ASTEC INDUSTRIES INC
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
ASTE$35.71+1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0000792987-26-000044
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0000792987-26-000055
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 100 previous paragraphs and 100 current paragraphs.
39 unchanged; 30 reworded; 30 added; 30 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (30)
Current report
•Net sales were $352.4 million, an increase of 0.7%
Current report
•Gross profit was $82.3 million, a decrease of 2.3%
Current report
•Loss from operations was $3.3 million compared to income from operations of $1.1 million
Current report
•Net loss attributable to Astec was $12.2 million compared to net loss of $4.2 million
Current report
•Diluted loss per share was $0.53 compared to a diluted loss per share of $0.18
Current report
•Backlog was $670.5 million, an increase of 49.2%
Current report
Domestic sales for the third quarter of 2026 were $282.7 million, or 80.2% of consolidated net sales, compared to $280.4 million, or 80.1% of consolidated net sales, for the third quarter of 2025, an increase of $2.3 million, or 0.8%. Domestic sales increased primarily due to higher equipment sales of $3.2 million partially offset by lower parts and service revenues of $1.1 million. Included in the net increase is $8.6 million of incremental net sales from the acquired CWMF business.
Current report
Domestic sales for the first nine months of 2026 were $934.3 million, or 80.8% of consolidated net sales, compared to $816.2 million, or 80.8% of consolidated net sales, for the first nine months of 2025, an increase of $118.1 million, or 14.5%. Domestic sales increased primarily due to higher equipment sales of $72.7 million and parts and service revenues of $45.6 million. Included in the net increase is $87.6 million of incremental net sales from acquired businesses.
Current report
International sales for the third quarter of 2026 were $69.7 million, or 19.8% of consolidated net sales, compared to $69.7 million, or 19.9% of consolidated net sales, for the third quarter of 2025. Increases in international parts and service revenues were offset by lower equipment sales.
Current report
Gross profit for the third quarter of 2026 was $82.3 million, or 23.4% of net sales, as compared to $84.2 million, or 24.1% of net sales, for the third quarter of 2025, a decrease of $1.9 million, or 2.3%. The decrease in gross profit was primarily driven by the impact of inflation on materials, labor and overhead of $8.6 million. This decrease was partially offset by amortization of acquisition-related inventory fair value step-up in the prior year of $4.3 million and the impact of favorable pricing partially offset by net unfavorable volume and mix of $2.8 million.
Current report
Gross profit for the first nine months of 2026 was $288.2 million, or 24.9% of net sales, as compared to $264.9 million, or 26.2% of net sales, for the first nine months of 2025, an increase of $23.3 million, or 8.8%. The increase in gross profit was primarily
Current report
driven by (i) the impact of net favorable volume and mix coupled with favorable pricing of $69.3 million, (ii) lower warranty program costs of $3.6 million and (iii) lower amortization of acquisition-related inventory fair value step-up of $2.8 million. These increases were partially offset by higher manufacturing and other period costs, inclusive of freight, duties and tariffs, of $29.2 million and the impact of inflation on materials, labor and overhead of $23.2 million.
Current report
Selling, general and administrative expenses were $84.2 million or 23.9% of net sales, for the third quarter of 2026, compared to $83.3 million, or 23.8% of net sales, for the third quarter of 2025, an increase of $0.9 million, or 1.1%, primarily due to increased intangible asset amortization partially offset by lower acquisition and integration expenses.
Current report
Interest expense of $7.2 million was incurred in the third quarter of 2026, compared to $7.3 million for the third quarter of 2025, a decrease of $0.1 million, or 1.4%.
Current report
Sales in this segment were $189.0 million for the third quarter of 2026 compared to $193.2 million for the same period in 2025, a decrease of $4.2 million, or 2.2%. The decrease was primarily driven by net unfavorable volume and mix partially offset by favorable pricing that generated decreases in equipment sales of $3.2 million and parts and service revenues of $1.6 million. Included in the net decrease is $8.6 million of incremental net sales from the acquired CWMF business.
Current report
Domestic sales for the Infrastructure Solutions segment decreased $3.5 million, or 1.9%, for the third quarter of 2026 compared to the same period in 2025 primarily due to lower equipment sales of $2.1 million and parts and service revenues of $2.0 million. Included in the net decrease is $8.6 million of incremental net sales from the acquired CWMF business.
Current report
International sales for the Infrastructure Solutions segment decreased $0.7 million, or 7.3%, for the third quarter of 2026 compared to the same period in 2025 primarily due to lower equipment sales of $1.1 million.
Current report
Sales in this segment were $163.4 million for the third quarter of 2026 compared to $156.9 million for the same period in 2025, an increase of $6.5 million, or 4.1%. The increase was primarily driven by favorable pricing coupled with net favorable volume and mix that generated increases in equipment sales of $5.2 million and parts and service revenues of $2.0 million.
Current report
International sales for the Materials Solutions segment increased $0.7 million, or 1.2%, for the third quarter of 2026 compared to the same period in 2025 primarily due to higher parts and service revenues of $1.1 million.
