Company: ASTE
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000792987-25-000029
Chunk: 27

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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.2 million and $1.3 million, respectively.

Segment Operating Adjusted EBITDA

Segment Operating Adjusted EBITDA is the measure of segment profit or loss used by the CEO, who is the CODM, to evaluate performance and allocate resources to the reportable segments. Segment Operating Adjusted EBITDA is defined as net income or loss before the impact of interest income or expense, income taxes, depreciation and amortization and certain other adjustments that are not considered by the CODM in the evaluation of ongoing operating performance. See Note 9, Operations by Industry Segment and Geographic Area, of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a reconciliation of Segment Operating Adjusted EBITDA to total consolidated income before income taxes.

Three Months Ended March 31,$ Change% Change(in millions, except percentage data)20252024Infrastructure Solutions$42.9 $25.6 $17.3 67.6 %Materials Solutions5.2 5.3 (0.1)(1.9)%

Infrastructure Solutions

Segment Operating Adjusted EBITDA for the Infrastructure Solutions segment was $42.9 million for the first quarter of 2025 compared to $25.6 million for the same period in 2024, an increase of $17.3 million or 67.6%. The increase in Segment Operating Adjusted EBITDA was primarily driven by (i) the impact of net favorable pricing coupled with favorable volume and mix which generated $19.0 million higher gross profit (ii) manufacturing efficiencies of $4.9 million and (iii) reduced prototype and project costs of $0.7 million. These increases were partially offset by (i) net unfavorable inventory adjustments of $3.3 million, (ii) higher quality-related costs of $2.8 million and (iii) higher personnel related costs of $1.2 million.

Materials Solutions

Segment Operating Adjusted EBITDA for the Materials Solutions segment was $5.2 million for the first quarter of 2025 compared to $5.3 million for the same period in 2024, a decrease of $0.1 million, or 1.9%. The decrease in Segment Operating Adjusted EBITDA was primarily driven by the impact of net unfavorable volume and mix, partially offset by favorable pricing, that resulted 

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in $3.0 million lower gross profit and manufacturing inefficiencies of