond mere market strength. This 560 basis point margin expansion to 21.3% suggests the company has significantly optimized its production processes and supply chain while benefiting from strong pricing power in asphalt and concrete plant systems.
The robust infrastructure segment performance likely stems from a combination of factors: increased infrastructure spending, aging equipment replacement cycles, and Astec's improved competitive positioning. The company's aftermarket focus is particularly significant as it typically generates higher margins while creating stronger customer relationships and more predictable revenue streams.
Conversely, the Materials Solutions segment's 4.1% sales decline highlights a growing financing constraint issue affecting equipment purchases industry-wide. This phenomenon is consistent with broader trends where higher interest rates and tighter lending standards are extending sales cycles for capital equipment. The active dealer quoting mentioned suggests underlying demand remains strong, indicating potential pent-up demand that could materialize as financing conditions improve.
The strategic realignment of Australian and Latin American operations into Materials Solutions creates more geographical diversification within this segment, potentially offsetting some domestic market challenges. Meanwhile, integrating Astec Digital into Infrastructure Solutions should enhance technological differentiation in their highest-performing segment.
The $105-125 million adjusted EBITDA guidance for 2025 suggests management expects the divergent segment performance to continue, with Infrastructure Solutions carrying momentum while Materials Solutions gradually recovers. The company's strong balance sheet with $228.1 million in liquidity provides substantial flexibility to weather continued financing headwinds while potentially capitalizing on acquisition opportunities in a challenging market.
Fourth Quarter 2024 Overview (all comparisons are made to the corresponding prior year fourth quarter unless otherwise specified):
- Record net sales of
$359.0 million - Strong net income of
$21.1 million ; Adjusted net income of$27.2 million - EBITDA of
$40.0 million ; Record adjusted EBITDA of$47.9 million - Diluted EPS of
$0.92 ; Record adjusted EPS of$1.19 - Operating cash flow of
$36.6 million ; Free cash flow of$32.1 million
CHATTANOOGA, Tenn., Feb. 26, 2025 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial results for the fourth quarter and full year ended December 31, 2024.
"I am pleased to report strong net income and quarterly records for net sales, adjusted EBITDA and adjusted earnings per share. Our efforts around aftermarket, operational excellence and our OneASTEC procurement team are starting to deliver results," said Jaco van der Merwe, Chief Executive Officer. "I would like to thank all Astec employees for their hard work and dedication. Our results show what our team is capable of."
Brian Harris, Chief Financial Officer, commented, "Our focus on working capital management resulted in operating cash flows and free cash flow in the quarter of
| (in millions, except per share and percentage data) | 4Q 2024 | 4Q 2023 | Change | YTD 4Q 2024 | YTD 4Q 2023 | Change | |||||||||||||||
| Net sales | $ | 359.0 | $ | 337.2 | 6.5 | % | $ | 1,305.1 | $ | 1,338.2 | (2.5) | % | |||||||||
| Infrastructure Solutions | 248.8 | 222.3 | 11.9 | % | 837.4 | 800.4 | 4.6 | % | |||||||||||||
| Material Solutions | 110.2 | 114.9 | (4.1) | % | 467.7 | 537.8 | (13.0) | % | |||||||||||||
| Backlog | 419.6 | 569.8 | (26.4) | % | 419.6 | 569.8 | (26.4) | % | |||||||||||||
| Infrastructure Solutions | 305.5 | 364.7 | (16.2) | % | 305.5 | 364.7 | (16.2) | % | |||||||||||||
| Material Solutions | 114.1 | 205.1 | (44.4) | % | 114.1 | 205.1 | (44.4) | % | |||||||||||||
| Income from operations | 34.8 | 18.9 | 84.1 | % | 23.2 | 48.6 | (52.3) | % | |||||||||||||
| Operating margin | 9.7 | % | 5.6 | % | 410 | bps | 1.8 | % | 3.6 | % | (180) | bps | |||||||||
| Effective tax rate | 33.1 | % | 14.9 | % | 1,820 | bps | 70.5 | % | 21.3 | % | 4,920 | bps | |||||||||