Current report
Segment Net Sales– Nine Months Ended:
Current report
Sales in this segment were $654.3 million for the first nine months of 2026 compared to $633.8 million for the same period in 2025, an increase of $20.5 million, or 3.2%. The increase was primarily driven by favorable pricing coupled with net favorable volume and mix that generated increases in equipment sales of $17.9 million and parts and service revenues of $2.8 million. Included in the net increase is $34.5 million of incremental net sales from the acquired CWMF business.
Current report
Domestic sales for the Infrastructure Solutions segment increased $24.9 million, or 4.2%, for the first nine months of 2026 compared to the same period in 2025 primarily due to higher equipment sales of $21.2 million and parts and service revenues of $3.8 million. Included in the net increase is $34.5 million of incremental net sales from the acquired CWMF business.
Current report
International sales for the Infrastructure Solutions segment decreased $4.4 million, or 10.5%, for the first nine months of 2026 compared to the same period in 2025 primarily due to lower equipment sales of $3.3 million and parts and service revenues of $1.0 million.
Current report
Sales in this segment were $502.5 million for the first nine months of 2026 compared to $376.0 million for the same period in 2025, an increase of $126.5 million, or 33.6%. The increase was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in equipment sales of $70.0 million and parts and service revenues of $56.6 million. Included in the net increase is $72.2 million of incremental net sales from the acquired TerraSource business.
Current report
Segment Operating Adjusted EBITDA for the Infrastructure Solutions segment was $15.3 million for the third quarter of 2026 compared to $23.9 million for the same period in 2025, a decrease of $8.6 million, or 36.0%. The decrease in Segment Operating Adjusted EBITDA was primarily driven by (i) the impact of inflation on materials, labor and overhead of $5.1 million, (ii) increased selling, general and administrative expenses of $1.3 million and (iii) higher quality-related expenses of $1.3 million.
Current report
Segment Operating Adjusted EBITDA for the Materials Solutions segment was $13.9 million for the third quarter of 2026 compared to $15.4 million for the same period in 2025, a decrease of $1.5 million, or 9.7%. The decrease in Segment Operating Adjusted EBITDA was primarily driven by the impact of inflation on materials, labor and overhead of $3.5 million and increased selling, general and administrative expenses of $1.9 million. These decreases were partially offset by the net sales impact of favorable pricing and unfavorable volume and mix that generated higher gross profit of $3.2 million.
Current report
Segment Operating Adjusted EBITDA– Nine Months Ended:
Current report
Segment Operating Adjusted EBITDA for the Infrastructure Solutions segment was $83.0 million for the first nine months of 2026 compared to $99.0 million for the same period in 2025, a decrease of $16.0 million, or 16.2%. The decrease in Segment Operating Adjusted EBITDA was primarily driven by (i) the impact of inflation on materials, labor and overhead of $15.5 million, (ii) higher manufacturing and other period costs, inclusive of freight, duties and tariffs, of $13.6 million and (iii) increased selling, general and administrative expenses of $3.3 million. These decreases were partially offset by the net sales impact of favorable pricing and unfavorable volume and mix that generated higher gross profit of $12.7 million and lower quality-related expenses of $3.3 million.
Current report
Segment Operating Adjusted EBITDA for the Materials Solutions segment was $44.9 million for the first nine months of 2026 compared to $34.9 million for the same period in 2025, an increase of $10.0 million, or 28.7%. The increase in Segment
Current report
Operating Adjusted EBITDA was primarily driven by the sales impact of net favorable volume and mix coupled with favorable pricing that generated higher gross profit of $56.5 million. This increase was partially offset by (i) increased selling, general and administrative expenses of $23.5 million, (ii) higher manufacturing and other period costs, inclusive of freight, duties and tariffs, of $16.9 million and (iii) the impact of inflation on materials, labor and overhead of $7.7 million.
Removed paragraphs (30)
Previous report
•Net sales were $408.1 million, an increase of 23.6%
Previous report
•Gross profit was $106.8 million, an increase of 21.0%
Previous report
•Income from operations was $20.4 million, a decrease of 4.7%
Previous report
•Net income attributable to Astec was $10.5 million, a decrease of 37.1%
Previous report
•Diluted income per share was $0.45, a decrease of 37.5%
Previous report
•Backlog was $601.1 million, an increase of 57.9%
Previous report
Domestic sales for the second quarter of 2026 were $332.6 million, or 81.5% of consolidated net sales, compared to $262.0 million, or 79.3% of consolidated net sales, for the second quarter of 2025, an increase of $70.6 million, or 26.9%. Domestic sales increased primarily due to higher equipment sales of $44.3 million and parts and service revenues of $26.1 million. Included in the net increase is $37.0 million of incremental net sales from acquired businesses.
Previous report
Domestic sales for the first six months of 2026 were $651.6 million, or 81.0% of consolidated net sales, compared to $535.8 million, or 81.2% of consolidated net sales, for the first six months of 2025, an increase of $115.8 million, or 21.6%. Domestic sales increased primarily due to higher equipment sales of $69.5 million and parts and service revenues of $46.7 million. Included in the net increase is $79.0 million of incremental net sales from acquired businesses.
