Astec Industries, Inc. reported its financial results for the second quarter ended June 30, 2025, with net sales decreasing 4.4% year-over-year to $330.30 million. Despite the sales decline, the company demonstrated significant profitability improvements, with gross profit rising 8.6% to $88.30 million and gross margin expanding by 330 basis points to 26.7%.
Operating income saw a substantial 300% increase, reaching $21.40 million, while net income attributable to controlling interest surged 219.3% to $16.70 million, resulting in diluted earnings per share of $0.72. Adjusted EBITDA for the quarter was $33.7 million, up 22.1% year-over-year, with the adjusted EBITDA margin improving 220 basis points to 10.2%. The company also generated $9 million in free cash flow.
Astec updated its full-year 2025 adjusted EBITDA guidance, raising the lower end of its core business guidance from $105 million to $110 million. Including TerraSource's expected second-half contribution of $13 million to $17 million, the consolidated adjusted EBITDA guidance for the full year now ranges from $123 million to $142 million. However, the company's backlog decreased to $380.8 million, down 28.3% year-over-year.
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