Tue, Apr 29, 8:35 PM (23 days ago)
**Astec Industries, Inc. (ASTE) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $329.4 million, up 6.5% from Q1 2024. - **Gross Profit:** $92.4 million, a 20.2% increase, with a gross margin of 28.1%. - **Net Income:** $14.3 million, a 320.6% increase. - **Earnings per Share (EPS):** $0.62, a 313.3% increase. - **Cash Flow from Operations:** $20.5 million, a significant improvement from a $47.0 million outflow in Q1 2024. **Profit Margins:** - **Gross Margin:** 28.1%, up from 24.9% in Q1 2024. - **Operating Margin:** 6.2%, improved from 2.0% in Q1 2024. **Segment Performance:** - **Infrastructure Solutions:** Revenue up 16.7% to $236.0 million, with Segment Operating Adjusted EBITDA up 67.6% to $42.9 million. - **Materials Solutions:** Revenue down 12.7% to $93.4 million, with Segment Operating Adjusted EBITDA down 1.9% to $5.2 million. **Trends and Uncertainties:** - **Backlog:** Decreased by 28.1% to $402.6 million due to shorter production lead times and variable ordering patterns from dealer customers. - **Strategic Transformation:** Ongoing ERP implementation with total costs expected to range from $180 to $200 million, concluding in 2028 or 2029. - **Economic Factors:** Monitoring steel and oil prices, geopolitical conflicts, and macroeconomic factors that may affect business. **Future Operations Impact:** - **Acquisition of TerraSource:** Planned acquisition for $245.0 million, expected to close in Q3 2025, subject to regulatory approvals. - **Capital Expenditures:** Estimated between $35.0 million and $45.0 million for 2025. - **Liquidity:** Total liquidity of $238.9 million as of March 31, 2025, with $90.1 million in cash and cash equivalents and $148.8 million available under the revolving credit facility. **Conclusion:** Astec Industries, Inc. demonstrated strong financial performance in Q1 2025, with significant improvements in revenue, net income, and cash flow. The company is focused on strategic initiatives, including the ERP implementation and the planned acquisition of TerraSource, which are expected to drive future growth. However, the company faces uncertainties related to economic factors and the successful integration of the acquired business.