Previous report
International sales for the second quarter of 2026 were $75.5 million, or 18.5% of consolidated net sales, compared to $68.3 million, or 20.7% of consolidated net sales, for the second quarter of 2025, an increase of $7.2 million, or 10.5%. International sales increased primarily due to higher parts and service revenues of $8.9 million partially offset by lower equipment sales of $1.7 million. Included in the net increase is $11.6 million of incremental net sales from acquired businesses.
Previous report
Gross profit for the second quarter of 2026 was $106.8 million, or 26.2% of net sales, as compared to $88.3 million, or 26.7% of net sales, for the second quarter of 2025, an increase of $18.5 million, or 21.0%. The increase in gross profit was primarily driven by the impact of net favorable volume and mix coupled with favorable pricing of $41.0 million and lower warranty program costs of $1.0 million. This increase was partially offset by (i) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $8.6 million, (ii) the impact of inflation on materials, labor and overhead of $8.4 million and (iii) net unfavorable inventory adjustments of $6.4 million.
Previous report
Gross profit for the first six months of 2026 was $205.9 million, or 25.6% of net sales, as compared to $180.7 million, or 27.4% of net sales, for the first six months of 2025, an increase of $25.2 million, or 13.9%. The increase in gross profit was primarily driven by the impact of net favorable volume and mix coupled with favorable pricing of $66.4 million and lower warranty program costs of $4.2 million. This increase was partially offset by (i) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $24.8 million, (ii) the impact of inflation on materials, labor and overhead of $14.6 million and (iii) net unfavorable inventory adjustments of $4.8 million.
Previous report
Selling, general and administrative expenses were $85.5 million or 21.0% of net sales, for the second quarter of 2026, compared to $67.0 million, or 20.3% of net sales, for the second quarter of 2025, an increase of $18.5 million, or 27.6%, primarily due to (i) increased intangible asset amortization expense of $7.2 million, (ii) increased personnel-related costs of $5.3 million, (iii) increased technology support costs of $1.8 million, (iv) increased costs related to our strategic transformation program of $1.2 million, (v) increased professional service costs of $1.1 million and (vi) increased dealer commissions of $0.9 million.
Previous report
Sales in this segment were $228.3 million for the second quarter of 2026 compared to $204.6 million for the same period in 2025, an increase of $23.7 million, or 11.6%. The increase was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in equipment sales of $20.6 million and parts and service revenues of $2.9 million. Included in the net increase is $8.0 million of incremental net sales from the acquired CWMF business.
Previous report
Domestic sales for the Infrastructure Solutions segment increased $29.6 million, or 15.9%, for the second quarter of 2026 compared to the same period in 2025 primarily due to higher equipment sales of $25.9 million and parts and service revenues of $3.5 million. Included in the net increase is $8.0 million of incremental net sales from the acquired CWMF business.
Previous report
Sales in this segment were $179.8 million for the second quarter of 2026 compared to $125.7 million for the same period in 2025, an increase of $54.1 million, or 43.0%. The increase was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in parts and service revenues of $32.1 million and equipment sales of $22.0 million. Included in the net increase is $40.6 million of incremental net sales from the acquired TerraSource business.
Previous report
Domestic sales for the Materials Solutions segment increased by $41.0 million, or 54.3%, for the second quarter of 2026 compared to the same period in 2025, primarily due to higher parts and service revenues of $22.6 million and equipment sales of $18.4 million. Included in the net increase is $29.0 million of incremental net sales from the acquired TerraSource business.
Previous report
International sales for the Materials Solutions segment increased $13.1 million, or 26.1%, for the second quarter of 2026 compared to the same period in 2025 primarily due to higher parts and service revenues of $9.5 million and equipment sales of $3.6 million. Included in the net increase is $11.6 million of incremental net sales from the acquired TerraSource business.
Previous report
Segment Net Sales– Six Months Ended:
Previous report
Sales in this segment were $465.3 million for the first six months of 2026 compared to $440.6 million for the same period in 2025, an increase of $24.7 million, or 5.6%. The increase was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in equipment sales of $21.1 million and parts and service revenues of $4.4 million. Included in the net increase is $25.9 million of incremental net sales from the acquired CWMF business.
Previous report
Domestic sales for the Infrastructure Solutions segment increased $28.4 million, or 7.0%, for the first six months of 2026 compared to the same period in 2025 primarily due to higher equipment sales of $23.3 million and parts and service revenues of $5.8 million. Included in the net increase is $25.9 million of incremental net sales from the acquired CWMF business.
Previous report
International sales for the Infrastructure Solutions segment decreased $3.7 million, or 11.4%, for the first six months of 2026 compared to the same period in 2025 primarily due to lower equipment sales of $2.2 million and parts and service revenues of $1.4 million.
