Astec Industries, Inc. (NASDAQ: ASTE) has reported its financial results for the first quarter ended March 31, 2025. The company posted net sales of $329.4 million, representing a 6.5% increase from the corresponding prior year first quarter. Net income attributable to controlling interest surged to $14.3 million, a substantial 320.6% increase compared to the same period in the prior year. Adjusted net income also showed a significant improvement, reaching $20.3 million.
In terms of earnings per share (EPS), the company reported diluted EPS of $0.62, marking a remarkable 313.3% increase from the first quarter of 2024. Adjusted EPS also experienced a substantial surge, reaching $0.88, a 158.8% increase compared to the corresponding prior year first quarter.
Astec's operating cash flow for the quarter was reported at $20.5 million, with free cash flow standing at $16.6 million.
One notable development during the quarter was Astec's entry into a definitive purchase agreement to acquire TerraSource Holdings, LLC ("TerraSource") for $245.0 million. According to the company, TerraSource is a manufacturer and distributor of similar equipment serving adjacent markets in materials processing equipment and related aftermarket parts. It is expected that this acquisition will add significant growth and value creation opportunities to Astec.
The company's total liquidity was reported at $238.9 million, consisting of $90.1 million of cash and cash equivalents available for operating purposes and $148.8 million available for additional borrowings under its revolving credit facility.
The acquisition of TerraSource is expected to close early in the third quarter of 2025, subject to requisite regulatory approvals and satisfaction of other customary closing conditions.
Astec will conduct a conference call and live webcast on April 29, 2025, at 8:30 a.m. Eastern Time, to review its first-quarter financial results as well as current business conditions and the proposed acquisition of TerraSource.
Astec Industries, Inc., headquartered in Chattanooga, Tennessee, is a manufacturer of specialized equipment for asphalt road building, aggregate processing, and concrete production. The company's manufacturing operations are divided into two primary business segments: infrastructure solutions and materials solutions.
Astec's strong financial performance and the impending acquisition of TerraSource Holdings, LLC are indicative of the company's strategic growth initiatives and its commitment to delivering value to its stakeholders. Today the company's shares have moved 3.7% to a price of $36.56. If you want to know more, read the company's complete 8-K report here.