| Net income attributable to controlling interest | 21.1 | 14.9 | 41.6 | % | 4.3 | 33.5 | (87.2) | % | |||||||||||||
| Diluted EPS | 0.92 | 0.65 | 41.5 | % | 0.19 | 1.47 | (87.1) | % | |||||||||||||
| EBITDA (a non-GAAP measure) | 40.0 | 25.4 | 57.5 | % | 49.6 | 75.0 | (33.9) | % | |||||||||||||
| EBITDA margin (a non-GAAP measure) | 11.1 | % | 7.5 | % | 360 | bps | 3.8 | % | 5.6 | % | (180) | bps | |||||||||
| Adjusted (Non-GAAP) | |||||||||||||||||||||
| Adjusted income from operations | 42.8 | 26.3 | 62.7 | % | 86.1 | 84.1 | 2.4 | % | |||||||||||||
| Adjusted operating margin | 11.9 | % | 7.8 | % | 410 | bps | 6.6 | % | 6.3 | % | 30 | bps | |||||||||
| Adjusted effective tax rate | 31.2 | % | 17.3 | % | 1,390 | bps | 27.3 | % | 22.1 | % | 520 | bps | |||||||||
| Adjusted net income attributable to controlling interest | 27.2 | 20.6 | 32.0 | % | 56.0 | 60.8 | (7.9) | % | |||||||||||||
| Adjusted EPS | 1.19 | 0.90 | 32.2 | % | 2.45 | 2.67 | (8.2) | % | |||||||||||||
| Adjusted EBITDA | 47.9 | 32.6 | 46.9 | % | 111.8 | 110.0 | 1.6 | % | |||||||||||||
| Adjusted EBITDA margin | 13.3 | % | 9.7 | % | 360 | bps | 8.6 | % | 8.2 | % | 40 | bps | |||||||||
Segments Results
Our two reportable segments are comprised of sites based upon the nature of the products or services produced, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations. Based on a review of these factors, our Australia and LatAm sites, which were previously reported in the Infrastructure Solutions segment have moved to the Materials Solutions segment and Astec Digital, which was previously included in the Corporate and Other category has moved to the Infrastructure Solutions segment, each beginning January 1, 2024. Prior periods have been revised to reflect the changes for the segment composition for comparability.
Infrastructure Solutions - Road building equipment, asphalt and concrete plants, thermal storage solutions and related aftermarket parts.
- Net sales of
$248.8 million increased11.9% as the infrastructure construction market remains strong with healthy demand for asphalt and concrete plants. - Segment Operating Adjusted EBITDA of
$53.1 million increased52.1% and Segment Operating Adjusted EBITDA margin of21.3% increased 560 basis points.
Materials Solutions - Processing equipment to crush, screen and convey aggregates and related aftermarket parts.
- Net sales of
$110.2 million decreased by4.1% primarily due to lower domestic equipment sales attributable to finance capacity constraints with contractors and dealers resulting in fewer product conversions. Dealer quoting remains active. - Segment Operating Adjusted EBITDA of
$7.2 million decreased13.3% and Segment Operating Adjusted EBITDA margin of6.5% decreased 70 basis points.
Liquidity and Cash Flow
- Our total liquidity was
$228.1 million , consisting of$88.3 million of cash and cash equivalents available for operating purposes and$139.8 million available for additional borrowings under our revolving credit facility. - Operating Cash Flow in the quarter was
$36.6 million and Free Cash Flow in the quarter was$32.1 million .
Fourth Quarter Capital Allocation
- Capital expenditures of
$4.5 million . - Dividend payment of
$0.13 per share.
Other Items
- Increased effective tax rate for the fourth quarter primarily due to one-time adjustment of prior under-accruals of state income tax expenses.
Investor Conference Call and Webcast
Astec will conduct a conference call and live webcast today, February 26, 2025, at 8:30 A.M. Eastern Time, to review its fourth quarter and full year financial results as well as current business conditions.
To access the call, dial (888) 440-4118 on Wednesday, February 26, 2025 at least 10 minutes prior to the scheduled time for the call. International callers should dial +1 (646) 960-0833.
You may also access a live webcast of the call at: https://events.q4inc.com/attendee/355500116
You will need to give your name and company affiliation and reference Astec. An archived webcast will be available for ninety days at www.astecindustries.com.
A replay of the call can be accessed until March 12, 2025 by dialing (800) 770-2030, or (609) 800-9909 for international callers, Conference ID# 8741406. A transcript of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within 5 business days after the call.
About Astec
Astec, (www.astecindustries.com), is a manufacturer of specialized equipment for asphalt road building, aggregate processing and concrete production. Astec's manufacturing operations are divided into two primary business segments: Infrastructure Solutions that includes road building, asphalt and concrete plants, thermal and storage solutions; and Materials Solutions that include our aggregate processing equipment. Astec also operates a line of controls and automation products designed to deliver enhanced productivity through improved equipment performance.
Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995
This News Release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate and the United States and global economies. Statements in this News Release that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "believes," "should," "would," "could," "forecast," "management is of the opinion," use of the future tense and similar words or phrases. These forward-looking statements are based largely on management's expectations, which are subject to a number of known and unknown risks, uncertainties and other factors discussed and described in our most recent Annual Report on Form 10-K, including those risks described in Part I, Item 1A. Risk Factors thereof, and in other reports filed subsequently by us with the Securities and Exchange Commission, which may cause actual results, financial or otherwise, to be materially different from those anticipated, expressed or implied by the forward-looking statements. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law.
Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding the Company's results, the Company refers to various U.S. GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures which management believes provides useful information to investors. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore may not be comparable to the calculation of similar measures for other companies. Management of the Company does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. Nonetheless, this non-GAAP information can be useful in understanding the Company's operating results and the performance of its core business. Management of the Company uses both GAAP and non-GAAP financial measures to establish internal budgets and targets and to evaluate the Company's financial performance against such budgets and targets. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in this News Release.
When we provide guidance for adjusted EBITDA as described above, we do not provide a reconciliation of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjusted items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our Company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts.
For Additional Information Contact:
Steve Anderson
Senior Vice President of Administration and Investor Relations
Phone: (423) 899-5898
E-mail: sanderson@astecindustries.com
Certain reclassifications have been made to the prior period financial information included in this News Release to conform to the presentation used in the financial statements for the three months ended December 31, 2024.
| Astec Industries Inc. Condensed Consolidated Statements of Operations (In millions, except shares in thousands and per share amounts; unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 359.0 | $ | 337.2 | $ | 1,305.1 | $ | 1,338.2 | ||||||||
| Cost of sales | 256.1 | 248.1 | 977.2 | 1,007.4 | ||||||||||||
| Gross profit | 102.9 | 89.1 | 327.9 | 330.8 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative expenses | 68.0 | 69.7 | 276.1 | 276.4 | ||||||||||||
| Goodwill impairment | — | — | 20.2 | — | ||||||||||||
| Restructuring, other impairment and asset charges, net | 0.1 | 0.5 | 8.4 | 5.8 | ||||||||||||
| Total operating expenses | 68.1 | 70.2 | 304.7 | 282.2 | ||||||||||||
| Income from operations | 34.8 | 18.9 | 23.2 | 48.6 | ||||||||||||
| Other expenses, net: | ||||||||||||||||
| Interest expense | (2.3 | ) | (2.5 | ) | (10.7 | ) | (8.9 | ) | ||||||||
| Other (expenses) income, net | (1.1 | ) | 1.1 | 1.4 | 3.1 | |||||||||||
