Astec Industries, Inc.

Consolidated Q2 net sales were $408.1 million, up $77.8 million, or 23.6%, year over year. Adjusted EBITDA was $42.6 million, up 26% from $33.8 million, and adjusted EBITDA margin was 10.4%, up 20 basis points. Adjusted EPS was $0.94 versus $0.90 in Q2 last year. Parts and service revenue rose 34.8% to $135.5 million, or 33.2% of net sales in the quarter. Backlog was $601.1 million, up 57.9%, and implied orders were $460 million, up 49.1% year over year and 6.7% sequentially. For 2026, management now expects adjusted EBITDA of $160 million to $175 million, effective tax rate of 26% to 30%, depreciation and amortization of $55 million to $65 million, capital expenditures of $35 million to $45 million, adjusted SG&A of $70 million to $75 million per quarter, and interest expense of approximately $7 million per quarter.

Jaco van der Merwe emphasized that the quarter showed progress on the company’s push for greater consistency, profitability, and growth. He highlighted strong demand in Material Solutions, healthy dealer inventory, new product launches from Hillhead, and growing parts and service as key drivers. His tone was constructive and confident, and he repeatedly said the business remains on track toward its 2030 targets despite some timing shifts in deliveries.

Brian Harris focused on the quarter’s financial strength: revenue of $408.1 million, adjusted EBITDA of $42.6 million, adjusted EBITDA margin of 10.4%, and adjusted EPS of $0.94. He also noted the segment mix: Infrastructure Solutions sales rose 11.6% to $228.3 million but saw 130 basis points of margin compression from product mix, while Material Solutions sales rose 43% to $179.8 million and adjusted EBITDA rose 54.5% to $22.1 million. On the balance sheet, he cited cash and cash equivalents of $75.7 million, available credit of $190.1 million, total liquidity of $265.8 million, and net leverage of 2.2x, with an expectation to reduce to about 1.7x by end of 2026.

Analysts focused on why full-year EBITDA guidance was reduced and whether the timing shift in asphalt plant deliveries was linked to federal highway bill uncertainty, higher oil and diesel prices, or a broader demand slowdown. Management said the revision was primarily due to deliveries moving into Q4 2026 and Q1 2027, not a collapse in demand, and pointed to strong June and July bookings, a healthy pipeline, and no current evidence of a slowdown. Questions also probed margin pressure in Infrastructure Solutions and the resilience of Material Solutions; management said the lower margin was mainly mix-related, while Material Solutions was benefiting from healthy dealer inventory, strong rental utilization, and improving product quality and new launches.