Astec Industries stock rises following record Q4 results

Investing.com -- Shares of Astec Industries (NASDAQ:ASTE) climbed 16% today after the company reported a record-breaking fourth quarter, surpassing analyst expectations with both higher earnings per share (EPS) and revenue. The manufacturer announced its financial results for the fourth quarter and full year ended December 31, 2024, which included a notable increase in net income and sales.

Astec Industries posted Q4 EPS of $1.19, which was $0.47 better than the analyst estimate of $0.72. The company’s revenue for the quarter reached $359 million, exceeding the consensus estimate of $356.25 million and marking a 6.5% increase compared to the same quarter last year. Despite a year-to-date net sales decline of 2.5%, the company’s fourth-quarter performance demonstrated significant gains in income from operations, which soared 84.1% YoY.

The CEO, Jaco van der Merwe, expressed satisfaction with the company’s achievements, particularly highlighting the quarterly records for net sales, adjusted EBITDA, and adjusted EPS. He attributed these results to the company’s focus on aftermarket services, operational excellence, and the OneASTEC procurement team. Chief Financial Officer Brian Harris pointed out the company’s effective working capital management, which resulted in strong operating cash flows and free cash flow for the quarter.

Astec’s Infrastructure Solutions segment reported an 11.9% increase in net sales due to strong demand for asphalt and concrete plants. However, the Materials Solutions segment saw a 4.1% decrease in net sales, primarily due to finance capacity constraints affecting contractors and dealers.

In terms of liquidity, Astec ended the quarter with $228.1 million, bolstered by $88.3 million in cash and cash equivalents and $139.8 million available under its revolving credit facility. The company also highlighted its disciplined capital allocation, including $4.5 million in capital expenditures and a dividend payment of $0.13 per share.

Looking ahead, the company’s management expressed cautious optimism, with customers reporting strong quarters and expectations for continued progress in 2025. Astec Industries anticipates adjusted EBITDA to be in the range of $105 million to $125 million for the full year 2025.

Today’s stock movement reflects investor confidence in Astec’s robust fourth-quarter performance and positive outlook for the year ahead.

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