Previous report
Sales in this segment were $339.1 million for the first six months of 2026 compared to $219.1 million for the same period in 2025, an increase of $120.0 million, or 54.8%. The increase was primarily driven by net favorable volume and mix coupled with
Previous report
favorable pricing that generated increases in equipment sales of $64.8 million and parts and service revenues of $54.6 million. Included in the net increase is $72.2 million of incremental net sales from the acquired TerraSource business.
Previous report
Segment Operating Adjusted EBITDA for the Infrastructure Solutions segment was $32.9 million for the second quarter of 2026 compared to $32.2 million for the same period in 2025, an increase of $0.7 million, or 2.2%. The increase in Segment Operating Adjusted EBITDA was primarily driven by the sales impact of net favorable pricing, volume and mix that generated higher gross profit of $10.3 million and lower quality-related expenses of $2.8 million. These increases were partially offset by (i) the impact of inflation on materials, labor and overhead of $5.9 million, (ii) unfavorable inventory adjustments of $5.4 million and (iii) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $1.3 million.
Previous report
Segment Operating Adjusted EBITDA for the Materials Solutions segment was $22.1 million for the second quarter of 2026 compared to $14.3 million for the same period in 2025, an increase of $7.8 million, or 54.5%. The increase in Segment Operating Adjusted EBITDA was primarily driven by the sales impact of net favorable volume and mix coupled with favorable pricing that generated higher gross profit of $30.7 million. These increases were partially offset by (i) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $7.0 million, (ii) higher personnel-related costs of $6.2 million, (iii) the impact of inflation on materials, labor and overhead of $2.5 million, (iv) net foreign currency transaction gains of $2.1 million in the prior year, (v) net unfavorable inventory adjustments of $1.0 million, (vi) increased dealer commissions of $0.9 million and (vii) higher quality-related expenses of $0.8 million.
Previous report
Segment Operating Adjusted EBITDA– Six Months Ended:
Previous report
Segment Operating Adjusted EBITDA for the Infrastructure Solutions segment was $67.7 million for the first six months of 2026 compared to $75.1 million for the same period in 2025, a decrease of $7.4 million, or 9.9%. The decrease in Segment Operating Adjusted EBITDA was primarily driven by (i) the impact of inflation on materials, labor and overhead of $10.4 million, (ii) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $8.0 million, (iii) net unfavorable inventory adjustments of $4.7 million and (iv) higher exhibit and promotional costs of $1.9 million. These decreases were partially offset by the sales impact of net favorable pricing, volume and mix of $13.1 million and lower quality-related expenses of $4.6 million.
Previous report
Segment Operating Adjusted EBITDA for the Materials Solutions segment was $31.0 million for the first six months of 2026 compared to $19.5 million for the same period in 2025, an increase of $11.5 million, or 59.0%. The increase in Segment Operating Adjusted EBITDA was primarily driven by the sales impact of net favorable volume and mix coupled with favorable pricing that generated higher gross profit of $53.3 million. These increases were partially offset by (i) manufacturing inefficiencies, inclusive of freight, duties and tariffs, of $16.1 million, (ii) higher personnel-related costs of $12.7 million, (iii) the impact of inflation on materials, labor and overhead of $4.2 million, (iv) increased dealer commissions of $1.7 million, (v) net foreign currency transaction gains of $1.9 million in the prior year and (vi) net unfavorable impact of the exhibit and promotion expense of $1.4 million.
Previous report
Net cash provided by (used in) financing activities
Reworded paragraphs (30)
Previous wording
CWMF Acquisition –On January 1, 2026, we completed our acquisition of CWMF, LLC ("CWMF"), a manufacturer of portable and stationary asphalt plant equipment and parts. The acquisition increases production capacity in our Infrastructure Solutions segment.
Current wording
CWMF Acquisition –On January 1, 2026, we completed our acquisition of CWMF, a manufacturer of portable and stationary asphalt plant equipment and parts. The acquisition increases production capacity in our Infrastructure Solutions segment.
Previous wording
Strategic Transformation Program –Our strategic transformation program includes the ongoing multi-year phased implementation of a standardized ERP system, which is replacing much of our existing disparate core financial systems. To date, we have launched the human capital resources module worldwide and converted the operations of three manufacturing sites along with Corporate. We expect the project to conclude in 2028 or 2029 with total approximate implementation costs anticipated to range from $180 to $200 million. Through the second quarter of 2026, we have incurred total implementation costs of approximately $158 million.
Current wording
Strategic Transformation Program –Our strategic transformation program includes the ongoing multi-year phased implementation of a standardized ERP system, which is replacing much of our existing disparate core financial systems. To date, we have launched the human capital resources module worldwide and converted the operations of three manufacturing sites along with Corporate. We expect the project to conclude in 2028 or 2029 with total approximate implementation costs anticipated to range from $180 to $200 million. Through the third quarter of 2026, we have incurred total implementation costs of approximately $161 million.
Previous wording
See Note 11, Strategic Transformation, Restructuring Charges and Other Operating Gains, net of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional discussion of the costs related to these strategic initiatives.
Current wording
See Note 11, Strategic Transformation, Restructuring and Other Operating Charges, net of the Notes to Unaudited Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional discussion of the costs related to these strategic initiatives.
