Astec Lowers 2026 Adjusted EBITDA Outlook

The Tip Desk · August 5, 2026 · 3 min read

The equipment maker cut its full-year adjusted EBITDA range to $160 million to $175 million after asphalt-plant shipment delays, even as second-quarter sales reached $408.1 million.

Astec Industries (ASTE), a manufacturer of asphalt, concrete and aggregate-processing equipment, lowered its full-year 2026 adjusted EBITDA outlook to $160 million to $175 million from $170 million to $190 million, citing macro-driven events that are affecting the timing of asphalt-plant shipments.

Chief Executive Officer Jaco van der Merwe said Infrastructure Solutions order patterns remained consistent with the prior year, but shipment timing for asphalt plants had been disrupted. The company had held the higher range after the first quarter.

Net sales in the second quarter ended June 30, 2026, were $408.1 million, up 23.6% from a year earlier, after a 20.3% year-over-year increase in the first quarter. GAAP net income attributable to the controlling interest was $10.5 million, or $0.45 a share, down 37.1% from a year earlier. Adjusted net income was $21.8 million, or $0.94 a share. Adjusted EBITDA was $42.6 million, up 26.0% from a year earlier, after a 13.9% year-over-year decline in the first quarter.

Materials Solutions carried the sales mix. Net sales in that segment were $179.8 million, up 43.0% from a year earlier, after a 70.6% year-over-year increase in the first quarter. The rise reflected an anticipated resurgence of dealer and customer demand for aggregate crushing, screening and conveying equipment. Segment operating adjusted EBITDA was $22.1 million, up 54.5%, and the segment margin was 12.3%.

Infrastructure Solutions net sales were $228.3 million, up 11.6% from a year earlier, after a 0.4% year-over-year increase in the first quarter. The second-quarter lift was largely due to demand for concrete, mobile paving and forestry equipment and to inorganic contributions. Segment operating adjusted EBITDA was $32.9 million, up 2.2% from a year earlier, after an 18.9% year-over-year decline in the first quarter. Segment margin was 14.4%.

Backlog was $601.1 million, up 57.9% from a year earlier, after a 36.4% year-over-year increase in the first quarter. Materials Solutions backlog was $312.5 million, up 150.6% from a year earlier. Infrastructure Solutions backlog was $288.6 million, up 12.7%.

The two segments moved in opposite directions on implied orders in the quarter. Materials Solutions implied orders rose sequentially by $79.7 million, or 45.3%, to $255.7 million, and the book-to-bill ratio stood at 142.2%. Infrastructure Solutions implied orders declined sequentially by $51.1 million, or 20.0%, to $204.3 million, and the book-to-bill ratio was 89.5%. Both Infrastructure Solutions figures were primarily due to macro-driven conservatism by certain asphalt-plant customers.

GAAP income from operations was $20.4 million, down 4.7% from a year earlier, after a 56.1% year-over-year decline in the first quarter. Operating margin was 5.0%. Adjusted income from operations was $35.2 million, up 31.3% from a year earlier, after an 18.6% year-over-year decline in the first quarter. Adjusted operating margin was 8.6%. Amortization of acquired intangible assets added back to adjusted results was $7.8 million in the quarter, versus $0.6 million a year earlier.

Quarterly operating cash flow was $12.1 million and free cash flow was $4.7 million. Total liquidity was $265.8 million, consisting of $75.7 million of cash and cash equivalents available for operating purposes and $190.1 million available under the revolving credit facility. Capital expenditures were $7.4 million. The company paid a dividend of $0.13 a share.

Van der Merwe said Materials Solutions orders continued to remain strong, while dealers reported healthy inventory levels and rental conversions.