olivLaw · US equity research
Astec Industries, Inc. ASTE
Construction Machinery & Equip · SIC 3531 · Vertical: Construction Machinery & Equip (SIC 3531)
Astec Industries designs and manufactures equipment for road building, asphalt and concrete production and aggregate processing, plus parts and services. In the second quarter of 2026 net sales grew 23.6% to 408.1 million USD and backlog reached 601.1 million USD, yet the company cut its 2026 adjusted EBITDA guidance because of timing of asphalt plant shipments.
At the close of 04 Nov 2026, Astec Industries, Inc. (ASTE) stock was 39.30 USD (−1.90% on the day), with market capitalisation 904.9 m USD, P/E 46.4 on diluted EPS of 0.85 USD over the last 12 months, dividend yield 1.32%, beta 1.22, 52-week range 37.96–65.02 USD. Latest reported quarter (Q2 2026): revenue of 408.1 m USD (+23.6% YoY), net income of 10.5 m USD (−37.1% YoY), diluted EPS 0.45 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 46.7
- neutral
- Bollinger (20, 2)
- 37.83 – 40.47
- in the upper half of the band · %B 0.56 · band width 6.7%
- SMA 50 / 200
- 40.70 / 50.65
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.39 / -0.62
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −5.5% | −1.1% | −4.4 pp | — |
| 3 months | −12.7% | −0.5% | −12.3 pp | — |
| 6 months | −26.7% | +4.4% | −31.1 pp | — |
| Year to date | −9.3% | +12.3% | −21.6 pp | — |
| 1 year | −15.3% | +13.5% | −28.9 pp | +18.0% |
| 3 years | +26.2% | +76.4% | −50.2 pp | +28.5% |
| 5 years | −39.4% | +63.7% | −103.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 291.4 m | 359.0 m | 329.4 m | 330.3 m | 350.1 m | 400.6 m | 396.3 m | 408.1 m |
| Cost of revenue | 224.6 m | 256.1 m | 237.0 m | 242.0 m | 265.9 m | 291.3 m | 297.2 m | 301.3 m |
| Gross profit | 66.8 m | 102.9 m | 92.4 m | 88.3 m | 84.2 m | 109.3 m | 99.1 m | 106.8 m |
| SG&A | 65.6 m | 68.0 m | 71.9 m | 67.0 m | 83.3 m | 86.5 m | 90.2 m | 85.5 m |
| Operating income | -7.2 m | 34.8 m | 20.5 m | 21.4 m | 1.1 m | 22.9 m | 9.0 m | 20.4 m |
| Depreciation & amortisation | 7.0 m ≈ | 6.7 m | 6.4 m | 6.0 m ≈ | 12.3 m ≈ | 11.6 m | 14.2 m | 14.4 m ≈ |
| Interest expense | 2.6 m | 2.3 m | 2.0 m | 2.1 m | 7.3 m | 7.1 m | 7.4 m | 7.1 m |
| Pre-tax income | -8.5 m | 31.4 m | 19.7 m | 22.6 m | -5.1 m | 15.9 m | 2.8 m | 15.0 m |
| Income tax | -2.3 m | 10.4 m | 5.4 m | 5.8 m | -900.0 k | 4.0 m | 1.5 m | 4.5 m |
| Net income | -6.2 m | 21.1 m | 14.3 m | 16.7 m | -4.2 m | 12.0 m | 1.3 m | 10.5 m |
| Diluted EPS | -0.27 | 0.92 ≈ | 0.62 | 0.72 | -0.18 | 0.52 ≈ | 0.06 | 0.45 |
| Operating cash flow | 22.5 m ≈ | 36.6 m | 20.5 m | 12.9 m ≈ | -8.1 m ≈ | 36.1 m | 40.7 m | 12.1 m ≈ |
| Capex | 2.6 m ≈ | 4.5 m | 3.9 m | 3.9 m ≈ | 4.2 m ≈ | 28.7 m | 8.1 m | 7.4 m ≈ |
| Dividends paid | 3.0 m ≈ | 3.0 m | 2.9 m | 3.0 m ≈ | 3.0 m ≈ | 3.0 m | 3.0 m | 3.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 61 percentile of its own 28-quarter history (min 21.0, median 40.7, max 180.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.2 bn | 1.2 bn | 1.0 bn | 1.1 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.4 bn |
| Revenue YoY | −1.1% | −0.2% | −12.4% | +6.9% | +16.3% | +5.0% | −2.5% | +8.1% |
| Net income | -60.4 m | 22.3 m | 46.0 m | 15.8 m | -100.0 k | 33.5 m | 4.3 m | 38.8 m |
| Net income YoY | −259.8% | unavailable | +106.3% | −65.7% | −100.6% | unavailable | −87.2% | +802.3% |
| Diluted EPS | -2.64 | 0.98 | 2.01 | 0.69 | 0.00 | 1.47 | 0.19 | 1.68 |
