Company: ASTE
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000792987-25-000047
Chunk: 76

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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.6 million were included in "Other long-term liabilities" in the Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024, respectively.

Note 7. Income Taxes

For the three months ended June 30, 2025, the Company recorded income tax expense of $5.8 million, reflecting a 25.7% effective tax rate, compared to $0.3 million for the three months ended June 30, 2024, reflecting a (2.2)% effective tax rate. The income tax expense for the three months ended June 30, 2025 was higher compared to the same period in 2024 primarily due to higher pretax book income and changes in the relative weighting of jurisdictional income and loss, partially offset by a net nondeductible goodwill impairment incurred in 2024.For the six months ended June 30, 2025, the Company recorded income tax expense of $11.2 million, reflecting a 26.5% effective tax rate, compared to $1.7 million for the six months ended June 30, 2024, reflecting a (18.9)% effective tax rate. The income tax expense for the six months ended June 30, 2025 was higher compared to the same period in 2024 primarily due to higher pretax book income and changes in the relative weighting of jurisdictional income and loss, partially offset by a net nondeductible goodwill impairment incurred in 2024.

The Company's recorded liability for uncertain tax positions was $17.3 million and $16.8 million as of June 30, 2025 and December 31, 2024, respectively. The increase is the result of $0.5 million of incremental reserves associated with a research and development credit generated during 2025. The Company does not anticipate a significant change in unrecognized tax benefits due to the expiration of relevant statutes of limitations and federal, state and foreign tax audit resolutions over the next twelve months.The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. The Company is currently under audit by the U.S. Internal Revenue Service for the federal income tax return from the 2018 tax year as well as various other state income tax and jurisdictional audits. As of June 30, 2025, the Company believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits