ASTE

Astec’s second quarter was marked by strong top-line growth and a significant increase in backlog, but the market reacted negatively due to margin compression and earnings falling short of Wall Street’s consensus. Management attributed the robust revenue to broad-based demand, especially within the Material Solutions segment, and highlighted that parts and service grew sharply. CEO Jaco van der Merwe pointed to shifts in customer delivery schedules and a less favorable mix in Infrastructure Solutions as key factors behind the margin pressure. Is now the time to buy ASTE? Find out in our full research report (it’s free). Revenue: $408.1 million vs analyst estimates of $405.5 million (23.6% year-on-year growth, 0.6% beat) Adjusted EPS: $0.94 vs analyst expectations of $1.04 (9.2% miss) Adjusted EBITDA: $42.6 million vs analyst estimates of $47.8 million (10.4% margin, 10.9% miss) Operating Margin: 6.3%, down from 7.9% in the same quarter last year Backlog: $601.1 million at quarter end, up 57.9% year on year Market Capitalization: $988.7 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. David S. MacGregor (Longbow Research) asked about the revised EBITDA guidance range and its underlying assumptions. CEO Jaco van der Merwe explained that timing of large plant deliveries and order momentum could swing results to the higher or lower end of guidance. MacGregor (Longbow Research) also inquired about the impact of energy cost inflation and price/cost pressures on Infrastructure Solutions margins. Van der Merwe said margin pressure was mostly due to mix, but that pricing actions should help margins recover. Steve Ferazani (Sidoti) pressed on the implications of a potential one-year extension to the Federal Highway Bill and downside risks to orders. Van der Merwe responded that bookings remain strong and there is no current indication of a significant slowdown. Ferazani (Sidoti) followed up on performance drivers in Infrastructure Solutions, asking if new product launches or market share gains were responsible for strength outside asphalt plants. Van der Merwe cited a diversified product mix and strong backlog for new models as key factors. Steven Ramsey (Thompson Research Group) questioned the sustainability and timing of Material Solutions backlog conversion. Van der Merwe indicated most backlog would convert this year, supporting confidence in the second half outlook. In the quarters ahead, our team will monitor (1) the outcome and timing of the Federal Highway Bill renewal or extension, (2) the pace at which backlog, particularly in Material Solutions, converts to revenue, and (3) margin trends as product mix and cost management efforts evolve. The trajectory of new product launches and international expansion will also play a critical role in Astec’s execution. Astec currently trades at $42.94, down from $52.25 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:30 a.m. ET Senior Vice President of Administration and Investor Relations - Stephen C. Anderson Chief Executive Officer - Jaco van der Merwe Chief Financial Officer - Brian Harris Operator: Hello, and welcome to the Astec Industries Second Quarter 2026 Earnings Call. As a reminder, this conference call is being recorded. It is my pleasure to introduce your host, Steve Anderson, Senior Vice President of Administration and Investor Relations. Mr. Anderson, you may begin. Stephen C. Anderson: Thank you, and good morning, everyone. Joining me on today's call are Jaco van der Merwe, our Chief Executive Officer, and Brian Harris, our Chief Financial Officer. In just a moment, I'll turn the call over to Jaco to provide his comments, and then Brian will summarize our financial results. For your convenience, a copy of our press release and presentation have been posted on our website under the Investor Relations tab at www.astecindustries.com. Turning to slide 2, I'll remind you that our discussion this morning may contain forward-looking statements that relate to the future performance of the company. Factors that could influence our results are highlighted in today's financial news release, and others are contained in our filings with the U.S. Securities and Exchange Commission. In an effort to provide investors with additional information, the company refers to various GAAP and non-GAAP financial measures, which management believes provide useful information to investors. A reconciliation of GAAP to non-GAAP results are included in our news release and the appendix of our slide presentation. And now, turning to slide 3, I'll turn the call over to Jaco. Jaco van der Merwe: Thank you, Steve. Good morning, everyone, and thank you for joining us. As you will see, we delivered a solid quarter with record revenues and adjusted EBITDA. We continue to make progress with our strategic initiatives as we drive greater consistency, profitability, and growth. Moving to slide 4, net sales were up 23.6% over the same period the prior year, and adjusted EBITDA increased 26%. Adjusted EBITDA margins to 10.4%, which was a 20-basis-point increase over a solid second quarter in 2025, and we reported positive free cash flow. The Infrastructure Solutions segment remained healthy as net sales grew 11.6% over the same period the prior year, largely due to demand for concrete, mobile paving, forestry equipment, and inorganic contributions. For asphalt plant customers, order patterns remain consistent with the prior year. However, macro-driven events such as higher oil prices and uncertainty over the timing of the renewal of the Federal Highway Bill have caused select deliveries to shift to future quarters. Much of our second quarter backlog growth was driven by the anticipated resurgence of our Material Solutions segment, and we are optimistic about the future. Federal, state, and local projects are expected to drive multi-year demand. And the global mining sector is poised for significant investment. The surge in demand for lithium, nickel, copper, and rare earth elements is expected due to the electrification of transportation and growth in the construction of data centers. Dealer inventory levels in the Material Solutions segment are healthy, and we are seeing increased demand for mobile plants. Rental inventory conversions were active throughout the second quarter, and this provided dealers with the ability to replenish inventory. Our new product development efforts are also beginning to show benefits as new crushing and screening units manufactured in our Omagh, Northern Ireland facility gain traction. Providing excellent availability of parts and service to Astec customers remains a key priority. In the second quarter, we generated revenue of $135.5 million of parts and service, which was a 34.8% increase over the same period the prior year. As a percentage of net sales, parts and service reached 33.2% for the quarter and trended upward to 35% on a year-to-date basis. Backlog of $601.1 million increased 57.9%. Both segments contributed with most of the increase being derived from our Material Solutions segment. Overall, order activity in both segments remains encouraging. However, as stated, some asphalt plant customers have begun to schedule their deliveries for the fourth quarter of 2026 and first quarter of 2027. As such, we are revising our full-year 2026 adjusted EBITDA guidance from the previous range of $170 million to $190 million to $160 million to $175 million. For modeling purposes, we anticipate adjusted EBITDA for the second half of the year to have a split of approximately 1/3 in the third quarter and 2/3 in the fourth quarter. Turning to slide 5, we had a spectacular show at the Hillhead 2026 quarrying, construction, and recycling event held in the United Kingdom in June. Hillhead drew thousands of attendees to see live [ in-quarry ] equipment demonstrations over a 3-day period. During the show, Astec was proud to launch 8 new models, including our Frontier series units produced in our Omagh facility in Northern Ireland. The Frontier crushing, screening, and washing material handling lines are now available for the global market. All equipment is engineered with the latest innovations, underpinned by proven technology, and is fully compliant with CE standards. We were also pleased to display and operate 2 new prototypes at the show that will be available for sale later this year. Lastly, 2 new U.K. dealers for Astec products were introduced at the show as part of our overall growth strategy internationally. On Slide 6, we provide a status update for the renewal of the Federal Highway Bill. Two eras of federal surface transportation funding are shown side by side. The infrastructure Investment and Jobs Act, which runs through September 2026, and its proposed successor, the BUILD America 250 Act, covering 2027 through 2031. At first glance, the $580 billion headline number in the BUILD America 250 Act appears smaller. As it pertains to Astec, however, that comparison can be misleading. Astec equipment is primarily used to process aggregates and produce asphalt and concrete that goes into our nation's infrastructure. We are pleased with the proposed 7% increase in highway funding from roughly $351 billion to $376 billion, and approximately 12% increase to improve our nation's bridges. Money also gets more certain as the formula-funded share climbs from 87% to 90%. These guaranteed non-discretionary portions increase every year, beginning with $65.54 billion in 2027 and progressively stepping up to $69.54 billion by 2031. So the takeaway is this. The BUILD America 250 Act may make a smaller headline, but it channels more government-guaranteed formula-based money into the core highway and bridge programs. The Federal Highway Program provides a meaningful volume of work for the infrastructure industry. This is good for our customers and in turn good for Astec. Exact timing of the Federal Highway Bill renewal has yet to be determined, but a temporary extension in the form of a continuing resolution appears likely. That said, whether the bill is renewed by September 30th or extended, a longer-term bill is a matter of when, not if. For Astec, this provides a baseline for achieving our 2030 revenue