Corrected: Road building equipment maker Astec's Q2 sales miss estimates, adjusted EPS beats

Astec Industries

06/08/2025 14:39

Repeats to attach to corrected alerts. The adjusted EBITDA and adjusted EBITDA margin figures had been corrected earlier

Overview

Astec Q2 net sales fall 4.4% yr/yr, missing analyst expectations

Adjusted EPS for Q2 beats consensus, reflecting improved operational efficiency

Co completes acquisition of TerraSource, expected to boost future earnings

Outlook

Astec updates full-year adjusted EBITDA guidance to $123 mln-$142 mln

Company expects TerraSource to contribute $13 mln-$17 mln in H2 adjusted EBITDA

Result Drivers

INFRASTRUCTURE CHALLENGES - Net sales in Infrastructure Solutions fell 7.6% due to weak demand for mobile paving and forestry equipment

OPERATIONAL EFFICIENCIES - Co attributes growth in adjusted EBITDA and EPS to enhanced manufacturing and procurement efficiencies

TERRASOURCE ACQUISITION - Acquisition completed, expected to boost earnings with strong aftermarket parts revenue

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$330.30 mln
$354.20 mln (2 Analysts)
Q2 Adjusted EPS
Beat
$0.88
$0.56 (2 Analysts)
Q2 Adjusted EBITDA
$33.7 mln
Q2 Adjusted EBITDA Margin
10.2%
Q2 Adjusted Operating margin
7.9%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

Wall Street's median 12-month price target for Astec Industries Inc is $43.00, about 6.1% above its August 5 closing price of $40.39

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX5LH7RP

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)