Astec Industries, Inc. (ASTE) Bundle
A Brief History of Astec Industries, Inc.
Astec Industries, Inc. has a rich history that dates back to its founding in 1972. The company has evolved significantly over the decades, expanding its product offerings and market reach. As of 2024, Astec continues to be a prominent player in the manufacturing of equipment for the infrastructure and materials solutions sectors.
Financial Performance
For the third quarter of 2024, Astec reported net sales of $291.4 million, a decrease of 3.9% compared to $303.1 million in the same period in 2023. The gross profit for this quarter was $66.8 million, reflecting a 4.0% decline from $69.6 million in the prior year. The company recorded a loss from operations of $7.2 million, compared to a loss of $5.2 million in Q3 2023.
| Period | Net Sales (in millions) | Gross Profit (in millions) | Loss from Operations (in millions) |
|---|---|---|---|
| Q3 2024 | $291.4 | $66.8 | $(7.2) |
| Q3 2023 | $303.1 | $69.6 | $(5.2) |
Segment Performance
The company's two primary segments, Infrastructure Solutions and Materials Solutions, showed contrasting performance in Q3 2024. The Infrastructure Solutions segment posted sales of $165.0 million, an increase of 1.1% from $163.2 million in Q3 2023. Conversely, the Materials Solutions segment experienced a significant decline, with sales dropping to $126.4 million, down 9.6% from $139.9 million in the previous year.
| Segment | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) | % Change |
|---|---|---|---|
| Infrastructure Solutions | $165.0 | $163.2 | 1.1% |
| Materials Solutions | $126.4 | $139.9 | (9.6%) |
Net Income and Losses
Astec reported a net loss of $6.2 million for Q3 2024, a slight improvement compared to a net loss of $6.5 million in Q3 2023. For the first nine months of 2024, the total net loss reached $16.9 million, a significant decrease from a net income of $18.8 million in the same period of 2023.
| Period | Net Income/Loss (in millions) |
|---|---|
| Q3 2024 | $(6.2) |
| Q3 2023 | $(6.5) |
| First 9 Months 2024 | $(16.9) |
| First 9 Months 2023 | $18.8 |
Backlog and Future Outlook
As of September 30, 2024, Astec's backlog stood at $475.8 million, a decrease of 22.6% from $614.7 million a year earlier. This decline reflects changes in customer demand and macroeconomic factors affecting order patterns.
Astec anticipates that ongoing strategic initiatives, including a multi-year ERP implementation aimed at enhancing operational efficiencies, will position the company for improved performance in the coming years. The total implementation costs for this ERP initiative are projected to range between $180 million and $200 million, with annual costs expected to peak in 2024 at $40 million to $45 million.
A Who Owns Astec Industries, Inc. (ASTE)
Ownership Structure
As of 2024, Astec Industries, Inc. (ASTE) has a diverse ownership structure, comprising both institutional and individual shareholders. The company has approximately 22.8 million shares outstanding.
Major Shareholders
| Shareholder | Ownership Percentage | Shares Owned | Type of Ownership |
|---|---|---|---|
| BlackRock, Inc. | 10.5% | 2,400,000 | Institutional |
| Vanguard Group, Inc. | 8.2% | 1,870,000 | Institutional |
| Dimensional Fund Advisors LP | 7.8% | 1,780,000 | Institutional |
| Wellington Management Group LLP | 6.1% | 1,400,000 | Institutional |
| Individual Insiders (combined) | 4.5% | 1,025,000 | Individual |
Institutional Ownership
Institutional investors hold a significant portion of Astec Industries, indicating confidence in the company's future performance. The top five institutional investors account for over 38% of total shares.
Recent Stock Performance
As of September 30, 2024, Astec Industries reported a share price of $22.50, reflecting a year-to-date decrease of approximately 15%. The company has faced various market challenges, including fluctuating demand in its sectors.
Market Capitalization
Astec Industries, Inc. has a market capitalization of approximately $513 million, based on the current share price and outstanding shares.
Shareholder Composition
| Type of Shareholder | Percentage of Total Shares |
|---|---|
| Institutional Investors | 38.6% |
| Retail Investors | 24.2% |
| Insiders | 4.5% |
| Other | 32.7% |
Dividends
Astec Industries has maintained a consistent dividend payout of $0.13 per share, with total dividends paid in 2024 amounting to approximately $3.0 million.
Recent Changes in Ownership
Recent filings indicate that Dimensional Fund Advisors LP increased its stake by approximately 1% during the last quarter, while Vanguard Group, Inc. reduced its holdings slightly.
