Company: ASTE
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000792987-25-000013
Chunk: 76

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 76
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 year ended December 31, 2024.

Commodity Risk

We purchase raw materials and some manufactured components and replacement parts for our products from leading suppliers both domestically and internationally. Raw materials used in the manufacture of our products include carbon steel, pipe and various types of alloy steel, which are normally purchased from distributors and other sources. The majority of steel is scheduled on a just in time arrangement from suppliers to better manage inventory requirements at our manufacturing facilities. Based on market dynamics, we strategically and selectively order and inventory certain items beyond a just in time basis.

The most significant component of our inventory is steel. We anticipate that steel prices will increase during 2025, including as a result of the tariffs on all steel imports recently imposed by the Trump administration and other trade policies implemented by the U.S. and foreign governments. Significant increases in the market price of steel can negatively impact our gross profit as we are often unable to pass along all of these price increases to our customers. A significant decline in the market price of steel could result in a decline in the market value of our equipment or parts. We utilize strategies that include forward-looking contracts and advanced steel purchases to ensure supply and minimize the impact of price volatility. 

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Table of Contents

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to the Financial Statements and Supplementary Data:Reports of Independent Registered Public Accounting Firms35Consolidated Balance Sheets38Consolidated Statements of Operations39Consolidated Statements of Comprehensive (Loss) Income40Consolidated Statements of Cash Flows41Consolidated Statements of Equity43Notes to Consolidated Financial Statements44Note 1. Business and Organization44Note 2. Basis of Presentation and Significant Accounting Policies44Note 3. Acquisition52Note 4. Inventories53Note 5. Fair Value Measurements53Note 6. Investments55Note 7. Goodwill55Note 8. Intangible Assets56Note 9. Property and Equipment57Note 10. Leases57Note 11. Debt58Note 12. Product Warranty Reserves59Note 13. Accrued Loss Reserves59Note 14. Employee Benefit Plans60Note 15. Income Taxes61Note 16. Commitments and Contingencies63Note 17. Share-Based Compensation64Note 18. Revenue Recognition66Note 19. Operations by Industry Segment and Geographic Area67Note 20. Other Expenses and Income, net73Note 21. Strategic Transformation and Restructuring, Impairment and