| Income before income taxes | 31.4 | 17.5 | 13.9 | 42.8 | ||||||||||||
| Income tax provision | 10.4 | 2.6 | 9.8 | 9.1 | ||||||||||||
| Net income | 21.0 | 14.9 | 4.1 | 33.7 | ||||||||||||
| Net loss (income) attributable to noncontrolling interest | 0.1 | — | 0.2 | (0.2 | ) | |||||||||||
| Net income attributable to controlling interest | $ | 21.1 | $ | 14.9 | $ | 4.3 | $ | 33.5 | ||||||||
| Earnings per common share | ||||||||||||||||
| Basic | $ | 0.92 | $ | 0.65 | $ | 0.19 | $ | 1.47 | ||||||||
| Diluted | 0.92 | 0.65 | 0.19 | 1.47 | ||||||||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 22,821 | 22,751 | 22,799 | 22,720 | ||||||||||||
| Diluted | 22,906 | 22,799 | 22,853 | 22,781 | ||||||||||||
| Astec Industries Inc. Reportable Segment Net Sales and Operating Adjusted EBITDA (In millions, except percentage data; unaudited) | ||||||||||||||||
| Reportable segment net sales exclude intersegment sales. | ||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||
| 2024 | 2023 | $ Change | % Change | |||||||||||||
| Revenues from external customers | ||||||||||||||||
| Infrastructure Solutions | $ | 248.8 | $ | 222.3 | $ | 26.5 | 11.9 | % | ||||||||
| Materials Solutions | 110.2 | 114.9 | (4.7 | ) | (4.1 | )% | ||||||||||
| Net sales | $ | 359.0 | $ | 337.2 | $ | 21.8 | 6.5 | % | ||||||||
| Segment Operating Adjusted EBITDA | ||||||||||||||||
| Infrastructure Solutions | $ | 53.1 | $ | 34.9 | $ | 18.2 | 52.1 | % | ||||||||
| Materials Solutions | 7.2 | 8.3 | (1.1 | ) | (13.3 | )% | ||||||||||
| Segment Operating Adjusted EBITDA - Reportable Segments | 60.3 | 43.2 | ||||||||||||||
| Reconciliation of Segment Operating Adjusted EBITDA to "Income before income taxes" | ||||||||||||||||
| Corporate and Other | (12.4 | ) | (10.6 | ) | ||||||||||||
| Transformation program | (7.0 | ) | (6.7 | ) | ||||||||||||
| Restructuring and other related charges | (0.1 | ) | (0.1 | ) | ||||||||||||
| Asset impairment | — | (0.4 | ) | |||||||||||||
| Transaction costs | (0.8 | ) | — | |||||||||||||
| Interest expense, net | (1.8 | ) | (1.9 | ) | ||||||||||||
| Depreciation and amortization | (6.7 | ) | (6.0 | ) | ||||||||||||
| Net loss attributable to noncontrolling interest | (0.1 | ) | — | |||||||||||||
| Income before income taxes | $ | 31.4 | $ | 17.5 | ||||||||||||
| Segment Operating Adjusted EBITDA Margin | 2024 | 2023 | Change | |||||||||||||
| Infrastructure Solutions | 21.3 | % | 15.7 | % | 560 bps | |||||||||||
| Materials Solutions | 6.5 | % | 7.2 | % | (70) bps | |||||||||||
(Continued)
| Astec Industries Inc. Reportable Segment Net Sales and Operating Adjusted EBITDA (Continued) (In millions, except percentage data; unaudited) | ||||||||||||||||
| Year Ended December 31, | ||||||||||||||||
| 2024 | 2023 | $ Change | % Change | |||||||||||||
| Revenues from external customers | ||||||||||||||||
| Infrastructure Solutions | $ | 837.4 | $ | 800.4 | $ | 37.0 | 4.6 | % | ||||||||
| Materials Solutions | 467.7 | 537.8 | (70.1 | ) | (13.0 | )% | ||||||||||
| Net sales | $ | 1,305.1 | $ | 1,338.2 | $ | (33.1 | ) | (2.5 | )% | |||||||
| Segment Operating Adjusted EBITDA | ||||||||||||||||
| Infrastructure Solutions | $ | 121.5 | $ | 102.4 | $ | 19.1 | 18.7 | % | ||||||||
| Materials Solutions | 37.2 | 50.7 | (13.5 | ) | (26.6 | )% | ||||||||||
| Segment Operating Adjusted EBITDA - Reportable Segments | 158.7 | 153.1 | ||||||||||||||
| Reconciliation of Segment Operating Adjusted EBITDA to "Income before income taxes" | ||||||||||||||||
| Corporate and Other | (46.9 | ) | (43.1 | ) | ||||||||||||
| Transformation program | (32.8 | ) | (29.2 | ) | ||||||||||||
| Restructuring and other related charges | (9.5 | ) | (7.7 | ) | ||||||||||||
| Goodwill impairment | (20.2 | ) | — | |||||||||||||
| Asset impairment | — | (1.2 | ) | |||||||||||||
| Gain on sale of property and equipment, net | 1.1 | 3.1 | ||||||||||||||
| Transaction costs | (0.8 | ) | — | |||||||||||||
| Interest expense, net | (8.7 | ) | (6.8 | ) | ||||||||||||
| Depreciation and amortization | (26.8 | ) | (25.6 | ) | ||||||||||||
| Net income (loss) attributable to noncontrolling interest | (0.2 | ) | 0.2 | |||||||||||||
| Income before income taxes | $ | 13.9 | $ | 42.8 | ||||||||||||
| Segment Operating Adjusted EBITDA Margin | 2024 | 2023 | Change | |||||||||||||
| Infrastructure Solutions | 14.5 | % | 12.8 | % | 170 bps | |||||||||||