and EBITDA targets. Our implied orders and book-to-bill trends are shown on slide 7. On a consolidated basis, implied orders of $460 million grew $151.5 million, or 49.1%, for the same period the prior year, and 6.7% sequentially. As I mentioned previously, we are seeing strong across-the-board order intake by our Material Solutions segment, while macro uncertainty has created the shift in deliveries for selected asphalt customers. Moving to slide 8, backlog of $601.1 million increased 57.9% over the same period in the prior year. The majority of the increase was derived from our Material Solutions segment, which grew 150.6% from a combination of organic and inorganic growth. Infrastructure Solutions posted a 12.7% increase, primarily due to additional orders for concrete, mobile paving, and forestry products. I will now turn the call over to Brian Harris, our Chief Financial Officer. Brian Harris: Thank you, Jaco, and good morning. Our consolidated financial results are highlighted on Slide 10. Net sales of $408.1 million increased $77.8 million, or 23.6%, over the same period in the prior year. Net sales include parts and service revenue, which grew 34.8% to $135.5 million. Adjusted EBITDA increased 26% to $42.6 million, compared favorably to $33.8 million of adjusted EBITDA in the second quarter of the prior year. Adjusted EBITDA margin reached 10.4% for an increase of 20 basis points. Adjusted earnings per share of $0.94 in the quarter compared to a strong adjusted earnings per share of $0.90 in the second quarter of last year. Moving on to the Infrastructure Solutions segment shown on Slide 11, net sales grew 11.6% to $228.3 million from a combination of organic and inorganic contributions. This included aftermarket parts and service, which increased $2.9 million, or 4.6%, compared to the second quarter, the prior year. Operating adjusted EBITDA in dollars increased slightly. However, margin compression of 130 basis points was primarily due to a change in mix between asphalt plant and mobile paving equipment. The Material Solutions segment is shown on Slide 12. Net sales for the quarter grew 43% to $179.8 million due to organic and inorganic growth, while adjusted EBITDA grew 54.5% to $22.1 million. Segment operating adjusted EBITDA margin grew 90 basis points to 12.3% and compared favorably to the same period the prior year. Moving to Slide 13, we continue to maintain a strong balance sheet with ample liquidity. The quarter ended with cash and cash equivalents of $75.7 million, available credit of $190.1 million, for a total available liquidity of $265.8 million. Net leverage of 2.2x was well within our target range of 1.5x to 2.5x. We expect net leverage to further reduce to approximately 1.7x by end of 2026. As we have previously communicated, our 2026 outlook includes the following anticipated full-year ranges: adjusted EBITDA of $160 million to $175 million; an effective tax rate of 26% to 30%; depreciation and amortization of $55 million to $65 million; capital expenditures of $35 million to $45 million. We also expect the following quarterly ranges: adjusted SG&A of $70 million to $75 million; interest expense of approximately $7 million. I will now turn the call back to Jaco. Jaco van der Merwe: Thank you, Brian. Slide 14 reiterates the Astec Build to Connect Way and the key performance metrics shared during our 2026 Investor Day. These are the measures we believe matter most to investors as they deliver significant value. While progress will not occur in a straight line, we remain confident in our ability to achieve these targets by 2030. Slide 15 summarizes our key investment highlights. We have built a strong reputation as a dependable provider of internationally recognized brands and high-quality solutions. Our team remains closely engaged with customers, and ongoing conversations indicate continued optimism about activity levels across the construction market. We are encouraged by the results of our operational excellence efforts and expect continued improvement over time. We believe our manufacturing and procurement initiatives are increasing efficiency and will support further adjusted EBITDA growth. Several attractive opportunities and growth drivers support our path to 2030. We have launched a significant number of new products, including the models introduced at the Hillhead 2026 construction show. These products have been vetted through our disciplined, stage-gate approval process. We have additional products scheduled for launch over the next 12 to 18 months, each targeted at specific areas of market opportunity. Continued growth in our parts and service businesses will support margin expansion over time. Public funding remains stable and modestly growing, while our public end markets are generally non-cyclical. Our robust digital offering enables us to meet customer needs for unified connectivity suites that aggregate data across product types. Next, industry megatrends point to multi-years of growth in demand for construction materials. These megatrends include the construction of data centers, reindustrialization, and the domestic mining and rare earth minerals. Lastly, our strong balance sheet provides attractive options for capital allocation, including strategic inorganic growth opportunities aligned with our financial objectives, growth opportunities in both established and emerging international markets. With that, operator, we are ready for questions. Operator: [Operator Instructions] Your first question comes from the line of David MacGregor with Longbow Research. David S. MacGregor: I wonder if I could just start by asking you to talk about the different scenarios and assumptions behind the upper and the lower ends of the revised EBITDA guidance. Jaco van der Merwe: Yes, Jaco here. Yes, we -- when we look at the new guidance range, obviously, we talked in the earnings release around the shift that we've seen in asphalt plant delivery. So we've actually seen bookings comparable to 2025. But interesting, earlier than normal, we've seen some deliveries from customers being scheduled for Q4 and then already for Q1 next year. So what we've done there is we looked at our ability to react. In the short term, we feel that there's still an opportunity for us to fit orders into the fourth quarter that will drive us to a higher end of the range. And you know, the bottom end of the range, we feel that we have great visibility to achieve at least that range, so it just depends a little bit on timing here in the next couple of weeks of orders coming in. One thing that I will say is that we actually had very strong bookings towards the end of the quarter for asphalt plants. July turned out to be one of our best bookings months. And we've also seen a very strong bookings month for parts here in July. So, the momentum that we've seen late in the quarter is definitely giving us confidence that we can play within that range. And if we get 1 or 2 plant deals to fall, we can get to the higher end of the range. David S. MacGregor: Right. And just to clarify on that, do you think the delays are related to the continuing resolution around BA250 or -- I'm just curious what you're seeing as maybe an explanation for why these are being pushed out? Jaco van der Merwe: Yes, no, good question. We actually looked at the order pattern for last year, and we've seen a similar pattern last year, although I will say, there was maybe a 3-, 4-week period at the beginning of Q2 last year where bookings were slow. This year it was more the first 6 to 8 weeks. And then obviously, orders started to flow through strongly in June and July. I mean, as you know, there's a lot of uncertainty in the market right now. Our customers are affected by the spike in oil prices, diesel fuel prices. And smaller customers are definitely looking at the highway bill to give them confidence while our larger customers, you know, they typically have a capex cycle and they, you know, apply that as they see fit. So really David, I mean, it's -- I will say there's a difference maybe of 3, 4 weeks this year compared to last year. But the development and orders here in June and July gives us confidence that there's still demand out there. We have a good pipeline. And, you know, when we talk to customers, there's still a lot of work out there. David S. MacGregor: Right. Okay. And as a follow-up, I guess, you know, you made passing reference to the spike in energy prices and some of the cost inflation that's in the market today. I just was wondering if you could talk about the Infrastructure Solutions results this quarter, which didn't really show much operating leverage and you kind of explained that, or Brian did, with regard to the mix and the asphalt plants versus mobile concrete plants. But to what extent was that lack of operating leverage maybe a function of price/cost pressures, and if so, you know, how does that play out from a cadence standpoint over the second half? Jaco van der Merwe: Yes. No, good question. So we've definitely seen a little bit of a mix difference compared to prior year. We saw a little bit of a slower -- lower parts mix, and we did see a little bit of margin pressure on parts. But David, we don't see that to be the norm. We feel that the team is putting the right actions in place to drive that higher. Last year Q2 obviously was a very strong quarter for the IS team, and our visibility into H2 and into early part of next year, we feel the pricing action that we've taken will hopefully drive that -- back to the margins we've seen last year. Operator: Your next question comes from the line of Steve Ferazani with Sidoti. Steve Ferazani: Jaco, I do have to follow up some of the previous questions because I'm trying to think about, one, what your guide -- does your guidance now assume we're just going to get the 1-year extension because that seems to have developed much more recently? And then have you gone back and looked at asphalt plant demand when we get into this, you know, extension cycle like we did in 2009? And what's the downside risk, do you think, from that, given a [ progress ] that appears to be relatively dysfunctional? Jaco van der