| Diluted EPS YoY | −262.0% | unavailable | +105.1% | −65.7% | −100.0% | unavailable | −87.1% | +784.2% |
| net % | -5.2% | 1.9% | 4.5% | 1.4% | -0.0% | 2.5% | 0.3% | 2.8% |
| Free cash flow | -57.4 m | 89.2 m | 126.1 m | -12.7 m | -114.6 m | -6.3 m | 2.5 m | 20.7 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 72.0 m USD
- Financial debt
- 331.7 m USD
- Net debt
- 259.7 m USD
- Equity
- 681.6 m USD
- Total assets
- 1.4 bn USD
- Debt / equity
- 0.49x
- Current ratio
- 2.49x
- ROE
- 5.9%
- ROA
- 3.2%
- FCF margin
- 1.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.0 bn | 1.1 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 25 Feb 2026verified |
| Cost of revenue | 786.8 m | 846.0 m | 1.0 bn | 1.0 bn | 977.2 m | 1.0 bn | SEC (XBRL)· 25 Feb 2026verified |
| Gross profit | 237.6 m | 249.5 m | 264.1 m | 330.8 m | 327.9 m | 374.2 m | SEC (XBRL)· 25 Feb 2026verified |
| Research & development | 22.1 m | 26.5 m | 31.5 m | 22.0 m | 23.8 m | 26.9 m | SEC (XBRL)· 25 Feb 2026verified |
| SG&A | 166.9 m | 227.1 m | 247.6 m | 276.4 m | 276.1 m | 308.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Operating income | 40.5 m | 19.9 m | 7.5 m | 48.6 m | 23.2 m | 65.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Depreciation & amortisation | 26.9 m | 30.2 m | 27.9 m | 25.6 m | 26.8 m | 36.3 m | SEC (XBRL)· 25 Feb 2026verified |
| EBITDA | 67.4 m ≈ | 50.1 m ≈ | 35.4 m ≈ | 74.2 m ≈ | 50.0 m ≈ | 102.2 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Interest expense | 700.0 k | 1.1 m | 2.5 m | 8.9 m | 10.7 m | 18.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Pre-tax income | 44.5 m | 13.8 m | 4.4 m | 42.8 m | 13.9 m | 53.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Income tax | -1.5 m | -2.1 m | 5.0 m | 9.1 m | 9.8 m | 14.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Net income | 46.0 m | 15.8 m | -100.0 k | 33.5 m | 4.3 m | 38.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Diluted EPS | 2.01 | 0.69 | 0.00 | 1.47 | 0.19 | 1.68 | SEC (XBRL)· 25 Feb 2026verified |
| Weighted average diluted shares | 22.9 m | 22.9 m | 22.8 m | 22.8 m | 22.9 m | 23.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Dividend per share | 0.44 | 0.45 | 0.49 | 0.52 | 0.52 | 0.52 | SEC (XBRL)· 25 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 158.6 m | 134.4 m | 66.0 m | 63.2 m | 90.8 m | 72.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Inventories | 249.7 m | 298.7 m | 393.4 m | 455.6 m | 422.7 m | 466.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Current assets | 565.8 m | 636.0 m | 696.4 m | 719.5 m | 722.8 m | 816.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Property, plant & equipment, net | 172.8 m | 171.7 m | 173.6 m | 187.6 m | 181.9 m | 222.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Goodwill | 38.7 m | 38.6 m | 45.2 m | 46.3 m | 25.0 m | 111.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Intangibles (excl. goodwill) | 31.2 m | 22.7 m | 22.5 m | 16.4 m | 11.2 m | 124.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Total assets | 846.7 m | 905.8 m | 1.0 bn | 1.1 bn | 1.0 bn | 1.4 bn | SEC (XBRL)· 25 Feb 2026verified |
| Accounts payable | 52.7 m | 82.2 m | 107.2 m | 116.9 m | 79.2 m | 93.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Short-term debt | 1.4 m | 2.6 m | 9.4 m | 11.0 m | 13.3 m | 12.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Long-term debt | 400.0 k | 200.0 k | 78.1 m | 72.0 m | 105.0 m | 319.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Current liabilities | 170.3 m | 223.3 m | 274.0 m | 299.0 m | 271.7 m | 328.0 m | SEC (XBRL)· 25 Feb 2026verified |
| Total liabilities | 205.2 m | 254.5 m | 387.5 m | 405.6 m | 406.0 m | 685.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Equity | 641.5 m | 651.3 m | 626.9 m | 653.7 m | 637.6 m | 681.6 m | SEC (XBRL)· 25 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 141.5 m | 7.4 m | -73.9 m | 27.8 m | 23.0 m | 61.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Capex | 15.4 m | 20.1 m | 40.7 m | 34.1 m | 20.5 m | 40.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Free cash flow | 126.1 m ≈ | -12.7 m ≈ | -114.6 m ≈ | -6.3 m ≈ | 2.5 m ≈ | 20.7 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Investing cash flow | -20.9 m | -18.4 m | -53.2 m | -12.9 m | -18.0 m | -287.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Financing cash flow | -10.4 m | -12.1 m | 60.1 m | -18.3 m | 24.4 m | 206.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Dividends paid | 10.0 m | 10.2 m | 11.2 m | 11.8 m | 11.9 m | 11.9 m | SEC (XBRL)· 25 Feb 2026verified |
| Share repurchases | 0 | 0 | 10.1 m | 0 | 0 | — | SEC (XBRL)· 26 Feb 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 39 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40 · (margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 904.9 m USD
Key indicators
Coverage and freshness
Score by group
- Valuation32
- Balance sheet38
- Quality48
- Growth29
- Returns51
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 6.83 – 48.78 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)22.56 – 48.78 (Mid 31.95)WACC 7.8% · starting FCFF 52.1 m USD · terminal value share of EV 78%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 10.1%
- Peers: EV/EBITDA19.44 – 29.16 (Mid 27.04)3 companies used · median multiple 8.7x · quartiles 7.1x – 9.2xAEBI, MTW, PLOW
- Peers: P/E19.65 – 34.72 (Mid 27.61)5 companies used · median multiple 32.6x · quartiles 23.2x – 41.0xAEBI, CAT, CNH, MTW, PLOW
- Dividend discount (DDM)6.83 – 9.19 (Mid 7.84)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 39/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 4.6% | 20 (on a fixed band) | 11% |
| Net margin · Quality | 1.3% | 43 (vs peers) | 7% |
| FCF conversion · Quality | 165.3% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 3.4% | 29 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 2.8x | 33 (on a fixed band) | 11% |
| Interest coverage · Balance sheet | 1.8x | 5 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 2.5x | 100 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 46.4x | 20 (vs peers) | 11% |
| EV/EBITDA · Valuation | 11.4x | 33 (on a fixed band) | 11% |
| FCF yield · Valuation | 3.6% | 45 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 1.3% | 19 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 37.0% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet38/100 · 3/3 factors with a value
- Growth· partial29/100 · 1/2 factors with a value
- Quality48/100 · 3/3 factors with a value
- Returns51/100 · 2/2 factors with a value
- Valuation32/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Astec Industries, Inc. (ASTE). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.4 bn USD in 2025; YoY growth 8.1%; net margin 1.3%; ROE 2.9%; net debt/EBITDA 2.8x.
