ASTEHIGH SIGNALOPPORTUNITY10-K

ASTE executed significant acquisitions in fiscal 2025-2026 that dramatically improved profitability metrics while substantially expanding the business through debt financing.

The company completed two strategic acquisitions (TerraSource and CWMF) that appear to be generating strong returns, with net income surging over 800% and operating income nearly tripling. However, the 69% increase in total liabilities suggests substantial debt was used to fund this growth, which investors should monitor for leverage risk and integration execution.

Comparing 2026-02-25 vs 2025-02-26View on EDGAR →
FINANCIAL ANALYSIS

ASTE's financial profile transformed dramatically through acquisition-driven growth, with net income exploding from $4.3M to $38.8M and operating cash flow nearly tripling to $61.4M, indicating strong operational improvements. However, total liabilities surged 69% to $686M while cash declined 21%, signaling significant debt financing was used to fund the acquisitions that expanded total assets to $1.4B. The overall picture shows successful M&A execution generating substantial profitability gains, but investors should watch debt service capacity given the quadrupling of interest expense to $8.9M.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+802.3%
$4.3M→$38.8M

Net income grew 802.3% — bottom-line growth signals improving overall business health.

Interest Expense
P&L
+256%
$2.5M→$8.9M

Interest expense surged 256% — significant debt increase or rising rates materially impacting earnings.

Operating Income
P&L
+184.1%
$23.2M→$65.9M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Operating Cash Flow
Cash Flow
+167%
$23.0M→$61.4M

Operating cash flow surged 167% — exceptional cash generation, highest quality earnings signal.

Capital Expenditure
Cash Flow
+98.5%
$20.5M→$40.7M

Capital expenditure jumped 98.5% — major investment cycle underway; assess returns on deployment.

Total Liabilities
Balance Sheet
+68.9%
$406.0M→$685.6M

Liabilities grew 68.9% — significant increase in debt or obligations, assess impact on financial flexibility.

Total Assets
Balance Sheet
+31%
$1.0B→$1.4B

Asset base grew 31% — expansion through organic growth, acquisitions, or capital deployment.

Cash & Equivalents
Balance Sheet
-20.7%
$90.8M→$72.0M

Cash decreased 20.7% — monitor burn rate and upcoming capital needs.

Current Liabilities
Balance Sheet
+20.7%
$271.7M→$328.0M

Current liabilities rose 20.7% — increased short-term obligations, watch current ratio.

Gross Profit
P&L
+14.1%
$327.9M→$374.2M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

LANGUAGE CHANGES
NEW — 2026-02-25
PRIOR — 2025-02-26
ADDED
As of February 20, 2026, there were 22,899,799 shares of Common Stock outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 7A.
In furtherance of our Vision and strategic pillars, we completed the acquisition of TerraSource Holdings, LLC ( TerraSource ), a market-leading manufacturer of material processing equipment and related aftermarket parts serving complementary crushing, screening and separation applications on July 1, 2025 and the acquisition of CWMF, LLC, a manufacturer of portable and stationary asphalt plant equipment and parts on January 1, 2026.
and Canadian locations and converted the operations of three manufacturing sites along with Corporate.
The Company's presentation of Segment Operating Adjusted EBITDA is not necessarily indicative of the results of operations that would have occurred had each reportable segment been an independent, stand-alone entity during the periods presented.
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REMOVED
As of February 21, 2025, there were 22,803,976 shares of Common Stock outstanding.
Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 7A.
Form 10-K Summary 81 SIGNATURES 82 Table of Content s GENERAL Unless otherwise indicated by the context, all references in this Annual Report on Form 10-K to "we," "us," "our," or the "Company" refer to Astec Industries, Inc.
Developing the Astec Digital Ecosystem to enable customers to leverage our entire product portfolio and associated data.
During 2024, we modified the pace of deployment of future site conversions to improve efficiencies and reduce business disruptions at our manufacturing sites, which will reduce the scope of the program to exclude sites outside North America.
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