Astec Industries Inc. (NASDAQ:ASTE) reported fourth-quarter results on Wednesday that exceeded analyst expectations, supported by strong revenue growth, sending shares nearly 6% higher in pre-market trading.
The company posted adjusted earnings per share of $1.06, comfortably above the consensus forecast of $0.80 by $0.26.
Quarterly revenue reached a record $400.6 million, surpassing analyst estimates of $370.74 million and rising 11.6% from $359.0 million in the same quarter last year.
Growth was largely driven by the Materials Solutions segment, where net sales climbed 60.6% year over year to $177.0 million, reflecting both organic expansion and acquisitions.
In contrast, revenue from the Infrastructure Solutions segment declined 10.1% to $223.6 million compared with a strong prior-year period, as demand softened in mobile paving and forestry equipment markets.
“We are pleased to report strong fourth quarter and full year results evidencing our focus on consistency, profitability and growth,” said Chief Executive Officer Jaco van der Merwe. “We are optimistic about 2026 due to progress on our internal initiatives, positive customer sentiment and stability provided by federal infrastructure funding.”
For full-year 2026, Astec guided adjusted EBITDA in a range of $170 million to $190 million, with the midpoint of $180 million reflecting expectations for continued growth supported by both organic performance and acquisitions.
Adjusted EBITDA for full-year 2025 totaled $140.7 million, up 25.8% from $111.8 million in 2024 and at the upper end of the company’s guidance range. Net income increased significantly to $38.8 million from $4.3 million in the prior year.
The company generated operating cash flow of $61.4 million and free cash flow of $20.7 million during the year, while backlog expanded 22.5% to $514.1 million compared with $419.6 million a year earlier.