The estimated value range is 19.54–31.94 USD per share (median of 4 methods, agreement: high); assumptions are illustrative. Against the central value of 27.32 USD, the price of 39.30 USD leaves a potential of -30.5% (value / price − 1) and a margin of safety of -43.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 39/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 165.3%
- Current ratio: 2.5x
- Payout ratio (FCF): 37.0%
What contradicts it
- ROIC: 4.6%
- Revenue CAGR 3Y: 3.4%
- Interest coverage: 1.8x
- P/E (TTM): 46.4x
- Shareholder yield (distributions): 1.3%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y.
Versus the vertical median
Construction Machinery & Equip (SIC 3531) · same industry (4-digit SIC) · compared with 7 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CATCaterpillar Inc | 270.6 bn | 23.2 | 56.1% | 15.2% | +4.3% | +3% / +136% |
| CNHCnh Industrial N.V. | 14.5 bn | 47.0 | 4.0% | 1.7% | −8.8% | +24% / +9% |
| ASTEAstec Industries, Inc. | 904.9 m | 46.4 | 2.9% | 1.3% | +8.1% | −15% / +26% |
| AEBIAebi Schmidt Holding AG | 902.5 m | 41.0 | 3.6% | 1.1% | +40.6% | −2% / unavailable |
| PLOWDouglas Dynamics, Inc | 879.7 m | 13.8 | 22.2% | 8.7% | +15.4% | +18% / +40% |
| MTWThe Manitowoc Company, Inc. | 837.7 m | 32.6 | 3.8% | 1.1% | +2.9% | +106% / +62% |
| CMCOColumbus McKinnon Corporation | 537.7 m | — | -30.8% | -19.6% | +23.9% | +13% / −47% |
| GENCGencor Industries, Inc. | — | — | 6.9% | 13.5% | +2.0% | +31% / +17% |
1- and 3-year price returns: for ASTE from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 23.10 Total return -40% · Per year -40% | 40.86 Total return 5% · Per year 5% | 61.57 Total return 58% · Per year 58% |
| 3 years | 21.94 Total return -41% · Per year -16% | 43.71 Total return 15% · Per year 5% | 72.39 Total return 90% · Per year 24% |
| 5 years | 20.84 Total return -42% · Per year -10% | 46.76 Total return 26% · Per year 5% | 85.12 Total return 126% · Per year 18% |
- Exit P/E± 10.93
- Net margin± 7.65
- Annual revenue growth± 6.34
- Annual dilution± 0.64
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Astec Industries designs and manufactures equipment for road building, asphalt and concrete production and aggregate processing, plus parts and services. In the second quarter of 2026 net sales grew 23.6% to 408.1 million USD and backlog reached 601.1 million USD, yet the company cut its 2026 adjusted EBITDA guidance because of timing of asphalt plant shipments.
SWOT
Strengths
- The company holds a recognized market-leading position in asphalt plants and a large installed equipment base that supports parts and service sales 1.
- Backlog grew strongly in the second quarter of 2026, giving visibility into future production 3.
- Recent acquisitions and expanded production capacity complement the portfolio and support growth 2.
Weaknesses
- Many costs are fixed and cannot be cut quickly when demand falls, which amplifies the effect of market cycles 1.
- Profitability declined in the second quarter of 2026, with lower net income than a year earlier, amid integration and transformation costs 2.
- The company relies on a limited number of suppliers for steel and other materials, which exposes production to disruption 1.
Opportunities
Threats
Risks
- Cyclical demandmedium
Demand for equipment depends on the volume of construction projects, which is cyclical, and downturns can affect revenue and operating results 1.
- Government fundinghigh
If the IIJA expires at the end of fiscal 2026 without reauthorization or full funding, demand for products could decline significantly 1.