Merwe: Yes, so just on the bill, Steve, we're obviously very close to our trade associations there, and we're very active in those conversations. I will say, unfortunately, the delay in the bill is not necessarily because of this bill, it's because of other priorities that's overshadowed this. So we did get an indication that there will be a, probably continuing resolution until the end of the year and then hopefully either a new bill introduced or further resolution. If you look at the historical periods around the infrastructure bill, I mean, basically since the '50s, we've always had a bill. Now, there was a couple of years where we saw a slowdown in orders due to that 1-year extension. But Steve, looking at our bookings here the last 2 months, been very strong. We have a very active pipeline. Our parts booking is very strong. So at this point in time, I mean, there's no indication that we have that, you know, we're going to see a slowdown here. There's a lot of work to be done. We all know the state of our country's roads. So at this point in time, we have no indicators to give us a view that this will cause a slowdown. Steve Ferazani: Great. That's very helpful. And then clearly, I mean, we can look at the numbers, look at what was actually very strong IS revenue, just on the lower margin, and that's clearly mixed with the lower asphalt plant deliveries. But that clearly indicates outside of that, some of your other IS product lines have to be doing quite well. Can you talk a little bit about what's driving that and how much of that's driven by new product innovation, all the new ones you've come out with, or just gaining share? Jaco van der Merwe: Yes, so on the IS side, we actually have a really nice diversified portfolio now on the IS side between asphalt, concrete, and the mobile equipment side. Over the last 4 or 5 years, as you know, Astec has the same old, I will say, market-leading position in concrete. And we are very proud of the mix that business have provided us. It's a very strong performing business for us. On the mobile side, last year we had a pretty slow business on the mobile side, especially, you know, Q3 and Q4 last year. We feel that Q3, Q4 this year on that side is going to be stronger. So, you have to be overall strong. Steve Ferazani: But why? Jaco van der Merwe: From -- oh, from why? Yes, I mean we have, we introduced a new Shuttle Buggy or a replacement of an older model. That has received very good reaction from our customers. So now we have 2 models in the market, and our backlog on that equipment is now well into next year. Most of the new products that we've talked about at ConExpo and at Hillhead is actually in the Material Solutions side. So that's -- we're very confident about what that team is doing and the pipeline of new products that's flowing going through that business. Steve Ferazani: Got it. That's helpful. When we think about the Material Solutions side, which is clearly generating stronger results, the concern would be we know that things sort of slowed down when we had higher interest rates. We might be heading into that environment potentially again, um, any risks there and what are you seeing? Jaco van der Merwe: Yes Steve, I think, obviously interest rates is always something that customers and dealers are thinking about. What I will say, interest rates have been on the higher end now compared to the absolute low we saw. And we think that everybody is just used to doing business in that higher environment now. Our dealers' rental fleet utilization is actually really strong. I spoke to one of our regional sales leaders yesterday, and the rental utilization of various of our top dealers are well above 80% in some cases. And that just gives an indication that there's a lot of work, equipment is on the rental. And like we said in the prepared remarks, we've actually seen a very nice conversion of our rental to purchase, which gives the dealers the opportunity to purchase, to buy new equipment and put that back into their rental fleets. Operator: Your next question comes from the line of Steven Ramsey with Thompson Research Group. Steven Ramsey: I wanted to continue the topic in the materials segment. Can you talk about the organic demand within the segment, and then using the word resurgence to describe the demand profile there, can you talk about the nuances there of resurgence and if it's simply tied to some of the dynamics you just talked about or if it applies to other market verticals? Jaco van der Merwe: If you look back at Material Solutions a little bit over the last 4 or 5 years, you will remember that when we came out of COVID, we obviously came out with a very strong backlog and to some extent a backlog that was probably higher than what the market was absorbing at the time. And then we went through a period of time where we saw us working down inventory that was created in the dealer channel. So we are now probably more in a, I want to say, a stable environment for that business. Our dealers' inventory is very healthy and right now there's a lot of work across the country. When we came out with that record backlog in 2022, a lot of it was focused to 1 or 2 dealers. This time we're seeing it across the board, and we're actually seeing a couple of significant retail orders where a dealer got orders for equipment that will go directly to a customer, no rental. So yes, just overall, it's been a strong business there. Obviously, you know, TSG is in that product line. We actually had our best bookings month for TSG last month. So, you know, overall there's good strength. International on -- MS has been strong. So, you know, the work that the team have done there on new products, improving the quality of the product over the last 2, 3 years are, in our mind, really starting to pay off. Steven Ramsey: Okay. That's helpful. And then in the infrastructure segment, the concrete and mobile equipment side of things, as those are improving for you, what is the mix impact to margin from those 2 categories growing? And if concrete lags asphalt plants, is there a pathway to concrete getting to parity with asphalt plants? Jaco van der Merwe: Yes, so from a financial performance, I will say our concrete plants are in line with the performance of our asphalt product line. It's performing very well. Once again, since we've acquired those companies, we've done a lot of great work there. Typically margins on your mobile equipment is lower than what we have on the, I will say the engineer-to-order product lines. So if we see a bigger mix of mobile equipment, it will definitely put a bit of pressure on the overall margins. However, we do see maybe a couple of percentage points swing in that mix, but I don't think it will be significant that it will drive margins down from where they are right now. Operator: Your final question comes from the line of Dilyara Sailaubayeva from Freedom Broker. Dilyara Sailaubayeva: So I just would like to ask on the Material Solutions side, like given the mix shift toward this segment, how should we think about the timing of the backlog conversion in the second half? Jaco van der Merwe: Yes, we -- backlog on Material Solutions. We already have quite a bit of product for deliveries out in the early part of next year. But most of the backlog that we have will convert this year already. So that gives us good confidence about H2, especially on the Material Solutions side, because we have quite a bit of the outlook already covered in terms of capital orders. Dilyara Sailaubayeva: Yes, thanks. So just to follow up on the guidance side, like is the revised guidance mainly reflecting the pressure in the Infrastructure Solutions, or are there any other factors that you are implementing in the guidance? Jaco van der Merwe: Yes, I mean, I want to make sure we clear here that the guidance change was primarily due to the shift in deliveries of plants. So, the business is strong, bookings is comparable to last year, and I've already mentioned, June bookings was strong, July bookings was strong. So we see a shift of deliveries to Q4 into Q1 on that side. And as you know, if you move 3 or 4 plants from one quarter to the next, or from one year to the next, it can have a significant effect on our financial results. Operator: There are no further questions at this time. I will now turn the call back to Steve Anderson for closing remarks. Stephen C. Anderson: Thank you. We appreciate your participation in our conference call this morning and thank you for your interest in Astec. As today's news release states, this conference call has been recorded. A replay of this conference call will be available through the registration link provided in our news release, an archived webcast will be available for 12 months. The transcript will be available under the Investor Relations section of the Astec Industries website in 5 business days. This concludes our call, and I'm happy to connect if you have additional questions. Thank you all, have a good day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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Caterpillar Inc. CAT delivered a strong second-quarter 2026 performance, with revenues and earnings increasing year over year and beating the Zacks Consensus Estimate. Sales exceeded $20 billion for the first time in the company’s history, while its backlog reached a record $72 billion. The strong results and raised 2026 outlook pushed CAT shares up 6% following the earnings release. In a year, CAT stock has gained 102.9%, outperforming the industry’s 86.3% growth, the Zacks Industrial Products sector’s 22.3% gain and the S&P 500’s 22.8% increase. It has also outperformed peers Komatsu KMTUY, Terex Corporation TEX and Astec Industries ASTE, as shown in the chart below. Image Source: Zacks Investment Research Before addressing how investors should position themselves in CAT stock, let’s take a closer look at the company’s quarterly performance and underlying fundamentals. Caterpillar reported second-quarter 2026 sales and revenues of approximately $20.5 billion, up 24% year over year. The increase was driven primarily by a $3.1 billion improvement in sales