Astec Industries reported fourth‑quarter 2025 results that surpassed expectations, with revenue of $400.6 million, a 11.6% year‑over‑year increase, and adjusted earnings per share of $1.06 versus consensus estimates of $0.80‑$0.83. Net income rose to $38.8 million, and full‑year 2025 adjusted EBITDA reached $140.7 million, up 25.8% from $111.8 million in 2024.
Revenue growth was driven by a 60.6% jump in Materials Solutions sales to $177.0 million, reflecting strong demand for asphalt and concrete plants and the integration of TerraSource’s product lines. Infrastructure Solutions generated $223.6 million in revenue, up 10.1% YoY, supported by continued demand for data‑center equipment but offset by headwinds in mobile‑paving and forestry equipment.
Margin performance varied by segment. Materials Solutions expanded its adjusted EBITDA margin, while Infrastructure Solutions saw a contraction, resulting in an overall Q4 adjusted EBITDA margin of 11.2% versus 10.0% for the full year. The company’s full‑year adjusted EBITDA of $140.7 million reflects a 25.8% increase, driven largely by the Materials Solutions expansion and cost‑control initiatives.
The earnings beat was largely due to disciplined cost management, pricing power in high‑margin segments, and the successful integration of recent acquisitions. The $0.23‑$0.26 EPS beat over estimates underscores the company’s ability to convert revenue growth into profitability.
Management guided for 2026 adjusted EBITDA of $170 million to $190 million, a range that aligns with the top end of the prior year’s guidance. CFO Brian Harris noted, "Full year adjusted EBITDA of $140.7 million increased 25.8% and was at the top end of our guidance range. Based on expected organic and inorganic contributions, we expect our full year 2026 adjusted EBITDA to be in the $170 million to $190 million range."
Investors reacted positively to the results, reflecting confidence in Astec’s earnings performance and forward outlook.
CEO Jaco van der Merwe said, "We are pleased to report strong fourth quarter and full year results evidencing our focus on consistency, profitability and growth. We are optimistic about 2026 due to progress on our internal initiatives, positive customer sentiment and stability provided by federal infrastructure funding."
Headwinds remain in the Infrastructure Solutions segment, where mobile‑paving and forestry equipment demand has softened, but tailwinds from federal infrastructure funding and data‑center construction continue to support growth. The company’s backlog increased 22.5% year‑over‑year to $514.1 million, indicating robust future revenue prospects.
Astec’s recent acquisitions of TerraSource and CWMF have added over $200 million in annual revenue and broadened its product portfolio, positioning the company to capture additional market share in the road‑construction and aggregate markets.
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