Company: ASTE
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000792987-25-000064
Chunk: 89

Company: ASTEC INDUSTRIES INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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, except as required by law.

Executive Summary

Highlights of our financial results for the three months ended September 30, 2025 as compared to the same period of the prior year include the following:

•Net sales were $350.1 million, an increase of 20.1%

•Gross profit was $84.2 million, an increase of 26.0%

•Income from operations was $1.1 million, an increase of 115.3%

•Net loss attributable to Astec was $4.2 million, an increase of 32.3%

•Diluted loss per share was $0.18, an increase of 33.3%

•Backlog was $449.5 million, a decrease of 5.5%

Recent Developments and Business Conditions

TerraSource Acquisition – On July 1, 2025, we completed the acquisition of TerraSource, a market-leading manufacturer of material processing equipment and related aftermarket parts serving complementary crushing, screening and separation applications. The Acquisition provides us with access to adjacent markets in materials processing equipment and related aftermarket parts and significant growth and value creation opportunities.

New Credit Facility – In connection with the Acquisition, we entered into the 2025 Credit Agreement that provides for (i) a revolving credit facility, a term loan facility, a swingline facility and a letter of credit facility, in an initial aggregate amount of up to $600.0 million and (ii) an incremental facilities limit in an aggregate amount not to exceed $150.0 million.

Strategic Transformation Program – Our strategic transformation program includes the ongoing multi-year phased implementation of a standardized ERP system, which is replacing much of our existing disparate core financial systems. To date, we have launched the human capital resources module in our U.S. locations and converted the operations of three manufacturing sites along with Corporate. We expect the project to conclude in 2028 or 2029 with total approximate 

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implementation costs anticipated to range from $180 to $200 million. Through the third quarter of 2025, we have incurred total implementation costs of approximately $147 million.

See Note 13, Strategic Transformation, Restructuring and Other Asset Gains, net of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional discussion of the costs related to these strategic initiatives.

Economic Conditions – We monitor macroeconomic and other factors that may affect our business such as steel and oil prices and geopolitical