volume across segments. Pricing contributed another $595 million, while favorable currency movements and higher Financial Products revenues provided additional support. Sales increased across all three primary operating segments and every geographic region. The order backlog surged 92% year over year to a record $72 billion, highlighting strong demand visibility. Cost of sales rose 18% year over year, reflecting higher manufacturing expenses, including tariff-related costs. SG&A and R&D expenses increased 19% and 12%, respectively. However, adjusted operating margin expanded to 21.9% from 17.4% in the year-ago quarter, as higher volumes and pricing more than offset cost pressures. Operating cash flow was around $5.7 billion, up 94% year over year, while free cash flow more than doubled to $5.1 billion. Caterpillar ended the quarter with cash and equivalents of around $6.7 billion. Caterpillar now expects 2026 sales and revenues to increase in the mid-to-high teens, up from its previous low-double-digit growth forecast. The revised outlook reflects healthy demand across all three primary segments. The company stated that 59% of its $72 billion backlog is expected to be delivered over the next 12 months. The ratio has remained relatively stable over the past three quarters, underscoring continued demand momentum. Adjusted operating margin is projected near the bottom of its target range, excluding tariff recoveries. Caterpillar maintains its adjusted operating margins of 15–19% at revenue levels of around $60 billion. If revenues reach $72 billion, operating margins are expected to be 18–22%, while revenues of $100 billion could support margins in the range of 21–25%. This is shown in the chart below. Image Source: Caterpillar Inc. Full-year Machinery, Power & Energy (MP&E) free cash flow is expected to land in the upper half of the company’s $6-$15 billion target range. Following the upbeat earnings, analysts have raised earnings estimates for CAT for both 2026 and 2027 over the past seven days. Over the course of the past 60 days, the estimate for 2026 has moved up 6.5% while the same for 2027 has moved up 4.7%. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2026 currently projects earnings growth of 38%, followed by 21.8% growth in 2027. The upward revisions indicate improving confidence in CAT’s earnings trajectory. Image Source: Zacks Investment Research Komatsu reported earnings per share of 67 cents for the quarter ended June 30, 2026, surpassing the Zacks Consensus Estimate of 59 cents. However, earnings declined 3% year over year. Revenues rose 4% to approximately $6.54 billion. Construction, Mining & Utility Equipment sales increased 14.4%, while Industrial Machinery & Others sales rose 21.7%. Terex reported second-quarter EPS of $1.37, topping the Zacks Consensus Estimate of $1.25 but declining 8% year over year. Revenues jumped 51% to $2.24 billion, exceeding the consensus estimate of $2.14 billion. Astec reported adjusted EPS of 94 cents, up 4.4% year over year but 10.5% below the Zacks Consensus Estimate of $1.05. Revenues increased 23.6% to $408.1 million. CAT is currently trading at a forward 12-month P/E of 28.11X, above the industry average of 26.55X. Meanwhile, Komatsu, Terex and Astec are cheaper options, trading at a forward 12-month P/E of 16.89X, 11.95X and 11.78X, respectively. Image Source: Zacks Investment Research Caterpillar is positioned to benefit from several long-term growth drivers, including U.S. infrastructure spending, mining demand tied to the energy transition, automation, data center construction and power generation. To capitalize on rising power-generation and oil-and-gas demand, CAT will restart production of its 10-megawatt gas engine platform, which was discontinued in 2022. It plans to bring about 1.5 gigawatts of capacity back online, with shipments to begin in the fourth quarter. It is also expanding turbine capacity and has repurposed a 250,000-square-foot facility in Wamego, KS. It is currently shipping PGM130 from the facility, a product that is popular for data center power generation.  Caterpillar has agreed to supply PROPWR with up to 2.1 gigawatts of large gas generator sets for data centers, oil and gas and industrial applications over the next five years. This marks the company’s sixth agreement involving at least one gigawatt of equipment for prime-power applications. In the second quarter, the Construction Industries segment delivered first units to Major Projects, a specialized fully CAT dealer-owned rental joint venture focused on supporting customers with multibillion-dollar projects across North America. Major Projects is expected to help expand Caterpillar’s presence in the rental industry. In July, Caterpillar acquired Skycatch, a provider of spatial data capture, processing and analytics solutions for the mining industry. The deal follows its February 2026 acquisition of Australian mining software company RPMGlobal. Integrating Skycatch’s technology with RPM and CAT MineStar is expected to improve mining safety, productivity and operational predictability. Caterpillar is simultaneously investing in services, e-commerce, sustainability, electrification and other digital initiatives. It expects service revenues to increase from $24 billion in 2025 to $30 billion by 2030, providing an additional source of recurring, higher-margin growth. Record quarterly sales, a $72 billion backlog, expanding margins, robust cash flow and higher earnings estimates provide strong visibility into future performance. The company is also benefiting from several structural growth opportunities spanning infrastructure, mining, data centers, power generation and services. Overall, the strong operating momentum and favorable long-term demand outlook outweigh the valuation risk at this stage. The recent upward revisions to earnings estimates further support the bullish case. Caterpillar currently sports a Zacks Rank #1 (Strong Buy), which supports our thesis. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Caterpillar Inc. (CAT) : Free Stock Analysis Report Astec Industries, Inc. (ASTE) : Free Stock Analysis Report Terex Corporation (TEX) : Free Stock Analysis Report Komatsu Ltd. (KMTUY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Astec Industries (ASTE) has drawn fresh attention after reporting second quarter 2026 results that included sales of $408.1 million and net income of $10.5 million, along with lower earnings per share than a year earlier. See our latest analysis for Astec Industries. Astec Industries’ recent results and the affirmed quarterly dividend come after a weak stretch for the stock, with the 30 day share price return down 21.85% and the 1 year total shareholder return at 3.57%. This suggests recent momentum has faded even though longer holding periods still show a mixed picture for investors. If Astec Industries’ recent moves have you rethinking where construction and infrastructure demand might flow next, it could be worth scanning for adjacent power grid technology opportunities through the 37 power grid technology and infrastructure stocks Bulls point to Astec Industries’ revenue growth and discount to some valuation estimates. Bears focus on weaker earnings per share and the recent share price slide. Which side does the current valuation appear to support next? Astec Industries closed at $44.25, while the most followed narrative centers on a fair value of $72.00 that uses a 9.13% discount rate and long term growth assumptions to bridge that gap. Read the complete narrative. Curious what kind of revenue trajectory and margin lift could support that valuation gap. The narrative leans heavily on rising earnings, expanding profitability and a lower future earnings multiple than many heavy equipment peers. The mix of backlog expectations, margin rebuild and long term funding assumptions is what really drives the fair value math here. Result: Fair Value of $72 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Astec Industries story can shift quickly if U.S. infrastructure funding softens or if acquisitions like TerraSource fail to deliver the expected margin benefits. Find out about the key risks to this Astec Industries narrative. The popular narrative frames Astec Industries as 38.5% undervalued based on a fair value of $72.00. Yet on simple earnings multiples, the picture looks very different. Astec trades on a P/E of 52x, compared with a fair ratio of 51.3x, a peer average of 47.2x, and a US Machinery industry average of 28.4x. This indicates that investors are already paying more for each dollar of Astec Industries earnings than both peers and the broader industry, with only a small gap to the fair ratio. If the market shifts toward that fair ratio rather than the more optimistic narratives, the remaining upside implied by those narratives may be more limited. See what the numbers say about this price — find out in our valuation breakdown. Sentiment around Astec Industries appears divided, with both risks and rewards to consider. Move quickly and weigh the full picture using the 3 key rewards and 3 important warning signs If Astec Industries has you thinking harder about where to put fresh capital next, do not sit on the sidelines while other opportunities line up. Target potential mispricing by scanning companies that currently screen as 52 high quality undervalued stocks and see which ones fit your return and risk preferences. Prioritise resilience by reviewing the solid balance sheet and fundamentals stocks screener (48 results) to spot businesses that pair financial strength with consistent fundamentals. Get ahead of the crowd by checking the screener containing 21 high quality undiscovered gems before these ideas sit firmly on everyone else's radar. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASTE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Shares of Astec Industries, Inc. ASTE have fallen 10.4% in the past week, sharpening attention on whether the pullback is a short-term reset or a sign of more persistent earnings pressure. The company still has support from infrastructure demand, a larger backlog and expanding aftermarket sales. Near-term execution risks, however, have increased after an earnings miss, lower adjusted EBITDA guidance and weaker estimate trends. Image Source: Zacks Investment Research On Aug. 5, Astec reported second-quarter adjusted earnings of 94 cents per share, missing the $1.05 consensus mark by 10.5%, although sales of $408.1 million topped the consensus estimate by 1.2%. Management lowered full-year 2026 adjusted EBITDA guidance to $160-$175 million from $170-$190 million. Astec Industries, Inc. price-consensus-eps-surprise-chart | Astec Industries, Inc. Quote The Zacks Consensus Estimate for 2026 earnings has moved lower following the earnings announcement, as shown in the chart below. Image Source: Zacks Investment Research The estimate revisions, earnings miss and reduced profit outlook may help explain the weaker sentiment around ASTE without establishing any single factor as the cause of the stock decline. Infrastructure Solutions implied orders fell 20% sequentially to $204.3 million in the second quarter, leaving the segment with a book-to-bill ratio of 89.5%. Backlog slipped to $288.6 million from $312.6 million at March 31, although it remained 12.7% above the prior-year level. Management said some asphalt plant customers became more conservative because of higher bitumen and diesel prices and uncertainty around federal highway reauthorization. If that caution persists, shipment timing and revenue conversion could remain uneven even as the broader infrastructure market stays supportive. Infrastructure Solutions adjusted EBITDA rose 2.2% year over year to $32.9 million in the second quarter, but margin contracted 130 basis points to 14.4%. The result shows that higher segment profit dollars did not prevent margin pressure. The first-half trend was more demanding. Segment sales increased 5.6%, while adjusted EBITDA fell 9.9% and margin declined 250 basis points to 14.5%. Product mix and shipment timing can therefore limit the earnings benefit from higher revenues, adding sensitivity to Astec's near-term profit outlook.Given these headwinds, the Zacks Consensus Estimate for 2026 earnings suggests year-over-year growth of 0.9%. However, the same for 2027 suggests an improvement of 14.3%. Image Source: Zacks Investment Research Astec ended the second quarter with consolidated backlog of $601 million, up 58% year over year. Materials Solutions backlog climbed 150.6% to $312.5 million, supported by demand for aggregate processing equipment. Parts and service sales increased 34.8% to $135.5 million and represented 33.2% of quarterly sales. That recurring-revenue base can help moderate equipment-cycle volatility. Caterpillar Inc. CAT operates businesses spanning construction and resource industries, while Terex Corporation TEX has a Materials Processing portfolio serving aggregates, environmental, concrete and handling markets. The current setup remains mixed. Backlog growth and aftermarket expansion provide support, but lower earnings expectations, order timing risk and margin sensitivity keep near-term execution concerns in focus.ASTE currently carries a Zacks Rank #5 (Strong Sell), reflecting unfavorable earnings-estimate revision trends over the one- to three-month horizon. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.The stock has a VGM Score of A, Value Score of B, Growth Score of A and Momentum Score of A. Those favorable Style Scores indicate attractive characteristics across value, growth and momentum measures, but the Style Scores are designed to complement the Zacks Rank rather than replace it. With the Rank currently at #5, the near-term earnings signal remains the more cautionary indicator despite ASTE's strong style profile. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Astec Industries, Inc. (ASTE) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Terex Corporation (TEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Astec Industries Inc. ASTE reported adjusted earnings of 94 cents per share for the second quarter of 2026, up 4.4% year over year but missed the Zacks Consensus Estimate of $1.05 by 10.5%. Including one-time items, earnings per share in the quarter were 45 cents compared with 72 cents in the year-ago quarter. Net sales increased 23.6% year over year to $408.1 million and surpassed the Zacks Consensus Estimate of $403 million by 1.2%. The increase was primarily driven by net favorable volume and mix, along with favorable pricing that generated increases in equipment sales of $42.6 million and parts and service revenues of $35 million. Sales from acquired businesses also contributed $48.6 million in net sales. Astec ended the quarter with a backlog of $601 million, reflecting a 58% year-over-year increase led by strong demand for aggregate processing equipment. Materials Solutions backlog surged 150.6% to $312.5 million, while Infrastructure Solutions segment’s backlog increased 12.7% to $288.6 million. Overall implied orders reached roughly $460 million in the quarter, up 6.7% sequentially, while the consolidated book-to-bill ratio was 113%. Astec Industries, Inc. price-consensus-eps-surprise-chart | Astec Industries, Inc. Quote Cost of sales rose 24.5% year over year to $301.3 million. Gross profit increased 20.9% year over year to $106.8 million. Net favorable volume and mix, coupled with favorable pricing and lower warranty program, were partially offset by manufacturing inefficiencies and the impact of inflation on materials, labor and overhead. However, gross margin contracted to 26.2% from 26.7%. Selling, general and administrative expenses increased 27.6% to $85.5 million. The rise reflected amortization of acquired intangibles, higher personnel, technology and support costs, dealer commissions as well as increased costs related to Astec’s strategic transformation program.The company reported operating profit of $20.4 million in the second quarter of 2026 compared with $21.4 million in the second quarter of 2025. Adjusted operating income advanced 31.3% to $35.2 million, while adjusted operating margin expanded 50 basis points to 8.6%. Adjusted EBITDA climbed 26% to $42.6 million, with the corresponding margin improving 20 basis points to 10.4%. Interest expense soared 238% year over year to $7.1 million primarily due to higher average outstanding borrowings along with increased interest rates on the 2025 Credit Facility compared with Astec’s previous credit facility. Materials Solutions net sales gained 43% year over year to $179.8 million, reflecting stronger dealer and customer demand for aggregate crushing, screening and conveying equipment. Segment operating adjusted EBITDA rose 54.5% to $22.1 million. The segment's operating adjusted EBITDA margin expanded 90 basis points to 12.3%. Implied orders for the segment increased 45.3% sequentially to $255.7 million, leading to a book-to-bill ratio of 142.2%. Materials Solutions backlog soared 150.6% year over year to $312.5 million at the second-quarter end. The Infrastructure Solutions segment generated sales of $228.3 million, up 11.6% year over year. Growth was supported by sustained demand in concrete, mobile paving and forestry equipment, and inorganic contributions. Segment operating adjusted EBITDA increased 2.2% to $32.9 million. The segment margin contracted 130 basis points to 14.4%. Implied orders fell 20% sequentially to $204.3 million, and the book-to-bill ratio stood at 89.5%. Astec attributed the weakness primarily to conservatism among certain asphalt plant customers. Infrastructure backlog still increased 12.7% to $288.6 million. Parts and service sales increased 34.8% year over year to $135.5 million. These revenues represented 33.2% of second-quarter net sales and 35% of sales for the first half of 2026. For the first six months of 2026, operating cash flow increased to $52.8 million from $33.4 million, while free cash flow rose to $37.3 million from $25.6 million.  For the first half of fiscal 2026, capital expenditures increased to $15.5 million from $7.8 million in the prior-year period. Total liquidity was $265.8 million, comprising $75.7 million of cash available for operating purposes and $190.1 million of revolver availability. Net debt to trailing 12-month adjusted EBITDA was about 2.2x, remaining within management’s stated 1.5-2.5x target range. Astec lowered its full-year 2026 adjusted EBITDA guidance to $160-$175 million from its previous projection of $170-$190 million. Management cited macro-driven factors affecting the timing of asphalt plant shipments within Infrastructure Solutions. The company nevertheless described the overall Infrastructure Solutions market as healthy, with solid concrete-equipment demand and improvement in forestry and mobile paving. In Materials Solutions, management expects federal, state and local infrastructure projects, along with data-center construction, to support multi-year demand for aggregate equipment. Over the past six months, Astec stock declined 23.3% against the industry’s 12% growth. Image Source: Zacks Investment Research Astec carries a Zacks Rank #5 (Strong Sell) at present. Caterpillar Inc. CAT reported adjusted earnings of $8.17 per share for the second quarter of 2026, up 73% year over year. The figure surpassed the Zacks Consensus Estimate of $6.25 by 30.72%. Higher sales volume and favorable price realization supported the performance.Including one-time items, Caterpillar’s earnings per share were $7.77 compared with $4.62 in the year-ago quarter. Sales and revenues increased 24% to $20.5 billion and topped the consensus estimate of $19.3 billion by 6.37%. The quarter marked Caterpillar’s first-ever revenue total above $20 billion. Caterpillar currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Komatsu KMTUY reported earnings per share of 67 cents for the quarter ended June 30, 2026, surpassing the Zacks Consensus Estimate of 59 cents. Earnings, however, declined 3% year over year. Komatsu’s revenues came in at around $6.54 billion, marking a 4% rise on a year-over-year basis. Its Construction, Mining & Utility Equipment sales increased 14.4% in the quarter, while Industrial Machinery & Others sales rose 21.7%. Komatsu currently carries a Zacks Rank #2 (Buy). Terex Corporation TEX reported second quarter 2026 earnings per share of $1.37, beating the Zacks Consensus Estimate of $1.25. The figure marked an 8% decline from the year-ago quarter. Terex’s revenues increased 51% year over year to $2.24 billion, which surpassed the Zacks Consensus Estimate of $2.14 billion. Terex currently carries a Zacks Rank #3 (Hold). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Astec Industries, Inc. (ASTE) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Terex Corporation (TEX) : Free Stock Analysis Report Komatsu Ltd. (KMTUY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record revenues and adjusted EBITDA in Q2 2026, with net sales up 23.6% and adjusted EBITDA up 26% year-over-year. Strong backlog growth of 57.9% to $601.1 million, driven by robust demand in the material solutions segment. Parts and service revenue surged 34.8% to $135.5 million, reaching 33.2% of net sales, indicating strong aftermarket demand. Successful launch of 8 new models at the Hillhead 2026 event, including the Frontier Series, expanding global market reach. Proposed Build America 250 Act includes a 7% increase in highway funding and a 12% increase for bridges, providing a positive long-term outlook for infrastructure demand. Revised full-year 2026 adjusted EBITDA guidance downward from $170-$190 million to $160-$175 million due to delayed asphalt plant deliveries. Macro uncertainties, including higher oil prices and timing of the federal highway bill renewal, are causing customers to shift deliveries to future quarters. Infrastructure Solutions segment experienced margin compression of 130 basis points due to a mix shift between asphalt plants and mobile paving equipment. Adjusted EBITDA margin only increased 20 basis points despite strong revenue growth, indicating limited operating leverage. The delay in the federal highway bill renewal creates uncertainty, with a continuing resolution likely, potentially impacting customer confidence and order timing. Warning! GuruFocus has detected 4 Warning Signs with ASTE. Is ASTE fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss the different scenarios and assumptions behind the upper and lower ends of the revised EBITDA guidance?A: CEO Jaco Funderuva explained that the guidance revision is due to a shift in asphalt plant deliveries, with customers scheduling deliveries for Q4 2026 and Q1 2027. The company has strong visibility to achieve the lower end of the range, while the higher end depends on securing 1-2 additional plant deals in the coming weeks. He noted that July was one of the best booking months for asphalt plants and parts, providing confidence in the revised range. Q: Do you think the delays in asphalt plant deliveries are related to the continuing resolution around the Build America 250 Act?A: CEO Jaco Funderuva noted that while there is uncertainty in the market due to oil price spikes and highway bill timing, the order pattern is similar to last year, though the slow period was slightly longer this year. He emphasized that strong bookings in June and July indicate continued demand, with a good pipeline and customers reporting plenty of work available. Q: Does your guidance assume a one-year extension of the highway bill, and what is the downside risk given the current political environment?A: CEO Jaco Funderuva stated that a continuing resolution until year-end is likely, with a new bill expected afterward. He highlighted that historically, the U.S. has always had an infrastructure bill since the 1950s, and despite potential delays, current bookings and parts orders remain strong with no indications of a slowdown. Q: Can you elaborate on the organic demand within the material solutions segment and the "resurgence" you mentioned?A: CEO Jaco Funderuva explained that after working down dealer inventory levels post-COVID, the segment is now in a stable environment with healthy dealer inventories. Unlike the 2022 record backlog that was concentrated in a few dealers, current demand is broad-based, with strong bookings, including a record month for the segment, and significant retail orders going directly to customers without rental. Q: What is the mixed impact on margins from the growth in concrete and mobile paving equipment within the infrastructure solutions segment?A: CEO Jaco Funderuva noted that concrete plants perform in line with asphalt plants financially, but mobile equipment typically carries lower margins. While a larger mix of mobile equipment could pressure overall margins, he expects only a couple of percentage points swing in mix, which should not significantly drive margins down from current levels. Q: How should we think about the timing of backlog conversion in the material solutions segment for the second half of the year?A: CEO Jaco Funderuva stated that while some material solutions backlog extends into early next year, most of it will convert this year, providing strong confidence in second-half performance, particularly for the material solutions segment, as a significant portion of the outlook is already covered by capital orders. Q: Is the revised guidance mainly reflecting pressure in the infrastructure solutions segment, or are there other factors?A: CEO Jaco Funderuva clarified that the guidance change is primarily due to the shift in plant deliveries, not a decline in business. Bookings are comparable to last year, with strong June and July performance. He emphasized that moving just 3-4 plants between quarters or years can significantly impact financial results. Q: Can you explain the lack of operating leverage in the infrastructure solutions segment this quarter and the impact of price/cost pressures?A: CFO Brian Harris attributed the margin compression to a change in product mix between asphalt plants and mobile paving equipment, along with a lower parts mix and some margin pressure on parts. He noted that these issues are not expected to be the norm, and pricing actions taken should help restore margins to last year's levels in the second half. Q: What is driving the strong performance in the infrastructure solutions segment outside of asphalt plants?A: CEO Jaco Funderuva highlighted the diversified portfolio, including a market-leading position in concrete and strong performance in mobile paving. He mentioned the successful launch of a new shuttle buggy model, which has received excellent customer response, with backlog extending well into next year. Most new product launches are focused on the material solutions side. Q: Are there risks to the material solutions segment from potentially higher interest rates?A: CEO Jaco Funderuva acknowledged that interest rates are always a consideration but noted that the market has adapted to the higher rate environment. Dealer rental fleet utilization is strong, with some top dealers above 80%, and there has been active conversion of rental equipment to purchases, allowing dealers to replenish inventory with new equipment. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Second Quarter 2026 Overview (all comparisons are made to the corresponding prior year second quarter unless otherwise specified): Net sales of $408.1 million, increased 23.6% Net income of $10.5 million; Adjusted net income of $21.8 million EBITDA of $35.6 million; Adjusted EBITDA of $42.6 million Diluted EPS of $0.45; Adjusted EPS of $0.94 Operating cash flow of $52.8 million year to date; Free cash flow of $37.3 million year to date Backlog of $601.1 million grew 57.9% CHATTANOOGA, Tenn., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial results for the second quarter ended June 30, 2026. "We reported second quarter results with increased net sales, EBITDA and backlog. Materials Solutions orders continued to remain strong, while dealers reported healthy inventory levels and rental conversions." said Jaco van der Merwe, Chief Executive Officer. Mr. van der Merwe went on to say, "For Infrastructure Solutions, order patterns remained consistent with the prior year, however macro-driven events are impacting the timing of shipments for asphalt plants. As such, we are revising our full year 2026 adjusted EBITDA guidance from the previous range of $170 million to $190 million to $160 million to $175 million." Segments Results Our reportable segments are comprised of sites based upon the nature of the products or services produced, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations. Infrastructure Solutions - Design, engineer, manufacture and market a complete line of asphalt plants, concrete plants and their related components and ancillary equipment, including industrial automation controls and telematics platforms, as well as supply asphalt road construction equipment, industrial thermal systems, land clearing, recycling and other heavy equipment, along with aftermarket parts. Net sales of $228.3 million increased 11.6% compared to the same period the prior year due largely to demand for concrete, mobile paving, forestry equipment and inorganic contributions. Backlog increased 12.7%. Implied orders declined sequentially by $51.1 million, or 20.0%, to $204.3 million. The book-to-bill ratio was 89.5%. Both were primarily due to macro-driven conservatism by certain asphalt plant customers. Segment Operating Adjusted EBITDA of $32.9 million increased 2.2% and Segment Operating Adjusted EBITDA margin of 14.4% decreased 130 basis points compared to the second quarter the prior year. Materials Solutions - Design and manufacture hard and soft rock processing equipment, in addition to servicing and supplying parts for the aggregate, civil construction, energy, mining, hydro-electric, recycling, ports and bulk material handling markets. Net sales of $179.8 million increased by 43.0% due to anticipated resurgence of dealer and customer demand for aggregate crushing, screening and conveying equipment. Implied orders increased sequentially by $79.7 million, or 45.3%, to $255.7 million. The book to bill ratio stood at 142.2%. Segment Operating Adjusted EBITDA of $22.1 million increased $7.8 million, or 54.5%, and Segment Operating Adjusted EBITDA margin of 12.3% increased 90 basis points versus the same period in 2025. Liquidity and Cash Flow