Conclusion of Ownership Analysis
Astec Industries' ownership landscape is characterized by a strong institutional presence, indicating robust investor confidence. The company continues to attract interest from both institutional and retail investors, reflecting its strategic positioning within the industry.
Astec Industries, Inc. (ASTE) Mission Statement
Astec Industries, Inc. is dedicated to providing innovative solutions for the infrastructure and materials industries with a commitment to sustainability and customer satisfaction. The company aims to enhance the quality of life in communities through its products and services while maintaining a focus on operational excellence and environmental stewardship.
Financial Overview
As of the third quarter of 2024, Astec Industries reported net sales of $291.4 million, a decrease of 3.9% from $303.1 million in the same quarter of 2023. The decline in sales was attributed to unfavorable volume and mix, partially offset by favorable pricing.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $291.4 million | $303.1 million | -3.9% |
| Gross Profit | $66.8 million | $69.6 million | -4.0% |
| Net Loss | $(6.2) million | $(6.5) million | -6.1% |
| Diluted Loss per Share | $(0.27) | $(0.29) | -6.9% |
| Backlog | $475.8 million | $614.7 million | -22.6% |
Segment Performance
The performance of Astec Industries is segmented into Infrastructure Solutions and Materials Solutions. For the third quarter of 2024, the Infrastructure Solutions segment reported sales of $165.0 million, while the Materials Solutions segment reported $126.4 million.
| Segment Sales | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Infrastructure Solutions | $165.0 million | $163.2 million | +1.1% |
| Materials Solutions | $126.4 million | $139.9 million | -9.6% |
Market Conditions
Astec Industries operates in a competitive market influenced by macroeconomic factors, including inflation and interest rates. The company’s backlog as of September 30, 2024, was $475.8 million, down from $614.7 million a year prior, indicating a shift in customer ordering patterns and demand.
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, Astec Industries reported net cash used in operating activities of $(13.6) million, compared to $(18.8) million in the same period of 2023. The company anticipates capital expenditures between $20.0 million and $25.0 million for the year ending December 31, 2024.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(13.6) million | $(18.8) million |
| Net Cash Used in Investing Activities | $(14.0) million | $(3.9) million |
| Net Cash Provided by Financing Activities | $19.5 million | $30.8 million | Cash, Cash Equivalents and Restricted Cash, End of Period | $55.3 million | $73.8 million |
Conclusion on Mission Alignment
The mission statement of Astec Industries emphasizes sustainability and customer satisfaction. The company’s financial performance and market strategies reflect this mission, focusing on innovative solutions while navigating current economic challenges.
How Astec Industries, Inc. (ASTE) Works
Business Overview
Astec Industries, Inc. operates in the construction and infrastructure sectors, primarily focusing on manufacturing equipment for the production of asphalt, concrete, and aggregate. The company has two main segments: Infrastructure Solutions and Materials Solutions.
Financial Performance
For the third quarter of 2024, Astec reported net sales of $291.4 million, a decrease from $303.1 million in the same quarter of 2023. The gross profit for this period was $66.8 million, down from $69.6 million year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $291.4 million | $303.1 million |
| Gross Profit | $66.8 million | $69.6 million |
| Loss from Operations | $(7.2) million | $(5.2) million |
| Net Loss | $(6.2) million | $(6.5) million |
| Diluted Loss Per Share | $(0.27) | $(0.29) |
Sales Breakdown
In the third quarter of 2024, domestic sales accounted for $211.2 million (72.5% of consolidated net sales), while international sales were $80.2 million (27.5%).
| Sales Breakdown | Q3 2024 | Q3 2023 |
|---|---|---|
| Domestic Sales | $211.2 million | $229.6 million |
| International Sales | $80.2 million | $73.5 million |
Segment Performance
The Infrastructure Solutions segment achieved sales of $165.0 million, marking a slight increase from $163.2 million in Q3 2023. Meanwhile, the Materials Solutions segment saw a decline to $126.4 million from $139.9 million in the prior year.
| Segment Sales | Q3 2024 | Q3 2023 |
|---|---|---|
| Infrastructure Solutions | $165.0 million | $163.2 million |
| Materials Solutions | $126.4 million | $139.9 million |
Backlog and Orders
As of September 30, 2024, the backlog of orders was reported at $475.9 million, a decrease of 22.6% from $614.7 million in the previous year.
| Backlog Overview | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Backlog | $475.9 million | $614.7 million | Domestic Backlog | $378.0 million | $511.0 million |
| International Backlog | $97.9 million | $103.7 million |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, net cash used in operating activities was $(13.6) million, compared to $(18.8) million in the same period of 2023. Cash, cash equivalents, and restricted cash at the end of the period totaled $55.3 million.