| Materials Solutions | 8.0 | % | 9.4 | % | (140) bps | |||||||||||
| Astec Industries Inc. Condensed Consolidated Balance Sheets (In millions; unaudited) | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash, cash equivalents and restricted cash | $ | 90.8 | $ | 63.2 | ||||
| Investments | 3.0 | 5.7 | ||||||
| Trade receivables, contract assets and other receivables, net | 167.2 | 152.7 | ||||||
| Inventories, net | 422.7 | 455.6 | ||||||
| Other current assets, net | 39.1 | 42.3 | ||||||
| Total current assets | 722.8 | 719.5 | ||||||
| Property, plant and equipment, net | 181.9 | 187.6 | ||||||
| Other long-term assets | 138.9 | 152.2 | ||||||
| Total assets | $ | 1,043.6 | $ | 1,059.3 | ||||
| Liabilities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 79.2 | $ | 116.9 | ||||
| Customer deposits | 77.3 | 70.2 | ||||||
| Other current liabilities | 115.2 | 111.9 | ||||||
| Total current liabilities | 271.7 | 299.0 | ||||||
| Long-term debt | 105.0 | 72.0 | ||||||
| Other long-term liabilities | 29.3 | 34.6 | ||||||
| Total equity | 637.6 | 653.7 | ||||||
| Total liabilities and equity | $ | 1,043.6 | $ | 1,059.3 | ||||
| Astec Industries Inc. Condensed Consolidated Statements of Cash Flows (In millions; unaudited) | ||||||||
| Year Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 4.1 | $ | 33.7 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities | 63.5 | 40.8 | ||||||
| Distributions to deferred compensation programs' participants | (1.1 | ) | (1.8 | ) | ||||
| Change in operating assets and liabilities | (43.5 | ) | (44.9 | ) | ||||
| Net cash provided by operating activities | 23.0 | 27.8 | ||||||
| Cash flows from investing activities: | ||||||||
| Expenditures for property and equipment | (20.5 | ) | (34.1 | ) | ||||
| Proceeds from sale of property and equipment | 2.3 | 20.3 | ||||||
| Proceeds from insurance | 0.4 | — | ||||||
| Purchase of investments | (1.1 | ) | (1.0 | ) | ||||
| Sale of investments | 0.9 | 1.9 | ||||||
| Net cash used in investing activities | (18.0 | ) | (12.9 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payment of dividends | (11.9 | ) | (11.8 | ) | ||||
| Proceeds from borrowings on credit facilities and bank loans | 215.6 | 240.6 | ||||||
| Repayments of borrowings on credit facilities and bank loans | (179.2 | ) | (245.8 | ) | ||||
| Sale of Company stock by deferred compensation programs, net | 0.4 | 0.3 | ||||||
| Withholding tax paid upon vesting of share-based compensation awards | (0.5 | ) | (1.6 | ) | ||||
| Net cash provided by (used in) financing activities | 24.4 | (18.3 | ) | |||||
| Effect of exchange rates on cash | (1.8 | ) | 0.6 | |||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 27.6 | (2.8 | ) | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 63.2 | 66.0 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 90.8 | $ | 63.2 | ||||
We present certain non-GAAP information that can be useful in understanding our operating results and the performance of our core business. We use both GAAP and non-GAAP financial measures to establish internal budgets and targets and to evaluate financial performance against such budgets and targets. We exclude the costs and related tax effects, which are based on the statutory tax rate applicable to each respective item unless otherwise noted below, of the following items as we do not believe they are indicative of our core business operations:
- Transformation program - Incremental costs related to the execution of our ongoing strategic transformation initiatives which may include personnel costs, third-party consultant costs, duplicative systems usage fees, administrative costs, accelerated depreciation and amortization on certain long-lived assets and other similar type charges. Transformation program initiatives include our multi-year phased implementation of a standardized enterprise resource planning system and a lean manufacturing initiative at one of our largest manufacturing sites that was largely completed during 2023 with certain capital investments finalized in early 2024. Transformation program costs for the lean manufacturing initiative ceased at the end of 2023. These costs are included in "Cost of sales" and "Selling, general and administrative expenses", as appropriate, in the Consolidated Statements of Operations.
