Astec Industries Q3 sales miss estimates on macroeconomic uncertainty

Overview

• U.S. roadbuilding equipment maker's Q3 sales rose 0.7% yr/yr, missing analyst expectations

• Company says macro uncertainty and inflation weighed on orders and margins

Outlook

• Astec Industries lowers 2026 Adjusted EBITDA guidance to $140 mln-$150 mln from $160 mln-$175 mln

• Company says ongoing macroeconomic uncertainty and inflationary pressures are expected to impact results

• Astec sees underlying demand rebounding, as reflected in backlog growth

Result Drivers

• MACRO UNCERTAINTY - Co said ongoing macroeconomic uncertainty caused a pause in orders earlier in the year by select asphalt plant customers, impacting Q3 sales and margins

• INFLATIONARY PRESSURES - Co attributed lower margins and profitability to inflation on materials, labor and overhead

• SEGMENT PERFORMANCE - Infrastructure Solutions sales fell due to unfavorable volume and mix, while Materials Solutions sales rose on favorable pricing despite higher costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Astec Industries, Inc. is $65.50, about 66.7% above its November 4 closing price of $39.30

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 3 - Knife River Q3 revenue misses estimates on contracting services headwins

• Nov 4 - Emerson Electric Q4 sales beat estimates on broad-based demand

• Nov 4 - Eagle Materials Q2 revenue beats estimates, helped by public infrastructure demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)