| Cash Flow Summary | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(13.6) million | $(18.8) million |
| Net Cash Used in Investing Activities | $(14.0) million | $(3.9) million |
| Net Cash Provided by Financing Activities | $19.5 million | $30.8 million |
| Cash, Cash Equivalents and Restricted Cash (End of Period) | $55.3 million | $73.8 million |
Debt and Financing
As of September 30, 2024, Astec had outstanding borrowings of $99.0 million under its credit facilities. The total equity stood at $631.4 million, with total liabilities of $435.7 million.
| Debt Overview | September 30, 2024 |
|---|---|
| Outstanding Borrowings | $99.0 million |
| Total Equity | $631.4 million |
| Total Liabilities | $435.7 million |
Operational Challenges and Strategic Initiatives
Astec is currently implementing a multi-year strategic transformation involving a standardized ERP system across its operations, with total estimated costs between $180 million and $200 million, expected to complete by 2027.
How Astec Industries, Inc. (ASTE) Makes Money
Revenue Streams
Astec Industries, Inc. generates revenue through various segments, primarily categorized as Infrastructure Solutions and Materials Solutions. For the first nine months of 2024, the company reported total net sales of $946.1 million, a decline from $1,001.0 million in the same period of 2023, representing a decrease of 5.5%.
| Segment | Net Sales (2024) | Net Sales (2023) | % Change |
|---|---|---|---|
| Infrastructure Solutions | $588.6 million | $578.1 million | 1.8% |
| Materials Solutions | $357.5 million | $422.9 million | (15.5%) |
Domestic and International Sales
In terms of geographic distribution, domestic sales accounted for 76.8% of total sales in the first nine months of 2024, amounting to $726.5 million, down from $797.3 million in the same period of 2023. International sales reached $219.6 million, up from $203.7 million, reflecting a growth of 7.8%.
| Sales Type | 2024 (9 Months) | 2023 (9 Months) | % Change |
|---|---|---|---|
| Domestic Sales | $726.5 million | $797.3 million | (8.9%) |
| International Sales | $219.6 million | $203.7 million | 7.8% |
Cost of Sales and Gross Profit
The cost of sales for the first nine months of 2024 was $721.1 million, yielding a gross profit of $225.0 million, or 23.8% of net sales. This reflects a decrease from the gross profit of $241.7 million in the same period of 2023, which was 24.1% of net sales.
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Cost of Sales | $721.1 million | $759.3 million |
| Gross Profit | $225.0 million | $241.7 million |
Operating Expenses
Selling, general, and administrative expenses (SG&A) for the first nine months of 2024 were $208.1 million, slightly up from $206.7 million in 2023. The SG&A expenses represented 22.0% of net sales in 2024.
| Expense Type | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| SG&A Expenses | $208.1 million | $206.7 million |
Net Income or Loss
Astec Industries reported a net loss of $16.9 million for the first nine months of 2024, compared to a net income of $18.8 million for the same period in 2023. This shift reflects the challenging market conditions and operational challenges faced by the company.
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income (Loss) | $(16.9) million | $18.8 million |
Backlog and Future Outlook
As of September 30, 2024, Astec Industries had a backlog of $475.9 million, down 22.6% from $614.7 million a year earlier. The domestic backlog decreased by 26.0% to $351.1 million, while the international backlog decreased by 5.7% to $124.7 million. This decline in backlog indicates a potential slowdown in future revenue generation.
| Backlog Type | 2024 | 2023 | % Change |
|---|---|---|---|
| Total Backlog | $475.9 million | $614.7 million | (22.6%) |
Capital Expenditures and Cash Flow
Astec Industries anticipates capital expenditures of between $20.0 million and $25.0 million for the year 2024. Cash flows from operating activities showed a net outflow of $13.6 million for the first nine months of 2024, compared to an outflow of $18.8 million in the same period of 2023.
| Cash Flow Type | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash Used in Operating Activities | $(13.6) million | $(18.8) million |
| Capital Expenditures | $20.0 - $25.0 million | N/A |
Conclusion on Financial Performance
Throughout 2024, Astec Industries, Inc. has faced challenges in both domestic and international markets, reflected in declining sales and net income. The company's strategic initiatives, including ERP system implementation, aim to improve operational efficiency and drive future profitability.
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Updated on 16 Nov 2024
Resources:
- Astec Industries, Inc. (ASTE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Astec Industries, Inc. (ASTE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Astec Industries, Inc. (ASTE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.