Astec Industries, Inc. ASTE reported fourth-quarter 2023 adjusted earnings per share of 90 cents, beating the Zacks Consensus Estimate of earnings of 62 cents. The company reported adjusted earnings of 34 cents per share in the prior-year quarter.

Including one-time items, the company reported earnings of 65 cents in the quarter under review against a loss of 4 cents per share in the year-ago quarter.

Revenues & Backlog

Astec’s revenues decreased 3.6% year over year to $337 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $353 million. Domestic sales were up 1.5% year over year, while international sales moved down 24.7%.

Astec reported a backlog of $570 million as of Dec 31, 2023 marking a year-over-year decline of 37.6%. Domestic backlog fell 41.8% year over year to $450 million, while international backlog increased 14.1% to $120 million.

Astec Industries, Inc. Price, Consensus and EPS Surprise

 

Astec Industries, Inc. price-consensus-eps-surprise-chart | Astec Industries, Inc. Quote

Operating Performance

The cost of sales fell 11% year over year to $248 million in the fourth quarter. The gross profit was $89 million compared with the year-ago quarter’s $71 million. The gross margin was 26.4% compared with the year-ago quarter’s 20.3%.

Selling, general, administrative and engineering (SG&A) increased 10.3% year over year to around $70 million. The company reported an adjusted operating income of $26.3 million, an increase from $14.7 million in the prior year. The adjusted operating margin was 7.8% compared with 4.2% in the prior-year quarter.

Adjusted EBITDA was $33 million in the reported quarter, up from the year-ago quarter’s $22 million. The adjusted EBITDA margin was 9.7% compared with 6.3% in the previous year.

Segment Performances

Revenues in the Infrastructure Solutions segment were up 0.7% to $240 million from the year-ago quarter. We predicted the segment’s sales to be $237 million. The segment’s adjusted EBITDA was $35.3 million, up 52.8% from the prior-year quarter.

The Materials Solutions segment’s total revenues were $95 million in the quarter under review, reflecting a year-over-year fall of 13.1% due to softer demand. We expected sales of $115 million for the segment. The segment’s adjusted EBITDA was $8.9 million, down 8.2% year over year.

Financial Position

Astec ended 2023 with cash, cash equivalents and restricted cash of $63 million compared with $66 million at 2022 end. At the end of 2023, the company’s long-term debt was $72 million compared with $78 million at the end of 2022.