Previous wording
Steel is a major component of our equipment. Increased steel demand in certain markets and elevated freight and energy costs have driven increased steel prices in the first half of 2026. We anticipate that steel prices will remain elevated during the remainder of 2026.
Current wording
Steel is a major component of our equipment. Increased steel demand in certain markets and elevated freight and energy costs have driven increased steel prices during 2026. We anticipate that steel prices will remain elevated during the remainder of 2026 and most of 2027.
Previous wording
Additionally, significant portions of our revenues from the Infrastructure Solutions segment relate to the sale of equipment involved in the production, handling, recycling or application of asphalt mix. Liquid asphalt is a by-product of oil refining, and changes in the price of oil impact the cost of asphalt, which is in turn likely to alter demand for asphalt and therefore affect demand for certain of our products. Oil prices have routinely fluctuated in recent years and have experienced a significant rise in the first half of 2026 due to the conflict in the Middle East. We anticipate that these high prices will persist in the short term.
Current wording
Additionally, significant portions of our revenues from the Infrastructure Solutions segment relate to the sale of equipment involved in the production, handling, recycling or application of asphalt mix. Liquid asphalt is a by-product of oil refining, and changes in the price of oil impact the cost of asphalt, which is in turn likely to alter demand for asphalt and therefore affect demand for certain of our products. Oil prices have routinely fluctuated in recent years and have experienced a significant rise in 2026 due to the conflict in the Middle East. We anticipate that these high prices will persist in the short term.
Previous wording
Net sales for the second quarter of 2026 were $408.1 million compared to $330.3 million for the second quarter of 2025, an increase of $77.8 million, or 23.6%. The increase in net sales was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in equipment sales of $42.6 million and parts and service revenues of $35.0 million. Included in the net increase is $48.6 million of incremental net sales from acquired businesses. Sales reported by our foreign subsidiaries in U.S. dollars for the second quarter of 2026 would have been $4.0 million lower had second quarter 2026 foreign exchange rates been the same as second quarter 2025 rates.
Current wording
Net sales for the third quarter of 2026 were $352.4 million compared to $350.1 million for the third quarter of 2025, an increase of $2.3 million, or 0.7%. The increase in net sales was primarily driven by favorable pricing partially offset by net unfavorable volume and mix that generated increases in equipment sales of $2.0 million. Included in the net increase is $8.6 million of incremental net sales from the acquired CWMF business. Sales reported by our foreign subsidiaries in U.S. dollars for the third quarter of 2026 would have been $3.3 million lower had third quarter 2026 foreign exchange rates been the same as third quarter 2025 rates.
Previous wording
Net sales for the first six months of 2026 were $804.4 million compared to $659.7 million for the first six months of 2025, an increase of $144.7 million, or 21.9%. The increase in net sales was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in equipment sales of $85.9 million and parts and service revenues of $59.0 million. Included in the net increase is $98.1 million of incremental net sales from acquired businesses. Sales reported by our foreign subsidiaries in U.S. dollars for the first six months of 2026 would have been $8.5 million lower had the first six months of 2026 foreign exchange rates been the same as the first six months of 2025 rates.
Current wording
Net sales for the first nine months of 2026 were $1,156.8 million compared to $1,009.8 million for the first nine months of 2025, an increase of $147.0 million, or 14.6%. The increase in net sales was primarily driven by net favorable volume and mix coupled with favorable pricing that generated increases in equipment sales of $87.9 million and parts and service revenues of $59.4 million. Included in the net increase is $106.7 million of incremental net sales from acquired businesses. Sales reported by our foreign subsidiaries in U.S. dollars for the first nine months of 2026 would have been $11.8 million lower had the first nine months of 2026 foreign exchange rates been the same as the first nine months of 2025 rates.
Previous wording
International sales for the first six months of 2026 were $152.8 million, or 19.0% of consolidated net sales, compared to $123.9 million, or 18.8% of consolidated net sales, for the first six months of 2025, an increase of $28.9 million, or 23.3%. International sales increased primarily due to higher equipment sales of $16.4 million and parts and service revenues of $12.3 million. Included in the net increase is $19.1 million of incremental net sales from acquired businesses.
Current wording
International sales for the first nine months of 2026 were $222.5 million, or 19.2% of consolidated net sales, compared to $193.6 million, or 19.2% of consolidated net sales, for the first nine months of 2025, an increase of $28.9 million, or 14.9%. International sales increased primarily due to higher equipment sales of $15.2 million and parts and service revenues of $13.8 million. Included in the net increase is $19.1 million of incremental net sales from the acquired TerraSource business.
Previous wording
Selling, general and administrative expenses were $175.7 million, or 21.8% of net sales, for the first six months of 2026, compared to $138.9 million, or 21.1% of net sales, for the first six months of 2025, an increase of $36.8 million, or 26.5%, primarily due to (i) increased intangible asset amortization expense of $14.4 million, (ii) increased personnel-related costs of $13.1 million, (iii) increased exhibit and promotional costs of $3.6 million primarily due to the ConExpo industry trade show held once every three years, (iv) increased technology support costs of $1.8 million and (v) increased dealer commissions of $1.7 million. These increases were partially offset by lower costs related to our strategic transformation program of $1.9 million.