- Restructuring and other related charges - Charges related to restructuring activities which primarily include personnel termination actions and reorganization efforts to simplify and consolidate our operations. These activities include the workforce reductions effected in the second quarter of 2024, the termination of our previous Chief Executive Officer, the limited overhead restructuring action implemented in February 2023 and ongoing litigation costs for our exited Enid location, including the settlement loss recorded in the third quarter of 2024. These costs are recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations.
- Goodwill impairment - Goodwill impairment charges, to the extent that they are experienced, are recorded in "Goodwill impairment" in the Consolidated Statements of Operations. These charges are associated with the impairment of the goodwill allocated to the Materials Solutions reporting unit during the second quarter of 2024. The goodwill impairment is largely nondeductible for tax purposes and, as such, the tax impact applied reflects the actual tax impact by jurisdiction.
- Asset impairment - Asset impairment charges, to the extent that they are experienced, are recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations. These include charges associated with abandoned in-process internally developed software that was determined to be impaired during the second quarter of 2023. Additional charges in 2023 relate to manufacturing equipment determined to be impaired.
- Gain on sale of property and equipment, net - Gains or losses recognized on the disposal of property and equipment that are recorded in "Restructuring, impairment and other asset charges, net" in the Consolidated Statements of Operations. We may sell or dispose of assets in the normal course of our business operations as they are no longer needed or used.
- Transaction costs - Costs associated with the pursuit of acquisition opportunities, or the effected acquisition and integration of acquired businesses. These costs are typically included in "Selling, general and administrative expenses" in the Consolidated Statements of Operations.
When we provide guidance for adjusted EBITDA as described above, we do not provide a reconciliation of the U.S. GAAP measure as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our Company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts.
| Astec Industries Inc. GAAP vs Non-GAAP Adjusted Income from Operations Reconciliations (In millions, except percentage data; unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 359.0 | $ | 337.2 | $ | 1,305.1 | $ | 1,338.2 | ||||||||
| Income from operations | $ | 34.8 | $ | 18.9 | $ | 23.2 | $ | 48.6 | ||||||||
| Adjustments: | ||||||||||||||||
| Transformation program | 7.1 | 6.9 | 33.5 | 29.7 | ||||||||||||
| Restructuring and other related charges | 0.1 | 0.1 | 9.5 | 7.7 | ||||||||||||
| Goodwill impairment | — | — | 20.2 | — | ||||||||||||
| Asset impairment | — | 0.4 | — | 1.2 | ||||||||||||
| Gain on sale of property and equipment, net | — | — | (1.1 | ) | (3.1 | ) | ||||||||||
| Transaction costs | 0.8 | — | 0.8 | — | ||||||||||||
| Adjusted income from operations | $ | 42.8 | $ | 26.3 | $ | 86.1 | $ | 84.1 | ||||||||
| Adjusted operating margin | 11.9 | % | 7.8 | % | 6.6 | % | 6.3 | % | ||||||||