- Input costshigh
Higher steel prices and tariffs could raise production costs beyond what the company can pass on to customers 12.
- Currency and international exposuremedium
Exchange rate moves and sanctions or trade policies can affect international sales and margins 1.
- Production disruptionsmedium
Natural disasters, equipment failures or geopolitical conflicts can disrupt factories and distribution 1.
Investment thesis
What would need to be true (bull case)
- Sales growth in the second quarter of 2026 and an expanding order book could support revenue in coming periods 3.
- Recent acquisitions and US infrastructure programs provide a growth base if funding remains available 12.
- Market leadership in asphalt plants and the installed base can generate recurring revenue from parts and services 1.
What would break the thesis
What to watch
- Trend in orders and backlog for Infrastructure SolutionsQ3 2026
- Delivery against the revised 2026 adjusted EBITDA guidance2026
- Reauthorization or funding of the IIJA after it expires2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Astec designs, engineers, manufactures, markets and services equipment used mainly in asphalt and concrete road building, as well as equipment for mining, quarrying, demolition, energy and recycling 1. Its products cover every phase of road building, from quarrying and crushing aggregate to applying the road surface 1. Replacement parts and services are an integral part of the business, and the company also operates the Astec Digital controls and telematics platform 1.
The company has two reportable segments, Infrastructure Solutions and Materials Solutions, while Corporate and Other covers the parent and the captive insurer Astec Insurance 1. It completed the TerraSource acquisition on July 1, 2025 and the CWMF acquisition on January 1, 2026, both extending its equipment and parts portfolio 12.
The strategic transformation program includes a multi-year phased rollout of a standardized ERP system replacing much of the existing core financial systems 12. Its costs are significant and affect period results, so their progress is worth following closely 2.
Market context
Demand follows the volume of road and utility projects, which is cyclical, and government funding plays a central role 1. The IIJA allocated 548 billion USD to infrastructure over five years ending in 2026, and its reauthorization is uncertain, which could affect demand if not fully funded 1. Oil prices, which drive asphalt costs, rose in the first half of 2026 and are expected to stay high in the short term 2.
Trends
- US infrastructure fundingmixed
Demand depends on multi-year government programs, and an extension or reduction of funding could lower road equipment sales 1.
- Rising steel pricesheadwind
Steel prices rose in the first half of 2026 and are expected to remain elevated, which could compress margins if costs cannot be passed on to customers 2.
- Recovering aggregate demandtailwind
Dealer and customer demand for aggregate processing equipment has rebounded, and Materials Solutions orders have grown strongly 3.
- Interest rates and customer financingheadwind
Higher interest rates can reduce demand and make it harder for customers to finance purchases, which could delay orders 1.
Competitive position
The industry is highly competitive and fragmented, with rivalry on product performance, innovation, range, service and price 1. Some competitors have greater financial and development resources, which could lead to lost sales or market share 1.
Competitors include European and American groups in asphalt, concrete, aggregate and wood-processing equipment, some owned by larger groups such as Wirtgen (John Deere) or Caterpillar 1. Competition limits the company's ability to pass cost increases on to customers 2.
- Caterpillar Paving ProductsCAT
Caterpillar division producing paving equipment, listed among the principal competitors in the annual report.
- Wirtgen Group (John Deere)DE
Asphalt equipment group within John Deere, named among the main competitors of the infrastructure segment.
- Alamo Group (Morbark, Diamond Z)ALG
Group that includes wood chipper and forestry equipment brands relevant to the company's forestry line.
- Gencor IndustriesGENC
Manufacturer of asphalt and concrete plants, listed among the direct competitors named in the report.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report03 Nov 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report30 Jul 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report06 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Current report27 Apr 2026Shareholder vote
- Current report20 Apr 2026Departure or appointment of officers · Financial statements and exhibits
- Proxy statement13 Mar 2026
- Annual report25 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Astec Industries, Inc. · 25 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Astec Industries, Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Astec Industries, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.