Current wording
Selling, general and administrative expenses were $259.9 million, or 22.5% of net sales, for the first nine months of 2026, compared to $222.2 million, or 22.0% of net sales, for the first nine months of 2025, an increase of $37.7 million, or 17.0%, primarily due to increases in intangible asset amortization, personnel-related costs and exhibit and promotional costs primarily due to our participation at the ConExpo industry trade show held once every three years. These increases were partially offset by lower acquisition and integration expenses and costs related to our strategic transformation program.
Previous wording
Interest expense of $7.1 million and $14.5 million was incurred in the three and six months ended June 30, 2026, respectively, as compared to $2.1 million and $4.1 million in the three and six months ended June 30, 2025, respectively, primarily related to higher average outstanding borrowings coupled with higher interest rates on the 2025 Credit Facility as compared to our previous credit facility.
Current wording
Interest expense of $21.7 million was incurred in the first nine months of 2026, compared to $11.4 million in the first nine months of 2025, an increase of $10.3 million, or 90.4%, primarily due to higher average outstanding borrowings coupled with higher interest rates on the 2025 Credit Facility as compared to our previous credit facility.
Previous wording
Our income tax expense for the second quarter of 2026 was $4.5 million compared to $5.8 million for the second quarter of 2025. Our effective income tax rate was 30.0% for the second quarter of 2026 compared to 25.7% for the second quarter of 2025. The income tax expense for the three months ended June 30, 2026 was lower compared to the same period in 2025 primarily due to lower pretax book income and changes in the relative weighting of jurisdictional income and loss.
Current wording
Our income tax expense for the third quarter of 2026 was $2.7 million compared to a benefit of $0.9 million for the third quarter of 2025. Our effective income tax rate was (28.1)% for the third quarter of 2026 compared to 17.6% for the third quarter of 2025. The income tax expense for the three months ended September 30, 2026 was higher compared to the same period in 2025 primarily due to increased valuation allowances in certain foreign jurisdictions partially offset by lower pretax book income.
Previous wording
Our income tax expense for the first six months of 2026 was $6.0 million compared to $11.2 million for the first six months of 2025. Our effective tax rate was 33.7% for the first six months of 2026 compared to 26.5% for the first six months of 2025. The income tax expense for the six months ended June 30, 2026 was lower compared to the same period in 2025 primarily due to lower pretax book income and changes in the relative weighting of jurisdictional income and loss.
Current wording
Our income tax expense for the first nine months of 2026 was $8.7 million compared to $10.3 million for the first nine months of 2025. Our effective tax rate was 106.1% for the first nine months of 2026 compared to 27.7% for the first nine months of 2025. The income tax expense for the nine months ended September 30, 2026 was lower compared to the same period in 2025 primarily due to lower pretax book income partially offset by increased valuation allowances in certain foreign jurisdictions.
Previous wording
The backlog of orders as of June 30, 2026 was $601.1 million compared to $380.8 million as of June 30, 2025, an increase of $220.3 million, or 57.9%. The increases in backlog are driven by organic growth due to increased demand in the aggregates business, partially attributable to large data center projects, and inorganic contributions. Uncertainty driven by macroeconomic factors, such as changing interest rates, global tariff policies and geopolitical conflicts, as well as seasonality, have historically had an impact on our backlog.
Current wording
The backlog of orders as of September 30, 2026 was $670.5 million compared to $449.5 million as of September 30, 2025, an increase of $221.0 million, or 49.2%. The increases in backlog are driven by organic growth due to increased demand in our asphalt and aggregates businesses. Uncertainty driven by macroeconomic factors, such as changing interest rates, global tariff policies and geopolitical conflicts, as well as seasonality, has historically had an impact on our backlog.
Previous wording
International sales for the Infrastructure Solutions segment decreased $5.9 million, or 32.6%, for the second quarter of 2026 compared to the same period in 2025 primarily due to lower equipment sales of $5.3 million.
Current wording
Domestic sales for the Materials Solutions segment increased by $5.8 million, or 6.0%, for the third quarter of 2026 compared to the same period in 2025, primarily due to higher equipment sales of $5.3 million and parts and service revenues of $0.9 million.
Previous wording
Domestic sales for the Materials Solutions segment increased by $87.4 million, or 68.5%, for the first six months of 2026 compared to the same period in 2025, primarily due to higher equipment sales of $46.2 million and parts and service revenues of $40.9 million. Included in the net increase is $53.1 million of incremental net sales from the acquired TerraSource business.
Current wording
Domestic sales for the Materials Solutions segment increased by $93.2 million, or 41.5%, for the first nine months of 2026 compared to the same period in 2025, primarily due to higher equipment sales of $51.5 million and parts and service revenues of $41.8 million. Included in the net increase is $53.1 million of incremental net sales from the acquired TerraSource business.