| Astec Industries Inc. GAAP vs Non-GAAP Adjusted EPS Reconciliations (In millions, except per share amounts; unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income attributable to controlling interest | $ | 21.1 | $ | 14.9 | $ | 4.3 | $ | 33.5 | ||||||||
| Adjustments: | ||||||||||||||||
| Transformation program | 7.1 | 6.9 | 33.5 | 29.7 | ||||||||||||
| Restructuring and other related charges | 0.1 | 0.1 | 9.5 | 7.7 | ||||||||||||
| Goodwill impairment | — | — | 20.2 | — | ||||||||||||
| Asset impairment | — | 0.4 | — | 1.2 | ||||||||||||
| Gain on sale of property and equipment, net | — | — | (1.1 | ) | (3.1 | ) | ||||||||||
| Transaction costs | 0.8 | — | 0.8 | — | ||||||||||||
| Income tax impact of adjustments | (1.9 | ) | (1.7 | ) | (11.2 | ) | (8.2 | ) | ||||||||
| Adjusted net income attributable to controlling interest | $ | 27.2 | $ | 20.6 | $ | 56.0 | $ | 60.8 | ||||||||
| Diluted EPS | $ | 0.92 | $ | 0.65 | $ | 0.19 | $ | 1.47 | ||||||||
| Adjustments: | ||||||||||||||||
| Transformation program (a) | 0.32 | 0.30 | 1.47 | 1.30 | ||||||||||||
| Restructuring and other related charges (a) | — | — | 0.41 | 0.35 | ||||||||||||
| Goodwill impairment | — | — | 0.88 | — | ||||||||||||
| Asset impairment | — | 0.02 | — | 0.05 | ||||||||||||
| Gain on sale of property and equipment, net | — | — | (0.05 | ) | (0.14 | ) | ||||||||||
| Transaction costs | 0.03 | — | 0.04 | — | ||||||||||||
| Income tax impact of adjustments | (0.08 | ) | (0.07 | ) | (0.49 | ) | (0.36 | ) | ||||||||
| Adjusted EPS | $ | 1.19 | $ | 0.90 | $ | 2.45 | $ | 2.67 | ||||||||
| (a) Calculation includes the impact of a rounding adjustment | ||||||||||||||||
| Astec Industries Inc. EBITDA and Adjusted EBITDA Reconciliations (In millions, except percentage data; unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 359.0 | $ | 337.2 | $ | 1,305.1 | $ | 1,338.2 | ||||||||
| Net income attributable to controlling interest | $ | 21.1 | $ | 14.9 | $ | 4.3 | $ | 33.5 | ||||||||
| Interest expense, net | 1.8 | 1.9 | 8.7 | 6.8 | ||||||||||||
| Depreciation and amortization | 6.7 | 6.0 | 26.8 | 25.6 | ||||||||||||
| Income tax provision | 10.4 | 2.6 | 9.8 | 9.1 | ||||||||||||
| EBITDA | 40.0 | 25.4 | 49.6 | 75.0 | ||||||||||||
| EBITDA margin | 11.1 | % | 7.5 | % | 3.8 | % | 5.6 | % | ||||||||
| Adjustments: | ||||||||||||||||
| Transformation program | 7.0 | 6.7 | 32.8 | 29.2 | ||||||||||||
| Restructuring and other related charges | 0.1 | 0.1 | 9.5 | 7.7 | ||||||||||||
| Goodwill impairment | — | — | 20.2 | — | ||||||||||||
| Asset impairment | — | 0.4 | — | 1.2 | ||||||||||||
| Gain on sale of property and equipment, net | — | — | (1.1 | ) | (3.1 | ) | ||||||||||
| Transaction costs | 0.8 | — | 0.8 | — | ||||||||||||
| Adjusted EBITDA | $ | 47.9 | $ | 32.6 | $ | 111.8 | $ | 110.0 | ||||||||
| Adjusted EBITDA margin | 13.3 | % | 9.7 | % | 8.6 | % | 8.2 | % | ||||||||
| Astec Industries Inc. Free Cash Flow Reconciliation (In millions; unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net cash provided by operating activities | $ | 36.6 | $ | 46.6 | $ | 23.0 | $ | 27.8 | ||||||||
| Expenditures for property and equipment | (4.5 | ) | (9.1 | ) | (20.5 | ) | (34.1 | ) | ||||||||
| Free cash flow | $ | 32.1 | $ | 37.5 | $ | 2.5 | $ | (6.3 | ) | |||||||
FAQ
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