Astec Industries, Inc.

Astec makes equipment for asphalt road building, aggregate processing and concrete production. It earns money from new equipment and related parts and service. Infrastructure Solutions includes asphalt and concrete plants and road-building equipment; Materials Solutions includes crushing, screening, mining and recycling equipment.

The latest operating record

Adjusted EBITDA removes interest, taxes, depreciation, amortization and specified transformation, restructuring and acquisition-related costs. Infrastructure's adjusted EBITDA margin fell to 8.1% from 12.4%; Materials' fell to 8.5% from 9.8%.

The order backlog reached $670.5 million, up from $449.5 million a year earlier. The increase came from internal growth in asphalt and aggregates demand. Infrastructure's implied orders rebounded from the June quarter, while Materials' declined. Converting that backlog into profitable deliveries is the next operating test.

Forecasts before the proposed disposal

Astec's 2026 adjusted EBITDA target fell from $170 million–$190 million to $160 million–$175 million in August, then to $140 million–$150 million on November 5. The November 12 sale announcement did not replace that annual forecast.

Transactions that change the portfolio

Astec agreed on November 12 to sell Roadtec and Carlson to Komatsu America. The $75 million enterprise value is subject to adjustments; Astec expects approximately $65 million in total cash proceeds and tax benefits. The business generates about $145 million in annualized sales and operating losses.

Closing is expected in the first quarter of 2027. Astec expects the sale to increase annualized EPS and improve adjusted EBITDA margin by about 2 percentage points. Those are expected benefits after completion, rather than results already recorded.

Earlier acquisitions are complete. CWMF joined Infrastructure Solutions on January 1, 2026 for $70.1 million in cash consideration. TerraSource joined Materials Solutions on July 1, 2025 for $252.6 million.

Cash and debt before the sale

Operations generated $70.2 million of cash in the first nine months of 2026, up from $25.3 million a year earlier. Cash capital spending was $22.2 million, up from $12.0 million. Net cash acquisition spending was $68.2 million, and dividend payments were $8.9 million.

At September 30, cash including restricted funds was $64.4 million; $63.2 million was available for operations. Debt carrying value totaled $374.8 million, including $18.4 million of current long-term maturities and $11.2 million of short-term debt. Available revolving credit was $204.0 million. These balances precede the proposed Roadtec transaction.