Previous wording
International sales for the Materials Solutions segment increased $32.6 million, or 35.6%, for the first six months of 2026 compared to the same period in 2025 primarily due to higher equipment sales of $18.6 million and parts and service revenues of $13.7 million. Included in the net increase is $19.1 million of incremental net sales from the acquired TerraSource business.
Current wording
International sales for the Materials Solutions segment increased $33.3 million, or 22.0%, for the first nine months of 2026 compared to the same period in 2025 primarily due to higher equipment sales of $18.5 million and parts and service revenues of $14.8 million. Included in the net increase is $19.1 million of incremental net sales from the acquired TerraSource business.
Previous wording
Corporate and Other operations, which are not an operating segment or included in one of the other reportable segments, had net expenses of $12.4 million for the second quarter of 2026 compared to $12.7 million for the same period in 2025, a decrease of $0.3 million, or 2.4%.
Current wording
Corporate and Other operations, which are not an operating segment or included in one of the other reportable segments, had net expenses of $10.3 million for the third quarter of 2026 compared to $12.2 million for the same period in 2025, a decrease of $1.9 million, or 15.6%.
Previous wording
Corporate and Other operations had net expenses of $25.8 million for the first six months of 2026 compared to $25.6 million for the first six months of 2025, an increase of $0.2 million, or 0.8%.
Current wording
Corporate and Other operations had net expenses of $36.1 million for the first nine months of 2026 compared to $37.8 million for the first nine months of 2025, a decrease of $1.7 million, or 4.5%.
Previous wording
Our primary sources of liquidity and capital resources are cash and cash equivalents on hand, borrowing capacity under our 2025 Credit Facilities and cash flows from operations. As of June 30, 2026, our 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 for additional borrowings under the 2025 Revolving Credit Facility, to the extent our compliance with financial covenants permits such borrowings. Our foreign subsidiaries held $36.5 million of cash and cash equivalents available for operating purposes, which is considered to be indefinitely invested in those jurisdictions.
Current wording
Our primary sources of liquidity and capital resources are cash and cash equivalents on hand, borrowing capacity under our 2025 Credit Facilities and cash flows from operations. As of September 30, 2026, our total liquidity was $267.2 million, consisting of $63.2 million of cash and cash equivalents available for operating purposes and $204.0 million available for additional borrowings under the 2025 Revolving Credit Facility, to the extent our compliance with financial covenants permits such borrowings. Our foreign subsidiaries held $32.7 million of cash and cash equivalents available for operating purposes, which is considered to be indefinitely invested in those jurisdictions.
Previous wording
On July 1, 2025, we entered into the 2025 Credit Agreement that provides for (i) the 2025 Revolving Credit Facility, a term loan facility, a swingline facility and a letter of credit facility, in an initial aggregate amount of up to $600.0 million and (ii) an incremental facilities limit in an aggregate amount not to exceed $150.0 million. We had outstanding principal indebtedness on the term loan facility of $332.5 million and $54.0 million outstanding borrowings under the 2025 Revolving Credit Facility as of June 30, 2026. Our outstanding letters of credit totaling $5.9 million decreased borrowing availability to $190.1 million under the 2025 Revolving Credit Facility as of June 30, 2026.
Current wording
On July 1, 2025, we entered into the 2025 Credit Agreement that provides for (i) the 2025 Revolving Credit Facility, a term loan facility, a swingline facility and a letter of credit facility, in an initial aggregate amount of up to $600.0 million and (ii) an incremental facilities limit in an aggregate amount not to exceed $150.0 million. We had outstanding principal indebtedness on the term loan facility of $328.1 million and $40.0 million outstanding borrowings under the 2025 Revolving Credit Facility as of September 30, 2026. Our outstanding letters of credit totaling $6.0 million decreased borrowing availability to $204.0 million under the 2025 Revolving Credit Facility as of September 30, 2026.
Previous wording
Certain of our international subsidiaries in Australia, Brazil, Canada, South Africa and the United Kingdom each have separate credit facilities with local financial institutions primarily to finance short-term working capital needs, as well as to cover foreign exchange contracts, performance letters of credit, advance payment and retention guarantees. The outstanding borrowings under such credit facilities of the international subsidiaries are recorded in "Short-term debt" in our Consolidated Balance Sheets.
Current wording
Certain of our international subsidiaries in Australia, Brazil, Canada, South Africa and the United Kingdom each have separate credit facilities with local financial institutions primarily to finance short-term working capital needs, as well as to cover foreign exchange contracts, performance letters of credit, advance payment and retention guarantees. The outstanding borrowings under such credit facilities of the international subsidiaries are recorded in "Short-term debt" in our Consolidated Balance Sheets. Each of these credit facilities is generally guaranteed by Astec Industries, Inc. and/or secured with certain assets of the local subsidiary.
Previous wording
We regularly enter into agreements, primarily to purchase inventory, in the ordinary course of business. As of June 30, 2026, open purchase obligations totaled $196.0 million, of which $179.4 million are expected to be fulfilled within the remainder of 2026.