Our total liquidity was $265.8 million, consisting of $75.7 million of cash and cash equivalents available for operating purposes and $190.1 million available for additional borrowings under our revolving credit facility. Operating Cash Flow in the quarter was $12.1 million and Free Cash Flow in the quarter was $4.7 million. Second Quarter Capital Allocation Capital expenditures of $7.4 million. Dividend payment of $0.13 per share. Investor Conference Call and Webcast Astec will conduct a conference call and live webcast today, August 5, 2026, at 8:30 A.M. Eastern Time, to review its second quarter 2026 financial results. To access the call (Local) dial +1 (585) 542-9983 or (Toll-Free) +1 (833) 461-5787, meeting ID: 875163491 on Wednesday, August 5, 2026, at least 10 minutes prior to the scheduled time for the call. International dial-ins can be accessed at: https://help.events.q4inc.com/eahc/international-dial-in-numbers You may also access a live webcast of the call, and twelve month replay, at: https://events.q4inc.com/attendee/875163491 You will need to give your name and company affiliation and reference Astec. A transcript of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website at www.astecindustries.com within 5 business days after the call. About Astec Astec, (www.astecindustries.com), is a manufacturer of specialized equipment for asphalt road building, aggregate processing and concrete production. Astec's manufacturing operations are divided into two primary business segments: Infrastructure Solutions that includes road building, asphalt and concrete plants, thermal and storage solutions; and Materials Solutions that include our aggregate processing equipment. Astec also operates a line of controls and automation products designed to deliver enhanced productivity through improved equipment performance. Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995 This News Release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate, the United States and global economies and guidance for fiscal 2026. Statements in this News Release that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "believes," "should," "would," "could," "forecast," "management is of the opinion," use of the future tense and similar words or phrases. These forward-looking statements are based largely on management's expectations, which are subject to a number of known and unknown risks, uncertainties and other factors discussed and described in our most recent Annual Report on Form 10-K, including those risks described in Part I, Item 1A. Risk Factors thereof, and in other reports filed subsequently by us with the Securities and Exchange Commission, including those risks described in Part II, Item 1A in our most recent Quarterly Report on Form 10-Q, which may cause actual results, financial or otherwise, to be materially different from those anticipated, expressed or implied by the forward-looking statements. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law. Non-GAAP Measures In an effort to provide investors with additional information regarding the Company's results, the Company refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures which management believes provide useful information to investors. These non-GAAP measures have no standardized meaning prescribed by U.S. GAAP and therefore are unlikely to be comparable to the calculation of similar measures for other companies. Management of the Company does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. Nonetheless, this non-GAAP information can be useful in understanding the Company's operating results and the performance of its core business. Management of the Company uses both GAAP and non-GAAP financial measures to establish internal budgets and targets to evaluate the Company's financial performance against such budgets and targets. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in the tables. When we provide guidance for adjusted EBITDA we do not provide a reconciliation of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjusted items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our Company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts. For Additional Information Contact: Steve Anderson Senior Vice President of Administration and Investor RelationsPhone: (423) 899-5898 E-mail: [email protected] (Continued) Astec Industries Inc.Reportable Segment Net Sales and Operating Adjusted EBITDA (Continued)(In millions, except percentage data; unaudited) We present certain non-GAAP information that can be useful in understanding our operating results and the performance of our core business. We use both GAAP and non-GAAP financial measures to establish internal budgets and targets and to evaluate financial performance against such budgets and targets. Beginning with the announcement of results for the third quarter of 2025, we have excluded amortization of acquired intangibles from the presentation of Adjusted income from operations, Adjusted net income attributable to controlling interest and Adjusted EPS. We have adopted this change to remove the effect of non-cash charges that are not affected by operations in any particular period unless an intangible asset becomes impaired, or the useful life of an intangible asset is revised. Additionally, beginning with the announcement of results for the first quarter of 2026, we have included the gain or loss on sale of property and equipment in the presentation of Adjusted income from operations, Adjusted net income attributable to controlling interest, Adjusted EPS and Adjusted EBITDA. Prior periods have been updated to reflect these changes. We exclude the costs and related tax effects, which are based on the statutory tax rate applicable to each respective item unless otherwise noted below, of the following items as we do not believe they are indicative of our core business operations: Transformation program - Incremental costs related to the execution of our ongoing strategic transformation initiatives which may include personnel costs, third-party consultant costs, duplicative systems usage fees, administrative costs, accelerated depreciation and amortization on certain long-lived assets and other similar type charges. Transformation program initiatives include our multi-year phased implementation of a standardized enterprise resource planning system. These costs are included in "Cost of sales" and "Selling, general and administrative expenses", as appropriate, in the Consolidated Statements of Operations. Restructuring and other related charges - Charges related to restructuring activities, to the extent that they are experienced, may include personnel termination actions and reorganization efforts to simplify and consolidate our operations. These costs are recorded in "Restructuring and other operating charges (gains), net" in the Consolidated Statements of Operations. Goodwill impairment - Goodwill impairment charges, to the extent that they are experienced, are recorded in "Goodwill impairment" in the Consolidated Statements of Operations. Asset impairment - Asset impairment charges, to the extent that they are experienced, are recorded in "Restructuring and other operating charges (gains), net" in the Consolidated Statements of Operations. Amortization of acquired intangible assets - Non-cash charges related to the amortization of acquired intangible assets. These costs are typically included in "Selling, general and administrative expenses" in the Consolidated Statements of Operations. Acquisition and integration costs - Costs associated with the pursuit of acquisition opportunities or the effected acquisition and integration of acquired businesses. These costs are typically included in "Cost of sales" and "Selling, general and administrative expenses" in the Consolidated Statements of Operations. Astec Industries Inc.EBITDA and Adjusted EBITDA Reconciliations(In millions, except percentage data; unaudited)

Astec Industries (ASTE) came out with quarterly earnings of $0.94 per share, missing the Zacks Consensus Estimate of $1.05 per share. This compares to earnings of $0.88 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -10.48%. A quarter ago, it was expected that this maker of equipment for building, paving and mining would post earnings of $0.88 per share when it actually produced earnings of $0.54, delivering a surprise of -38.64%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Astec Industries, which belongs to the Zacks Manufacturing - Construction and Mining industry, posted revenues of $408.1 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.39%. This compares to year-ago revenues of $330.3 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Astec Industries shares have added about 20.6% since the beginning of the year versus the S&P 500's gain of 13%. While Astec Industries has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Astec Industries was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.75 on $376 million in revenues for the coming quarter and $3.63 on $1.61 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Construction and Mining is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Industrial Products sector, Applied Industrial Technologies (AIT), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This industrial products company is expected to post quarterly earnings of $2.91 per share in its upcoming report, which represents a year-over-year change of +3.9%. The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. Applied Industrial Technologies' revenues are expected to be $1.29 billion, up 5.