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- **Record EBITDA Growth**: 55.7% YoY jump to $27.1 million, with margins up 170 bps to 7.7%.
- **TerraSource Payoff**: $64.1M backlog contribution, 670 bps parts mix improvement, with full synergies expected in 2026.
- **Tariff Resilience**: No margin impact despite elevated tariffs, via dual sourcing and strategic pricing.
- **Rare Earth Opportunity**: Secured first orders from government-backed miner, leveraging existing equipment.
- **Balance Sheet Strength**: $312M liquidity, 2.0x net debt ratio within target range.

**【CEO Summary Section】**
- **Revenue Growth and Margin Expansion**: Third-quarter adjusted EBITDA rose 55.7% year-over-year to $27.1 million, with margins increasing 170 basis points to 7.7%. The company raised its full-year EBITDA guidance to $132-$142 million, up from $123 million previously.
- **TerraSource Integration Success**: The acquisition added $64.1 million to the backlog, with parts sales mix improving 670 basis points. Management expects full synergies to materialize in 2026, including shorter lead times and enhanced parts availability.
- **Tariff Mitigation**: Proactive strategies like dual sourcing, reshoring, and strategic pricing neutralized tariff impacts, with no margin dilution despite elevated tariffs.
- **Infrastructure Tailwinds**: Federal highway funding and state project backlogs support asphalt/concrete plant demand, while rare earth mining orders (e.g., from a government-backed firm) are emerging.

**【CFO Financial Commentary】**
- **Top-Line Strength**: Net sales grew 20.1% driven by asphalt/concrete plants and TerraSource, with trailing 12-month EBITDA margin up 300 basis points to 10.5%.
- **Balance Sheet Health**: $67.3 million cash, $244.8 million available credit, and 2.0x net debt/EBITDA ratio within target range, enabling M&A flexibility.
- **Guidance Details**: Q4 SG&A $65-73 million, D&A $37-42 million. Full-year tax rate 24-27%, capex $25-35 million.

**【Q&A Highlights】**
- **Tariff Strategy**: Dynamic pricing, alternative suppliers, and reshoring maintained margins despite 2025 tariff increases.
- **Rare Earth Mining**: Received first orders from a government-backed miner, with existing equipment suitable for new applications.
- **TerraSource Synergies**: Target 12-month synergy realization, with parts fill rates expected to match legacy Astec levels within 12 months.
- **Parts Growth Driver**: 15% Q3 parts sales growth driven by operational excellence, not just market conditions.


Astec Industries, Inc. (ASTE) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ASTE

ASTE fundamentals

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