Current wording
We regularly enter into agreements, primarily to purchase inventory, in the ordinary course of business. As of September 30, 2026, open purchase obligations totaled $215.4 million, of which $172.8 million are expected to be fulfilled within the remainder of 2026.
Previous wording
We estimate that our capital expenditures will be between $35.0 million and $45.0 million for the year ending December 31, 2026, which may be impacted by general economic, financial or operational changes and competitive, legislative and regulatory factors, among other considerations.
Current wording
We estimate that our capital expenditures will be between $30.0 million and $40.0 million for the year ending December 31, 2026, which may be impacted by general economic, financial or operational changes and competitive, legislative and regulatory factors, among other considerations.
Previous wording
The following table summarizes cash flows during the six months ended June 30, 2026 and 2025, respectively:
Current wording
The following table summarizes cash flows during the nine months ended September 30, 2026 and 2025, respectively:
Previous wording
Our operating activities provided net cash of $52.8 million for the six months ended June 30, 2026 as compared to $33.4 million for the six months ended June 30, 2025. This increase is primarily due to net cash provided by our operating assets and liabilities of $22.6 million partially offset by decreased cash inflows from net income reduced by non-cash charges of $3.6 million. The net cash provided by our operating assets and liabilities was mainly driven by fluctuations in inventories of $37.9 million and prepaid and refundable income taxes of $5.2 million. The net cash provided was partially offset by fluctuations in (i) customer deposits of $13.2 million, (ii) trade and other receivables of $7.9 million and (iii) higher employee-related payments of $6.4 million.
Current wording
Our operating activities provided net cash of $70.2 million for the nine months ended September 30, 2026 as compared to $25.3 million for the nine months ended September 30, 2025. This increase is primarily due to lower net cash used by our operating assets and liabilities of $54.2 million partially offset by decreased cash inflows from net income adjusted for non-cash items of $9.9 million. The lower net cash used by our operating assets and liabilities was mainly driven by fluctuations in (i) customer deposits of $25.8 million, (ii) accounts payable of $20.6 million and (iii) inventories of $11.5 million. The lower net cash used was partially offset by fluctuations in higher employee-related payments of $18.7 million.
Previous wording
Net cash used in investing activities was $83.7 million during the six months ended June 30, 2026 as compared to $7.7 million during the six months ended June 30, 2025, primarily due to the CWMF acquisition and increased capital expenditures of $7.7 million.
Current wording
Net cash used in investing activities was $90.4 million during the nine months ended September 30, 2026 as compared to $260.4 million during the nine months ended September 30, 2025, primarily due to our lower cash used for acquisitions partially offset by increased capital expenditures of $10.2 million.
Previous wording
Net cash provided by financing activities was $36.2 million during the six months ended June 30, 2026 as compared to a net use of $29.2 million during the six months ended June 30, 2025, primarily due to higher net debt borrowings in 2026 as compared to net repayments in 2025.
Current wording
Net cash provided by financing activities was $13.1 million during the nine months ended September 30, 2026 as compared to $212.4 million during the nine months ended September 30, 2025, primarily due to lower net debt borrowings in 2026.
Previous wording
We paid quarterly dividends of $0.13 per common share to shareholders in the second quarter of both 2026 and 2025.
Current wording
We paid quarterly dividends of $0.13 per common share to shareholders in the third quarter of both 2026 and 2025.
Previous wording
Our total current assets decreased to $816.4 million as of June 30, 2026 from $816.6 million as of December 31, 2025, a decrease of $0.2 million. Decreases in inventories and prepaid and other assets of $5.7 million and $1.8 million, respectively, were offset by increases in cash, cash equivalents and restricted cash and prepaid and refundable income taxes of $4.8 million and $2.4 million, respectively.
Current wording
Our total current assets increased to $833.4 million as of September 30, 2026 from $816.6 million as of December 31, 2025, an increase of $16.8 million, or 2.1%, due to increases in (i) inventories of $18.4 million, (ii) prepaid and refundable income taxes of $6.1 million and (iii) trade receivables, contract assets and other receivables of $1.8 million. These increases were offset by decreased cash, cash equivalents and restricted cash of $7.6 million.
Previous wording
Our total current liabilities decreased to $324.4 million as of June 30, 2026 from $328.0 million as of December 31, 2025, a decrease of $3.6 million, or 1.1%, due primarily to decreases in (i) customer deposits of $10.5 million, (ii) accrued employee-related liabilities of $6.4 million and (iii) accrued product warranties of $3.2 million. These decreases were partially offset by increases in accounts payable and other current liabilities of $14.1 million and $2.7 million, respectively.
Current wording
Our total current liabilities increased to $360.4 million as of September 30, 2026 from $328.0 million as of December 31, 2025, an increase of $32.4 million, or 9.9%, primarily due to increases in accounts payable and customer deposits of $19.8 million and $17.4 million, respectively. These increases were partially offset by decreased accrued employee related liabilities of $8.7 million.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Net cash provided by financing activities
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Each of these credit facilities is generally guaranteed by Astec Industries, Inc. and/or secured with certain assets of the local subsidiary.