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Astec Industries, Inc. (ASTE) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record revenue and adjusted EBITDA growth were driven by a 23.6% increase in net sales, supported by strong demand in concrete, mobile paving, and forestry equipment. The Material Solutions segment is experiencing a resurgence driven by a combination of organic and inorganic growth, supported by healthy dealer inventory levels and strong bookings, including a record month for TSG. Infrastructure Solutions faced margin compression of 130 basis points primarily due to a product mix shift toward mobile paving equipment over higher-margin asphalt plants. Management attributed the shift in asphalt plant deliveries to macro-driven uncertainty, including higher oil and diesel prices affecting customer capital expenditure timing. Parts and service revenue grew 34.8% to reach 33.2% of total net sales, serving as a critical pillar for long-term margin expansion and business stability. Operational excellence initiatives in manufacturing and procurement are beginning to yield efficiency gains, supporting the company's 2030 profitability targets. Full-year 2026 adjusted EBITDA guidance was revised downward to $160 million to $175 million to account for specific asphalt plant deliveries shifting into 2027. Second-half EBITDA is expected to follow a 1/3 and 2/3 split between the third and fourth quarters, respectively, as production schedules align with customer delivery requests. The company anticipates net leverage will reduce to approximately 1.7x by the end of 2026, providing flexibility for strategic M&A and international expansion. Management expects the BUILD America 250 Act to provide a stable baseline for growth, noting that while the headline funding figure is lower, the guaranteed formula-based funding for highways and bridges is actually increasing. New product launches from the Omagh facility and upcoming prototypes are expected to gain further global market traction over the next 12 to 18 months. A temporary extension of the Federal Highway Bill via a continuing resolution is anticipated, which has caused some smaller customers to hesitate on large equipment orders. Global mining demand for lithium, nickel, and copper—driven by electrification and data center construction—is identified as a multi-year tailwind for the Material Solutions segment. Management noted that while interest rates remain high, the market has largely adjusted to the environment, evidenced by active rental-to-purchase conversions by dealers. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The lower end of the range is considered highly visible, while the upper end depends on the timing of 1 or 2 specific plant deals falling into the fourth quarter. Management noted that July was one of the best booking months for both asphalt plants and parts, providing confidence in the revised targets. Management clarified that the delay is due to competing legislative priorities rather than opposition to the bill itself. While a 1-year extension historically caused slowdowns, current booking trends and a robust pipeline suggest demand remains resilient due to the critical state of national infrastructure. Concrete plant margins are currently in line with asphalt product lines, performing well since acquisition. Mobile equipment generally carries lower margins than engineer-to-order plants, so a significant mix shift toward mobile could exert minor pressure on overall segment margins.

Interested in Astec Industries, Inc.? Here are five stocks we like better. Record Q2 results: Revenue rose 23.6% year over year to $408.1 million, while adjusted EBITDA increased 26% to $42.6 million. Parts and service sales grew 34.8% to $135.5 million. Materials Solutions led growth: Segment revenue increased 43% and adjusted EBITDA climbed 54.5%, while total backlog surged 57.9% to $601.1 million, supported by strong order intake and demand for mobile plants. 2026 guidance was reduced: Astec lowered its full-year adjusted EBITDA outlook to $160 million-$175 million from $170 million-$190 million because some asphalt plant deliveries shifted into late 2026 and early 2027 amid economic uncertainty. Astec Industries (NASDAQ:ASTE) reported record second-quarter revenue and adjusted EBITDA, supported by growth in its Materials Solutions business, higher parts and service sales, and contributions from concrete, mobile paving and forestry equipment. The company also reduced its full-year adjusted EBITDA outlook, citing a shift in timing for certain asphalt plant deliveries. Chief Executive Officer Jaco van der Merwe said net sales rose 23.6% from the prior-year period, while adjusted EBITDA increased 26%. “We delivered a solid quarter with record revenues and adjusted EBITDA,” van der Merwe said, adding that the company continues to pursue initiatives intended to improve consistency, profitability and growth. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Astec recorded second-quarter net sales of $408.1 million, up $77.8 million from a year earlier. Adjusted EBITDA was $42.6 million, compared with $33.8 million in the second quarter of 2025. Adjusted EBITDA margin rose 20 basis points to 10.4%, while adjusted earnings per share increased to $0.94 from $0.90. Parts and service revenue increased 34.8% year over year to $135.5 million, representing 33.2% of quarterly sales. Van der Merwe said parts and service revenue reached 35% of net sales on a year-to-date basis. Infrastructure Solutions: Net sales increased 11.6% to $228.3 million, aided by organic and inorganic contributions. The segment benefited from demand for concrete, mobile paving and forestry equipment. Segment adjusted EBITDA dollars increased slightly, though margin declined 130 basis points because of a mix shift between asphalt plant and mobile paving equipment. Materials Solutions: Net sales climbed 43% to $179.8 million on organic and inorganic growth. Adjusted EBITDA increased 54.5% to $22.1 million, and segment adjusted EBITDA margin expanded 90 basis points to 12.3%. → 3 Drone Stocks That Should Soar After the Summer Slump Van der Merwe said dealer inventories in Materials Solutions are healthy, with increased demand for mobile plants and active conversions of rental equipment to purchases during the quarter. He also said crushing and screening units built at Astec’s Omagh, Northern Ireland, facility are gaining traction. Astec ended the quarter with backlog of $601.1 million, an increase of 57.9% from the prior year. Materials Solutions backlog increased 150.6%, reflecting both organic and inorganic growth, while Infrastructure Solutions backlog rose 12.7%, primarily due to orders for concrete, mobile paving and forestry products. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Consolidated implied orders were $460 million, up 49.1% from a year earlier and 6.7% sequentially. Management said Materials Solutions posted strong order intake across its operations. In Infrastructure Solutions, however, select asphalt plant customers have moved scheduled deliveries into the fourth quarter of 2026 and the first quarter of 2027. Van der Merwe attributed the delivery shifts to macroeconomic uncertainty, including higher oil and diesel prices and questions surrounding the timing of federal highway legislation. He said bookings for asphalt plants remain comparable with 2025 levels and noted that June and July order activity was strong, with July among the company’s best booking months for asphalt plants. “The business is strong,” van der Merwe said in response to an analyst question. “Bookings is comparable to last year,” though shifting several plant deliveries between quarters or years can have a meaningful effect on financial results. Astec lowered its full-year 2026 adjusted EBITDA guidance to a range of $160 million to $175 million, from its previous outlook of $170 million to $190 million. The company expects roughly one-third of second-half adjusted EBITDA in the third quarter and two-thirds in the fourth quarter. Management said the lower end of the new range has strong visibility, while reaching the upper end will depend partly on the timing of orders that could be added for fourth-quarter delivery. The company maintained its other full-year expectations, including: Effective tax rate of 26% to 30% Depreciation and amortization of $55 million to $65 million Capital expenditures of $35 million to $45 million Quarterly adjusted selling, general and administrative expense of $70 million to $75 million Interest expense of about $7 million per quarter Chief Financial Officer Brian Harris said Astec ended the quarter with $75.7 million in cash and cash equivalents and $190.1 million in available credit, for total available liquidity of $265.8 million. Net leverage was 2.2 times, within the company’s 1.5-to-2.5-times target range. Astec expects net leverage to decline to about 1.7 times by the end of 2026. Management said it expects federal, state and local infrastructure projects to support multiyear demand. Van der Merwe said the proposed BUILD America 250 Act includes a proposed 7% increase in highway funding and an approximately 12% increase for bridge improvements, while increasing the formula-funded share of transportation spending. The timing of renewal for the Federal Highway Bill remains uncertain, and management said a continuing resolution appears likely. Still, van der Merwe said the company believes a longer-term bill is a question of “when, not if.” Astec also introduced eight new models at the Hillhead 2026 quarrying, construction and recycling event in the United Kingdom, including products in its Frontier crushing, screening, washing and material handling lines. The company displayed two additional prototypes that it expects to make available for sale later this year and introduced two new U.K. dealers for its products. Astec Industries, Inc is a designer and manufacturer of specialized equipment for infrastructure-related markets. Headquartered in Chattanooga, Tennessee, the company develops, engineers and produces machinery for asphalt road-building, aggregate processing, concrete production, underground mining, landscaping and utility installation. Astec's product portfolio includes asphalt plants, portable crushers, conveyors, screening plants, mixers, continuous miners and related support equipment. Organized into multiple operating segments—Roadbuilding; Aggregate & Mining; Energy; and Pavement Preservation & Maintenance—Astec Industries serves contractors and municipalities that build and maintain transportation, energy and utility networks. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Astec Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.